Anti-Red Tape Act and the Law on Ease of Doing Business in the Philippines

As promised, here is my discussion about the Law on Ease of Doing Business and the Anti-Red Tape Act.

You and I have experienced dealing with different government offices for a multitude of reasons — from business registration, processing of applications or permits, renewal of documents, or payment of taxes, loans, etc. I am sure majority of us, if asked, would have the same reaction and comments as to how much of our time, energy and money were wasted whenever we deal with these government offices. R-E-D-T-A-P-E!!!

Good news, fellow Filipinos! Our government has heard our cries and has finally acted on the problem. The government has finally come up with a game changer. A ground breaking change that aims to strengthen its commitment to provide the quality of public service that we Filipinos (taxpayers especially) truly deserve.

What is this game changer?

Republic Act No. 110321 or the “Ease of Doing Business and Efficient Government Service Delivery Act of 2018” became effective last June 17, 2018. It is an amendment to Republic Act No. 9485 or the Anti-Red Tape Act of 2007.

The Implementing Rules and Regulations (“IRR”) of RA 110321 came into effect last August 4, 2019.

What do we need to know about RA 110321?

COVERAGE

It covers all government agencies and agencies in the Executive Department including local government units (LGUs), government-owned or -controlled corporations and other government instrumentalities, located in the Philippines or abroad, that provide services covering business-related and non-business related transactions.

PROCESSING TIME

Applications/requests for government service submitted shall be acted upon within the prescribed processing time stated in the Citizen’s Charter, which shall not be longer than:

CREATION OF ANTI-RED TAPE AUTHORITY (“ARTA”) which is tasked to:

Implement and oversee national policy on anti-red tape and ease of doing business and implement reforms to improve competitiveness ranking.
Monitor compliance of agencies and issue notices to erring and non-compliant government employees and officials.
Initiate investigation motu propio, or upon receipt of a complaint, or file cases for violations.
Review proposed major regulations of government agencies, using submitted regulatory impact assessments

AUTOMATIC APPROVAL

Upon complaint, together with the presentation of the acknowledgment receipt and/or the official receipt, upon due investigation and verification that the applicant has indeed fully submitted all necessary documents and paid all the required fees, the ARTA shall issue a declaration of completeness and order the concerned office or agency to issue the approval, extension, and/or renewal of the license, clearance, permit, certification, or authorization which is deemed automatically approved under Sec. 10 of RA 11032.

CITIZEN’S CHARTER

All government agencies shall set up their respective most current and updated service standards to be known as the Citizen’s Charter.

The Citizen’s Charter is an official document that communicates:

– Service standards on service provided to citizens;

– Step-by-step procedure for availing service;

– Responsible person;

– Documents needed to be submitted;

– Fees to be paid, if any.

ZERO CONTACT POLICY

GENERAL RULE: All government agencies including LGUs shall adopt a zero-contact policy.

EXCEPTIONS: INTERACTIONS THAT ARE STRICTLY NECESSARY

Public officials and employees shall limit interactions to what is strictly necessary, such as:

– Payment of application and other fees

– Complex or Highly Technical Transactions

– Recording with prior consent

– Documented – notice of meetings, minutes/contact report, attendance sheet

BUSINESS ONE-STOP SHOP (“BOSS”)

All LGUs shall set up a BOSS which shall serve as a business permitting and licensing system that will receive and process applications for permits, licenses, certifications and authorizations.

ELECTRONIC BOSS

Within a period of three (3) years upon the effectivity of this Act, all cities and municipalities are mandated to AUTOMATE their business permitting and licensing system or to establish an electronic BOSS.

ACCOUNTABILITY

The head of the office or agency shall be primarily responsible for the implementation of the Act, including these and other Rules and Regulations, and shall be held accountable to the public in rendering fast, efficient, convenient and reliable service.

PENALTIES

FIRST OFFENSE

Administrative liability with six (6) months suspension: Provided, however, that in the case of fixing and/or collusion with fixers under Section 21 (h), the penalty and liability under Section 22 (b) of the Act shall apply.

SECOND OFFENSE

Administrative liability and criminal liability of DISMISSAL from the service, perpetual disqualification from holding public office and forfeiture of retirement benefits and imprisonment of one (1) year to six (6) years with a fine of not less than Five Hundred Thousand Pesos (P500,000.00) but not more than Two Million Pesos (P2,000,000.00).

VIOLATIONS

NATIONAL BUSINESS ONE-STOP SHOP (“BOSS”)

The National BOSS aims to co-locate, unify, automate the services of social agencies and LGUs to provide convenience to the public by accepting applications of business permits in a central location and promoting the use of electronic payment.

WHERE TO FILE FOR A COMPLAINT?

So, if you have personally encountered an incident with any government office which is considered a violation under RA 11032, you may file a complaint with ARTA through their website www.arta.gov.ph, or by filling out this complaint form with all the necessary details.

These government initiatives are very much welcome! As responsible Filipino citizens, let us help raise the awareness on these government programs which aim to elevate the standard of government service in the Philippines.