Can We Get Rid of Red Tape?

: The Rule on Automatic Approval or

Automatic Extension of License, Clearance,Permit, Certification or
Authorization

By: Atty. Glenn Rey D. Anino

Many business owners complain that they spend much time and devote significant
resources in applying for permits and licences. Experience have taught that this scenario is
particularly burdensome to smaller businesses and may act as a financial disadvantage to new
business start-ups who wanted to enter the game.

Notably, with the passage of Republic Act No. 11032 or the Ease of Doing Business
and Efficient Government Service Delivery Act of 2018 which promises to reduce processing
times of government transactions, business in the country nowadays becomes even more
promising.

Section 9 of the Anti-Red Tape Act of 2007 or ARTA prescribes shortened processing
periods in business and non-business transactions to three (3) working days for simple
transactions, seven (7) working days for complex transactions, and 20 working days for highly
technical application/transactions. However, the standard processing time admits of an
exception in case where the cause of delay is due to force majeure or natural or man-made
disasters, which result to damage or destruction of documents, and/or system failure of the
computerized or automatic processing, in which case, the prescribed processing times shall be
suspended and appropriate adjustments shall be made.

But what is your remedy when a certain government office or agency in the Executive
Department, including a local government unit (LGU), government-owned or -controlled
corporation (GOCC) and other government instrumentalities, located in the Philippines or
abroad, that provides services covering business-related and nonbusiness transactions, fails to
approve or disapprove your original application or request for issuance/extension/renewal of a
license, clearance, permit, certification or authorization within the prescribed processing time
and in the absence of a force majeure?

Under the Implementing Rules and Regulations (IRR) of ARTA, you can rightfully avail of
the AUTOMATIC APPROVAL, EXTENSION, OR RENEWAL of a license, clearance, permit,
certification or authorization. To avail such remedy, the applicant must file a complaint before
the Anti-Red Tape Authority for the issuance of an Order for AUTOMATIC Approval, Extension,
or Renewal of license, clearance, permit, certification, or authorization.

Section 10 thereof instructs that: (1) upon complaint; (2) together with the presentation
of the acknowledgement receipt and/or the official receipt; and (3) upon due investigation and
verification that the applicant has indeed fully submitted all necessary documents and paid all
the required fees, the Authority shall issue a declaration of completeness and order the
concerned office or agency to issue the approval, extension, and/or renewal of the license,
clearance, permit, certification, or authorization which is deemed automatically approved. On
the same vein, the acknowledgment receipt, together with the official receipt for payment of
the fees, is deemed to constitute proof of approval, having the same force and effect of a
license, clearance, permit, certification, or authorization.

The irony is that the said IRR failed to mention how long the process to investigate and
issue the declaration of completion should be concluded as if a war is set to end all wars but in
end it is still a war.

 Should you have any further question or if you need the Firm’s assistance, please feel
free to contact us at: Tel. No. (02) 8256-2252 or email at: aninolaw@gmail.com or you can visit
our office at Unit 2802 Cityland Pasong Tamo Tower, 2210 Chino Roces Avenue, Pio del Pilar,
Makati City.