Improved Transaction Flows and Cost 1 Improved Transaction Flows and Costs Commitments Secretary Peter B. Favila Department of Trade and Industry Chair, Anti-Red Tape Task Force National Competitiveness Summit 06 October 2006

Improved Transaction Flows and Cost 2 THE ANTI-RED TAPE TASK FORCE 1.Enforcement of existing Presidential Directives to eliminate red tape and streamline business- related procedures 2.Quick wins through EO 554 (Elimination of Fees on Export-related Documentation) 3.Public-Private Partnership in improving business processes at the local government level

Improved Transaction Flows and Cost 3 ANTI-RED TAPE INITIATIVES DTI shortened processing time for business name and BOI registration; eliminated requirement of permits from 5 agencies. BOI waived processing fee and adopted one-day processing for cement and copper export clearances. PEZA, together with BOC, automated the system of Import Permit Issuance and Export Documentation; together with DENR, reduced the processing time for the issuance of ECC from 60 days to 20 days PCAB post verification for renewal of contractors’ licenses reduced to 15 days from days. DILG established One-stop shops in 46%, customer complaint desks in 51% and simplified the Civil Application System in 65% -- of 1,400 municipalities. Moncada, Gerona and Sta. Ignacia, Tarlac, together with the Ateneo Center for Continuing Education, piloted the automated system for business processes. Currently working on the automation of Bambang, Nueva Vizcaya. DOT streamlined procedures for endorsement of tourism projects to BOI, PEZA and LTFRB; shortened processing and evaluation of applications of tourism establishments from 5 to 3 working days. DOE established the Energy Investment Promotion Office DENR shortened processing time for permits; established One-stop Shop Committees for Area Status Clearances for Mining Applications. BFAD reduced processing time for license to operate from 3 days to 1; Food Export/ Commodity Clearance Fee was removed and processing time reduced from 3 days to 1; Giant billboard was put up to detail the procedures for getting licenses BAI eliminated its processing fees FIDA eliminated fees, streamlined its procedures and abolished commodity clearance.

Improved Transaction Flows and Cost 4 Commitments/Specific Actions Starting a Business (based on WB Study) NATURE OF PROCEDURE PROCESS NO. PRESENT (No. of days) COMMITMENT (No. of days) AGENCY Obtain proof of funds111 SEC registration233 Securing Barangay Clearance322 Securing Mayor’s Permit411 Buying Book of Accounts511 Securing VAT Registration and TIN6 21 BIR Payment of Documentary Stamp Taxes711 Securing authority to print invoices8 141 BIR Printing invoices and receipts911 Registering invoices and receipts1011 Filing for social security & Medicare11 1 SSS & Philhealth TOTAL

Improved Transaction Flows and Cost 5 ACTION AGENDA Across the Bureaucracy Freeze the issuance of additional administrative requirements Conduct an impact analysis on existing procedures Implement e-Governance features in the course of streamlining procedures

Improved Transaction Flows and Cost 6 For Local Government Units (LGUs) Establishment of One-Stop-Shops, Customer Complaint Desks, Business Assistance Desks in all DILG Regional, Provincial and City Offices PPP to conduct nationwide campaign among LGUs to adopt best practices PPP for capability-building of LGUs and monitoring of compliance with anti-red tape measures ACTION AGENDA

Improved Transaction Flows and Cost 7 COMMITMENTS/SPECIFIC ACTIONS DTI Continued streamlining of business name registration and BOI project registration BSMED’s Information Advocacy: business registration, licensing & regulation requirements, best practices for LGUs by October NERBAC in Davao and Cebu by December 2006 Philippine Business Registry web-based portal by December 2007 BI Extension of ACR validity from 1 to 5 years Improved service through deployment of ACR machines in regions ZERO backlog in the printing of the ACR- I Card BOC Computerization of at least 18 of 30 procedures by November 2006 National Single Electronic Window to be pilot- tested between DA and BOC by the 4 th quarter of 2006 BFAD Computerization completed by January 2007