EODB’s IRR has automatic OK for unacted business papers

By Rea Cu, Business Mirror, Feb 14, 2019

BUSINESS applications will be deemed automatically approved if the government agency handling the application fails to assess it within the prescribed period. This will be a key feature in the proposed implementing rules and regulations (IRR) of the ease of doing business (EODB) law, the Anti-Red Tape Authority (Arta) said.

At a public consultation on the IRR of Republic Act (RA) 11032 and the Philippine Business Databank on Wednesday, Arta OIC Director General Ernesto V. Perez said, “A basic feature is the automatic approval of the application or request of it is not acted upon within the required period or if there is no proper extension in which the applicant is duly notified.”

RA 11032 or the Ease of Doing Business and Efficient Government Service Delivery Act, was signed into law by President Duterte in May 2018. Itaims to reduce red tape among government agencies, as well as the processing time for permits, transactions and applications.

The law mandates a processing time for simple permits of within three working days; complex transactions in seven working days; and highly technical applications in 20 working days.

Perez pointed out that under the proposed IRR, highly technical transactions that require clearances from other government agencies that may need more time beyond 20 days will be allowed provided, a multistage system is undertaken.

The multistage system must not “exceed 40 working days. Initially, 20 working days subject to one extension…”

To notify applicants on extensions in the processing of their permits and transactions, the IRR allows government agencies to use electronic mail (e-mail) or SMS apart from writing to the owner or the business.

“The notice, that is required for an agency to notify the applicant in case of extension, must be done in writing [as] the law requires. In the IRR, we propose that this also include e-mail or SMS because it will be quite impossible for the government agency to notify the applicant who cannot be located. So, the burden is upon the agency to ensure that there is proper notification. So a simple text or e-mail…this is an acceptable form of notification,” he said.

Although the proposed IRR already has a number of salient features, it has yet to be signed by the appointed director general for the Arta. The President has yet to appoint the director general.

RA 11032 has yet to take full effect as authorities have yet to issue its IRR. “While we are preparing for the ground work for the IRR, we are waiting for the President’s appointment for the DG [director general] who will approve the draft IRR,” he added.

The law is also expected to reduce the number of signatories needed to obtain permits and licenses, among other government documents.

Trade Secretary Ramon M. Lopez said last month that President Duterte is expected to appoint soon the Arta director general.

Exporters’ lament

In January, exporters asked the government to stop passing laws that it cannot roll out properly, as they lamented again the delayed issuance of the EODB law’s IRR.

The Philippines—for the second consecutive year—fell by double-digit notches in the World Bank’s index on EODB. The 2019 edition put the country at 124th among 190 economies, down 11 places from the 2018 cycle.

Perez pointed out that with the implementation of the EODB law, the ranking of the Philippines in the index is expected to fall within the top 20 level.

“By year 2022, we shall have improved our ranking to the top 20 percent,” he said.

The Arta falls under the Office of the President, which is mandated to oversee compliance by local and national government agencies with the EODB law.