Ease of Doing Business and Efficient Government Service Delivery Act of 2018

Republic Act 11032

Policy of the State

It is hereby declared that the policy of the State to promote integrity, accountability, proper management of
public affairs and public property as well as to establish effective practices, aimed at efficient turnaround of the
delivery of government services and the prevention of graft and corruption in the government. Towards this
end, the State shall maintain honesty and responsibility among its public officials and employees, and shall take
appropriate measures to promote transparency in each agency with regard to the manner of transacting with the
public, which shall encompass a program for the adoption of simplified requirements and procedures that will
reduce red tape and expedite business and nonbusiness related transactions in government.

Coverage

This Act shall apply to all government offices and agencies including local government units (LGUs),
government owned or controlled corporations and other government instrumentalities, whether located in the
Philippines or abroad, that provide services covering business and nonbusiness related transactions as defined in
this Act".

Definition of Terms:

a. Action— refers to the written approval or disapproval made by a government office or agency on the
application or request submitted by an applicant or requesting party for processing

b. Business One Stop Shop (BOSS) — a single common site or location, or a single online website or
portal designated for the Business Permits and Licensing System (BPLS) of an LGU to receive and
process applications, receive payments, and issue approved licenses, clearances, permits, or
authorizations

c. Business-related transactions— a set of regulatory requirements that a business entity must comply
with to engage, operate or continue to operate a business, such as, but not limited to, collection or
preparation of a number of documents, submission to national and local government authorities,
approval of application submitted, and receipt of a formal certificate or certificates, permits, licenses
which include primary and secondary, clearances and such similar authorization or documents which
eligibility to operate or continue to operate as a legitimate business
d. Complex transactions—applications or requests submitted by applicants or requesting parties of a
government office which necessitate evaluation in the resolution of complicated issues by an officer or
employee of said government office, such transactions to be determined by the office concerned

e. Fixer—any individual whether or not officially involved in the operation of a government office or
agency who has access to people working therein, and whether or not in collusion with them, facilitates
speedy completion of transactions for pecuniary gain or any other advantage or consideration

f. Government service—the process or transaction between applicants or requesting parties and

government offices or agencies involving applications for any privilege, right, reward, license,
clearance, permit or authorization, concession, or for any modification, renewal or extension of the
enumerated applications or requests which are acted upon in the ordinary course of business of the
agency or office concerned

g. Highly technical application—an application which requires the use of technical knowledge,
specialized skills and/or training in the processing and/or evaluation thereof

h. Nonbusiness transactions— all other government transactions not falling under Section 4 (c) of this Act
i. Officer or employee—a person employed in a government office or agency required to perform specific
duties and responsibilities related to the application or request submitted by an applicant or requesting
party for processing
j. Processing time—the time consumed by an LGU or national government agency (NGA) from the
receipt of an application or request with complete requirements, accompanying documents and
payment of fees to the issuance of certification or such similar documents approving or disapproving an
application or request
k. Red tape—any regulation, rule, or administrative procedure or system that is ineffective or detrimental
in achieving its intended objectives and, as a result, produces slow, suboptimal, and undesirable social
outcomes

l. Regulation—any legal instrument that gives effect to a government policy intervention and includes
licensing, imposing information obligation, compliance to standards or payment of any form of fee,
levy, charge or any other statutory and regulatory requirements necessary to carry out activity
m. Simple transactions—applications or requests submitted by applicants or requesting parties of a government
office or agency which only require ministerial actions on the part of the public officer or employee, or
that which present only inconsequential issues for the resolution by an officer or employee of said
government office

Anti-Red Tape Authority (ARTA)

It refers to the government agency that is attached to the Office of the President and that is entrusted to ensure
the attainment of this law. The following are the functions of the said Authority:

a. Implement and oversee a national policy on anti-red tape and ease of doing business;

b. Implement various ease of doing business and anti-red tape reform initiatives aimed at improving the
ranking of the Philippines;

c. Monitor and evaluate the compliance of agencies covered under Section 3 of this Act, and issue notice
of warning to erring and/or noncomplying government employees or officials;

d. Initiate investigation, motu propio or upon receipt of a complaint, refer the same to the appropriate
agency, or file cases for violations of this
Act;
e. Assist complainants in filing necessary cases with the CSC, the
Ombudsman and other appropriate courts, as the case may
f. Recommend policies, processes and systems to improve regulatory management to increase the
productivity, efficiency, and effectiveness of business permitting and licensing agencies;
g. Review proposed major regulations of government agencies, using submitted regulatory impact
assessments, subject to proportionality rules to be determined by the Authority;
h. Conduct regulatory management training programs to capacitate NGAs and LGUs to comply with
sound regulatory management practices;
i. Prepare, in consultation with the appropriate agencies, regulatory management manuals for all
government agencies and/or instrumentalities and LGUs
j. Provide technical assistance and advisory opinions in the review of proposed national or local
legislation, regulations or procedures;

k. Ensure the dissemination of and public access to information on regulatory management system and
changes in laws and regulations relevant to the public by establishing the Philippine
Business Regulations information system;

l. Enlist the assistance of the CSC, DTI and other government agencies in the implementation of its
powers and functions provided for in this Act; and

m. Perform such acts as may be necessary to attain the objectives of this Act.

Reengineering of Systems and Procedures

All offices and agencies which provide government services are hereby mandated to regularly undertake cost
compliance analysis, time and motion studies, undergo evaluation and improvement of their transaction systems
and procedures and reengineer the same if deemed necessary to reduce bureaucratic red tape and processing
time.

a. "The Anti-Red Tape Authority, created in this Act, shall coordinate with all government offices
covered under Section 3 of this Act in the review of existing laws, executive issuances and local
ordinances, and recommend the repeal of the same if deemed outdated, redundant, and adds undue
regulatory burden to the transacting public.

b. "All proposed regulations of government agencies under Section 3 of this Act shall undergo regulatory
impact assessment to establish if the proposed regulation does not add undue regulatory burden and
cost to these agencies and the applicants or requesting parties: Provided, that when necessary, any
proposed regulation may undergo pilot implementation to assess regulatory impact.
c. "Upon effectivity of this Act, all LGUs and NGAs are directed to initiate review of existing policies
and operations and commence with the reengineering of their systems and procedures in compliance
with the provisions of this Act, pending the approval of the implementing rules and regulations (IRR)
thereof."
Citizen's Charter

All government agencies including departments, bureaus, offices, instrumentalities, or government owned
and/or - controlled corporations, or local LGUs shall set up their respective most current and updated service
standards to be known as the Citizen's Charter in the form of information billboards which shall be posted at the
main entrance of offices or at the most conspicuous place, in their respective websites and in the form of
published materials written either in English, Filipino, or in the local dialect, that detail:

a. A comprehensive and uniform checklist of requirements for each type of application or request;

b. The procedure to obtain a particular service;

c. The person/s responsible for each step;

d. The maximum time to conclude the process;

e. The document/s to be presented by the applicant or requesting party, if necessary;

f. The amount of fees, if necessary; and

g. The procedure for filing complaints."

Zero-Contact Policy

Except during the preliminary assessment of the request and evaluation of sufficiency of submitted
requirements, no government officer or employee shall have any contact, in any manner, unless strictly
necessary with any requesting party concerning an application or request. Once the Department of Information
and Communications Technology (DICT) has completed a web-based software enabled business registration
system that is acceptable to the public as mandated by Section 26 of this Act, all transactions shall be coursed
through such system. All government agencies including LGUs shall adopt a zero-contact policy.

Accessing Government Services

The following shall be adopted by all government offices and agencies:
a. Acceptance of Applications or Requests
b. Action of Offices
c. Denial of Application or Request for Access to Government Service
d. Limitation of Signatories
e. Electronic Versions of Licenses, Clearances, Permits, Certifications or
Authorizations

f. Adoption of Working Schedules to Serve Applicants or Requesting Parties

g. Identification Card
h. Establishment of Public Assistance/Complaints Desk

Acceptance of Applications or Requests

"(1) All officers or employees shall accept written applications, requests, and/or documents being submitted by
applicants or requesting parties of the offices or agencies.
"(2) The receiving officer or employee shall perform a preliminary assessment of the application or request
submitted with its supporting documents to ensure a more expeditious action on the application or request. The
receiving officer or employee shall immediately inform the applicant or requesting party of any deficiency in
the accompanying requirements, which shall be limited to those enumerated in the Citizen's Charter.
"(3) The receiving officer or employee shall assign a unique identification number to an application or request,
which shall be the identifying number for all subsequent transactions between the government and the applicant
or requesting party regarding such specific application or request.
"(4) The receiving officer or employee shall issue an acknowledgement receipt containing the seal of the
agency, the name of the responsible officer or employee, his/her unit and designation, and the date and time of
receipt of such application or request.
Action of Offices

All applications or requests submitted shall be acted upon by the assigned officer or employee within the
prescribed processing time stated in the Citizen's Charter which shall not be longer than three (3) working days
in the case of simple transactions and seven (7) working days in the case of complex transactions from the date
the request and/or complete application or request was received.
"For applications or requests involving activities which pose danger to public health, public safety, public
morals, public policy, and highly technical application, the prescribed processing time shall in no case be longer
than twenty (20) working days or as determined by the government agency or instrumentality concerned,
whichever is shorter.

"The maximum time prescribed above may be extended only once for the same number of days, which shall be
indicated in the Citizen's Charter. Prior to the lapse of the processing time, the office or agency concerned shall
notify the applicant or requesting party in writing of the reason for the extension and final date of release of the
government service/s requested. Such written notification shall be signed by the applicant or requesting party to
serve as proof of notice.

"If the application or request for license, clearance permit, certification or authorization shall require the
approval of the local Sangguniang Bayan, Sangguniang Panlungsod, or the Sangguniang Panlalawigan as the
case may be, the Sanggunian concerned shall be given a period of forty-five (45) working days to act on the
application or request, which can be extended for another twenty (20) working days. If the local Sanggunian
concerned has denied the application or request, the reason for the denial, as well as the remedial measures that
may be taken by the applicant shall be cited by the concerned Sanggunian

"In cases where the cause of delay is due to force majeure or natural or man-made disasters, which result to
damage or destruction of documents, and/or system failure of the computerized or automatic processing, the
prescribed processing times mandated in this Act shall be suspended and appropriate adjustments shall be made.

"(2) No application or request shall be returned to the applicant or requesting party without appropriate action.
In case an application or request is disapproved, the officer or employee who rendered the decision shall send a
formal notice to the applicant or requesting party within the prescribed processing time, stating therein the
reason for the disapproval. A finding by a competent authority of a violation of any or other laws by the
applicant or requesting party shall constitute a valid ground for the disapproval of the application or request,
without prejudice to other grounds provided in this Act or other pertinent laws.

Denial of Application or Request for Access to Government Service

Any denial of application or request for access to government service shall be fully explained in writing, stating
the name of the person making the denial and the grounds upon which such denial is based. Any denial of
application or request is deemed to have been made with the permission or clearance from the highest authority
having jurisdiction over the government office or agency concerned.

Limitation of Signatories

The number of signatories in any document shall be limited to a maximum of three (3) signatures which shall
represent officers directly supervising the office or agency concerned: Provided, that in case the authorized
signatory is on official business or official leave, an alternate shall be designated as signatory. Electronic
signatures or pre-signed license, clearance, permit, certification or authorization with adequate security and
control mechanism may be used.

Electronic Versions of Licenses, Clearances, Permits, Certifications or Authorizations

All government agencies covered under Section 3 of this Act shall, when applicable, develop electronic versions
of licenses, clearances, permits, certifications or authorizations with the same level of authority as that of the
signed hard copy, which may be printed by the applicants or requesting parties in the convenience of their
offices.

Adoption of Working Schedules to Serve Applicants or Requesting Parties

Heads of offices and agencies which render government services shall adopt appropriate working schedules to
ensure that all applicants or requesting parties who are within their premises prior to the end of official working
hours are attended to and served even during lunch break and after regular working hours.

Identification Card

All employees transacting with the public shall be provided with an official identification card which shall be
visibly worn during office hours.
Establishment of Public Assistance/Complaints Desk
Each office or agency shall establish a public assistance/complaints desk in all their offices.

Automatic Approval, or Automatic Extension of License, Clearance, Permit, Certification

or Authorization

If a government office or agency fails to approve or disapprove an original application or request for issuance of
license, clearance, permit, certification or authorization within the prescribed processing time, said application
or request shall be deemed approved: Provided, that all required documents have been submitted and all
required fees and charges have been paid. The acknowledgment receipt together with the official receipt for
payment of all required fees issued to the applicant or requesting party shall be enough proof or has the same
force and effect of a license, clearance, permit, certification or authorization under this automatic approval
mechanism.

If a government office or agency fails to act on an application or request for renewal of a license, clearance,
permit, certification or authorization subject for renewal within the prescribed processing time, said license,
clearance, permit, certification or authorization shall automatically be extended: Provided, That the Authority,
in coordination with the Civil Service Commission (CSC), Department of Trade and Industry (DTI), Securities
and Exchange Commission (SEC), Department of the Interior and Local Government (DILG) and other
agencies which shall formulate the IRR of this Act, shall provide a listing of simple, complex, highly technical
applications, and activities which pose danger to public health, public safety, public morals or to public policy."

Streamlined Procedures for Securing Fire Safety Evaluation Clearance (FSEC), Fire
Safety Inspection
Certificate (FSIC), and Certification of Fire Incidents for Fire Insurance

a. Issuance of FSEC and FSIC shall in no case be longer than seven (7) working days;

b. For new business permit application, the FSIC already issued during the occupancy permit stage shall
be sufficient as basis for the issuance of the FSIC for a business entity as a requirement for the business
permit;

c. For renewal of business permit, the BFP shall, within three (3) working days from application, present
the FSIC to the city/municipality, either thru the copy of the FSIC or the negative/positive list:
Provided, That the business entity shall inform the BFP and submit the necessary documentary
requirements if renovations, modifications or any form of alterations are made to the original building
structure thirty (30) working days before the expiration of the business permit;

d. If the BFP fails to furnish the city/municipality with an FSIC or to inform the same through the
negative/positive list within three working days (3) days from the application of business renewal, the
business entity shall be deemed to have a temporary valid FSIC and, therefore, shall serve as the basis
for the automatic renewal of the business permit

e. Issuance of the certification of fire incident for fire insurance purposes shall in no case be longer than
twenty (20) working days, and may be extended only once for another twenty (20) working days;
Interconnectivity Infrastructure Development

In order to expedite the processing of licenses, clearances, permits, certifications or authorizations, the
Authority, together with the DICT, shall develop a fast and reliable interconnectivity infrastructure. In relation
to this, the processing and approval of licenses, clearances, permits, certifications or authorizations for the
installation and operation of telecommunication, broadcast towers, facilities, equipment and service shall be:

a. a total of seven (7) working days for those issued by the barangay;

b. a total of seven (7) working days for those issued by LGUs; and

c. a total of seven (7) working days for those issued by NGAs.

"If the granting authority fails to approve or disapprove an application for a license, clearance, permit,
certification or authorization within the prescribed processing time, said application shall be deemed approved:
Provided, that when the approval of the appropriate local legislative body is necessary, a non-extendible period
of twenty (20) working days is hereby prescribed.

"For homeowners and other community clearances, the officers of the homeowner's association shall be given
ten (10) working days to refer the application to the members of the association pursuant to Section IO(k) of
Republic Act No. 9904 otherwise known as the "Magna Carta for Homeowners and Homeowners
Associations": Provided, That a non-extendible period of thirty (30) working days is granted the homeowners
association to give its consent or disapproval: Provided, further, That in case of disapproval, the granting
authority shall notify the applicant or requesting party within the prescribed period of the reason/s for
disapproval as well as remedial measures that may be taken by the applicant or requesting party.

Central Business Portal - (CBP)

To eliminate bureaucratic red tape, avert graft and corrupt practices and to promote transparency and sustain
ease of doing business, the Department of Information and Communication Technology or DICT shall be
primarily responsible in establishing, operating and maintaining a CBP or other similar technology, as the DICT
may prescribe. The Central Business Portal (CBP) shall serve as a central system to receive applications and
capture application data involving business-related transactions, including primary and secondary licenses, and
business clearances, permits, certifications or authorizations issued by the LGUS: Provided, That the CBP may
also provide links to the online registration or application systems established by NGAs.
"The CBP shall serve as a central system to receive applications and capture application data involving
business-related transactions, including primary and secondary licenses, and business clearances, permits,
certifications, or authorizations issued by the LGUs: Provided, That the CBP may also provide links to the
online registration or application systems established by NGAs.
"The DICT, upon consultation with the National Privacy Commission (NPC), NGAs and LGUs shall
issue rules and guidelines on the following: (a) the establishment, operation and maintenance of the CBP;
and (b) the use of electronic signatures.
"The DICT is hereby mandated to implement an Interconnectivity Infrastructure Development Program for
interconnectivity between and among NGAs and LGUs.
"The DICT, in coordination with other concerned NGAs and LGUs shall also conduct information
dissemination campaigns aimed towards raising public awareness on the existence of the CBP and the improved
access to and effective utilization of the program. "
Penalties

Two-strike policy for government officials and employees found in violation of EODB/EDGSA
First Offense:
Administrative liability with six months suspension, except for fixing or collusion with fixers where the Revised
Penal Code shall apply
Second Offense:
• Administrative and criminal liabilities
• Dismissal from service
• Perpetual disqualification from holding public office
• Forfeiture of retirement benefits
• Imprisonment of one (1) year to six (6) years o Fine of not less than P500,000 but not more than
P2,000,000