IRR of RA 11032 on Ease of Doing Business

Law Summary

Definitions and Key Terms

Defines key terms including "Act" as RA 11032, "Agency," "Applicant," "Business One Stop Shop," "Citizen's Charter," "Fixer," "License," "Local Government Units," "Permit," "Processing Time," and others essential for consistent interpretation.

Coverage and Scope

Applies to all government offices in the Executive Department, LGUs, GOCCs, and government instrumentalities.
Covers business-related and non-business transactions involving permits, licenses, clearances, authorizations, and frontline services.
Obligated to respect international laws and treaties.

Reengineering Government Services

Agencies must conduct cost analyses, time and motion studies, and reengineer processes to reduce red tape.
Designated units shall conduct regulatory impact assessments (RIA) for proposed regulations.
Adoption of Whole-of-Government Approach for horizontal integration and streamlining.
Regulatory Management System (RMS) to be developed and regulatory management manuals to be prepared.
Agencies required to submit listings and flowcharts of services and costs.

Citizen's Charter

Official document detailing step-by-step procedures, requirements, fees, timelines, and responsible personnel.
Agencies shall classify transactions into simple, complex, and highly technical with prescribed processing times.
Charter serves as basis for accountability and granting rewards.
Regular updates and client feedback mechanisms mandated.

Zero-Contact Policy

Limits government officials' interaction with applicants to prevent undue influence and corruption.
Exceptions: payment of fees and necessary interactions for complex or technical transactions.
Electronic submissions and communications strongly encouraged.
DICT to develop a web-based business registration system.

Accountability of Heads of Offices and Agencies

Heads are primarily responsible for implementing the Act and IRRs.
Liable for violations including failure to implement zero backlog programs.
Transactions presumed authorized by the highest office authority.

Accessing Government Services

Acceptance of complete applications mandatory; incomplete applications not processed.
Assigned receiving officers to issue unique tracking numbers and acknowledgment receipts.
Strict processing times: 3 days for simple, 7 for complex, 20 working days for highly technical or public safety transactions.
Extensions allowed only once with written notification.
Multi-stage processing allowed for highly technical applications.
Denial of applications must be explained in writing with grounds and supervisor approval.
Signatory limit of three per document to ensure streamlined approvals.
Electronic versions of licenses and permits encouraged.
Flexible working hours to attend to clients and public must be informed.

Automatic Approval and Extension

If agency fails to act within prescribed times and requirements are met, application is deemed approved automatically.
Automatic extension applies to renewals, not expired licenses.
The Authority can order automatic issuance upon complaint verification.

Streamlined Procedures for Local Business Permits

Joint Memorandum Circular (JMC) to implement streamlined procedures;
Use of a single or unified business application form electronically and on-site.
Establishment of a Business One Stop Shop (BOSS) in LGUs and Negosyo Centers for integrated processing.
Mandates automation of business permitting systems within 3 years.
Business permits valid one year; renewal options to be chosen by LGUs.
Barangay clearances integrated with city/municipality processing with proper remittance.
Clear rules on fire safety certificates issuance by BFP and penalties for BFP violations.

Interconnectivity and Infrastructure

Processing time for approvals related to telecommunications facilities limited to 7 working days.
Failure to act deemed approval.
Annual review of redundant licenses and fees with repeal or streamlining recommendations.
DICT to issue technical guidelines.

Anti-Red Tape Units and Authority

CSC maintains anti-red tape units to coordinate and investigate complaints.
Anti-Red Tape Authority (ARTA) created under the Office of the President with powers to oversee implementation, investigate complaints, and issue policy.
ARTA headed by a Director General with deputies.
The Ease of Doing Business and Anti-Red Tape Advisory Council formulated comprising government officials and private sector representatives.
Council develops policies and continuously reviews the country’s competitiveness.

Report Card Survey

Survey system to gather citizen feedback on agency compliance and performance.
Results used for monitoring, evaluation, and awarding exemplary service.

Violations and Penalties

Violations include refusal to accept complete applications, imposing unlisted requirements or fees, failure to notify disapprovals, delays without cause, refusal to issue receipts, and fixing.
Penalties range from six-month suspension for first offense to dismissal with criminal liability for second.
Fixing carries imprisonment and heavy fines.
Immunity for co-respondents who testify.

Complaints and Investigation Procedure

Authority empowered to initiate investigation motu proprio or upon complaint.
Complaints can be initial (informal) or formal (sworn, evidence-backed).
Formal complaints trigger investigation including document review, affidavits, and hearings.
Final complaint may lead to referrals for administrative or criminal action.

Transitory Provisions

DTI Competitiveness Bureau temporarily serves as ARTA secretariat.
Organizational structure to be determined by Director General in consultation.
Regulatory and anti-red tape initiatives coordinated and integrated by ARTA.
Nationwide campaign for awareness and education on the Act.

Final Provisions

ARTA may issue additional guidelines.
Separation clause for invalid provisions.
Repealing clause for inconsistent laws or issuances.
IRRs effectivity 15 days after publication and filing.

This comprehensive framework aims to promote transparency, reduce red tape, and improve government service delivery, easing the conduct of business and access to government services in the Philippines.