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RepublicofthePhilippines l> OFFICIAL
DEPARTMENT OF nm INTERIOR AND LOCAL oo LE
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DILG-NAPOLCOM Center, IIDSA comer Qµewn Avenue.West Triangle, Qµewn ignature 0-
httpJ/www.dilg.gov.ph ?:"I. Date .
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GUIDELINES IN THE INTEGRATION OF THE ISSUANCE OF BARANGAY CLEARANCPO!.>,"°-::,O
IN THE PERMlmNG PROCESSES OF CITIES AND MUNICIPALITIES
Memorandum Circular No: 2019-177
Date: October 17, 2019

1. Background

President Duterte's 0+10 socio-economic agenda includes "increasing competitiveness

and the ease of doing business." This objective has been reiterated in the Philippine
Development Plan 2017-2022 which espouses "people-centered, clean, efficient and
effective governance." The President wants government services to be more accessible to
the people through reduced documentary requirements, processing time and
signatories for transactions. To achieve this, the administration is adopting a whole-of-
government approach that promotes simplification of government transactions, inter-
operability of government processes and strengthened linkages and coordination
among agencies.

This direction is consistent with the Ease of Doing Business and Efficient Delivery of
Government Services (EODB/EDGS) Act or RA 11032 which was signed into law by
the President on May 28, 2018. The law covers all government offices and agencies
including local government units (LGUs), government-owned and controlled corporations
and other government instrumentalities whether located in the Philippines or abroad,
that provide services covering business and non-business-related transactions in
government.

DILG also issued two (2) Joint Memorandum Circulars (JMC) to streamline business
and construction-related permits namely: DILG-DTI-DICT JMC No. 01 s. of 2016
(Revised Standards in Processing Business Permit and licenses in all Cities and
Municipalities) and DILG-DPWH-DICT-DTI JMC No. 2018-01: (Guidelines in Streamlining
the Processes for the Issuance of Building Permits and Certificates of Occupancy)." One
of the complementary reforms mentioned on both JMCs is the integration of the issuance
of Barangay Clearance in the LGU Permitting Process.

2. Purpose

2.1 This Memorandum Circular is issued to provide guidelines and standard processes
in compliance to Section 11 (f) of RA 11032 which states that "Barangay clearances
and permits related to doing business shall be applied, issued and collected at
the city/municipality in accordance with the prescribed processing time of this
Act: Provided, That the share in the collections shall be remitted to the
respective barangays".
FM.QP-AB-41.(}2jlwv.OO/ED10.DL2<n5
1
 \. ..,

Republic of the Philippines

DEPARTMENT OFTHE INTERIOR AND LOCAL GOVERNMENT
DILG-NAPOLCOM Center, EDSAcorner Q!lezon Avenue, West.Triangle, Qµezon City
http://www.dilg.gov.ph

GUIDELINES IN THE INTEGRATION OF THE ISSUANCE OF BARANGAY CLEARANCE

IN THE PERMlmNG PROCESSES OF CITIES AND MUNICIPALITIES
Memorandum Circular No: 2019-177
Date: October 17, 2019
3. Legal Compliance

3.1 Section 4 of Article X of the Philippine Constitution

''The President of the Philippines shall exercise general superv1s1on over local
governments. Provinces with respect to component cities and municipalities, and
cities and municipalities with respect to component barangays shall ensure that
the acts of their component units are within the scope of their prescribed powers
and functions."

3.2 Local Government Code of 1991

(RA 7160) Section 25 (a) National Supervision over Local Government Units

"Consistent with the basic policy on local autonomy, the President shall exercise
general supervision over local government units to ensure that their acts are
within the scope of their prescribed powers and functions. The President shall
exercise supervisory authority directly over provinces, highly urbanized cities, and
independent component cities; through the province with respect to component
cities and municipalities; and through the city and municipality with respect to
barangays."

3.3 Ease of Doing Business and Efficient Delivery of Government Services (EODB
EDGS/RA 11032)

Section ll(f) states that "Barangay clearances and permits related to doing
business shall be applied, issued and collected at the city/ municipality in
accordance with the prescribed processing time of this Act: Providedl That the
share in the collections shall be remitted to the respective barangays".

Pertinent provisions of RA 7160, specifically Art. IV, Sec 152(c) is hereby amended
accordingly.

3.4. DILG-DTI-DICTJoint Memorandum Circular No. 2016-01, "Revised Standards in

Processing Business Permits and Licences in All Cities and Municipalities

3.5 DILG-DPWH-DICT-DTI JMC 2018-01 "Guidelines in Streamlining the Processes for the
Issuance of Building Permits and Certificate of Occupancy"

FM--<ll'-,IIB-41 .00/ED10.01.2015
2
 '-" \..._,/

Republic of thePhilippines
DEPARTMENT OFTHE INTERIOR AND LOCAL GOVERNMENT
DJLG-NAPOLCOM Center, EDSA comer Q!lezon Avenue, West.Triangle, Qµezon City
http://www.dilg.gov.ph

GUIDELINES IN THE INTEGRATION OF THE ISSUANCE OF BARANGAY CLEARANCE

IN THE PERMlmNG PROCESSES OF CITIES AND MUNICIPALITIES
Memorandum Circular No: 2019-177
Date: October 17, 2019
3.6. Philippine Development Plan 2017-2022

Under Pillar 1: Enhancing the Social Fabric (Malasakit), the PDP 2017-2022 includes
strategies "to reduce corruption, achieve seamless service delivery, enhance
administrative governance, strengthen the civil service, and fully engage and
empower citizens".

4. Scope/Coverage

This policy applies only to the issuance of Barangay Clearance for business permit
and locational clearance (as a requirement for the issuance of building permit) at the
City/Municipality. Other clearances for other purposes shall still be obtained at the
Barangay.

This Circular shall cover all City and Municipal Mayors, Punong Barangays, Concerned
Local Officials, DILG Regional Directors and BARMM Minister of Local Government and
all others concerned.

S. Definitions

5.1 Applicant is any person, firm, partnership, corporation, head of government or

private institution, organization of any character applying for the issuance of
permits and clearances. (DILG-DPWH-DICT-DTI JMC 2018-01)

5.2 Barangay Clearance refers to any and all documents issued by the barangays with
or without corresponding fees as defined in their ordinances relative to or in
relation to the issuance of business permit and locational clearance by the
city/municipality or any other permit as may be required. (IRR OF RA 11032)

5.3 Barangay Clearance Fee is anamount imposed by the barangays through an ordinance
and collected by the city/municipality in relation to the issuance of business permit
and locational clearance by the city/municipality.

5.4 Barangay Ordinance is a piece of legislation enacted by the Sangguniang Barangay

and reviewed by the Sangguniang Panlungsod/Bayan.

5.5 Building Permit refers to a document issued by the Building Official to an

owner/applicant to proceed with the construction, installation, addition, alteration,
renovation, conversion, repair, moving, demolition or other work activity of a
specific

3
 .._,,,,
Republic of the Philippines
DEPARTMENT OFTHE INTERIOR AND LOCAL GOVERNMENT
DILG-NAPOLCOM Center. EDSA comer Q!iezon Avenue. West. Triangle. Qµezon City
httpJ/www.dilg.gov.ph

GUIDELINES IN THE INTEGRATION OF THE ISSUANCE OF BARANGAY CLEARANCE

IN THE PERMITTING PROCESSES OF CITIES AND MUNICIPALITIES
Memorandum Circular No: 2019-177
Date: October 17, 2019
project/building/structure or portions thereof after accompanying principal plans,
specifications and other pertinent documents with the duly notarized application
are found satisfactory and substantially conforming with the National Building
Code of the Philippines (NBCP) and its Implementing Rules and Regulation.
(DILG-DPWH DICT-OTI JMC 2018-01)

5.6 Business One-Stop Shop (BOSS) refers to a single common site or location, or a
single online website or portal designated for the Business Permit and Licensing
System (BPLS) of a Local Government Unit (LGU) to receive and process
applications, receive payments, and issue approved licenses, clearance, permits or
authorizations. (IRR of
RA 11032)

5.7 Business Permit is a document that must be secured from the city or municipal
government, usually through its Business Permits and Licensing Office (BPLO), for a
business to legally operate in the locality. ( IRR of RA 11032)

5.8 Joint Inspection Team (JIT) refers to a composite team whose members come from
the various city/municipality departments implementing business-related
regulations and local units of national agencies created and authorized by
city/municipality through an Executive Order or Ordinance to conduct joint
inspection of business enterprises instead of individual/separate inspection.
(DILG OTI-DICT JMC 2016-01)

5.9 Locational Clearance is a clearance issued by the Zoning

Administrator/ZoningOfficer to a project that is allowed under the provisions of an
ordinance of a particular City/Municipality. It is a requirement for the issuance of
Building Permit. (House and Land Use Regulatory Board - Comprehensive Land
Use Plan Guidebook)

5.10 One-Stop Shop for Construction Permit (OSCP) is a mechanism of

coordination among the Office of the Building Official (OBO), Zoning Office,
Assessor's Office, Treasurer's Office, other concerned departments or offices at the
local government and the Office of the City/Municipal Fire Marshal through co-
location of related functions and through a practical system of linkages. (DILG-
DPWH-DICT-DTI JMC 2018-01)

5.11 Working Day refers to a day where officers and employees are required to render
work. (IRR of RA 11032)

4
 Republic of the Philippines
DEPARTMENT OF TIIE INTERIOR AND LOCAL GOVERNMENT
DILG-NAPOLCOM Center, EDSA comer Qµezon Avenue, West Triang)e. Q!Jewn City
http://www.dilg.gov.ph

GUIDELINES IN THE INTEGRATION OF THE ISSUANCE OF BARANGAY CLEARANCE

IN THE PERMITTING PROCESSES OF CITIES AND MUNICIPALITIES
Memorandum Circular No: 2019-177
Date: October 17, 2019
6. Policy Content and Guidelines

All Cities, Municipalities and Barangays shall observe the following standards in the
issuance of Barangay Clearance in Business Permit and Licensing System and
Building Permit and Certificate of Occupancy (BPCO) Processes of Crties and
Municipalities.

6.1 Integration of Barangay Clearance in the issuance of Business Permit/locational

Clearance

6.1.1 Business Permit

6.1.1.1 New Application of Business Permit withCertificate of Occupancy

For new structure intended for business purposes,a barangay clearance

isno longer required if it was already provided bythe business applicant
to the City/Municipal Engineer Office or Office of the Building Official
(OBO) for securing Building Permit and Certificate of Occupancy.
(Sec 6.1.2.2 of DILG-DTI-DICTJMC 2016-01)

6.1.1.2 New application which do not require Occupancy Permit

The BPLO shall notify the concerned barangay immediately for the
issuance of barangay clearance for new application for Business Permit.

Likewise, the concerned barangay shall issue the Barangay Clearance

for new application immediately to conform to the standard time of
issuance of business permit under Sec 6.1.4 of DILG-DTI-DICT JMC
2016-01.

The Barangay Clearance will be issued and submitted by the

barangay to the BPLO and shall be released to applicants together
with the business permits.

6.1.1.3 Renewal of Business Permit (Pre-audit)

Barangay Clearance is a requirement for the renewal of Business

Permit. It shall be issued prior to renewal of Business Permit
provided thatthebusiness is compliant to applicable laws
andregulatory bodies such as Fire Safety Inspection Clearance
(FSIC), occupational and safety standards and other similar
requirements that will ensure

FM<IP-A8-41-41./ll,v. 10.01.20l5
5
 \..,./
'-'
Republicof the Philippines
DEPARTMENT OFTIIE INTERIOR AND LOCAL GOVERNMENT
DII.G-NAPOLCOM Center, EDSA comer Qµezon Avenue, West.Triangle, Q!Jezon City
httpJ/www.dilg.gov.ph

GUIDELINES IN THE INTEGRATION OF THE ISSUANCE OF BARANGAY CLEARANCE

IN THE PERMITTING PROCESSES OF CITIES AND MUNICIPALITIES
Memorandum Circular No: 2019-177
Date: October 17, 2019
public safety, health and welfare in all workplaces based on findings
conducted by JIT or by the City/Municipality.

6.1.2 Integration of Barangay Clearance in the issuance of Locational Clearance

as a requirement for the issuance of Building Permit

6.1.2.1. The Zoning Officer of the LGU shall notify concerned Barangay for the
issuance of Barangay Clearance for any application for Locational
Clearance for Building Permit.

6.1.2.2. The Barangay Clearance shall be issued and submitted by the

concerned Barangay to the Zoning Officer who shall release the
same together with the Locational Clearance.

6.2 Payment for Barangay Clearance Fee

6.2.1 The payment for the Barangay Clearance Fee is integrated in The Order
of Payment (ToP) for Business Permit and Building Permit, together with
the other authorized fees and charges.

6.2.2 The authorized City/MunicipalTreasurer shall collect payment and issue

the corresponding Official Receipt upon receipt of the payment from the
applicant.

6.3 Roles and Responsibilitiesof Cities, Municipalities and Barangays

6.3.1Cities/Municipalities

6.3.1.1 Enact ordinances and implement requisite orders and directives

relative to the new standards and other complementary reforms for
business and issuance of locational clearance for Building permits.

6.3.1.2 Notify concerned Barangay of any application for Business Permits

and Locational Clearance for Building Permit for approval or
disapproval of issuing Barangay Clearance. If no action has been taken
by the Barangay within three (3) working days upon notice from
Cities/Municipalities on the application, same shall be deemed
approved.

6.3.1.3 Integrate Barangay Clearance fees in The Order of Payment (ToP) in

the assessment for Business and Building Permit fees.

FM-QP-AB-41.(J2/R,,o,.oq/ED.10.0LJ01S
6
 \_.I

Republicof the Philippines

DEPARTMENT OF TIIE INTERIOR AND LOCAL GOVERNMENT
DILG-NAPOLCOM Center, EDSA comer Q!Jezon Avenue, WestTriangle, Qµezon City
http://www.dilg.gov.ph

GUIDELINES IN THE INTEGRATION OF THE ISSUANCE OF BARANGAY CLEARANCE

IN THE PERMITTING PROCESSES OF CITIES AND MUNICIPALITIES
Memorandum Circular No: 2019-177
Date: October 17, 2019

6.3.1.4 Collect Barangay Clearance fees as stated in the Barangay Ordinance.

6.3.1.5 Issue official receipt to the applicant corresponding to the

totalamount indicated in the Order of Payment (ToP) including
Barangay Clearance fees.

6.3.1.6 Release Barangay Clearance to the applicants in the city/municipal

Business Permit and Licensing Office or Office of the
BuildingOfficial.

6.3.1.7 Remit the collected Barangay Clearance Fees to concerned

Barangay not later than seven(7) working days of the ensuing month
with the list of the issued Business Permit and Building Permit.

6.3.2 Barangays

6.3.2.1 The Sangguniang Barangay shall enact an ordinance relative to

Barangay Clearance fees on business permit andlocational clearance
for building permit.

6.3.2.2 The Sangguniang Barangay shall pass a resolution authorizing the

City/Municipal Treasurer to collect fees for Barangay Clearance for
Business permit andlocational clearance purposes.

6.3.2.3 For New Application of Business Permit and Building Permit

6.3.2.3.1 Upon receipt of the Notice for the Application of Business or

Building Permit, immediately visit the location and conduct
ocular checking to verify the status of the location subject of
the application.

6.3.2.3.2 For new business application, issue Barangay Clearance

immediately to conform to the standard time of issuance of
Business Permit under Sec 6.1.4 of OILG-OTI-OICTJMC 2016-
01.

6.3.2.3.3 For locational clearance, issue Barangay clearance not more

than three (3) working days from application at the
city/municipality.

FM-OP--AB-41--01/llev.oq/EDl0.01.2015
7
 Republicof thePhilippines
DEPARTMENT OFTHE INTERIOR AND LOCAL GOVERNMENT
Dll.G-NAPOLCOMCenter. EDSA comer Q!iemnAveuue, Wat.Triangle, Qµezon City
http://www.dilg.gov.ph

GUIDELINES IN THE INTEGRATION OF THE ISSUANCE OF BARANGAY CLEARANCE

IN THE PERMITTING PROCESSES OF CITIES AND MUNICIPALITIES
Memorandum Circular No: 2019-177
Date: October 17, 2019

6.3.2.4 For Renewal of Business Permit

6.3.2.4.1 In preparation for Business Permit renewal, conduct inspection

on businesses three (3) months prior to renewal. Issue Barangay
Clearance to businesses/establishments compliant with
applicable laws and other regulatory bodies (Sec. 6.2.2 of DILG
DTI-DICT JMC 2016-01) establishments through the BPLO upon
renewal.

6.3.2.5 Monitoring of Business Operations and Construction Activities

6.3.2.5.1 Monitor and ensure that all business operations and structure
constructed is consistent of what was applied for.

6.3.2.5.2 Inform in writingthe City/MunicipalMayor for immediate action

in cases of any illegal acts committed by business/building
owners/applicants.

6.3.2.6 Issuance of Barangay Clearance

6.3.2.6.1 Issue and submit Barangay Clearance to City/Municipal

Business Permit and licensing Office or Zoning Office.

7. Regional Offices

All regional and provincial offices of DILG are hereby directed to cause the
immediate and widest dissemination of this Memorandum Circular to all cities
and municipalities.

8. References

8.1 Republic Act 11032 or the Ease of Doing Business and Efficient Delivery of
Government Services (EODB/EDGS) Act

8.2 DILG-DTI-DICT Joint Memorandum Circular No. 2016-01, "Revised Standards in

Processing Business Permits and licences in All Cities and Municipalities

F-1-02/lltt.0Q/£010.01.2015
8
 \......,, '-""
Republic of thePhilippines
DEPARTMENT OFTHE INTERIOR AND LOCAL GOVERNMENT
DILG-NAPOLCOM Cente£, EDSA cmner Quezon Avenue, West.Triangle. Quezon City
http://www.dilg.gov.ph

GUIDELINES IN THE INTEGRATION OF THE ISSUANCE OF BARANGAY CLEARANCE

IN THE PERMlmNG PROCESSES OF cmEs AND MUNICIPALITIES
Memorandum Circular No: 2019-177
Date:October 17, 2019
8.3 DILG-DPWH-DICT-DTI JMC 2018-01 "Guidelines in Streamlining the Processes for
the Issuance of Building Permits and Certificate of Occupancy"

8.4 Implementing Rules and Regulations of RA 11032

8.5 A Guide to Comprehensive Land Use Plan Preparation, Volume 3 (Model Zoning
Ordinance} by Housing and Land Use Regulatory Board (HLURB}

9. Annexes

Annex 1: Proforma of Sample City/Municipality Ordinance

Annex 2: Proforma of Sample Barangay Ordinance

10. Effectivity

This Memorandum Circular shall take effect immediately.

11. Approving Aut

Secreta 7
Department of the lnterioHnd Local Government

12.Feedback

For related concerns, kindly contact the Bureau of Local Government Development
Department of the Interior and Local Government at telephone number (02) 8925- 0356
or at Telefax number (02} 8927-7852 and/or email at localfiscal.blgd@gmail.com.

FM-<ll'-AIM1 -0CVED10.02.2015
9
 PROPOSED CITY ORDINANCE NO. _
Series of 2019 ANNEX 1
AN ORDINANCE ON COLLECTION OF CORRESPOND/NG BARANGAY CLEARANCE FEE IN THE
APPL/CATION FOR ANY BUSINESS RELATED TRANSACTIONS

WHEREAS, there is a need to streamline/simplify the process of business registration in the City of
toprovide a more efficient and effective revenue collection and to promote a
friendlier atmosphere for taxpayers and investors;

WHEREAS, when regulations are simple and transparent entrepreneurs need not to suffer from
red tape and time consuming transactions;

WHEREAS, the EODB ACT of 2018 or Republic Act 11032, otherwise known as "An Act Promoting
Ease of Doing Business and Efficient Delivery of Government Services was signed into law seeks to
make the process of putting up and running a business in the Philippines easier and more efficient.

WHEREAS, Section ll(f) of RA 11032 provides that "Barangay clearances and permits related to
doingbusiness shall be applied, issued and collected at the City/Municipality in accordance with
the prescribed processing time of said Act. Provided, that the share in the collections shall be
remitted to the respective barangays; and

WHEREAS, Barangays in the City/Municipality of ,enacted Barangay

Ordinances to authorize the City/Municipality of toissue barangay clearance
and collect corresponding barangay clearance fee in the application for any business
related
transactions subject to the remittance of the aforesaid fees to the barangay and the conditions
hereunder.

NOW THEREFORE, be it ORDAINED as it is hereby ORDAINED by the Sangguniang Panglungsod of

inasession duly assembled the following:

SECTION 1. Coverage. This policy applies only to the issuance of Barangay Clearance for business
permit and locational clearance (as a requirement for the issuance of building permit) at the
City/Municipality. Other clearances for other purposes shall still beobtained at the Barangay.

This Circular shall cover all City and Municipal Mayors, Punong Barangays, Concerned Locai
Officials, DILG Regional Directors and BARMM Minister of Local Government and all others
concerned.

SECTION 2. Definition of Terms. The words and phrases used in this ordinance are hereby defined
as follows:

Barangay Clearance - refers to any and all documents issued by the barangays with or
without corresponding fees as defined in their ordinances relative to or in relation to the
issuance of business permit and locational/zoning clearance by the city/municipality or any
other permit as may be required. (IRROF RA 11032)

Barangay Clearance Fees- is an amount imposed by the barangays through an ordinance

and collected by the city/municipality in relation to the issuance of business permit and
locational clearance by the city/municipality.
 \.._.,,

Business Permit - is a document that must be secured from the city or municipal government,
usually through its Business Permits and licensing Office (BPLO), for a business to legally operate
in the locality. (IRR of RA 11032)

Locational Clearance- is a clearance issued by the Zoning Administrator/Zoning Officer to a

project that is allowed under the provisions of an ordinance of a particular City/Municipality. It is
a requirement for the issuance of Building Permit. (House and Land Use Regulatory Board -
Comprehensive Land Use Plan Guidebook)

SECTION 3. Authority to collect Barangay Clearance Fee of Business Related Transactions-

The City/Municipality of is given the authority to collect Barangay Clearance Fee
subject to the remittance to the subject Barangay.

SECTION 4. Rate of Barangay Clearance Fee to be Collected - The rate of Barangay Clearance
Fee to be collected by the City/Municipality for the issuance clearance shall be computed in
accordance with the subject Barangay Revenue Ordinance herein attached as "Annex A", and
made as an integral part hereof.

SECTION 5. Barangay Clearance Signatory - Electronic Signature of Punong Barangay concern

shall appear in all barangay clearance issued.

SECTION 6. Reporting and Remittance - The City/Municipality shall remit the Barangay Clearance
Fee collected to the subject Barangay not later than seven (7) working days of the ensuing
month with the list ofthe issued Building and Business Permit..

SECTION 7. Separability Clause. -If for any reason, a part of this Ordinance is declared illegal
or invalid, other parts or provisions hereof which are not affected thereby shall remain valid and
in full force and effect.

SECTION 8. Repealing Clause. -All previous Ordinance and rules/ regulations which are
inconsistent with the provisions of this ordinance are hereby deemed, modified or repealed
accordingly.

SECTION 9. Effectivity Clause. -This Ordinance shall take effect fifteen (15) days after its
publication.

ENACTED.
2019.

, Metropolitan Manila.

Vice Mayor and Presiding Officer

ATTESTED:

Sanggunian Secretary

APPROVED:

City/Municipality Mayor
 PROPOSED BARANGAY ORDINANCE NO. _
Series of 201 ANNEX 2
AN ORDINANCE AUTHORIZING THE CITY/MUNICIPALITY OF TO ISSUE
BARANGAY CLEARANCE AND COLLECT CORRESPONDING BARANGAY CLEARANCE FEE IN
THE APPL/CATION FOR ANY BUSINESS RELATED TRANSACTIONS SUBJECT TO THE
REMITTANCE OF THE AFORESAID FEES TO THE BARANGAY AND THE CONDITIONS
HEREUNDER

WHEREAS, under Section 152 (C) of the Local Government Code states that:

"(c) Barangay Clearance. - No city or municipality may issue any license or permit
for any business or activity unless a clearance isfirst obtained from the barangay
where such business or activity is located or conducted. For such clearance, the
Sangguniang Barangay may impose a reasonable fee. The application for
clearance shall be acted upon within seven (7) working daysfrom thefiling thereof
In the event that the clearance is not issued within the said period, the city or
municipality may issue the said license or permit."

WHEREAS, the EODB ACT of 2018 or Republic Act 11032, otherwise known as "An Act Promoting
Ease of Doing Business and Efficient Delivery of Government Services, Amending for the Purpose of
Republic Act No. 9485" was duly enacted;

WHEREAS, Section ll(f) oftheabove-mentioned Republic Act duly amended the Section 152 (c)
of the local Government Code, and provides that "Barangay clearances and permits related to
doing business shall be applied, issued and collected at the City/Municipality in accordance with
the prescribed processing time of said Act. Provided, that the share in the collection shall be
remitted to respective Barangays; and

WHEREAS, Barangay , in accordance with the above provisions, and as an

implementation of "one stop shop", hereby authorizes the City/Municipality of _
to issue barangay clearance and collect corresponding barangay clearance fee in the application for
any business related transactions subject to the remittance of the aforesaid fees to the barangay
and the conditions hereunder.

NOW THEREFORE, be it ORDAINED as it is hereby ORDAINED by the Barangay Council of

inasess ion duly assembled the following:

SECTION 1. Coverage. This policy applies only to the issuance of Barangay Clearance for
business permit and locational clearance (as a requirement for the issuance of building permit) at the
City/Municipality. Other clearances for other purposes shall still beobtained at the Barangay.

This Circular shall cover all City and Municipal Mayors, Punong Barangays, Concerned Local
Officials, DILG Regional Directors and BARMM Minister of local Government and all others
concerned.

SECTION 2. Definition of Terms. The words and phrases used in this ordinance are hereby defined
as follows:

Barangay Clearance - refers to any and all documents issued by the barangays with or without
corresponding fees as defined in their ordinances relative to or in relation to the issuance of
 '--"'
business permit and locational/zoning clearance by the city/municipality or any other permit as
may be required. (IRR OF RA 11032)

Barangay Clearance Fees- is an amount imposed by the barangays through an ordinance and
collected by the city/municipality in relation to the issuance of business permit and
locational/zoning clearance by the city/municipality.

Business Permit - is a document that must be secured from the city or municipal government.
usually through its Business Permits and Licensing Office (BPLO), for a business to legally operate
in the locality. (IRR of RA 11032)

Locational Clearance- is a clearance issued by the Zoning Administrator/Zoning Officer to a

project that is allowed under the provisions of an ordinance of a particular City/Municipality. It is
a requirement for the issuance of Building Permit. (House and Land Use Regulatory Board -
Comprehensive Land Use Plan Guidebook)

SECTION 3. Authority to collect Barangay Clearance Fee of Business Related Transactions-

The City/Municipality of is given the authority to collect Barangay Clearance Fee
subject to the remittance to the subject Barangay.

SECTION 4. Rate of Barangay Clearance Fee to be Collected - The rate of Barangay Clearance
Fee to be collected by the City/Municipality for the issuance clearance shall be computed in
accordance with the subject Barangay Revenue Ordinance herein attached as "Annex A", and
made as an integral part hereof.

SECTION 5. Barangay Clearance Signatory - Electronic Signature of Punong Barangay concern

shall appear in all barangay clearance issued.

SECTION 6. Reporting and Remittance - The City/Municipality shall remit the Barangay Clearance
Fee collected to the subject Barangay not later than seven (7) working days of the ensuing
month with the list of the issued Building and Business Permit..

SECTION 7. Separability Clause. -If for any reason, a part of this Ordinance is declared illegal
or invalid, other parts or provisions hereof which are not affected thereby shall remain valid and
in full force and effect.

SECTION 8. Repealing Clause. -All previous Ordinance and rules/ regulations which are
inconsistent with the provisions of this ordinance are hereby deemed, modified or repealed
accordingly.

SECTION 9. Effectivity Clause. -This Ordinance shall take effect fifteen (15) days after its
publication.

ENACTED.

2019.

,Metropolitan Manila.

Punong Barangay
Barangay Kagawad Barangay Kagawad