LAW ON OTHER BUSINESS TRANSACTIONS

5.0 Law on Other Business Transactions

5.1 PDIC Law

5.1.1 Insurable deposits
5.1.2 Maximum liability
5.1.3 Requirements for Claims

5.2 Secrecy of Bank Deposits

5.2.1 Purpose
5.2.2 Prohibited acts
5.2.3 Deposits covered
5.2.4 Exceptions
5.2.5 Garnishment of deposits including foreign deposits

5.3 Truth in Lending Act

5.3.1 Purpose
5.3.2 Obligation of creditors to persons to whom credit is extended
5.3.3 Covered and excluded transactions
5.3.4 Consequences of non-compliance with obligation

5.4 AMLA Law

5.4.1 Purpose, policies and Principles
5.4.2 Definition of terms
5.4.3 Unlawful activities
5.4.4 Covered persons
5.4.5 Money laundering, terrorism and financing and asset
forfeiture
5.4.6 Preventive measures and obligations of covered persons
5.4.6.1 Prohibited account
5.4.6.2 Customer due diligence
5.4.7 Beneficial ownership
5.4.8 Record keeping requirements
5.4.9 Safe Harbor

5.5 Intellectual Property Law (except provisions under Part 1)

5.5.1 Patents
5.5.2 Trademark, Service Marks and Trade Names
5.5.3 Copyright
 LAW ON OTHER BUSINESS TRANSACTIONS

5.6 Data Privacy Act (f) Information

and
Communicatio
REPUBLIC ACT NO. 10173 ns System
refers to a
AN ACT PROTECTING INDIVIDUAL PERSONAL INFORMATION IN system for
INFORMATION AND COMMUNICATIONS SYSTEMS IN THE GOVERNMENT generating,
AND THE PRIVATE SECTOR, CREATING FOR THIS PURPOSE A NATIONAL sending,
PRIVACY COMMISSION, AND FOR OTHER PURPOSES receiving,
storing or
Be it enacted, by the Senate and House of Representatives of the Philippines in otherwise
Congress assembled: processing
electronic data
CHAPTER I messages or
GENERAL PROVISIONS electronic
documents and
Section 1. Short Title. – This Act shall be known as the "Data Privacy Act of includes the
2012″. computer
system or other
Section 2. Declaration of Policy. – It is the policy of the State to protect the similar device
fundamental human right of privacy, of communication while ensuring free by or which
flow of information to promote innovation and growth. The State recognizes data is
the vital role of information and communications technology in nation- recorded,
building and its inherent obligation to ensure that personal information in transmitted or
information and communications systems in the government and in the stored and any
private sector are secured and protected. procedure
related to the
5.6.1 Definitions recording,
Section 3. Definition of Terms. – Whenever used in this Act, the following transmission or
terms shall have the respective meanings hereafter set forth: storage of
electronic data,
(a) Commission shall refer to the National Privacy Commission electronic
created by virtue of this Act. message, or
electronic
(b) Consent of the data subject refers to any freely given, specific, document.
informed indication of will, whereby the data subject agrees to the
collection and processing of personal information about and/or (g) Personal
relating to him or her. Consent shall be evidenced by written, information ref
electronic or recorded means. It may also be given on behalf of the ers to any
data subject by an agent specifically authorized by the data subject information
to do so.
whether
(c) Data subject refers to an individual whose personal information recorded in a
is processed. material form or
not, from which
(d) Direct marketing refers to communication by whatever means
the identity of
of any advertising or marketing material which is directed to
an individual is
particular individuals.
apparent or can
(e) Filing system refers to any act of information relating to natural be reasonably
or juridical persons to the extent that, although the information is and directly
not processed by equipment operating automatically in response to ascertained by
instructions given for that purpose, the set is structured, either by the entity
reference to individuals or by reference to criteria relating to holding the
individuals, in such a way that specific information relating to a information, or
particular person is readily accessible. when put
 LAW ON OTHER BUSINESS TRANSACTIONS

together with other information would directly and certainly identify

an individual.

(h) Personal information controller refers to a person or organization

who controls the collection, holding, processing or use of personal
information, including a person or organization who instructs another
person or organization to collect, hold, process, use, transfer or
disclose personal information on his or her behalf. The term excludes:

(1) A person or organization who performs such functions as

instructed by another person or organization; and

(2) An individual who collects, holds, processes or uses

personal information in connection with the individual’s
personal, family or household affairs.

(i) Personal information processor refers to any natural or juridical

person qualified to act as such under this Act to whom a personal
information controller may outsource the processing of personal data
pertaining to a data subject.

(j) Processing refers to any operation or any set of operations

performed upon personal information including, but not limited to,
the collection, recording, organization, storage, updating or
modification, retrieval, consultation, use, consolidation, blocking,
erasure or destruction of data.

(k) Privileged information refers to any and all forms of data which
under the Rides of Court and other pertinent laws constitute
privileged communication.

(l) Sensitive personal information refers to personal information:

(1) About an individual’s race, ethnic origin, marital status, age,

color, and religious, philosophical or political affiliations;

(2) About an individual’s health, education, genetic or sexual

life of a person, or to any proceeding for any offense
committed or alleged to have been committed by such person,
the disposal of such proceedings, or the sentence of any court
in such proceedings;
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(3) Issued by government agencies peculiar to an individual

which includes, but not limited to, social security numbers,
previous or cm-rent health records, licenses or its denials,
suspension or revocation, and tax returns; and

(4) Specifically established by an executive order or an act of

Congress to be kept classified.

5.6.2 Scope of application

Section 4. Scope. – This Act applies to the processing of all types of personal
information and to any natural and juridical person involved in personal
information processing including those personal information controllers and
processors who, although not found or established in the Philippines, use
equipment that are located in the Philippines, or those who maintain an
office, branch or agency in the Philippines subject to the immediately
succeeding paragraph: Provided, That the requirements of Section 5 are
complied with.

This Act does not apply to the following:

(a) Information about any individual who is or was an officer or

employee of a government institution that relates to the position or
functions of the individual, including:

(1) The fact that the individual is or was an officer or employee

of the government institution;

(2) The title, business address and office telephone number of

the individual;

(3) The classification, salary range and responsibilities of the

position held by the individual; and

(4) The name of the individual on a document prepared by the

individual in the course of employment with the government;

(b) Information about an individual who is or was performing service

under contract for a government institution that relates to the services
performed, including the terms of the contract, and the name of the
individual given in the course of the performance of those services;

(c) Information relating to any discretionary benefit of a financial

nature such as the granting of a license or permit given by the
government to an individual, including the name of the individual and
the exact nature of the benefit;

(d) Personal information processed for journalistic, artistic, literary or

research purposes;
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(e) Information necessary in order to carry out the functions of public (f) Kept in a
authority which includes the processing of personal data for the form which
performance by the independent, central monetary authority and law permits
enforcement and regulatory agencies of their constitutionally and identification of
statutorily mandated functions. Nothing in this Act shall be construed data subjects
as to have amended or repealed Republic Act No. 1405, otherwise for no longer
known as the Secrecy of Bank Deposits Act; Republic Act No. 6426, than is
otherwise known as the Foreign Currency Deposit Act; and Republic necessary for
Act No. 9510, otherwise known as the Credit Information System Act the purposes for
(CISA); which the data
were collected
(f) Information necessary for banks and other financial institutions and
under the jurisdiction of the independent, central monetary authority processed: Prov
or Bangko Sentral ng Pilipinas to comply with Republic Act No. 9510, ided, That
and Republic Act No. 9160, as amended, otherwise known as the Anti- personal
Money Laundering Act and other applicable laws; and information
collected for
(g) Personal information originally collected from residents of foreign other purposes
jurisdictions in accordance with the laws of those foreign jurisdictions, may lie
including any applicable data privacy laws, which is being processed in processed for
the Philippines. historical,
statistical or
5.6.3 Data Privacy Principles scientific
Section 11. General Data Privacy Principles. – The processing of personal purposes, and in
information shall be allowed, subject to compliance with the requirements of cases laid down
this Act and other laws allowing disclosure of information to the public and in law may be
adherence to the principles of transparency, legitimate purpose and stored for
proportionality. longer
periods: Provide
Personal information must, be: d, further, That
adequate
(a) Collected for specified and legitimate purposes determined and safeguards are
declared before, or as soon as reasonably practicable after collection, guaranteed by
and later processed in a way compatible with such declared, specified said laws
and legitimate purposes only; authorizing their
processing.
(b) Processed fairly and lawfully;
The personal
(c) Accurate, relevant and, where necessary for purposes for which it information controller
is to be used the processing of personal information, kept up to date; must ensure
inaccurate or incomplete data must be rectified, supplemented,implementation of
destroyed or their further processing restricted; personal information
processing principles
(d) Adequate and not excessive in relation to the purposes for whichset out herein.
they are collected and processed;
5.6.4 Processing of
(e) Retained only for as long as necessary for the fulfillment of thepersonal data
purposes for which the data was obtained or for the establishment,Section 12. Criteria for
exercise or defense of legal claims, or for legitimate businessLawful Processing of
purposes, or as provided by law; and Personal Information. –
The processing of
personal information
shall be permitted only
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if not otherwise prohibited by law, and when at least one of the following
conditions exists:

(a) The data subject has given his or her consent;

(b) The processing of personal information is necessary and is related

to the fulfillment of a contract with the data subject or in order to take
steps at the request of the data subject prior to entering into a
contract;

(c) The processing is necessary for compliance with a legal obligation

to which the personal information controller is subject;

(d) The processing is necessary to protect vitally important interests of

the data subject, including life and health;

(e) The processing is necessary in order to respond to national

emergency, to comply with the requirements of public order and
safety, or to fulfill functions of public authority which necessarily
includes the processing of personal data for the fulfillment of its
mandate; or

(f) The processing is necessary for the purposes of the legitimate

interests pursued by the personal information controller or by a third
party or parties to whom the data is disclosed, except where such
interests are overridden by fundamental rights and freedoms of the
data subject which require protection under the Philippine
Constitution.

5.6.5 Security measures for protection of personal data

Section 20. Security of Personal Information.
(a) The personal information controller must implement reasonable
and appropriate organizational, physical and technical measures
intended for the protection of personal information against any
accidental or unlawful destruction, alteration and disclosure, as well as
against any other unlawful processing.

(b) The personal information controller shall implement reasonable

and appropriate measures to protect personal information against
natural dangers such as accidental loss or destruction, and human
dangers such as unlawful access, fraudulent misuse, unlawful
destruction, alteration and contamination.
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(c) The determination of the appropriate level of security under this

section must take into account the nature of the personal information
to be protected, the risks represented by the processing, the size of
the organization and complexity of its operations, current data privacy
best practices and the cost of security implementation. Subject to
guidelines as the Commission may issue from time to time, the
measures implemented must include:

(1) Safeguards to protect its computer network against

accidental, unlawful or unauthorized usage or interference
with or hindering of their functioning or availability;

(2) A security policy with respect to the processing of personal

information;

(3) A process for identifying and accessing reasonably

foreseeable vulnerabilities in its computer networks, and for
taking preventive, corrective and mitigating action against
security incidents that can lead to a security breach; and

(4) Regular monitoring for security breaches and a process for

taking preventive, corrective and mitigating action against
security incidents that can lead to a security breach.

(d) The personal information controller must further ensure that third
parties processing personal information on its behalf shall implement
the security measures required by this provision.

(e) The employees, agents or representatives of a personal

information controller who are involved in the processing of personal
information shall operate and hold personal information under strict
confidentiality if the personal information are not intended for public
disclosure. This obligation shall continue even after leaving the public
service, transfer to another position or upon termination of
employment or contractual relations.

(f) The personal information controller shall promptly notify the

Commission and affected data subjects when sensitive personal
information or other information that may, under the circumstances,
be used to enable identity fraud are reasonably believed to have been
acquired by an unauthorized person, and the personal information
controller or the Commission believes (bat such unauthorized
acquisition is likely to give rise to a real risk of serious harm to any
affected data subject. The notification shall at least describe the
nature of the breach, the sensitive personal information possibly
involved, and the measures taken by the entity to address the breach.
Notification may be delayed only to the extent necessary to determine
the scope of the breach, to prevent further disclosures, or to restore
reasonable integrity to the information and communications system.

(1) In evaluating if notification is unwarranted, the Commission

may take into account compliance by the personal information
controller with this section and existence of good faith in the
acquisition of personal information.
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(2) The Commission may exempt a personal information

controller from notification where, in its reasonable judgment,
such notification would not be in the public interest or in the
interests of the affected data subjects.

(3) The Commission may authorize postponement of

notification where it may hinder the progress of a criminal
investigation related to a serious breach.

5.6.6 Rights of Data Subject

Section 16. Rights of the Data Subject. – The data subject is entitled to:

(a) Be informed whether personal information pertaining to him or

her shall be, are being or have been processed;

(b) Be furnished the information indicated hereunder before the entry

of his or her personal information into the processing system of the
personal information controller, or at the next practical opportunity:

(1) Description of the personal information to be entered into

the system;

(2) Purposes for which they are being or are to be processed;

(3) Scope and method of the personal information processing;

(4) The recipients or classes of recipients to whom they are or

may be disclosed;

(5) Methods utilized for automated access, if the same is

allowed by the data subject, and the extent to which such
access is authorized;

(6) The identity and contact details of the personal information

controller or its representative;

(7) The period for which the information will be stored; and

(8) The existence of their rights, i.e., to access, correction, as

well as the right to lodge a complaint before the Commission.

Any information supplied or declaration made to the data subject on these

matters shall not be amended without prior notification of data
subject: Provided, That the notification under subsection (b) shall not apply
should the personal information be needed pursuant to a subpoena or when
the collection and processing are for obvious purposes, including when it is
necessary for the performance of or in relation to a contract or service or
when necessary or desirable in the context of an employer-employee
relationship, between the collector and the data subject, or when the
information is being collected and processed as a result of legal obligation;
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(c) Reasonable access to, upon demand, the following:

(1) Contents of his or her personal information that were

processed;

(2) Sources from which personal information were obtained;

(3) Names and addresses of recipients of the personal

information;

(4) Manner by which such data were processed;

(5) Reasons for the disclosure of the personal information to

recipients;

(6) Information on automated processes where the data will or

likely to be made as the sole basis for any decision significantly
affecting or will affect the data subject;

(7) Date when his or her personal information concerning the

data subject were last accessed and modified; and

(8) The designation, or name or identity and address of the

personal information controller;

(d) Dispute the inaccuracy or error in the personal information and

have the personal information controller correct it immediately and
accordingly, unless the request is vexatious or otherwise
unreasonable. If the personal information have been corrected, the
personal information controller shall ensure the accessibility of both
the new and the retracted information and the simultaneous receipt
of the new and the retracted information by recipients
thereof: Provided, That the third parties who have previously received
such processed personal information shall he informed of its
inaccuracy and its rectification upon reasonable request of the data
subject;

(e) Suspend, withdraw or order the blocking, removal or destruction of

his or her personal information from the personal information
controller’s filing system upon discovery and substantial proof that the
personal information are incomplete, outdated, false, unlawfully
obtained, used for unauthorized purposes or are no longer necessary
for the purposes for which they were collected. In this case, the
personal information controller may notify third parties who have
previously received such processed personal information; and

(f) Be indemnified for any damages sustained due to such inaccurate,

incomplete, outdated, false, unlawfully obtained or unauthorized use
of personal information.

5.6.7 Data breach notification

5.6.8 Outsourcing and subcontracting agreements
5.6.9 Registration and compliance requirements
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5.7 Electronic Commerce Act (e) "Electronic

Signature"
REPUBLIC ACT NO. 8792 June 14, 2000 refers to any
distinctive mark,
AN ACT PROVIDING FOR THE RECOGNITION AND USE OF characteristic
ELECTRONIC COMMERCIAL AND NON-COMMERCIAL and/or sound in
TRANSACTIONS AND DOCUMENTS, PENALTIES FOR UNLAWFUL electronic form,
USE THEREOF, AND FOR OTHER PURPOSES representing
the identity of a
5.7.1 Principles
person and
Section 3. Objective - This Act aims to facilitate domestic and international
attached to or
dealings, transactions, arrangements agreements, contracts and exchanges
logically
and storage of information through the utilization of electronic, optical and
associated with
similar medium, mode, instrumentality and technology to recognize the
the electronic
authenticity and reliability of electronic documents related to such activities
data message or
and to promote the universal use of electronic transaction in the government
electronic
and general public.
document or
any
5.7.2 Application
methodology or
Section 4. Sphere of Application - This Act shall apply to any kind of data
procedures
message and electronic document used in the context of commercial and
employed or
non-commercial activities to include domestic and international dealings,
adopted by a
transactions, arrangements, agreements contracts and exchanges and storage
person and
of information.
executed or
adopted by such
5.7.3 Definition of terms
person with the
Section 5. Definition of Terms - For the purposes of this Act, the following
intention of
terms are defined, as follows:
authenticating
or approving an
(a) "Addressee" refers to a person who is intended by the originator to
electronic data
receive the electronic data message or electronic document. The term
message or
does not include a person acting as an intermediary with respect to
electronic
that electronic data message or electronic data document.
document.
(b) "Computer" refers to any device or apparatus which, by electronic,
(f) "Electronic
electro-mechanical, or magnetic impulse, or by other means, is
Document"
capable of receiving, recording, transmitting, storing, processing,
refers to
retrieving, or producing information, data, figures, symbols or other
information or
modes of written expression according to mathematical and logical
the
rules or of performing any one or more of these functions.
representation
of information,
(c) "Electronic Data Message" refers to information generated, sent,
data, figures,
received or stored by electronic, optical or similar means.
symbols or
other modes of
(d) "Information and Communications System" refers to a system
written
intended for and capable of generating, sending, receiving, storing, or
expression,
otherwise processing electronic data messages or electronic
described or
documents and includes the computer system or other similar device
however
by or in which data is recorded or stored and any procedures related
represented, by
to the recording or storage of electronic data message or electronic
which a right is
document.
established or
an obligation
extinguished, or
by which a fact
may be prove
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and affirmed, which is receive, recorded, transmitted, stored,

processed, retrieved or produced electronically.

(g) "Electronic Key" refers to a secret code which secures and defends
sensitive information that cross over public channels into a form
decipherable only with a matching electronic key.

(h) "Intermediary" refers to a person who in behalf of another person

and with respect to a particular electronic document sends, receives
and/or stores provides other services in respect of that electronic data
message or electronic document.

(i) "Originator" refers to a person by whom, or on whose behalf, the

electronic document purports to have been created, generated and/or
sent. The term does not include a person acting as an intermediary
with respect to that electronic document.

(j) "Service provider" refers to a provider of -

i. On-line services or network access or the operator of

facilities therefor, including entities offering the transmission,
routing, or providing of connections for online
communications, digital or otherwise, between or among
points specified by a user, of electronic documents of the
user's choosing; or

ii. The necessary technical means by which electronic

documents of an originator may be stored and made accessible
to designated or undesignated third party.

Such service providers shall have no authority to modify or alter the content
of the electronic data message or electronic document received or to make
any entry therein on behalf of the originator, addressee or any third party
unless specifically authorized to do so, and who shall retain the electronic
document in accordance with the specific request or as necessary for the
purpose of performing the services it was engaged to perform.

5.7.4 Legal recognition and communication of electronic data messages and

electronic documents

Section 6. Legal Recognition of Electronic Data Messages - Information shall

not be denied legal effect, validity or enforceability solely on the grounds that
it is in the data message purporting to give rise to such legal effect, or that it is
merely referred to in that electronic data message.
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Section 7. Legal Recognition of Electronic Documents - Electronic documents

shall have the legal effect, validity or enforceability as any other document or
legal writing, and -

(a) Where the law requires a document to be in writing, that

requirement is met by an electronic document if the said electronic
document maintains its integrity and reliability and can be
authenticated so as to be usable for subsequent reference, in that -

i. The electronic document has remained complete and

unaltered, apart from the addition of any endorsement and
any authorized change, or any change which arises in the
normal course of communication, storage and display; and

ii. The electronic document is reliable in the light of the

purpose for which it was generated and in the light of all
relevant circumstances.

(b) Paragraph (a) applies whether the requirement therein is in the

form of an obligation or whether the law simply provides
consequences for the document not being presented or retained in its
original from.

(c) Where the law requires that a document be presented or retained

in its original form, that requirement is met by an electronic document
if -

i. There exists a reliable assurance as to the integrity of the

document from the time when it was first generated in its final
form; and

ii. That document is capable of being displayed to the person

to whom it is to be presented: Provided, That no provision of
this Act shall apply to vary any and all requirements of existing
laws on formalities required in the execution of documents for
their validity.

For evidentiary purposes, an electronic document shall be the functional

equivalent of a written document under existing laws.

This Act does not modify any statutory rule relating to admissibility of
electronic data massages or electronic documents, except the rules relating to
authentication and best evidence.

5.7.5 Electronic commerce in carriage of goods

Section 25. Actions Related to Contracts of Carriage of Goods. - Without
derogating from the provisions of part two of this law, this chapter applies to
any action in connection with, or in pursuance of, a contract of carriage of
goods, including but not limited to:

(a) (i) furnishing the marks, number, quantity or weight of goods;

(ii) stating or declaring the nature or value of goods;

(iii) issuing a receipt for goods;

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(iv) confirming that goods have been loaded;

(b) (i) notifying a person of terms and conditions of the contract;

(ii) giving instructions to a carrier;

(c) (i) claiming delivery of goods;

(ii) authorizing release of goods;

(iii) giving notice of loss of, or damage to goods;

(d) giving any other notice or statement in connection with the

performance of the contract;

(e) undertaking to deliver goods to a named person or a person

authorized to claim delivery;

(f) granting, acquiring, renouncing, surrendering, transferring or

negotiating rights in goods;

(g) acquiring or transferring rights and obligations under the contract.

5.7.6 Electronic transactions in government

Section 27. Government Use of Electronic Data Messages, Electronic
Documents and Electronic Signatures. - Notwithstanding any law to the
contrary, within two (2) years from the date of the effectivity of this Act, all
departments, bureaus, offices and agencies of the government, as well as all
government-owned and -controlled corporations, that pursuant to law
require or accept the filling of documents, require that documents be created,
or retained and/or submitted, issue permits, licenses or certificates of
registration or approval, or provide for the method and manner of payment
or settlement of fees and other obligations to the government, shall-

(a) accept the creation, filing or retention of such documents in the

form of electronic data messages or electronic documents;

(b) issue permits, licenses, or approval in the form of electronic data

messages or electronic documents;

(c) require and/or accept payments, and issue receipts acknowledging

such payments, through systems using electronic data messages or
electronic documents; or

(d) transact the government business and/or perform governmental

functions using electronic data messages or electronic documents, and
for the purpose, are authorized to adopt and promulgate, after
appropriate public hearing and with due publication in newspapers of
general circulation, the appropriate rules, regulations, or guidelines,
to, among others, specify –

1) the manner and format in which such electronic data

messages or electronic documents shall be filed, created,
retained or issued;
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2) where and when such electronic data messages or electronic

documents have to signed, the use of an electronic signature,
the type of electronic signature required;

3) the format of an electronic data message or electronic

document and the manner the electronic signature shall be
affixed to the electronic data message or electronic document;

4) the control processes and procedures as appropriate to

ensure adequate integrity, security and confidentiality of
electronic data messages or electronic documents or records
of payments;

5) other attributes required to electronic data messages or

electronic documents or payments; and

6) the full or limited use of the documents and papers for

compliance with the government requirements: Provided, that
this Act shall be itself mandate any department of the
government, organ of state or statutory corporation to accept
or issue any document in the form of electronic data messages
or electronic documents upon the adoption, promulgation and
publication of the appropriate rules, regulations or guidelines.

Section 28. RPWEB To Promote the Use of Electronic Documents or Electronic

Data Messages In Government and to the General Public. - Within two (2)
years from the effectivity of this Act, there shall be installed an electronic
online network in accordance with Administrative Order 332 and House of
Representatives Resolution 890, otherwise known as RPWEB, to implement
Part IV of this Act to facilitate the open, speedy and efficient electronic online
transmission, conveyance and use of electronic data messages or electronic
documents amongst all government departments, agencies, bureaus, offices
down to the division level and to the regional and provincial offices as
practicable as possible, government owned and controlled corporations, local
government units, other public instrumentalities, universities, colleges and
other schools, and universal access to the general public.

The RPWEB network shall serve as initial platform of the government

information infrastructure (GII) to facilitate the electronic online transmission
and conveyance of government services to evolve and improve by better
technologies or kinds and electronic online wide area networks utilizing, but
not limited to, fiber optic, satellite, wireless and other broadband
telecommunication mediums or modes.

To facilitate the rapid development of the GII, the Department of

Transportation and Communications, National Telecommunications
Commission and the National Computer Center are hereby directed to
aggressively promote and implement a policy environment and regulatory
framework that shall lead to the substantial reduction of costs of including,
but not limited to, lease lines, land, satellite and dial-up telephone access,
cheap broadband and wireless accessibility by government departments,
agencies, bureaus, offices, government owned and controlled corporations,
local government units, other public instrumentalities and the general public,
to include the establishment of a government
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website portal and a domestic internal exchange system to facilitate strategic

access to government and amongst agencies thereof and the general public
and for the speedier flow of locally generated internal traffic within the
Philippines.

The physical infrastructure of cable and wireless system for cable TV and
broadcast excluding programming content and the management thereof shall
be considered as within the activity of telecommunications for the purpose of
electronic commerce and to maximize the convergence of ICT in the
installation of the GII.

Section 29. Authority of the Department of Trade and Industry and

Participating Entities. - The Department of Trade and Industry (DTI) shall
direct supervise the promotion and development of electronic commerce in
the country with relevant government agencies, without prejudice to the
provisions of Republic Act 7653 (Charter of Bangko Sentral ng Pilipinas) and
Republic Act No. 337, (General Banking Act) as amended.

Among others, the DTI is empowered to promulgate rules and regulations, as

well as provide quality standards or issue certifications, as the case may be,
and perform such other functions as may be necessary for the
implementation of this Act in the area of electronic commerce to include, but
shall not limited to, the installation of an online public information and quality
and price monitoring system for goods and services aimed in protecting the
interests of the consuming public availing of the advantages of this Act.

5.8 Ease of Doing Business and Efficient Delivery of Government Service

Delivery Act

REPUBLIC ACT No. 11032

AN ACT PROMOTING EASE OF DOING BUSINESS AND EFFICIENT DELIVERY OF
GOVERNMENT SERVICES, AMENDING FOR THE PURPOSE

REPUBLIC ACT NO. 9485, OTHERWISE KNOWN AS THE ANTI-RED TAPE ACT
OF 2007, AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:
Section 1. Section 1 of Republic Act No. 9485, otherwise known as the "Anti-
Red Tape Act of 2007", is hereby amended to read as follows:
"Sec. 1. Short Title. – This Act shall be known as the Ease of Doing Business
and Efficient Government Service Delivery Act of 2018"
5.8.1 Policy, construction and interpretation
Section 2. Section 2 of the same Act is hereby amended to read as follows:
"Sec. 2. Declaration of Policy. – It is hereby declared the policy of the State to
promote integrity, accountability, proper management of public affairs and
public property as well as to establish effective practices, aimed at efficient
turnaround of the delivery of government services and the prevention of graft
and corruption in government.
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Towards this end, the State shall maintain honesty and responsibility among "(h) Nonbusines
its public officials and employees, and shall take appropriate measures to s transactions –
promote transparency in each agency with regard to the manner of all other
transacting with the public, which shall encompass a program for the government
adoption of simplified requirements and procedures that will reduce red tape transactions not
and expedite business and nonbusiness related transactions in government." falling under
Section 4 (c) of
5.8.2 Definition of terms
this Act;
Section 4. Definition of Terms. – As used in this Act, the following terms are
defined as follows: "(i) Officer or
"(a) Action refers to the written approval or disapproval made by a employee – a
government office or agency on the application or request submitted person
by an applicant or requesting party for processing; employed in a
"(b) Business One Stop Shop (BOSS) – a single common site or government
location, or a single online website or portal designated for the office or agency
Business Permit and Licensing System (BPLS) of an LGU to receive and required to
process applications, receive payments, and issue approved licenses, perform specific
clearances, permits, or authorizations; duties and
responsibilities
"(c) Business-related transactions – a set of regulatory requirements related to the
that a business entity must comply with to engage, operate or application or
continue to operate a business, such as, but not limited to, collection request
or preparation of a number of documents, submission to national and submitted by an
local government authorities, approval of application submitted, and applicant or
receipt of a formal certificate or certificates, permits, licenses which requesting party
include primary and secondary, clearances and such similar for processing;
authorization or documents which confer eligibility to operate or
continue to operate as a legitimate business; "(j) Processing
time – the time
"(d) Complex transactions – applications or requests submitted by consumed by an
applicants or requesting parties of a government office which LGU or national
necessitate evaluation in the resolution of complicated issues by an government
officer or employee of said government office, such transactions to be agency (NGA)
determined by the office concerned; from the receipt
"(e) Fixer – any individual whether or not officially involved in the of an
operation of a government office or agency who has access to people application or
working therein, and whether or not in collusion with them, facilitates request with
speedy completion of transactions for pecuniary gain or any other complete
advantage or consideration; requirements,
accompanying
"(f) Government service – the process or transaction between documents and
applicants or requesting parties and government offices or agencies payment of fees
involving applications for any privilege, right, reward, license, to the issuance
clearance, permit or authorization, concession, of for any of certification
modification, renewal or extension of the enumerated applications or or such similar
requests which are acted upon in the ordinary course of business of documents
the agency or office concerned; approving or
"(g) Highly technical application – an application which requires the disapproving an
use of technical knowledge, specialized skills and/or training in the application or
processing and/or evaluation thereof; request;
"(k) Red tape –
any regulation,
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rule, or administrative procedure or system that is ineffective or

detrimental in achieving its intended objectives and, as a result,
produces slow, suboptimal, and undesirable social outcomes;
"(l) Regulation – any legal instrument that gives effect to a
government policy intervention and includes licensing, imposing
information obligation, compliance to standards or payment of any
form of fee, levy, charge or any other statutory and regulatory
requirements necessary to carry out activity; and
"(m) Simple transactions – applications or requests submitted by
applicants or requesting parties of a government office or agency
which only require ministerial actions on the part of the public officer
or employee, or that which present only inconsequential issues for the
resolution by an officer or employee of said government."
5.8.3 Coverage and scope
"Section 3 . Coverage. – This Act shall apply to all government offices and
agencies including local government units (LGUs), government-owned or
controlled corporations and other government instrumentalities, whether
located in the Philippines or abroad, that provide services covering business
and nonbusiness related transactions as defined in this Act."

5.8.4 Reengineering of systems and procedures

"Section 5. Reengineering of Systems and Procedures. – All offices and
agencies which provide government services are hereby mandated to
regularly undertake cost compliance analysis, time and motion studies,
undergo evaluation and improvement of their transaction systems and
procedures and reengineer the same if deemed necessary to reduce
bureaucratic red tape and processing time.

"The Anti-Red Tape Authority, created in this Act, shall coordinate with all
government offices covered under Section 3 of this Act in the review of
existing laws, executive issuances and local ordinances, and recommend the
repeal of the same if deemed outdated, redundant, and adds undue
regulatory burden to the transacting public.
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"All proposed regulations of government agencies under Section 3 of this Act

shall undergo regulatory impact assessment to establish if the proposed
regulation does not add undue regulatory burden and cost to these agencies
and the applicants or requesting parties: Provided, That when necessary, any
proposed regulation may undergo pilot implementation to assess regulatory
impact.
"Upon effectivity of this Act, all LGUs and NGAs are directed to initiate review
of existing policies and operations and commence with the reengineering of
their systems and procedures in compliance with the provisions of this Act,
pending the approval of the implementing rules and regulations (IRR)
thereof."
5.8.5 Citizen’s charter
"Section 6. Citizen’s Charter. – All government agencies including
departments, bureaus, offices, instrumentalities, or government-owned
and/or –controlled corporations, or LGUs shall set up their respective most
current and updated service standards to be known as the Citizen’s Charter in
the form of information billboards which shall be posted at the main entrance
of offices or at the most conspicuous place, in their respective websites and in
the form of published materials written either in English, Filipino, or in the
local dialect, that detail:
"(a) A comprehensive and uniform checklist of requirements for each
type of application or request;
"(b) The procedure to obtain a particular service;
"(c) The person/s responsible for each step;
"(d) The maximum time to conclude the process;
"(e) The document/s to be presented by the applicant or requesting
party, if necessary;
"(f) The amount of fees, if necessary; and
"(g) The procedure for filing complaints."
5.8.6 Accessing government services
"Section 9. Accessing Government Services. – The following shall adopted by
all government offices and agencies:

"(a) Acceptance of Applications or Requests. –

"(1) All officers or employees shall accept written applications,

requests, and/or documents being submitted by applicants or
requesting parties of the offices or agencies.

"(2) The receiving officer or employee shall perform a

preliminary assessment of the application or request submitted
with its supporting documents to ensure a more expeditious
action on the application or request. The receiving officer or
employee shall immediately inform the applicant or requesting
party of any deficiency in the accompanying requirements,
which shall be limited to those enumerated in the Citizen’s
Charter.
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"(3) The receiving officer or employee shall assign a unique "(2) No

identification number to an application or request, which shall applicati
be the identifying number for all subsequent transactions on or
between the government and the applicant or requesting party request
regarding such specific application or request. shall be
returned
"(4) The receiving officer or employee shall issue an to the
acknowledgement receipt containing the seal of the agency, applicant
the name of the responsible officer or employee, his/her unit or
and designation, and the date and time of receipt of such requesti
application or request. ng party
without
"(b) Action of Offices. – appropri
ate
"(1) All applications or requests submitted shall be acted upon action.
by the assigned officer or employee within the prescribed In case
processing time stated in the Citizen’s Charter which shall not an
be longer than three (3) working days in the case of simple applicati
transactions and seven (7) working days in the case of complex on or
transactions from the date the request and/or complete request
application or request was received. is
disappro
"For applications or requests involving activities which pose danger to ved, the
public health, public safety, public morals, public policy, and highly officer or
technical application, the prescribed processing time shall in no case employe
be longer than twenty (20) working days or as determined by the e who
government agency or instrumentality concerned, whichever is rendere
shorter. d the
decision
"The maximum time prescribed above may be extended only once for shall
the same number of days, which shall be indicated in the Citizen’s send a
Charter. Prior to the lapse of the processing time, the office or agency formal
concerned shall notify the applicant or requesting party in writing of notice to
the reason for the extension and final date of release of the the
government service/s requested. Such written notification shall be applicant
signed by the applicant or requesting party to serve as proof of notice. or
requesti
"If the application or request for license, clearance permit, ng party
certification or authorization shall require the approval of the within
local Sangguniang Bayan, Sangguniang Panlungsod, or the
the Sangguniang Panlalawigan as the case may be, prescrib
the Sanggunian concerned shall be given a period of forty-five (45) ed
working days to act on the application or request, which can be processi
extended for another twenty (20) working days. If the ng time,
local Sanggunian concerned has denied the application or request, the stating
reason for the denial, as well as the remedial measures that may be therein
taken by the applicant shall be cited by the concerned Sanggunian. the
reason
"In cases where the cause of delay is due to force majeure or natural for the
or man-made disasters, which result to damage or destruction of disappro
documents, and/or system failure of the computerized or automatic val. A
processing, the prescribed processing times mandated in this Act shall finding
be suspended and appropriate adjustments shall be made. by a
compete
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nt authority of a violation of any or other laws by the applicant

or requesting party shall constitute a valid ground for the
disapproval of the application or request, without prejudice to
other grounds provided in this Act or other pertinent laws.