WHEREAS, there is an urgent and compelling need for improved and efficient revenue collection as an indispensable means to support the economic development and growth of the Philippines,

WHEREAS, as a means of achieving this objective, it is imperative that the effectiveness and efficiency of the government agencies tasked to implement the revenue collection system and to take custody of government revenues be constantly improved and enhanced,

WHEREAS, the task of enhancing the effectiveness and efficiency of such government agencies can be accomplished through, among others, the implementation of needed institutional reforms in the evaluation and assessment of competency and proficiency,

WHEREAS, one of the issues on governance raised by the Donor Countries in attendance at the Coordinating Group Conference held last June 19 to 20, 2000 in Tagaytay City, is the strengthening of revenue institutions and their capacity to effectively achieve their missions,

WHEREAS, the support of said Donor Countries in the country ™s development efforts is contingent, in part, in the implementation and institutionalization of such institutional reforms and capacity-enhancing measures,

NOW, THEREFORE, I, JOSEPH EJERCITO ESTRADA , President of the Republic of the Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. Conduct of the Competency Examinations. (1) Periodic Written Competency Examinations shall be conducted by the following attached agencies of the Department of Finance: the Bureau of Internal Revenue and the Bureau of Customs.

(2) The competency Examinations shall be conducted for the objectives and comprehensive evaluation of the competency and proficiency of personnel and officers of the aforesaid Agencies.

(3) Field personnel, and line officials of the concerned Agencies up to Regional Director level shall be required to take the Competency Examinations.

The Competency Examinations shall be composed of two (2) phases, namely:

The written Technical and Managerial (for line officials) Examinations; and

The Cognitive Aptitude and Personality Tests.

SECTION 2. Examination Results. (1) The results of these Examinations shall be used to aid the continuing assessment of the training and orientation requirements of each Agency, particularly with regard to foreign-assisted training.

(2) The examination results shall likewise form part of the employee records of all examinees, and could be used as one of the criteria in the selection of candidates for promotion in each of the concerned Agencies.

(3) Examinations results shall be considered as confidential information that shall not be revealed without the written approval of the Head of Agency concerned.

SECTION 3. Implementing Authority. (1) The Department of Finance shall administer the Competency Examinations for each of the aforesaid Agencies, under the supervision of an Undersecretary of Finance to be named by the Secretary of Finance.

(2) A Board of Examiners for each Agency composed of taxation and customs experts, as the case may be, from the private sector shall be tasked to prepare the questions for the Written Technical and Managerial Examination Phase of the Competency Examinations for each concerned Agency.

(3) The Commissioner of Internal Revenue and the Commissioner of Customs shall prepare and implement the appropriate issuances necessary to ensure the efficient conduct of a Competency Examination for their respective Agencies.

SECTION 4. Effectivity. This Executive Order shall take effect immediately.

DONE in the City of Manila, this 21st day of July, in the Year of our Lord, two thousand.

(SGD.) JOSEPH EJERCITO ESTRADA

By the President:

(SGD.) RONALDO B. ZAMORA
Executive Secretary