Title
Implementing rules for Ease of Doing Business Act
Law
Irr Republic Act No. 11032 (csc, Arta, Dti Joint Memorandum Circular No. 2019-001)
Decision Date
Jul 17, 2019
The Implementing Rules and Regulations (IRR) of the Ease of Doing Business and Efficient Government Service Delivery Act of 2018 provide guidelines for consistent and proper implementation, including a separability clause to ensure enforceability and a repealing clause to invalidate conflicting laws or regulations.

Coverage and Scope

  • Applies to all government offices and agencies including LGUs and GOCCs.
  • Covers business-related and non-business transactions involving permits, licenses, clearances, authorizations, and concessions.
  • Initial list of covered permits and licenses to be issued and regularly updated.
  • Respects international laws and agreements binding on the Philippines.

Reengineering of Systems and Procedures

  • Agencies shall conduct compliance cost analysis, time and motion studies, and regulatory impact assessments.
  • Aim to reduce red tape, processing time, and transaction costs.
  • Streamlining efforts cover Government-to-Citizen, Government-to-Business, and Government-to-Government transactions.
  • Agencies must limit signatories to three, simplify forms, automate processes, and consider establishing one-stop shops.
  • Whole-of-Government Approach mandated for service integration.
  • The Authority shall develop a Regulatory Management System and provide training.
  • Regulatory Impact Assessments (RIA) are required for major regulations.
  • Agencies must notify the Authority about formulation or repeal of regulations.
  • Review and repeal of redundant or outdated regulations required within six months.

Citizen’s Charter

  • An official document setting forth uniform service standards for government services.
  • Includes checklist of requirements, procedure steps, responsible persons, processing time, fees, and complaint procedures.
  • Must be publicly accessible through readable materials and websites.
  • Agencies must update Citizen’s Charters yearly.
  • Non-compliance with prescribed processing times triggers administrative and criminal liabilities.
  • Authority issues template and monitors compliance.

Zero-Contact Policy

  • Limits direct interaction between applicants and government employees to only necessary assessments.
  • Encourages electronic submission and communication for transparency.
  • Exceptions include payments and complex transactions requiring inspections or meetings.
  • DICT must develop an online business registration system within one year.

Accountability of Heads of Offices and Agencies

  • Heads are primarily responsible and accountable for implementing the law.
  • They must enforce zero backlog programs and may be subject to administrative or legal action for non-compliance.

Accessing Government Services

  • Agencies must accept applications with complete requirements and immediately inform applicants of deficiencies.
  • Applications processed within prescribed timelines: 3 days for simple, 7 days for complex, 20 days for highly technical or hazardous activities.
  • One time extension allowed with written notice to applicant.
  • Multi-stage processing permitted for highly technical applications, with an aggregate maximum of 40 working days.
  • Local legislative approvals have a 45 working-day period extendable by 20 days.
  • No applications are returned without an appropriate decision.
  • Signed denials must be accompanied by a written explanation.
  • Signatories limited to three; electronic signatures accepted under conditions.
  • Agencies must develop electronic versions of official documents.
  • Agencies to adopt working schedules that allow serving all clients even before closing hours.
  • Employees must wear identification cards; public assistance desks must be established.

Automatic Approval or Extension

  • Applications not acted upon within prescribed time are deemed approved or extended if requirements and fees are complete.
  • Automatic approval applies only if application is timely and complete; not applicable if license already expired.
  • The Authority can issue orders confirming automatic approval upon complaints.

Streamlined Local Business Permit Procedures

  • Joint Memorandum Circulars to be issued for unified procedures.
  • Single or unified business application form to be used for all LGUs, available online and offline.
  • Business One Stop Shops (BOSS) established in LGUs, preferably within Negosyo Centers.
  • Mandate for electronic BOSS within 3 years.
  • Business permits valid for one year; LGUs decide issuance timing through local ordinance.
  • Barangay clearances collected by LGUs with mandatory remittance to Barangays.
  • BFP fees assessed and collected in coordination with LGUs; BFP prohibited from recommending brands of fire safety equipment.
  • Establishment of co-location of BFP offices with BPLOs.

Interconnectivity Infrastructure

  • Permitting process for installation and operation of telecom and broadcast facilities limited to 7 working days, extendable once.
  • Applications deemed approved if not acted upon within timeframe.
  • Authority to review and recommend repeal of redundant or unnecessary regulations regarding telecom infrastructure.
  • DICT tasked with issuing technical standards.

Anti-Red Tape Units, Authority, and Council

  • CSC maintains anti-red tape units tasked with service delivery improvement.
  • Authority tasked to implement, oversee, monitor compliance, investigate violations, assist complainants, review regulations, provide training, and issue advisories.
  • Authority organizational structure described; headed by Director General with three Deputy Directors General.
  • Ease of Doing Business and Anti-Red Tape Advisory Council comprised of key government officials and private sector representatives.
  • Council formulates policy, recommends improvements, and advises the Authority.

Report Card Survey

  • All government agencies subject to user surveys to assess compliance with the law and service effectiveness.
  • Surveys measure hidden costs including unofficial fees or bribes.
  • Survey results used for awards and incorporated in agency reports.

Violations, Penalties, and Immunity

  • Violations include refusal to accept complete applications, imposing additional requirements or costs, failure to issue notices or official receipts, failure to comply within prescribed times, and fixing.
  • First offense: administrative liability with up to six months suspension.
  • Second offense: dismissal, perpetual disqualification, forfeiture of retirement benefits, imprisonment (1 to 6 years), and fines (Php500,000 to Php2,000,000).
  • Fixing incurs penalty of second offense.
  • Administrative liability does not preclude other civil or criminal charges.
  • Immunity may be granted to accused who testifies with court approval under specified conditions.

Commencement of Actions, Evaluation, and Investigation

  • Authority may initiate investigations motu proprio or upon complaints received by any means.
  • Complaints categorized as initial or formal; formal complaints must be sworn written statements with evidence.
  • Anonymity allowed if complaint is sufficiently detailed.
  • Valid complaints lead to investigation; invalid complaints referred to proper office.
  • Investigation procedures include document submission, interviews, ex parte evaluation, or meetings.
  • Final complaints issued upon prima facie findings.
  • Authority may assist in filing charges and recommend preventive suspension.

Transitory Provisions

  • DTI-Competitiveness Bureau serves as temporary Authority secretariat.
  • Authority's organizational structure and staffing to be determined in consultation with CSC, DTI, and DBM.
  • Regulatory management programs and anti-red tape initiatives coordinated by the Authority.
  • Information dissemination campaigns to educate agencies and public.

Final Provisions

  • Authority may issue clarifying guidelines.
  • Invalid provisions do not affect remaining portions.
  • Inconsistent laws and issuances repealed or amended.
  • IRR effective fifteen days after publication.

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