Ease of Doing Business Law
Ease of Doing Business Law
• NOW:
• The Temporary Secretariat of the
• Anti-Red Tape Authority
Department of Trade and Industry August 15, 2019 2
GLOBAL COMPETITIVENESS REPORT CARD
CHANGE
TOP
REPORT 2018 2017 2016 2015 2014 2013 2012 2011 2010 2010/11 to SOURCE
LATEST 20%
International Finance
1. Doing Business Report - 113/190 99/190 103/189 95/189 108/189 138/185 136/183 148/183 ↑ 35 Corporation
38
2. Economic Freedom Index 61/180 58/180 70/178 76/178 89/178 97/177 107/179 115/179 - ↑ 54 Heritage Foundation 36
Transparency
3. Corruption Perceptions Index 111/180 101/168 95/168 85/175 94/177 105/176 129/183 134/178 ↑ 23 International
36
World Intellectual
7. Global Innovation Index 73/128 74/128 83/141 100/143 90/142 95/141 91/125 - ↑ 18 Property Organization
25
10. Fragile States Index* 48/178 54/178 54/178 48/178 52/178 59/178 56/177 50/177 - ↓2 Fund for Peace 36
World Economic
11. Global Gender Gap Report 10/144 7/144 7/145 9/142 5/136 8/135 8/135 9/142 ↑ 2 Forum
29
• Philippines’ (PH)
ranking rose from
68th place to 56th.
4
On 2018 GCI 4.0, institutions
According to WEF
Policy stability
Responsiveness to change
Long-term vision
Adaptability of the legal framework to
technological change
CORRUPTION PERCEPTIONS
INDEX
Published by:
Corruption Perceptions Index
About the Report • Ranking of countries according to
the extent to which corruption is
believed to exist.
• Created in 1995 by Transparency
International.
• Ranks almost 200 countries on a
scale of zero to 10, with zero
indicating high levels of corruption
and 10 indicating low levels.
• Developed countries typically rank
higher than developing nations due
to stronger regulations.
7
Corruption Perception Index: Philippines
Corruption Perceptions Index: Philippines
2010-2017 (n=180)
2010-2017
85
94 95
105 101 111
Current
129
134
180
103
Côte d’Ivoire Area Code 111
Mongolia
Tanzania
Armenia
Ethiopia
107 FYR Macedonia
Vietnam
111 Philippines
Algeria
Bolivia
112 El Salvador
Maldives
Niger
Ecuador
Egypt
117 Gabon
Pakistan
Togo 9
Corruption Perceptions Index
PH vs ASEAN (2010-2017)
2017 2014 2013 2012 2010 CHANGE CHANGE
2016 2015 2011
Economy (out of
(out of 176) (out of 168)
(out of (out of (out of
(out of 182)
(out of 2016- 2010-
180) 174) 177) 176) 178) 2017 2017
Singapore 6 7 8 7 5 5 5 1 1 -5
Brunei
Darussala 32 41 n/a n/a 38 46 44 38 9 6
m
Malaysia 62 55 54 50 53 54 60 56 -7 -6
Indonesia 96 90 88 107 114 118 100 110 -6 14
Thailand 96 101 76 85 102 88 80 78 5 -18
Vietnam 107 113 112 119 116 123 112 116 6 9
Philippin
111 101 95 85 94 105 129 134 -10 23
es
Myanmar 130 136 147 156 157 172 180 176 6 46
Laos 135 123 139 145 140 160 154 154 -12 19 10
Source: Transparency International
UN E-GOVERNMENT SURVEY
Published by:
11
UN E-Government Survey
About the Report
• Offers a snapshot of trends in the
development of e-government across
the globe.
• Comparative ranking of the countries
of the world according to two primary
indicators: i) the state of e-government
readiness; and ii) the extent of e-
participation.
• Assesses the 193 member states of
the UN according to a quantitative
composite index of e-government
readiness based on
– website assessment;
– telecommunication infrastructure and
– human resource endowment. 12
3 Dimensions of EGDI
71 75
71 95 Current
88
193
15
UN e-Government Survey:
PH vs ASEAN (2010-2018)
2018 2016 2014 2012 2010 Change Change
Economy
out of 193 out of 193 out of 193 out of 193 out of 192 2016-2018 2010-2018
8Singapore 7 4 3 10 11 -3 4
Malaysia 48 60 52 40 32 12 -16
Brunei Darussalam 59 83 86 54 68 24 9
Thailand 73 77 102 92 76 4 3
Philippines 75 71 95 88 78 -4 3
Vietnam 88 89 99 83 90 1 2
Indonesia 107 116 106 97 109 9 2
Cambodia 145 158 139 155 140 13 -5
Myanmar 157 169 175 160 141 12 -16
Lao PDR 162 148 152 153 151 -14 -11
16
Data Source: UN e-Government Survey
e-Participation Index
PH vs ASEAN (2010-2018)
2018 2016
2014 2012 2010 Change Change
Economy out of out of
out of 193 out of 193 out of 192 2016-2018 2010-2018
193 193
Singapore 13 8 10 3 9 -5 -4
Philippines 19 67 51 66 64 48 45
Malaysia 32 47 59 31 12 15 -20
Viet Nam 72 43 65 101 110 -29 38
Thailand 82 67 54 48 110 -15 28
Indonesia 92 114 110 66 86 22 -6
Brunei
97 114 179 34 68 17 -29
Darussalam
Lao People's
Democratic 171 133 137 161 86 -38 -85
Republic
Cambodia 171 179 137 161 97 -8 -74
Myanmar 181 170 172 161
Data Source:180 -11 Survey -1
UN e-Government
EASE OF DOING
BUSINESS REPORT
Published by:
Ease of Doing Business Report
About the Report
•Published annually by the World Bank and
International Finance Corporation (IFC)
•Measures the number of steps, time, and
cost for a typical small and medium-scale
enterprise.
•Covers processes which businesses have
to undertake from Starting to a Business to
obtaining some basic permits (Construction
Permits, Registration of Property, Paying
Taxes, etc.) over the course of its lifecycle.
19
Ease of Doing Business
Philippine ranking, 2011-2018 (n=190)
1
Top Third
95 99
103
108
113
Bottom Third
136 138 Current
148
190
23
RA 11032: Salient Features
• Declaration of Policy (Section 2)
• Coverage (Section 3)
• Reengineering of Systems and Procedures (Section 5)
• Citizen’s Charter (Section 6)
• Zero Contact Policy (Section 7)
• Accessing Government Services (Section 9)
• Automatic Approval / Automatic Extension (Sec. 10)
• Streamlining of Local Permits and Licenses (Section 11)
• Streamlining of BFP-related permits and certificates (Section 12)
• Government Technology (Sections 13/14/26)
• Interconnectivity Infrastructure (Section 15)
• Anti-Red Tape Authority and EODB/ARTA Advisory Council (Secs. 17 to 19)
• Report Card Survey (Section 20)
• Violations and Persons Liable (Section 21)
• Penalties and Liabilities (Section 22)
• Jurisdiction and Immunity (Sections 23 /24/25)
• Transitory Provisions (Section 27)
• Congressional Oversight (Section 28)
• Appropriations (Section 29)
• Implementing Rules and Regulations (Section 30)
• Final Provisions (Sections 31/32/33)
RA No. 11032
A GAME CHANGER.
GROUNDBREAKING.
• Signed on May 28, 2018
• Published in two (2)
newspapers of general
circulation on June 2, 2018
the Official Gazette on June
11, 2018
• Effective 17 June 2018
• IRR to be promulgated on
October 22, 2018
25
The law effectively amends
RA 9485: Anti-Red Tape Act of 2007
SCOPE business-related/ non-business
related
COVERAGE all government agencies including
quasi-judicial agencies
ADDITIONAL • Automation
PROVISIONS • Zero contact policy
• LGU-related provisions
• Connectivity infrastructure
• Violations and penalties
RA 11032 in a nutshell
Promoting
Good Regulatory Practices
Embracing Setting Adopting Governance/
Customer standards on information and Institutional
Centricity Prescribed communication
arrangements
Repeal of Processing technologies /
Reengineering Regulatory
Outdated, Time Government
Government Impact
Redundant Technology
Systems and Assessment
Laws and (GovTech)
Procedures
Issuances
“
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,
2
SECTION
aimed at efficient turnaround of the delivery of
government services and the prevention of graft and Declaration
corruption in the government. Towards this end, the State shall
maintain honesty and responsibility among his public officials of
and employees, and shall take appropriate measures to Policy
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 non-business related transactions in government.”
Coverage (Sec. 3) National Government
Agencies (NGAs)
All government offices and
agencies including:
5
SECTION
5
SECTION
proposed regulation does not add: Re engineering of
undue regulatory burden Systems
and
cost to the agencies and the Procedures
applicants or requesting parties.
• When necessary, any proposed
regulation may undergo pilot
implementation to assess regulatory
impact.
Anti-Red Tape Authority (ARTA)
shall:
• coordinate with all government
5
SECTION
offices in the review of Re engineering of
• existing laws Systems
• executive laws and
• executive issuances and Procedures
• local ordinances
•recommend the repeal if deemed
outdated, redundant, and if
regulation adds undue regulatory
burden to the transacting public.
Embracing
Customer-Centricity
• All government agencies shall set
up their respective most current
and updated service standards to
be known as the Citizen's Charter SECTION
6
Citizen’s Charter
• The Citizen’s Charter shall detail:
a) comprehensive and uniform
checklist for each type of
application or request;
b) procedure to obtain a
particular service;
c) person/s responsible for each
step;
• All government agencies including local government
units (LGUs) shall adopt a zero-contact policy.
7
strictly necessary, except: SECTION
‒ during the preliminary assessment of the request Zero
‒ Payment
‒ In case of complex/highly technical transactions. Contact
Policy
• DICT shall complete a web-based software enabled
business registration system
9
completion before issuing AR)
• Issue the applicant a unique identification number SECTION
(You need to invest in a document tracking system!) Accessing
• Denial of Request for Access to Government Service Governmen
(You need to have a written notice) t
• Limit signatories to 3. In case authorized signatory is Services
on OB, an alternate shall be designated. Use electronic
signature or pre-signed licenses with adequate
security.
• Electronic Versions of Licenses, Permits, Certifications
or Authorizations
• Adoption of Working Schedules to Serve Applicants or
Requesting Parties
• Establishment of Public Assistance/Complaints Desk
• If government fails to approve or disapprove
within prescribed time, said application SHALL
BE DEEMED APPROVED
10
and all required fees and charges have been paid. Automatic
Approval /
• Government to issue acknowledgement receipt
together with the official receipt for payment of Automatic
all required fees issued to the applicant or Extension
requesting party.
11
SECTION
business permitting and licensing system within 3 OF LOCAL
years.
GOVERNM
• Barangay clearances and permits related to doing ENT
business shall be applied, issued, and collected at the
city/municipality. PROCEDU
RES
• At the local government level, the city or municipal business
process and licensing office shall not require the same
documents already provided by an applicant or requesting
party to the local government departments.
Setting Standards
on Prescribed
Processing Time
Working days for Working days for Highly
simple transactions Technical Application
45 working days
45
Working days for
This can be extended for another
complex transactions
twenty (20) working days*
*
Application or request for
The number of signatories in any document shall be license, clearance, permit or
authorization which require
limited to a maximum of three (3) signatures from 5 the approval of the local
signatories. Sangguniang Bayan,
Sangguniang Panlungsod, or
the Sangguniang
Panlalawigan.
Streamlined
TYPE OF Procedures
NUMBER OF DAYS
APPLICATION for Securing
Fire Safety
Fire Safety Evaluation Evaluation
12
seven (7) working days. SECTION Clearance,
Clearance (FSEC)
Fire Safety
Inspection
Fire Safety Inspection Certificate,
seven (7) working days. and
Clearance (FSIC)
Certification
of Fire
Certification of Fire twenty (20) working days Incidents for
Incident (CFI) (extended once) Fire
Insurance.
• Co-location with the Business One Stop Shop (BOSS); Streamlined
Procedures
• BFP may enter into agreements with cities/municipalities, for Securing
allowing the latter to be deputized as assessors and/or Fire Safety
collecting agents for the fire safety inspection fees.
Evaluation
12
SECTION Clearance,
• Bureau of Fire Protection shall not sell, offer or recommend
specific brands of fire extinguishers and other fire safety Fire Safety
equipment to any applicant or requesting party or business Inspection
entity. Certificate,
and
Any violation thereof shall be punishable by imprisonment Certification
of one (1) year to six (6) years and a penalty of not less than of Fire
Php 500,000.00 but not more than Php 2,000,000.00.
Incidents for
Fire
Insurance.
TYPE OF GOVERNTMENT
TYPE OF APPLICATION NUMBER OF DAYS
AGENCY/OFFICE
15
for the installation and
SECTION
operation of
LGUs Seven (7) working days Interconnectivity
telecommunication,
broadcast towers,
Infrastruct
facilities, equipment and LOCAL LEGISLATIVE non-extendible period ure
BODY of twenty (20) working
service
days Developm
ent
• Homeowner’s association shall be given ten (10) working days to refer to
association members, provided that non extendible of 30 days to give its
consent or disapproval
13
the local government units.
Central
• Issue rules and guidelines on the:
‒ establishment, operation and maintenance of Busine
the central business portal; and ss
‒ use of electronic signatures Portal
• DICT is mandated to implement an
Interconnectivity Infrastructure Development
Program for interconnectivity between and
among NGAs and LGUs
• Philippine Business Databank shall provide
access to data and information of registered
business entities for purposes of verifying the
validity, existence of and other relevant SECTIONS
information pertaining to business entities.
14
Philippine
• All concerned NGAs and LGUs to link their
own database with the system
Busine
ss
• Periodically submit updates relevant to the Datab
information registered with them ank
• NGAs and LGUs shall not require the same
documents already provided to the local
government departments in connection with
other business-related licenses.
• Within three (3) years after the effectivity of Transition
the Act, automate business-related from
transactions through development of : SECTIONS
‒ necessary software; Manua
26
‒ technology-neutral platforms; and l to
‒ secure infrastructure Softw
are
• DICT to ensure that all third (3rd), fourth (4th), Enabl
fifth (5th) and sixth (6th) class municipalities
and provinces are provided with appropriate ed
equipment and connectivity, information and Busine
communications technology platform, ss
training and capability building Transa
ction
PROJECT ONE:
Doing Business Design Sprint
One Portal, One Form, One Business Number
55
COMPOSITION
• Director General (DG) with a rank of Secretary
17
• DDG for administration and finance.
Anti-Red
*Attached under the Office of the President (OP). Tape
Authority
TENURE & EMPLOYMENT STATUS
(ARTA)*
• DG – Appointed and co-terminus with the President of the
Philippines
17
(b) Implement various ease of doing
business and anti-red tape reform Creation of the
initiatives aimed at improving the ranking Anti-Red Tape
of the Philippines; Authority
(c) Monitor and evaluate the compliance of
agencies covered under the law, and
issue notice of warning to erring and/or
non-complying government employees
or officials
POWERS & FUNCTIONS
(g) Review proposed major regulations
of government agencies using
submitted regulatory impact SECTION
17
assessments, subject to
proportionality rules Creation of the
(k) Ensure public access to information Anti-Red Tape
on regulatory management system Authority
and changes in laws and regulations
by establishing the Philippine
Business Regulations Information
System
COMPOSITION
Chairperson - Secretary of the DTI
Vice-Chairperson - Director General of the
Authority SECTION
19
Members: Secretaries of the DICT, DILG and Structure of the
Department of Finance (DOF), and two (2) EODB/ART
representatives from the private sector A Advisory
Council
National Competitiveness Council will be renamed and
reorganized as Ease of Doing Business and Anti-Red
Tape Advisory Council, will be the policy and advisory
body to the Authority.
• All agencies providing government services shall be
subjected to a Report Card Survey (RCS).
20
• RCS shall be used to obtain:
‒ feedback on how provisions in the Citizen's Charter
and the Act are being followed and how the agency
Report Card
is performing; Survey
‒ information and/or estimates of hidden costs
incurred by applicants or requesting parties to
access government services
21
4. Failure to give the applicant or requesting party a written notice on the
disapproval of an application/request; Violations and
5. Failure to render government services within the prescribed processing Persons
time on any application or request without due cause;
Liable
6. Failure to attend to applicants or requesting parties who are within the
premises of the office or agency concerned prior to the end of official
working hours and during lunch break;
22
• Administrative liability and Criminal liability with
dismissal from the service, perpetual Penalties and
disqualification from holding public office and
forfeiture of retirement benefits and Liabilities
• Imprisonment: one (1) year to six (6) years
• Fine: not less than Five Hundred Thousand Pesos
(P500,000.00) but not more than Two Million Pesos
(P2,000,000.00).
23
• The administrative jurisdiction on any violation of the
provisions of this Act shall be vested in either the CSC, or the
Office of the Ombudsman.
25
willingly testifies therefore, shall be exempt from prosecution
in the case/s where his/her information and testimony are
given. The discharge may be granted and directed by the
investigating body or court upon the application or petition
of any of the respondent/accused-informant and before the
termination of the investigation
• ARTA DG to determine organizational structure
and personnel complement.
27
option to transfer.
Transitory
• All regulatory management programs and anti- Provisions
red tape initiatives to be gathered by the
Authority. DTI, CDA, NCC, DOF, DAP, and NEDA
to submit to ARTA project status.
SENATE
• Committee on Trade and Commerce and
Entrepreneurship - Chair
• Civil Service, Government Reorganization and SECTION
28
Professional Regulation, and
• Economic Affairs
HOR Congressional
• Committee on Trade and Industry- Chair Oversight
• Civil Service and Professional Regulation
• Government Reorganization, and
• Economic Affairs.
29
concerned agencies. In addition, the amount of
THREE HUNDRED MILLION PESOS
(P300,000,000.00) as initial funding for the Appropriations
Authority to be charged against the
unexpended contingency funds of the Office of
the President is hereby appropriated.
ARTA, CSC, and DTI to coordinate with:
1. DICT
2. DOF
SECTION
30
3. DILG
4. NEDA Implementing
5. PSA Rules and
6. CDA In promulgating
7. SEC Regulation
8. Office of the Ombudsman, s
9. Housing and Land Regulatory Board (HLURB),
10. Union of Local Authorities of the Philippines (ULAP)
REGION 10 REGION 8
Cagayan De Oro City | Sept 3 Tacloban City | Sept 18
CARAGA REGION 7
Butuan City | Sept 4 Cebu City | Sept 19-20
REGION 11 REGION 6
Davao City | Sept 5 Iloilo City | Sept 21
REGION 5
Legazpi City | Sept 7
CAR
Baguio City | Sept 27
REGIONAL
REGION 9 and ARMM
ROADSHOWS
NCR
Zamboanga City | Manila Sept 10 Manila | Sept 28
16 Regional Roadshows
“Makiisa para sa isang Mabilis,
Malinis, Maasahan at may
Malasakit na Pamahalaan — Para
sa Maginhawang Pamumuhay
ng Mamayang Pilipino.”
- Pres. Rodrigo Roa Duterte
Thank you.
DEPARTMENT OF TRADE AND INDUSTRY COMPETITIVENESS BUREAU (DTI-CB)
THE TEMPORARY SECRETARIAT OF THE ANTI-RED TAPE AUTHORITY