Orientation on the

“Integration of Barangay
Clearance in LGU
Permitting Processes”
LGOO IV KIMBERLY J. CATAQUIS
 Background
President Duterte’s 0+10 socio economic agenda includes:
“increasing competitiveness
and ease of doing business”

“ more accessible
government services
through reduced
documentary
requirements,
processing time and
signatories for
“people centered, clean, efficient and
effective governance” transactions”

“ One whole of government approach”, promotes

simplification of government transactions, inter-
operability of government processes, strengthen linkages
and coordination among agencies
 Philippine Constitution, Section 4
“The President of the Philippines shall exercise general
supervision over local governments. Provinces with
LEGAL respect to component cities and municipalities, and
cities and municipalities with respect to component
FRAMEWORK barangays shall ensure that the acts of their component
units are within the scope of their prescribed powers and
functions.”

Local Government Code (RA 7160) Section 25

(a) National Supervision over Local Government Units.
“Consistent with the basic policy on local autonomy,
the President shall exercise general supervision over
local government units to ensure that their acts are
within the scope of their prescribed powers and
functions. The President shall exercise supervisory
authority directly over provinces, highly urbanized
cities, and independent component cities; through
the province with respect to component cities and
municipalities; and through the city and municipality
 EODB/EGDS Act or Act or RA 11032
Sec. 11(f) “Barangay Clearances and Permit related
LEGAL to doing business shall be applied, issued
FRAMEWORK and collected at the city/ municipality in
accordance with the processing time of
said Act. Provided that the share in the
collections shall be remitted to the
respective barangays”.

The pertinent provisions of RA 7160,

specifically Article IV, Section 152(c) is hereby
amended
 Legal Framework
DILG-DTI-DICT JMC No. 01 s. of 2016: Revised Standards in Processing
Business Permit and Licenses in all Cities and Municipalities

Sec 6.8.1 Integration of Barangay Clearance in the business permit process.

Barangay clearance that are related in doing business maybe
applied, issued and collected at the City or municipality provided
that all collections on the week shall be remitted to the concerned
barangays.
DILG-DPWH-DICT-DTI JMC No. 2018-01: Guidelines in Streamlining the
Processes for the Issuance of Building Permits and Certificates of
Occupancy.”

Sec.6.1.9 In processing the locational clearance, the LCE and the barangays
under his/her jurisdiction shall work out an arrangement
whereby the city hall officials shall be allowed to collect
barangay fees related to building permit and locational
clearance applications, which shall be remitted to the
concerned barangays at an agreed timetable.
 Legal Framework
JMC 2018-01: “Guidelines in Streamlining the Processes for the Issuance of
Building Permit and Certificate of Occupancy”

6.1.16 Assessment. After the evaluation of the building permit

application, the Zoning Officer, the BFP, and the OBO shall
simultaneously prepare an Order of Payment that will be issued
to the applicant at the same time, specifying the fees that the
applicant is obligated to pay in accordance with the provisions of
the Zoning Ordinance, NBCP, FCP and the local revenue code .

The Zoning Officer, the BFP and the OBO shall put in place the
necessary measures to implement a one-time assessment of
building-related fees and charges which shall include the local
fees for securing the locational clearance, barangay clearance,
filing fees as described in Section 6.1.17, among others.

6.1.20 Payment of Fees The OBO is enjoined to issue the building

permit and other ancillary permits, the Barangay Clearance, the
Locational Clearance and FSEC upon payment of the required fees
by the applicant.
Integration of Barangay
Clearance in the LGU
Permitting Processes

(for Business Permit and Locational

Clearance)
 Business Permits
A. New Business Application with Certificate of Occupancy
New structure intended for business purposes with Certificate of
Occupancy, a Barangay Clearance is no longer required.

B. New Application which do not require Certificate of Occupancy

If Barangay Clearance is needed for application of new business, the
BPLO shall inform concerned Barangay for new business application
and to immediately issue Barangay Clearance to conform to the
standard time set in the issuance of Business Permit under Sec 6.1.4 of
the DILG-DTI-DICT JMC 2016-01.
 Business Permits
A. Renewal of Business Permit (pre-audit)

As a requirement for the renewal of Business Permit,

Barangay Clearance shall be issued and submitted at the
City/ Municipality prior to renewal provided the business is
compliant to applicable laws and regulatory bodies such as
Fire Safety Inspection Clearance (FSIC), occupational and
safety standards and other similar requirements that will
ensure public safety, health and welfare in all workplaces
based on findings conducted by Joint Inspection Team (JIT) or
by City/Municipality
 Locational Clearance
A. Requirement for the issuance of Locational Clearance in
relation to Building Permit

Barangay Clearance as a requirement for Locational

Clearance, must be secured from the Barangay by the
City/Municipal Zoning Officer.

Barangay Clearance must be issued by concerned Barangay

to the City/Municipal Zoning Officer who will then release
together with the Locational Clearance through the Building
Official together with the Building Permits
 Payment of Barangay Clearance Fees

A. Integrated in the Order of Payment

Barangay Clearance Fees is integrated/included in the Order
of Payment for both Business and Building Permits;

B. Payment of Barangay Clearance Fees

Fees for Barangay Clearance for Business Permit and Locational
Clearance will be paid at the Office of the City/Municipal
Treasurer together with other fees and charges for Business
and Building Permits
 Roles Cities and Municipalities

 Enact ordinances and issue and implement requisite orders and

directives relative to the new standards and other complementary
reforms for business and issuance of locational clearance for Building
permits.

 Notify/inform concerned barangay of any application for Business

Permits and Locational Clearance for Building Permit for approval or
disapproval of issuing Barangay Clearance.
If no action has been taken by the Barangay within three (3) working
days upon notice from the cities/municipalities on the application, same
shall be deemed approved.
 Roles Cities and Municipalities

 Include/integrate barangay clearance fees in the

assessment/order of payment for Business and Building
Permits fees and/or charges.

 Collect Barangay Clearance fees in accordance to the

amount of Barangay Clearance fee stated in the Barangay
Ordinance submitted to the City/ municipality.

 Issue singular official receipt to the applicant corresponding

to the total amount indicated in the Order of Payment with
the inclusion of Barangay fees.
 Roles Cities and municipalities

 Automatically remit the collected the Barangay

Clearance Fees to concerned Barangay not later than
seven (7) working days of the ensuing month with the
list of issued permits.

 Release Barangay Clearance together with the permits

through the Business One-Stop Shop/BPLO and One
Stop-Shop for Construction Permit/OBO
 Roles of Barangay
Barangays
- Issue Barangay Ordinance relative to Barangay Clearance fees for Business
and Locational clearance for Building Permit as basis for collection;

- Issue Resolution authorizing the City/Municipal Treasurer to collect fees for

Barangay Clearance for Business Permit and Locational Clearance purposes;

- Immediately upon receipt of Notice for the Application of Business and

Building Permit conduct ocular visit to verify status of the location subject
to the application;

- For new business application, issue Barangay Clearance immediately to

conform to the standard time set on the issuance of Business Permit under
JMC 2016-01;
 Roles of Barangay
Barangays
- Issue Barangay Clearance as a requirement for Locational Clearance not
more than three (3) working days from application at the city/municipality.

- Monitor and ensure that all business operations and structure constructed
comply with the law.

- Inform in writing the city or municipal mayor for immediate action in cases
of non compliance with legal requisites or any illegal acts committed by
business/building owners/applicants

- In preparation of for Business Permit renewal, join JIT of city/municipality

in the conduct of inspection 3 months prior to renewal and issue and
submit Barangay Clearance to city/municipality for establishments that are
compliant to applicable laws and regulatory bodies
Maraming
Salamat Po!