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Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE:
Executive Order No. 18 was signed on February 23, 2023 to promote the Philippines as a top investment destination, encourage investors to engage in strategic investments, and ensure that the country’s regulatory environment is conducive to business operations.
National government agencies (NGAs), local government units (LGUs) are directed to take appropriate measures to maintain and promote transparency in transactions involving the public, including the adoption of unified and simplified requirements and procedures that will reduce red tape and expedite transaction with the government. (E.O. No. 18, 2023)
Republic Act No. 9485, as amended by Republic Act No. 11032 or the “Ease of Doing Business and Efficient Government Service Delivery Act of 2018,” directs the State to take appropriate measures to maintain and promote transparency in transactions involving the public, including the adoption of unified and simplified requirements and procedures that will reduce red tape and expedite transaction with the government.
With the aim of promoting the Philippines as a top investment destination, encouraging investors to engage in strategic investments, and ensuring that the country’s regulatory environment is conducive to business operations, President Ferdinand Marcos, Jr. signed Executive Order No. 18, on February 23, 2023.
This is consistent with the Eight-Point Socioeconomic Agenda of the present administration, and as part of continuing efforts of implementing ease of doing business reforms and measures that will expedite transactions with the government.
E.O. No. 18 covers all national government agencies (NGAs) and their regional and provincial offices, government-owned or -controlled corporations (GOCCs), and other government instrumentalities, as well as local government units (LGUs), involved in the issuance of permits, licenses, certifications or authorizations (collectively referred to herein as “permit/s and/or licenses/s”) covering Strategic Investments.
Strategic investments
As defined under E.O. NO. 18, strategic investments are those which are aligned with the Philippine Development Plan or any other similar national development plan; and can be characterized by the following:
- significant capital or investment to the country;
- consequential economic impact positive impact on the environment;
- significant contribution to the country’s balance of payments;
- with complex technical processes and engineering designs; and
- will bring about improvement in the country’s infrastructure capabilities.
Strategic Investments shall include, but shall not be limited to, the following:
- Highly Desirable Projects.Investment Projects recommended by the Fiscal Incentives Review Board to the President for modification of incentives or the crafting of the appropriate financial support package based on defined development strategies for creating high-value jobs, building new industries to diversify economic activities, and attracting significant foreign and domestic capital or investment, and the fiscal requirements of the activity or project, as provided under Section 301 of RA No. 11534 or the “Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.”
- Foreign Direct Investments. Foreign Direct Investments are those resulting from the implementation of the Foreign Investment Promotion and Marketing Plan, as endorsed by the Inter-Agency Investment Promotion Coordination Committee.
- Projects or activities under the Strategic Investment Priority Plan (SIPP).Local or foreign investments on activities considered projects of national significance or highly desirable, and which falls under the priority sectors or industries included in the SIPP formulated by the Department of Trade and Industry-Board of Investments (DTI-BOI) and approved by the President in accordance with Section 300 of RA No. 11534. These projects cover registrations under the DTI-BOI or other Investment Promotion Agencies. (Section 2, E.O. No. 18, series of 2023)
Green Lanes for Strategic Investments
Concerned NGAs including their regional and provincial offices when applicable, LGUs, and quasi-judicial bodies shall establish or designate, whichever is applicable, a Green Lane within their offices in charge of expediting and streamlining the processes and requirements for the issuance of permits and licenses of Strategic Investments endorsed by the One-Stop-Action-Center for Strategic Investments (OSAC-SI).
These Green Lanes shall be integrated under existing laws such as, Republic Act No. 11534, Republic Act No. 11234 or the “Energy Virtual One-Stop Shop Act,” and Republic Act No. 11032. It shall not duplicate the one-stop shop action centers already established by these laws.
In coordination with the Anti-Red Tape Authority (ARTA), the above agencies or offices shall designate an account officer for the Green Lane, who is responsible for coordinating with the OSAC-SI, relevant government offices or agencies in streamlining and simplifying business permitting and licensing processes, and recommending modifications or amendments to existing procedures that are outdated, redundant, and adds undue regulatory burden and cost to the transacting public.
Application and Issuance of Permits and Licenses
NGAs and LGUs shall act on the applications for the issuance of a permit or license within the prescribed processing time provided in the concerned agency or LGU’s Citizen’s Charter (original period), which shall not be longer than three (3) working days in the case of simple transaction, seven (7) working days in the case of complex transactions, and twenty (20) working days for highly technical transaction from the date the complete application was received. The said prescribed maximum processing period may be extended only once for the same number of days.
An application shall be considered “complete” when all the documentary requirements indicated in the respective Citizen’s Charters are submitted and the required fees and charges are duly paid. (Section 5, E.O. No. 18)
After the lapse of the period for application, the NGA or LGU shall issue the requested permit or license. Otherwise, the DTI-BOI shall endorse the case to the ARTA.
The ARTA shall issue a declaration of completeness and order the concerned offices or agency to issue the appurtenant approval, extension, and/or renewal of the license, clearance, permit, certification, or authorization upon receipt of the endorsement, together with the presentation of the acknowledgement receipt and/or official receipt of the payment of the necessary license or permit fees, and other transaction costs, and upon due investigation and verification that the applicant has indeed fully submitted all necessary documents and paid all the required fees (Section 6, E.O. No. 18)
Simultaneous Processing of Applications
The applicant shall execute an affidavit of undertaking, using the template prescribed by the DTI-BOI, specifying the following:
- that it has secured the relevant documents from specific NGAs or LGUs; and/or
- that it shall submit the complete documentary within thirty (30) working days.
The concerned NGAs and/or LGUs may coordinate with other relevant offices or agencies to check or verify the status of applications for related permits or licenses to avoid delay in their own evaluation of applications pending with them. The NGA or LGU concerned shall then issue the corresponding permits or licenses, with an annotation that it shall be subject to the completion of requirements covered by the undertaking. (Section 7, E.O. No. 18)
Monitoring and Electronic Submission
Each NGA or LGU, and or quasi-judicial body shall submit to the DTI-BOI monthly updates regarding the status of applications received and acted upon involving Strategic Investments covered under E.O. No. 18. (Section 8, E.O. No. 18)
The concerned NGA or LGU shall enable the electronic submission of application for, and issuance of, license, clearance, permit, certification or authorization, including payment and issuance of receipts, whenever applicable.
All cities and municipalities shall facilitate the computerization of their respective business permit and licensing systems. The Department of Information and Communications Technology (DICT) shall make a software for such action, and in coordination with the Department of Trade and Industry (DTI) and the Department of Interior and Local Government (DILG) shall provide technical assistance in the planning and implementation of a computerized or software-enabled business permitting and licensing system of LGUs. (Section 9, E.O. No. 18)
A Technical Working Group (TWG), to be headed by the DTI-Board of Investments (DTI-BOI), will be formed to ensure the implementation of the order. Member agencies of the TWG include the DTI, DILG, Department of Finance, National Economic and Development Authority and the Anti-Red Tape Authority. (Section 10, E.O. No. 18)
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