Senate Bitl. No. 372 
I '  
EXPLANATORY NOTE 
The Philippine archipelago faces a bteak future due to the rapid depletion 
of its forest cover, with the degradation of our forests, we Lose the natural 
protection that the environment has provided our 7,100 islands from the ravages 
of typhoons, floods, siltation of rivers, and erosion of lands. 
Forests are a major component of the fragile ecosystems of the 
Philippines. They are the habitat of valuable specks of ptants md anlrmais. They 
recycle carbon dioxide and other greenhouse gases. They are the lungs of the 
Earth that nurture mankind and &her living oqanism on the planet. 
The impact of the rapid devastation of our forests translates into lost 
human, animal and plant life, fresh water supply and displacement of f m s t  
communities. The destruction of other ecosystems that will inevitably ensue from 
the unsustainable utilization of this most valuable naturat resources justify the 
intent of the bill to encourage natural regeneration as well as other means of 
increasing forest cover. 
This proposed piece of legislation seeks the protection and conservation 
of our forests. Among other measures, it imposes a thirty-year ban on 
commercial logging and prohibits the issuance of new timber licensing 
agreements (TLAs), licenses of permits, providing for the automatic termination 
of existing ones, except for industrial forest plantations (IFP's) outside old growth 
and residual forests. It tasks the DENR with the demarcation of the final forest 
limits in accordance with the requirement of the 1986 Constitution. 
The bill also establishes a sustainable Forest Protection Fund, which will 
be sourced from fines, penalties, and forest charges and other income from the 
use of forest products. The DENR will manage the fund. 
The urgent need for the enactment of this measure cannot be over- 
emphasized. We cannot wait for irreversible damage to the environment to 
happen before acting decisively in favor of our own and future generations. 
For these reasons, the passage of this bill is earnestly sought. 
Senator 


FOURTEENTH CONGRESS OF THE REPUBLIC 
) 
7 JUL -2 ii:: 25 
OF THE PHILIPPINES 
1 
First Regular Session 
) 
~~~~~1~~~ 
S E N A T E  
Senate Bill No. 3 7 2 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
PROVIDING FOR THE SUSTAINABLE MANAGEMENT OF FOREST 
RESOURCES AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION I .  Title. This Act shall be known as the "Sustainable 
Management of Forest Resource Act of 2007". 
SECTION 2. Declaration of fo/icy. in conformity with the provision of the 
Constitution to promote the general welfare and social justice in all phases of 
national development to protect and advance the right of the Filipino people to a 
balanced and healthy ecosystem in accordance with the rhythm and harmony of 
nature, and to conserve and develop the patrimony of the nation, the State 
hereby adopts the following policies relative to the management of forests and 
their resources on a sustainable basis: 
(a) 
Sustainable and integrated management and development 
of forest resources. The management and development of 
forest resources in an integrated and sustainable basis, 
focusing on the resources and the people who manage and 
benefit form it, shall be guiding principle in the management, 
protection, conservation and development of forest resources. 
Watershed as the basic forestland management unit. 
Forestland management plans shall be developed and 
implemented utilizing the watershed as a basic management 
unit. The forestlands shall be managed under the concepts of 
sustainable and multiple-use, including the conservation of bio- 
diversity. 
Community-based forest management (CBFM) as the 
principal strategy. This involves the vesting of access rights 
and responsibilities to local communities and indigenous 
People's-(lPs) to promote the management and development of 
forestland resources on a sustainable basis. It shall have 
precedence over the other strategies. 
Multi-sectoral participation, The participation of all sectors of 
society 
in 
sustainable 
forestland 
management 
and 
development shall be promoted. Equitable sharing of the 
benefits derived from the forestlands shall be ensured. 


Reforestation and agroforestty as priority measures. 
Reforestation, agroforestry and other appropriate measures 
including assisted natural regeneration (ANR) shall be given 
emphasis in order to rehabilitate and restore productivity of 
denuded and degraded lands as well as increase income of the 
marginalized sectors of a society. 
Protection and rehabilifation of forestland as priority. 
Protection and rehabilitation of forestlands including all 
protected areas shall be given priority to ensure environmental 
stability, enhance biological diversity and provide economic 
benefits. 
(9) 
Permanency of forestland limits. The specific limits of 
forestland after these have been fixed and demarcated shall 
not be altered except through an Act of Congress. 
Forest resources to promote the common good. The use of 
forest resources shall bear a social function, responsibility and 
accountability to promote the common good. 
Professionalism in forest service. A dynamic professional 
and people-oriented forest service shall be established and fully 
supported. 
Security of tenure. In pursuance of the principle of multi-use 
forest management, a secured tenure shall be guaranteed by 
the State. 
(h) 
(0 
0) 
SECTION 3. Definition of Terms. As used in this Act, the following terms 
shall have the corresponding meanings: 
(a) 
Agroforestry - Shall refer to a sustainable management of 
lands which increases their overall productivity by property 
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 and soil, as well as with the cultural 
patterns or customary laws of the local population; 
Alienable and Disposable Lands - shall refer to those lands 
of the public domain which have been delimited, classified and 
declared as such and available for disposition under 
Commonwealth Act No. 141, as amended otherwise known as 
the Public Land Act; 
Ancestral Domain - shall refer to all lands and natural 
resources occupied or possessed by indigenous cultural 
communities, by themselves or through their ancestors, 
communally or individually, in accordance with their customs 
and traditions since time immemorial, continuously to the 
present except when interrupted by war, force majeure, or 
displaced by force, deceit or stealth; 
Annual Allowable Harvest - shall refer to the amount or 
volume of materials, whether of timber, non-timber or other 
forest products, authorized by the government to be harvested 
within each year from the forests; 
Assisted Natural Regeneration (ANR) - shall refer to a 
systematic and sustained prevention of fire, care and tending 
of naturally-growing seedlings, and other related activities 
implemented to expedite the restoration of forest cove, 
including trees, brush and associated vegetation through the 
natural process of biological succession; 


(9 
Biological Diversity - shall refer to the variability among living 
organisms including, inter-alia, terrestrial, marine and other 
aquatic ecosystem and ecological complexes of which they are 
part; this included diversity within species between species 
and ecosystems; 
Brushlands - shall refer to areas characterized by 
discontinuous cover pf shrubby and non-woody vegetation 
including grasses usually as a result of repeated clearing and 
burning of the original forest cover; 
Buffer Zones - shall refer to areas outside the boundaries of, 
and immediately adjacent to, protected areas designed as 
such pursuant to Section 8 of the NIPAS Act that need special 
development control in order to avoid or minimize harm to the 
protected area; 
Commercial Logging - shall refer to cutting or feeling of trees 
in all types of forests for the purpose of disposing of the cut or 
felled logs for monetary profits beyond survival and livelihood 
means; 
Communal Forest - shall refer to a tract of forestland set 
aside and established for a city, municipality or barangay for 
protection, watershed management, eco-tourism and related 
environmental purposes, or for implementation of socio- 
economic development pursuant to and consistent with the 
CBFM strategy as described herein; 
Community-Based Forest Management Strategy - shall 
refer to al organized efforts of government to work with 
communities in areas adjacent to public forest lands with the 
intent to empower them, and entrust to them the protection, 
rehabilitation, management, conservation, and utilization of the 
forest lands and resources therein; 
Conveyance - shall refer to any vehicle, vessel, device or 
animal used in transporting forest products; 
Co-Production Agreement - shall refer to an agreement 
entered into by and between a qualified personls and the 
government for the former develop, utilize and manage 
consistent with the principle of sustainable development, a 
specified portion of the forestlands wherein both parties agree 
to provide inputs and share the products of their equivalent 
cash value; 
Critical Watershed - shall refer to that portion of a watershed 
reservation which has been classified as strict protection zone 
and closed t all human activity except for scientific studies, or 
for traditional , ceremonial, or religious use by indigenous 
peoples; 
Department - shall refer to the Department of Environment 
and Natural Resources; 
Environment Impact Assessment (EIA) - shall refer to the 
process of predicting the likely environmental consequences of 
implementing projects of undertakings, and designing the 
appropriate preventive, mitigating or enhancing measures; 
Environmental Compliance Certification (ECC) - shall refer 
to the document issued by the Department certifying that a 
proposed project or undertaking will not cause a significant 
negative environmental impact; that the proponent has 
complied with all the requirement of the Environmental Impact 
assessment (EIA) System, and that the proponent is 
committed 
to 
implement 
its 
approved 
Environment 
(1) 
(m) 


Management Plan in the EIS or mitigation measures in the 
Initial Environment Examination (IEE); 
Environmental Impact Statement (EIS) System - shall refer 
to the entire process of organization, administration, and 
procedure institutionalized for purposes institutionalized for 
purposes of assessing the significance of the effects of any 
project or undertaking on the quality of the physical, biological 
and socio-economic environment, and designing appropriate 
mitigating and enhancement measures; 
Flitch - shall refer to a large piece of sawn, log, or as that term 
is commonly applied, to a part of a log a greater thickness than 
plank or board; 
Forest - shall refer to either natural vegetation or a plantation 
of forest crops, such as trees, or both, occupying a definable, 
uninterrupted or contiguous area exceeding but not less than 
one hectare (Iha) in size with tree crown covering at least ten 
percent (10%) of the area, exclusive of the associated 
seedlings, saplings, palms, bamboos and other undercover 
vegetation. A natural forest is a stand dominated by tress 
whose structure, functions and dynamics have been largely the 
result of a natural succession process. It includes such stand 
types as dipterocarp, pine, mossy, molave, beach and 
mangrove. For the purpose of this Act, natural forests may be 
classified according to 1) primary use and management 
objective 2) growth formation in terms or primary use and 
management, a forest which has never been subjected to 
significant human disturbance, or has not been significantly 
affected by hunting and gathering of forest products, such that 
its natural structure, functions and dynamics have not 
undergone any major change; or 3) manage forest as herein 
defined; 
Forest charges - shall refer to levies imposed and collected 
by the government on timber and other forest products; 
Forest Communities - shall refer to a group of people 
residing inside or immediately adjacent to a particular 
forestland who are largely or party dependent on the forest 
resources found therein for their substance; 
Forestlands - shall refer tot lands of the public domain which 
have been classified as such pursuant to this Act and all 
unclassified lands of the public domain; 
Forest Officer - shall refer to any public officer who by nature 
of hislher appointment or the functions of the position to which 
he/she is appointed, is delegated by law and regulations or 
commissioned by competent authorities to execute, implement 
or enforce the provisions of this Act and other related laws and 
regulations; 
Forest Plantation - shall refer to a tract of land extensively 
planted to forest, tress, rattan, bamboo and other forest 
species; 
Forest Resources - 
shall refer to all natural resources, 
whether biomass such as soil and water, as well as the 
intangible service and values present in forestlands or in other 
lands devoted for forest purposes; 
Grazing Land - shall refer to a part of the forestland designed 
and managed for the raising of livestock; 
Indigenous Cultural Communities (ICC) - shall refer to a 
group of people living in homogenous societies identified by 


(ii) 
Uj) 
self-description and 
ascription by 
others, 
who 
have 
continuously lives as an 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 
Industrial Forest Plantation (IFP) shall refer to any tract of 
land and other public and private lands planted to timber- 
producing species, including rubber and/or non-timber species 
such as rattan and bamboo, primarily to supply the raw 
material requirements or existing or proposed forest-based 
industries, energy-generating plants and related industries; 
Joint Venture Agreement shall refer to an agreement 
whereby a joint-venture company is organized by the 
government and a qualified person, with the principles of 
sustainable development, a portion of a forestland under terms 
and conditions mutually acceptable to both parties; 
Kaingero shall refer to upland farmers who practice slash-and- 
burn or shifting cultivation; 
Management Forest shall refer to a forest under a deliberate 
system of protection rehabilitation and development which may 
include utilization of resources, to ensure the protection of 
desired products and services, and the conservation of soil, 
water, wildlife and other natural resources therein for the 
benefit of present and future generations; 
Multiple-Use shall refer to 
a 
harmonized utilization, 
development and management of forestlands for the 
production of two or more products, goods and/or services in 
conformity with the principle of sustainable development; 
National Park shall refer to a forest reservation essentially of 
natural wilderness character which has been withdrawn from 
settlement, occupation or any form of exploitation except in 
conformity with an approved management plan and set aside 
as such primarily to conserve the area to preserve the scenery, 
the natural and historic objects, wild animals and plants 
therein, and to provide enjoyment of these features in such 
areas; 
Non-Governmental Organization (NGO) shall refer to a non- 
stock, non-profit organization created or established primarily 
or voluntary services; 
Permit shall refer to the privilege granted by the government to 
a person to utilize forest and wildlife resources, or to undertake 
specified forestry activities inside the forestland which may or 
may not include any right of possession and occupation 
therein, or to establish and operate a plant for processing 
timber, non-timber or other forest products; 
Person shall refer to a natural as well as a judicial person; 
Processing Plant and Mill shall refer to a physical structure 
including its complement of machinery and equipment used for 
processing of timber or logs, other forest products inot semi- 
finished forms; 
Production Sharing Agreement shall refer to a contract 
wherein the government grants to a person the privilege to 
manage, develop and utilize forest resources within a specific 
area and period of time, develop and utilize forest resources 
within a specific area and period of time, with the grantee 
providing the financing, technology, management, personnel 


(YY) 
and other input necessary for the implementation of he 
agreement, and both parties sharing the benefits under terms 
and conditions set forth in the agreement; 
Protected Areas shall refer to those areas defined and 
designed as such pursuant to Republic Act No. 7586 or the 
NIPAS act; 
Reforestation shall refer to all land use activities directed 
towards 
the 
restoration, establishment and 
sustained 
management of diversified vegetation on denuded, degraded 
andlor marginal lands, including but not limited to the planning 
and tending of timber, orchard and multi-use trees, perennial 
leguminous vine (i.e. cover crops), grass shrubs, vegetative 
hedgerows grown on contours, the establishment of check 
dams and other measures which contribute to soil and water 
conservation; 
Rotation shall refer to an area of forestland that has been 
reserved by law for a specific purpose; 
Secretary shall refer to the Secretary of the Department of 
Environment and Natural Resources; 
Semi-Finished Wood Products shall refer to end products 
requiring final stages of manufacture and/or assembly such as, 
but nit limited to window component, table tops, veneer and 
other similar products; 
Sustainable Development shall refer to meeting the need of 
the present generation without comprising the ability of the 
future generations to meet their own needs; 
Sustainable Forest Management and Development shall 
refer to the process of managing, developing, and utilizing 
forestland resources to achieve the production of desired 
products of services without impairing the inherent productivity 
of the forest thereby ensuring a continuous flow of these 
products or services; 
Tenure shall refer to guaranteed peaceful in it by an 
agreement, contract, or grant which cannot be altered or 
abrogated with due process; 
Timber License Agreement (TLA) shall refer to a privilege 
granted by the State to a person to utilize forest resources 
within a forestland with the rights of possession and 
occupation thereof, to the exclusion of others, except the 
government, but with the corresponding obligation to develop, 
protect and rehabilitate the same in accordance with the terms 
and conditions set forth in the said agreement; 
Trade shall refer to the act of engaging in the exchange, 
purchase or sale of forest products locally or internationally; 
Water shed shall refer to a land area drained by a stream or a 
fixed body of water and its tributaries having a common outlet 
for surface runoff; 
Watershed Reservation shall refer to a forestland defined in 
this Act and those that have been proclaimed by law as such, 
primarily for water production purposes. Other compatible uses 
may be allowed by the Secretary under the sustainable and 
multi-use management concept; 
Wildlife shall refer to wild forms and varieties of flora and 
fauna; and 
Wood-based industries shall refer to various industries that 
are dependent on wood as the principal raw material including, 
but not limited to, the saw milling industry, pulp and paper 


industry, plywood and veneer manufacturing industry, as well 
as the secondary and tertiary wood processing industries such 
mouldings and furniture manufacturing among others. 
CHAPTER II 
LIMITS AND CLASSIFICATION OF FORESTLANDS 
SEC 4. Limit of permanent forestlands The permanent forest lands shall 
be those of the public domain classified and delimited pursuant to this Act. 
All lands of the public domain classified as forestlands by the Department 
as of December 1994, under its Land Classified Program, are hereby declared as 
permanent forestlands 
Within twenty-four (24) months from the effectivity of this Act, the 
Department shall submit to the Congress maps of appropriated and uniform 
scale indicating, by province, the specific limits of land already classified as 
permanent forestlands pursuant to the immediately preceding paragraph. 
The Department shall complete the classification of the remaining 
unclassified lands of the public domain within three (3) years from the effectivity 
of this Act. All such lands which shall be classified as forestlands shall also be 
declared as permanent forestlands upon submission by the Department of 
Congress, of the maps of said forestlands Provided that, no lands of the public 
domain eighteen percent (18%) or over in slope shall be classifies as alienable 
and disposable lands, Provided furfher, however, that these forestlands with well- 
established communities duly recognized in writing under the Local Government 
Code and R.A. 8371 shall be allowed to continue occupying and using the 
specific areas they presently occupy and use, subject to such rule and 
regulations the Department may provide to endure sustainable land use 
management, and tenure security, and: Provided finally, that all Department 
records pertaining to the specific limits of forestlands shall be made available to 
the public upon request. The Department shall, furnish all provincial, municipal, 
and city government units copies of the maps of permanent forestlands located 
within their respective territorial jurisdiction. 
SEC 5. Additional Areas to be included as Permanent Forest Lands. The 
following lands, although below eighteen percent (18%) in slope, are needed for 
environmental protection and forestry purposes and shall not therefore be 
classified as alienable or disposable lands, not be subject to logging, mining, 
quarrying, and such other form of occupancy, land use or resource extraction 
activities: 
(a) Areas less than two hundred fifty hectares (250 ha) which are far form, 
(b) Isolated patches of forest of al least five hectares (5 ha) with rocky 
(c) Areas of not less than ten hectares (10 ha) covered with natural forest: 
(d)All mangroves and swamplands which are not yet classified as 
(e) Ridge tops and plateaus regardless of size found within or surrounded 
(9 Appro priately located road rights-of way; 
or not contiguous with, an certified alienable or disposable land; 
terrain of which protect a spring for communal use; 
alternate and disposable lands; 
wholly or partially by forestlands where headwaters emanate; 


(9) Twenty-meter (20m) strips of land along the edge of the normal high 
waterline of rivers and streams with channels of at least five meters 
(5m) wide, which are not yet classified as alienable and disposable; 
(h) Strips of mangrove or swamplands at least twenty meters (20m) wide 
along the shoreline facing oceans, lakes, and other bodies of water, 
and strips of lands at least twenty meters (20m) wide facing lakes, 
which are not yet classified as alienable and disposable; 
(i) Areas needed for other purposes of public interest such as national 
parks, national historical sites, games refuge, wildlife sanctuaries, 
forest station sites, research experimental purposes and others; 
(j) Areas previously proclaimed by law as forest reserves, national park, 
game refuge, bird sanctuaries, national shrines, national historical 
shrines, and national historic sites; 
(k) Areas within watershed reservations; 
(I) Areas considered environmentally critical because of their vulnerability 
to damage form typhoons, landslides, volcanic eruptions, and natural 
causes. 
Owners who have acquired vested rights over lands enumerated above 
are required to implement soil and water conservation measure in coordination 
with the Department and the appropriate local government unit. An 
Environmental 
Compliance 
Certificate 
(ECC) 
shall 
be 
required for 
environmentally critical projects in accordance with existing law, Provided that, 
the Department and/or the local government unit shall immediately take the 
necessary steps to expropriate the property concerned or cancel or amend any 
titles issued thereon under any of the following conditions: 
Failure of the owner, after due notice, to implement appropriate soil 
Failure of the owner to comply with ECC requirements; 
The issuance of titles or other tenurial instruments such areas was 
When public interest so requires. 
(a) 
(b) 
(c) 
(d) 
SEC. 6. Non-Diminution of the Specific Limits of Forestlands. The specific 
limits of the permanent forestlands as determined in accordance with Sections 4 
and 5 of this Act shall not be altered except by an Act of Congress. 
and water conservation; 
accomplished through fraud. Misrepresentation or other anomalies; and 
SEC. 7. Delineation of Boundaries of Forestlands, The Department shall 
within three (3) years upon the effectivity of this Act, delineate on the ground the 
boundaries between the permanent forestlands and alienable or disposable 
lands with concrete monuments, roads or infrastructure, or any other visible 
permanent and practical signs. 
The Department shall allocate funds for appropriation in the Annual 
general appropriations Act for the purpose of land classification and boundary 
delineation of forestlands. 
SEC. 8. Sub-classification of the Forestlands. The Department shall have 
the authority to sub-classify the permanent forestlands into the following 
categories according to primary use: 
"Protection Forest" shall refer to all areas within the forestlands 
designed or set aside as protected areas pursuant to the 
NlPAS Act shall constitute the protection forest. All mossy and 
old growth forests shall also be classified as protection forest. 
(a) 


The establishment and management of protection forests shall 
be in accordance with the said NIPAS Act. 
"Protection Forest" shall refer to all permanent forestland not 
classified as protection forest pursuant to the immediate 
preceding paragraph (a) shall be classified as either production 
forests devoted to production of forest products, other crops 
and services, or as multiple-use forests consistent with the 
definition set forth in Chapter 1, Section 3, paragraph (ff) 
hereof. The management of production forests shall be in 
accordance with management plan based on sustainable 
management principles and approved by the Department. 
In the implementation of sub-classification, the Department shall consult 
with concerned communities, local government units and other 
stakeholders. Documentary evidence of consultation initiatives, such as 
community assemblies, public hearings and the like shall be included in 
the official records covering each sub-classification exercise. 
CHAPTER 111 
ADMINISTRATION AND MANAGEMENT OF FOREST LANDS 
SEC. 9. Jurisdiction and Control of Forestlands. The Department shall be 
the primary agency responsible for the conservation, management and utilization 
of all forestlands and the unclassified lands of the public domain. The department 
in coordination with Local Government Unit and other government agencies 
pursuant to Section I O  and I1 hereof, shall ensure that forestlands and 
unclassified lands of the public domain are managed, conserved, developed, 
utilized and protected consistent with the policies promulgated in this Act. The 
utilization and development of forestlands and unclassified lands of the public 
domain including the natural resources therein shall be undertaken in 
accordance with a Department-approved sustainable watershed management 
plan. 
SEC I O .  Participation of Local Government Units in Forest Management. 
Pursuant to the pertinent provisions of Republic Act No. 71 60 otherwise known 
as the Local Government Code, the Local Government Units (LGU) shall 
faithfully share responsibility in the sustainable management and utilization of 
forest resources within their territorial jurisdiction including in Section 11, hereof. 
The LGU and the Department, in consultation with other government agencies, 
local communities, non-government organizations and other sectors, shall jointly 
undertake the preparation and implementation of forestland use and watershed 
management plans which shall be made an integral component of the LGU's 
comprehensive land use development plan. The LGU shall be consulted on any 
and all forestry projects to be implemented in their territorial jurisdiction and shall 
equitable share of revenues derived form the forest. For this purpose, the 
Department, the Department of Interior and Local Government (DILG), the 
leagues of provinces, cities, municipalities and barangays shall, within one (1) 
year from the passage of this Act. Non-participation, refusal or inaction of LGUs 
to faithfully share the responsibilities as herein provided shall constitute an 
express waiver to participate in forest management and the equitable share of 
incomes derived therefrom. 
SEC. 11. Forestlands Under other Government, Agencies. Forestlands 
and/or portion of such, which have been assigned by law under the 
administration and management of other government agencies for specific 


purposes, including those devolved to LGUs prior to the passage of this Act, shall 
remain under the administration and management of these government 
agencies. These agencies shall be responsible for their protection, rehabilitation 
and conservation. These forestlands shall be administered in accordance with a 
forest management plan, which shall be prepared within one year from the 
effectivity of this Act, in coordination with the Department, LGU, local 
communities and organization. Provided, fhaf the Department and the concerned 
LGU and the concerned government agency shall periodically review and 
monitor the implementation of the said management plan. Provided further, that 
the harvesting of forest products particularly timber, and building of roads and 
other infrastructure shall require prior authorization of the Secretary of the 
Department. The Secretary or his duly-authorized representatives shall have 
visitorial and supervisory powers over forestlands placed under the 
administration and management of other government agencies. Provided finally, 
that these forestlands, or portions thereof, shall be reverted to the jurisdiction and 
control of the Department when they are no longer needed for the purpose for 
which they have constituted, or in the event of failure of the agency concerned to 
rehabilitate, protect and conserve the forestland resources in accordance with 
the approved management plan. The Department shall determine the use of the 
reverted forestlands. 
SEC. 12. Forest Resources within Alienable and Disposable Lands. The 
Department shall encourage and provide incentives to land owners of alienable 
and disposable lands to keep the natural forest on their lands under sustainable 
management or develop and maintain a tree plantation on such lands. 
Landowners may register their forest with the Department and shall be assisted 
in the preparation of a management plan, and given other technical assistance. 
The utilization of trees and other forest resources shall be allowed in accordance 
with the management plan. 
CHAPTER IV 
SUSTAINABLE MANAGEMENT OF FOREST RESOURCES 
SEC. 13. Sustainable Forest Managemenf Planning. The Department, in 
consultation and coordination and coordination with local government units and 
other concerned sectors such as but not limited to other government agencies, 
local communities, non-government organizations, individual and corporate 
private investors and other sectors, shall adopt and implement a sustainable 
forest management plan for each well-defined watershed or other appropriate 
forest management unit. Within one (1) year from the effectivity of this Act, the 
Department shall prepare a Sustainable Forest Management Strategy (SFMS) 
that will guide the preparation of site-specific forest management plans based on 
criteria, indicators and standards (minimum requirements) for sustainable forest 
management. The SFMS shall, at the minimum, address the following: 
(a) 
Promotion of rational of forestland used and land use practices 
that increase productivity, an conserve soil and water and 
other forestland resources; 
Protection of existing forest resources resources and 
conservation of bio-diversity; 
Rehabilitation of denuded areas to expand the forest resource 
base, thereby promoting agricultural development and other 
food production activities; 
(b) 
(c) 


(9 
Enhancement of the socio-economic well-being of local 
communities including indigenous peoples who are largely 
dependent of the forest for their livelihood; 
Observance of stakeholder participation through consultation 
between and among the Department, local government units, 
other national agencies, and civil society in the sustainable 
management of forestlands; 
Adoption of Community-based forest management as the 
principal strategy in the management of forest land and 
resources, an the formulation of incentives designed to 
promote sustainable forest management pursuant to this 
strategy; 
Formulation of incentives designed to promote development 
and sustainable profitability of the forest industry sector by 
private sector investors operating either independently or in 
collaboration with forest-based communities; 
Integration of forest management plans with the local land use 
and development plan; and 
Adoption of an effective system for monitoring forest 
management and status including optimum use of advanced 
technology such as, but not limited to, satellite imaginary 
analysis. 
(h) 
0) 
SEC. 14. Environment and Impact Assessment. All new projects to be 
implemented in forestlands including harvesting, grazing and other special uses, 
mineral prospering and exploration, road, infrastructure, and building construction 
shall be subject to the Environmental Impact Assessment System. 
SEC. 15, State of the Environment Report. The Department shall conduct 
research to the extent and the state of natural forests, including forests 
occupants in each region and province, furnishing annually both Houses of 
Congress a copy of the State of the Environment Report. 
CHAPTER IV 
COMMUNITY-BASED FOREST MANAGEMENT 
SEC. 15. Community-Based Forest Management Strategy (CBFMS). 
Forest communities, indigenous people and other communities, indigenous 
peoples and other communities whose lives, culture and general well-being are 
intimately likes with the forests, shall be entrusted with the responsibility and the 
privilege to protect, manage, develop and utilize forest resources under the 
principle of stewardship. Pursuant to this policy, the State herein adopts 
Community-Based Forest Management Strategy (CBFMS) as a principal strategy 
to achieve sustainable forestland management, social justice and economic 
development particularly in the rural areas. The Department shall formulate 
policies and guidelines that simplify and facilitate access to and sustainable 
management of forestland resources by local communities. The Department shall 
furthermore develop policies, guidelines and incentives for private sector 
investors to enter into mutually beneficial relationships with communities in the 
pursuit of sustainable forest management. 
SEC. 16. Community Resources Management in CBFM Areas. The 
management of forestland resources in CBFM areas shall be embodied in a 
Community resource Management Plan which contains the community vision 
aspirations and strategies in the management of forestland resources. The 


Department, local government units, other government agencies, non- 
government Organizations, private companies and individuals and other sectors 
shall provide these communities with appropriate long-term security of tenure; 
technical, managerial and financial assistance, training and other assistance to 
empower them to manage and benefit form the forestland resources on a 
sustainable basis. 
SEC. 17. Qualified Participants. Only organized communities as defined in 
this Act shall be available to participate in the CBFM strategy. The indigenous 
people shall be encounters to actively participate in the implementation of CBFM 
activities in recognition of their rights to their ancestral domains and lands. All 
organizations eligible to participate in the CBFM shall have the following 
qualification: 
(a) Actually tilling portion of the area to be awarded; 
(b) Traditionally utilizing the resource for all or a substantial portion of their 
(c) Actually residing within or adjacent to the areas to be awarded; and 
(d) Tenured migrants as defined in R.A. 7586 
SEC. 17. Qualified participants. Only organized forest communities as 
defined in this Act shall be available to participate in the CBFM strategy. The 
indigenous people shall be encouraged to actively participate in the 
implementation of CBFM activities in recognition of their rights to their ancestral 
domains and lands. All organizations eligible to participate in the CBFM shall 
have the following qualifications: 
livelihood; 
(a) Members shall e Filipino citizens, and 
(b) Members may be 
(1) Actually tiling portions of the area to be awarded; 
(2) Traditionally utilizing the resource for all or a substantial portion 
(3) Actually residing within or adjacent to the areas to be awarded; 
(4) Tenured migrants as defined in R.A. 7586. 
of their livelihood; 
and 
SEC. 18. Community-based Forest Management Special Account. The 
Department shall establish and 
manage a 
Community-Based Forest 
Management Special Account (CBFMSA) to support the implementation of the 
CBFM strategy and provide financial and professional incentives for deserving 
communities and government personnel. The Department may source local and 
international grants and donations for the establishment of the CBFMSA. Other 
sources of funds may later be determined by the Department subject to existing 
government regulations. 
SEC. 19. Creation of Financing Mechanism for CBFM. The Department, in 
coordination with other agencies of government, shall develop measures for 
sustained financing to establish CBFM in all areas of the country. Towards the 
end, the Department shall prioritize the following: Within six (6) months from 
enactment of this Act, the Secretary shall organize a committee composed of 
duly-authorized representatives of the Development Bank of the Philippines 
(DBP), the Land Bank of the Philippines (LBP), the Government Service 
Insurance System (GSIS), the Social security System (SSS), the Bankers 
Association of the Philippines and other government and private financial 
institution is to formulate workable financing mechanism and instruments to fund 
implementation of the CBFM strategy and its sub-strategies. The committee 
shall elect its chairman form among its members and shall, within one year form 


effectivity of this Act, prepare the necessary policies, guidelines, and procedures 
for this purpose. 
(a) In recognition of the favorable impact on water quality and supply that 
can be achieved through sustainable forest management, the 
Department, in collaboration with the 
Department of 
Local 
Government, and all government, semi-government and private 
agencies involved in water management and distribution, shall 
formulate policies, procedures and guidelines for collection of fees for 
water used for domestic, industrial and agricultural processes, and 
allocation of such fees for watershed production. The relevant policies, 
procedures, guidelines (etc) shall be designed to ensure that the 
communities responsible for managing specific areas of forest ;land 
and resources are rewarded for the management and protection 
measures they apply, given the benefits in terms of water supply that 
accrue to society at large as a result of their efforts. 
(b) Within one 91) year form effectivity of this Act, the secretary shall 
submit the results of (a) and (b) above to Congress through the Office 
of the President for enactment of appropriate enabling legislation. 
SEC. 20. Areas Available for CBFM. Subject to prior vested rights, the 
CBFMS shall be implemented on all public forestlands, ancestral domains of 
ICC's and on protected areas subject to the provisions of the NIPAS law. CBFM 
may be allowed by the Secretary in watershed reservation to promote adequate 
protection and rehabilitation provide that land-use practices and activities would 
not induce severe soil erosion and surface run-off. 
SEC. 21. Recognition and Management of Ancestral Domain. The 
recognition and management of ancestral domains shall be governed by the 
provisions of Republic Act 8371, otherwise known as the "Indigenous People's 
(IPS) Rights Act of 1997". The National Commission on Indigenous Peoples 
(NICP) shall coordinate with the Department in providing assistance to the 
indigenous peoples in the sustainable management of forest resources within 
ancestral lands and domains. 
CHAPTER VI 
REFORESTATION PROGRAM 
SEC. 22. Reforestation in Forestlands. Consistent with Section 13 hereof, 
the Department, in coordination with local government with local government 
units (LGUs), other government agencies, NGOs, local residents and 
communities shall identify and prioritize forest hereof and consistent with the land 
use plants of the LGUs. 
(a) 
In each prioritized area, whether at the city, municipal or 
provincial level, the Department, in coordination with the 
concerned LGU shall design an accelerated reforestation 
program designed to accomplish reforestation on at least fifty 
percent (50%) of the prioritized area within five (5) years and 
eighty percent (80%) of the area within ten (IO) years form 
effectivity of this Act. 
To achieve the goals set forth in the immediately preceding 
paragraph (a), the Department shall develop strategies that 
promote and encourage broad-based participation of all sectors, 


particularly forest communities, LGUs, private investors and 
non-government organizations in reforestation. 
In its annual budget submission to the Legislature, the 
Department shall include budgetary allocation in the General 
Appropriations act in Adequate amounts to effectively 
accomplish reforestation of prioritized target areas. 
SEC. 23. Development of Profecfion Forest. In the identification of target 
areas pursuant to Section 22 above, the Department shall prioritize 
establishment of tree cover, other diversified perennial vegetation and 
accompanying soil and water conservation measures on lands that have a direct 
impact on water supply and quality, bio-diversity and environmental protection, 
with special emphasis on lands covered by the NlPAS act. 
(a) Pursuant to the sound principles of ecological succession, and to 
achieve optimum cost-effectiveness, assisted natural regeneration 
(ANR) shall be prioritized in the development of protection forests and 
not less than fifty percent (50%) of the Department's annual 
appropriations for development of protection forests shall be allocated 
for ANR implementation. 
protection shall be included in the development of protection forest, 
including land terracing, establishment of vegetative hedgerows on 
contours, plating of fruit trees, bamboo and the like. 
(b) Measures which harmonize human occupation and environmental 
SEC. 24. Development of Production Forests. Reforestation strategies 
shall emphasize, prioritize and encourage the development of under-utilized 
private land to eventually supply the major portion of timber, bamboo, rattan and 
other forest product needed to satisfy local demand and take optimum advantage 
of export opportunities. 
(a) Towards this end, the Department shall provide free technical 
(b) All trees and other forest products grown on private lands shall be 
assistance to landowners who wish to implement reforestation on their 
private lands. 
considered agricultural crops belonging to the owner who shall have 
the right to sell, contract, convey, process or dispose of the same in 
any manner helshe sees fit. No forest charges, environmental fees or 
similar levies shall be imposed by national government agencies 
andlor local government units on such trees and other forest products 
grown on private land, nor shall any rules or regulations be enacted to 
control the transport of such products except those necessary to 
prevent accidents or damage to roads and other infrastructure. 
Furthermore, the owner shall be entitled to the incentives provided 
under Section 26, subsections (a), (b), (c), (d) and (e) hereof. 
(c) In addition to providing land, the development of production forests on 
government land (Le. forestlands0 shall also be encourage by way of 
long-term lease and other mechanisms formulated by the Department 
and consistent with the provisions of he Constitution and relevant 
legislation. The Department, in coordination with potential investors, 
shall identify denuded area for development of production forests on 
government lands. 
(d) The conversation of natural forests on government land to plantations 
of other land use shall be totally banned for a period of thirty (30) years 
from the effectivity of this Act. 


SEC. 25. Reforestation or Esfablishment of Forest Plantation in Forest 
Lands Under other Government Agencies. Over government agencies and 
institutions having jurisdiction over forestlands as provided under Section 10 and 
11 of this Act shall be responsible for the forestation and rehabilitation of 
denuded and degraded portions of the forestlands under their jurisdiction. Within 
two (2) years from the effectivity of this Act, such other agencieslinstitutions shall 
formulate management plans for their areas, indicating therein the sites identified 
for reforestation, and site that will be used for other purposes. These plans shall 
be subject to approval by the Department, Failure to reforest lands identified for 
the purpose within five (5) years from the Department approval of the 
management plans shall be sufficient grounds to revert the said forestlands to 
the jurisdiction and control of the Department. the Department shall provide 
necessary technical assistance upon request by the concerned agencies. 
plantation activities, the following incentives shall be granted, in addition to those 
already provided by existing laws: 
(a) The agreement holder shall not be subject to any obligation prescribed 
or arising out of the provisions of the National Internal Revenue Code 
on withholding tax at source upon interest paid on borrowing incurred 
for the development of forest plantations; 
(b) Amounts expended by the agreement holder in the development and 
operation of a forest plantation prior to the commercial harvest, shall 
be regarded as ordinary and necessary expense as capital 
expenditure; 
(c) The Board of Investments shall classify forest plantations as pioneer 
and preferred areas of Investment under its annual priority plan subject 
to the rules and regulations of he said Board; 
(d) The agreement holder shall be given priority in credit assistance 
granted by Government-owned, controlled and/or supported financial 
institutions. For this purpose, the Committee created under section 19 
of this act and the Department shall within one (1) year of the effectivity 
of this Act, create a favorable mechanism to support reforestation and 
establishment of forest plantation. 
(e) Upon the premature termination of agreement at no fault of the holder, 
all depreciable permanent and semi-permanent improvements such as 
roads, buildings, and nurseries including the planted, standing trees 
and the other forest crops introduced and to be retained in the area 
shall be properly valuated and the holder shall be entitled to a fair 
compensation thereof, the amount of which shall be mutually agreed 
upon by both the department and the holder and in case of 
disagreement between them, by a mutually acceptable impartial third 
(9 No contract or agreement shall be terminated except for cause or for 
reason of public interest, and only after due process which informs the 
concerned parties of he intention to terminate and allows them to 
present their objections, comments or other relevant information; and 
(9) The agreement holder had the right to transfer, contract, sell or convey 
his rights to any qualified person. 
The Secretary ,ay provide or recommend to the President, other 
incentives in addition to those granted under this section to promote 
reforestation and establishment of forest plantations. 
SEC. 27. Voluntary Offer to Reforest. Private landowners, whether natural 
or judicial persons may participate in reforestation and plantation development or 
SEC. 26. Incentives. To encourage qualified person to engage in forest 
party; 


similar programs of the Department furnishing funds to reforest the area: 
Provided thaf, the property shall be exclusively devoted to the planning of forest 
species for at least one (I) 
rotation, which undertaking shall be annotated at the 
back of the title of the property; 
SEC. 28. Establishment of City or Municipal Parks of Forests. Every City 
or Municipality shall establish a city or municipal park or forest and shall include 
in its yearly budget the necessary funds for its establishment and maintenance. 
The Department shall provide technical assistance to the city or municipality 
concerned upon request, and shall coordinate with the Department of Interior and 
Local Government, non-government organizations and other sectors to ensure 
compliance with this provisions, The Department shall, upon request of 
concerned LGU, set aside areas for watersheds or other purposes that are 
consistent with forest conservation and protection of the environment. 
SEC. 29. Establishment of free Parks in Subdivisions and Providing Tree 
Planting on Roadsides. Every subdivision project to be developed after the 
passage of this act shall include the establishment of a tree park covering not 
less than fifty percent (50%) of the total open spaces required under existing 
laws and regulations. Guideline for the establishment of a tree parks within 
subdivisions shall be prepared jointly by the Housing and Land Use Regulatory 
Board (HLURB) and the Department. For every national, provincial, city or 
municipal road/highway construction project, the Department of Public Works 
and Highways (DPWH) or the concerned LGU shall include the planting and 
maintenance of trees andlor perennial shrubs along the roadlhighway, and 
establishment of roadside parks-cum-rest areas planted to trees andlor perennial 
shrubs every fifty (50) kilometers along the roadlhighway, and shall provide 
adequate funds for this purpose in the respective budgets for roadlhighway 
construction. 
CHAPTER VI1 
FOREST PROTECTION 
SEC. 30. Commercial Logging Activities. In all forestlands as defined in 
Section 3 (w) hereof, there shall be a ban on all commercial logging activities for 
a period of thirty 9300 years form the effectivity of this act, and the issuance of 
licenses, permits or agreements to harvest timber from the natural forests in 
forestlands is hereby prohibited, except as provided under Section 33, hereof. 
Existing timber license agreement, license or permits shall be allowed to continue 
until their expiry, unless otherwise terminated for cause. Upon expiration of the 
thirty year ban, the commercial utilization of forests may be allowed subject to 
rules and regulations prescribed by the Department. 
SEC. 31. Exemption. Community-based forest management projects, 
industrial forest plantations, tree farms, agro-forestry farms and other forest 
plantations including bacauan and other mangrove forest plantations, communal 
forests, ancestral lands and domains with approved ancestral domain 
management plans, and research projects approved by government agencies 
concerned shall not be covered by section 31 of this Act. Government projects 
and those of public utilities involving right-of-way, the development of mineral 
reservations and energy resources and the like shall be allowed subject to the 
issuance of the like shall be allowed subject to the issuance of an Environmental 
compliance Certificate by the Secretary of the Department. 


SEC. 32. Displaced Workers. Workers of existing commercial logging 
operations, including wood processing plants, who will be displaced as a result of 
this Act, shall be given priority in employment in government forestry programs 
including those mentioned in Sec. 15 of this Act. Provided that, workers who are 
upland dwellers displaced as a result of this Act shall likewise be given priority for 
employment in said forestry and reforestation programs and in the allocation of 
forestlands for forest development and livelihood. 
SEC 33. Assistance of Law Enforcemenf Agencies. The Department of 
shall deputize law enforcement agencies and instrumentalities of the 
Government including but nit limited to, the Philippine National Police (PNP), 
Armed Forces of the Philippines (AFP), and the National Bureau of Investigation 
(NBI), for the enforcement of the logging ban and the conservation and protection 
of forests. The assistance of the NGOs, cooperatives, citizen groups, and 
community organizations shall also be utilized for the same purpose. The 
Department of National Defense (DND), through the AFP, in close coordination 
with the Department, shall create a special forest law enforcement unit through a 
process jointly designed by the DND and the Department and composed of 
member recruited for the major service commands of the AFP. 
The special unit, jointly supervise by the DND and the DENR, shall 
provide effective protection of the country's forestlands, including Protected 
Areas and areas which have been reforested. It shall likewise assist the 
government's reforestation program in a capacity to be designated by the 
Department, including other tasks necessary for the effective implementation of 
this Act. 
The Secretary of Justice shall permanently designate a special prosecutor 
in every city and province to immediately file the charges against forest violators 
and ensure their speedy prosecution. He shall promulgate the necessary rules 
and regulations to expedite the prosecution of offenses committed under this Act. 
SEC. 34. Role of Local Residenfs. Qualified local residents may be 
deputized by the Department to assist in the protection of forests against illegal 
loggers, poachers, kaingeros, and land speculators, and land speculators. They 
shall likewise be given the authority to arrest forest violators within their 
communities, subject to existing laws and regulations on arrest and detention. 
SEC. 35. Prevention of Forest Fires and Control of Forest Pests and 
Diseases. The Department, in collaboration with the concerned local government 
unit, shall formulate and implement a program of fire prevention and control 
including incentives to LGUs, private organizations of individuals who participate 
actively in fire prevention and control to reduce damage to forest resources. 
The department, in collaboration with the concerned local government 
unit, shall formulate and implement a program of fore prevention and control 
including incentives to LGUs, private organizations of individuals who participate 
actively in fire prevention and control to reduce damage to forest resources. 
The department shall formulate and implement an integrated pest and 
disease management program including quarantine procedures for imported 
seeds, animals, plants and other forest products and plant parts to prevent and 
control forest pests and diseases. 
SEC. 36. lnformation and Reward Sysfem. The Department shall establish 
an infonation and rewards system as part of the community's participation in the 
protection of forest resources. The rewards shall be immediately payable upon 


the establishment of prima facie proof of violation. In cases where the information 
given leads to the seizure of logs, timber, and other forest products, and results 
in a conviction, the informer shall be entitled to twenty percent (20%) the gross 
proceeds of the seized logs/timber/other forest products disposed of through 
public bidding which shall be payable within three (3) days after full payment by 
the winning bidder. 
CHAPTER Vlll 
FORESTRY RESEARCH, EDUCATION, TRAINING AND EXTENSION 
SEC. 37. Research and Technology Development and Transfer. Rsearch 
and technology development transfer shall be strengthened to support 
sustainable management of forest resources. The Department, the Department 
of Science and technology and the Colleges of Forestry of State University shall, 
within one (1) year from the passage of this Act, prepare a research and 
technology 
development and 
transfer 
agenda for 
sustainable forest 
management, which shall be implemented, monitored and review in accordance 
with existing research management systems. Provided that, adequate and 
sustainable funds for research and technology development and transfer shall be 
provided under the general Appropriations Act. 
SEC. 38. Forestry Extension Service. Within one (1) year from effectivity 
of this act, the department shall formulate a program for development of an 
effective forestry extension service include funds and plantilla for the same in its 
annual budget submission to Congress for inclusion in the General 
Appropriations Act. This program shall be revised and updated as needed to 
ensure Department capability to provide competent extension services to all 
sectors involved or intending to participate in reforestation and other forest 
management activities of privately-owned lands. 
The Department, through, its forestry extension service, shall also develop 
a program to encourage landowners, especially those with lands above eighteen 
percent (1 8%) slope, to forest their properties. 
SEC. 39. National Public Information, Education and Advocacy. The 
Department, the Philippine Information Agency (PIA), the Department of 
Education (DepEd), State Universities and Colleges, Private Universities and 
Colleges, with support form LGUs, NGOs, media and other organizations, shall 
formulate and implement a sustained, nationwide public information and 
advocacy campaign for forest and natural resources conservation and 
sustainable development. The DepEd with the assistance of the Department and 
the College of Forestry, Department of State Universities and Colleges, shall 
formulate curricula for forest and natural resources conservation, which the 
DepEd will prescribe for inclusion in the curricula for elementary and high school 
education. Congress shall allocate funds for the purpose of supporting a 
systematic campaign to promote community ecological awareness through the 
country. 
SEC. 40. Formal Forestry Information. The Commission on Higher 
Education and Development (CHED) in collaboration with the Department, Board 
or Foresters of the Professional Regulations Commission (PRC) and duly 
accredited Forestry Professional Organizations, shall actively pursue the 
rationalization of formal forestry education to ensure high quality manpower 
output to meet the needs of the forestry sector. 


SEC 41. Continuing Education in Forestty. A non-formal program of 
continuing education shall be established to maintain the growth of the forestry 
profession. The board of Foresters of the Professional Regulation Commission 
(PRC) and the Civil Service Commission Department by itself or in cooperation 
with academic institutions shall develop the infrastructure to institutionalize non- 
formal continuing education for the forestry sector. 
SEC. 42. Establishment of Training Center. 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 resources management, development, and utilization to forest 
officers, LGUs, NGOs and local communities including indigenous peoples. 
Furthermore, the Department shall ensure that personnel appointed to critical 
and sensitive positions undergo training to prepare them to discharge their duties 
and responsibilities professionally and effectively. 
SEC. 43. Foresfry Development Center. The Forestry Development 
Center (FDC) based in the College of Forestry, University of the Philippines at 
Los Barios, established under Presidential No. 1559, shall continue to serve as 
the primary policy research and development center for forestry and natural 
resources management. The center shall perform its functions in close 
coordination with the Department and other policy research institutions in the 
country. The Center shall assist the department in the formulation, review and 
evaluation of proposed and existing policies. To enable the center to carry out its 
mandated functions, the Department shall provide financial support to the Center 
based on approved program of activities, which support shall not be less than 
five (5) million pesos yearly and shall be incorporated in the annual 
appropriations of the Department under the General Appropriations Act. 
CHAPTER IX 
DISPOSITON AND UTILIZATION OF FOREST RESOURCES 
SEC. 44. Modes of Forest Management Agreement. The development, 
utilization and management pf forest resources on forestlands shall be under the 
full control and supervise of the Department. The State may directly undertake 
such activities or it may enter into co-production, joint venture or production 
sharing agreement with qualified Filipino citizens or corporations, subject to the 
relevant laws, rules and regulations. Provided, that interested members of forest 
communities as defined in Section 3 hereof, shall be given priority in the grand of 
said agreements, Provided, further, that all applications must be acted upon 
within a period of six (6) administrative or criminal charges against the officers 
tasked to carry out the functions. Such agreements shall have a duration of 
twenty-five (25) years, renewable for another twenty-five (25) years under such 
terms and conditions as ma be provided by the Secretary; Provided, that such 
agreements may not be terminated except for cause or when public interest so 
requires. 
Current holders of existing and valid licenses, contracts or agreements 
granted by the government for the development, management and utilization of 
forest resources may be allowed to continue under the same terms and 
conditions until expiry of such licenses/contracts/agreements or the same may be 
converted into any other mode authorized under this Act and consistent with 
guidelines promulgated by the Department; Provided that, no such conversation 
will be allowed in protection forests as defined in Section 8 of this Act. The 


Department is hereby authorized to formulate rules and regulations covering the 
relevant terms and conditions thereof. 
SEC. 45. Transfer. No holder of a co-production, joint venture or 
production -sharing 
agreement or contract shall sub-contract, transfer, 
exchange, sell or convey the same or any of hislher rights or interests therein 
without authority form the Secretary, and such change of rightslinterests shall 
remain valid for the remaining unexpired term of the original agreement, subject 
to compliance with the terms and conditions thereof: Provided, that no transfer 
shall be authorized unless the agreement or contract has been in existence and 
active for at least three years; Provided further, that the transfer or has faithfully 
complied with the terms and conditions f the said agreement or contract; the 
transferees has all the qualifications and none of the disqualifications to hold the 
same, and the transferee shall assume all the obligations of the transferor. 
SEC. 46. Non-Timber forest Products. Rattan, bamboos, vines, herbs, 
exudates and other non-timer forest products are integral parts if the forest 
ecosystem. The planting and sustainable management of non-timber producing 
species shall be encouraged and supported. The development, management and 
utilization of non-timber forest products in the natural forests, priority shall be 
given to local communities or indigenous peoples living nearest the subject 
forestlands. 
SEC. 47. Grazing. The Department shall identify areas in the production 
forest land suitable for grazing purposes. However, no forestland fifty percent 
(50%) on slope or over may be utilized for grazing purposes. 
(a) Identified grazing land shall be turned to the Department of Agriculture 
(DA) which shall be responsible for licensing utilization of the same 
through lease or other appropriate arrangement by private investors, 
and shall furthermore be responsible for supervising development and 
management of such lands for livestock production purposes; 
(b) Within six (6) months form effectivity of this Act, the Department, in 
collaboration with the DA shall formulate and promulgate guidelines for 
the utilization, development and management of grazing lands 
including, but not limited to prescriptions for pasture improvement, soil, 
water conservation, reforestation pf lands over fifty percent (50%) 
slope and other relevant activities designed to ensure environmentally- 
sound management; 
(c) Within one (1) year from effectivity of this Act, the DA in consultation 
with the Department and revenue collection agencies of the 
government, shall formulate and promulgate guidelines and criteria for 
establishing fess and charges covering utilization of grazing ;ands, the 
amounts of which shall be commensurate with a fair value due to 
government but not less than one hundred fifty pesos (P150.00) 
annually per hectare; 
(d) Existing pasture lease agreemenVforest land grazing lease agreement 
shall be allowed to continue under the current terms and conditions for 
the unexpired term subject to compliance guidelines promulgated 
pursuant to paragraph (b) above; 
(e) The DA shall not issue any new permit, lease or contract, nor such 
existing agreements be allowed to continue on grazing lands if not 
covered by the EIS and an ECC; 
(f) Within one (1) year form effectivity of this Ac, the D, in collaboration 
with the Department shall conduct and complete a review of 
performance of 
existing pastureAeaselforestIand grazing lease 


agreemenVpermits and cancel all such conditions set forth in such 
agreementslpermits; and 
(9) Forestlands that are the subject of cancellation shall be returned to the 
Department for rehabilitation, protection, and conservation. 
SEC. 48. Mining and Power Generation Operation in Forestlands. Forest 
resources inside mineral lands are under the Department's jurisdiction, and their 
management and utilization are subject to the provisions of this Act. Power 
generation and small-scale mining operations in forestlands may be allowed only 
after the issuance of an Environmental Compliance Certification (ECC). 
SEC. 49. 
Roads and Other Infrastructures. 
Roads and other 
infrastructures inside forestlands shall e constructed with least impairment to the 
resources valued found in such forestlands. Government agencies undertaking 
the construction of roads, bridges, communication and other infrastructure inside 
forestlands shall coordinate with and seek prior authority from the Department. 
Persons allowed to develop, explore or utilize forest resources as provided 
under See. 
50 of this Act, may be allowed t construct roads and other 
infrastructure inside the forestlands in accordance with approved comprehensive 
management plans, and upon compliance with EIA and ECC requirements and 
upon authorization by the Department. All roads and infrastructure constructed 
by forest management agreement holders and other permitees, licensees and 
lessees shall belong to tbe State, and their use and administration shall be 
transferred to the government upon termination of the agreement. 
CHAPTER X 
FOREST-BASED INDUSTRIES 
SEC. 50. Establishment and Operation of Forest-Based Industries. It hall 
be the policy of the State to assure the availability and sustainability of the 
country's forest through judicious use and systematic restoration or replacement, 
increase the productivity of forest resources to meet the demands for forest- 
based goods and services of a growing population; enhance the contribution of 
forest resources for achieving national economic and social development; and 
promote the establishment, operation and development of forest-based 
industries; Provided that, the Department shall regulate the establishment and 
operation of processing plants or mils for forest products. To achieve this policy 
objective, incentives shall be provided to forest-based industries. 
SEC. 51. Incentives for Forest-Based Industries. To enable forest-based 
industries to be efficient, competitive and economically viable, the following 
incentives shall be granted in addition to those already provided by existing laws; 
All processing plants or mills shall be granted operating permits 
with a duration of five (5) years and automatically renewable 
every five (5) years thereafter, subject to compliance with the 
terms and conditions of such permit; Provided that, permits of 
processing plants owned of operated by holders of forest 
management agreements or contrakts shall be co-terminus with 
the expiry of said agreements of contracts; 
The Department shall provide incentive for the processing of 
lesser used and non-wood species, and all logging and wood 
processing wastes; 
(a) 
(b) 


(c) 
The Department shall, within one (1) year from the effectivity of 
this Act, submit to Congress, through the President of the 
Philippines, additional measures that need to be legislated and 
that are designed to improve the competitiveness and viability of 
forest-based industries; and 
The Department shall promote and strengthen the linkages 
between corporate and community-based industries; and 
The Department may provide other incentives to forest-based 
industries as may be necessary. 
(d) 
(e) 
SEC. 52. Export and Sale of Timber Products. Finished and semi-finished 
lumber products, wood manufactures and other finished wood products derived 
from local and imported logs and planted species shall be allowed for export. 
However, logs and unprocessed wood of naturally-grown species of whatever 
dimensions cut, gathered or removed from natural forests in forestlands shall not 
be exported. 
Exportation of logs, lumber and other finished products form plantations 
shall be allowed pursuant to such guidelines that the Department may 
promulgate. Furthermore, no restrictions, rules or regulations shall be imposed to 
prevent the export of timber and other forest products derived from plantations 
established on privately owned lands. 
No person shall sell or offer for sale any log, limber, plywood or other 
manufactured wood products in the international or domestic market unless 
he/she complies with the grading rules established grading rules and standards, 
or any act of falsification of the volume of logs, lumber, or other forest products in 
the international or domestic market shall be sufficient cause for cancellation of 
export license, wood, processing permit, or other license or permit authorizing 
the manufacture or sale of such products. 
SEC. 53. Importation of Logs and Other Forests and Wood Products. 
Logs, lumber and other forest and wood-based products may be imported 
subject to the tariff schedules and/or rules an regulation promulgated by the 
government. 
CHAPTER XI. 
FOREST CHARGES, FEES AND RENTALS 
SEC. 54. Fees Rentals for the Utilization, Exploitation, Occupation, 
Possession of the Activities within Forestlands. The department shall prescribe 
appropriate fees and rentals for the different kinds of utilization, exploitation, 
occupation, possession of, or activities within forestlands. Likewise, fees shall be 
collected for the filing and processing of application thereof as well as the 
issuance and renewal of license, permits and agreements. 
SEC. 55. Forest Charges. Forest charges shall be collected on forest 
products in accordance with the provisions of Republic Act No. 7161. the 
Department shall develop guidelines for the assessment and collection of forest 
charges. 
SEC. 56. Fees for Administrative Services Rendered by the Department. 
Fees shall be collected for various administrative services rendered by personnel 
of the Department in connection with their duties and responsibilities as may be 


requested by interested parties, including but not limited to, surveying, mapping 
and other similar service activities. 
CHAPTER XII. 
APPROPRIATIONS AND FINANCING SUPPORT 
SEC. 57. Appropriations. The amount necessary to carry out the 
provisions of this Act shall be included in the General Appropriations Act of the 
year following its enactment into law and thereafter/ 
SEC. 58. Funding. In its budget preparation, the Department and the local 
government units shall allot adequate funds to effectively implement CBFM 
targets and shall ensure the inclusion of such budgetary allocation in the annual 
General Appropriations Act. 
SEC. 59. Sustainable forestry Development Fund. In order to provide 
sustainable funds for forestry development and protection activities such as 
reforestation and CBFM projects, a sustainable forestry development fund shall 
be created. At least thirty percent (30%) of the forest charges and government 
share in all products removed from the forestlands, rentals, proceeds form sales 
of confiscated forest products including conveyances, fines and penalties and 
administrative charges shall be collected and set aside for the buildup of 
sustainable forestry development fund 
The Department, through the Forest Management Bureau (FMB), in 
coordination with LGUs, NGOs, Pos and government financial institutions shall 
create mechanisms to manage the Sustainable Forestry Development Fund. 
CHAPTER XIII. 
CRIMINAL OFFENSES AND PENALTIES 
SEC. 60. Harvesting, Gathering and/or Collecting timber or Other Forest 
Producfs Without Authority. Any person who shall harvest, cut, gather, collect or 
remove timber or other forest products form any forestland, or timber from natural 
forest inside alienable and disposable public land, without authority for the 
Secretary of who shall possess timber or other forest products without the 
pertinent required legal documents shall be punished by imprisonment ranging 
from prison mayor minimum period to reclusion temporal minimum period andlor 
a fine equivalent to ten times the value of the said forest product but not less than 
fifty thousand pesos (P50,OOO.OO); Provided that, in case of partnerships, 
associations or corporations, the president, managing partner, and general 
manager shall be liable, and if such officer is an alien, he shall, in addition to the 
penalty, be deported without further proceedings on the part of the Bureau of 
Immigration and Deportation Offenders who are public officials shall be deemed 
automatically dismissed from office and permanently disqualified from holding 
any elective or appointive position. All timber or any forest products cut, 
gathered, collected, removed or possessed and all the conveyances, machinery, 
equipment. Implements, work animals and tools used in connection with this 
violation shall be seized and confiscated in favor of the government. 
SEC. 61. Illegal Cutting as an Act of Economic Sabotage. If any acts 
enumerated in the preceding section have been committed by an armed group or 
organized group through conspiracy, threat, fraud or deceit, the gathering, 


collecting or removing timber or other forest products form any forestland or 
available and disposable public land without any authority form the Secretary, or 
possession of timber or other forest products without the pertinent required legal 
documents shall be considered as an act of economic sabotage and shall be 
punishable reclusion perpetua. 
SEC. 62. Use of lllegally Cut Timber in Govemmenf Infrastructure. 
Contractors of government infrastructure are required to obtain certification form 
the Department that the lumbers used were from legitimate sources. Use of 
illegally cut timber in government infrastructure project is prohibited and shall be 
sufficient cause for withholding of the payment of the contractors. Further, the 
contractor may be subject to the penalties provided under section 72 hereof. 
SEC. 63. Damage fo Residual Trees. To ensure the sustainability of the 
forest, adequate number of residual trees shall be marked to form part of the 
managed forest and as he future timber crop before any harvesting operations 
commence. Any marked residual tree that is damaged is subject to a fine 
equivalent to four times regular forest charges. 
SEC. 64. Grazing Livestock on Forestlands without a Permit. 
Imprisonment for not less than two (2) years nor more than four (4) years and a 
fine equivalent to ten times the regular rentals due in addition to confiscation of 
such livestock and all improvements introduced in the area in favor of 
government shall be imposed on any person who shall, without authority under 
lease or permit, graze or cause to graze livestock in forestlands, grazing lands 
and alienable and disposable lands, which have not yet been disposed in 
accordance with the Public Land Act. Provided fhat, in case the offender is a 
corporation, partnership, or association, the officer or employee, he shall, in 
addition to the above penalties, be deemed automatically dismissed form office 
and permanently disqualified form holding any elective or appointive position in 
the government service. 
SEC. 65. Unlawful Occupation or Desfrucfion of Forestlands. Any person 
who enters, occupies or possess, or makes kaingin for his own private use or for 
others, in any forestland, or grazing land without authority from the Secretary, or 
in any manner destroys such forestland, or part thereof, or cause any danger to 
the forests found therein, or assists, aids or abets any other person to do so, or 
sets a fire, or negligently permits a fire to be set in any forestland, or refuses 
lawful order to vacate the area when ordered to do so shall, upon conviction, be 
punished an amount of not less that twenty thousand pesos (P20,OOO.OO) 
but not 
more than one hundred thousand pesos (PlOO,OOO.OO) and imprisonment of not 
less than two (2) years but note that six (6) years for each offense: Provided fhat, 
in case of any offender found guilty of making kaingin, the penalty shall be 
imprisoned for not less than ten (IO) years but not more than twelve (12) years 
and a fine equivalent to eight (8) times the regular forest charges due on the 
forest products destroyed without prejudice to payment of the full cost of 
rehabilitation of the occupied areas as determined by the Department: Provided 
furfher, that the maximum penalty prescribed herein shall be imposed upon any 
offender who repeats the same offense for the third time or ofterner. In all cases, 
the court shall further order the eviction of the offender from the land and the 
forfeiture to the government of all improvements made and all vehicles, domestic 
animals and equipment and improvements shall be sold at public auction, the 
proceeds form which shall accrue to the Sustainable Forestry Development 
Fund. In case the offender is a government officer or employee, he shall, in 
addition to the above penalties, be deemed automatically dismissed form office 
and permanently disqualified form holding any elective or appointive position in 
the government service. 


If the offender is an alien, he shall be deported after service of sentence 
SEC. 66. //legal Acts on Wildlife. It shall be unlawful for any person to 
payment of fines without further proceedings. 
collect, catch, possess, hunt, wound, kill, capture or destroy the nest or eggs, 
host plants, trade display or keep in pet shops, flower shops, orchidarium, 
nurseries, and the life, threatened wildlife, its by product or derivatives or destroy 
the habitat of wildlife, including those designed as critical habitat. Any person 
violating this provision shall be punished by imprisonment of six (6) years and 
one (1) day to twelve 912) years and a fine of One Million Pesos 
(PI ,000,000.000) for species listed under CITES I; 
Seven hundred fifty thousand 
pesos (P750,OOO.OO) 
for species fisted under CITES I/, and a five hundred 
thousand pesos (P500,OOO.OO) for threatened species. 
a civil action for damages which may proceed independently. 
All wildlife and its derivatives or by-products, and all paraphernalia, tools 
and conveyances used in connection with violations of these provisions shall be 
seized and confiscated in favor of the government, 
In case the offender is a government officer or employee, he/she shall, in 
addition to the above penalties, be deemed automatically dismissed form office 
and permanently disqualified form holding any elective or appointive position in 
the government service. If the offender is an alien, hekhe shall be deported after 
service of sentence and payment of fines without any further proceedings. 
SEC. 67. Misdeclaration, falsification of Forest Resources Inventory, 
Scaling, Surveys and Reports by Government Official or Employee. Any public 
officer or employee who knowingly misdeclares or falsifies forest resources 
inventory, scaling, surveys, and other similar reports which are contrary to the 
criteria and standards established in this Act or rules and regulations 
promulgated hereunder shall, after an appropriate administrative proceeding, be 
dismissed from the service and permanently disqualified form employment in any 
agency of the government. Upon conviction by a court of competent jurisdiction, 
the same public officer or employee shall further suffer an imprisonment of not 
less than eight (8) years or more than twelve (12) years and a fine of not less 
than twenty thousand pesos (P20,OOO.OO) nor more than hundred thousand 
pesos (PlO0,OOO.OO). Furthermore, the subject inventory, survey, classification or 
report shall be null and void. 
SEC. 68. Unlawful Operation of Processing Plants and Mills. Any person 
operating a processing plant or mill without authority from the Secretary or his 
duly authorized representative, shall be punished by a fine of not less than one 
hundred thousand pesos (PlOO,OOO.OO) and confiscation of the equipment and 
other paraphernalia in favor of the government. 
SEC. 69. Prohibition on Issuance of tax Declaration on Forestlands. Any 
public officer or employee who shall issue a tax declaration for any purpose on 
forestland, shall suffer imprisonment for a period of not less than four (4) years 
but not more than eight (8) years and perpetual disqualification from holding an 
elective or appointive office: Provided that, such tax declaration shall be 
considered null and void. 
A criminal action for violation of this provision shall not bar the institution of 
SEC. 70. Unlawful possession of Implements and Devices Used by Forest 
Officers. Unlawful possession of official implements and devices used by forest 
officers, such as but not limited to marking hatchers, shall be penalized with 


imprisonment if not less than four (4) years nor more than eight (8) years and a 
fine of not less than twenty thousand pesos (P20,OOO.OO) nor more than one 
hundred thousand pesos (PI 00,000.00). In addition, the said forest officer 
responsible for faithful possession and use of such implement/device shall be 
dismissed from the service, with prejudice to reinstatement and with perpetua 
disqualification from holding any elective or appointive position. 
SEC. 71. Unathorized lntroduction of Logging Tools and Equipment h i d e  
Forestlands and National Parks. It shall be unlawful for any person or entity to 
possess, bring or introduce inside forestlands any chainsaw, logging tools or 
equipment other than bolos and simple hand tool without prior authority from the 
Secretary of his duly authorized representative. Any person found guilty f illegal 
possession of said chainsaw, logging tools or equipment shall be liable to 
imprisonment of twelve 912) years and one (1) day of fourteen (14) years and 
eight (8) months or fined not less than fifty thousand pesos (P50,OOO.OO) or more 
than one hundred thousand (P100,OOO.OO) or both, and confiscation of said 
logging tools and equipment. 
SEC. 72. Non-payment and Non-Remittance of Forest Charges. Any 
person who fails to pay the amount due payable to the government shall not be 
allowed to transport, convey, sell or use the forest product and failure to pay 
within thirty (30) days upon assessment of forest charges, shall be ground for the 
confiscation of the said forest product in favor of the government pursuant to 
Section 60 of this Act. Any person who fails or refuses to remit to proper 
authorities said forest charges collectible pursuant to the provision of this Act or 
the National Internal Revenue Code, as amended, or who delays, obstructs or 
prevents the same, or who orders, causes or effects the transfer or diversions of 
the funds for purposes other than those specified in this Act for each such 
offense shall, upon conviction, be imprisoned for not less than six (6) years nor 
more than ten (IO) years and be fined form twenty thousand pesos (P20,OOO.OO) 
to one hundred thousand pesos (P 100,000.00). If the offender is a government 
official or employee, helshe shall, in addition, be dismissed form service, 
permanently disqualified form employment or reinstatement and perpetually 
disqualified form holding any elective or appointive office. If the offender is a 
corporation, partnership or association, officers and directors thereof shall be 
liable. 
SEC. 73. lnstifution of Criminal Actions by Forest Officers. A forest officer 
shall arrest even warrant any person who has committed or is about to commit, 
or is committing in his presence any of the offense defined in this chapter. 
He/she shall also seize and confiscate, in favor of the government, the tools, 
equipment and conveyances used in committing the offense, and the forest 
product out, gathered, taken or possessed by the offender in the process of 
committing the offense. The arresting forest officer shall thereafter deliver within 
six (6) hours form time of arrest or seizure, the offender and the confiscated 
forest products, conveyances, tools and equipment, or the documents pertaining 
to the same, and file the proper complaint with the appropriate official designated 
by law to conduct preliminary investigation and the information in court. If the 
arrest and seizure are made in the forest, far from authorities designed by law to 
conduct preliminary investigations, the delivery and complaint with the latter shall 
be done within a reasonable time sufficient for ordinary travel form the place of 
arrest to the place of delivery. The seized products materials, conveyances, 
tools, and equipment shall be disposed of in accordance with the regulations 
promulgated by the Department. The secretary may deputize any agency, 
barangay or barrio official or nay qualified person to protect the forest and 
exercise the powers to authority provided for in the preceding paragraph, in the 
case of reports and complaints regarding the commission of any of the offenses 


defined in this chapter not committed in the presence of any forest officer or may 
of the deputized officer but reported to a forest officer, the said forest officer shall 
immediately advise the forest officer assigned in the area where the offense was 
allegedly committed and the latter shall promptly receive the evidence supporting 
the report of the complaint and if such evidence if found sufficient file the 
necessary complaint with the appropriate official authorized by law to conduct a 
preliminary investigation of criminal case and file an information in court. 
SEC. 74. Liability of Confiscating Officers. Any public officer who fails to 
produce the timber or forests products or any part thereof including tools, 
conveyances, equipment, machine and devices in his custody pursuant to a 
seizure of confiscation made thereon, or who shall appropriate, take, 
misappropriate, or permit any other person to take such timber or forest products 
wholly or partially, shall suffer the penalty provided for in Article 217 of the 
revised Penal Code. In addition, the said public officer shall be dismissed from 
service permanently disqualified form employment or reinstatement and 
perpetually disqualified form holding any elective or appointive office. 
CHAPTER XIV 
ADMINISTRATIVE PROVISIONS 
SEC. 75. Strengthening of the Forest Management Bureau and the Forest 
Management Sector. In order to effectively implement the provisions of this Act, 
the Forest Management Bureau (FMB) shall be strengthen and shall have the 
following functions in addition to the function enumerated under Executive Order 
No. 192: (a) coordinate and supervise the formulation and implementation of 
forestry policies, plans and programs, (b) lead in the monitoring and evaluation of 
these policies, plans and programs and the like (c) review and evaluate all 
applications for licenses, permits, joint ventures, and management agreements 
for issuance andlor approval by the Secretary. To ensure that the scientific 
practice of forestry in the country is properly implemented, only registered 
foresters shall be appointed to the positions of Director and Assistant Director of 
the Bureau and Regional Technical Director of the Forestry Sector and all other 
forester positions, in accordance with existing Civil Service rules and regulations. 
The Forest Management Bureau (FMB) shall be reorganized into a line 
agency. The Secretary, in consultation with the Civil Service Commission (CSC) 
and the Department of Budget and Management (DBM), is hereby authorized to 
recognize the Bureau and the forestry sector at the field level and create 
additional positions as may be necessary for community-based forest 
management, forest protection and other programs mandated under this Act, and 
to upgrade the salaried of foresters and other forest officers. 
SEC. 76. Authority of the Secretary on the Utilization of Forest Resources. 
The utilization of forest resources form natural forest found in forestlands, 
alienable and disposable lands not yet awarded to private individuals or entities, 
government-established reservation, and all other forestlands including those 
under ancestral domain claims and control or management of other government 
agencies, shall be prohibited except through valid license, permit, or other 
agreement approved by the Secretary or hislher duly-authorized representatives. 
SEC. 77. Administrative Authority of the Secretav of his Duly Authorized 
Representative to Order Confiscation. In all cases of violations of this Act or other 
forest laws, rules, and regulation, the Secretary of this duly-authorized 
representative may order the confiscation of forest products illegally harvested, 


cut, land, water or air as well as the machinery, conveyance, equipment 
implement and tools used in the commission of the offense and to dispose of the 
same in accordance with pertinent laws, regulations or policies on eh matter. 
If the confiscated forest products are in danger of deterioration, the 
Secretary may order, that the same be sold at public auctions even before the 
termination of the judicial proceedings, in which case the proceeds shall be 
turned over and entrusted to the court pending the outcome of such proceedings. 
No courts in Philippines shall have jurisdiction to issue any writ of replevin, 
restraining order, or preliminary mandatory injunction in any case involving or 
growing out of any action by the Secretary or his duly authorized representative 
in the exercise of the foregoing administrative authority. 
SEC. 78. Administrative Authority of the Secretary to lmpose Fines. In al 
cases of violation, forest officers or other government officials or employees duly 
authorized by the Secretary, shall have free entry into areas covered by a 
contract, agreement, lease or permit. Forest officers are authorized to inspect 
and open close vans suspected to contain illegally harvested, collected or 
transported forest products, provided this is done in the presence of the shipper 
or consignee of two (2) responsible public officials in the locally. Forest officers 
are authorized to administer oath, take acknowledgement in official matters 
connected with the functions of their office, take testimony in official 
investigations, conducted under the authority of this Act and implementing rules 
and regulations issued pursuant thereof. 
SEC. 79. Visitorial Powers. The Secretary of his duly authorized 
representative shall, from time to time, investigate inspect and examine records, 
and other document except bank records to the operation of any person granted 
the privilege or with a contract to utilize forest resources to determine compliance 
with the terms and conditions stipulated in the grant, the contract, this Act and 
pertinent laws, rules and regulations. 
SEC. 80. Other Incentives. Twenty percent (20%) of the value of 
confiscated materials shall paid as incentives to informants including member of 
Multi-Sectoral Forest Management Councils or similar bodies and Department 
personnel. Confiscated forest products may also be donated to LGUs and other 
government agencies or building government infrastructure in recognition of their 
participation in forest protection activities. Additional incentives may be provided 
by the Department, in additional to those provided under the Government Service 
Insurance System (GSIS) or Workmen’s Compensation Law. They shall also be 
entitled to free legal assistance should legal cases be filed against them in the 
performance of official duties. 
SEC. 81. Protection for Witness to Violation/s of Forestry Laws. Witness to 
violation for this Act or other forestry laws and regulations, including the 
immediate family members of said witness, shall be given protection, security 
and benefits, subject to the provisions of Republic Act No. 6981, otherwise 
known as “Witness Protection, Security and Benefit Act” and its implementing 
rules and regulations. 
SEC. 82. Rule-Making Authority. Implementing Rules and Regulations, the 
Secretary shall, within one (1) year from effectivity of this Act , promulgate the 
rules and regulations necessary to effectively implement the provisions of this 
Act. 


SEC. 83. Separability Clause. Should any provisions herein be declared 
unconstitutional, the same shall nor affect the validity or the legality of the other 
provisions. 
SEC. 84. Repealing Clause. Subsections (b), (d), (e), (0, (9) and (i) of 
Section 4 of Act No. 3915; Republic Act No. 460; Presidential Decree Nos. 705, 
1153, 1515, 1559, 1775, and 1998; Letter of Instruction No. 818; Executive Order 
No. 277 and 288 and series of 1987 and Executive Order No. 725, series of 
1981, are hereby repealed, and all laws, orders, rules and regulations or any part 
hereof which are inconsistent herewith are repealed or amended accordingly. 
SEC. 85. Effectivity. This Act shall take effect thirty (30) days form the 
date of its publication in the Official Gazette and at least two (2) newspaper of 
general circulation. 
Approved,