Know your business law: THE ANTI-RED TAPE ACT

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One of many challenges faced by small businesses in their everyday operations is transacting with government.

Entrepreneurs deal with government to register their business, secure licenses, obtain information, pay taxes and secure exemption from taxes, and apply for assistance such as loans, training, technical assistance, counselling and other business development services.

However, entrepreneurs are reluctant to deal with government for the complicated procedures, time-consuming requirements, and delays normally associated with government programs and other transactions.

This is known as red tape – a practice that causes inefficiency in the delivery of the government services to the public. It is also a major cause of graft and corruption in the country.

The Anti-red Tape Law has been in force since 2007, but is little known to the public.

Here are salient features and provision of the law which everyone, especially business enterprises should know when they deal with government for some reason or another.

1. Government agencies are mandated to improve their system

Section 5 of the act requires all offices and agencies which provide frontline services, to regularly undertake time and motion studies, undergo evaluation and improvement of their transaction systems and procedures and re-engineer the same if necessary to reduce bureaucratic red tape and processing time.

2. Government agencies are tasked to create a Citizen’s Charter

Section 6 of the Anti-Red Tape Act mandates all government agencies to put up information billboards at the main entrance of offices or some other most conspicuous place that clearly indicates the following:

(a) The procedure to obtain a particular service;

(b) The person/s responsible for each step;

(c) The maximum time to conclude the process;

(d) The document/s to be presented by the customer, if necessary;

(e) The amount of fees, if necessary; and

(f) The procedure for filing complaints.

This is known as the Citizen Charter  aimed to guide citizens when they are transacting or securing the services of the government agencies.

3. The law prescribes processes for accessing frontline services

Frontline services refer to the processes or transactions between clients and government offices involving applications for any privilege, right, permit, reward, license, concession, or for any modification, renewal or extension of the enumerated applications and or requests which are acted upon in the ordinary course of business of the office concerned.

In section 8 of the Act, the law mandates all government agencies and offices to adopt the following instructions for Accessing Frontline Services:

(a) Acceptance of Applications and Request –

(1) All officers or employees shall accept written applications, requests, and/or documents being submitted by clients of the office or agencies.

(2) The responsible officer or employee shall acknowledge receipt of such application and/or request by writing or printing clearly thereon his/her name, the unit where he/she is connected with, and the time and date of receipt.

(3) The receiving officer or employee shall perform a preliminary assessment of the request so as to promote a more expeditious action on requests.

(b) Action of Offices –

(1) All applications and/or requests submitted shall be acted upon by the assigned officer or employee during the period stated in the Citizen’s Charter which shall not be longer than five working days in the case of simple transactions and ten (10) working days in the case of complex transactions from the date the request or application was received. Depending on the nature of the frontline services requested or the mandate of the office or agency under unusual circumstances, the maximum time prescribed above may be extended. For the extension due to nature of frontline services or the mandate of the office or agency concerned the period for the delivery of frontline services shall be indicated in the Citizen’s Charter. The office or agency concerned shall notify the requesting party in writing of the reason for the extension and the final date of release for the extension and the final date of release of the frontline service/s requested.

(2) No application or request shall be returned to the client without appropriate action. In case an application or request is disapproved, the officer or employee who rendered the decision shall send a formal notice to the client within five working days from the receipt of the request and/or application, stating therein the reason for the disapproval including a list of specific requirement/s which the client failed to submit.

(c) Denial of Request for Access to Government Service – Any denial of request for access to government service shall be fully explained in writing, stating the name of the person making the denial and the grounds upon which such denial is based. Any denial of request is deemed to have been made with the permission or clearance from the highest authority having jurisdiction over the government office or agency concerned.

(d) Limitation of Signatories – The number of signatories in any document shall be limited to a maximum of five signatures which shall represent officers directly supervising the office or agency concerned.

(e) Adoption of Working Schedules to Serve Clients – Heads of offices and agencies which render frontline services shall adopt appropriate working schedules to ensure that all clients who are within their premises prior to the end of official working hours are attended to and served even during lunch break and after regular working hours.

(f) Identification Card – All employees transacting with the public shall be provided with an official identification card which should be visibly worn during office hours.

(g) Establishment of Public Assistance/Complaints Desk – Each office or agency shall establish a public assistance/complaints desk in all their offices.

If you are going to a government office to do any transaction with their personnel, you have to always keep these things above in mind.

All of the government offices must have a public assistance/complaints desk and all personnel must have identification card. Also remember that the officer in charge should accept your written application, request and documents, especially if they are already complete, and he or she should acknowledge receipt of your documents for your proof of submission.

4. The Act provides for automatic extension of permits and licenses

According to Section 9 of the Act, if a government office or agency fails to act on an application and or request for renewal of a license, permit or authority subject for renewal within the prescribed period, said permit, license or authority shall automatically be extended until a decision or resolution is rendered on the application for renewal: Provided, That the automatic extension shall not apply when the permit, license, or authority covers activities which pose danger to public health, public safety, public morals or to public policy including, but not limited to, natural resource extraction activities.

5. The law mandates government agencies to establish a feedback mechanism

Section 10 of the Act states that all offices and agencies providing frontline services shall be subjected to a Report Card Survey to be initiated by the Civil Service Commission, in coordination with the Development Academy of the Philippines, which shall be used to obtain feedback on how provisions in the Citizen’s Charter are being followed and how the agency is performing.

The Report Card Survey will also be used to detect information and estimates of hidden costs incurred by clients to access frontline services which may include bribes and payment to fixers.

6. The Act punishes fixers and government personnel who violates the law

The Anti-red tape law in the Philippines punishes fixers and violators of the Act.

Source: businesstips.ph/the-anti-red-tape-law-in-the-philippines

Photo: From eu4real.org