G. ELECTRONIC COMMERCE market forces.

Participation in e-commerce
shall be pursued through an open and fair
ACT competitive market.
(RA No. 8792)
3) International Coordination and
• The State recognizes: Harmonization – E-commerce is global by
nature. Government policies that affect e-
a) the vital role of information and commerce will be internationally coordinated
communications technology (ICT) in nation- and compatible and will facilitate interoperability
building; within an international, voluntary and
b) the need to create an information-friendly consensus-based environment for standards
environment which supports and ensures the setting.
availability, diversity and affordability of ICT
products and services; 4) Neutral Tax Treatment – Transactions
c) the primary responsibility of the private sector conducted using e-commerce should receive
in contributing investments and services in neutral tax treatment in comparison to
telecommunications and information transactions using non-electronic means and
technology; taxation of e-commerce shall be administered in
d) the need to develop, with appropriate training the least burdensome manner.
programs and institutional policy changes,
human resources for the information technology 5) Protection of Users – The protection of
age, a labor force skilled in the use of ICT and a users, in particular with regard to privacy,
population capable of operating and utilizing confidentiality, anonymity and content control
electronic appliances and computers; shall be pursued through policies driven by
e) its obligation to facilitate the transfer and choice, individual empowerment, industry-led
promotion of technology; solutions. It shall be in accordance with
f) to ensure network security, connectivity and applicable laws. Subject to such laws, business
neutrality of technology for the national benefit; should make available to consumers and,
and the need to marshal, organize and deploy where appropriate, business users the means
national information infrastructures, comprising to exercise choice with respect to privacy,
in both telecommunications network and confidentiality, content control and, under
strategic information services, including their appropriate circumstances, anonymity.
interconnection to the global information
networks, with the necessary and appropriate 6) Electronic Commerce Awareness –
legal, financial, diplomatic and technical Government and the private sector will inform
framework, systems and facilities. (S2) society, both individual consumers and
businesses, about the potentials of e-commerce
E.1. PRINCIPLES and its impact on social and economic
structures.
• The following principles are adopted as
Government policy on e-commerce: 7) Small and Medium-Sized Enterprises –
Government will provide small and
1) Role of the Government – Government mediumsized enterprises (SMEs) with
intervention, when required, shall promote a information and education relevant to
stable legal environment, allow a fair allocation opportunities provided by global e-commerce.
of scarce resources and protect public interest. Government will create an environment that is
Such intervention shall be no more than is conducive to private sector investment in
essential and should be clear, transparent, information technologies and encourage capital
objective, non-discriminatory, proportional, access for SMEs.
flexible, and technologically neutral.
Mechanisms for private sector input and 8) Skills Development – Government shall
involvement in policy making shall be promoted enable workers to share in the new and
and widely used. different employment generated by e-
commerce. In this regard, the Government shall
2) Role of the Private Sector – The continue to promote both formal and non-formal
development of e-commerce shall be led skills-development programs.
primarily by the private sector in response to
9) Government as a Model User – data, figures, symbols or other modes of written
Government shall utilize new electronic means expression according to mathematical and
to deliver core public services in order to logical rules or of performing any one or more
demonstrate the benefits derived therefrom and of these functions.
to promote the use of such means. In particular,
the Government Information System Plan • Electronic Data Message (EDM)–
(GISP), which is expected to include, but not be information generated, sent, received or stored
limited to, on-line public information and cultural by electronic, optical or similar means.
resources, databases for health services, web
sites at local, regional and national levels and • Information and Communications System –
public libraries and databases, where a system intended for and capable of
appropriate, will be implemented in accordance generating, sending, receiving, storing, or
with the provisions of the Act and RPWEB. otherwise processing EDM/ED and includes the
computer system or other similar device by or in
10) Convergence – Convergence of which data is recorded or stored and any
technologies is crucial to e-commerce and will procedures related to the recording or storage
be supported by appropriate government of EDM/ED.
policies. Government will work closely with
business in preparing for and reacting to • Electronic Signature (ES)– any distinctive
changes caused by convergence. mark, characteristic and/or sound in electronic
form, representing the identity of a person and
11) Domain Name System – The Government attached to or logically associated with the
supports initiatives to ensure that Internet users EDM/ED or any methodology or procedures
will have a sufficient voice in the governance of employed or adopted by a person and executed
the domain name system. or adopted by such person with the intention of
authenticating or approving an EDM/ED.
12) Access to Public Records – Government
shall provide equal and transparent access to • Electronic Document (ED)– information or
public domain information. the representation of information, data, figures,
symbols or other modes of written expression,
13) Dispute Mechanisms – Government described or however represented, by which a
encourages the use of self-regulatory extra- right is established or an obligation
judicial dispute settlement mechanisms such as extinguished, or by which a fact may be prove
arbitration and mediation as an effective way of and affirmed, which is receive, recorded,
resolving e-commerce disputes. (S3, IRR) transmitted, stored, processed, retrieved or
produced electronically.
E.2. APPLICATION
• Electronic Key – a secret code which
• This Act shall apply to any kind of EDM/ED secures and defends sensitive information that
used in the context of commercial and cross over public channels into a form
noncommercial activities to include domestic decipherable only with a matching electronic
and international dealings, transactions, key.
arrangements, agreements contracts and
exchanges and storage of information. (S4) • Intermediary – a person who in behalf of
another person and with respect to a particular
E.3. DEFINITION OF TERMS ED sends, receives and/or stores provides
other services in respect of that EDM/ED.
• Addressee – a person who is intended by the
originator to receive the EDM/ED. The term • Originator – a person by whom, or on whose
does not include a person acting as an behalf, the ED purports to have been created,
intermediary with respect to that EDM/ED. generated and/or sent. The term does not
include a person acting as an intermediary with
• Computer - any device or apparatus which, respect to that ED.
by electronic, electro-mechanical, or magnetic
impulse, or by other means, is capable of • Service provider – a provider of:
receiving, recording, transmitting, storing, 1) On-line services or network access or the
processing, retrieving, or producing information, operator of facilities therefor, including entities
offering the transmission, routing, or providing obligation or whether the law simply provides
of connections for online communications, consequences for the document not being
digital or otherwise, between or among points presented or retained in its original from.
specified by a user, of ED of the user's 3) Where the law requires that a document be
choosing; or presented or retained in its original form, that
2) The necessary technical means by which ED requirement is met by an e-doc if –
of an originator may be stored and made a) There exists a reliable assurance as to
accessible to designated or undesignated third the integrity of the document from the time
party. when it was first generated in its final form; and
b) That doc is capable of being displayed
Such service providers shall to the person to whom it is to be presented:
1) have no authority Provided, That no provision of this Act shall
a) to modify or alter the content of the apply to vary any and all requirements of
EDM/ED received or existing laws on formalities required in the
b) to make any entry therein on behalf execution of docs for their validity.
of the originator, addressee or any third party
unless specifically authorized to do so, and ✓ For evidentiary purposes, an e-doc shall be
the functional equivalent of a written document
2) retain the ED in accordance with the specific under existing laws.
request or as necessary for the purpose of
✓ This Act does not modify any statutory rule
performing the services it was engaged to
relating to admissibility of EDM or e-docs,
perform. (S5)
except the rules relating to authentication and
best evidence. (S7)
E.4. LEGAL RECOGNITION AND
COMMUNICATION OF ELECTRONIC DATA
• Legal Recognition of ES - An ES on the ED
MESSAGES AND ELECTRONIC
shall be equivalent to the signature of a person
DOCUMENTS
on a written document if that signature
LEGAL RECOGNITION OF ELECTRONIC
1) is an electronic signature; and,
WRITING OR EDM/ED
2) is proved by showing that a prescribed
• Legal Recognition of EDM - Information shall
procedure, not alterable by the parties
not be denied legal effect, validity or
interested in the e-doc, existed under which –
enforceability solely on the grounds that it is in
the data message purporting to give rise to
a) A method is used to identify the party
such legal effect, or that it is merely referred to
sought to be bound and to indicate said party's
in that EDM. (S6)
access to the ED necessary for his consent or
approval through the ES;
• Legal Recognition of ED – ED shall have the
legal effect, validity or enforceability as any
b) Said method is reliable and appropriate
other document or legal writing, and –
for the purpose for which the ED was generated
1) Where the law requires a doc to be in writing,
or communicated, in the light of all
that requirement is met by an ED if the said ED
circumstances, including any relevant
a) maintains its integrity and reliability and
agreement;
b) can be authenticated so as to be usable
for subsequent reference, in that – c) It is necessary for the party sought to be
i. ED has remained complete and bound, in or order to proceed further with the
unaltered, apart from the addition of any transaction, to have executed or provided the
endorsement and any authorized change, or ES; and
any change which arises in the normal course
of communication, storage and display; and d) The other party is authorized and
ii. ED is reliable in the light of the enabled to verify the ES and to make the
purpose for which it was generated and in the decision to proceed with the transaction
light of all relevant circumstances. authenticated by the same. (S8)

2) Paragraph (a) applies whether the

requirement therein is in the form of an
• Presumption Relating to ES - In any and validating a claimed identity of a user,
proceedings involving an ES, it shall be device, or another entity is an information or
presumed that communication system, among other ways, as
follows;
1) ES is the signature of the person to whom it
correlates; and 1) ES shall be authenticated by proof than a
letter, character, number or other symbol in
2) ES was affixed by that person with intention electronic form representing the persons named
of signing or approving the e-doc unless in and attached to or logically associated with
an EDM, ED, or that the appropriate
a) the person relying on the electronically methodology or security procedures, when
signed ED knows or has noticed of defects in or applicable, were employed or adopted by such
unreliability of the signature or person, with the intention of authenticating or
approving in an EDM/ED;
b) reliance on the ES is not reasonable
under the circumstances. (S9) 2) EDM/ED shall be authenticated by proof that
an appropriate security procedure, when
• Original Documents – applicable was adopted and employed for the
purpose of
1) Where the law requires information to be
presented or retained in its original form, that a) verifying the originator of an EDM/ED, or
requirement is met by an EDM/ED if;
b) detecting error or alteration in the
a) the integrity of the information from the communication, content or storage of an
time when it was first generated in its final form, EDM/ED from a specific point, which, using
as an EDM/ED is shown by evidence aliunde or algorithm or codes, identifying words or
otherwise; and numbers, encryptions, answers back or
acknowledgement procedures, or similar
b) where it is required that information be security devices.
resented, that the information is capable of
being displayed to the person to whom it is to The SC may adopt such other authentication
be presented. procedures, including the use of electronic
notarization systems as necessary and
2) Par. (1) applies whether the requirement advisable, as well as the certificate of
therein is in the form of an obligation or whether authentication on printed or hard copies of the
the law simply provides consequences for the EDM/ED by electronic notaries, service
information not being presented or retained in providers and other duly recognized or
its original form. appointed certification authorities.

3) For the purpose of subparagraph (a) of par. The person seeking to introduce an EDM/ED in
(1): any legal proceeding has the burden of proving
its authenticity by evidence capable of
a) the criteria for assessing integrity shall supporting a finding that the EDM/ED is what
be whether the information has remained the person claims it be. In the absence of
complete and unaltered, apart from the addition evidence to the contrary, the integrity of the
of any endorsement and any change which information and communication system in which
arises in the normal course of communication, an EDM/ED is recorded or stored may be
storage and display; and established in any legal proceeding

b) the standard of reliability required shall 1) By evidence that

be assessed in the light of purpose for which
the information was generated and in the light a) at all material times the information and
of all the relevant cases. (S10) communication system or other similar device
was operating in a manner that did not affect
• Authentication of EDM and ED - Until the the integrity of the EDM/ED, and
Supreme Court (SC) by appropriate rules shall
have so provided, ED, EDM and ES, shall be
authenticated by demonstrating, substantiating
 b) there are no other reasonable grounds 2) The requirement above is satisfied by using
to doubt the integrity of the information and the services of a third party, provided that the
communication system, conditions set forth are met. (S13)

2) By showing that the EDM/ED was recorded • Proof by Affidavit - The matters referred to
or stored by a party to the proceedings who is on admissibility and on the presumption of
adverse in interest to the party using it; or integrity, may be presumed to have been
established by an affidavit given to the best of
3) By showing that the EDM/ED was recorded the deponent's knowledge subject to the rights
or stored in the usual and ordinary course of of parties in interest as defined in the following
business by a person who is not a party to the section. (S14)
proceedings and who did not act under the
control of the party using the record. (S11 • Cross – Examination

• Admissibility and Evidential Weight of 1) A deponent of an affidavit referred to in Sec.

EDM/ED- In any legal proceedings, nothing in 14 that has been introduced in evidence may
the application of the rules on evidence shall be cross-examined as of right by a party to the
deny the admissibility of an EDM/ED in proceedings who is adverse in interest to the
evidence – party who has introduced the affidavit or has
caused the affidavit to be introduced.
1) On the sole ground that it is in electronic
form; or 2) Any party to the proceedings has the right to
cross-examine a person who is not a party to
2) On the ground that it is not in the standard the proceedings and who did not act under the
written form, and the EDM/ED meeting, and control of the party using the record proving that
complying with the requirements under Sec. 6 the EDM/ED was recorded or stored in the
or 7 hereof shall be the best evidence of the usual and ordinary course of business. (S15)
agreement and transaction contained therein.
COMMUNICATION OF EDM/ED
In assessing the evidential weight of an
EDM/ED, (1) the reliability of the manner in • Formation of Validity of Electronic
which it was generated, stored or Contracts
communicated, (2) the reliability of the manner
in which its originator was identified, and (3) 1) Except as otherwise agreed by the parties,
other relevant factors shall be given due regard. (1) an offer, (2) the acceptance of an offer and
(S12) (3) such other elements required under existing
laws for the formation of contracts may be
• Retention of EDM/ED - Notwithstanding any expressed in, demonstrated and proved by
provision of law, rule or regulation to the means of EDM/ED and no contract shall be
contrary – denied validity or enforceability on the sole
ground that it is in the form of an EDM/ED, or
1) The requirement in any provision of law that that any or all of the elements required under
certain documents be retained in their original existing laws for the formation of contracts is
form is satisfied by retaining them in the form of expressed, demonstrated and proved by means
an EDM/ED which – of EDM/ED.

a) Remains accessible so as to be usable 2) Electronic transactions made through

for subsequent reference; networking among banks, or linkages thereof
with other entities or networks, and vice versa:
b) Is retained in the format in which it was
generated, sent or received, or in a format a) shall be deemed consummated upon
which can be demonstrated to accurately the actual dispensing of cash or the debit of one
represent the EDM/ED generated, sent or account and the corresponding credit to
received; another, whether such transaction is initiated by
the depositor or by an authorized collecting
c) Enables the identification of its originator party.
and addressee, as well as the determination of
the date and the time it was sent or received.
 b) the obligation of one bank, entity, or of used any agreed procedure, that the
person similarly situated to another arising EDM/ED was not that of the originator.
therefrom shall be considered absolute and
shall not be subjected to the process of 5) Where an EDM/ED is that of the originator or
preference of credits. (S16) is deemed to be that of the originator, or the
addressee is entitled to act on that assumption,
• Recognition by Parties of EDM/ED - As then, as between the originator and the
between the originator and the addressee of an addressee, the addressee is entitled to regard
EDM/ED, a declaration of will or other the EDM/ED as received as being what the
statement shall not be denied legal effect, originator intended to send, and to act on that
validity or enforceability solely on the ground assumption. The addressee is not so entitled
that it is in the form of an EDM. (S17) when it knew or should have known, had it
exercised treasonable care or used any agreed
• Attribution of EDM – procedure, that the transmission resulted in any
error in the EDM/ED as received.
1) An EDM/ED is that of the originator if it was
sent by the originator himself. 6) Addressee is entitled to regard each
EDM/ED received as a separate EDM/ED and
2) Between the originator and the addressee – to act on that assumption, except to the extent
EDM/ED is the originator if it was sent: that (a) it duplicates another EDM/ED and (b)
the addressee knew or should have known, had
a) by a person who had the authority to act it exercised reasonable care or used any
on behalf of the originator with respect to that agreed procedure, that the EDM/ED was a
EDM/ED; or duplicate. (S18)

b) by an information system programmed • Error on EDM/ED- The addressee is entitled

by, or on behalf of the originator to operate to regard EDM/ED received as that which the
automatically. originator intended to send, and to act on that
assumption, unless the addressee knew or
3) Between the originator and the addressee – should have known, had the addressee
addressee is entitled to regard an EDM/ED as exercised reasonable care or used the
being that of the originator, and to act on that appropriate procedure –
assumption, if:
1) That the transmission resulted in any error
a) in order to ascertain whether the therein or in the e-doc when the EDM/ED
EDM/ED was that of the originator, the enters the designated information system, or
addressee properly applied a procedure
previously agreed to by originator for that 2) That EDM/ED is sent to an information
purpose; or system which is not so designated by the
addressee for the purposes. (S19)
b) the EDM/ED as received by the
addressee resulted from the actions of a person • Agreement on Acknowledgement of
whose relationship with the originator or with Receipt of EDM/ED
any agent of the originator enabled that person
to gain access to a method used by the GR: No acknowledgment of receipt is
originator to identify EDM as his own. necessary XPNs:

4) Above does not apply: 1) If the parties agree to it

a) as of the time when the addressee has 2) Originator requested in the EDM/ED
both received notice from the originator that the
EDM/ED is not that of the originator, and has Modes of acknowledgment when required:
reasonable time to act accordingly; or
1) Agreement as to particular method – to be
b) in a case within par. (3) sub-par. (b), at followed
any time when the addressee knew or should
have known, had it exercised reasonable care 2) No agreement as to particular method:
 a) Any communication by the addressee • Place of Dispatch and Receipt of EDM/ED -
Unless otherwise agreed between the originator
b) Any conduct of the addressee sufficient and the addressee, an EDM/ED is deemed to
to indicate the receipt to the originator. be 1) dispatched at the place where the
originator has its place of business and
Instances when the originator can regard non-
receipt since there was no acknowledgment: 2) received at the place where the addressee
has its place of business.
1) Where the originator stated the effect or
significance of acknowledgment or the ED is This rule shall apply even if the originator or
conditional upon receipt. addressee had used a laptop other portable
device to transmit or received his EDM/ED. This
2) No statement as to effect or significance – rule shall also apply to determine the tax situs
originator gave notice stating that no of such transaction.
acknowledgement has been received and
specifying a reasonable time by which For the purpose hereof –
acknowledgment is to be received, and no
acknowledgment is received within such 1) If the originator or addressee has more than
reasonable time. (S20) one place of business, the place of business is
that which has the closest relationship to the
• Time of Dispatch of EDM/ED - Unless underlying transaction or, where there is no
otherwise agreed between the originator and underlying transaction, the principal place of
the addressee, the dispatch of an EDM/ED business.
occurs when it enters an information system
outside the control of the originator or of the 2) If the originator or the addressee does not
person who sent the EDM/ED on behalf of the have a place of business, reference is to be
originator. (S21) made to its habitual residence; or

• Time of Receipt of EDM/ED - Unless 3) The "usual place of residence" in relation to a

otherwise agreed between the originator and body corporate, means the place where it is
the addressee, the time of receipt of an incorporated or otherwise legally constituted.
EDM/ED is as follows: (S23)

1) If the addressee has designated an • Choice of Security Methods - Subject to

information system for the purpose of receiving applicable laws and /or rules and guidelines
EDM/ED, receipt occurs at the time when the promulgated by the DTI with other appropriate
EDM/ED enters the designated information government agencies, parties to any electronic
system: Provide, however, that if the originator transaction shall be free to:
and the addressee are both participants in the
designated information system, receipt occurs 1) determine the type of level of EDM/ED
at the time when the EDM/ED is retrieved by security needed, and
the addressee;
2) to select and use or implement appropriate
2) If the EDM/ED is sent to an information technological methods that suit their need.
system of the addressee that is not the (S24)
designated information system, receipt occurs
at the time when the EDM/ED is retrieved by
the addressee;

3) If the addressee has not designated an

information system, receipt occurs when the
EDM/ED enters an information system of the
addressee.

These rules apply notwithstanding that the

place where the information system is located
may be different from the place where the
EDM/ED is deemed to be received. (S22)
E.5. ELECTRONIC COMMERCE IN E.6. ELECTRONIC TRANSACTIONS IN
CARRIAGE OF GOODS GOVERNMENT

• Actions Related to Contracts of Carriage of • Government Use of EDM, ED and ES - All

Goods departments, bureaus, offices and agencies of
the government, as well as all GOCCs, that
• Transport Documents pursuant to law require or accept the filling of
documents, require that documents be created,
1) Where the law requires that any action or retained and/or submitted, issue permits,
referred to contract of carriage of goods be licenses or certificates of registration or
carried out in writing or by using a paper approval, or provide for the method and manner
document, that requirement is met if the action of payment or settlement of fees and other
is carried out by using one or more EDM/ED. obligations to the government, shall –

2) Paragraph (1) applies whether the 1) accept the creation, filing or retention of such
requirement there in is in the form of an documents in the form of EDM/ED;
obligation or whether the law simply provides
consequences for failing either to carry out the 2) issue permits, licenses, or approval in the
action in writing or to use a paper document. form of EDM/ED;

3) If (a) a right is to be granted to, or (b) an 3) require and/or accept payments, and issue
obligation is to be acquired by, one person and receipts acknowledging such payments,
no person, and if the law requires that, in order through systems using EDM/ED; or
to effect this, the right or obligation must be
conveyed to that person by the transfer, or use 4) transact the government business and/or
of, a paper document, that requirement is met if perform governmental functions using EDM/ED,
the right or obligation is conveyed by using one and for the purpose, are authorized to adopt
or more EDM/ED unique; and promulgate, after appropriate public
hearing and with due publication in newspapers
4) For the purposes of paragraph (3), the of general circulation, the appropriate rules,
standard of reliability required shall be regulations, or guidelines, to, among others,
assessed in the light of the purpose for which specify –
the right or obligation was conveyed and in the
light of all the circumstances, including any a) the manner and format in which such
relevant agreement. EDM/ED shall be filed, created, retained or
issued;
5) Where one or more EDM/ED are used to
effect any action in subparagraphs (f) and (g) of b) where and when such EDM/ED have to
Sec. 25, no paper document used to effect any signed, the use of an ED, the type of ES
such action is valid unless the use of EDM/ED required;
has been terminated and replaced by the used
of paper documents. A paper document issued c) the format of an EDM/ED and the
in these circumstances shall contain a manner the ES shall be affixed to the EDM/ED;
statement of such termination. The replacement
of the EDM/ED by paper documents shall not d) the control processes and procedures
affect the rights or obligation of the parties as appropriate to ensure adequate integrity,
involved. security and confidentiality of EDM/ED or
records of payments;
6) If a rule of laws is compulsorily applicable to
a contract of carriage of goods which is in, or is e) other attributes required to EDM/ED or
evidenced by, a paper document, that rule shall payments; and
not be inapplicable to such a contract of
carriage of goods which is evidenced by one or f) the full or limited use of the documents
more EDM/ED by reason of the fact that the and papers for compliance with the government
contract is evidenced by such EDM/ED instead requirements: Provided, that this Act shall be
of by a paper document. (S26) itself mandate any department of the
government, organ of state or statutory
corporation to accept or issue any document in
the form of EDM/ED upon the adoption, limited to, collection or preparation of a number
promulgation and publication of the appropriate of documents, submission to national and local
rules, regulations or guidelines. (S27) government authorities, approval of application
submitted, and receipt of a formal certificate or
certificates, permits, licenses which include
primary and secondary, clearances and such
similar authorization or documents which confer
H. EASE OF DOING BUSINESS eligibility to operate or continue to operate as a
legitimate business.
AND EFFICIENT DELIVERY OF
GOVERNMENT SERVICE • Complex transactions – applications or
requests submitted by applicants or requesting
DELIVERY ACT parties of a government office which
(RA No. 9485, as amended by RA necessitate evaluation in the resolution of
No. 11032) complicated issues by an officer or employee of
said government office, such transactions to be
H.1. POLICY, CONSTRUCTION AND determined by the office concerned.
INTERPRETATION
• Fixer – any individual whether or not officially
• It is policy of the State to promote integrity, involved in the operation of a government office
accountability, proper management of public or agency who has access to people working
affairs and public property as well as to therein, and whether or not in collusion with
establish effective practices, aimed at efficient them, facilitates speedy completion of
turnaround of the delivery of government transactions for pecuniary gain or any other
services and the prevention of graft and advantage or consideration.
corruption in government.
• Government service – the process or
The State shall maintain honesty and transaction between applicants or requesting
responsibility among its public officials and Ees, parties and government offices or agencies
and shall take appropriate measures to promote involving applications for any privilege, right,
transparency in each agency with regard to the reward, license, clearance, permit or
manner of transacting with the public, which authorization, concession, of for any
shall encompass a program for the adoption of modification, renewal or extension of the
simplified requirements and procedures that will enumerated applications or requests which are
reduce red tape and expedite business and acted upon in the ordinary course of business
nonbusiness related transactions in of the agency or office concerned
government. (s2)
• Highly technical application – an application
H.2. DEFINITION OF TERMS which requires the use of technical knowledge,
specialized skills and/or training in the
• Action – the written approval or disapproval processing and/or evaluation thereof.
made by a government office or agency on the
application or request submitted by an applicant • Nonbusiness transactions – all other
or requesting party for processing. government transactions not falling under Sec.
4 (c)
• Business One Stop Shop (BOSS) – a single
common site or location, or a single online • Officer or employee – a person employed in
website or portal designated for the Business a government office or agency required to
Permit and Licensing System (BPLS) of an perform specific duties and responsibilities
LGU to receive and process applications, related to the application or request submitted
receive payments, and issue approved by an applicant or requesting party for
licenses, clearances, permits, or authorizations. processing.

• Business-related transactions – a set of • Processing time – the time consumed by an

regulatory requirements that a business entity LGU or national government agency (NGA)
must comply with to engage, operate or from the receipt of an application or request
continue to operate a business, such as, but not with complete requirements, accompanying
documents and payment of fees to the issuance repeal of the same if deemed outdated,
of certification or such similar documents redundant, and adds undue regulatory burden
approving or disapproving an application or to the transacting public.
request.
2) All proposed regulations of government
• Red tape – any regulation, rule, or agencies shall undergo regulatory impact
administrative procedure or system that is assessment to establish if the proposed
ineffective or detrimental in achieving its regulation does not add undue regulatory
intended objectives and, as a result, produces burden and cost to these agencies and the
slow, suboptimal, and undesirable social applicants or requesting parties: Provided, That
outcomes. when necessary, any proposed regulation may
undergo pilot implementation to assess
• Regulation – any legal instrument that gives regulatory impact.
effect to a government policy intervention and
includes licensing, imposing information 3) All LGUs and NGAs are directed to
obligation, compliance to standards or payment initiate review of existing policies and
of any form of fee, levy, charge or any other operations and commence with the
statutory and regulatory requirements reengineering of their systems and procedures
necessary to carry out activity. in compliance with the provisions of this Act,
pending the approval of the IRRs thereof. (s5)
• Simple transactions – applications or
requests submitted by applicants or requesting H.5. CITIZEN’S CHARTER
parties of a government office or agency which
only require ministerial actions on the part of • All government agencies including
the public officer or employee, or that which departments, bureaus, offices, instrumentalities,
present only inconsequential issues for the or GOCCs, or LGUs shall set up their
resolution by an officer or employee of said respective most current and updated service
government. (s4) standards to be known as the Citizen’s Charter
in the form of information billboards which shall
H.3. COVERAGE AND SCOPE be posted at the main entrance of offices or at
the most conspicuous place, in their respective
• This Act shall apply to all government offices websites and in the form of published materials
and agencies including LGUs, GOCCs and written either in English, Filipino, or in the local
other government instrumentalities, whether dialect, that detail:
located in the Philippines or abroad, that
provide services covering business and a) Comprehensive and uniform checklist of
nonbusiness related transactions. (s3) requirements for each type of
application/request;
H.4. REENGINEERING OF SYSTEMS AND
PROCEDURES b) Procedure to obtain a particular service;

• All offices and agencies which provide c) Person/s responsible for each step;
government services are mandated to regularly
undertake cost compliance analysis, time and d) Maximum time to conclude the process;
motion studies, undergo evaluation and
improvement of their transaction systems and e) Document/s to be presented by the applicant
procedures and reengineer the same if deemed or requesting party, if necessary;
necessary to reduce bureaucratic red tape and
processing time. f) Amount of fees, if necessary; and

1) The Anti-Red Tape Authority (the g) Procedure for filing complaints. (s6)
government agency that is attached to the
Office of the President and that is entrusted to H.6. ACCESSING GOVERNMENT SERVICES
ensure the attainment of this law) shall • The following shall adopted by all government
coordinate with all government offices in the offices and agencies:
review of existing laws, executive issuances
and local ordinances, and recommend the a) Acceptance of Applications or Requests
 1) All officers or Ees shall accept written Complex transactions – 7 WD from date of
applications, requests, and/or docs being applications or receipt
submitted by applicants or requesting parties of requests submitted by
the offices or agencies. applicants or
requesting parties of a
2) The receiving officer or Ee shall government office
which necessitate
evaluation in the
i. perform a preliminary assessment of
resolution of
the application or request submitted with its
complicated issues by
supporting docs to ensure a more expeditious an officer or Ee of said
action on the application or request; government office,
such transactions to
ii. immediately inform the applicant or be determined by the
requesting party of any deficiency in the office concerned.
accompanying requirements, which shall be Highly technical Whichever is
limited to those enumerated in the Citizen’s application – an shorter between:
Charter. application which a) 20 WD or
requires the use of b) As determined
3) The receiving officer or Ee shall assign a technical knowledge, by the
unique identification number to an application or specialized skill and/or government
request, which shall be the identifying number training in the process agency or
for all subsequent transactions between the and/or evaluation instrumentality
thereof. Applications concerned.
government and the applicant or requesting
or requests involving
party regarding such specific application or activities which pose
request. danger to public
health, public safety,
4) The receiving officer or Ee shall issue an public morals, public
acknowledgement receipt containing the seal of policy.
the agency, the name of the responsible officer If the application or The Sanggunian
or Ee, his/her unit and designation, and the request for license, concerned shall
date and time of receipt of such application or clearance, permit, be given a period
request. certification or of 45 WD to act
authorization shall on the application
b) Action of Officers require the approval of or request, which
the local Sanggunian. can be extended
1) All applications or requests submitted for another 20
WD.
shall be acted upon by the assigned officer or
Ee within the prescribed processing time stated
If the local
in the Citizen’s Charter which shall not be Sanggunian
longer than: concerned has
Type of transaction Period to process denied the
Simple transactions – 3 WD from date of application or
applications or receipt request, the
requests submitted by reason for the
applicants or denial and the
requesting parties of a remedial
government office or measures that
agency which: may be taken by
a) Only require the applicant shall
ministerial actions on be cited by the
the part of the public concerned
officer or Ee; or Sanggunian.
b) That which present
only inconsequential ` 2) Maximum time prescribed may be
issues for the extended only once for the same number of
resolution by an days, which shall be indicated in the Citizen’s
officer or Ee of said Charter.
government office
 ✓ Prior to the lapse of the processing applicable, with the same level of authority as
time, the office or agency concerned shall notify that of the signed hard copy, which may be
the applicant or requesting party in writing of printed by the applicants or requesting parties
the reason for the extension and final date of in the convenience of their offices.
release of the government service/s requested.
✓ Such written notification shall be f) Adoption of Working Schedules to Serve
signed by the applicant or requesting party to Applicants or Requesting Parties – adopted
serve as proof of notice. by the Heads of offices and agencies which
render government services to ensure that all
3) In cases where the cause of delay is applicants or requesting parties who are within
due to force majeure or natural or man-made their premises prior to the end of official working
disasters, which result to damage or destruction hours are attended to and served even during
of documents, and/or system failure of the lunch break and after regular working hours.
computerized or automatic processing, the g) Identification Card – provided to all
prescribed processing times shall be employees transacting with the public. Must be
suspended and with appropriate adjustments. visibly worn during office hours.

h) Establishment of Public
4) No application or request shall be
Assistance/Complaints Desk – Each office or
returned to the applicant or requesting party
agency shall establish a public
without appropriate action.
assistance/complaints desk in all their offices.
✓ If an application or request is
(s9)
disapproved, the officer or Ee who rendered the
decision shall send a formal notice to the
H.7. STREAMLINE PROCEDURES FOR THE
applicant or requesting party within the
ISSUANCES OF PERMITS AND LICENSES
prescribed processing time, stating therein the
reason for the disapproval.
• The LGUs are mandated to implement the
✓ A violation of any or other laws by the following revised guidelines in the issuance of
applicant or requesting party is a valid ground business licenses, clearances, permits,
for the disapproval of the application or request. certifications or authorizations:

c) Denial of Application or Request for a) A single or unified business application

Access to Government Service – shall be form shall be used in processing new
fully explained in writing, stating the name of applications for business permits and business
the person making the denial and the grounds renewals which consolidates all the information
upon which such denial is based. of the applicant or requesting party by various
✓ Any denial of application or request is local government departments, such as, but not
deemed to have been made with the limited to, the local taxes and clearances,
permission or clearance from the highest building clearance, sanitary permit, zoning
authority having jurisdiction over the clearance, and other specific LGU
government office or agency concerned. requirements, as the case may be, including the
fire clearance from the Bureau of Fire
d) Limitation of Signatories – a maximum of 3 Protection (BFP).
signatures which shall represent officers directly
supervising the office or agency concerned. ✓ The unified form shall be made available
✓ In case the authorized signatory is on online using technology-neutral platforms such
official business or official leave, an alternate as, but not limited to, the central business portal
shall be designated as signatory. or the city/municipality’s website and various
✓ E-signatures or pre-signed license, channels for dissemination.
clearance, permit, certification or authorization ✓ Hard copies of the unified forms shall
with adequate security and control mechanism likewise be made available at all times in
may be used. designated areas of the concerned office and/or
agency.
e) Electronic Versions of Licenses,
Clearances, Permits, Certifications or b) A one-stop business facilitation service
Authorizations – developed by all covered (business one stop shop or BOSS) for the
government agencies covered, when city/municipality’s business permitting and
licensing system to receive and process manual ✓ The share in the collections shall be
and/or electronic submission of application for remitted to the respective barangays. (s11)
license, clearance, permit, certification or
authorization shall be established within the H.8. VIOLATIONS, JURISDICTION,
cities/municipalities’ Negosyo Center as PENALTIES AND IMMUNITY
provided for under the "Go Negosyo Act" (RA
No. 10644). • Violations – Any person who cause the
✓ There shall be a queuing mechanism in performance of the following acts shall be
the BOSS to better manage the flow of liable:
applications among the LGUs’ departments
receiving and processing applications. LGUs a) Refusal to accept application or request with
shall implement colocation of the offices of the complete requirements being submitted by an
treasury, business permits and licensing office, applicant or requesting party without due cause;
zoning office, including the BFP, and other
relevant city/municipality offices/departments, b) Imposition of additional requirements other
among others, engaged in starting a business, than those listed in the Citizen’s Charter;
dealing with construction permits. c) Imposition of additional costs not reflected in
the Citizen’s Charter;
c) Cities/Municipalities are mandated to
automate their business permitting and d) Failure to give the applicant or requesting
licensing system or set up an electronic BOSS party a written notice on the disapproval of an
for a more efficient business registration application or request;
processes.
✓ Cities/Municipalities with electronic e) Failure to render government services within
BOSS shall develop electronic versions of the prescribed processing time on any
licenses, clearances, permits, certifications or application or request without due cause;
authorizations with the same level of authority,
which may be printed by businesses in the f) Failure to attend to applicants or requesting
convenience of their offices. parties who are within the premises of the office
✓ The DICT shall make available to LGUs or agency concerned prior to the end of official
the software for the computerization of the working hours and during lunch break;
business permit and licensing system.
g) Failure or refusal to issue official receipts;
✓ The DICT, DTI, and DILG, shall provide
and h) Fixing and/or collusion with fixers in
technical assistance in the planning and
consideration of economic and/or other gain or
implementation of a computerized or software-
advantage. (s21)
enabled business permitting and licensing
system.
• Penalties
d) To lessen the transaction requirements, other
a) First Offense: Administrative liability with 6
local clearances such as, but not limited to,
months suspension.
sanitary permits, environmental and agricultural
clearances shall be issued together with the ✓ In the case of fixing and/or collusion with
business permit. fixers under Sec. 21(h), the penalty and liability
under Sect.22 (b) shall apply.
e) Business permits shall be valid for a period
of 1 year. b) Second Offense:
i. Administrative liability and criminal
✓ The city/municipality may have the
liability of dismissal from the service, perpetual
option to renew business permits within the first
disqualification from holding public office and
month of the year or on the anniversary date of
forfeiture of retirement benefits and
the issuance of the business permit.
ii. Imprisonment: 1 to 6 years with
iii. Fine: P500,000 to P2M
f) Barangay clearances and permits related to
doing business shall be applied, issued, and
Criminal liability shall also be incurred through
collected at the city/municipality in accordance
the commission of bribery, extortion, or when
with the prescribed processing time.
the violation was done deliberately and
maliciously to solicit favor in cash or in kind. In
such cases, the pertinent provisions of the RPC
and other special laws shall apply. (s22)

• The finding of administrative liability shall not

be a bar to the filing of criminal, civil or other
related charges under existing laws arising from
the same act or omission. (s23)

• Jurisdiction – The administrative jurisdiction

on any violation shall be vested in either the
CSC, or the Office of the Ombudsman as
determined by appropriate laws and issuances.
(s24)

• Immunity – Any public official or Ee or any

person having been charged with another
offense under this Act and who voluntarily gives
information pertaining to an investigation or who
willingly testifies therefore, shall be exempt from
prosecution in the case/s where his/her
information and testimony are given.

✓ The discharge may be granted and directed

by the investigating body or court upon the
application or petition of any of the
respondent/accused-informant and before the
termination of the investigation.

✓ Provided, That:

a) There is absolute necessity for the testimony

of the respondent/accusedinformant whose
discharge is requested;
b) There is no other direct evidence available
for the proper prosecution of the offense
committed, except the testimony of said
respondent/accused-informant;
c) The testimony of said respondent can be
substantially corroborated in its material points;
d) The respondent/accused-informant has not
been previously convicted of a crime involving
moral turpitude; and
e) Said respondent/accused-informant does not
appear to be the most guilty. (s25)