August 30, 2016
TO: ALL CITY AND MUNICIPAL MAYORS, MEMBERS OF THE SANGGUNIANG PANLUNGSOD AND SANGGUNIANG BAYAN, REGIONAL DIRECTORS OF THE DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT (DILG), THE DEPARTMENT OF TRADE AND INDUSTRY (DTI) AND THE DEPARTMENT OF INFORMATION AND COMMUNICATIONS TECHNOLOGY (DICT), REGIONAL DIRECTORS OF THE BUREAU OF FIRE PROTECTION (BFP), AND OTHERS CONCERNED
SUBJECT: REVISED STANDARDS IN PROCESSING BUSINESS PERMITS AND LICENSES IN ALL CITIES AND MUNICIPALITIES
1.1 Based on the June 2016 monitoring report of the DILG-LGA, more than 1,417 cities and municipalities are compliant and streamlined with the service standards set in 2010. Hence, the BPLS Oversight Committee agreed to further impose stricter performance standards for business permit processing and on regulatory process to further improve the competitiveness ranking of the Philippines in global surveys. A more compelling reason to improve the regulatory processes of the Philippines is to ensure the preparedness of cities and municipalities to more intense global competition that will arise from the 2015 ASEAN Economic Integration.
1.2 Relative to this, the Philippine’s ranked 103rd in the 2016 IFC Ease of Doing Business specifically, for the indicator on “starting a business,” where country’s ranking slipped from 157 in 2015 out of 189 economies.
1.3 While past efforts towards reforming BPLS concentrated on streamlining and/or process re-engineering, the government would like to promote the automation or computerization of the BPLS in all cities and municipalities. Based on the experience of many cities/municipalities, automation is a critical element that will facilitate compliance with the minimum service set in the JMC.
2.1 To comply with President Rodrigo Roa Duterte’s pronouncement during his inaugural speech last June 30, 2016 and State of the Nation Address (SONA) on July 25, 2016 for all government agencies to reduce the requirements and processing time of all government transactions.
2.2 To disseminate a new set of service standards in processing business permit and licenses and guidelines to all cities and municipalities in streamlining the business permits and licensing system (BPLS) to comply with these standards and take action on the call of the new elected President.
2.3 To clarify the roles and responsibilities of the Department of the Interior and Local Government (DILG), Department of Trade and Industry (DTI), Department of Information and Communications Technology (DICT) and the various cities and municipalities and concerned leagues in the country in ensuring the implementation of the revised BPLS standards.
3.0 Legal Compliance
3.1 The Constitution mandates the the government shall promote the quality of life of the people. Towards this end, Section 16 of the Local Government Code of 1991 provides that the local government units shall pursue undertakings to enhance economic prosperity, among other concerns.
3.2 National laws providing requirements/conditions for the establishment/registration/operation of business as well as safety and labor standards.
3.3 Section 2 of Republic Act No. 9485, “Anti-Red Tape Act of 2007” which provides that the State shall establish effective practice aimed at the prevention of graft and corruption in government, and shall likewise take appropriate measure to promote transparency in each agency with regard to the manner of transacting with the public, which shall encompass a program for adoption of simplified procedures that will reduce tape and expedite transactions in government.
3.4 Joint Memorandum Circular No. 1 s 2010, “Guidelines in Implementing Standards in Processing Business Permits and Licenses in all Cities and Municipalities”
3.5 Memorandum Circular 2011-14, Documentary Requirements for a Business Permit.