Directing the Submission of a Citizen's Charter and Compliance with the Automation of Business Permitting and Licensing System

November 22, 2021

MEMORANDUM ORDER NO. 57

DIRECTING THE SUBMISSION OF A CITIZEN'S CHARTER AND COMPLIANCE WITH THE AUTOMATION OF BUSINESS PERMITTING AND LICENSING SYSTEM

WHEREAS, pursuant to Section 6 of Republic Act (RA) No. 9485 or the "Anti-Red Tape Act of 2007," as amended by RA No. 11032 or the "Ease of Doing Business and Efficient Government Service Delivery Act of 2018," all government agencies, including departments, bureaus, offices and instrumentalities, government-owned or -controlled corporations (GOCCs), government financial institutions (GFIs), state universities and colleges (SUCs), and local government units (LGUs) shall set up their respective most current and updated service standards to be known as the Citizen's Charter;

WHEREAS, under Section 11 (c) of RA No. 9485, as amended, all cities and municipalities are mandated to automate their business permitting and licensing system or set up an electronic Business One Stop Shop (BOSS) for a more efficient business registration process within a period of three (3) years upon the effectivity of the law or until 17 June 2021;

WHEREAS, Section 11 (c) of RA No. 9485, as amended, also directs the Department of Information and Communications Technology (DICT) to make available to all LGUs the software for the computerization of the business permit and licensing system, and, in coordination with the Department of Trade and Industry and the Department of the Interior and Local Government (DTI), to provide technical assistance in the planning and implementation of a computerized or software-enabled business permitting and licensing system;

WHEREAS, Administrative Order (AO) No. 23 (s. 2020) directs all covered entities to eliminate overregulation by retaining only such steps, procedures and requirements in their respective Citizen's Charters which are necessary to fulfill their legal mandates and policy objectives;

WHEREAS, the Anti-Red Tape Authority (ARTA) issued Memorandum Circular No. 2021-03 dated 31 March 2021, as a final notice to enjoin compliance of all covered entities which have not submitted their Citizen's Charter and the corresponding Certificate of Compliance to the ARTA;

WHEREAS, the ARTA also issued Memorandum Circular No. 2021-05 dated 15 June 2021, which provides for the mechanism by which cities and municipalities are to report their compliance with the permitting and licensing system automation requirement under Section 11 (c) of RA No. 9485, as amended; and

WHEREAS, the ARTA has reported that there are still a substantial number of covered entities which have yet to submit their Citizen's Charter and comply with the permitting and licensing system automation requirement, in violation of the law, and despite repeated notices issued by the ARTA;

NOW, THEREFORE, the following are hereby ordered:

SECTION 1. Coverage. — Executive departments, agencies and instrumentalities of the national government, whether local or abroad, including GOCCs, GFIs, SUCs, and LGUs covered under Section 3 of RA No. 9485, as amended ("covered entities").

SECTION 2. Submission of Citizen's Charter. — All covered entities which have not submitted their respective Citizen's Charters since the enactment of RA No. 11032 are directed to submit the same with the corresponding Certificate of Compliance to the ARTA within fifteen (15) working days from the effectivity of this Order. The Citizen's Charter should also be compliant with AO No. 23.

The DILG is hereby directed to assist the ARTA in strictly enforcing this directive.

SECTION 3. Automation of Business Permitting and Licensing System. — To ensure compliance with Section 11 (c) of RA No. 9485, as amended, the ARTA, in coordination with the DTI, DICT and the DILG, shall assist local governments that have yet to set-up their respective BOSS or automate their permitting and licensing system. The Leagues of LGUs, pursuant to their mandate under RA No. 7160 or the "Local Government Code of 1991," to assist the National Government in implementing policies, programs and projects affecting local governments, shall enjoin concerned local governments to comply with this requirement.

All concerned local chief executives shall, until the completion of their system automation, submit a progress report to the ARTA and the DILG regarding their compliance with Section 11 (c) of RA No. 9485, as amended. The ARTA shall submit a report to the Office of the President on the compliance of the concerned LGUs.

SECTION 4. Sanctions. — Non-compliance with the provisions of this Order by national or LGU officials and personnel shall be proceeded against in accordance with civil service laws, rules and regulations, and relevant provisions of RA No. 7160, as amended. The ARTA and the DILG shall jointly report to the Office of the President all such actions taken pursuant to this provision.

SECTION 5. Effectivity. — This Order shall be effective immediately upon publication in the Official Gazette or in a newspaper of general circulation.

Manila, November 22, 2021.

 

Published in the Official Gazette, Vol. 117, No. 48, p. 11151 on November 29, 2021.