R.A. No. 11032 or the Ease of Doing Business Act | Right to Information | THE BILL OF RIGHTS

R.A. No. 11032 - Ease of Doing Business and Efficient Government Service Delivery Act of 2018

Overview

Republic Act No. 11032, or the Ease of Doing Business and Efficient Government Service Delivery Act of 2018, aims to streamline government procedures to promote business competitiveness by reducing bureaucratic red tape and expediting the issuance of permits, licenses, and certificates, among others. The law primarily enhances the right to information under the Bill of Rights by ensuring that government transactions are transparent and efficient, giving the public greater access to timely government services.

Objectives

  1. Simplification of Government Processes - The Act mandates the government to streamline procedures and eliminate unnecessary steps in securing business-related documents.
  2. Citizen-Centric Services - It aims to improve public access to government services, thereby reinforcing the people's right to information on matters affecting public interests.
  3. Promoting Transparency and Accountability - By enforcing strict processing deadlines and penalizing government employees for non-compliance, the Act fosters transparency and accountability.
  4. Enhancing Business Competitiveness - The ultimate goal is to create a business-friendly environment to encourage local and foreign investments by removing unnecessary bureaucratic hurdles.

Key Provisions

  1. Processing Time Limits The Act sets clear time limits within which government agencies must act on applications for licenses, permits, certifications, and other services. The law provides the following standard timelines for processing:

    • Simple Transactions: Maximum of 3 working days.
    • Complex Transactions: Maximum of 7 working days.
    • Highly Technical Transactions: Maximum of 20 working days.

    Any application not processed within these periods will be deemed approved by default, provided all required documents have been submitted and all government fees paid.

  2. Zero-Contact Policy

    • A "zero-contact policy" is mandated for the submission of requirements. This means that once an application or request is filed, no further direct contact with the applicant is allowed, unless an inspection is required.
    • This provision is crucial in preventing corruption and ensuring fairness in the processing of permits and other regulatory documents.
  3. Single or Unified Business Application Form

    • The law requires all local government units (LGUs) and national government agencies to implement a single or unified business application form. This form integrates applications for business permits, clearances, and certificates, reducing the need for applicants to fill out multiple documents.
  4. Business One-Stop Shops (BOSS)

    • LGUs are mandated to set up Business One-Stop Shops (BOSS) where all processes related to the application for business permits and licenses are centralized.
    • This makes it easier for businesses to comply with government regulations in a more efficient and organized manner.
  5. Automated or Electronic System

    • Government agencies and LGUs are encouraged to adopt automated systems to reduce processing time and enhance the efficiency of public services.
    • A Philippine Business Databank is established, accessible to all government agencies, where they can verify the legitimacy of businesses to avoid redundant document submissions.
  6. Anti-Red Tape Authority (ARTA)

    • The law establishes the Anti-Red Tape Authority (ARTA) under the Office of the President, which serves as the overseeing body responsible for implementing R.A. No. 11032.
    • ARTA has the power to receive and act on complaints regarding non-compliance with the provisions of the Act. It is also tasked with conducting audits and recommending reforms to streamline government processes.
  7. Penalties for Non-Compliance

    • Government officers and employees who fail to process applications within the prescribed time limits or demand additional fees not stipulated by law will face strict penalties, including:
      • First offense: Administrative liability with a 6-month suspension.
      • Second offense: Administrative and criminal liability, with a penalty of dismissal from public service, perpetual disqualification from holding public office, forfeiture of retirement benefits, and imprisonment of 1 to 6 years.
  8. Streamlined Processes for National Government Agencies

    • National government agencies involved in issuing business permits and licenses, such as the Department of Trade and Industry (DTI), Bureau of Internal Revenue (BIR), and Securities and Exchange Commission (SEC), are required to streamline their processes in line with R.A. No. 11032.
    • These agencies must ensure that their procedures are simplified and that timelines are adhered to strictly.
  9. Judicial Recourse

    • If an applicant believes their rights under the Act have been violated, such as if their request for a permit is unduly delayed, they may take legal action. Courts may issue mandamus orders to compel government offices to comply with the law.

Relationship with the Right to Information under the Bill of Rights

The right to information, enshrined in Section 7, Article III of the 1987 Constitution, grants Filipino citizens the right to access official documents, records, and government information of public interest. R.A. No. 11032 reinforces this constitutional right in several ways:

  1. Enhanced Transparency - By mandating government agencies to act swiftly and disclose clear procedures for business transactions, the public's right to information is given practical effect.
  2. Accountability - The law holds government officials and agencies accountable for delays and inefficiencies, making the process more transparent and reinforcing the right to know.
  3. Data Availability - The establishment of the Philippine Business Databank and the streamlining of documentary requirements reduce the need for businesses to repeatedly submit the same information, thereby promoting ease of access to data by the public.
  4. Public Service Efficiency - The simplification of processes means that government data, forms, and services are more accessible to the public, empowering citizens and businesses with the information they need without unnecessary delays.

Role of Public International Law

While R.A. No. 11032 primarily affects domestic transactions, it has implications for public international law, particularly concerning commitments to international standards on transparency, anti-corruption, and ease of doing business. The Philippines, as a signatory to various international agreements promoting good governance and anti-corruption measures, such as the United Nations Convention against Corruption (UNCAC), aligns its domestic laws with these international principles through acts like R.A. No. 11032.

The law also supports the Philippines' commitments under the World Trade Organization's (WTO) Trade Facilitation Agreement (TFA), which requires member-states to streamline customs procedures and improve transparency to facilitate international trade. By improving the business environment, the Philippines boosts its global competitiveness and complies with its international obligations.

Conclusion

R.A. No. 11032, or the Ease of Doing Business Act, is a vital legislative reform aimed at eliminating red tape and improving government efficiency. Its provisions on streamlined processes, strict deadlines, accountability, and transparency reflect the broader constitutional right to information. Through the enforcement of these provisions, the law supports the Philippines' international commitments to transparency and competitiveness while directly benefiting the domestic business landscape and enhancing public trust in government services.