FIFTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
SENATE 
S.B. No. 2822 
Introduced by SENATOR MANNY VILLAR 
EXPLANATORY NOTE 
SCI1t1t:r 
'flff,;r "r til' )io>m ,br~ 
'11 
MAY 17 P 3 :23 
This policy measure is respectfully submitted with the intention of implementing Article II, 
Sec, 16, of the 1987 Philippine Constitution, "The State shall protect and advance the right 
of the people to a balanced and healthful ecology in accord with the rhythm and harmony of 
nature." 
Likewise, this bill seeks to protect, conserve, utilize, develop and sustainably manage forest 
resources in the country through the adoption of a sustainable forest management strategy. 
For years, Philippine laws had a nuanced treatment of forests as a resource for utilization 
and exploitation. Such an outdated concept needs total assessment. There is overwhelming 
evidence that forests maintain environmental systems that are essential for life. They 
influence weather by controlling rainfall and evaporation of water from soil. They help 
stabilize the world's climate by storing large amounts of carbon that would otherwise 
contribute to climate change. They provide us with clean water and air, helps minimize the 
impact of floods and prevent erosion and sedimentation. 
Forests are home to indigenous cultural communities (ICCs) and indigenous peoples (IPs). 
The way of life of these ICCsllPs is inextricably intertwined with the forest. Without the 
forest, they lose their cultural heritage. 
Forests also host a variety of animal and plant species endemic to the country. In other 
wordS, forests are extremely valuable in themselves. Their continued existence, and not just 
their utilization and exploitation, should be emphasized. 
With this paradigm shift, the reasons for hastening the passage of this bill become more 
apparent. It is no longer a simple matter of promoting land use practices that expand the 
forest resource base and promote food production activities. It is a race against time. Not 
acting fast enough could lead to lost opportunities in mitigating global warming and :' 
preventing the loss of lives and properties. 
For this purpose, the immediate passage of this bill is earnestly requested. 
1I111vrVIM ~ 
MANNYV LAR 


FIFTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
SENATE 
S.B. No. 2822 
Introduced by SENATOR MANNY VILLAR 
.Srmltt' 
{!)f(,;, "r til' jm'tnr~ 
'11 
MAY 17 P3 :23 
AN ACT TO PROTECT, CONSERVE, UTILIZE, DEVELOP AND SUSTAINABLY 
MANAGE FOREST RESOURCES AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
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SECTION 1. Short Title. This Act shall be known as the "Forest Resources Act of 
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2010". 
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SECTION 2. Scope and Coverage. The provisions of this Act shall apply to all lands 
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of the public domain classified as needed for forestry purposes, all forestlands, all forest 
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resources found in untitled agricultural lands and in private lands: Provided, That all forests 
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and forest resources found in protected areas established under the National Integrated 
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Protected Areas System (NIPAS) shall be sustainably managed and developed following 
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the provisions of Republic Act No. 7586 or the NIPAS Act of 1992: Provided further, That 
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the rights of indigenous cultural communities or indigenous peoples to their ancestral 
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domains shall be respected. 
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All forestlands and forest resources therein under the administrative jurisdiction of 
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the Autonomous Region of Muslim Mindanao (ARMM) shall be managed, developed and 
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conserved in accordance with the Regional Sustainable Forest Management Act of 2003 of 
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the ARMM. 
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SECTION 3. Basic Policies. 
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a. Pursuant to the provisions of the Constitution to promote the general welfare and 
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social justice in all phases of national development, to protect and advance the 
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right of the Filipino people to a balanced and healthful ecology in accord with the 
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rhythm and harmony of nature, and to conserve and develop the patrimony of the 
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nation, the State hereby adopts the following policies relative to the 
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management, development and conservation of forests and the resources 
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therein: 
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i. 
Within five (5) years from the passage of this Act, the specific limits of 
forestlands shall be fixed and demarcated and thereafter, shall not be 
altered except through an Act of Congress; The Congress shall, as 
soon as possible, also determine, by law, the specific limits of 
forestlands and national parks, marking clearly their boundaries on the 
ground. Thereafter, such forestlands and national parks shall be 
conserved and may not be increased nor diminished, except by law. 
The Congress shall provide for such period as it may determine, 
measures to prohibit logging in endangered forests and watershed 
areas; 


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11. 
iii. 
iv. 
v. 
The use and conservation of forest resources shall bear a social, 
ecological, biological and economic functions, responsibility, and 
accountability to promote the common good of the present and future 
generations; 
The guiding principle in the sustainable and integrated management, 
development, and conservation of forest resources shall be focusing 
on these resources and on the people who manage, conserve, and 
benefit from them; 
Biodiversity protection and conservation of wildlife resources and their 
habitats, consistent with Republic Act No. 9147 shall be a paramount 
consideration in forest management. 
Genetically Engineered (GE) and transgenic trees pose the gravest of 
dangers to forest ecosystems and violate the Convention on Biological 
Diversity. 
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b. The state shall protect the rights of indigenous cultural communities/indigenous 
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peoples to their ancestral domains to ensure their economic and social and 
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cultural well-being and shall recognize the applicability of customary laws in 
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governing property rights or relations in determining the ownership and extent of 
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ancestral domains; 
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c. The State shall promote social justice in all phases of national development; 
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d. The State shall encourage non-governmental, community-based, or sectoral 
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organizations that promote the welfare of the nation; 
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e. The State shall ensure the autonomy of local governments; and, 
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f. 
The State shall pursue an independent foreign policy. In its relations with other 
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states, the paramount consideration shall be national sovereignty, territorial 
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integrity, national interest, and the right to self-determination. 
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In carrying out the above policies, the following strategies shall be pursued: 
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1. The watershed continuum as the basic forestland management unit-
Forestlands shall be managed, developed and conserved utilizing 
watershed continuum as the basic management unit and under the 
principles of sustainable and multiple-use management, including 
conservation of biological diversity; 
2. Multi-sectoral participation- The participation of all direct and indirect, 
especially local, stakeholders in sustainable forestland conservation, 
management, and development shall be mandatory. Equitable sharing of 
the benefits derived from forestlands and the resources therein shall be 
ensured at all times; 
3. Community-based forest management (CBFM) as a principal strategy-
Vesting access rights and responsibilities to forest resident or forest-
dependent families, local communities, and indigenous peoples to 
undertake the management and development of appropriate forestland 
resources on a sustainable basis shall have precedence over other 
strategies; 
4. Protection of forests and natural resources as a priority concern- The 
protection of forests and the natural resources therein shall be given 


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priority concern in order to ensure environmental stability, conserve 
biological diversity, improve ecosystem functions and services, and 
provide long-term ecological and economic benefits; 
5. Reforestation as a priority measure- Reforestation shall be undertaken as 
a priority measure to restore the ecosystem functions and services of 
forests as well as improve the economic and ecological benefits of local 
communities concerned; 
6. 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; and 
7. Professionalism in forest service - A dynamic, professional and people-
oriented forest service strongly adhering to conservation principles shall 
be established and fully supported by the State. 
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SECTION 4. Definition of Terms. As used in this Act, the following terms shall be 
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defined as follows: 
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a. "Agroforestry" refers to a strategy for the sustainable management of land which 
increases their overall productivity by properly combining agricultural 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 the 
local communities; 
b. "Agricultural lands" refers to Alienable and Disposable (A&D) lands of the public 
domain which have been delimited, classified and declared as such, pursuant to 
the provisions of Commonwealth Act No. 141, as amended, otherwise known as 
the Public Land Act; 
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c. "Ancestral Domains" refers to all areas generally belonging to indigenous cultural 
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communities/indigenous peoples (ICCs/lPs) comprising lands, inland waters, 
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coastal areas, and natural resources therein, held under a claim of ownership, 
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occupied or possessed by ICCs/lPs, by themselves or through their ancestors, 
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communally or individually since time immemorial, continuously to the present 
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except when interrupted by war, force majeure or displacement by force, deceit, 
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stealth or as a consequence of government projects or any other voluntary 
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dealings entered into by government and private individuals/corporations, and 
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which are necessary to ensure their economic, social and cultural welfare. It shall 
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include ancestral lands, forests, pasture, residential, agricultural, and other lands 
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individually owned whether alienable and disposable or otherwise, hunting 
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grounds, burial grounds, worship areas, bodies of water, mineral and other 
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natural resources, and lands which may no longer be exclusively occupied by 
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ICCs/lPs but from which they traditionally had access to for their subsistence and 
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traditional activities, particularly the home ranges of ICCs/l Ps who are still 
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nomadic and/or shifting cultivators; 
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d. "Ancestral Lands" refers to land occupied, possessed and utilized by individuals, 
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families and clans who are members of the ICCs/IPs since time immemorial, by 
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themselves or through their predecessors-in-interest, under claims of individual 
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or traditional group ownership, continuously, to the present except when 
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interrupted by war, force majeure or displacement by force, deceit, stealth, or as 
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a consequence of government projects and other voluntary dealings entered into 
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by government and private individuals/corporations, including, but not limited to, 
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residential lots, rice terraces or paddies, private forests, swidden farms and tree 
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lots; 


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e. "Assisted Natural Regeneration" or "ANR" covers any set of activities that 
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enhance the natural processes of forest regeneration. These include promoting 
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the natural establishment and subsequent growth of indigenous forest trees, 
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whilst preventing any factors that might harm them, e.g. competition from weeds, 
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browsing by cattle, fire etc. ANR relies on existing natural processes; it requires 
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less labor input than tree planting and is therefore a very cheap way to restore 
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forest ecosystems. ANR is appropriate wherever the natural processes of forest 
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regeneration are, to some extent, already happening. At least few seed treesl 
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mature seed-bearing rainforest trees should exist nearby to provide seed rain in 
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the area. Seed-dispersing animals should remain common in the vicinity. Sites 
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which already support a high density of tree saplings and sprouting tree stumps 
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are particularly suited to ANR. 
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f. 
"Biological diversity or biodiversity" refers to the variability and variety among 
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living organisms including, inter alia, terrestrial, marine and other aquatic 
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ecosystems and the ecological complexes of which they are part. This includes 
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diversity within the species (genetic diversity), between species (species 
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diversity), and among ecosystems (ecosystem diversity); 
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g. "Climate change" refers to a change in climate that can be identified by changes 
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in the mean and/or variability of its properties and that persists for an extended 
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period typically decades or longer, whether due to natural variability or as a result 
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of human activity; 
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h. "Commercial logging" refers to the cutting or felling of trees for the purpose of 
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disposing the cut or felled logs for monetary profits beyond survival and 
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subsistence; 
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i. 
"Communal forest" refers to a tract of forestland set aside and established for 
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and under the protection, administration, and management of a city, municipality, 
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or barangay as a source of wood material for fuel, shelter, and manufactured 
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products; as source of water for the community; and as an area for ecotourism 
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and/or environmental protection or socio-economic projects of local government 
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units consistent with the policies and objectives of this Act and principles of 
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sustainable development; 
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j. 
"Community-Based Forest Management Strategy" refers to the strategy to 
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improve the well-being of forest dependent communities, and at the same time 
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ensure sustainable management, rehabilitation and protection of forestlands and 
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the resources therein, through the active participation of various stakeholders; 
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k. "Conservation" refers to the planned protection and management of forests, 
wildlife and other forest resources so as to prevent waste and ensure future use; 
I. 
"Conveyance" refers to any vehicle, vessel, device or animal used in gathering 
and/or transporting forest products; 
m. "Co-management agreement" refers to an agreement entered into by the DENR 
and a local government unit/s to protect, restore, develop or manage forestlands, 
including mangroves and its forest resources, within the geographic jurisdiction of 
such local government unitls consistent with the provisions of this Act; 
n. "Co-production agreement" refers to an agreement entered into by and between 
a qualified person and the government, in accord with the 1987 Constitution for 
the former to develop, utilize, and manage, consistent with the princiPle~ of 
sustainable development, land or a portion of a forestland wherein both parties 
agree to provide inputs and share the products or their equivalent cash value; 


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o. "Critical habitat" refers to a place or environment where species or subspecies 
naturally occur or has naturally established its population that are crucial to the 
survival of a species and essential for its conservation; 
p. "Critical watershed" refers to areas designated by the Secretary pursuant to the 
Wildlife Resources Conservation and Protection Act and for their ability to supply 
water for domestic, agriculture and/or industrial use; 
q. "Degraded forests" refers to forests with varying degrees of disturbance or loss of 
structure, function, species composition and productivity of less than 60% forest 
cover; 
r. 
"Delimitation" refers to the establishment of permanent boundaries between 
forestlands, national parks/protected areas and agricultural lands as a result of 
demarcation; 
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s. "Delineation" refers to the establishment of boundaries between forestlands, 
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national parks/protected areas and agricultural lands as a result of a conduct of 
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site investigation, reconnaissance and field verification in accordance with the 
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criteria set by the Department; 
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t. 
"Demarcation" refers to the establishment of boundaries using visible markers, 
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monuments or known natural features/landmarks, among others, as result of the 
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actual ground delineation; 
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u. "Denuded forestlands" refers to forestlands that are devoid of forest tree cover; 
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v. "Department" refers to the Department of Environment and Natural Resources 
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(DENR); 
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w. "Environmental Impact Assessment" or "EIA" refers to the process of predicting 
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the likely environmental consequences of implementing a project or undertaking 
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and designing the appropriate preventive, mitigating, or enhancement measures; 
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x. "Environmental Compliance Certificate" or "ECC" refers to the document issued 
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by the Department certifying that a proposed project or undertaking will not cause 
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a significant negative impact on the environment; that the proponent has 
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complied with all the requirements of the Environmental Impact Assessment 
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System; and that the proponent is committed to implement its approved 
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Environment Management Plan found in the Environmental Impact Statement 
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(EIS) or mitigation measures identified in the Initial Environmental Examination 
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(lEE); 
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y. "Environmental Impact Statement System" or "EIS System" refers to the 
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organization, administration, and procedures that have been institutionalized 
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pursuant to Presidential Decree No. 1586 for purposes of assessing the 
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significance of the effects of any project or undertaking on the quality of the 
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physical, biological, and social-economic environment and designing the 
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appropriate mitigating and enhancement measures; 
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z. "Environmentally Critical Project" refers to project or program that has high 
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potential for significant negative environmental impact; 
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aa. "Forest" refers 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. It shall consist of trees with 
overlapping crown of 60-1 00% forest cover; 


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bb. "Forest guard" refers to any public officer who by the nature of his appointment or 
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the functions of the position to which he is appointed is delegated by law and 
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regulations or commissioned by competent authorities to execute, implement or 
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enforce the provisions of this Act and other related laws and regulations; 
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cc. "Forest products" refers to goods and services derived from forest such as, but 
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not limited to, timber, lumber, veneer, plywood, fiberboard, pulpwood, bark, tree 
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top, resin, gums, wood oil, honey, bees wax, nipa, rattan, or other forest growth 
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such as grass, shrub and flowering plants, the associated water, fish, game, as 
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well as its scenic, historical, educational, social and ecological value; 
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dd. "Forest resources" refers to all resources, whether biomass such as plants and 
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animals including its by-products and derivatives, which can be a raw material, or 
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non-biomass such as soil, water, scenery, as well as the intangible services and 
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values present in forestlands or in other lands devoted for forest purposes; 
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ee. "Forest/Forest-Dependent Community" refers to a group of people residing inside 
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or immediately adjacent to a particular forestland who are largely or partly 
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dependent on the forest resources found therein for their livelihood; 
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ff. "Forestlands" refers to lands of the public domain classified as needed for forest 
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purposes. They shall include all forest reserves, forest reservations and all 
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remaining unclassified lands of the public domain; 
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gg. "Genetic engineering" refers to genetic modification, or a special form of 
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biotechnology in which a section of DNA from one organism is introduced into 
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another, in which it does not naturally occur, in order to produce a genetically 
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modified organism (GMO) with favorable properties based on the new 
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combination of genes. The new genes in the transgenic organism may be from 
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an entirely different type of organism, or from a closely related lineage. 
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hh. "Genetically modified organisms" or "GMOs" refers to organisms in which the 
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genetic material has been altered in a way that does not occur naturally. GMOs 
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can be bacteria, fungi, viruses, plants or animals, with the exception of human 
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beings; 
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ii. "Grazing land" refers to a portion of the public domain which has been set aside, 
in view of its topography and vegetation, for the raising of livestock; 
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jj. "Greenhouse gas" refers to any gas that absorbs infrared radiation in the 
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atmosphere. Greenhouse gases include water vapor, carbon dioxide (C02), 
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Methane (CH4), nitrous oxide (N20), halogenated fluorocarbons (HCFCs), ozone 
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(03), perfluorinated carbons (PFCs) and hydrofluorocarbons (HFCs); 
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kk. "Indigenous Cultural Communitiesllndigenous Peoples" or "ICCsIIPs" refers to a 
group of people or homogenous societies identified by self-ascription and 
ascription by others, who have continuously lived as organized community on 
communally bounded and defined territory, and who have, under claims of 
ownership since time immemorial, occupied, possessed and utilized such 
territories, sharing common bonds of language, customs, traditions and other 
distinctive cultural traits, or who have, through resistance to political, social and 
cultural inroads of colonization, non-indigenous religions and cultures, became 
historically differentiated from the majority of the Filipinos. ICCslIPs shall likewise 
include people who are regarded as indigenous on account of their descent from 
the populations which inhabited the country, at the time of conquest or 
colonization, or at the time of inroads of non-indigenous religions and cultures, or 
the establishment of present state boundaries, who retain some or all of their 
own social, economic, cultural and political institutions, but who may have been 


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displaced from their traditional domains or who may have resettled outside their 
ancestral domains; 
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II. "Industrial Forest Management Agreement" or "IFMA" refers to a production-
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sharing contract entered into by and between the Department and a qualified 
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person, whether natural or juridical, wherein the former grants to the latter the 
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exclusive right and responsibility to invest in, develop, manage, and protect a 
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defined area of the production forestland, including the establishment, 
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management and utilization of industrial timber forest plantation, consistent with 
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the principle of sustainable development, primarily to supply the raw material 
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requirements of wood-based processing and energy-related industries and 
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wherein both parties share in the benefits therefrom; 
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mm. 
"Industrial Tree Plantation" or "ITP" refers to any tract of land planted mainly 
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to timber producing species, including rubber and/or non-timber species primarily 
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to supply the raw material requirements of forest-based industries, energy-
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generating plants, and related industries.; 
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nn. "Joint venture agreement" refers to an agreement where a joint-venture company 
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is organized by the State and another person for protection, restoration and 
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utilization, development and management of forestlands consistent with the 
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prescribed activities allowed under this Act, with both parties having equity 
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shares. Aside from earnings in equity, the State shall be entitled to a share in the 
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gross output; 
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00. "Kaingin" refers to a portion of the forest land, whether occupied or not, which is 
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subjected to shifting and/or permanent slash-and-burn cultivation having little or 
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no provision to prevent soil erosion; 
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pp. "Kaingin making" refers to a process employed to establish a kaingin; 
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qq. "Key Biodiversity Areas" refers to places of international importance for the 
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conservation of biodiversity; 
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rr. "Master Plan for Forestry Development" refers to the twenty-five (25) year 
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strategic program of the Forestry Sector envisioned to guide its long term 
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development. This program includes: (a) policy and institutional development; (b) 
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restoration and rehabilitation c) watershed and forestry development; (d) 
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livelihood and poverty reduction; and (e) timber/non-timber industry development; 
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ss. "National Park" refers to the land of public domain classified as such in the 1987 
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Philippine Constitution which includes all areas under the National Integrated 
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Protected Areas System (NIPAS) pursuant to RA 7586, primarily set aside and 
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designated for the conservation of native plants and animals, their associated 
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habitats and cultural diversity; 
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tt. "Non-government organization" or "NGO" refers to a non-stock, non-profit, and 
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voluntary organization; 
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uu. "Non-timber based industries" refers to various industries that are dependent on 
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raw materials or products derived from forests such as, but not limited to, rattan, 
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bamboo, vines, latex, resins, saps, essences, fruits, flowers or wild flora and 
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fauna; 
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vv. "Non-timber charges" refers to the levy imposed and collected by government on 
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various industries that are dependent on raw materials or products derived from 
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forests such as, but are not limited to, rattan, bamboo, vines, latex, resins, saps, 


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essences, fruits, flowers or wild flora and fauna, as well ecological and aesthetic 
services; 
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ww. 
"Non-timber forest products" refers to all products gathered from the forest 
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that are not timber, which include, but are not limited to, rattan, bamboo, vine, 
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herb, exudates, gum, resin, beeswax, gutapercha, and almaciga resin; 
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xx. "Permit" refers to a short-term privilege or authority granted by the State to a 
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person to utilize any limited forest resource or undertake a limited activity within 
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any forest land without any right of occupation, possession, and ownership 
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therein; 
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yy. "Person" refers to a natural or juridical person, including local forest communities 
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and/or indigenous peoples organized in accordance with law or custom; 
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zz. "Plantation forestry" refers to the planting of one or two species for the sole 
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purpose of harvesting; 
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aaa. 
"Primary forest" refers to forest which have never been subject to human 
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disturbance or has been so little affected by hunting, gathering and tree cutting 
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that its natural structure, function and dynamics have not undergone any 
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changes that exceed the elastic capacity of the ecosystem; 
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bbb. 
"Processing plant" or "Processing mill" refers to any mechanical set-up, 
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device, machine or combination of machines used for the conversion of logs and 
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other forest raw materials into lumber, fiberboard, pulp, paper or other finished 
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wood products; 
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ccc. 
"Production forestlands" refers to the forestlands defined under Sec. 8(b) of 
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this Act; 
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ddd. 
"Production sharing agreement" refers to an agreement wherein the State 
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grants a person/s, who provides all the necessary financing, technology, 
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management and personnel, the exclusive right to conduct forestry development 
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activities within but not title over, the contract area and shares in the production 
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whether in kind or in value as owner of forest product therein; 
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eee. 
"Protected Areas" refers to identified portions of land and water set aside by 
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reason of their unique physical and biological significance, managed to enhance 
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biological diversity and protected against destructive human exploitation. They 
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shall constitute the areas established under the National Integrated Protected 
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Areas System (NIPAS) pursuant to RA 7586 and shall fall under the National 
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Park classification of public domain; 
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fff. "Protection forestlands" refers to the forestlands defined under Sec. 8 (a) of this 
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Act; 
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ggg. 
"Reforestation" refers to all land use activities directed towards restoration, 
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establishment and sustained management using native species of diversified 
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vegetation on denuded, degraded and/or marginal lands, including but not limited 
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to the planting and tending of timber, orchard and multi-use trees; 
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hhh. 
"Reservation" refers to an area of the public domain reserved by law for a 
specific purpose; 
iii. "Restoration" refers to the bringing back of the forestland to its original state in 
terms of species composition, structure, function and productivity; 
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jjj. "Restoration zones" refers to the area where restoration activities are conducted 
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and where the original vegetation shall be restored; 
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kkk. 
"Road" refers to bulldozed land which is accessible by at least a two-wheel 
motorized vehicle; 
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III. "Rotation" refers to the number of years between the initial establishment of a 
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plantation and the time when it is considered ready for harvesting; 
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mmm. "Secondary forest" refers to a former forest that was logged over and is 
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characterized by residuals; 
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nnn. 
"Secretary" refers to the Secretary of the DENR; 
000. 
"Semi-finished wood products" refers to wood products requiring final stages 
of manufacture and/or assembly such as, but not limited to, window components, 
table tops, veneer, tongue and groove planks, steps for stairs, and other similar 
products; 
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ppp. 
"Silvicultural practices" refers to any action by man to further improve or 
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enhance the stand growth as a whole or the single tree for future harvest 
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including assisted natural regeneration and tree surgery, among others; 
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qqq. 
"Subdivision" refers to a tract or parcel of land partitioned into individual lots, 
31 
with or without improvements thereon, primarily for residential purposes; 
32 
33 
rrr. "Sustainable development" refers to development that meets the needs of the 
34 
present without compromising the ability of the future generations to meet their 
35 
own needs; 
36 
37 
sss. 
"Sustainable forest management" or "SFM" refers to the process of managing 
38 
a forest to achieve one or more clearly specified objectives of management with 
39 
regard to production of continuous flow of desired forest products and services 
40 
without undue reduction of its inherent values and future productivity and without 
41 
undesirable effects on the physical and social environment; 
42 
43 
ttt. "Tenure" refers to the guaranteed peaceful possession and use of specific forest 
44 
land area and specific resources found therein, covered by an agreement, 
45 
contract, or grant which cannot be altered or abrogated without due process; 
46 
47 
48 
uuu. 
"Timber-based industries" refers to industries that are dependent on wood as 
the principal raw material including but not limited to sawmilling, pulp and paper 


1 
2 
3 
4 
making, and plywood and veneer manufacturing or the upstream wood-based 
industries, as well as the secondary and tertiary wood processing or downstream 
industry such as moldings and furniture manufacturing; 
5 
vvv. 
"Timber charges" refers to the levy imposed and collected by the government 
6 
on timber products cut, harvested, or gathered from production forestlands and 
7 
from alienable and disposable (A&D) lands in accordance with Republic Act No. 
8 
7161; 
9 
10 
www. "Timber License Agreement" or "TLA" refers to a privilege granted by the 
11 
State to a person to utilize forest resources within an area with the rig ht of 
12 
possession and occupation thereof to the exclusion of others except the 
13 
government, but with the corresponding obligation to develop, protect, and 
14 
rehabilitate the same in accordance with the terms and conditions set forth in the 
15 
said agreement; 
16 
17 
xxx. 
"Timber plantation" refers to a tree stand established by planting and/or 
18 
seeding. The stand is either of introduced species (all planted stands), or an 
19 
intensively managed stand of any indigenous species, which meets all the 
20 
following criteria: one or two species at plantation, even-aged class, and regular 
21 
spacing for the primary purpose of harvesting timber or any of its by-product; 
22 
23 
yyy. 
"Transgenic" refers to a genetically modified organism (GMO) or genetically 
24 
engineered organism (GEO) whose genetic material has been altered using 
25 
genetic engineering techniques. It is the process of introducing an exogenous 
26 
gene into a living organism so that the organism will exhibit a new property and 
27 
transmit that property to its offspring; 
28 
29 
zzz. 
"Watershed Continuum" refers to an area consisting of the watershed and its 
30 
divide including its connection from the headwaters to the reef; 
31 
32 
aaaa. "Watershed Continuum Management" or "WCM" refers to a management 
33 
system 
that will 
provide the 
optimum 
social, 
cultural, 
economic and 
34 
environmental benefits to the greatest number of people, particularly those living 
35 
in, adjacent to, or downstream of, individual watershed areas, while maintaining 
36 
the biological and cultural heritage of the country. It is the holistic multiple use 
37 
and sustainable management of all the resources within a spatial unit known as 
38 
the watershed. The Watershed Continuum Management is based on the 
39 
following guiding principles: (1) Ecological sustainability; (2) Social and cultural 
40 
sustainability; (3) Economic sustainability; and (4) Institutional sustainability; 
41 
42 
bbbb. "Watershed Reservation" refers to a forestland reservation established to 
43 
protect or improve the conditions of water yield thereof or reduce sedimentation; 
44 
45 
cccc. "Wildlife" refers to wild forms and varieties of flora and fauna, in all 
46 
developmental stages; and 
47 
48 
49 
so 
51 
dddd. "Woodlots" refers to a track or plot of land planted with fast growing tree 
species basically for fuelwood purposes. Woodlot is the major component in 
Rotational Woodlot Agro-forestry Systems which aim to satisfy house and 
regional fuelwood demand while reducing harvesting pressure on local forests. 


1 
2 
3 
4 
5 
Rotational Woodlot Agro-forestry Systems include the following components: (1) 
Establishment, which includes tree and crop intercropping; (2) Fallow, which 
pertains to build up of wood and soil fertility; and (3) Post-fallow, which pertains 
to wood harvesting and sequential cropping. 
6 
CHAPTER II 
7 
CLASSIFICATION OF PERMANENT FORESTLANDS 
8 
9 
SECTION 5. Permanent Forestlands. All forestlands currently classified as such. 
10 
11 
SECTION 6. Instruments within Permanent Forestlands. Titles, settlements, 
12 
permits, lease, and/or agreements within critical habitats, critical watershed areas, protected 
13 
areas, important biodiversity areas (IBAs), and key biodiversity areas (KBAs), shall be 
14 
reviewed, and its legality be determined. All erroneous titles, settlements, permits, leases 
15 
and/or agreements or non-compliance to and in violation of provisions of agreements shall 
16 
duly be cancelled or revoked; Provided, That the applicable provisions of the Indigenous 
17 
Peoples Rights Act of 1997 (lPRA) shall be respected. The LGU, upon endorsement from 
18 
the Forest Management Board or motu proprio, shall recommend to the Secretary 
19 
revocation of these instruments. The Secretary, upon recommendation or motu proprio 
20 
revokes such instrument. 
21 
22 
23 
SECTION 7. Additional Areas to be Included as Permanent Forestlands The 
24 
following lands are needed for environmental protection and forestry purposes and shall not 
25 
therefore be classified as agricultural lands or for other land use: 
26 
27 
28 
a. Isolated patches of forest, regardless of size of area, with rocky terrain or which 
29 
protect a spring for communal use; 
30 
31 
b. All mangroves and swamplands including twenty-meter wide strips thereof facing 
32 
oceans, lakes and other bodies of water not yet classified as alienable and 
33 
disposable lands; 
34 
35 
c. Ridge tops and plateaus regardless of size found within or surrounded wholly or 
36 
partially by forestlands where headwaters emanate; 
37 
38 
d. Twenty-meter wide strips of land from the edge of the normal high waterline of rivers 
39 
and streams with channels of at least five (5) meters wide which are not yet 
40 
classified as alienable and disposable; 
41 
42 
e. Areas needed for other purposes of public interest such as research or experimental 
43 
purposes and others; and 
44 
45 
f. 
Areas considered enVironmentally critical because of their vulnerability to damage 
46 
from landslides, volcanic eruptions, and other natural causes. 
47 
48 
Owners who have acquired vested rights over lands enumerated above are required 
49 
to implement soil and water conservation measures, in coordination with the Department 
50 
and the appropriate local government unit. An Environmental Compliance Certificate (ECC) 
51 
shall be required in these environmentally critical areas in accordance with existing law: 
52 
Provided, That the Department, in coordination with the concerned local government unit, 
53 
shall immediately take the necessary steps to expropriate the property concerned, to 
54 
impose the necessary fines, penalties and costs of rehabilitation and implementation of the 
55 
required soil and water conservation measures, and to cancel and/or amend any title used 
56 
thereon or impose fines or will be subject to cancellation or revocation under any of the 
57 
following conditions: 
58 
a. Failure of the owner, after due notice, to implement appropriate soil and water 
59 
conservation; 


1 
2 
b. 
Failure of the owner/s to comply with ECC requirements when required; 
3 
4 
c. The issuance of titles over such areas was accomplished through fraud, deceit, 
5 
misrepresentations or other anomalies; or 
6 
7 
d. When public interest so requires. 
8 
9 
Provided further, That the concerned LGUs may recommend to the DENR to file 
10 
expropriation proceedings given the conditions enumerated in this provision. 
11 
12 
SECTION 8. Sub-Classification of the Permanent Forestlands. The permanent 
13 
forestlands shall be sub-classified into the following categories according to primary use: 
14 
15 
a. Protection forestlands shall consist of all natural and restored forests including areas 
16 
identified as key biodiversity areas, critical habitats, freshwater, swamps, and 
17 
marshes, all areas along the bank of rivers and streams, and the shores of the seas 
18 
and lakes throughout their entire length and within a zone of three (3) meters in 
19 
urban areas, twenty (20) meters in agricultural areas, and forty (40) meters in forest 
20 
areas, along their margins which are subject to the easement of public use in the 
21 
interest of recreation, navigation, floatage, fishing and salvage shall also be sub-
22 
classified as protection forestlands. All extractive industries such as, but not limited 
23 
to, logging and mining are banned in these protection forestlands; Provided, That the 
24 
provisions of the IPRA shall be respected; 
25 
26 
b. Production forestlands shall be all forestlands not sub-classified as protection 
27 
forestlands defined in this Section, and shall be devoted to the production of timber 
28 
and/or non-forest products or the establishment of industrial tree plantations, tree 
29 
farms, communal forests, agroforestry, grazing, or as multiple-use forests including 
30 
water-based energy areas such as but not limited to hydro and geothermal 
31 
reservations: Provided, That they shall be managed, developed, and utilized in 
32 
accordance with a LGU-approved management plan consistent with the prescribed 
33 
Forestry Master Plan and based on sustainable forest management principles: 
34 
Provided, further, That the department may change the sub-classification of specific 
35 
areas of production forestlands into protection areas and recommend to Congress 
36 
their establishment as part of the integrated protected area systems in accordance 
37 
with the NIPAS Act, or as critical habitat under the Wildlife Resources Conservation 
38 
and Protection Act: Provided finally, That ancestral domains located within protection 
39 
and production forests shall be governed by customary laws; 
40 
41 
c. Restoration areas are areas to be designated in the management plan as such. 
42 
Designation of a restoration area is compulsory in all forest management plans. 
43 
44 
45 
SECTION 9. Demarcation and delimitation. Upon approval of this Act, the 
46 
Congress shall provide funds for the Department to demarcate on the ground the actual 
47 
land classification lines: Provided, That the Secretary, upon completion of the actual 
48 
assessment of the demarcated land classification lines, shall recommend to Congress the 
49 
delimitation of the forestlands found to be still suitable and capable for its purpose, Provided 
50 
further, That the Department shall submit an annual accomplishment report and that within 
51 
five (5) years, has caused the complete demarcation and delimitation of land classification 
52 
lines. 
53 
54 
55 
56 
57 
58 
59 
SECTION 10. Availability of records. Records pertaining to the specific limits of 
forestlands shall be made available to the public upon request. Moreover, the Department 
shall furnish all prOVincial, municipal and city government copies of the maps of permanent 
forestlands located within their respective territorial jurisdictions. 


1 
CHAPTER III 
2 
ADMINISTRATION AND MANAGEMENT OF FORESTLANDS AND ITS RESOURCES 
3 
4 
SECTION 11. Jurisdiction and control of forestlands. The Department shall be 
5 
the primary agency responsible for the conservation, restoration and the sustainable 
6 
utilization of forestlands and the unclassified lands of the public domain. It shall formulate a 
7 
national forestry master plan and the policies promulgated in this Act. In coordination with 
8 
LGUs and other government agenCies, it shall ensure that forestlands and unclassified 
9 
lands of the public domain are managed, conserved, developed, utilized and protected 
10 
consistent with the pOlicies promulgated in this Act; Provided, that the management plan for 
11 
protected areas shall be prepared in accordance with the provisions of the NIPAS Act, the 
12 
Wildlife Resources Act, the Local Government Code, and the IPRA, and other relevant laws 
13 
and international covenants, as well as other pertinent laws; Provided further, That certain 
14 
functions and powers of the Department may be devolved to the local government units. 
15 
16 
17 
SECTION 12. Co-Management Agreement for the Devolution of Functions. The 
18 
Department, the Department of Interior and Local Government, and the concerned LGUs 
19 
shall execute a co-management agreement, which shall contain the program and schedule 
20 
by which functions shall be strategically devolved, providing for capacity-building and 
21 
empowerment mechanisms. 
22 
23 
24 
SECTION 13. Powers and Responsibilities of the LGUs. Pursuant to the pertinent 
25 
provisions of Republic Act. No. 7160 or the Local Government Code, LGUs shall share the 
26 
responsibility in the sustainable management and utilization of forest resources within their 
27 
territorial jurisdiction including those assigned by law to other government agencies. The 
28 
LGU and the Department shall jointly undertake the preparation and implementation of 
29 
forestland use and watershed continuum management plans, consistent with the Ancestral 
30 
Domain Sustainable Development and Protection Plan (ADSDPP) and in consultation with 
31 
other government agencies, local communities, non- government organizations and other 
32 
sectors. Partnerships with LGUs and local communities are highly encouraged. Such plans 
33 
shall be fully funded and made an integral component of the LGU"s Comprehensive Land 
34 
Use Plan (CLUP). 
35 
36 
The devolved functions include, but are not limited to, the following: 
37 
38 
a) Implementation of community-based forestry projects, e.g. Community-based Forest 
39 
Management Agreements; 
40 
41 
b) Establishment of reforestation projects except in protected areas and critical 
42 
watersheds; 
43 
44 
c) Completed family and contract reforestation projects; 
45 
46 
d) Forest Land Management Agreements; 
47 
48 
e) Community Forestry Projects; 
49 
50 
f) 
Management and control of forests located in the LGU"s jurisdiction; 
51 
52 
g) Management, protection, rehabilitation and maintenance of small watershed areas 
53 
which are sources of local water supply as identified or to be identified by the DENR; 
54 
55 
56 
57 
58 
59 
h) Enforcement of forestry laws; and 
i) 
Prevention of forest fires, integrated pest management and protection against forest 
invasive species. 


1 
2 
SECTION 14. Multisectoral participation. In formulating conservation and 
3 
management plans and programs, multisectoral participation shall be required. 
4 
5 
6 
SECTION 15. Local Government Unit Consent and Consultation. - Proponents 
7 
of all forestry projects to be implemented in the LGUs" territorial jurisdiction shall strictly 
8 
comply with Sections 26 and 27 of the Local Government Code. 
9 
10 
11 
SECTION 16. Forest Board. A forest board (Board) shall be created at the 
12 
Municipal level which shall be composed of a representative from the LGU and 
13 
representatives of different sectors including but not limited to, women, farmers, fisherfolks, 
14 
and indigenous peoples, shall set the policy direction for the management, utilization and 
15 
development of forestlands and resources found within their respective jurisdictions in 
16 
accordance with the watershed continuum plan. 
17 
18 
19 
SECTION 17. Functions of the Forest Board. The Board shall be responsible for 
20 
the over-all policy direction for the management of the forestlands and forest resources 
21 
found within their respective jurisdictions in accordance with the provisions of this Act. It 
22 
shall review and recommend implementation of programs and projects and perform 
23 
oversight functions on matters pertaining to environment and natural resources. It shall also 
24 
participate in the review and recommend relevant policies for the protection, conservation 
25 
and restoration efforts within the continuum and ensure the contribution of the forestry 
26 
sector to national economy, ecological sustainability and sustainable development closely 
27 
adhering to the principles and action plans set under Philippine Agenda 21 and its revised 
28 
versions. It shall moreover facilitate the initiation of the LGU"s participation in the devolution 
29 
program and shall monitor the transfer and implementation of devolved functions at the 
30 
LGU. 
31 
32 
33 
SECTION 18. Creation of a Municipal Environment and Natural Resources 
34 
Office. A Municipal Environment and Natural Resources Office (MENRO) is hereby 
35 
created, including the position for the Municipal Environment and Natural Resources 
36 
Officer. The LGU shall ensure that funds are available for the operations and salaries of 
37 
personnel for this Office. 
38 
39 
40 
SECTION 19. Qualifications of a Municipal Environment and Natural Resources 
41 
Officer. The Municipal Environment and Natural Resources Officer should have a 
42 
background in planning, natural and environmental science, and should be civil service 
43 
eligible. 
44 
45 
46 
SECTION 20. Functions of the MENRO. The MENRO shall facilitate the 
47 
preparation of management plans. It shall recommend to the Board relevant pOlicies for the 
48 
protection, conservation and restoration efforts within the continuum. It shall evaluate 
49 
applications for forest management agreements; monitor the performance of holders of all 
50 
tenurial instruments issued by the LGU and Department. The MENRO may recommend to 
51 
DENR appropriate action with regard to the implementation of pertinent laws, rules and 
52 
regulations. The MENRO shall exercise visitorial powers over the forestlands. 
53 
54 
55 
SECTION 21. Forest Management Committee within a watershed continuum. A 
56 
forest management committee shall be created under the MuniCipal Development Council. 
57 
Municipalities/cities falling within the same watershed continuum shall form a forest 
58 
management committee within the Provincial Development Council. Provided further, That 
59 
provinces falling under the same watershed continuum will create a committee within the 


1 
Regional Development Council. These committees shall be responsible for the preparation 
2 
of the required overall management plans, in relation to the direction set by their respective 
3 
Forest Boards. 
4 
5 
6 
SECTION 22. Forestlands under Other Government Agencies. Forestlands 
7 
and/or portions thereof which have been assigned by law to the administration and 
8 
management of other government agencies for a specific purpose prior to the passage of 
9 
this Act shall remain under the administration and management of these government 
10 
agencies which shall be responsible for their conservation, protection, and restoration. The 
11 
Secretary and the concerned local chief executive or their respective duly authorized 
12 
representative shall exercise visitorial powers over these forestlands. Moreover, these 
13 
forestlands shall be administered in accordance with a forest management plan embodied 
14 
in the comprehensive forest management and land use plan of the LGU, which shall be 
15 
prepared by the concerned management committee of the watershed continuum level within 
16 
one (1) year from the effectivity of this Act. Said multisectoral body shall periodically review, 
17 
monitor, and evaluate the implementation of the said management plan. Provided, That the 
18 
harvesting of forest resources and building of roads and other infrastructure therein shall be 
19 
undertaken only with the prior approval of the LGU upon the endorsement of the local 
20 
forestry boards, and after compliance with EIS and ECC requirements: Provided further, 
21 
That the LGU shall endorse to the Secretary who shall recommend to Congress or the 
22 
President of the Philippines the reversion to the LGU of the jurisdiction and control over 
23 
forestlands that are no longer needed nor used for the purpose by which they have been 
24 
constituted or in case the agency concerned fails to rehabilitate, protect, and conserve the 
25 
forestland resources in accordance with the approved management plan. The LGU, in 
26 
coordination with its forestry board and consistent with the watershed continuum plan, shall 
27 
determine the use of the reverted forestlands. 
28 
29 
30 
SECTION 23. Forest Resources within Alienable and Disposable Lands. All 
31 
forest resources planted or raised within alienable and disposable lands belong to the 
32 
holder of the instrument giving rights to the claimant, who shall have the right to sell, 
33 
contract, conveyor dispose of the same subject to a certification process to be developed 
34 
by the Department. The Department shall prepare the guidelines in coordination and 
35 
cooperation with LGUs and multisectoral consultations. Holders of said instruments who 
36 
register their forests lands for forestry purposes with the LGU shall be assisted in the 
37 
preparation of a management plan consistent with the watershed continuum management 
38 
plan, and shall be entitled to appropriate incentives provided under Section 44 herein, on 
39 
reforestation in private lands: Provided, That alienable and disposable lands devoted to the 
40 
planting and harvesting of forest resources shall remain subject to the provisions of 
41 
Republic Act No. 6657 or the Comprehensive Agrarian Reform Law or any other similar law 
42 
that may be enacted. 
43 
44 
45 
SECTION 24. Forest Resources within Production Forestlands. Resources, 
46 
including non-timber forest products, its by-products and its derivatives, whether naturally 
47 
growing, planted or raised, which have been taken or have been applied with some 
48 
silvicultural practices, within production forestlands shall be issued the appropriate permit, 
49 
agreement or clearance. Any declaration of forest resources as threatened shall be in 
50 
accordance with the Wildlife Act and other relevant laws. 
51 
52 
53 
54 
55 
56 
57 
58 
59 
SECTION 25. Logging in Production Forestlands. To ensure the conservation 
and sustainable use of forest resources in production forestlands, holders of timber 
licenses, permits and/or agreements shall submit to the LGU an Integrated Operations Plan 
(lOP) containing strict environmental guidelines such as ECC compliance. All forest 
development activities such as logging, reforestation, timber stand improvement, forest 
protection, and delivery of community service within an area covered by timber conceSSions 
shall be consolidated under the lOP, which shall be prepared by or under the supervision of 


1 
an accredited private registered forester whose signature and dry seal shall appear in the 
2 
plan and the supporting documents submitted for this purpose. 
3 
4 
5 
SECTION 26. Forest Resources within Protection Forestlands. Only non-timber 
6 
forest products shall be allowed to be extracted from protection forestlands and shall be 
7 
issued the appropriate permit, agreement or license, Provided, that harvesting or gathering 
8 
of timber for sUbsistence use of indigenous communities and forest communities shall be 
9 
allowed but only in woodlots established by the communities. Any declaration of forest 
10 
resources as threatene, and other restrictions shall be in accordance to the Wildlife Act. 
11 
12 
SECTION 27. Absolutely Prohibited Activities in Protection Forestlands. 
13 
Commercial logging, mining and other similar extractive activities such as but not limited to 
14 
treasure hunting shall be absolutely prohibited in protection forestlands. 
15 
16 
17 
SECTION 28. Review of Reservations within Protection Forestlands. All 
18 
reservations made within protection forestlands shall be reviewed. Reservations which are 
19 
contrary to the provisions of this Act, including, among others, mineral or settlement 
20 
reservations, shall be withdrawn. 
21 
22 
23 
SECTION 29. Commercial Logging Ban in Protection forestlands. There shall be 
24 
a permanent ban on commercial logging activities in all protection forests defined, 
25 
categorized, and sub-classified in Section 8(a) herein. No licenses, permits, or agreements 
26 
to cut any timber therein shall be issued. 
27 
28 
SECTION 30. Protection Forestlands covered by Existing Permits, Licenses 
29 
and/or Agreements. All existing permits, licenses and agreements shall be reviewed, and, 
30 
if protection forestlands are found within an agreement or licensed area, such protection 
31 
forestlands shall be immediately excised from said permit, license and/or agreement, and 
32 
the holder of the agreement or license shall establish a buffer zone and delineate their 
33 
boundaries with the production forestlands, marking the same with concrete monuments, 
34 
road, or infrastructure, or any other visible, permanent, and practicable signs. 
35 
36 
37 
SECTION 31. Duty of the License Permit-holder. In coordination with the 
38 
concerned LGU, the agreement- or license-holders shall protect and conserve such 
39 
protection area following a plan consistent with the prescribed management plan for key 
40 
biodiversity areas or similar strategies by the Department. The agreement- or license-holder 
41 
concerned shall be accountable for the destruction of such protection forestlands that did 
42 
not result from force majeure, and such destruction shall serve as basis, in addition to the 
43 
other violations enumerated in this Act hereof, for the termination or revocation of the 
44 
agreement, license, or permit, and the filing of proper charges under the NIPAS Act and 
45 
pertinent forestry laws, rules and regulations. In the absence of a contractor or agreement 
46 
holder over such production forestlands, the delineation of said boundary shall be 
47 
undertaken and prioritized by the Department. 
48 
49 
SECTION 32. Non-Extension of Timber License Agreements. No extensions 
50 
shall be made on any existing TLA, and the area covered by the agreement shall 
51 
automatically be sub-classified as protection forestland after the representatives of the 
52 
Department, the LGUs concerned, the Department of Agrarian Reform, NGOs, peoples" 
53 
organizations, and other stakeholders had excluded degraded areas that may be subject of 
54 
a reforestation project. 
55 
56 
57 
58 
59 
SECTION 33. Forest Resources within Ancestral Domains/Ancestral Lands. 
When forest resources are within ancestral domains/ancestral lands which are otherwise 
production or protection forestlands, aside from the necessary permit, license or agreement, 
the genuine free, prior and informed consent of the indigenous communities shall also be 


1 
secured, Provided, That if the indigenous communities will themselves harvest these 
2 
resources for their subsistence or survival use, the provisions of IPRA shall apply and no 
3 
permits shall be required as owners of such resources, Provided finally, That, if the 
4 
indigenous peoples will themselves harvest such resources for commercial purposes, they 
5 
shall be subject to the same limitations and conditions as provided by this Act. 
6 
7 
The National Commission on Indigenous Peoples (NCIP) shall coordinate and 
8 
consult the Department in providing assistance to the indigenous peoples in the sustainable 
9 
management and development of forest resources within ancestral lands and domains. 
10 
11 
SECTION 34. Mandatory EIA. Any permit, license, agreement or any other 
12 
instrument to develop or use forestlands or resources therein, including those found within 
13 
ancestral domains/lands that would result in severe soil erosion or environmental 
14 
degradation shall be subject to the provisions of Environmental Impact Assessment (EIA) in 
15 
accordance with Presidential Decree No. 1151 or the Philippine Environmental Policy, 
16 
Presidential Decree No. 1586, Establishing an Environmental Impact Statement System, 
17 
and this Act. 
18 
19 
CHAPTER IV 
20 
FOREST MANAGEMENT PLANNING, MONITORING AND ASSESSMENT 
21 
22 
SECTION 35. Forestry Master Plan. The Department shall periodically prepare the 
23 
map, revisit or review the Forestry Master Plan in consultation with local stakeholders, and 
24 
shall revise the said plan according to the provisions of this bill, taking also into 
25 
consideration biodiversity conservation, carbon sequestration and other matters of the same 
26 
import. The Forestry Master Plan shall be presented to all LGUs, and other stakeholders 
27 
upon completion and shall be posted in conspicuous areas and made accessible to the 
28 
public. 
29 
30 
SECTION 36. Sustainable Forest Management Planning. Subject to vested or 
31 
prior rights, the Department, in consultation and coordination with LGUs, other government 
32 
agencies, local communities, non-government organizations, individual and corporate 
33 
entities, private sectors, academic and research institutions, and other concerned sectors 
34 
shall, within one (1) year from the effectivity of this Act, develop and adopt a sustainable 
35 
forest management strategy for each well-defined watershed or other appropriate forest 
36 
management unit based on criteria, indicators, and standards for sustainable forest 
37 
management which, at their minimum, address the following reqUirements: 
38 
39 
a. Rational allocation of forestland uses and promotion of land use practices that 
40 
increase productivity and conserve soil, water, and other forestland resources; 
41 
42 
b. Protection of existing forest resources and conservation of biodiversity; 
43 
44 
c. Restoration of denuded areas, making use of indigenous tree species for biodiversity 
45 
conservation in protection forests and buffer strips of water channels and bodies; 
46 
47 
d. Establishment of tree plantations in production forest lands, private lands, and 
48 
alienable and disposable lands; 
49 
50 
e. Enhancement of the socio-economic well-being of local communities including 
51 
indigenous peoples who are largely dependent on the forest for their livelihood; 
52 
53 
54 
55 
56 
57 
58 
59 
f. 
Promotion of closer coordination between and among the Department, LGUs, other 
national agencies, non-government organizations, local communities, the private 
sector, academic and research institutions and other entities in the sustainable 
management of forestlands; 
g. Adoption of community-based forest management as a principal strategy in the 
management of forestlands and resources' and 
, 
, 


1 
2 
h. Harmonization and integration of the forest management plan of forestlands and 
3 
resources with other plans, such as the forest management plan and the land use 
4 
plans of the LGUs, protected areas management plans in areas covered by the 
5 
same, critical habitat management plan, barangay development plan, CLUP of cities 
6 
and municipalities and physical framework plans of the provinces and the regional 
7 
development plans, and be consistent with the ancestral domain management plans 
8 
and protected area management plans areas covered. 
9 
10 
The Department shall continue to adopt the Master Plan for Forestry Development 
11 
subject to periodic review every five (5) years. 
12 
13 
SECTION 37. Watershed Continuum Management Strategy. The Watershed 
14 
Continuum Planning and Management Framework in Environment and Natural Resources 
15 
shall be adopted. The strategy for improved watershed resources management shall be 
16 
demand-driven, community-based, and multiple- and sustainable-use considering national 
17 
priorities and concerns of local stakeholders. Watershed continuum management programs 
18 
initiated by the government shall be guided by ecological, socio-cultural, economic, and 
19 
institutional sustainability principles. A National Watershed Information System shall be 
20 
developed to guide policy formulation, program development, and implementation of 
21 
watershed continuum management initiatives. The Department in consultation with the 
22 
LGUs shall identify the watershed continuum in the country and provide the maps for each. 
23 
24 
SECTION 38. Prioritization of watersheds. A system of prioritization of watersheds 
25 
shall be pursued considering the following: 
26 
27 
a. Biodiversity and environmental enhancement; 
28 
29 
b. Cultural and historical value; 
30 
31 
c. Water supply for domestic, irrigation, power, industrial, and commercial use; 
32 
33 
d. Contribution to the economy; and 
34 
35 
e. Effect on downstream areas. 
36 
37 
SECTION 39. Forest Resource Database and Monitoring System. Areas 
38 
identified by the Department as forests as defined under this Act shall be verified and 
39 
validated by the Forest Development Center, including those within ancestral domains and 
40 
lands. A centralized forestland resource database shall be made available to the public at 
41 
all times, online if possible, which shall consist of comprehensive updated information on 
42 
the physical, social, economic, biological, environmental and cultural components of the 
43 
country"s forestlands and shall include a log control monitoring or timber identification 
44 
system to enable the Department and its field offices to track the movement or transfer of 
45 
timber and other forest products from a forestland source to their end users. The 
46 
Department shall conduct and/or update forest resource inventory at least once every five 
47 
(5) years to ensure effective management. 
48 
49 
SECTION 40. Environmental Impact Assessment, Resource Accounting and 
50 
Valuation. All new environmentally critical projects to be implemented in forestlands, such 
51 
as harvesting, grazing and other special uses, mineral prospecting and exploration, and 
52 
road, infrastructure, and mill construction, shall be subject to Environmental Impact 
53 
Assessment (EIA) in accordance with Presidential Decree No. 1151 or the Philippine 
54 
Environmental Policy, and Presidential Decree No. 1586, Establishing an Environmental 
55 
Impact Statement System. A scientific resource valuation of impacts of affected biophysical 
56 
and environmental elements, and an extended benefit cost analysis shall be used in the 
57 
EISS. The Department shall deSign and implement a system of regular periodic monitoring 
58 
and assessment using the Criteria and Indicators as framework and shall formulate 
59 
appropriate standards as basis for assessing progress towards sustainable forest 


1 
management. Furthermore, the Department shall design and implement an appropriate 
2 
natural resources accounting and valuation system for various forestry initiatives. The 
3 
Department shall establish the total value of forestlands based on multiple uses, including 
4 
their environmental services. 
5 
6 
CHAPTER V 
7 
REFORESTATION AND RESTORATION 
8 
9 
SECTION 41. Restoration in Protection Forestlands. The restoration of all critical 
10 
watersheds and critical, denuded, and degraded forests within protection areas shall be 
11 
prioritized. Only the use of indigenous or native species in the restoration and rehabilitation 
12 
of protection areas shall be adopted to enhance biological diversity therein. The LGUs in 
13 
coordination with the Department, other government agencies, NGOs, local residents and 
14 
communities, and other sectors concerned, shall identify and prioritize forestlands to be 
15 
reforested. The LGU, consistent with the watershed continuum plan and the corresponding 
16 
municipal forest land use plan may enter into agreements with qualified persons, including 
17 
forest community organizations, in the restoration of protection forestlands. 
18 
19 
SECTION 42. Identification of Restoration Forestlands. LGUs, in cooperation 
20 
with the DENR and other government agencies, NGOs, local residents and communities 
21 
shall identify and prioritize forestlands to be restored, Provided, priority restoration shall be 
22 
a band of 200 meters from the boundary of protection areas and protected areas, 
23 
abandoned mines and abandoned and idle fishponds for mangrove restoration. For 
24 
mangrove forests, the LGU shall prepare a rehabilitation plan to restore mangroves in their 
25 
area. Provided further, That an accelerated restoration program in such identified priority 
26 
protection forestlands shall be undertaken to raise the forest cover therein at least fifty 
27 
percent (50%) of the prioritized area within five (5) years and eighty percent (80%) of the 
28 
area within ten (10) years from effectivity of this Act. The LGU shall allot funds to effectively 
29 
accomplish restoration either by its own or through permit, license and/or agreement in 
30 
protection forestlands. The Department or other agencies responsible for restoration shall 
31 
give priority to local communities in the granting of technical and financial assistance for 
32 
restoration activities, Provided final/y, That assisted natural regeneration (ANR) shall be 
33 
encouraged in protection forestlands. 
34 
35 
SECTION 43. Reforestation or Tree Plantation Development in Production 
36 
Forestlands. In accordance with Section 50 herein, the LGU may enter into joint venture, 
37 
co-production, or production-sharing agreement with qualified persons to reforest or to 
38 
develop tree plantations in production forestlands, Provided, that palm plantations and the 
39 
like shall not be allowed in production forestlands. 
40 
41 
42 
43 
44 
45 
46 
47 
48 
49 
50 
51 
52 
53 
54 
55 
56 
57 
58 
59 
SECTION 44. Reforestation in Forestlands under the Jurisdiction of Other 
Government AgenCies. Government agencies and institutions having management control 
over forestlands pursuant to a law or grant shall be responsible for the reforestation of 
denuded and degraded portions of such forestlands. The reforestation program of these 
agencies shall aim to increase the vegetation of the degraded areas using native species, to 
be identified jointly by the Department and agency concerned and multisectoral 
stakeholders. The concerned agency in coordination with the LGU shall prepare the 
reforestation plan, consistent with the watershed continuum plan and determine the ratio of 
forested areas at any given time. Failure to reforest denuded and/or degraded forestland 
identified in the reforestation plan within the period herein prescribed shall be sufficient 
ground to request for reversion of the said forestlands to the jurisdiction and control of the 
LGU: Provided, however, That in areas where Community-based Forest Management 
Strategy (CBFMS) shall be implemented or where there are existing facilities for basic 
services such as water and power as allowed by the Department pursuant to the provisions 
of this Act, the completion of the reforestation program shall be subject to the conditions 
provided in the instrument to be awarded by the Department and the agency concerned to 
the participating local community or individual or in the Forest Management Agreement of 
contractors operating such facilities for basic services, as approved by the Department. 


1 
Provided finally, that whenever applicable, the use of ANR shall be preferred and 
2 
community-based forest management encouraged. 
3 
4 
5 
SECTION 45. Reforestation in Alienable and Disposable Lands and/or Private 
6 
Lands. Reforestation or the establishment of tree farms or tree plantations in private lands 
7 
guided by the watershed continuum Plan shall be encouraged: Provided, That such private 
8 
lands and other alienable and disposable lands are not prime agricultural lands as 
9 
determined or certified by the Department of Agriculture (DA). The private landowner(s) 
10 
shall also be entitled to the incentives provided for under Section 44 herein: Provided, That 
11 
such private tree plantations are duly registered with the Department. Whenever applicable, 
12 
use of ANR shall be preferred and community-based forest management encouraged. 
13 
14 
15 
SECTION 46. Incentives of Reforestation or Restoration within Production 
16 
Forestlands. To encourage qualified persons to engage in restoration or reforestation 
17 
activities, the following incentives shall be granted: 
18 
19 
a. Upon the premature termination of the agreement at no fault of the holder, all 
20 
depreciable permanent and semi-permanent improvements such as roads, buildings, 
21 
and nurseries including the planted and standing trees and other forest crops 
22 
introduced and to be retained in the area shall be properly evaluated and the holder 
23 
shall be entitled to a fair compensation thereof, the amount of which shall be 
24 
mutually agreed upon by both the LGU and the agreement holder, and in case of 
25 
disagreement between them, by arbitration through a mutually acceptable and 
26 
impartial third party adjudicator; 
27 
28 
b. The agreement holder has the right to transfer, contract, sell, or convey his rights to 
29 
any qualified person following the guidelines to be issued by the Secretary, 
30 
Provided, that if such restoration or reforestation were conducted within ancestral 
31 
domains/ancestral lands, the transferee shall secure the free, prior and informed 
32 
consent of the indigenous communities of such ancestral domains/ancestral lands 
33 
prior to such transfer; and, 
34 
35 
c. In the event that the area restored has provided ecological services to the 
36 
community, user fees shall be allowed as incentives. 
37 
38 
The Secretary may provide or recommend to the President or to Congress other 
39 
incentives in addition to those granted herein and in existing laws in order to promote 
40 
reforestation and the establishment of tree plantations, Provided, That in no case shall the 
41 
Secretary provide incentives that shall put the State at a gross disadvantage, nor shall the 
42 
Secretary provide incentives of non-payment of taxes or other rightful fees due to the State 
43 
as provided by other laws. 
44 
45 
46 
47 
48 
49 
50 
51 
52 
53 
54 
55 
56 
57 
58 
59 
SECTION 
47. 
Reforestation 
in 
Ancestral 
Domains/Ancestral 
Reforestation in ancestral domains/ancestral lands, if not undertaken by the 
themselves, shall require the free, prior and informed consent of the ICCsIIPs. 
Lands. 
ICCslIPs 
SECTION 48. Reforestation in Protection Forestlands. The Department may 
contract out the reforestation and/or management of protection forestlands to any person, 
ProvIded, that such persons should meet the qualifications enumerated in Section 54. The 
Department shall reasonably compensate such persons for such reforestation and/or 
management activities and extend the necessary assistance in the reforestation and/or 
management of such protection forestlands. 
SECTION 49. Voluntary Offer to Reforest. Private landowners, whether natural or 
juridical persons, may partiCipate in reforestation and plantation development or similar 
programs of the LGU or the Department, with the landowner contributing his land and the 


1 
LGU or Department furnishing funds to reforest the area on a co-production agreement: 
2 
Provided, That the property shall be exclusively devoted to the planting of forest species for 
3 
at least one (1) rotation, which undertaking shall be annotated at the back of the title of the 
4 
property: Provided, further, That prime agricultural lands as determined or certified by the 
5 
DA shall not be the subject of a voluntary offer to reforest. 
6 
7 
CHAPTER VI 
8 
COMMUNITY-BASED FOREST MANAGEMENT STRATEGY 
9 
10 
SECTION 50. Community-Based Forest Management Strategy (CBFMS). 
11 
Whenever they are present, forest resident families, communities, indigenous peoples and 
12 
other communities whose lives, culture and general well-being are intimately linked with the 
13 
forests, shall be entrusted with the responsibility to protect, manage, develop and utilize 
14 
resources limited to woodlots and non-timber forest products (NTFP) under the principle of 
15 
stewardship. Timber harvesting shall only be allowed in production forestlands designated 
16 
in the Community Resource Management Plans (CRMP). The Department together with the 
17 
LGUs, and in consultation with affected stakeholders and sectors, shall develop policies, 
18 
criteria, guidelines and tenurial instruments that will simplify and allow access of forest 
19 
resident families, and local communities to forestland resources. The LGUs will review all 
20 
CBFMAs in their jurisdiction to assess performance and determine membership status of 
21 
the CBFMA-holder. The Department together with the LGUs, in consultation with affected 
22 
stakeholders and sectors, shall furthermore develop policies, and guidelines that promote 
23 
partnership between the private sector and forest-based communities in pursuit of 
24 
sustainable community forest management activities. 
25 
26 
27 
SECTION 51. Areas Available for CBFMS. Subject to prior or vested rights, the 
28 
CBFMS may be implemented on all appropriate forestlands excluding the ancestral 
29 
domains/ancestral lands of ICCs/lPs. Priority will be given to degraded and denuded 
30 
forestlands. 
31 
32 
The LGU may only allow the implementation of CBFMS in watershed reservations if 
33 
it shall promote their protection and rehabilitation; Provided, however that land-use 
34 
practices and activities therein are in accordance with a management plan duly approved 
35 
by the Secretary and shall not induce severe soil erosion and surface run-off: Provided, 
36 
further, That no timber harvesting shall be allowed in forests;Provided also, That no CBFM 
37 
agreements shall be issued to non-ICCslIPs within ancestral domains/ancestrallands, 
38 
Provided finally, CBFMAs shall not cover Certificate of Land Ownership Awards (CLOAs) 
39 
and other tenurial instruments. 
40 
41 
SECTION 52. Community Resource Management in CBFM Areas. The 
42 
management of forestland resources in CBFM areas shall be embodied in a community 
43 
resource management plan, which shall contain the community's vision, aspirations, and 
44 
strategies in the management of forestland resources, which shall be consistent with the 
45 
forestland use plan (FLUP). Qualified communities shall be provided with appropriate long-
46 
term security of tenure, technical, managerial and financial aSSistance, training; and other 
47 
assistance, as the case may be, to empower them to manage and benefit from the 
48 
forestland resources on a sustainable basis. 
49 
50 
SECTION 53. Qualified PartiCipants. Organized forest communities shall be given priority 
51 
to participate in the CBFM program. Organizations eligible to participate in CBFM shall have 
52 
the following qualifications: 
53 
54 
a. Members shall be Filipino citizens; and 
55 
56 
b. Members shall be any of the following: 
57 
58 
i. 
Traditionally utilizing the resource for their livelihood; 
59 
ii. Actually residing within the area for at least five (5) years; and 


1 
iii. Residing adjacent and actually tilling portions of the area to be awarded. 
2 
3 
SECTION 54. Modes of Management Agreements. The conservation, protection, 
4 
development, utilization, and management of forestlands and/or forest resources shall be 
5 
undertaken under the supervision of the State through the LGUs. The State may directly 
6 
undertake such activities or it may enter into co-production, joint venture or production 
7 
sharing agreement with qualified Filipino citizens or corporations or associations over the 
8 
management of production forestlands, subject to relevant laws, rules and regulations, 
9 
Provided, That interested local communities through their organized and duly recognized 
10 
associations shall be given priority in the grant of appropriate instruments implementing the 
11 
said agreements. Such instruments and/or agreements shall have a duration of twenty-five 
12 
(25) years, renewable for another twenty-five (25) years, under such terms and conditions 
13 
as may be provided by the Secretary, after observing the qualification of the succeeding 
14 
sections; Provided further, That management agreements shall not be issued in favor of any 
15 
person covering ancestral domains/ancestral lands without the free, prior and informed 
16 
consent of the concerned ICCs/IPs and the recognition and protection of ICCs/lPs rights 
17 
under pertinent laws; 
18 
19 
Current valid and subsisting licenses, contracts, or agreements granted by the 
20 
government for the development, management, and utilization of forest resources within 
21 
protection forestlands shall be allowed to continue under the same terms and conditions 
22 
until their expiry; Provided, That no cutting or felling of trees shall be allowed within the said 
23 
protection forestlands, Provided further, That such agreements issued within ancestral 
24 
domains should have had the free, prior, and informed consent of the ICCs/lPs involved, 
25 
otherwise, such license, contracts or agreements shall be cancelled and revoked for 
26 
violating the rights of said ICCs/lPs. 
27 
28 
All agreements entered into pursuant to this section shall be subject to the approval 
29 
of and monitoring by the LGU, Provided further, That all applications and approved 
30 
agreements shall be posted in public places. 
31 
32 
SECTION 55. Terms and Conditions of Agreements. The Department, in 
33 
coordination with the LGUs, and, having undergone multi-stakeholder consultations shall 
34 
formulate rules and regulations covering the relevant terms and conditions thereof. 
35 
36 
SECTION 56. Minimum Conditions for the Issuance of Co-Production, Joint 
37 
Venture and Production Sharing Agreement. The following provisions shall be the 
38 
minimum conditions for the issuance of co-production, joint venture and production sharing 
39 
agreement: 
40 
41 
a. The holder is a Filipino citizen; 
42 
b. The agreement holder shall furnish the necessary management, technology and 
43 
financial services when required, as determined by the Secretary; 
44 
c. Provision/s for government share of revenues and the manner of payment thereof; 
45 
d. Provision/s on consultation and arbitration with respect to the interpretation of the 
46 
agreement; 
47 
e. Provision/s for anti-pollution and environmental protection measures; 
48 
f. Provision/s prescribing the preferential use of indigenous tree species for tree 
49 
plantations: Provided, that in case of protections forestlands, only indigenous tree 
50 
species shall be used; 
51 
g. Provision/s for an effective monitoring scheme to be implemented by the LGU, 
52 
which shall include, but shall not be limited to periodic inspection of all records 
53 
and books of account of the agreement holders; 
54 
h. Commitment to community development including capacity building of local 
55 
stakeholders; 
56 
i. The submission of a management and development plan to be approved by the 
57 
LGU; and 
58 
j. Other provisions that the LGU shall impose, upon the recommendation of the 
59 
Director of the FMB, that will improve and sustain the development and 


1 
2 
3 
4 
5 
management of the forestlands and its resources, which shall include, among 
others, a projection of annual income and revenues generated, to be used as basis 
in the determination of government shares. 
6 
SECTION 57. Transfer. No holder of a co-production, joint venture, or production 
7 
sharing agreement or contract shall sub-contract, transfer, exchange, sell or convey the 
8 
same or any of his right or interests therein without a written authority from the LGU. 
9 
Moreover, no transfer shall be authorized unless the agreement or contract has been in 
10 
existence and active for at least three consecutive years from issuance thereof: Provided, 
11 
That the transferor has faithfully complied with the terms and conditions of the said 
12 
agreement or contract; the transferee has all the qualifications and none of the 
13 
disqualifications to hold the same; and the transferee shall assume the obligations of the 
14 
transferor. Failure to comply with these conditions shall be sufficient cause for the 
15 
cancellation of the agreement or contract; Provided further, That if such agreement cover 
16 
ancestral domains/ancestral lands, the free, prior and informed consent of the ICCs/iPs 
17 
involved with regard to such transfer shall be secured, otherwise, said agreement shall be 
18 
cancelled. 
19 
20 
21 
SECTION 58. Non-Timber Forest Products. Rattan, bamboos, vines, herbs, 
22 
exudates and other non-timber forest products are integral parts of the forest ecosystem. 
23 
The planting and sustainable management of non-timber producing species shall be 
24 
encouraged and supported, Provided, That they are indigenous species. The development, 
25 
management and utilization of non-timber forest products shall be allowed in accordance 
26 
with the FLUP, and corresponding laws and regulations enforced by the LGU and 
27 
consistent with guidelines to be promulgated by the Department in compliance with national 
28 
and international policy or agreements. 
29 
30 
31 
SECTION 59. Priority to Harvest, Utilize, Gather or Collect NTFP. In granting 
32 
permits to harvest, utilize, gather or collect non-timber forest products, in their natural or 
33 
original state from forestlands, priority shall be given to forest resident families, local 
34 
communities, and indigenous peoples living nearest the subject forestlands; Provided, That 
35 
the wildlings collected from the forests shall be utilized for nursery establishments, research 
36 
and development and shall be subject to guidelines formulated in the establishment of 
37 
nurseries 
38 
39 
40 
SECTION 60. Silvicultural and Harvesting System. The Department shall 
41 
formulate the appropriate silvicultural and harvesting system and all measures shall be 
42 
taken to achieve an approximate balance between growth and harvest that is consistent 
43 
with the NBSAP. The use of forest products from production forestlands shall be promoted 
44 
and practiced. 
45 
46 
SECTION 61. Mangrove forest. Cutting in mangrove forests shall be prohibited. 
47 
The Department shall formulate a program for the restoration of mangrove forests and shall 
48 
promote strategies that are consistent with biodiversity conservation or enhance 
49 
biodiversity. 
50 
51 
SECTION 62. Grazing. Land for grazing purposes shall only be limited to production 
52 
forestlands. The Department shall identify and delimit areas suitable for grazing purposes: 
53 
Provided, That no forestland fifty percent (50%) in slope or over may be utilized for grazing 
54 
purposes: Provided also, That vegetation should be sufficient for livestock prior to the grant 
55 
of such permits, Provided, further, That existing pasture lease agreements or forestland 
56 
grazing lease agreements shall be allowed to continue under the same terms and 
57 
conditions until their expiry: Provided also, That burning of grass for the purpose of grazing 
58 
shall be prohibited; Provided, finally, That abandoned or idle, expired, or cancelled grazing 
59 
or pasture lands shall be subject to land use capability assessment and or land use 


1 
suitability assessment to determine their best use or combination of uses. No new grazing 
2 
or pasture permit, lease, or contract shall be issued, nor existing ones allowed to continue 
3 
unless covered by existing rules and regulations governing the Philippine EIS System and 
4 
subject to provisions in this Act. 
5 
6 
EXisting pasture lease agreements or forestland grazing lease agreements shall be 
7 
subject to review and monitoring by the LGU. Recommendations resulting from the review 
8 
shall be given primary basis for actions. 
9 
Applications for new pasture lease agreements or forestland grazing lease agreements 
10 
shall be reviewed and approved by the LGU and be covered by existing rules and 
11 
regulations governing the Philippine EIS System and subject to proviSions of this Act. 
12 
13 
SECTION 63. Mining and Power Generation Operations in Forestlands. Forest 
14 
resources inside mineral reservations and permitted areas and their management and 
15 
utilization are subject to the provisions of this Act. Power generation and small-scale mining 
16 
operations in forestlands, except in protection forestlands may be allowed only after the 
17 
issuance of an ECC and in compliance with other relevant laws. Mining and power 
18 
generation shall not be allowed in protection and restoration areas, Provided, That micro-
19 
hydro or other renewable energy device may be allowed subject to the provisions of this 
20 
Act. 
21 
22 
23 
SECTION 64. Roads and Other Infrastructures. Roads and other infrastructure, 
24 
including the development of mineral reservations and energy resources inside forestlands, 
25 
shall be constructed with the least impairment to the resource values and with the least 
26 
impact and disturbance to biodiversity of the area found in such forestlands. Government 
27 
agencies 
and 
their contractors undertaking the 
construction 
of roads, 
bridges, 
28 
communication and other infrastructure facilities and installations inside forestlands shall 
29 
seek prior authority from the Department and shall comply with existing rules and 
30 
regulations governing the Philippine EIS System, Provided, That no roads or other 
31 
infrastructure shall be constructed in protection forestlands. 
32 
33 
34 
35 
CHAPTER VIII 
WOOD-BASED INDUSTRIES 
36 
SECTION 65. Establishment and Operations of Timber-Based Industries. The 
37 
State, through the Department, may promote the establishment, operation, and 
38 
development of timber-based industries only in production forestlands. 
39 
40 
SECTION 66. Incentives for Timber-Based Industries. All agreements pertaining 
41 
to timber-based industries shall also be subject to review by the Department under 
42 
procedures to be formulated by the Department with mandatory consultation with 
43 
stakeholders. The following incentives are hereby granted in addition to those already 
44 
provided by law: 
45 
46 
a. All processing plants or mills shall be assured of their supply of raw materials, 
47 
preferably but not exclusively from local sources; 
48 
b. All processing plants or mills shall be granted operating permits for five (5) years 
49 
renewable for another five (5) years: Provided, That permits for processing plants 
50 
owned or operated by holders of timber plantation agreements or contracts shall be 
51 
co-terminus with said agreements or contracts. 
52 
53 
Warranties to and agreements with eXisting integrated forest-based plants to ensure 
54 
the availability of raw materials shall be subject to the process for as long as such 
55 
integrated plants are operating. Agreements or licenses over production forestlands granted 
56 
to timber-based plants shall not be automatically converted into any mode authorized in this 
57 
Act. Holders of expired agreements may apply for a new permit, license or agreement 
58 
subject to the provisions of this Act. Permit holders are allowed a period of twenty-five (25) 
59 
years, renewable for another twenty-five (25) years, for a maximum of fifty (50) years. 


1 
Expansion in capacity of timber-based plants shall be encouraged and the same shall be 
2 
given priority access to production forestlands and other areas available for development as 
3 
source of raw materials. 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
38 
39 
40 
41 
42 
43 
44 
45 
46 
47 
48 
49 
50 
51 
52 
53 
54 
55 
56 
57 
58 
SECTION 67. Export and Sale of Locally Produced Wood Products. No natural 
grown trees shall be cut, gathered, harvested or removed from forests. Logs, lumber and 
other finished products from tree plantations shall be exported only under such guidelines 
as the Secretary may promulgate and certified as coming from the production forestlands by 
LGUs. A certification process shall be formulated by the Department in consultation with key 
stakeholders. 
SECTION 68. Compliance of Grading Rules. 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 grading rules 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 permit, or other license or permit authorizing the manufacture or 
sale of such products. 
SECTION 69. 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 authorization of the Secretary and to the tariff and duties under 
Presidential Decree No. 1464 as well as quarantine regulations. Any product manufactured 
or re-manufactured out of imported forest and wood materials shall be allowed to be sold in 
the domestic or international market: Provided, That the grading rules and standards 
therefore are complied with, otherwise the sanctions in Section 69 hereof shall be imposed. 
CHAPTER IX 
CHARGES, FEES AND GOVERNMENT SHARE 
SECTION 70. Fees and Government Shares for the Utilization, Exploitation, 
Occupation, Possession of and Activities within Forestlands. The Department shall 
prescribe appropriate government shares, including and rentals for the different kinds of 
utilization, explOitation, occupation, possession, or activities within forestlands: Provided, 
That payment of or collection of such fees and rentals shall be waived for partieslindustries 
mandated by law to manage, conserve, develop and protect forestlands 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 agreements with the Department as provided for under Section 84 of this Act 
shall also be entitled to the waiver of fees, except administrative fees. 
The State shall collect government shares from income, rentals or other fees, as 
owner of the resource and for its regulatory function. The guidelines to be formulated should 
ensure equitable sharing between the national government and LGUs. 
In order for the Department to prescribe appropriate and equitable fees for the use of water 
and other forest resources by parties/industries concerned for power generation, domestic 
and industrial irrigation, carbon sequestration and biodiversity benefits respectively, by 
parties/industries concerned taking into consideration natural resource valuation in the 
assignment of fees and ensuring equitable sharing of benefits between concerned national 
government agency and LGU, the Department shall initiate the creation of an inter-agency 
task force for this purpose. 
SECTION 71. Timber Charges. There shall be collected charges on each cubic 
meter of timber cut in forestlands, using direct and indirect values, whether belonging to the 
first, second, third or fourth group, twenty-five percent (25%) of the actual freight of board 
(FOB) market price based on species and grading: Provided, however, That, in the case of 


1 
pulpwood and matchwood cut in production forestland, forest charges on each cubic meter 
2 
shall be ten percent (10%) of the actual FOB market price. 
3 
4 
SECTION 72. Charges on Firewood, Branches and Other Recoverable Wood 
5 
Wastes of Timber. There shall be collected timber charges of one percent (1 %) of the 
6 
market price on each cubic meter of firewood cut in production forestlands, branches and 
7 
other recoverable wood wastes of timber, such as timber ends, tops and stumps, when 
8 
used as raw materials for the manufacture of finished products, Provided, That the cutting of 
9 
all mangrove species shall be prohibited, Provided further, That only third of fourth group 
10 
wood may be taken for firewood, Provided finally, That, if jointly authorized by the 
11 
Secretaries of both the Department and the DA, first and second group woods may be 
12 
removed from land which is more valuable for agriculture than for forest purposes, subject 
13 
to the charges in the preceding section. 
14 
15 
SECTION 73. Charges on Non-Timber Forest Products. All other forest products 
16 
of forestlands which are not covered by the preceding section shall be exempted from any 
17 
or all forest charges, except rattans, gums resins, beeswax, guttapercha, almaciga, resin, 
18 
bamboo, vines, herbs, exudates and other species with commercial value, which shall be 
19 
charged at ten percent (10%) of the actual FOB market price. 
20 
21 
22 
SECTION 74. Determination of Market Price of Timber and Non-timber 
23 
Products. The actual FOB market price of timber products shall be justly determined once 
24 
a year by the Secretary: Provided, that the Secretary shall cause the creation of a 
25 
committee to be composed of representatives of the Department, the National Economic 
26 
and Development Authority, the Department of Trade and Industry, the Bureau of Internal 
27 
Revenue and the wood and furniture industry and consumers, LGUs, academe, NGOs and 
28 
other concerned sectoral representatives which shall formulate the criteria and/or guidelines 
29 
in the determination of the actual FOB market price taking into consideration direct and 
30 
indirect values to be used as the basis for the assessment of the ad valorem tax, taking into 
31 
consideration production cost (developing cost, contingencies, and miscellaneous cost), 
32 
species and grade of timber, government share, reforestation, tariff duties, taxes, risk 
33 
involved, and a reasonable margin of profit for domestic and export market prices for timber 
34 
and timber products. 
35 
36 
Timber charges shall also be applied to naturally growing timber and timber products 
37 
gathered from alienable and disposable lands and private lands. Timber charges collected 
38 
shall be in lieu of the administrative charge on environment and other fees and charges 
39 
imposed thereon: Provided, That planted trees and other timber products harvested from 
40 
industrial timber plantations and private lands covered by existing tiller or by approved land 
41 
application are exempted from payment of timber charges. 
42 
The duties incident to the measuring of timber products and the invoicing and collection of 
43 
the 
44 
charges thereon shall be discharged by the LGU who shall likewise provide for the time, 
45 
manner, and place of payment of such charges under regulations of the Department. 
46 
47 
SECTION 75. Fees for Administrative Services Rendered by the Department. Reasonable 
48 
fees shall be collected for various services rendered by personnel of the Department in 
49 
connection with their duties and responsibilities as may be requested by interested parties, 
50 
including but not limited, to surveying, mapping and other similar service activities: 
51 
Provided, That administrative fees shall be waived for services rendered to local 
52 
communities or indigenous peoples in the preparation of their management plans, Provided 
53 
further, That a percentage of the fees collected shall support the furtherance of formal 
54 
forestry education. 
55 
56 
57 
SECTION 76. Forest Conservation and Development Fund (FCDF). A Forest Conservation 
58 
and Development Fund (FCDF) to be administered by the LGU is hereby established to 
59 
provide sustainable funds for forest protection, restoration and management, including the 


1 
operations of the municipal forest management boards, rehabilitation and preservation of 
2 
watershed areas, CBFM program, information and educational campaign as well as 
3 
scholarship programs, policy research and development. At least seventy percent (70%) of 
4 
the forest charges and government share in all products removed from the forestlands, 
5 
rentals, proceeds from sales of confiscated forest products including conveyances, fines 
6 
and penalties, and administrative fees collected shall be set aside for the buildup of the 
7 
FCDF. The fund may be augmented by grants, donations, endowment from various 
8 
sources, domestic or foreign for purposes related to their functions: Provided, That fees 
9 
collected by the LGU consistent with the management plans formulated shall directly accrue 
10 
to the said LGU"s account: Provided, further, that a portion of the fees collected shall also 
11 
go to the host communities, which protect and maintain these watersheds, from which the 
12 
headwaters emanate. 
13 
14 
Disbursements from the fund shall be subject to the usual accounting and budgeting rules 
15 
and regulations: Provided, That no amount shall be disbursed to cover the operating 
16 
expenses of the Department and other concerned agencies. The forest management board 
17 
will recommend to the Municipal Council the thrusts for fund allocation. 
18 
19 
SECTION 77. Fees from Payment for Environmental Services (PES). The ERDB shall 
20 
formulate a certain value to environmental services, taking into account the positive and 
21 
negative spillovers of the use of such resources or externalities, and establish appropriate 
22 
pricing, institutional and redistribution systems that will lead to sustainable and socially 
23 
optimal land use practices. PES is a form of payment for ecosystem services as a method 
24 
of internalizing the positive and negative externalities associated with a given ecosystem or 
25 
a specific resource use. 
26 
27 
CHAPTER X 
28 
TREE PARKS 
29 
30 
SECTION 78. Establishment of Tree Parks in Subdivision and Tree Planting on Roadsides. 
31 
Every subdivision project to be developed after the passage of this Act shall 
32 
33 
34 
include the establishment of a tree park of not less than fifty percent (50%) of the required 
35 
total open spaces as provided in Section 2 of Presidential Decree No. 953, req uiring the 
36 
planting of trees in certain places. Guidelines for the establishment of tree parks within a 
37 
subdivision shall be prepared jointly by the subdivision owner concerned, the Housing and 
38 
Land Use Regulatory Board (HLURB) and the Department. The subdivision owner shall 
39 
provide the funds for this purpose. These guidelines and allocation of funds shall be a 
40 
condition precedent in the approval of the subdivision plan. 
41 
42 
For every major public road or irrigation construction project, the Department of Public 
43 
Works and Highways (DPWH) shall include the planting and maintenance of appropriate 
44 
trees along the road/highway or irrigation canals as landscaped areas every twenty-five (25) 
45 
kilometers thereof, whenever appropriate, and shall provide adequate funds for this 
46 
purpose. Each city and municipality shall also allocate adequate funds for the planting, care 
47 
and maintenance of trees or perennial shrubs in "greenbelts" or "green spaces" such as 
48 
road/street sides, center islands, among others. 
49 
CHAPTER XI 
50 
PROTECTION 
51 
52 
SECTION 79. Assistance of Law Enforcement Agencies. The LGUs and the Department 
53 
may call upon law enforcement agencies and instrumentalities of the Government such as 
54 
the Philippine National Police (PNP), the Armed Forces of the Philippines (AFP), and the 
55 
National Bureau of Investigation (NBI) for the enforcement of the forest-related laws, rules 
56 
and regulations. 
57 
58 


1 
SECTION 80. Role of Local Residents. It shall be incumbent upon LGUs concerned to 
2 
render assistance in protecting and conserving forestlands within their respective territorial 
3 
jurisdiction. Qualified local residents may be deputized by the LGUs to assist in the drive 
4 
against illegal logging, kaingin-making and forestland occupation. These deputized 
5 
residents shall likewise be authorized to arrest forest violators within their communities 
6 
subject to existing laws and regulations on arrest and detention. The LGUs shall provide 
7 
assistance to these deputized residents in cases instances of citizens" arrests. 
8 
9 
10 
SECTION 81. Prevention of Forest Fires. The concerned LGUs, in cooperation with the 
11 
Bureau of Fire Protection (BFP) and the Department, shall formulate and implement a fire 
12 
prevention and control program. 
13 
14 
15 
SECTION 82. Control of Forest Pests and Diseases. The Department shall likewise 
16 
formulate and implement a national integrated forest pest and disease management 
17 
program including qUarantine procedures for imported forest seeds and forest products to 
18 
prevent, minimize or control forest pests and diseases in the reforestation strategies. 
19 
20 
21 
SECTION 83. Prohibition on Genetically Engineered and Transgenic Trees. Plantingl 
22 
23 
24 
introduction and/or use of genetically engineered (GE) and transgenic trees are prohibited 
25 
in all forestlands. 
26 
27 
28 
SECTION 84. Information and Rewards System. The LGU shall establish an information 
29 
and rewards system as part of the community"s partiCipation in the protection of forest 
30 
resources. The rewards shall be payable immediately upon the establishment of prima facie 
31 
proof of violation. When an information given leads to the seizure of logs or timber and other 
32 
forest product and results in a conviction, the informer shall also be entitled to twenty 
33 
percent (20%) of the gross value of the recovered or seized forest resource. The 
34 
implementation of the rewards system shall be in collaboration with the Department, the 
35 
Forest Management Board and the Philippine National Police. 
36 
37 
CHAPTER XII 
38 
RESEARCH, EDUCATION, TRAINING AND EXTENSION 
39 
40 
SECTION 85. Research and Technology Development Transfer. Research and technology 
41 
development transfer shall be strengthened to support sustainable management of forest 
42 
resources. The Department, the Department of Science and Technology (DOST), the 
43 
Commission on Higher Education (CHED), and the State Universities and colleges shall, 
44 
within one (1) year from the passage of this Act, prepare a comprehensive sustainable 
45 
national forestry and environmental research and technology development and transfer 
46 
program in furtherance of sustainable forest management which shall be implemented, 
47 
monitored, and reviewed in accordance with existing research management systems. 
48 
Adequate and sustainable funds to implement research and technology development plans 
49 
and transfer program shall be provided by each of the aforementioned agencies and 
50 
institutions under the General Appropriations Act. 
51 
52 
Appropriate funds shall be allotted for research and development. 
53 
54 
SECTION 86. Public Information, Education and Advocacy Campaign. With the support 
55 
from LGUs, NGOs, media and other organizations, the Department, the Philippine 
56 
Information Agency (PIA), the Department of Education (DepEd), CHED, State-owned and 
57 
private universities and colleges shall formulate and implement a nationwide program for 
58 
sustained public information and advocacy campaign for forest and natural resources 
59 
conservation and sustainable forest development and management. The DepEd shall 


1 
include subjects on environment, forest and natural resources in the curricula for 
2 
elementary and high school education. The CHED shall likewise include mandatory ecology 
3 
and environment courses in the general education curricula. Congress shall allocate funds 
4 
to the Department for the purpose of coordinating a systematic campaign to promote 
5 
community ecological awareness, including the preparation of informational and educational 
6 
materials therefore. A percentage of appropriations specified in Section 122 shall be set 
7 
aside for this purpose. 
8 
9 
10 
SECTION 87. Formal Forestry, Agroforestry and environmental Education.- The 
11 
12 
13 
CHED, in collaboration with the Department, the Board of Examiners for Foresters of the 
14 
Professional Regulations Commission (PRC), Philippines Forestry Education Network, 
15 
Philippine Agroforestry leducation and Research Network, Environmental Education 
16 
Network of the Philippines and the duly accredited national professional foresters 
17 
organization shall actively pursue the rationalization of formal forestry education by 
18 
assigning higher weights on non-timber extraction subjects. The licensure exam shall 
19 
require minimum units on forest restoration related subject and the establishment of centers 
20 
of excellence in forestry and environmental education to ensure high quality manpower 
21 
output to meet the needs of the forestry sector and the country as a whole. The following 
22 
areas shall be strengthened: 
23 
24 
a. Sustainable forest management; 
25 
26 
b. Natural resource management; 
27 
28 
c. Biodiversity conservation; 
29 
30 
d. Wildlife conservation; 
31 
32 
e. Wildlife management; 
33 
34 
f. Entrepreneurship on non-timber forest resources; 
35 
36 
g. Environmental laws; 
37 
38 
h. Forest restoration technology; 
39 
40 
i. Environmental science; and 
41 
42 
j. Community development. 
43 
44 
45 
SECTION 88. Continuing Education on Forestry. A non-formal program of continUing 
46 
education shall be established to maintain the growth of the forestry profession. The PRC 
47 
Board of Examiners for Foresters and the Civil Service Commission (CSC) shall provide the 
48 
guidelines for a program in continuing education in forestry. In cooperation with academic 
49 
institutions, the Department shall develop the infrastructures to institutionalize non-formal 
50 
continuing education for the forestry sector. 
51 
52 
53 
54 
55 
56 
57 
58 
59 
SECTION 89. Training Centers. In coordination with TESDA, DepEd, CHED and State 
Universities and Colleges (SUCs) and other relevant institutions, stakeholders and local 
communities, the Department shall establish and institutionalize a network of training 
centers in strategic parts of the country to provide regular and up-to-date training on the 
various aspects of sustainable forest management and restoration to forest guards, LGUs, 
NGOs, local communities, and indigenous peoples. Furthermore, the Department shall 
ensure that personnel appointed to critical and sensitive positions undergo training to 


1 
prepare them to discharge their duties and responsibilities professionally, efficiently and 
2 
effectively. 
3 
4 
5 
SECTION 90. Policy Research and Development Network. The Department, through the 
6 
Ecosystem Research and Development Bureau (ERDB), and in collaboration with the SUCs 
7 
and private university and institutions, shall form part of a network to serve as the primary 
8 
policy research and development center for forestry and natural resources management. 
9 
The Network shall perform its functions in close coordination with the Department and other 
10 
policy research institutions in the country. It shall assist the Department in the formulation, 
11 
review, and evaluation of proposed and existing policies on forestry and natural resources 
12 
management. 
13 
14 
CHAPTER XIII 
15 
OFFENSES AND PENALTIES 
16 
17 
SECTION 91. Non-Establishment of Tree Parks/Communal Forests. Any city, municipality 
18 
or SUbdivision owner who fails to establish tree parks as provided in Sections 76 herein 
19 
shall be punished by a fine of not less than One Hundred Thousand Pesos (P100,000.00) 
20 
nor more than Five Hundred Thousand Pesos (P500,000.00). The subdivision plan will not 
21 
be given approval until guidelines have been formulated and funds have been allocated for 
22 
the purpose. 
23 
24 
25 
SECTION 92. Harvesting, Gathering and/or Collecting Timber or Other Forest Products 
26 
without Authority. Any person who shall harvest, cut, gather, collect, or remove timber or 
27 
other forest products from any forestland, or timber from all forestlands, whether protection 
28 
or production forestlands, or inside alienable and disposable public land and private lands 
29 
except as provided, or forest resources in alienable and disposable lands without authority 
30 
from the Secretary or found to possess the same without pertinent required legal 
31 
documents shall be punished by imprisonment ranging from prision mayor minimum period 
32 
to reclusion temporal minimum period and/or a fine equivalent to ten (10) times the value of 
33 
the said forest product but not less than Fifty Thousand Pesos (50,000.00): Provided, That 
34 
in the case of partnerships, associations or corporations, the president, managing partner, 
35 
and general manager shall be held liable, and if such officer is an alien, he shall, in addition 
36 
to the penalty, be deported without further proceedings on the part of the Bureau of 
37 
Immigration and Deportation. Offenders who are public officials shall be deemed 
38 
automatically dismissed from office and permanently disqualified from holding any elective 
39 
or appointive position. 
40 
41 
All timber or any forest products cut, gathered, collected, removed, or possessed and all the 
42 
conveyances, machinery, equipment, implements, work animals, and tools used in 
43 
connection with this violation shall be seized and confiscated in favor of the State. 
44 
45 
SECTION 93. lIIega/ Cutting as an Act of Economic Sabotage. Any of the acts enumerated 
46 
in the preceding section committed by an armed group or by any group through organized 
47 
and systematic manner, for commercial purposes, shall be considered an act of economic 
48 
sabotage punishable by reclusion perpetua. 
49 
50 
The commission of any of the prohibited acts by two or more individuals with or without the 
51 
aid of any mechanical device shall constitute a prima facie evidence that the act is 
52 
organized and systematic. 
53 
Any permittee/agreement holder who shall buy logs from unlicensed loggers or loggers 
54 
operating without permits shall be considered in violation of this Act and, upon conviction, 
55 
shall also be punished with reclusion perpetua. 
56 
57 
SECTION 94. Use of Illegally Cut Timber in Government Infrastructure Projects. 
58 
Contractors of government infrastructure projects shall obtain certification from the 
59 
Department that the 


1 
2 
3 
logs or lumber to be used therein were obtained from legitimate sources. The use of illegally 
4 
cut naturally grown timber from protection forests or illegally cut timber from production 
5 
forests in government infrastructure projects shall be sufficient cause for the imposition of 
6 
penalties provided in Section 88, on harvesting of forest products without authority, and 
7 
Section 89, on illegal cutting as an economic sabotage, including the withholding of the 
8 
payment to the contractor. 
9 
10 
11 
SECTION 95. Grazing Livestock on Forestlands without a Permit. Any person found to have 
12 
caused the grazing of livestock in forestlands and grazing lands without an authority under a 
13 
lease or permit to graze, upon conviction, shall be penalized with imprisonment of not less 
14 
than two (2) years nor more than four (4) years and a fine equivalent to ten times the 
15 
regular rentals due in addition to confiscation of the livestock and all improvements 
16 
introduced in the area in favor of the government, and shall restore the affected area into 
17 
the original state of the natural resource; Provided, That in case the offender is a 
18 
corporation, partnership, or association, the officer or director thereof who directly caused or 
19 
ordered such shall be liable. In case the offender is a public officer or employee, he shall, in 
20 
addition to the above penalties, be deemed automatically dismissed from office and 
21 
permanently disqualified from holding any elective or appointive position in the government 
22 
service. 
23 
24 
25 
SECTION 96. Unlawful Occupation or Destruction of Forestlands. Any person who, without 
26 
authority from the Secretary, enters and occupies or possesses, or engages in kaingin-
27 
making for his own private use or for others, any forestland or grazing land, or in any 
28 
manner destroys such forestland or part thereof, or causes any damage to the timber 
29 
stands and other forest product found therein, or assists, aids or abets another person to do 
30 
so, or sets a fire, or negligently permits a fire to be set therein, or refuses lawful orders to 
31 
vacate the area when ordered to do so shall, upon conviction, be punished with penalties in 
32 
the amount of not less than One Hundred Thousand Pesos (P100,000.00) nor more than 
33 
Five Hundred Thousand Pesos (P500,000.00) and imprisonment of not less than six (6) 
34 
years nor more than twelve (12) years for each offense: Provided, That in the case of an 
35 
offender found guilty of kaingin-making, the penalty shall be imprisonment of not less than 
36 
ten (10) years nor more than twelve (12) years and a fine equivalent to eight times the 
37 
regular forest charges due on the forest products destroyed without prejudice to payment of 
38 
the full cost of rehabilitation of the occupied areas as determined by the Department: 
39 
Provided, further, That the maximum of the penalty prescribed herein shall be imposed 
40 
upon the offender who repeats the same offense, and double the maximum penalty upon 
41 
the offender who commits the same offense for the third time or more. In all cases, the court 
42 
shall further order the eviction of the offender from the area occupied and the forfeiture to 
43 
the government of all improvements made therein, including all vehicles, domestic animals 
44 
and equipment of any kind used in the commission of the offense. If not suitable for use by 
45 
the Department, said improvements, vehicles, domestic animals and equipment shall be 
46 
sold at public auction, the proceeds from which shall accrue to the FCDF. If the offender is 
47 
an alien, he shall be deported after serving his sentence and payment of fines, without any 
48 
further proceedings. An offender who is a government officer or employee, shall, in addition 
49 
to the above penalties, be deemed automatically dismissed from office and permanently 
50 
disqualified from holding any elective or appointive position in the government service. 
51 
52 
53 
SECTION 97. Illegal Conversion of City or Municipal Parks, Communal Forests, and Tree 
54 
Parks in Subdivisions. Any person found to have converted or caused the conversion of a 
55 
city or municipal park or communal forest, or tree parks within subdivisions established 
56 
pursuant to Sec. 75 herein and Section 2 of Presidential Decree No. 953, requiring the 
57 
planting of trees in certain places, into other uses including the construction of permanent 
58 
buildings therein, or in any manner destroys or causes any damage to the timber stands 
59 
and other forest product found therein, or assists, aids or abets another person to do so, or 


1 
sets a fire, or negligently permits a fire to be set therein, upon conviction, shall be penalized 
2 
by imprisonment of six (6) years and one (1) day to twelve (12) years or a fine of not less 
3 
than One Hundred Thousand Pesos (P100,000.00) nor more than Five Hundred Thousand 
4 
Pesos (P500,000.00), or both fine and imprisonment at the discretion of the Court. The 
5 
offender shall likewise be imposed a fine equivalent to eight times the commercial value of 
6 
the forest products destroyed without prejudice to payment of the full cost of rehabilitation of 
7 
the areas as determined by the Department: Provided, further, That the maximum of the 
8 
penalty prescribed herein shall be imposed upon the offender who repeats the same 
9 
offense, and double the maximum penalty upon the offender who commits the same 
10 
offense for the third time or more. The court shall further order the forfeiture to the 
11 
government of all improvements made therein, including all vehicles, domestic animals, and 
12 
equipment of any kind used in the commission of the offense. If not suitable for use by the 
13 
Department, said improvements, vehicles, domestic animals and eqUipment shall be sold at 
14 
public auction, the proceeds from which shall accrue to the FCDF. An offender who is a 
15 
government officer or employee, in addition to the above penalties, shall be deemed 
16 
automatically dismissed from office and permanently disqualified from holding any elective 
17 
or appointive position in the government service. 
18 
19 
20 
SECTION 98. Misdec/aration or Falsification of Reports on Forest Resource Inventory, 
21 
Scaling, and Survey by a Government Official or Employee. Any public officer or employee 
22 
who knowingly misdeclares or falsifies reports pertaining to forest resource inventory, 
23 
scaling, survey, and other similar activities which are contrary to the criteria and standards 
24 
established in the rules and regulations promulgated by the Secretary thereof, after an 
25 
appropriate administrative proceeding, shall be dismissed from the service with prejudice to 
26 
re-employment. Upon conViction by a court of competent jurisdiction, the same public officer 
27 
or employee shall further suffer an imprisonment of not less than eight (8) years nor more 
28 
than twelve (12) years and a fine of not less than One Hundred Thousand Pesos 
29 
(P100,000.00) nor more than Five Hundred Thousand Pesos (P500,000.00) and the 
30 
termination of license to practice forestry if the offender is a professional or registered 
31 
forester: Provided, That the inventory, survey, scale, classification, and similar reports 
32 
referred herein shall be rendered null and void. 
33 
34 
35 
SECTION 99. Unlawful Operation of Sawmills. Any person operating a sawmill or mini-
36 
sawmill without authority from the Secretary shall be punished by a fine of not less than Two 
37 
Hundred Fifty Thousand Pesos (P250, 000.00) and confiscation of the sawmill or mini-
38 
sawmill and complementary equipment in favor of the government for appropriate 
39 
disposition. 
40 
41 
42 
SECTION 100. Unlawful Operation of Wood Processing Plants and Downstream 
43 
44 
45 
Industries. Any person operating a wood processing plant or downstream forest-based 
46 
industry without authority from the Secretary, shall be punished by, upon conviction by a 
47 
court of competent jurisdiction, imprisonment of not less than eight (8) years nor more than 
48 
twelve (12) years and a fine of not less than Five Hundred Thousand Pesos (P500,000.00) 
49 
and confiscation of the wood processing plant and complementary equipment in favor of the 
50 
government. The Department shall promulgate the necessary guidelines, subject to the 
51 
provisions of this Act that will define the terms and conditions for the operation of a wood 
52 
processing plant and/or other downstream forest-based industries. 
53 
54 
55 
56 
57 
58 
SECTION 101. Prohibition on the Issuance of Tax Declaration on Forestlands. - Any public 
officer or employee who issues a tax declaration for any purpose on any part of forestlands, 
upon conviction, shall be penalized with imprisonment for a period of not less than four (4) 
years nor more than eight (8) years and perpetual disqualification from holding an elective 


1 
or appointive office. The tax declaration shall be considered null and void. Tax declarations 
2 
within protection forestlands shall be reviewed and be cancelled after due process. 
3 
4 
5 
SECTION 102. Unlawful Possession of Implements and Devices Used by Forest Officers. 
6 
Any person found possessing or using implements and devices used by forest officers shall 
7 
be penalized with imprisonment of not less than eight (8) years nor more than twelve (12) 
8 
years and a fine of not less than One Hundred Thousand Pesos (P100,OOO.OO) nor more 
9 
than Five Hundred Thousand Pesos (P500,000.00) in addition to the confiscation of such 
10 
implements and devices and the automatic cancellation of any license agreement, license, 
11 
lease or permit. 
12 
13 
Any forest officer who willingly allowed unauthorized person(s) to use these implements and 
14 
devices under his care shall be penalized with imprisonment of not less six (6) years and 
15 
one (1) day to no more than twelve (12) years and a fine of not less than One Hundred 
16 
Thousand Pesos (P100,000.00) nor more than Five Hundred Thousand Pesos 
17 
(P500,000.00). 
18 
In addition, the said forest officer shall be dismissed from the service with prejudice to 
19 
reinstatement and with perpetual disqualification from holding an elective or appointive 
20 
position. 
21 
22 
SECTION 103. Unauthorized Introduction of Logging Tools and Equipment Inside 
23 
Forestlands. It shall be unlawful for any person or entity to possess, bring, or introduce any 
24 
logging tools or equipment inside forestlands without prior authority, from the Secretary or 
25 
his duly authorized representative. Any person found guilty of illegal possession of said 
26 
logging tools or equipment shall be liable to imprisonment of six (6) years and one (1) day to 
27 
twelve (12) years or a fine of not less than One Hundred Thousand Pesos (P100,000.00) 
28 
nor more than Five Hundred Thousand Pesos (P500,OOO.00) or both imprisonment and fine, 
29 
and confiscation of said logging tools and equipment in favor of the government. 
30 
31 
32 
SECTION 104. Non-Payment and Non-Remittance of Forest Charges. Any person who fails 
33 
to pay the amount due and payable as forest charges to the government shall not be 
34 
allowed to transport, convey, sell, nor use the timber or forest product. Moreover, failure to 
35 
pay within thirty (30) days upon assessment of forest charges shall be a ground for 
36 
37 
38 
confiscation of the said timber or forest product in favor of the government. Any person who 
39 
fails or refuses to remit to the proper authorities said forest charges collectible pursuant to 
40 
the provisions of this Act or the National Internal Revenue Code, as amended, or who 
41 
delays, obstructs or prevents the same, or who orders, causes or effects the transfer or 
42 
diversion of the funds for purposes other than those specified in said Acts shall, upon 
43 
conviction, be imprisoned for not less than six (6) years nor more than ten (10) years and 
44 
fined from One Hundred Thousand Pesos (P100,OOO.OO) nor more than Five Hundred 
45 
Thousand Pesos (P500,000.00). If the offender is a corporation, partnership, or association, 
46 
the officers and directors thereof shall be liable. 
47 
48 
49 
SECTION 105. Institution of Criminal Action by Forest Officers. Any forest officer shall 
50 
arrest any person who has committed or is about to commit, or is committing in his 
51 
presence any of the offenses defined in this chapter. The tools, animals, equipment and 
52 
conveyances used in committing the offense, and the forest products cut, gathered, taken 
53 
or possessed by the offender in the process of committing the offense shall also be seized 
54 
and confiscated in favor of the government. The arresting forest officer shall thereafter 
55 
deliver within thirty-six (36) hours from the time of arrest or seizure both the offender and 
56 
the confiscated forest products, conveyances, tools and equipment, or the documents 
57 
pertaining to the same, and file the proper complaint with the appropriate official designated 
58 
by law to conduct preliminary investigation and file information in court. If the arrest and 
59 
seizure are made in the forest far from authorities designated by law to conduct preliminary 


1 
investigations, the delivery to and filing of the complaint with the latter shall be done within a 
2 
reasonable time sufficient for ordinary travel from the place of arrest to the place of delivery. 
3 
The seized forest products, materials, conveyances, tools and equipment shall be 
4 
immediately disposed of in accordance with the regulations promulgated by the Secretary. 
5 
6 
The Secretary may deputize any agency, barangay official, or any qualified person to 
7 
protect the forest and exercise the powers or authority provided for in the preceding 
8 
paragraph. Reports and complaints regarding the commission of any of the offenses 
9 
defined in this chapter not committed in the presence of any forest officer or any of the 
10 
deputized officers shall immediately be reported to the forest Officer assigned in the area 
11 
where the offense was allegedly committed. Thereupon, the investigating officer shall 
12 
receive the evidence supporting the report or complaint and submit the same to the 
13 
appropriate official authorized by law to conduct a preliminary investigation of criminal cases 
14 
and file the information in court. 
15 
The Secretary of Justice shall designate in every city and province a special prosecutor who 
16 
shall file charges against forest violators to ensure their speedy prosecution. 
17 
18 
SECTION 106. Liability of Custodian of Confiscated Forest Products. Any public officer who 
19 
fails to produce the timber or forest products, including tools, conveyances, equipment, and 
20 
devices in his custody pursuant to a seizure or confiscation made thereon, or who shall 
21 
appropriate, take, misappropriate, or shall permit another person to take such timber forest 
22 
products wholly or partially, shall suffer the penalty provided for in Article 217, on 
23 
Malversation of Public Funds or Property, of the Revised Penal Code. In addition, the said 
24 
public officer shall be dismissed from service with prejudice to reinstatement and with 
25 
perpetual disqualification from holding any elective or appointive office. 
26 
27 
CHAPTER XIV 
28 
ADMINISTRATIVE PROVISIONS 
29 
30 
SECTION 107. Strengthening of the Forest Management Sector. 
Only qualified 
31 
environmental management professionals and practitioners shall be appointed to the 
32 
positions of Director and Assistant Director of the FMB as well as to all other positions 
33 
where the services of professional foresters e.g. CENRO are required in accordance with 
34 
existing laws and the relevant rules and regulations issued by the Civil Service Commission 
35 
(CSC) and the Professional Regulations Commission (PRC). 
36 
37 
38 
SECTION 108. Administrative Authority of the Secretary or his Duly Authorized 
39 
Representative to Order Confiscation. In all cases of violations of this Act or other forest 
40 
laws, rules, and regulations, the Secretary or his duly authorized representative may order 
41 
the confiscation of forest products illegally harvested, cut, gathered, removed or possessed 
42 
or abandoned, and all conveyances used either by land, water, or air as well as all 
43 
machinery, equipment, implements, and tools used in the commission of the offense and to 
44 
dispose of the same in accordance with pertinent laws, regulations, or pOlicies on the 
45 
mailer. 
46 
47 
The Secretary may order that the sale of confiscated perishable forest resources at public 
48 
auction even before the termination of the judiCial proceedings, following the applicable 
49 
Rules on Evidence, with the proceeds of such sale kept in trust to await the outcome of the 
50 
judicial proceedings. 
51 
No court of the Philippines shall have jurisdiction to issue any Writ of Replevin, restraining 
52 
order, or preliminary mandatory injunction in any case involving or growing out of any action 
53 
by the Secretary or his duly authorized representative in the exercise of the foregoing 
54 
administrative authority. 
55 
56 
SECTION 109. Cancellation of Permits, Licenses, Agreements. The Secretary motu proprio 
57 
or upon the filing of a petition, may cancel any permit, license or agreement. 
58 
59 


1 
The relevant agencies shall formulate the appropriate rules and regulations for the 
2 
implementation of this Act. 
3 
4 
SECTION 121. Appropriations. The amount necessary to initially implement the provisions 
5 
of this Act shall be charged against the appropriations of the Department of Environment 
6 
and Natural Resources in the current General Appropriations Act. Provided further that a 
7 
share from the VAT on oil and natural gas, emission testing tax, flood control tax, road 
8 
users tax, and the Reforestation, Watershed Management, Health and/or Environment 
9 
Enhancement Fund, pursuant to Section 4 of Republic Act No. 9136, otherwise known as 
10 
the Electric Power Industry Reform Act of 2001 (EPIRA), and its Implementing Rules and 
11 
Regulations (lRR), shall be appropriated to fund provisions in this Act. Thereafter, such 
12 
sums as may be necessary to fully implement the provisions of this Act shall be included in 
13 
the annual General Appropriations Act. For local government units, the funding 
14 
requirements shall be taken from their internal revenue allotment (IRA) and other sources of 
15 
income including the income derived from the shares from the different modes of 
16 
agreement. 
17 
18 
19 
SECTION 
122. 
Separability Clause. 
Should 
any provIsion 
herein 
be 
declared 
20 
unconstitutional or invalid, the same shall not affect the validity or legality of the other 
21 
provisions. 
22 
23 
24 
SECTION 123. Repealing Clause. Subsections (b), (d), (e), (t), (g), and (i) of Section 4 of 
25 
Act No. 3915; Republic Act Nos. 460 and 7161; Presidential Decree Nos. 705, 1153, 
26 
1515,1559,1775 and 1998; Letter of Instruction No. 818; Executive Order Nos. 277, series 
27 
of 1987, and Executive Order No. 725, series of 1981, are hereby repealed, and all laws, 
28 
orders, rules and regulations, or any part thereof which are inconsistent herewith are 
29 
likewise hereby repealed or amended accordingly: Provided, That this Act shall not in any 
30 
manner amend the IPRA, NIPAS law and the Wildlife Resources Act. 
31 
32 
33 
SECTION 124. Effectivity. This Act shall take effect thirty (30) days from the date of its 
34 
publication in the Official Gazette or in at least two (2) national newspapers of general 
35 
circulation. 
36 
37 
38 
Approved,