HOUSE ENTATIVES

RECEIVED
Republic of the Philippines | DATIS.Q JU) 2013
HOUSE OF REPRESENTATIVES — yyy: [2
Quezon City ae

SEVENTEENTH CONGRES: x
First Regular Session RISISTRATION UNTT
BILLS AND iNDEX SERVICE

House Bill No. 50

Introduced by Rep. LAWRENCE LEMUEL H. FORTUN

EXPLANATORY NOTE

This bill seeks to set a policy direction in the formulation of programs for the
protection and sustainable management of our forests.

Philippine Forests are among the most diverse in the world and considered as
one of the world’s richest source of plant and animal species but it is also considered
as one of the most threatened, Our forest covers have been estimated to have been
reduced to 18.3% in 1999 and is estimated to be shrinking by 2% every year. The
causes of loss to our forests are attributed to commercial and illegal logging,
{ conversion, population growth, migration and fuel wood harvesting,

It is crucial that the country adopt a systematic, coherent and responsive forest
management system to restore the integrity of our forest ecosystem. This bill
recognizes the Sustainable Forest Ecosystems Management (SFEM) strategy as the
principal policy framework for all programs in the forestry sector, The bill prioritizes
the protection and rehabilitation of our forest systems through regeneration or
restoration of natural forests. It likewise recognizes the role and respects the rights of
the stakeholders such as the local government units, the local community and the
indigenous peoples.

Several versions of this bill have been filed in the 14", 15" and 16" Congress
in cognizance of the importance and urgency in addressing the need for dn effective,
efficient and sustainable forest ecosystem. It is hoped that in the 17" C@ngress, this
bill will finally become a law.

In view of the foregoing, passage of this bill is yrgently sought.



SeovaMmawne

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

House Bill No. 50

Introduced by Rep. LAWRENCE LEMUEL H. FORTUN,

AN ACT
PROVIDING FOR THE PROTECTION, REHABILITATION, AND.
SUSTAINABLE
MANAGEMENT OF FOREST ECOSYSTEM AND FOR OTHER PURPOSES

Be it enacted by the senate and House of Representatives of the Philippines in
Congress assembled.

CHAPTER I
BASIC FORESTRY POLI

Section 1. Short Title. - This Act shall be known as the “Sustainable Forest
Management Act”

Section 2, Basic Policy. — Pursuant to the provisions of the Constitution to
promote the general welfare and social justice in all phases of national development,
protect and advance the right of the Filipino people to a balance and healthful ecology
in accord with the rhythm and harmony of nature, and to conserve and develop the
patrimony of the nation, the State hereby adopts the following policies relative of the
management, development, and conservation of forest ecosystem and resources
therein:

(a) Permanency of Forest Land. - The specific limits of forest lands shall be
fixed, delineated and demarcated on the ground and thereafter, shall not
be altered except through an act of Congress.

(b) Forest Resources to Promote the Common Good. - The use and
conservation of forest lands and the resources therein shall bear social,
ecological, biological and economic functions, responsibility, and
accountability to promote the common good of the present and future
generations

(c) Climate Change Mitigation or Adaptation - The mitigation of or
adaptation to climate change shall be vital components in the
conservation, management, protection and development of forest lands
and natural resources.



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(4)

(3)

(6)

Good Governance, - Good governance shall be practiced in the
management, conservation, protection, and development of forest lands
and the resources therein.

In carrying out the above polices, the following strategies shall be
pursued:

Categorization of Forest Lands. — Forest lands shall be categorized as
protection or production forest lands in order to guide managers on the
intent of development and to obtain the most beneficial use for common
good;

Watershed as the Basic Forest Land Management Unit. - Protection and
production forest lands shall be partitioned and planned into forest
management units based on natural topographic and hydrologic
boundaries and shall consider the watershed continuum approach which
adopts a holistic inter-relationship between the upstream and downstream
areas in order to carry out efficiently the rational ecological treatment of
the entire landscape from the mountain down to the coast.

Community-Based Forest. Management (CBFM) Founded on
Empowerment of Local Communities and Indigenous Peoples with
Multi-Sectoral Participation and Support, — Vesting access rights and
responsibilities to forest-dependent local communities and indigenous
peoples to undertake sustainable conservation, protection, management
and development of forest ecosystems shall have precedence over other
strategies. The CBFM shall have the support of the Department of
Environment and Natural Resources, the National Commission on
Indigenous Peoples (NCIP) and the local government units (LGUs). ‘The
participation of the private and other sectors in the CBFM shall be
encouraged and promoted in conformity with pertinent regulations;

Protection and Rehabilitation of Forest Ecosystem as Priority Concerns
— The protection of forest ecosystem, as well as rehabilitation through
reforestation and afforestation of the degraded forest ecosystem, shall be
given priority to mitigate climate change, improve and conserve
biodiversity, enhance ecosystem functions and services, and provide
long-term economic benefits;

Recognition of the Indigenous Peoples’ Sustainable Forest Management
Practices. - The management of forest lands in ancestral lands and
domains shall recognize and promote the sustainable forest management
practices of the indigenous peoples;

Security of Tenure of Stakeholders. - Pursuant to the principles of
sustainable and multi-use forest management and equitable access to
forest resources, a secured tenure shall be guaranteed to stakeholders
concerned;


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(7) Investment and Public-Private Partnership. - Investments and public-
private partnership shall be hamess through favorable incentives that
promote the acceleration of the conservation and development of the
forest lands and resources therein; and

(8) Professionalism in Forest Service. — A dynamic professional and people-
oriented forest service shall be established and fully supported by the
government,

Section 3. Scope and Coverage. - The provision of this Act shall apply to all
forest lands and forest resources therein: Provided, That all forests and. forest
resources found in protected areas established under the National Integrated Protected
Areas System (NIPAS) shall: be sustainably managed and developed following the
provisions of Republic Act NO, 7586 or the NIPAS At of 1992; Provided, further,
‘That the rights of indigenous cultural communities or indigenous peoples to their
ancestral lands and domains shall be respected, and all such lands within ancestral
domains and ancestral land claims shall be managed and developed in accordance
with this Act and the provisions of Republic Act No. 8371 or “The Indigenous People
Rights Act of 1997”,

All forest lands and forest resources therein under the administrative
jurisdiction of the Autonomous Region of Muslim Mindanao (ARMM) shall be
managed, developed and conserved in accordance with this Act and the Regional
Sustainable Forest Management Act of 2003 of the ARMM.

Section 4. Definition of Terms. - As used in this Act, the term:

(a) Adaptation shall refer to the adjustment in natural or human systems in
response to actual or expected climatic stimuli or their effects, which
moderates harm or exploits beneficial opportunities.

(b) Afforestation shall refer to the planting of trees or the artificial
establishment of forest in areas that were not previously forested.

(c) Agro-forestry shall refer to a strategy for the sustainable management of
lands which increases their overall productivity of properly combining

‘icultural crops and/or livestock with forest crops and/or livestock with
forest crops simultaneously or sequentially through the application of
management practices which are compatible with the local climate,
topography, slope, soil, as well as the cultural patterns or customary laws
of local population,

(d) Ancestral domain shall refer to all areas generally belonging to
indigenous cultural communities or indigenous peoples (ICCs/IPs) as
defined in Republic Act No. 8371.

(e) Ancestral lands shall refer to lands occupied, possessed and utilized by
members of the ICCs/IPs as defined in Republic Act No. 8371.

(8) Biological diversity or Biodiversity shall refer to the variability among
living organisms including, inter alia, terrestrial, marine and other aquatic
ecosystems and the ecological complexes of which they are part. This
includes diversity within and between species and ecosystems.



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(g) Chain-of-Custody shall refer to the path that forest products take from the
forest to the consumer, including all manufacturing, transformation and
distribution links.

(h) Climate change shall refer to a change in climate that can be identified by
changes in the mean and/or variability of its properties and that persists
for an extended period, typically decades or longer whether due to natural
variability or as a result of human activity.

(i) Communal forest shall refer to a tract of forest land set aside and
established for and under the protection, administration and management
of a city, municipality or barangay as a source of wood material for fuel,
shelter, and manufactured products; as source of water for the
community; and as an area for ecotourism and/or environmental
protection or socioeconomic projects of LGUs consistent with sustainable
development

Gj) Co-management shall refer to the process of management in which
government shares power with resource users, with each given specific
rights and responsibilities relating to information and decision-making,

(k) Conservation shall refer to planned protection and management of
forests and their resources so as to prevent waste and ensure future use.

(1) Conveyance shall refer to any vehicle, vessel, device or animal used in
gathering or transporting forest products.

(m) Co-production agreement shall refer to an agreement or contract, entered
into by and between a qualified person and the government, for the
former to develop, utilize and manage consistent with the principles of
sustainable development, land or portion of forest land wherein both
parties agree to provide inputs and share the products or equivalent cash
value.

(n) Criteria and indicators shall refer to the set of management tools to
describe and assess a forest state or situation that should be met to comply
with sustainable forest management.

(0) Degraded forests shall refer to all forest lands containing less than five
(5) square meters in basal area per hectare of all tree species with
diameters as breast height or diameter above buttress of less than sixty-
five (65) centimeters.

(p) Delimitation shall refer to the establishment of boundaries between forest
lands, national parks/protected areas and agricultural lands as a result of a
conduct of site investigation, reconnaissance and field verification in
accordance with the criteria set by the Department of Environment and
Natural Resources.

(q) Delineation shall refer to the establishment of boundaries using visible
marker, monuments or known natural features/landmarks, among others,
as a result of the actual ground delineation.

(1) Demarcation shall refer to the establishment of boundaries using visible
markers, monuments or known natural features/landmarks, among others,
asa result of the actual ground delineation.

(s) Denuded forest lands shall refer to forest lands that are devoid of forest
tree cover.

() Department shall refer to the Department of Environment and Natural
Resources.



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(u) Downstream Forest-based Industry shall refer to any industry other than
the primary processing plants that uses timber or other forest products as
its raw materials or inputs to produce higher value-added forest projects
like furniture, handicrafts and the like.

(v) Ecosystem shall refer to living communities, the environment they live
in, and their interactions.

(w) Ecotourism shall refer to a nature-based activity managed by the local
community with government support whose primary goals are
conservation and enhancement of natural resources while providing
economic benefits to the local community without endangering the
sociocultural practice of its people.

(x) Environmental Impact Assessment (EIA) shall refer to the process of
predicting the likely environmental consequences of implementing a
project. or undertaking and designing the appropriate preventive,
mitigating or enhancement measures,

(y) Environmental Impact Assessment (EIA) System shall refer to the
organization, administration, and procedures that have been
institutionalized pursuant to Presidential Decree No. 1586 for purposes of
assessing the significance of the effects of any project or undertaking on
the quality of the physical, biological, and socioeconomic and designing
the appropriate mitigating and enhancement measures.

(2) Expropriation shall refer to the act of buying back by the State when
public interest so requires, of forest areas under private or non-state
ownership, subject to just compensation,

(aa) Forest shall refer to an ecosystem or an assemblage of ecosystems
dominated by trees and other woody vegetation; a community of plants
and animals interacting with one another and its physical environment, A
forest may be natural or established by man as in plantation.

(bb) Forest auditing shall refer to the systematic, documented verification
process of objectively obtaining and evaluating audit evidence to
determine whether specified activities, events, conditions, management
systems, or information conform with Sustainable Forest Ecosystem
Management (SFEM) principles, criteria and indicators.

(ce) Forest certification shall refer to the Department system of certifying
forest management units (FMUs) as fully satisfying the forest certification
standards consisting of the SFEM principles, criteria and indicators based
on third-party initial forest auditing leading to the award of a forest
certificate to the FMU and subsequent annual forest audit to assess the
maintenance of the forest certificate,

(dd) Forest charges shall refer to the levy imposed and collected by the
government on naturally growing timber and other forest projects cut,
harvested or gathered form the forest land and from alienable and
disposable (A&D) lands.

(ce) Forest based industries shall refer to various industries that are
dependent on raw materials or products derived from forests such as, but
not limited to, wood, rattan, bamboo, vines, latex, resins, saps, essences,
fruits, flowers, or wild flora and fauna.

(ff) Forest ecosystem shall refer to a dynamic complex of plant, animal and
microorganism communities and their abiotic environment interacting as



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a functional unit where trees are a key component system, Humans, with
their cultural, economic and environmental needs are integrated therein

(gg) Forest ecosystem goods and services shall refer to goods and services
provided by a forest ecosystem including provisioning services (such as
food, fresh water, bio-chemicals, wood, fiber, fodder, and energy),
supporting natural processes (such as biodiversity maintenance,
pollination, soil formation and nutrient cycling, water infiltration,
production of atmospheric oxygen and enhancement of microclimate),
regulating environmental processes (such as water flow regime and soil
erosion regulation, carbon and climate regulation, natural hazards
protection, air quality regulation, and pest and disease regulation), and
sustaining cultures (such as cultural identity and integrity, spiritual values,
aesthetic and recreational values, ecotourism and local knowledge
systems).

(hh) Forest lands shall refer to lands of the public domain that have been
classified as such and all unclassified of the public domain. This excludes
national parks, mineral lands and agricultural lands.

(ii) Forest line shall refer to the boundary on the ground between the forest
lands and other lands of the public domain,

(jj) Forest Management Unit (FMU) shall refer to a clearly defined forest
area, managed under a set of objectives and according to a long-term
management plan.

(kk) Forest Officer shall refer to any public officer who by nature of the
appointment or the functions of the position to which one is appointed
vested by law and regulations or commissioned by competent authoriti
to execute, implement or enforce the provisions of this Act and other
related laws and regulations

(ll) Forest plantation or plantation forest shall refer to a forest stand
established by planting and/or seeding in the process of afforestation and
reforestation, The stand is either of introduced species, or indigenous
species, or their combination.

(mm) Forest products shall refer to goods derived from forest such as, but
not limited to, timber, lumber, veneer, plywood, fiberboard, pulpwood,
bark, tree, top, resin gum, wood oil, honey, beeswax, nipa, rattan, or other
forest growth such as grass, shrub and flowering plant, the associated
water, fish and game, scenic, historical and education,

(nn) Forest resources shall refer to all resources whether biomass, such as
plants and animals including its byproducts and derivatives which can be
raw material assets that can produce more value-added products, or non-
biomass such as soil, water, scenery, as well as the intangible services and
values present in forest lands or in other lands devoted for forest
purposes.

(00) Grazing land shall refer to a portion of the public domain which has been
set aside, in view of the suitability of its topography and vegetation, for
the raising of livestock.

(pp) Indicator shall refer to a quantitative, qualitative or descriptive attribute
that, when periodically measured or monitored, indicates the direction of
change of sustainable forest management.



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Sty,

(qq) Indigenous peoples (IPs) shall refer to a group of people or tribe of
indigenous Filipinos as defined or described under Republic Act NO.
8371 or “The Indigenous Peoples Rights Act of 1997”.

(11) Industrial forest plantation shall refer to any tract of land planted mainly
to timber-producing species including rubber and/or non-timber species
such as rattan, bamboo and palm, primarily to supply the raw material
requirements of wood or related processing plants.

(ss) Joint venture agreement shall refer to an agreement or contract, as
specified in the Constitution, where a company is established by the
contractor and the government with both parties having equity shares and
sharing in equity earnings.

(tt) Kaingin shall refer to forest lands which have been subjected to
unsustainable shifting and/or slash-and-burn cultivation.

(uu) Managed forest shall refer to a forest land under a deliberate system of
protection, rehabilitation and development, which include utilization of
resources, to ensure the continuous production of desired forest products
and /or services and the conservation of soil, water, wildlife and other
natural resources therein.

(vv) Mitigation in the context of climate change, shall refer to. human
intervention to address anthropogenic emissions by sources and removals
by sinks of all green house gases (GHGs), including ozone depleting
substances and their substitutes.

(ww) Multiple-use shall refer to the harmonized utilization of land, soil,
water, wildlife, recreation value, grass and timber of forest lands,

(xx) National park shall refer to the land of public domain classified as such
in the 1987 Philippine Constitution which includes all areas under the
National Integrated Protected Areas System (NIPAS) pursuant to
Republic Act No. 7586, primarily set aside and designated for the
conservation of native plants and animals, their associated habitats and
cultural diversity

(yy) Natural forest shall refer to forests composed of indigenous trees not
planted by man, whose structure, functions and dynamics have been
largely the result of natural succession processes

(zz) Non-timber forest products shall refer to all biological materials and
derivatives other than timber, which are extracted from forests for human
use.

(aaa) Old growth forest shall refer to forest which have never been subject to
human disturbance or has been so little affected by hunting, gathering and
tree cutting that its natural structure, function and dynamics have not
undergone any change that exceeds the elastic capacity of the ecosystem:

(bbb) Permit shall refer to a short-term privilege or authority granted by the
State to a person to utilize any limited forest resource or undertake a
limited activity within any forest land without any right of occupation and
possession therein.

(ccc) Person shall refer to a natural or juridical person, including local
forest-based communities or indigenous peoples organized in accordance
with law or custom.

(ddd) Production sharing agreement shall refer to an agreement in accord
with the Constitution wherein the government grants the contractor the
exclusive right to conduct development and utilization activities within a



specified area of the forest lands and it (the government) shares in the
production whether in kind or in value as owner of forest lands and/or
products therein. The contractor provides all the necessary financing,
technology, management and personnel.

(eee) Protected area shall refer to the identified portions of land and water
set aside by reasons of their unique physical and biological significance,
managed to enhance biological diversity and protected against destructive
human exploitation

(£1) Protection shall refer to the act or activities of shielding from injury or
destruction as to maintain the state of health and integrity of the forest
land and its resources.

(ggg) REDD Plus shall refer to a broad range of actions to reduce emissions
from deforestation and forest degradation (REDD), including the
conservation of carbon stocks, sustainable management of forests and
enhancement of forest carbon stocks.

(hhh) Reforestation shall refer to the planting of trees or artificial
establishment of forests in areas that were previously forested,

(iii) Rehabilitation shall refer to the reforestation and afforestation a
including mechanical measures such as contouring and terracing.

(jij) Residual or second growth shall refer to a forest, subsequent to the
cutting or harvesting the then old growth forest, and which there is more
or less adequate volume of the desired species of trees for development,
management and future harvest.

(kkk) Restoration shall refer to the bringing back of the forest land to its
original state in terms of species composition, structure, function and
productivity,

(Ill) Restoration zones shall refer to the area where restoration activities are
conducted and where the original vegetation shall be restored.

(mmm)River basin shall refer to the portion of land drained by a river and its
tributaries, encompassing the entire land surface dissected and drained by
many streams and creeks that flow downhill into one another, and
eventually into one river, the final destination of which is an estuary or an
ocean.

(nnn) Secretary shall refer to the Secretary of the Department of
Environment and Natural Resources,

(000) Selection System refers to the systematic removal of mature, over
mature and defective trees in such a manner leave adequate number and
volume of healthy residual trees of desired species necessary to assure
future crop of timber and forest cover for the protection and conservation
of soil, water and wildlife,

(ppp) Silvicultural practice shall refer to any action by man to further
improve or enhance the stand growth as a whole or of the single tree for
future use such as, but not limited to, assisted natural regeneration and
tree surgery.

(qqq) Sustainable development shall refer to the meeting of the needs of the
present generation without compromising the ability of the future
generations to meet their own needs.

(rr) Sustainable Forest Ecosystem Management (SFEM) or Sustainable
Forest Management (SFM) shall refer to the process of ecosystem-based
management of forest to achieve one or more clearly specified objectives

tivities



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of management with regard to production of continuous flow of desired
forest products and environmental services without undue reduction of its
inherent values and future productivity and without undesirable effects on
the physical and social environment.

(sss) Tenure shall refer to a privilege given by the Department to a qualified
person or juridical entity to manage and utilize forest lands and the
resources found therein, in accordance with the modalities prescribed in
the Philippine Constitution.

(ttt) Urban Forestry shall refer to the establishment and management of forest
in urban environment for the physiological and psychological well-being
of the people.

(uuu) Upper river basin (URB) shall refer to the portion of a major river
basin that extends from the ridge dividing it from other basins down to a
point where the gradient of the river has decreased to less than about eight
percent (8%), the gradient below the level at which erosion becomes
deposition, which generally has several tributaries, and whose catchments
are referred to as watersheds.

(vw) Uplands shall refer to land areas located on slopes of more than
eighteen percent (18%)

(www) Vulnerability assessment shall refer to an analysis of the relationship
between natural and anthropogenic hazards and river basins and
watershed, It identifies the strength and weaknesses of the recipient
subject in relation the identified hazard.

(xxx) Vulnerable areas shall refer to areas in danger of being adversely
affected by gradual or sudden changes in climate, including the physical
and biological components as well as the socioeconomic status of
communities therein,

(yyy) Watershed shall refer to a land area drained by a stream or fixed body

of water and its tributaries having a common outlet for surface runoff.

) Watershed continuum shall refer to an area consisting of the

watershed and its divide including its connection from the headwaters to

the reef.

(aaaa) Watershed Ecosystems Management (WEM) or Watershed
Continuum Management (WCM) shall refer to a management system
that shall provide the optimum social, cultural, economic and
environmental benefits to the greatest number of people particularly those
living in, adjacent to, or downstream of, individual watershed areas, while
maintain the biological and cultural heritage of the country. It is based on
the following guiding principles: ecological sustainability, social and
cultural sustainability, economic sustainability and institutional
sustainability.

(bbbb) Wildlife shall refer to wild forms and varieties of flora and fauna in all
developmental stages.

(cece) Wood-based industries shall refer to various industries that use wood
as the principal raw material including, but not limited to, Sawmilling,
veneer and plywood and wood-bound manufacturing and pulp and paper
making as well as furniture and secondary processed wood products
manufacturing

¢

CHAPTER IT


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FOREST LANDS

Section 5. Permanent Forest Lands. - All lands of the public domain
classified as forest lands by the Department including the remaining unclassified
lands, shall comprise and be maintained as permanent forest lands of the country. The
reclassification of forest lands and/or any changes in the forest lines shall require an
act of Congress,

Section 6, Establishment of Forest Line, - Within two (2) years upon the
effectivity of this Act, the Department shall undertake the actual ground survey and
verification of the limits of the permanent forest lands using a basis all existing Land
Classification (LC) maps, the latest forest cover data of the National Mapping and
Resource Information Authority (NAMRIA) from its satellite imagery interpretations,
and other available and reliable sources of information,

Within five (5) years upon the effectivity of this Act, forest boundaries of the
forest lands shall be demarcated and clearly marked on the ground by conerete
monuments at certain fixed distances, visible cut lines, sign boards, and uniformly-
spaced distinctive trees maintained at all time between the concrete monuments.

Upon approval of this Act, the Congress shall provide funds to the Department
to carry out the establishment of the forest lines.

Records pertaining to the specific limits of forest lands shall be made available
to the public upon request. Moreover, the Department shall furnish all provincial,
municipal and city governments’ copies of the maps of permanent forest lands located
within their respective territorial jurisdictions

Section 7. Sub-classification of Forest Lands. ~ The forest lands shall be

sub-classified into the following categories to primary use:

(a) Protection forest lands shall consist of all mossy and old-growth forests;
freshwater, swamps and marshes; all areas along the bank of rivers and
streams, and the shores of the seas and lakes throughout their entire
length and within a zone of three (3) meters in urban areas, twenty (20)
meters in agricultural areas, and forty (40) meters in forest areas, along
their margins which are subject to the easement of public use in the
interest of recreation, navigation, floatage, fishing and salvage shall also
be sub-classified as protection forest lands. All extractive activities such
as, but not limited to, logging and mining are banned in protection forest
lands: Provided, That the provisions of the IPRA shall be respected
Provided, further, That restoration zones shall be designated in areas
surrounding or adjacent to protection forest lands and, thereafter, shall
become part of protection forest lands; and

(b) Production forest lands shall be all forest lands not sub-classified as
protection forest lands as defined in this section, and shall be devoted to
the production of timber and/or non-forest products or the establishment
of industrial tree plantations, tree farms, communal forests, agro-forestry,
grazing, or as multiple-use forests including water-based energy such as,


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but not limited to, hydro and geothermal power generation areas
Provided, That, together with pockets of areas referred to in paragraph
(a) of this section, if present, production forest lands shall be managed
and developed as part of FMUs in accordance with the Department-
approved management plans based on sustainable forest management
Provided, further, That ancestral domains located within production
forest lands shall be governed by Republic Act No. 8371 or the IPRA
law,

CHAPTER II
ADMINISTRATION AND PLANNING FOR SUSTAINABLE MANAGEMENT
OF FOREST LANDS

Section 8. Jurisdiction and Control of Forest Lands and Forest Resources,
~ The Department shall be the primary agency responsible for the conservation,
management, development and utilization of all forest lands and the unclassified lands
of the public domain including all the resources found therein. In coordination with
the LGUs and other government agencies, the Department shall ensure that forest
lands and unclassified lands of the public domain are managed, conserved, developed,
utilized and protected consistent with the policies and strategies promulgated in this
Act. The utilization and development of forest lands and unclassified lands of the
public domain including the natural resources therein shall be undertaken in
accordance with the Department-approved management plans: Provided, That
management plans for protected areas shall be prepared in accordance with the
provisions of the NIPAS Act.

Section 9. Partitioning of Forest Lands into Forest Management Units
(FMUs). ~ For the purpose of assigning respective areas of operations and
management of forest lands, these shall be partitioned into FMUs based on the LGU
jurisdiction and ancestral domain found therein: Provided, That in case of any
unresolved boundary conflicts between or among adjoining LGUs, the Department
shall define the FMU boundaries along the areas of conflict: Provided, further, That
each existing area covered by an approved tenure instrument shall be considered as
FMU.

Section 10. Tenure Instrument, ~ The assignment of open-access /untenured
FMU-level management to LGUs and other stakeholders shall be determined by the
Department in accordance with appropriate rules and regulations: Provided, That
existing and valid tenure instruments shall continue under their terms and conditions

Section I, Forest Lands Under Management of Other Agencies. ~ Forest
lands or portions thereof which have been placed by law under the administration and
management of other government agencies or private power/water utilities service
providers, shall be included in the partitioning of forest lands into appropriate
categories consistent with the purpose of the assigned forest lands into appropriate
categories consistent with the purpose of the assigned forest lands as provided for in
Section 7 of this act, and shall remain under the administration and management of
the agency or utilities service provider concerned: Provided, That the Department
shall exercise oversight power over FMU planning, management, utilization and
assessment of all forest resources in these areas. All such agencies or service


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providers shall be guided by the CBFM strategy as described in Section 2 of this Act,
and shall be encouraged and supported by the Department.

Section 12, Private Sector Participation in Management of Forest Lands, -
Private sector participation in management of forest lands shall be encouraged. ‘The
Department shall identify and set aside suitable forest areas for private sector
development and management and, together with the Board of Investments, shall
formulate and provide a set of incentives of the private sector for this purpose.
Private sector participation shall be undertaken through joint venture, production
sharing agreement, or co-production with concerned FMU management. All forest
lands, currently held by the private sector shall continue to be sustainably managed by
such private sector under the terms and conditions of their existing tenure instruments,
subject to the forest certification system described in Section 36 of this Act.

Section 13. Forestry Planning System, ~ The Department shall institute and
oversee the implementation of a forestry planning system consisting of the following
hierarchy of plans, which shall be regularly updated:

(a) Forestry Master Plan - The master plan shall include a multi-faceted
analysis of the forestry sector, its strengths, weaknesses, opportunities and
threats including vulnerabilities and threats resulting from climate change:
set long-term goals and medium-term objectives, formulate programs to
guide the long-term development of the forestry sector and attainment of
medium-term targets, and specify the requirements for the implementation
of the development programs. The master plan shall be prepared by the
Department in collaboration with other stakeholders and submitted to the
President of the Philippines through the National Economic and
Development Authority (NEDA) for approval, The master plan shall be
reviewed every five (5) years to be attuned with current and emerging
issues and developments,

(b) River Basin Master Plans. ~ River basin master shall be in accord with the
master plan for the forestry sector and shall focus on enhancing the
delivery of various forest ecosystems services in the river basin, with
emphasis on: (1) enhancing forest ecosystems adaptation to and
mitigation of climate change; (2) ecosystem-based adaptation that
implements a range of strategies for the management, conservation and
restoration of forest ecosystems to provide services that enable people to
adapt to the impacts of climate change; and (3). provisions of multiple co-
benefits such as conservation of biodiversity, enhancement of carbon
stocks for mitigating climate change, supplying of water and various
economic products, and generation of livelihood and income for local
communities, by means of ecosystem-based adaptation measures, The
river basin master plans shall be prepared every five (5) years by the
concerned regional offices) of the Department in collaboration with the
Regional Development councils and other stakeholders and submitted to
the Department Secretary for approval.


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(c) FMU Management Plans. - As co-managers of the FMU, LGUs or the
private sector and other stakeholders concerned, following a Department
prescribed template, shall be responsible in preparing a five (5) year FMU
management plan under the supervision of accredited registered private
forester(s) and in accord with the river basin master plan for approval of
the concerned Department regional office.

(d) Annual Operations Plans. - To facilitate the implementation of the FMU
management plan, a detailed annual operations plan in accord with the
FMU management plan shall be prepared by the FMU concerned under
the supervisions of accredited registered private forester(s). The FMU
management and operations plans shall conform to the Department’s
criteria and indicators for sustainable forest ecosystem management.

CHAPTER IV
SUSTAINABLE FOREST ECOSYSTEM MANAGEMENT PROGRAMS AND
OPERATIONS

Section 14. Assigning the Implementation of National or Local Forestry
Programs to CBFM. ~ All national and local programs, their component projects and
operationalization of plans related to the management, development, protection and
conservation of forest ecosystems shall be implemented according to the C!
approach as described in this Act. A memorandum of agreement shalll be entered into
by all concerned FMUs which shall stipulate the resources allocated for such program
or project and the benefit-sharing arrangements between FMU operators and project
proponents. ‘These programs or projects shall include forest restoration, reforestation
and afforestation, industrial tree plantations, agro-forestry, biomass energy projection,
nonetimber forest products (NTFP) development, Payment for Ecosystems Services
(PES), and REDD Plus.

Section 15. Carbon Sequestration and Storage. ~ As part of climate change
mitigation and adaptation measures and to enhance ecosystems services, carbon
sequestration and storage shall be included in the forestry master plan, river basin
master plans, management framework plans, FMU management plans and annual
operations plans. The Department shall provide support to FMU managers in
implementing operations that increase carbon sequestration and storage such as PES,
as well as the applicable financing made available for the purpose. The PES, REDD
Plus, and other sources shall be accessed to provide financing for carbon sequestration
and storage activities of FMU operators. The Department, in collaboration with the
Climate Change Commission shall formulate the regulations governing carbon
trading

Section 16. Ecotourism, - The FMU management shall enhance and
conserve the ecotourism values found in forest lands. Timber harvesting for whatever
purposes, commercial-scale collection of NTFP, farming, grazing, aquaculture, and
infrastructure development shall be prohibited in ecotourism zones of the FMU,
except as part of the tourism development program of the FMU and as indicated in the
approved FMU management plan. The design and construction of tourism
infrastructures shall be in accord with enhancement of the natural characteristics
and/or attraction of the site


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Section 17. Resources Management for Non-Timber Forest Products
(NTFP). — The FMU management for non-timber forest production shall be
conducted in appropriate areas. Harvesting of NTFP shall be on sustainable basis,
promote productivity of the NTFP resources, and minimize any disturbance of the
soil, water, and biodiversity resources of the site. Domestication of resource base of
NTEP shall be encouraged.

Section 18. Silvicultural Systems, ~ Silvicultural systems that are appropriate
to the type of forest and other considerations shall be elected and applied in the timber
production zones. Regeneration of harvested natural forest stands shall be based on
natural regeneration processes and assisted natural regeneration, The Department
shall conduct a review of silvicultural systems including the forest management
practices of indigenous peoples and institute improvements that ensure sustainability
of timber management and increase in productivity. Clear-cutting shall be followed
immediately by tree planting as well as maintenance of planted trees until they are
fully established.

Section 19. Agro-forestry. — Agro-forestry shall be one of the key upland
development strategies to be used in developing forest areas occupied by upland
farmers.

Section 20. Mangrove Development and Management, ~ The rehabilitation
of degraded mangrove forests through afforestatior/reforestation/enrichment planting
of appropriate mangrove species shall be intensified. Fishery production in duly
designated mangrove production zones shall promote productivity of fisher resources
and shall be accomplished without cutting the naturally growing mangroves.
Establishment of new mangrove plantations in tandem with fishpond development
(aqua-silviculture) may be allowed in mangrove production zones: Provided, That
not more than twenty percent (20%) of areas to be developed shall be devoted to
fishpond farming activities, The mangrove plantations established within the aqua-
silviculture projects may be permitted to be selectively harvested for domestic
purposes only on a sustainable basis as deemed appropriate and that the privilege to
harvest shall be granted only to the private individual, group of individuals or entity
which established within the aqua-silviculture projects may be permitted to be
selectively harvested for domestic purposes only on a sustainable basis as deemed
appropriate and that the privilege to harvest shall be granted only to the private
individual, group of individuals or entity which established and developed the said
plantations as previously authorized through an approved contract or agreement for
the purposes: Provided, That harvesting shall be limited to mangroves that are part of
the timber management zones and non-timber production zones of the FMU as
indicated in the approved FMU management plan: Provided, further, That the cutting
of mangrove trees and other associated plants within duly-designated mangrove
protection zones whether naturally growing or planted is strictly prohibited

Section 21, Mining in Forest Lands. ~ Mining shall not be allowed in
protection forest lands as an imperative measure in enhancing the protection and
conservation of various forest ecosystems services. In production forest lands, the
consent of the tenure holder and the Department approval shall be obtained:
Provided, That mined-out areas shall be immediately rehabilitated.



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Section 22. Built-up Areas in Forest Lands, — Human settlements, roads and
other infrastructures shall be designated built-up areas of the FMU

Section 23. Forest Protection. — Protection of forest lands against land-use
conversion, illegal extraction of forest products, fire, pests and diseases, invasive
species, chemicals, climate-induced causes, and other agents of forest destruction
shall be included in the forestry master plan, river basin master plans, FMU
management plans and annual operations plans.

Section 24, Urban Forestry, - As part of climate change adaptation and
mitigation measures and to enhance ecosystems services, communal forests, tree
buffers along roads and waterways, and forest/tree parks in urban areas, school
grounds, and open spaces of housing projects shall be established in cities and
municipalities. The Department and forestry research and academic institutions shall
proved technical assistance to ensure that appropriate species and technologies are
employed in the establishment and maintenance of such parks, communal forests and
tree buffers.

CHAPTER V
UTILIZATION OF FOREST RESOURCES

Section 25, Use of Forest Lands Exclusively for Forestry and Subsidiary
- The use of forest lands shall be limited to forestry and subsidiary
purposes in appropriate areas, The use of forest lands for purposes not otherwise
mentioned shall require the Department approval: Provided, That non-extractive
utilization of forest resources, particularly special uses of forest lands such as bathing
establishments, camp sites, telecommunication sites, log pond sites, salt works, and
the like, shall be allowed consistent with pertinent policies and regulations that the
Department may prescribe.

Section 26, Harvesting of Forest Products, - Harvesting of timber and
NTFP shall be based on the principle of sustainability and in consideration of the
conservation of soil, water, and biodiversity and enhancement of carbon stocks as
mentioned in this Act, In addition, the Department approval for harvesting trees shall
be subject to the conduct of a forest inventory and mapping of harvestable trees,
including chain-of-custody (CoC) numbering of harvestable trees as mentioned in
Section 35 of this Act, and reporting to the Department for the updating of the
Department’s database on harvested trees.

Section 27. Management and Utilization of Forest Resources Within Forest
Lands, - ‘The extraction of timber and NTFP, and agricultural crops, their byproducts
and derivatives, whether from natural forest, planted, or raised through application of
appropriate silvicultural and/or agroforestry practices, from forest lands, shall require
a prior permit, agreement or clearance that are deemed necessary and appropriate by
the Department as recommended by the Forest Management Bureau (FMB):
Provided, That extraction of timber and NTFP, agricultural crops, their byproducts
and derivatives from areas covered by Certificate of Ancestral Domain Titles (CADT)
or Certificate of Ancestral Land Claims (CALC) shall be governed by Republic Act
No. 8371. The transport of the se forest products from forest lands, including those
from the area of the indigenous cultural communities and indigenous peoples covered



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by CADT or CALC, shall be covered by a CoC certificate issued by the FMU
management. Relevant information in the CoC shall be transmitted to the
Department’s online database at least one (1) week prior to the actual transporting as
provided for in Section 35 of this Act.

Section 28 Management and Utilization of Forest Resources Within
Ancestral Domain, ~ All forest resources planted or raised within titled lands belong
to the owner of the land, shall have the right to sell, contract, convey or dispose of the
same without the necessity of any clearance from the Department: Provided, That the
government shall provide the appropriate incentives provided under Section 46 of this
Act.

Section 29, Administration and Utilization of Forest Resources Within
Ancestral Domain. - The utilization of forest resources within ancestral lands and
domains shall be governed by the provisions of this Act and Republic Act No. 8371
The National Commission on Indigenous Peoples (NCIP) shall coordinate and consult
with the Department in providing assistance to the indigenous peoples in the
sustainable management and development of forest resources within ancestral lands
and domains.

Any project to be implemented by a holder of a CADT or any such similar
instrument to develop or use forest lands or forest lands or forest resources therein
that would result in severe soil erosion or environmental degradation shall be subject
to an EIA in accordance with Presidential Decree No. 1151 or the Philippine
vironmental Policy, and Presidential Decree No. 1586 on Establishing an
Environmental Impact Statement System in this Act.

Section 30. Transport of Forest Products and Confiscated Forest Products
= The transport of timber and NTFP that do not cary a CoC number and is not
supported by CoC documentation, as provided for in Section 35 of this Act, shall be
prohibited, Timber and NTFP that do no carry a CoC number shall be considered as
coming from illegal sources and subject to confiscation.

Section 31. Downstream Processing of Forest Products, - To add value to
harvested forest products, further processing into finished and semi-finished products
shall be encouraged and supported. The CBFM and other FMU operations shall be
allowed to process their forest products or make them available in the open market of
raw forest products subject to restrictions on forest products transporting or to make
them available in the open market of raw forest products subject to restrictions on
forest products transporting as mentioned in Section 35 of this act and prior payment
of appropriate forest charges as mentioned in Section 50 of this Act.

Section 32. Forest- Based Industries, - To meet the demands for forest
based goods and services of a growing population, the State through the Department
shall promote the establishment, operations and development of forest-based
industries.

Section 33. Export and Sale of Locally Produced Wood Products. ~ Logs
and raw or rough lumber manufactured from such logs, derived from natural grown
trees of whatever species cut, gathered or removed from the local natural forest shall


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not be exported. Only finished and semi-finished lumber products, wood
manufactures, wood panels, and other finished wood products from such logs may be
exported by licensed exporters: Provided, That the license to export such finished
wood products shall be granted only to certified operators upon approval of their
application. The export of forest plantation shall be based on Department guidelines.

No person shall sell or offer for sale any log, lumber, veneer, plywood or other
manufactured wood products in the international or domestic market without
complying with the certification and grading rules established or to be established by
the government. Failure to adhere to the established grading rules and standards, or
any act of falsification on the volume of logs, lumber, veneer, plywood or other wood
products sold in the international or domestic market shall be sufficient cause for the
cancellation of export license, wood processing market shall be sufficient cause for
the cancellation of export license, wood processing permit, or other license or permit
authorizing the manufacture or sale of such products,

Section 34. Importation and Sale of Logs and Other Forest and Wood
Products. - Logs, lumber and other forest and wood based products may be imported
to the country subject to the registration requirements of the Department and to the
tariff and duties under the Tariff and Customs Code and quarantine regulations. Any
product manufactured or remanufactured out of imported forest and wood materials
shall be allowed to be sold in the domestic or international market subject to
compliance with grading rules and standards by the licensed finished wood product
exporter.

CHAPTER VI
MONITORING AND CONTROL OF FOREST MANAGEMENT AND
UTILIZATION

Section 35. Forest Products Chain-of-Custody (CoC) ~ The Department
shall institute a forest product CoC system to enable the tracking of transported,
processed or marketed forest products to their source. To be considered legally
harvested, all forest products from forest lands shall bear an official CoC number.

Section 36, External Monitoring and Certification Assessment of Forest
Managemnt Operations. - ‘The Department shall institute a national forest
certification system to externally monitor and assess the performance standards of
FMU operations and to ensure that forest products coming from FMUs are from
certified sustainable sources when local consumers buy them from the market.

Section 37. Forestry Information System (FIS) ~ The Department shall
establish a FIS which shall consist of comprehensive up-to-date information on the
physical, social, economic, biological and environmental components of the country's
forest lands and forest resources. It shall include a resource monitoring system to
enable the Department and its field offices to track the utilization, movement or
transfer of forest-based goods and services from the source to their end users, The
Department shall conduct forest resource inventory at least once every five (5) years
to ensure effective management.



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Section 38. Conflict Resolution, ~ The parties from within an FMU and
between or among FMUs shall be encouraged to resolve conflicts related to forest
management, development, protection, conservation and utilization between or among
themselves. Conflicts that cannot be resolved by the Department to the satisfaction of
the parties to the satisfaction of the parties in conflict shall, after exhausting all
administrative remedies, be submitted to the proper courts for resolution.

CHAPTER VIL
SUPPORT SYSTEMS

Section 39. Forestry Education. - Formal forestry education in the
Philippines shall be rationalized. A nationwide assessment of forestry schools shall be
conducted by the Commission on Higher Education (CHED). Within one (1) year
upon effectivity of this Act, the CHED shall evaluate forestry school and formulate
guidelines to be observed in the phasing-out of substandard schools in coordination
with the Department, the Board of Examiners of the Professional Regulation
Commission (PRC), the Philippine Forestry Education Network (PFEN) and the
Society of Filipino foresters, Incorporated (SFFI). The main purpose of this
rationalization is to ensure the quality of formal forestry education and establish,
support and sustain centers of excellence in forestry and environmental education to
develop high quality manpower and promote global competitiveness. The CHED
shall have the power to recommend the phasing out of substandard school in
accordance with an agreed phase-out plan that considers the impact thereof on
enrolled students.

‘The Department of Education (DepEd) shall integrate tree-planting and tree
maintenance activities as part of the school curriculum. The CHED shall include
forestry in ecology and environment courses in the general education curricula.

Section 40. Capacity-Building. — The Department shall develop and
implement a program to develop the capacity of LGUs and other stakeholders in
forestry resources management.

Section 41. Research and Development. Research and development,
invention, innovation and their utilization in science and technology education,
training and services shall be given priority. The government shall strengthen
existing research institutions such as Ecosystems Research and Development Bureau
(ERDB), the Forest Products Research and Development Institute (FPRDI) and state
universities and colleges (SUCs), among others, and support scientific and
technological capacity to climate change. Appropriate technology shall be used to
protect the environment, reduce climate change effects, increase community
adaptation to climate change and enhance their livelihood.

The Department shall coordinate with other research agencies to go into co-
financing agreements with the private sector in the conduct of researches and
developments of inventions: Provided, That the terms and conditions are beneficial to
forest ecosystems services for the country.

Section 42. Policy Research and Development. ~ The Forestry Development
Center (FDC) based at the University of the Philippines Los Baftos (UPLB)-College


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of Forestry and Natural Resources shall continue to serve as the primary policy
research and development center for forestry, environment and natural resources
management, The FDC shall perform its functions in close coordination with the
FMB of the Department and other policy institutions. It shall assist the Department in
the formulation, review and evaluation of proposed and existing policies in forestry,
environment and natural resources, To enable the FDC to carry out its mandated
function of policy research, it shall have a share in the sustainable forest ecosystem
development fund pursuant to section 55 of this Act

Section 43, Forestry Extension Services. ~ With support from the LGUs, the
nongovernment organizations (NGOs), media and other organizations, the Philippine
Information Agency (PIA), the DepEd, state-owned and private universities and
colleges, the Department shall formulate a nationwide program for sustained public
information and advocacy campaign for forest and natural resources conservation,
sustainable forest development and on climate change. Adequate and sustainable
funds to implement research, technology development and transfer programs shall be
provided by each of the aforementioned agencies and institutions under the General
‘Appropriations Act.

Section 44, Strengthening of the Forest Management Sector, ~ In order to
effectively implement the provisions of this Act, the FMB shall be transformed into a
line bureau of the Department with functions clearly defined and enumerated under
the implementing rules and regulations of this Act,

CHAPTER VIII
SYSTEM OF INCENTIVES

Section 43, Incentives for Engaging in Forest Development, ~ Incentives as
provided for by existing laws such as the National Internal Revenue Code of 1997, as
amended, and Executive Order No. 226 or the Omnibus Investment Code, among
other laws, shall be extended to encourage qualified persons, natural or juridical, to
engage in forest management activities.

Section 46. Tax Incentives for Forest Plantation Activities. - The following
tax incentives shall be granted to qualified persons engaged in forest plantation
activities within forest lands and alienable and disposable lands of the public domain:

(a) Expenses incurred in complying with the requirements of this Act shall be
allowed as deductible expenses for income tax purposes subject to the
provisions of the National Internal Revenue Code of 1997, as amended
Provided, That the deduction shall only apply to the taxable period when
the expenses were incurred; incentives granted to registered domestic
enterprises under the Investment Priorities Plan (IPP);

(b) Exemption from the payment of forest charges imposed under the
provisions of this Act;

(©) Amounts expended by the agreement holder in the development and
operation of a forest plantation prior to the commercial harvest shall be
regarded as ordinary and necessary expenses or as capital expenditure;

(d) The Board of Investments (BON) shall classify forest plantations as pioneer
and preferred areas of investment under its annual priority plan subject to
the pertinent rules and regulations;


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(e) The tenure holder shall be given priority access credit assistance being
granted by government-owned, -controlled and/or — supported financial
institutions; and

(8) Upon the premature termination of the tenure instrument at no fault of the
holder, all depreciable permanent and semi-permanent improvements such
1s roads, buildings, and nurseries including the planted and standing trees
and other forest crops introduced and to be retained in the area shall be
properly evaluated and the holder shall be entitled to a fair compensation
thereof, the amount of which shall be mutually agreed upon by both the
Department and the tenure holder, and in case of disagreement between
them, by arbitration through a mutually acceptable and impartial third
party adjudicator.

Section 47. Incentives for Forest Based Industries. ~ To enable forest-based
industries to be more efficient, competitive and economically viable, the following
incentives are hereby granted in addition to those already provided by existing laws:

(a) All processing plants or mills shall be assisted by the Department
in identifying sources of raw materials;

(b) All processing plants or mills shall be granted operating permits
for five (5) years renewable for another five (5) years: Provided,
That for processing plants owned or operated by holders of forest
management agreements or contracts shall be coterminous with
said agreements or contracts;

(©) The Department shall provide on its own or propose to the
President or to Congress, other incentives to encourage the
establishment and development of corporate, family and
community forest-based industries. Agreements or licenses over
forest areas grated to wood-based plants shall be converted into
any mode authorized in this Act. Expansion in capacity of wood-
based plants shall be encourage and the same shall be given
priority access to production forest lands and other areas available
for development as source of raw materials; and

@ The Department shall promote and strengthen the linkages among
corporate, family-based and community-based industries.

Section 48. Rewards for Informants. - A percentage of the value of
confiscated materials shall be used as rewards for informants, including Department
personnel. Additional rewards may be provided to personnel of the Department, in
addition to those provided under the Government Service Insurance System (GSIS) or
Workmen’s Compensation law. They shall also be entitled to free legal assistance
should legal cases be filed against them in the performance of official duties.

CHAPTER IX,
FOREST CHARGES, FEES AND SHARING

Section 49. Fees, and Government Shares for the Utilization, Exploitation,
Occupation, Possession of, and Activities Within Forest Lands. - The Department
shall prescribe appropriate fees and government shares for the different kinds of
utilization, exploitation, occupation, possession or activities within forest lands:



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Provided, That payment of or collection of such fees and government shares shall be
waived for parties/industries mandated by law to manage, conserve, develop and
protect forest lands and forest resources found therein, except administrative fees for
the filing and processing of applications for the issuance and renewal of licenses,
permits and agreements. Provided, further, That watershed administrators and or
service contractors that have forest management agreement with the Department shall
also be entitled to a waiver of fees, except administrative fees.

‘The Department shall recommend appropriate and equitable fees for the use of
water and forest for power generation, irrigation, domestic and industrial, and for
carbon sequestration and biodiversity benefits respectively, by parties/industries
concerned.

Section 50. Forest Charges, - There shall be collected charges on each cubic
meter of timber cut in forest lands, whether belonging to the first, second, third or
fourth group, twenty-five percent (25%) of the actual Free on Board (FOB) market
price based on species and grading; Provided, That in the case of pulpwood and
matchwood cut in forest lands, forest charges on each cubic meter shall be ten percent
(10%) of the actual FOB market price.

(a) Charges on Firewood, Branches, and Other Recoverable Wood Wastes of

Timber. - There shall be collected forest charges of ten percent (10%) of
the actual FOB market price on each cubic meter of firewood cut in natural
forest, branches and other recoverable wood wastes of timber, such as
timber ends, tops and stumps, when used as raw materials for the
manufacture of finished products.
Only third or fourth group wood can be taken for firewood. However, if
jointly authorized by the secretaries of both the Department Environment
and Natural Resources (DENR) and the Department Agriculture (DA),
first and second group may be removed for firewood purposes from land
which is more valuable for agricultural than for forest purposes.

(b) Charges on Non-Timber Forest Products. - All other forest products of
forest lands which are not covered by the preceding sections shall be
exempt from any or all forest charges, except rattan, gums and resins,
beeswax, gutta-percha, almaciga resin and bamboo which shall be charted
at ten percent (10%) of the actual FOB market price.

These forest charges shall be applied to naturally growing timber and
NTFP gathered within forest lands, alienable and disposable lands, and
private lands, All planted trees and NTFP harvested from private lands
shall be free from forest charges.

For the above purpose, the valuation and the actual FOB market price of
forest products shall be justly determined by the Department based on
prevailing market price, which shall likewise provide for the time, manner
and place of payment of such charges. The Deppartment shall allocate
fifty percent (50%) of forest charges collections to reforestation and
natural regeneration programs.

Section 51. Fees for Administrative Services Rendered by the Department. -
Fees shall be collected for various services rendered by personnel of the Department
in connection with their duties and responsibilities as may be requested by interested
parties including, but not limited to, surveying, mapping and other similar service


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activities: Provided, That administrative fees shall be waived for services rendered to
local communities or indigenous peoples in the preparation of their management plans
including timberlother resources inventory on farmers’ land: Provided, further, That
fees collected pursuant to this section shall be deposited in the local Department
offices as trust funds,

Section 52. Proper Valuation and Compensation for Ecosystems Services. -
‘The Department shall formulate and institute appropriate mechanisms for proper
valuation and fair and comprehensive pricing of forest ecosystems services provided
by the forests, including water for domestic, industrial, irrigation and power
generation, biodiversity and ecotourism with watershed ecosystems as the minimum
spatial units.

The use of various ecosystems services provided by the forests shall be
compensated. Subject to existing laws, and commercial and industrial users of water,
energy, recreation and other ecosystems services of the forests shall be charged a
watershed protection and conservation fee. These fees shall be used to fund research
and development activities, and for the conservation and management of the forests.

Local, regional and national plow back mechanisms of utilizing proceeds from
the use of watersheds, forests and forest lands for ecosystems services such as, but not
limited to, power generation, supplying domestic and irrigation water, ecotourism and
carbon trading shall be developed and promoted to finance forest protection,
rehabilitation, reforestation, afforestation, agro-forestation and development.

Section 53. Payment for REDD Plus. - Entities involved in preventing
deforestation and sequestering carbon in their FMUs shall have equitable share in the
proceeds of REDD Plus payments. The capacity of local FMU managers shall be
developed to monitor their forest resources as basis for equitable sharing in REDD
Plus payments.

CHAPTER X
APPROPRIATIONS AND FINANCIAL SUPPORT

Section $4, Appropriations, - The Secretary of the DENR shall include in
the Department’s program and issue such rules and regulations for the implementation
of the provisions of this act, the initial funding of which shall be charged against the
current year’s appropriations of the Department and thereafter included in the annual
General Appropriations Act. For LGUs, the funding requirements shall be taken from
their internal revenue allotment (IRA) and other LGU ineome.

Section 55. Sustainable Forest Ecosystems Development Fund (SFEDF). -
A Sustainable Forest Ecosystems Development Fund (SFEDF) to be administered by
the Department as a special account in the National Treasury is hereby established to
provide sustainable funds for forest protection, reforestation and forest development
and management, including the rehabilitation and preservation of watershed areas,
CBEM programs, information and educational campaign as well as scholarship
programs and policy research. At least fifty percent (50%) of the forest charges and
government share in all products removed from the forest lands, rentals, proceeds
from sales of confiscated forest products including conveyances, fines and penalties,


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and administrative fees collected shall be stet aside for the buildup of the SFEDF.
The fund may be augmented by grants, donations, endowment from various sources,
domestic or foreign, for purposes related to their functions and other innovative
funding mechanisms such as securitization of forest assets, among others.

Disbursement from the fund shall be subject to the usual accounting and
budgeting rules and regulations: Provided, That no amount shall be disbursed to
cover the operating expenses of the Department and other concerned agencies.

CHAPTER XI
OFFENSES AND PENALTIES

Section 56. Harvesting, Gathering and/or Collecting Timber or Other
Forest Products Without Authority. - Harvesting, cutting, gathering, collecting, or
removing timber or other forest products from any forest land, or naturally grown
timber inside alienable and disposable land without authority from the Secretary or
found to possess the same without pertinent required legal documents shall be
punished by imprisonment ranging from prision mayor minimum period to reclusion
temporal minimum period and/or a fine equivalent to ten (10) time the value of the
said forest product taken: Provided, That in the case of partnership, associations or
corporations, the president, managing partner and general manager shall be held
liable; and if such officer is an alien, he/she shall, in addition to the penalty, be
deported without further proceedings on the part of the Bureau of Immigration.
Offenders who are public officials shall be deemed automatically dismissed from
office and permanently disqualified from holding any elective or appointive position
in the government.

If the market value of the timber or other forest products is more than Five
hundred thousand pesos (P500,000.00), the offender shall be guilty of economic
sabotage and the imposable penalty shall be reclusion perpeua, in addition to the
payment of the fine equivalent to ten (10) times the value of said timber or forest
product, and other subsidiary penalties as prescribed above.

‘Any person, whether natural or juridical, who shall acquire or possess logs,
flitches, lumber from the economic saboteurs as defined in this section and/or use the
same logs, flitches, lumber, in any manner, shall likewise be punished with reclusion
perpetua, payment of fine equivalent to ten (10) times the market value of said logs,
flitches, lumber and subsidiary penalties provided herein.

All timber or any forest product cut, gathered, collected, removed, or
possessed and all the conveyances, machinery, equipment, implements, work animals
and tools used in connection with the violation shall be seized and confiscated in
favor of the government.

Section 57. Illegal Cutting as an Act of Economic Sabotage. ~ Any of the
acts enumerated in the preceding section when committed by any group, through
organized and systematic manner, for commercial purposes, shall constitute an act of
economic sabotage punishable with reclusion perpetua.


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The commission of any of the above prohibited acts by two or more
individuals with the aid of any mechanical device shall constitute a prima facie
evidence that the act is organized and systematic.

‘Any person, whether natural or juridical, who shall buy logs, flitches, lumber
from economic saboteurs as defined in this section, and/or use the same logs, flitches,
lumber in government infrastructure projects shall, upon conviction, be punished by
reclusion perpetua,

Section 58 Use of Mlegally Cut Timber in Government Infrastructure
Projects ‘The use of illegally cut naturally grown timber in government
infrastructure projects shall be sufficient cause for the imposition of penalties
provided in Section 56 on harvesting of forest products without authority, and Section
57, on illegal cutting as an’ economic sabotage, including the withholding of the
payment to harvesting contractor.

Section 59 Damage to Residual Trees, ~ To ensure the sustainability of the
natural forests, adequate number of residual trees and phenotypically superior mother
trees shall be marked, to be retained as part of the managed forests and as the future
timber crop, before any harvesting operation shall commence. Any marked residual
tree that is thirty percent (30%) or more damaged during such operation is subject to a
fine equivalent to four (4) times the regular forest charges and reduction of future
allowable harvest to compensate for residual losses,

Section 60. Grazing Livestock on Forest Lands Without a Permit. ~ Any
person found to have cause the grazing of livestock in forest land and grazing lands
without an authority under a lease or permit to graze, upon conviction, shall be
penalized with imprisonment of not less than two (2) years nor more than four (4)
years and a fine equivalent to ten (10) times the regular shares due in addition to
confiscation of the livestock and all improvements introduced in the area in favor of
the government: Provided, That in case the offender is a corporation, partnership or
association, the officer or director thereof who directly cause or ordered such shall be
liable, In case the offender is a public officer or employee, he/she shall in addition to
the above penalties, be deemed automatically dismissed from office and permanently
disqualified from holding any elective or appointive position in the government
service.

Section 61. Unlawful Occupation or Destruction of Forest Lands. - Any
person who, without authority from the Secretary, enters and occupies or possesses, or
engages in kainin or slash-and-burn farming and related activities for own private use
or for others, any forest land or grazing land, or in any manner destroy such forest
land or part thereof, or causes any damage to the timber stands and other forest
product found therein, or assists, aids or abets another person to do so, or sets a fire,
or negligently permits a fire to be set therein, or refuses lawful orders to vacate the
area when ordered to do so shall, upon conviction, be punished with penalties in the
amount of not less than One hundred thousand pesos (P100,000,00) nor more than
Five hundred thousand pesos (P500,000.00) and imprisonment of not less than six (6)
years and one (1) day nor more than twelve (12) years and a fine equivalent to ten
(10) time the regular. cost of rehabilitation of the occupied areas as determined by the
Department: Provided, That the maximum of the penalty prescribed herein shall be



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imposed upon the offender who repeats the same offense, and double the maximum
penalty upon the offender who commits the same offense for the third time or more.

In all cases, the court the shall further order the eviction of the offender from
the area ocoupied and the forfeiture to the government of all improvements made
therein, including all vehicles, domestic animals and equipment of nay kind used in
the commission of the offense. If not suitable for use by the Department, said
improvements, vehicles, domestic animals and equipment shall be sold at public
auction, the proceeds from which shall accrue to the SFEDF.

If the offender is an alien, he/she shall be deported after serving his/her
sentence and payment of fines, without any further proceedings. An offender who is a
government officer or employee, shall, in addition to the above penalties, upon
conviction, shall be deemed’ automatically dismissed from office and permanently
disqualified from holding any elective or appointive position in the government
service

Section 62. Illegal Conversion of City or Municipal Parks, Communal
Forests and Tree Parks in Subdivision - Any person found to have converted or
caused the conversion of a city or municipal parks or communal forest, or tree parks
within subdivisions established pursuant to Section 24 herein and Section 2 of
Presidential Decree No. 953, requiring the planting of trees in certain places, into
other uses including the construction of permanent buildings therein, or in any manner
destroys or causes any damage to the timber stands and other forest products found
therein, or assist, aids or abets another person to do so, or sets a fire, or negligently
permits a fire to be set therein, upon conviction, shall be penalized by imprisonment
of six (6) years and one (1) day to twelve (12) years or a fine of not less than One
hundred thousand pesos nor more than Five hundred thousand pesos (P500,000.00),
or both fine and imprisonment at the discretion of the court. The offender shall
likewise be imposed a fine equivalent to ten (10) times the commercial value of the
forest products destroyed without prejudice to payment of the full cost of
rehabilitation of the areas as determined by the Department: Provided, That the
maximum of the penalty prescribed herein shall be imposed upon the offender who
repeats the same offense, the double the maximum penalty upon the offender who
repeats the same offense, and double the maximum penalty upon the offender who
commits the same offense, and double the maximum penalty upon the offender who
commits the same offense for the third time or more. The court shall further order the
forfeiture to the government of all improvements made therein, including all vehicles,
domestic animals and equipment shall be sold at public auction, the proceeds from
which will accrue to the SFEDF.

An offender who is a government officer or employee, in addition to the above
penalties, upon conviction, shall be deemed automatically dismissed from office and
permanently disqualified from holding any elective or appointive position in the
government service.

Section 63. Misdectaration or Falsification of Reports on Forest Resource
Inventory, Scaling, and Survey by a Government Official or Employee - Any public
officer or employee. who knowingly misdeclares or falsifies reports pertaining to
forest resource inventory, scaling, survey and other similar activity which are contrary


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to the criteria and standards established in the rules and regulations promulgated by
the Secretary shall, after an appropriate administrative proceeding, be dismissed from
the service with prejudice to re-employment. Upon conviction by a court of
competent jurisdiction, the same public officer or employee shall further suffer an
imprisonment of not less than eight (8) years nor more than twelve (12) years and a
fine of not less than One hundred thousand pesos (P100,000.00) nor more than Five
hundred thousand pesos (500,000.00), The inventory, survey, scale, classification,
and similar reports referred herein shall be rendered null and void.

Section 64. Unlawful Operation Processing Plants and Downstream Forest-
Based Industries. - Any person operating a wood processing plant or downstream
forest-based industry without authority from the Secretary shall, upon conviction by a
court of competent jurisdiction, be punished by imprisonment of not less than eight
(8) years nor more than twelve (12) years and fine of not less than Five hundred
thousand pesos and confiscation of the wood processing plant and complementary
equipment in favor of the government, The Department shall promulgate the
necessary guidelines, subject to the provisions of this Act, that will define the terms
and conditions inchiding the responsibility for a person who will operate and its
operating a wood processing plant and/or other downstream forest-based industries.

Section 65. Prohibition on the Issuance of Tax Declaration on Forest
Lands. — Any local government official or employee who issues a tax declaration for
any purpose on any part of forest lands shall, upon conviction, be penalized with
imprisonment for a period of not less than four (4) years nor more than eight (8) years
and a fine of not less than One hundred thousand pesos (P100,000.00) nor more than
Five hundred thousand pesos (P500,000.00) and perpetual disqualification from
holding an elective or appointive office,

Section 66, Unlawful Possession of Implements and Devices Used by Forest
Officers. - Any person found possessing or using implements and devices used by
forest officers shall be penalized with imprisonment of not less than eight (8) years
nor more than twelve (12) years and a fine of not less than One hundred thousand
pesos (P100,000.00) nor more than Five hundred thousand pesos (P500,000.00) in
addition to the confiscation of such implements and devices and the automatic
cancellation of any license agreement, license, lease or permit.

Any forest officer who willingly allows unauthorized person(s) to use these
implements and devices under one’s care shall be penalized with imprisonment for a
period of not less than six (6) years and one day to no more than twelve (12) years
and a fine of not less than One hundred thousand pesos (P100,000.00) nor more than
Five hundred thousand pesos (P500,000.00) or both imprisonment and fine at the
discretion of the court, and confiscation of said logging tools and equipment in favor
of the government.

Section 68. Non-Payment and Non-Remittance of Forest Charges. - Any
person who fails to pay the amount due and payable as forest charges to the
government shall not be allowed to transport, convey, sell nor use the timber or forest
product, Moreover, failure to pay within thirty (30) days upon assessment of forest
Charges shall be a ground for confiscation of the said timber or forest product in favor
of the government. Any person who fails or refuses to remit to the proper authorities


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said forest charge collectible pursuant to the provisions of this Act or the National
Internal Revenue Code of 1997, as amended, or who delays, obstructs or prevents the
same, or who orders, causes or effects the transfer or diversion of the funds for
purposes other than those specified in said Acts shall, upon conviction be imprisoned
for not less than six (6) years nor more than twelve (12) years and fined from One
hundred thousand pesos (P 100,000.00) to Five hundred thousand pesos (P500,000.00)
in addition to the payment of the assessed forest charges. If the offender is a
corporation, partnership or association, the officers and directors shalll thereof shall be
liable.

Section 69. Institution of Criminal Action by Forest Officers.~ Any forest
officer shall arrest even without a warrant any person who has committed or is about
to commit, or is committing in his presence any of the offenses defined in this
chapter. The tools, animals, equipment and conveyances used in committing the
offense, and the forest products cut, gathered take or possessed by the offender in the
process of committing the offense shall also be seized and confiscated in favor of the
government. The arresting forest officer shall thereafter deliver within twenty-four
(24) hours from the time arrest or seizure both the offender and the confiscated forest
products, conveyances, tools and equipment, or the documents pertaining to the same,
and file the proper complaint with the appropriate official designated by law to
conduct preliminary investigation and file information in court. If the arrest and
seizure are made in the forest far from authorities designated by law to conduct
preliminary investigations the delivery to and filing of the complaint with the latter
shall be done within a reasonable time sufficient for ordinary travel from the place of
arrest to the place of delivery. ‘The seized forest products, materials, conveyances,
tools and equipment shall be immediately disposed of in accordance with the
regulations promulgated by the Secretary.

‘The Secretary may deputize any agency, barangay or barrio official, or any
qualified person to protect the forest and exercise the powers or authority provided for
in the preceding paragraph, Reports and complaints regarding the commission of any
of the offenses defined in this chapter not committed in the presence of any forest
officer or any deputized officers shall immediately be reported to the forest officer
assigned in the area were the offense was allegedly committed. Thereupon, the
investigating officer shall receive the evidences supporting the report or complaint
and submit the same to the appropriate official authorized by law to conduct a
preliminary investigation of criminal cases and file the information in court,

Section 70. Liability of Confiscated Forest Products. - Any public officer
who fails to produce the timber or forest products, including tools, conveyances,
equipment and devices in his custody pursuant to seizure or confiscation made
thereon, or who shall appropriate, take, misappropriate, or shall permit another person
to take such timber o forest products, wholly or partially, shall suffer the penalty
provided for in malversation of public funds or property, of the Revised Penal Code.
In addition, the said public officer, shall be dismissed from service with prejudice to
reinstatement and with perpetual disqualification from holding any elective or
appointive office.

Section 71. Citizen's Suit, - Any citizen may file an appropriate civil,
criminal or administrative action in the proper court against:


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(a) Any person who violates or fails to comply with the provisions of this Act
or its implementing rules and regulations;

(b) The Department or other implementing agencies with respect to orders,
rules and regulations issued inconsistent with this Act; and

(c) Any public officer who willfully or grossly neglects to perform an action
specifically enjoined as a duty by this Act or its implementing rules and
regulations; or abuses his authority in the performance of his duty; or in
any manner improperly performs his duties under this Act or its
implementing rules and regulations. However, no suit can be filed until
after thirty (30) days notice has been given to the public officer or the
alleged violator concerned and no appropriate action has been taken.

CHAPTER XII
ADMINISTRATIVE PROVISION

SECTION 72, Development of Mechanisms for Private Sector Participation
in Forest Management. ~ ‘The Secretary is hereby authorized to adopt appropriate
mechanisms to strengthen private sector participation in forest management, which
shall include the accreditation of a national organization of private investors including
those for profit, NGOs and POs, The accredited national organization shall assist the
Department in the formulation and review of relevant policies to ensure the
contribution of the forestry sector to the national economy and sustainable
development. It shall also assist the Department in evaluating applications for forest
management agreements, monitoring the performance of holders of commercial
tenure instruments, ensuring the local supply of timber and wood products, providing
producers with access to local and international markets; enhancing various
ecosystems services; and ensuring the maintenance of high conservation values,

Section 73. Administrative Authority of the Secretary or His Duly
Authorized Representative to Order Confiscation. - In all cases of violations of this
‘Act or other forest laws, rules and regulations, the Secretary or his duly authorized
representative may order the confiscation of forest products illegally harvested, cut,
gathered, removed or possessed or abandoned, and all conveyances used either by
land, water or air as well as all machinery, equipment, implements and tools used in
the commission of the offense and to dispose of the same in accordance with pertinent
laws, regulations or policies on the matter.

If the confiscated forest products are in danger of deteriorating, the Secretary
may order that the same be sold at public auction even before the termination of the
judicial proceedings, with proceeds kept in trust to await the outcome of the judicial
proceedings.

No court of the Philippines shall have jurisdiction to issue any Writ of
Replevin, retraining order or preliminary mandatory injunction in any case involving
or growing out of any action by the Secretary or his duly authorized representative in
the exercise of the foregoing administrative authority.


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Section 74, Administrative Authority of the Secretary to Impose Fines. - In
all cases of violations of this Act and other forest laws, rules and regulations where
fine is the principal penalty, the Secretary, after consultation with the forest-based
industries affected, is hereby authorized to impose administratively the penalty
consisting of the amount and the schedules of the fine which shall be officially
published in a newspaper of general circulation.

Section 78, Authority of Forest Officers. ~ When in the performance of their
official duties, forest officers or other government officials or employees duly
authorized by the Secretary shall have free entry into areas covered by a contract,
agreement, license, lease or permit, Forest officers are authorized to inspect and to
open closed vans suspected to contain illegally harvested, collected or transported
forest products: Provided, That it is done in the presence of the shipper or consignee
or two (2) responsible public officials in the locality. Forest officers are authorized to
administer oath, take acknowledgement in official matters connected with the
functions of their office, or take testimony in official investigations conducted under
the authority of this Act and implementing rules and regulations issued by the
Secretary pursuant thereto.

Section 76, Visitorial Functions, — The Secretary or his duly authorized
representative shall, from time to time, investigate, inspect, and examine records and
other documents except bank records related to the operation of any person granted
the privilege, contract or agreement to utilize forest resources to determine
compliance with the terms and conditions stipulated in the grant, contract or
agreement, this Act, and pertinent laws, rules and regulations.

Section 77, Authority of the Secretary to Revert Lands Needed for Forest
Purposes, - When the national interest so demands, the Secretary is hereby
authorized, through any available legal remedies, to revert lands currently used for
agricultural production or other purposes into forest uses or for biodiversity
conservation,

Section 78. Protection to Witnesses in Cases Involving Violations of
Forestry Laws. ~ Witnesses to violations of this Act or other forestry laws and
regulations, including the immediate members of the family of said witnesses shall be
given protection, security and benefit, subject to the provisions of Republic Act NO.
6981, otherwise known as “The Witness Protection, Security and Benefit Act” and its
implementing rules and regulations.

Section 79, Transitory Provisions, - Upon the approval of this Act, the
Department shal] evaluate the conditions of all forest lands covered by existing tenure
instruments, memoranda of agreements (MOAs) and other agreement and contracts
which shall be allowed to continue until their expiration, unless otherwise earlier
terminated for cause,

Section 80. Implementing Rules and Regulations. - In consultation with the
Departments of the Interior and Local Government, Finance, Agriculture, Budget and
Management, and other relevant agencies and stakeholders, the Secretary of the
Department shall formulate the rules and regulations to implement the provision of
this Act.


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Section 81. Congressional Oversight Committee. - There is hereby created a
Congressional Oversight Committee to oversee the implementation of this Act
composed of seven (7) members from the Senate committee on Environment and
Natural Resources and seven (7) members from the House of Representatives
Committee on Natural Resources.

The secretariat of the Oversight Committee shall be drawn from the existing
secretariat personnel of the committees comprising the oversight and the funding shall
be taken from the appropriations of both House of Representatives and the Senate.

Section 82. Moratorium or Ban on Logging. ~ Congress shall provide, for
such period as it may determine, measures to prohibit logging in endangered forests
and watershed areas.

CHAPTER XIII
FINAL PROVISIONS

Section 83. Separatibility Clause, - If any provisions of this Act is declared
unconstitutional, the validity of the other provisions shall not be affected by such
declaration.

Section 84. Repealing Clause. ~ Subsections (b), (4), (€), (8), (g) and (i) of
Section 4 of Act No. 3915; Republic Act No. 460; Republic Act no. 7161;
Presidential Decrees Numbered 953, 1153, 1515, 705 as amended by 1559, 1775 and
1998; Letter of Instruction No. 818; Executive Orders Numbered 277 and 278, series
of 1987; and Executive Orders Numbered 263, 318 and 725, series of 1981 are hereby
repealed. All other laws, orders, rules and regulations or parts thereof that are
inconsistent herewith are likewise hereby repealed or amended accordingly.

Section 85. Effectivity. - This Act shall take effect thirty (30) days after its
publication in the Official Gazette or in two (2) newspapers of general circulation.

Approved,