Scope and Nature of WG-TCF Projects:

Project 1 Improve the Procedures for the Entry and Exit of Business Persons
Project 2 Enhance the Procedures for the Entry and Exit of Goods
Project 3.1 Consistency of Business Rules at the National and Local Levels
Project 3.2 Simplification of Procedures
Project 4 Citizen’s Charter
Project 5 Harmonization of Incentives

 - Status Report for Top 10 Business Problems

 Project 1: Improve the Procedures for the Entry and Exit of Business Persons (4 initiatives)
 
Ease of travel
     1. Provision of passport readers in all 10 international airports save for Puerto Princesa which is non-operating to date.
     2. Implementation of simplified arrival and departure procedures at NAIA I, NAIA II, NAIA III, and MCIA.

ACR-I Card Project 
  - Ongoing computerization of registered foreign nationals and implementation of paperless travel procedures

Faster Processing of Visas and Extensions
  - Procedures implemented in 28 sites.  Remaining same number for completion in I Qtr 2010.

Connectivity
   1. A total of 41 sub-ports and field offices directly communicate with the Bureau of Immigration Main Office;
       another 16   offices via Internet.  Additional 8 off-sites to be connected by I Qtr 2010.
   2. E-mail exchange between main office and sub ports/field offices is in place.

Project 2: Enhance the Procedures for the Entry and Exit of Business Goods (5 initiatives)

e2m Custom System

   1. Implementation of Import Assessment System in the  Ports of Batangas, Limay, Manila, and MICP;
   2. Issuance of Rules and Regulations for nationwide implementation.

National Single Window (NSW)
   1. Ongoing interconnection of 20 additional agencies;
   2. Standard data and communication protocol set in 21 agencies

Revised Kyoto Convention (RKC) Standards
   1. Latest Senate public hearing on RKC Accession held on 22 May 2009. Bureau of Customs awaiting the
       committee report of Senator Miriam Santiago.
   2. Draft Customs Modernization bill (HB 5342) is pending with House Committee on Ways and Means.
   3. Proposed Customs and Tariff Modernization Act (CTMA) submitted to Senate President and Chairman
       of the Senate Committee on Ways and Means on 19 May 2009.
   4. Briefing on the proposed CTMA for the House Committee on Ways and Means on 1 June 2009.
   5. Drafting of revised comprehensive Customs regulations compliant with RKC standards.

Authorized Economic Operator (AEO) Program
   1. Submission to Congress to include provision for the accreditation of AEO in the Customs Modernization Act.

Customs Bonded Warehouse (CBW) policy and procedures
   1. Conduct of Workshop with the private sector on Revised Rules and Regulations governing CBW policy and procedures.
   2. Issuance of CAO No. 1-2009 on 12 March 2009,  on revised rules and regulations concerning CBW operations.
       Technical Working Group drafting Customs Memorandum Order (CMO) to implement the Customs Administrative
       Order (CAO).

Project 3.1: Consistency of Business Rules (SBRP & PBR)

Standard Business Registration and Permits (SBRP) Processes

   1. Target Date for SBRP implementation in Metro Manila (16 cities + 1 municipality) is  January 2010.
   2. Conduct of Action Planning Workshop in August 2009 by League of Cities of the Philippines (LCP)  with IFC on the
       simplification of LGU permits and licensing operations involving:  1) One-form, 2) One-time assessment and One
       time payment, and 3) Creation of a Joint Inspection team.
   3. 9 cities, excluding 4 pilot cities with full implementation, participated in survey conducted in September  by LCP
       to assess progress of SBRP implementation.
   4. Creation of a Fire Code Task Force to resolve the issue of the Fire Safety Inspection Certificate which was identified
       as one of the reasons affecting the efficiency of LGU business permit issuance.
   5. Submission on November 17, 2009 of the LCP official position paper to DILG Sec. Ronaldo Puno and U/sec. Marius
       Corpuz.
   6. Conduct of Sharing Lesson Event on the Regulatory Simplification Project on November 18, 2009 attended by 4 Pilot
       and other NCR Cities.
   7. Completion of drafting and start of rollout of SBRP Manual of Operations.
   8. Finalization of the One Business Application form and endorsed by LCP through Mayor Ben Abalos to NCR LGUs.

Philippine Business Registry (PBR)
   1. Connectivity with the Cooperative Development Authority (CDA) and BIR for development and testing.
   2. Confirmation by the SEC to participate in the registry database.
   3. Interconnectivity of 11 LGUs with PBR.
   4. Use of PBR Printable Form as basis for standardization of business registration forms in 16 NCR cities.
   5. Drafting of Department Order to enforce use of PBR Unified Printable Form by NERBACs and other DTI Offices.

Other SBRP developments
   1. Computerization of 15 NERBACs enabled through assignment of computer units.
   2. Configuration and installation of NERBAC* networks; expected completion by 2nd week December 2009.
   3. Provision of training programs for NERBAC personnel by 1Q 2010 to dovetail with PBR rollout.
   4. Additional reprinting of SBRP Toolkit for dissemination to League of Municipalities; League of Cities; Congress; DTI
       bureaus, agencies, and field offices; and trade and industry associations.
   5. Design of evaluation form for use by LCP members.
   6. Dissemination of flyer entitled, “Registering Your Business” to various government agencies.
_____________________
*National Economic Research and Business Assistance Center.

Project 3.2: Simplification of procedures (Region XII)

Business Registration and Licensing Uniform Fact Sheet; R12 One-LGU Form
   1. The Business Registration and  Licensing Unified Form Fact Sheet (BRL-UF) is being successfully implemented in
       Region XII. 
   2. Hosted on www.investinr12.net, the BRL-UF is a virtual one-stop-shop for business registrants where the full set of
       forms can be easily downloaded and emailed upon completion.
   3. The system requires LGUs in Region XII to adopt a uniform application form for business registration known as the
       “R12 One-LGU Form”.  
   4. The Form is an Adobe PDF fillable form that, when encoded, will automatically replicate the data to pertinent forms
       maintained by the DTI, SEC, Community Development Authority (CDA), LGU, BIR, SSS, PhilHealth, and Pag-IBIG.

Project 4: The Citizen’s Charter

   1. The Citizen’s Charter is mandated by the Anti-Red Tape Law (RA 9485).
   2. A total 4,000 government offices including LGUs complied with the preparation, dissemination, and implementation of
       the Citizen’s Charter.
   3. Save for the GSIS, the rest of the 10 priority agencies mandated to set up the mechanism for their respective Citizen’s
       Charter have complied.
   4. Nationwide implementation was rated by the DILG as 60.84% complete.

Project 5: Harmonization of Incentives

Investments and Incentives Code of the Philippines

   1. House Bill 5241 was approved by the House on 7 May 2009.
   2. Senate Bill 3136 (Lacson) introduced on 19 March 2009 and endorsed to the Committee on Economic Affairs where it is
       still pending.

Similar Legislation
   1. Senate Bill 2375, “Investments and Incentives Code of the Philippines” (Legarda), introduced on 4 June 2008 and
       endorsed to Committee on Economic Affairs where it is still pending.
   2. Senate Bill 1640, “Consolidated Investments and Incentives Code of the Philippines of 2007” (Villar), introduced on
       25 September 2009 and endorsed to Committee on Economic Affairs  where it is still pending.

TOP 10 BUSINESS PROBLEMS

   1. Bureau of Customs (BOC)
         Application for and issuance of permit to operate CBW takes 90 days to complete and obtain.
           - Status quo.

   2. LGU/DILG
         Securing building permits and barangay endorsements take 90-120 days. 
           - Reduction in steps to 9 from 17 steps in Muntinlupa, Taguig, Cainta, Quezon City. 

   3. Laguna Lake Development Authority (LLDA)
         Fee for application for LLDA Clearance amounting to Php360 for every Php1 million of capital.
           - Status quo.

   4. Bureau of Fire Protection (BFP)
         Inspection Fee is costly and lengthy.
           - Ongoing review and urgent resolution for inclusion in Citizens’ Charter.

   5. Bureau of Food and Drugs (BFAD)
         Application for certificate of product registration takes 90 to 120 days.
           - Computerization to reduce processing time by 50%.  Working with Medi Data, third party service provider.

   6. Department of Environment & Natural Resources (DENR)
         It takes 30-180 days to secure Approval of Exploration Permit Applications (EPA). 
         Requires clearance from DENR Secretary prior to approval by MGB Regional Director pursuant to DENRMO 2005-020
         (for applications filed after 26 August 2005).
            - Status quo.

   7. Bureau of Internal Revenue (BIR)
         It takes 8 years for a claim for tax refund on overpayment of tax liabilities to be processed.
           - For urgent policy resolution as to funding.

   8. Bureau of Immigration (BI)
         At least 60 days is required to obtain a work visa.
           - Status quo.  Visa Upon Arrival processing markedly improved.

   9. Social Security System (SSS)
         Manual posting of SSS contributions take about 1-2 months to process and complete.
           - SSS commitment for posting of manual collection list under the Anti-Red  Tape Law is now within 10 days.
   10. Philippine Health Insurance Corporation (PHIC)
         It takes 90 days to approve reimbursements and other benefits.
           - Processing of claims reduced to 60 days