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THIRTEENTH CONGRESS OF THE REPUBLIC 
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OF THE PHILIPPINES 
1 
First Regular Session 
1 
S E N A T E  
S. No. 
Introduced by Senator S. R. OsmeAa Ill 
EXPLANATORY NOTE 
During the past decade, the concern for environmental protection claimed 
the public's attention with tremendous force world-wide. The growing concern for 
ecological balance has been motivated by the natural disasters that were 
attributed to the environmental degradation resulting from over half a century of 
industria I develop men t. 
In the Philippines, the massive exportation of lumber during the post-war 
period, and the accelerating urbanization and the encroachment of urban 
settlements into agricultural and forest lands have resulted in the despoliation of 
forests. Our forest cover fell from 16.67 million hectares in 1967 to 6.79 million 
hectares in 1987. Forest fires resulting from sheer neglect also contributed to the 
destruction of our forests. Despite a log ban that sought to check the depletion of 
our forest resources, the forest cover further declined to 5.59 million hectares in 
1995. Towards the end of the century, the forest cover was estimated at no more 
than I 9  percent of the total land area of the Philippines. 
The increasing incidence of disastrous floods that have claimed countless 
lives and property, as well as' droughts that ravage the land in the dry season 'and 
the general decline in the productivity of lowland farms and fishing grounds are 
all attributed in one way or another to the diminution of our forests. 
This bill seeks to address the problem of forest destruction through the 
establishment of systems for forest management. Indigenous people and other 
communities whose livelihood depend on the forest have the strongest incentive 
for ensuring the conservation and sustainable use of our forests, to be further 
strengthened by improving the land-tenure security of forest communities. 
This bill provides for a Community-Based Forest Management Program 
(CBFMP) to be undertaken by the DENR, the DlLG and local government units. 
Indigenous people and other forest communities will be empowered to mange, 
develop, utilize and protect forest resources in a sustainable way. The success of 
this program rests on the involvement and participation of stakeholders whose 
incentives are consistent with those of society as a whole. 
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In view of the foregoing, early passage of this bill is earnestly requested. 
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r% 
SERGlO OSMENA 111 
Senator 
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THIRTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
1 
First Regular Session 
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P 
YL 
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S E N A T E  
Introduced by Senator S. R. OsmeAa 111 
AN ACT 
PROVIDING 
FOR THE 
SUSTAINABLE MANAGEMENT OF 
FOREST 
RESOURCES AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Republic of 
the Philippines in Congress assembled 
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Section 1. Title - This act shall be known as the “Sustainable 
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Management of Forest Act of 2004.” 
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SEC. 2. Declarafion of Policy. - In conformity with the provision of the 
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Constitution to promote the general welfare and social justice in all phases of 
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national development, to protect and advance the right of the Filipino people to a 
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balanced and healthy ecosystem in accordance with the rhythm and harmony of 
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nature, and to conserve and develop the patrimony of the nation, the State 
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hereby adopts the following policies relative to the management of forests and 
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their resources on a sustainable basis: 
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a. Sustainable and integrated management and development of 
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forest resources. The management and development of forest 
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resources in an integrated and sustainable basis, focusing on the 
resource and the people who manage and benefit from it, shall be the 
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guiding principle in the management, protection, conservation and 
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development of forest resources. 
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b. 
C. 
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d. 
e. 
f. 
g. 
h. 
Watershed as the basic forestland management unit. Forestland 
management plans shall be developed and implemented utilizing the 
watershed as the basic management unit. The forestlands shall be 
managed under the concepts of sustainable and multiple-use, 
including the conservation of the 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 (IPS) 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 
agroforestry 
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 society. 
Protection and rehabilitation of forestlands 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. 
Permanency of forestland limits. The specific limits of forestlands 
after these have been fixed and demarcated shall not be altered 
except through the 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. 
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i. Professionalism in forest service. A dynamic professional and 
people-oriented forest service shall be established and fully supported. 
j. 
Security of tenure. In pursuance of the principle of multi-use forest 
management, a secured tenure shall be guaranteed by the State. 
SEC. 3. Definifion of Terms. - As used in this Act, the following terms 
shall have the corresponding meanings: 
a. Agroforesfry. - refers to a sustainable management of lands which 
increases their overall productivity by properly combining agricultural 
crops and/or livestock with forest crops simultaneously or sequentially 
through the application of management practices which are compatible 
with tHe local climate, topography, slope and soil as well as with the 
cultural patterns or' customary laws of the local population. 
b. Alienable and Disposable Lands. - are those lands of the public 
domain which have been delineated, classified and declared as such 
and available for disposition under Commonwealth Act No. 141, as 
amended, otherwise known as the Public Land Act. 
c. Ancestral Domain - refers 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 
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present except when interrupted by war, force majeure, or displaced by 
force, deceit or stealth. 
d. Annual Allowable Harvest. - refers to the amount or volume of 
materials, whether of timber, non-timber or other forest products, 
authorized by the government to be harvest within each year from the 
forests. 
e. Assisted Natural Regenerafion (ANR) - refers to systematic and 
sustained prevention of fire, care and tending of naturally-growing 
seedlings, and other related activities implemented to expedite the 
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restoration of forest cover, including trees, brush and associated 
vegetation through the natural process of biological succession. 
f. Biological Diversity. - means the variability among living organisms 
i n c I u d in g , in ter-alia, te rres t ri a I, marine and other a q u a t i c e cos ys t e m s 
and ecological complexes of which they are part, this include diversity 
within species, between species and ecosystems 
g. Brushlands - refer to areas characterized by discontinuous cover of 
shrubby and non-woody vegetation including grasses usually as a 
result or repeated clearing and burning of the original forest cover 
h. Buffer Zones - are areas outside the boundaries of and immediately 
adjacent to protected areas designated 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. 
i. Commercial Logging - refer to cutting or felling of trees in all types of 
forests for the purpose of disposing of the cut or felled logs for 
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monetary profits beyond survival and livelihood means. 
j. 
Communal Forest - 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. 
k. Community-Basad Forest Management 
Strategy- refers to all 
organized efforts of government to work with communities in and 
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. 
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Conveyance - refers to any vehicle, vessel, device or animals used in 
transporting forest products, 
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m. Co-Production Agreement - is an agreement entered into by and 
between a qualified personk and the government for the former to 
develop, utilize and manage, consistent with the principle of 
sustainable development a specified portion of the forestland wherein 
both parties agree to provide inputs and share the products or their 
equivalent cash value. 
n. Critical Wafershed - is that portion of a watershed reservation which 
has been classified as strict protection zone and closed to all human 
activity except for scientific studies, or for, traditional, ceremonial, or 
religious use by indigenous peoples. 
0. Deparfment - refers to the department of Environment and Natural 
Resources. 
p. Environmenf lmpact Assessment (€/A) - refers to the process of 
predicting the likely environmental consequences of implementing 
projects or undertakings, and designing the appropriate preventive, 
mitigating or enhancement measures. 
q. Environmental Compliance Certificate - refers 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 requirements of the Environmental 
Impact Assessment (EIA) system, and that the proponent is committed 
to implement its approved Environment Management Plan in the EIS 
or mitigation measures in the Initial Environmental Examination (IEE). 
r. Environmental lmpact Statement (€IS) System - refers to the entire 
process 
of 
organization , 
ad ministration, 
and 
procedures 
institutionalized for purposes of assessing the significance of the 
effects of any project or undertaking on the quality of the physical, 
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biological and socio-economic environment, and designing appropriate 
mitigating and enhancement measures. 
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s. Flitch - refers to a'large piece of sawn log or, as that term is commonly 
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applied, to a part of a log of a greater thickqess than a plank or board, 
Forest - refers to either natural vegetation or a plantation of forest 
crops such as trees, or both, occupying a definable, uninterrupted or 
contiguous areas exceeding but not less than one hectare in size with 
three 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 trees 
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, and 2) growth formation. In 
terms of primary use and management, a forest shall either be 
classified as 1) protection forest; 2) production forest or 3) multiple-use 
forest after its most suitable function has been determined pursuant to 
this Act. In terms of growth formation, a natural forest is classified as 
either 1) primary or old-growth forest which has not 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 2) managed forest as herein defined. 
Forest Charges - refer to levies imposed and collected by the 
government on timber and other forest products. 
Forest Community - is a group of people residing inside or 
immediately adjacent to a particular forestland who are largely or partly 
dependent on the forest resources found therein for their subsistence. 
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w. Forestlands - refer to lands of the public domain which have been 
classified as such pursuant to this Act and all unclassified lands of the 
public domain. 
x. Forest Officer - refers to any public officer who by nature of his/her 
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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. 
y. Forest Plantation - refers to a tract of land extensively planted to forest 
trees, rattan, bamboo, and all other forest species. 
z. Forest Resources - refers to all natural resources whether biomass 
such as plants and animals or non-biomass such as soil and water as 
well as intangible services and values present in forestlands or in other 
lands devoted for forest purposes. 
aa.Grazing Land - refers to a part of the forestland designated and 
managed for the raising of livestock. 
bb.lndigenous Cultural Communities (KC) - refers to a group of people 
living in homogenous societies identified by self-ascription and 
ascription by others, who have continuously lived as an organized 
community on communally bounded and defined territory, and who 
have continuously lived 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 distinctive cultural traits, or who have, through 
resistance to political, social and cultural inroads of colonization, non- 
indigenous religious and cultures, because historically differentiated 
from majority of the Filipinos. lCCs shall likewise include peoples who 
are regarded as indigenous on account of their descent from the 
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populations which inhabited the country, at the time of conquest or 
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colonization, or at the time of inroads of non-indigenous religious and 
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cultures, or the establishment of present state boundaries, who retain 
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some or all of their own social, economic, cultural and political 
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institutions, but who may have been displaced form their traditions 
domains or who may have resettled outside their ancestral domains. 
As used in this Act indigenous cultural community is synonymous with 
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indigenous people (IP). 
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cc. lndustrial Forest Plantation or IFP - refers to any tract of land and 
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other public and private lands planted to timber producing species, 
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including rubber andlor non-timber species such as rattan and 
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bamboo, primarily to supply the raw material requirements of existing 
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or proposed forest-based industries, energy-generating plants and 
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related industries. 
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dd. Joint Venture Agreement - is an agreement whereby a joint-venture 
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company is organized by the government and a qualified person, with 
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both parties having equity shares, to develop and manage, consistent 
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with the principles of sustainable development, a portion of a forestland 
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under terms and conditions mutually acceptable to both parties 
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ee. Kaingeros - refer to upland farmers who practice slash-and-burn or 
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shifting cultivation. 
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ff. Managed Forest - refers to a forest under deliberate system of 
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protection, rehabilitation and development which may include utilization 
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of resources, to ensure the production of desired products and 
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services, and the conservation of soil, water, wildlife and other natural 
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resources therein for the benefit of present and future generations. 
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gg. Multiple Use - refers to harmonized utilization, development and 
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management of forestland for the production of two or more products, 
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goods and/or services in conformity with the principle of sustainable 
development. 
hh. National Park - refers to a forest reservation essentially of natural 
wilderness character which has been withdrawn for settlement, 
occupation or any form of exploration except in conformity with an 
approved management plan and set aside as such primarily to 
conserve the area or preserve the scenery, the natural and historic 
objects, wild animals and plants therein and to provide enjoyment of 
these features in such areas 
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ii. Non-Government Organization (NGO) - refers to a responsible non- 
stock, non-profit organization created or established primarily for 
voluntary service 
jj. Permit - refers 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. 
kk. Person - refers to a natural as well as a juridical person 
II. Processing Plant or Mi// - refers to a physical structure including its 
complement of machinery and equipment used for processing of 
timber or logs, other raw wood, non-timber or other forest products into 
semi-finished or finished forms. 
mm. Production Sharing Agreement - is a contract wherein the 
government grants to a person the privilege to mange, develop and 
utilize forest resources within a specific area and period of time, with 
the grantee providing the financing, technology, management, 
personnel and other inputs necessary for the implementation of the 
agreement, and both parties sharing the benefits under terms and 
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conditions set forth in the agreement. 
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nn.Protected Areas - are those areas defined and designated as such 
pursuant to Republic Act no. 7586 or NIPAS Act. 
oo.Reforestafion - refers to all land use activities directed towards the 
restoration, establishment and sustained management of diversified 
vegetation on denuded, degraded and/or marginal lands, including but 
not limited to the planting and tending of timber, orchard and multi-use 
trees, perennial leguminous vines (Le. cover crops), grass, shrubs, 
vegetative hedgerows grown on contours, the establishment of check 
dams and other measures which contribute to sell and water 
conservation. 
pp. Resewation - refers to an area of forestland that has been reserved by 
law for a specific purpose. 
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qq.Rofafion - refers to the number of years between the initial 
establishment of a plantation and the time when it is considered ready 
for harvesting. 
rr. Secretary - refers to the Secretary of the Department of Environment 
and Natural Resources. 
ss. Semi-finished Wood Products - refer to end products requiring final 
stages of manufacture and/or assembly such as, but not limited to, 
window components, table tops, veneer and other similar products. 
tt. Sustainable Development - means meeting the needs of the present 
generation without compromising the ability of the future generation to 
meet their own needs. 
uu. Sustainable forest Management and Development - is the process of 
managing, developing, and utilizing forestland resources to achieve the 
production of desired products or services without impairing the 
inherent productivity of the forest thereby insuring a continuous flow or 
these products or services. 
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vv. Tenure - means guaranteed peaceful access to and use of specific 
forestland area and the resources found in it by an agreement, contract 
or grant which cannot be altered or abrogated without the process. 
ww. 
Tiber License Agreemenf or TLA - refers to a privilege granted by 
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the State to a person to utilize forest resources within a forestland with 
the right 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. 
xx. Trade - means the act of engaging in the exchange, purchase or sale 
of forest products locally or internationally. 
yy. Watershed - is a land area drained by a stream or a fixed body of 
water and its tributaries having a common outlet for surface runoff. 
zz. Watershed Reservation - refers to a forestland defined in this Act and 
those that have been proclaimed by law as such, primarily fo; water 
production purposes. Other compatible uses may be allowed by the 
Secretary under the sustainable and multiple-use management 
concept. 
aaa. 
Wildlife - means wild forms and varieties of flora and fauna. 
bbb. 
Wood-Based lndusfries - refer to various industries that are 
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dependent on wood as the principal raw material including but not 
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among others. 
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CHAPTER II 
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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 as mouldings, and furniture, 
LIMITS AND CLASSIFICATION OF FORESTLANDS 


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SEC. 4. Limits of Permanenf Forestlands. - The permanent forestlands 
shall be those lands of the public domain classified and delimited pursuant to this 
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Act. 
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All, land of the public domain classified as forestlands by the Department 
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as of December 1994, under its Land Classification Program are hereby declared 
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as permanent forestlands. 
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Within twenty-four (24) months from the effectivity of this Act, the 
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Department shall submit to Congress maps of appropriate and uniform scale 
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indicating, by province, the specific limits of land already classified as permanent 
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forestlands pursuant to the immediately preceding paragraph. 
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The Department shall complete the classification of the remaining 
unclassified land of the public domain within three (3) years from the effectivity of 
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this Act. AI'I such lands which shall be classified as forestlands shall also be 
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declared as permanent forestlands upon submission by the Department of 
Congress, of the maps of said forestlands; Provided, That no lands of the public 
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domain eighteen percent (18%) or over in slope shall be classified as alienable 
and disposable lands: Provided, further however, That those forestlands with 
well-established communities duly recognized in writing under the Local 
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Government Code and RA 8371 shall be allowed to continue occupying and 
using the specific areas they present occupy and use, subject to such rules and 
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regulations the Department may provide to ensure sustainable land-use 
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management, and tenure security, and : Provided, finally, That all Department 
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records pertaining to the specific limits of forestlands shall be made available to 
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the public upon request. The Department shall furnish all provincial, municipal 
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and city government units copies of the maps of permanent forestlands located 
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within their respective territorial jurisdiction. 
SEC. 5. Additional Areas to be Included as Permanent Forest Lands. 
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- The following lands, although below eighteen percent (18%) in slope, are 
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needed for environmental ' protection and forestry purposes and shall not 
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therefore, be classified as alienable and disposable lands, nor be subject tc, 
logging, mining, quarrying, and such other form of occupancy, land use or 
resource extraction activities: 
a. 
b. 
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d. 
e. 
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g. 
h. 
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j. 
k. 
Areas less than two hundred fifty hectares (250 ha.) which are far from, 
or not contiguous with any certified alienable or disposable land; 
Isolated patches of forest of at least five hectares (5 ha.) which rocky 
terrain or which protect a spring for communal sue; 
Areas of not less than ten hectares ( I O  ha.) covered with natural forest; 
All mangroves and swamplands which are not yet classified as 
alienable and disposable lands; 
Ridge tops and plateaus regardless of size found within or surrounded 
wholly or partially by forestlands where headwaters emanate; 
Appropriately located road rights-of-way; 
Twenty-meter (20 m.) strips of land along the edge of the normal high 
waterline of rivers and streams with channels of at least five (5) meters 
wide, which are not classified as alienable and disposable; 
Strips of mangrove or swamplands at least twenty (20) meters wide, 
along the shoreline facing oceans, lakes and other bodies of water, 
and strips of lands at least twenty (20) meters wide facing lakes, which 
are not yet classified as alienable and disposable; 
Areas needed for other purposes of public interest such as national 
parks, national historic sites, game refuge and wildlife sanctuaries, 
forest station sites, research/experimentaI purposes, and others; 
Areas previously proclaimed by law as forest reserves, national parks, 
game refuge, bird sanctuaries, national shrines, national historical 
shrines, and national historic sites; 
Areas within watershed reservations; and 
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Areas 
considered 
environmentally 
critically 
because 
of 
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vulnerability to damage from typhoons, landslides, volcanic eruptions 
and natural causes. 
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Owners who have acquired vested rights over lands enumerated above 
are required to implement soil and water conservation measures 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 concerned 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: 
a. 
b. 
C. 
d. 
Failure of the owner, after due notice, to implement appropriate soil 
and water conservation; 
Failure of the owners to comply with ECC requirements; 
The issuance of titles or other tenurial instruments over such areas 
was accomplished through fraud, deceit, misrepresentation or other 
anomalies; and 
When public interest so requires. 
SEC. 6. Non-Diminution of the Specific Limits of Forestlands. - The 
specific limits of the permanent forestlands as determined in accordance with 
Section 4 and 5 of this Act shall not be altered except by an Act of Congress. 
SEC. 7. Delineation of Boundaries of Forestlands. - The Department 
shall within three (3) years up.on the effectivity of this Act delineate on the ground. 
the boundaries between the permanent forestlands and alienable or disposable 
lands with concrete monuments, road 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. 
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SEC. 8. Sub-classification of the Forest Land - The Department shall 
have the authority to sub-classify the permanent forestlands into the following 
categories according to primary use: 
a. Protection forests - all areas within the forestlands designated or set 
aside as protected areas pursuant to the NIPAS Act shall constitute the 
protection forest. All mossy and old growth forests shall also be 
classified as protection forests. The establishment and management of 
protection forests shall be in accordance with the said NIPAS Act. 
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b. Production forests - all permanent forestland not classified as 
protection forest pursuant to the immediately 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 I, Section 3, 
paragraph (ff) hereof. The management of production forests shall be 
in accordance with a management plan based on sustainable for 
management principles and approved by the Department. 
In the implementation of sub-classification, the Department shall consult 
with the 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 Foresflands. - 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 Units and other government 
agencies pursuant to Section 10 and 11 hereof, shall ensure that forestlands and 
unclassified lands of the public domain are managed, conserved, developed, 
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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. 7160, 
otherwise known as the Local Government Code, the Local Government Units 
(LGU) shall faithfully share the responsibility in the sustainable management and 
utilization of forest resources within their territorial jurisdiction including those 
assigned by law under the administration of other government agencies as 
defined 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 have equitable share of the revenues derived 
from 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 (I) 
year from the passage of this Act, formulate a 
joint strategy and program to implement the provision 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. 
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SEC. 1 I. Forestlands Under Other Governmenf Agencies. - 
Forestlands and or portions 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’ 
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remain under the administration and management of these government 
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agencies. These agencies shall be responsible for their protection, rehabilitation 
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and conservation. These forestlands shall be administered in accordance with a 
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forest management plan, which shall be prepared within one year from the 
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effectivity of this Act, in coordination with the Department, LGUs, local 
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communities and organization. Provided, That the Department and the 
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concerned LGU and the concerned government agency shall periodically review 
and 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 representative shall have visitorial and 
supervisory powers over forestlands placed under the administration and 
management of other government agencies. Provided, fiqally, 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 been constituted, or in the event of failure of the agency concerned to 
rehabilitate, protect, and conserve he forestland resources in accordance with 
the approved management plan. The Department shall determine the use of the 
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reverted forestlands. 
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SEC. 12. Forest Resources Within Alienable and Disposable Lands. - 
The Department shall encouraged 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 forests with the Department and shall be 
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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. 
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CHAPTER 
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SUSTAINABLE MANAGEMENT OF FOREST RESOURCES 
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SEC. 
13. Sustainable Foresf Management 
Planning. - The 
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Department, in consultation and coordination with local government units and 
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other concerned sectors such as but not limited to other government agencies, 
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local communities, non-government organization, individual and corporate private 
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investors and other sectors, shall adopt and implement a sustainable forest 
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management plan for each well-defined watershed or other appropriate forest 
management unit. Within one (I) 
year from the effectivity of this Act, the 
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Department shall prepare a Sustainable Forest Management Strategy (SFMS) 
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that will guide the preparation of site-specific forest management plans based on 
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criteria, indicators and standards (minimum requirements) for sustainable forest 
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management. The SFMS shall, at the minimum, address the following 
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a. promotion of rational allocation of forestland uses and land use 
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practices that increase productivity, and conserve soil, water and other 
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forestland resources; 
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b. protection of existing forest resources and conservation of bio-. 
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diversity; 
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c. rehabilitation of denuded areas to expand the forest resource base, 
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thereby promoting agricultural development and other food production 
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activities; 
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d. enhancement of the socioeconomic well-being of local communities 
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including indigenous peoples who are largely dependent of the forest 
for their livelihood; 
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e. observance of stakeholder participation through consultation between 
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and among the Department, local government units, other national 
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agencies, and civil society in the sustainable management of forest 
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lands; 
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f. adoption of Community-based forest management as the principal 
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strategy in the management of forest land and resources, and the 
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formulation of incentives designed to promote sustainable forest 
management pursuant to this strategy; 
g. formulation of incentives designed to promote development and 
sustained profitability of the forest industry sector by private sector 
investors operating either independently or in collaboration with forest- 
based communities; 
h. integration of forest management plans with the local land use and 
development plans; and 
i. adoption of an effective system for monitoring forest management and 
status including optimum use of advanced technology such as, but not 
limited to, satellite imagery analysis. 
SEC. 14. Environmental Impact Assessment. - All new projects to be 
implemented in forestlands including harvesting, gazing and other special uses, 
mineral prospecting 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 state of natural forests, including forest 
occupants in each region and province, furnishing annually both Houses of 
Congress a copy of the State of the Environment report. 
CHAPTER V 
COMMUNITY-BASED FOREST MANAGEMENT 
SEC. 16. Community-Based Forest Management Strategy (CBFMS). - 
Forest communities, indigenous peoples and other communities whose lives, 
culture and general well-being are intimately linked 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 
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Department shall formulate .policies and guidelines that simplify and facilitate 
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access to and sustainable management of forestland resources by local 
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communities. The Department shall furthermore develop policies, guidelines and 
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incentives for private sector investors to enter into mutually beneficial 
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relationships with communities in the pursuit of sustainable forest management, 
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social justice and economic development particularly in the rural areas. The 
Department shall formulate policies and guidelines that simplify and facilitate 
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access to and sustainable management of forestland resources by local 
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communities. The Department shall furthermore develop policies, guidelines and 
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incentives for private sector investors to enter into mutually beneficial 
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relationships with communities in the pursuit of sustainable forest management. 
SEC. 17. Community Resources Managemenf in CBFM Areas. - The 
management of forestland resources in CBFM areas shail be embodied in a 
Community Resource Management Plan which contains the community’s vision, 
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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 from the forestland resources on a 
sustainable basis. 
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SEC. 18. Qualified Participants. - Only organized forest communities as 
defined in this Act shall be eligible 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 CBFM shall have 
the following qualifications: 
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a. Members shall be Filipino citizens; and 
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b. Members may either be: 
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1. Actually tilling portions of the area to be awarded; 
2. Traditionally utilizing the resource for all or a substantial portion 
of their livelihood; 
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3. Actually residing within or adjacent to the areas to be awarded’; 
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4. Tenured migrants as defined in R.A. 7586 
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SEC. 19. Community-Based Management Special Account. - The 
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Community-Based 
Forest 
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Management Special Account (CBFMSA) to support the implementation of the 
CBFM strategy and provide financial and professional incentives for deserving 
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communities and government personnel. The Department may source local and 
international grants and donations for the establishment of the CBFMSA. Other 
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sources of funds may later be determined by the Department subject to existing 
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government regulations. 
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SEC. 20. Creation of Financing Mechanisms for CBFM. - Creation of 
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Financing Mechanisms for CBFM - The Department, in coordination with other 
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agencies of government, shall develop measures for sustained financing to 
establish CBFM in all areas of the country. Towards this end, the Department 
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shall prioritize the following: Within six (6) months from enactment of this Act, the 
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Secretary 
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organize 
a 
committee 
composed 
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duly-authorized 
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representatives of the Development Bank of the Philippines (DBP), the Land 
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Bank of the Philippines (LBP), the Government Service Insurance System 
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(GSIS), the Social Security System (SSS), the Bankers Association of the 
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Philippines and other government and private financial institutions to formulate 
.. . 
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workable financing mechanisms and instruments to fund implementation of the 
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CBFM strategy and its sub-strategies. The committee shall elect its chairman 
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from among its members and shall, within one year from effectivity of this Act, 
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a. In recognition of the favorable impact on water quality and supply that 
can be achieve through sustainable forest management, the 
Department, 
in 
collaboration 
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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 purposes, and 
.. . 
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allocation of such fees for watershed protection. 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 of water supply that accrue to 
society at large as a result of their efforts. 
b. Within one (I) 
year from 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. 21. Areas Available for CBFM. - Subject to prior vested rights, the 
CBFMS shall be implemented on all public forestlands, ancestral domains of 
lCCs and on protected areas subject to the provisions of the NIPAS Law. CBFM 
may allowed by the Secretary in watershed reservations to promote adequate 
protection and rehabilitation provided that land-use practices and activities would 
not induce severe soil erosion and surface run-off. 
SEC. 22. Recognition and Management of Ancestral Domains. - The 
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recognition and management of ancestral domains shall be governed by the 
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provisions of Republic Act 8371, otherwise known as the “Indigenous People’s 
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(IPS) Rights Acts of 1997.” The National Commission on Indigenous Peoples. 
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(NCIP) shall coordinate with the Department in providing assistance to the 
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indigenous peoples in the sustainable management of forest resources within 
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ancestral lands and domains. 
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CHAPTER VI 
2 
REFORESTATION PROGRAM 
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SEC. 23. Reforestation in Forestland. - Reforestation in Forestland - 
Consistent with Section 13 hereof, the Department, in coordination with local 
government units (LGUs), other government agencies, NGOs, local residents 
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and communities shall identify and prioritize forest lands to be reforested 
pursuant to the definition contained in Chapter I, Section 3, paragraph (nn) 
hereof and consistent with the land use of the LGUs. 
a. In each prioritize area, whether at the city, municipal or provincial level, 
the Department, in coordination with the concerned LGU, shall design 
.. . 
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an accelerated reforestation program designed to accomplish 
reforestation on a least fifty percent (50%) of the prioritized area within 
five (5) years and eight percent (80%) of the area within ten (10) years 
from effectivity of this Act. 
b. ,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. 
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target areas. 
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SEC. 24. Developrnenf of Profecfion Foresfs. - In the identification of 
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target areas pursuant to Section 22 above, the Department shall prioritize 
c. In its annual budget submission to the Legislature, the Department 
shall include budgetary allocations in the General Appropriations Act in 
adequate amounts to effectively accomplish reforestation of prioritized 
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establishment of tree cover, other diversified perennial vegetation and 
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accompanying soil and water conservation measures on lands that have a direct 
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impact on water supply and quality, bio-diversity and environmental protection, 
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with special emphasis on lands covered by the NIPAS Act. 
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a. Pursuant to the sound principles of ecological succession, and to 
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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. 
b. Measures which harmonize human occupation and environmental 
protection shall be included in the development of protection forests 
including land terracing, establishment of vegetative hedgerows on 
contours, planting of fruit trees, bamboo and the like. 
SEC. 25. Development of Producfion Forests. - Reforestation 
strategies shall emphasize, prioritize and encourage the development of under-* 
utilized private land to eventually supply the major potion of timber, bamboo, 
rattan and other forest products needed to satisfy local demand and take 
optimum advantage of export opportunities. 
a. Towards this, end, the Department shall provide free technical 
assistance to landowners who wish to implement reforestation on their 
private lands. 
b. All trees and other forest products grown on private lands shall be 
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 he/she sees fit. No forest charges, environmental fees or 
similar levies shall be imposed by national government agencies 
and/or 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 owners shall be entitled to the incentives provided 
under Section 26, subsections (a), (b), (c), (d) and (e) hereof. 
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c. In addition to private land, the development of production forests on 
government land (i.e. forestlands) shall also be encouraged by way of 
long-term lease and other mechanisms formulated by the Department 
and consistent with the provisions of the Constitution and relevant 
legislation. The Department, in coordination with potential investors, 
shall identify denuded areas for development of production forests on 
government lands. 
d. The conversion of natural forests on government land to plantations or 
other land use shall be totally banned for a period of thirty (30) years 
from effectivity of this Act. 
SEC. 26. Reforestation or €sfab/ishrnenf of Forest Plantation in 
Forest Lands Under Other Government Agencies. - Other government 
agencies and institutions having jurisdiction over forestlands as provided under 
Section 10 and I 1  of this Act shall be responsible for the reforestation 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 
agencies/institutions shall formulate management plans for their areas, indicating 
therein the sites identified for reforestation, and sites 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 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 
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agencies. 
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SEC. 27. Incenfives. - To encourage qualified persons to engage in 
forest 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 
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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 the 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 plantations; 
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e. Upon the premature termination of agreement at no fault of the holder, 
all depreciable including the planted, standing trees and other forest 
crops introduced and to be retained in the area shall be properly’ 
valuated and the holder 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 party; 
f. 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 the intention to terminate and allows them to 
present their objections, comments or other relevant information; and 
g. The agreement holder has the right to transfer, contract, sell or convey 
his rights to any qualified person. 
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The Secretary of the Department may provide or recommend to .the 
President, other incentives in addition to those granted under this Section to 
promote reforestation and establishment of forest plantations. 
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SEC. 28. Voluntary Offer to Reforest - Private landowners, whether 
natural or juridical persons may participate in reforestation and plantation 
development or similar programs of the Department, with the landowner 
contributing his land and the Department furnishing funds to reforest the area; 
Provided, That the property shall be exclusively devoted to the planting of forest 
species for at least one (I) 
rotation, which undertaking shall be annotated at the 
back of the title of the property. 
SEC. 29. Establishment of City or Municipal Parks or Foresfs. - 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 provision. 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. 30. Esfablishmenf of Tree Parks in Subdivision and Providing 
Tree Planfing 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. Guidelines for the establishment of 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 tree and/or perennial shrubs along the road/highway, and 
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establishment of roadside parks-cum-rest areas planted to trees and/or perennial 
shrubs every fifty (50) kilometers along the roadlhighway, and shall provide 
adequate funds for this purpose in the respective budget for road/highway 
construction. 
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 < 
CHAPTER VI1 
FOREST PROTECTION 
SEC. 31. 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 (30) years from the effectivity of this Act, and the issuance of 
licenses, permits or agreements to harvest timber from natural forests in 
forestlands is hereby prohibited, except as provided under Section 33, hereof. 
Existing timber license agreement, licenses 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 forests may be 
allowed subject to rules and regulations prescribed by the Department. 
SEC. 32. Exemptions. - 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 resource and the like shall be allowed subject to the 
issuance of an Environmental Compliance Certificate by the Secretary of the 
.
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Department. 
SEC. 33. 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 as well as other reforestation 
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programs for a period of four (4) years from the effectivity 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. 34. Assisfance of Law Enforcement Agencies. - The Department 
shall deputize law enforcement agencies and instrumentalities 
of ‘the 
Government, including, but not limited to, the Philippine National Police (PNP), 
the Armed Forces of the Philippines (AFP) and the National Bureau of 
Investigation (NBI), for the enforcement of the logging ban and for 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 crate a special forest law 
enforcement unit through a process jointly designed by the DND and the 
Department and composed of members recruited from the major service 
commands of the AFP. 
The special unit, jointly supervised by the DND and the DENR, shall 
provide effective protection of the country’s forestlands, including Protected 
Areas and areas which shall 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. 
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The Secretary of Justice shall permanently designate a special prosecutor 
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in every city. and province to immediately file charges against forest violators and 
26 
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ensure their speedy prosecution. He shall promulgate the necessary rules and 
regulations to expedite the prosecution of offenses committed under this Act. 
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SEC. 35. Role of Local Residents. - Qualified local residents may be 
. 
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deputized by the Department to assist in the protection of forests against illegal 
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loggers, poachers, kaingeros and land speculators. They shall likewise be given 
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the authority to arrest forest violators within their communities, subject to existing 
laws and regulations on arrest and detention, 
SEC. 36. Prevention of Foresf Fires and Control of Foresf 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 or individuals who 
participate actively in fire prevention and control to reduce damage to forest 
resources. 
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The Department shalj formulate and implement an integrated pest and 
diseases 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. 37. lnformafion and Reward Sysfem. - The Department shall 
establish an information 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%) of 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 
24 
FORESTRY RESEARCH, EDUCATION 
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TRAINING AND EXTENSION 
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SEC. 3%. Research and Technology Development and Transfer. - 
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Research 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 Unive.rsities. 
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shall within one (I) year from the passage of this Act, prepare a research and 
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technology 
development 
and 
transfer 
agenda 
for 
sustainable 
forest 
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management, which shall be implemented, monitored, and reviewed in 
4 
accordance with existing research management systems. Provided, That 
5 
adequate and sustainable funds for research and technology development and 
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transfer shall be provided under the General Appropriations Act. 
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SEC. 39. Forestry Extension Service. - Within one (I) year from 
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effectivity of this Act, Department shall formulate a program for development of 
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an effective forestry extension service and include funds and plantilla for the 
same in its annual budget submission to Congress for inclusion in the General 
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Appropriation Act. This program shall be revised and updated as needed to 
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ensure Department capability to provide competent extension services to all 
sectors involved or intending to participate in reforestation and other forest 
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management activities on forestlands or privately-owned lands. 
15 
The Department, through its forestry extension service, shall also develop 
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a program to encourage land owners, especially those with lands above 18% 
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slope, to forest their properties 
18 
SEC.40. National Public Information, Educafion and Advocacy 
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20 
Campaign. - The Department, the Philippine Information Agency (PIA), the 
Department of Education, Culture and Sports (DECS), State Universities and 
21 
Colleges, Private Universities and ,:Colleges, with support from LGUs, NGOs, 
22 
media and other organizations, shall formulate and implement a sustained, 
23 
nationwide, public information and advocacy campaign for forest and natural 
24 
resources conservation and sustainable development. The DECS with the 
2s 
assistance of the Department and the College of Forestry departments of State 
26 
Universities and Colleges, shall formulate curricula for forest and natural 
27 
resources conservation, which the DECS will prescribe for inclusion in the 
28 
curricula for elementary and high school education. Congress shall allocate funds 
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for the purpose of supporting a systematic campaign to promote community 
ecological awareness throughout the country. 
SEC. 41. Formal Foresfry Educafion. - The Commission on Higher 
Education and Development (CHED) in collaboration with the Department, Board 
of Foresters of the Professional Regulations Commission (PRC) and duly 
accredited Forestry Professional organizations, s ha1 I 
actively pursue the 
rationalization of formal forestry education to ensure high quality manpower 
output to meet the needs of the forestry sector. 
SEC. 43. Confinuing Education in Foresfry. - A non-formal program of 
continuing education shall be established to maintain the growth of the forestry 
professional. The Board of Foresters of the Professional Regulations 
Commission (PRC) and the Civil Service Commission (CSC) shall provide the 
guidelines for a continuing education program in forestry. The Department by 
itself or in cooperation with academic institutions shall develop the infrastructures 
to institutionalize non-formal continuing education for the forestry sector. 
4
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SEC. 43. Esfablishment of Training Cenfer. - The Department shall 
establish and institutionalize a network of training centers in strategic 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, efficiently and effectively. 
SEC. 44. Foresfry Developmenf Center. - The Forestry Development 
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29 
Center (FDC) based in the College of Forestry, University of the Philippines at 
Los BaAos, established under Presidential Decree 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 function 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 
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evaluation of proposed and existing policies on forestry and natural resources 
management. As such, the FDC shall submit a quarterly written/formal report to 
the Secretary on policy research and development, formulation, review and 
evaluation of proposals and existing policies. To enable the Center to carry out 
its mandated functions, the Department shall provide financial support to the 
Center based on an approved program of activities, and 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 
DISPOSITION AND UTILIZATION OF 
FOREST RESOURCES 
SEC. 44. Modes 
of Forest Management Agreement. - The 
development, utilization and management of forest resources on forestlands shall 
be under the full control and supervision 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. 
priohy in the grant of said agreements; Provided, further, That all applications 
must be acted upon within a period of six (6) months. Failure to do so would be 
grounds for the filing of the appropriate administrative or criminal charges against 
the officer tasked to carry out the said function. Such agreements shall have a 
duration of twenty-five (25) years, renewable for another twenty-five (25) years 
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interest so requires. 
27 
Current holders of existing and valid licenses, contracts or agreements 
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granted by the government for the development, management and utilization of 
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forest resources may be allowed to continue under the same terms and 
33 
under such terms and conditions as may be provided by the Secretary; Provided, 
That such agreements may not be terminated except for cause or when public 
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conditions until expiry of such license/contracts/agreements or the same may be 
converted into any other mode authorized under this Act and consistent with 
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SEC. 46. Transfer. - No holder 
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guidelines promulgated by the Departmenb; Provided, That no such conversion 
of a co-production, joint venture or 
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will be allowed in protection forests as defined in Section 8 of this Act. The 
Department is hereby authorized to formul I 
te rules and regulations covering the 
relevant terms and conditions thereof. 
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production sharing ag reemen t or con tract 4 
hall su b-contract, transfer, exchange, 
sell or convey the same or any of his/der rights or interests therein without 
authority form the Secretary, and any such bhange of rightshnterests shall remain 
valid for the remaining unexpired term df the original agreement, subject to 
compliance with the terms and condition$ thereof. Provided, That no transfer 
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shall be authorized unless the agreement br contract has been in existence and 
active for at least three years: Provided, fuhher, That the transferor has faithfully 
complied with the terms and conditions 01 the said agreement or contract; the 
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transferee bas all the qualifications and none of the disqualifications to hold the 
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same; and the transferee shall assume all !he obligations of the transferor. 
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SEC. 47. Non-Timber Forest P(oducts. - Rattan, bamboos, vines, 
19 
herbs, exudates and other non-timber for,,st products are integral parts of the 
20 
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forest ecosystem. The planting and sustainable management of non-timber 
producing species shall be encouraged! and supported. The developm.ent, 
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management and utilization of non-timbel forest products shall be allowed in 
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accordance with the guidelines to be ljromulgated by DENR. However, in 
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granting permits to harvest or utilize non:timber forest products in the natural 
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forests, priority shall be given to local codmunities or indigenous peoples living 
26 
nearest the subject forestlands. 
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SEC. 48. Grazing. - The Department shall identify areas in the production 
28 
forest land suitable for grazing purposes.i However, no forestland fifty percent 
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(50%) in slope or over may be utilized for g'razing purposes. 
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a. Identified grazing land shall be turned over to the Department of 
Agriculture (DA) which shall be responsible for licensing utilization of 
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the same through lease or other appropriate arrangement by private 
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investors, and shall furthermore be responsible for supervising 
development and management of such lands for livestock production 
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purposes; 
b. Within six (6) months from effectivity of this Act, the Department, in 
collaboration with the DA shall formulate and promulgate guidelines for 
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the utilization, development and management of grazing lands 
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including, but not limited to, prescriptions for pasture improvement, soil 
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and water conservation, reforestation of lands over fifty percent slope 
and other relevant activities designed to ensure environmentally-sound 
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management; 
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c. Within one (1) year from effectivity of this Act, the DA in consultation 
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with the Department and revenue collection agencies of the 
15 
government, shall formulate and promulgate guidelines and criteria for 
16 
establishing fees and charges covering utilization of grazing lands, the 
17 
amounts of which shall be commensurate with a fair value due to 
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government but not less than one hundred fifty pesos (P150.00) 
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annually per hectare; 
d. Existing 
pasture 
lease agreementdforest land grazing 
lease 
21 
agreements shall be allowed to continue under the current terms and 
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conditions for the unexpired term subject to compliance guidelines 
promulgated pursuant to paragraph (b.) above; 
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e. The DA shall not issue any new permit, lease, or contract, nor such 
25 
existing agreements be allowed to continue on grazing lands if not 
covered by the EIS and an ECC; 
f. Within one (1) year from effectivity of this Act, the DA, in collaboration 
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with the Department shall conduct and complete a review of 
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performance of existing pasture lease/forestland grazing lease 
agreementdpermits and cancel all such agreement/permits which are 
inactive or not in compliance with terms and conditions set forth in 
such agreements/permits; and 
g. Forestlands that are the subject of cancellation shall be returned to the 
Department for rehabilitation protection and conservation. 
SEC. 49. Mining and Power Generation Operations 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 Certificate 
(ECC). 
SEC. 50. Roads and other infrastructure. - Roads and other 
infrastructure inside forestlands shall be constructed with the least impairment to 
the resource values 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 Section 50 of this Act, may be allowed to 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 permittees, licensees, 
24 
lessees shall belong to the State, and their use and administration shall be 
25 
transferred to the government upon termination of the agreement. 
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CHAPTER X 
FOREST -BASED INDUSTRIES 
38 
SEC. 51. Establishment and Operation of Forest-Based Industries. - 
29 
It shall be the policy of the State to assure the availability and sustainability of the 
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country’s forest resources through judicious use and systematic restoration or 
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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 equitable access to forest resources. The State shall 
promote the establishment, operation and development of forest-based 
industries: Provided, That the Department shall regulate the establishment and 
operation of processing plants or mills for forest products. To achieve this policy 
statement, incentives shall be provided to forest-based industries. 
SEC. 52. lncenfives ‘for Foresf-Based Indusfries. - ‘To enable fooiestl 
based industries to be efficient, competitive and economically viable, the 
following incentives shall be granted in addition to those already provided by 
existing laws: 
a. 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 permits: Provided, That permits of processing plants owned or 
operated by holders of forest management agreements or contracts 
shall be co-terminus with the expiry of said agreements or contracts; 
b. The Department shall provide incentives for the processing of lesser 
used and non-wood species, and all logging and wood processing 
wastes; 
c. The Department shall, within one (1) year from the effectivity of this 
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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; 
d. The Department shall promote and strengthen the linkages between 
corporate and community-based industries; and 
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e. The Department may provide other incentives to forest-based 
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industries as may be necessary. 
SEC. 53. Export and Sale of Timber Products. - Finished and semi- 
4 finished lumber products, wood manufactures and other finished wood products 
5 
derived from local and imported logs and planted species shall be allowed for 
G 
export. However, logs and unprocessed wood of naturally-grown species of 
7 
whatever dimensions cut, gathered or removed from natural forests in forestlands 
8 
shall not be exported. 
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Exportation of logs, lumber and other finished products from plantations 
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shall be allowed pursuant to such guidelines that the Department may 
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promulgate. Furthermore, no restrictions, rules and regulations shall be imposed 
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to prevent the export of timber and other forest products derived from plantations 
established o privately owned lands. 
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No person shall sell or offer for sale any log, lumber, plywood or other 
15 
manufactured wood products in the international or domestic market unless 
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he/she complies with the grading rules and standards, or any act of falsification 
of the volume of logs, lumber, or other forest products in the international or 
18 
domestic market shall be sufficient cause for cancellation of export license, wood 
19 
processing permit, or other license or permit authorizing the manufacture or sale 
20 
of such products. 
21 
SEC. 54. Importation of Logs and Other Forest and Wood Products. - 
22 
Logs, lumber and other forest and wood based products may be imported subject 
23 
to the tariff schedules and/or rules and regulations promulgated by the 
24 
government. 
25 
CHAPTER XI 
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27 
SEC. 55. Fees and Rentals for fhe Utilizafion, Exploifation, 
28 
Occupation, Possession of and Activities Within Forestlands. - The 
29 
Department shall prescribe appropriate fees and rentals for the different kinds of 
38 
FOREST CHARGES, FEES AND RENTALS 
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utilization, exploitation, occupation, possession of, or activities within forestlands. 
Likewise, fees shall be collected for the filing and processing of application 
3 
thereof as well as the issuance and renewal of license, permits and agreements. 
4 
5 
SEC. 56. Forest Charges. - Forest charges shall be collected on forest 
products in accordance with the provisions of Republic Act No. 7161. The 
6 
Department shall develop guidelines for the assessment and collection of forest 
7 
charges. 
8 
SEC. 57. Fees for Administrative Services Rendered by the 
9 
Department. - Fees shall be collected for various administrative services 
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rendered by personnel of the Department in connection with their duties and 
1 1  
responsibilities as may be requested by interested parties, including but not 
12 
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CHAPTER XI1 
14 
APPROPRIATIONS AND FINANCING SUPPORT 
limited, to surveying, mapping and other similar service activities. 
15 
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SEC. 58. Appropriafions. - The amount necessary to carry out the 
provisions of this Act shall be included in the General Appropriations Act of the 
. .  . 
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IS 
year following its enactment into law and thereafter. 
SEC. 59. Funding. - In its budget preparation, the Department and the 
19 
local government units shall allot adequate funds to effectively implement 
20 
(CBFM) targets and shall ensure the inclusion of such budgetary allocations in 
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the annual General Appropriations Act. 
SEC. 60. Sustainable Forestry Development Fund. - In order to provide 
sustainable funds for forestry development and protection activities such as 
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sustainable forestry, development fund. 
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 from sales 
and confiscated forest products including conveyances, fines and penalties and 
administrative charges shall be collected and set aside for the buildup of 
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The Department, through the Forest Management Bureau (FMB), in 
coordination with LGUs, NGOs, POs and government financial institutions shall 
create mechanism to manage the Sustainable Forestry Development Fund. 
CHAPTER XIII. 
CRIMINAL OFFENSES AND PENALTIES 
SEC. 61. Harvesting, Gathering and/or Collecting Timber or Other 
Forest froducts 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 from the Secretary or 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 and/or a fine equivalent to ten times the value of the said forest 
products but not less than fifty thousand pesos (P50,OOO): Provided, that in case 
of partnership, associations or corporation, the president, managing partner, and 
general manager shall be liable, and if such officers 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 
‘ I  . 
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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, implement, work animals and tools used in connection 
with this violation shall be seized and confiscated in favor of the government. 
24 
SEC. 62. Illegal Cutting as an Act of Economics Sabotage. - If any 
25 
acts enumerated in the preceding section have been committed by an armed 
26 
group or organized group through conspiracy, threat, fraud or deceit the 
27 
gathering, collecting or removing timber or other forest products from any 
28 
forestland or alienable and disposable public land without any authority from the 
29 
Secretary, or possession of timber or other forest products without the pertinent 
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required legal documents shall be considered as an act of economic sabotage 
and shall be punishable by reclusion perpetua. 
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SEC. 63. Use of Illegally Cut Timber in Government Infrastructure 
Projects. - Contractors of government infrastructure are required to obtain 
certification from the Department that the lumbers used were form legitimate 
sources. Use of illegally cut timber in government infrastructure projects is 
prohibited and shall be sufficient cause for withholding of the payment of the 
contractor. Further, the contractor may be subject to the penalties provided under 
Section 72 hereof. 
SEC. 64. Damage to Residual Tress. - To ensure the sustainability of 
the forest, adequate number of residual trees shall be marked to form part of the 
managed forest and as the future timber crop before any harvesting operations 
commence. Any marked residual tree that is damaged is subject to a fine 
14 
15 
SEC. 
65. Grazing Livestock on Forestland Without a Permit. - 
equivalent to four times the regular forest charges. 
16 
Imprisonment for not less than two (2) years nor more than four (4) years and a 
17 
fine equivalent to ten times the regular rentals due in addition to confiscation of 
I S  
such livestock and all improvement introduced in the area in favor of the 
19 
government shall be imposed on any person who shall, without authority under a 
20 
lease or permit, graze or cause to graze livestock in forestlands, grazing lands 
21 
and alienable and disposable lands, which have not yet been disposed of in 
22 
accordance with the Public Land Act: Provided, that in case the offender is a 
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corporation, partnership, or association, the offer or director thereof who directly 
caused such shall be liable. In case the offender is a public officer or employee, 
25 
he shall, in addition to the above penalties, be deemed automatically dismissed 
26 
from office and permanently disqualified from holding any elective or appointive 
27 
position in the government service. 
28 
SEC. 66. Unlawful Occupation or Destructive of Forestlands. - any 
29 
person who enters, occupies or possesses or makes kaingin for his own private 
41 


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us or for others, in any forestland, or .grazing land without authority from the 
2 
Secretary, or in any manner destroys such forestland or part thereof, or causes 
3 
any damage to the forests found therein, or assists, aids or abets any other 
4 
person to do so, or sets a fire, or negligently permits a fire to be set in any 
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forestland, be punished an amount of not less than Twenty Thousand Pesos 
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(P20,OOO.OO) nor more tdan one hundred thousand pesos (P100,OOO.OO) and 
7 
imprisonment of not less than two (2) years nor more than twelve (12) years and 
8 
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a fine equivalent to eight times the regular forest charges due on the forest 
products destroyed withou’t prejudice to payment of the full costs of rehabilitation 
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of the occupied areas as 3etermined by the Department: Provided further, That 
the maximum penalty prescribed herein shall be imposed upon an offender who 
repeats the same offense for the third time or oftener. In all cases, the court shall 
further order the eviction of the offender form the land and the forfeiture to the 
government of all improvements made and all vehicles, domestic animals and 
equipment of any kind used in the commission of the offense. If not suitable for 
use by the Department, said vehicles, domestic animals and equipment and 
improvements shall be sold at public auction, the proceeds from 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 from office and permanently disqualified from 
2 I 
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holding any elective or appointive position in the government service. 
If the offender is an alien, he shall be deported after service of 
23 
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sentence and payment of fines without any further proceedings. 
SEC. 68. ///legal Acfs on Wi/d/ife. - It shall be unlawful’ for any person to 
25 
collect, catch possess, hunt, wound, kill, capture, or destroy the nest or eggs, 
26 
host plants, trade, display or keep in petshops, flowershops, orchidariums, 
27 
nurseries, and the like, threatened wildlife, its by-products or derivatives or 
28 
destroy the habitats of wildlife, including those designated as critical habitats. 
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Any person violating this provisions shall be punished by imprisonment of six (6) 
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years and one (1) day to twelve (12) years and a fine of One Million Pesos 
(PI ,000,000.00) for species listed under Cites I ;  Seven hundred fifty thousand 
pesos (P750,OOO.OO) for species listed under CITES II; and Five hundred 
thousand pesos (P500,OOO.OO) for threatened species. 
A criminal action for violation of this provision shall not bar the institution of 
a civil action for damages which may proceed independently. 
All wildlife and its deriyatives or by-products, and all paraphernalia., tool3 
and conveyances used in connection with violations of this provision 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 from holding any elective or appointive position in 
the government service. If the offender is an alien, he/she shall be deported after 
service of and payment of fines without any further proceedings. 
SEC, 69, Misdeclaration, falsification of Forest Resource Inventory, 
Scaling, Surveys and Reports by Government Official or Employee. - Any 
public officer or employee who knowingly misdeclares or falsifies forest resource 
inventory, scaling, surveys and other similar reports which are contrary to the 
criteria and standards established in this Act or the rules and regulations 
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promulgated hereunder shall, after an appropriate administrative proceedings, be 
dismissed from the service and permanently disqualified from 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 nor more than twelve (12) years and a fine of not less 
than Twenty thousand pesos (P20,OOO.OO) nor more than One hundred thousand 
26 
27 
pesos (1 00,000.00). Furthermore, the subject inventory, survey, classification or 
report shall be null and void. 
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SEC. 70. Unlawful Operation of Processing Plants or Mills. Any 
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person operating a processing plant or mill without authority from the Secretary 
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of his duly authorized representative, shall be punished by a fine of not less than 
One hundred thousand pesos (PI 00,000.00) and confiscation of the equipment 
and other paraphernalia in favor of the government. 
SEC. 71. Prohibition on Issuance of Tax Declaration of Forestlands. - 
Any public officer or employee who shall issue a tax declaration for any purpose 
of forestland, shall suffer imprisonment for a period of not less than four (4) years 
nor 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. 
SEC. 72. Unlawful Possession of Implements and Devices U3ed by 
Forest Officers. - Unlawful possession of official implements and devices used 
by forest officers, such as but not limited to marking hatchets, shall be penalized 
with imprisonment of 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 (P100,000.00). In addition, the said forest officer 
responsible for faithful possession and use of such implement/device shall be 
dismissed form the service, with prejudice to reinstatement and with perpetual 
disqualification from holding any elective of appointive position. 
SEC. 73. Unauthorized Introduction of Logging Tools and Equipment 
Inside 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 tools without prior authority 
from the Secretary of his duly authorized representative. Any person found guilty 
24 
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of illegal possession of said chainsaw, logging tools or equipment shall be liable 
to imprisonment of twelve (12) years and one ( 4 )  day to fourteen (14) years and 
eight (8) months or fixed not less than Fifty thousand pesos (P50,OOO.OO) nor 
more than One hundred thousand pesos (PlOO,OOO.OO) or both, and confiscation 
of said logging tools and equipment. 
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SEC. 74. Non-payment and Non-Remittance of Forest Charges, - Any 
person who fails to pay the amount due and 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 a ground for 
the confiscation of the said forest product is favor of the government, pursuant to 
Section 60 of this Act. Any person who fails or refuses to remit to the proper 
authorities said forest charges collectible pursuant to the provisions of this Act or 
the National Internal Revenue Code, as amended, or who delays, obstructs or 
prevent 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 imprisonment for not less than six (6) years nor 
more than ten ( I O )  years and be fined from twenty thousand pesos (P20,OOO.OO) 
to one hundred thousand pesos (100,000.00). If the offender is a government 
official or employee, he/she shall, in addition, be dismissed from service, 
permanently disqualified from employment or reinstatement and perpetually 
disqualified from holding any elective or appointive office. If the offender is a 
corporation, partnership or association, the officers and directors thereof shall be 
liable. 
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SEC, 75. Institution of Criminal Actions by Forest Officers. - A forest 
officer shall arrest even without warrant any person who has committed or is 
about to commit, or is committing in his presence any of the offenses defined in 
this chapter. He/she shall also seize and confiscate, in favor of the government, 
the tools, equipment and conveyances used in committing the offense, and the 
24 
forest products cut, gathered, taken or possessed by the offender in the process 
25 
of committing the offense. The arresting forest officer shall thereafter deliver 
25 
within six (6) hours from time of arrest or seizure, the offender and the 
27 
confiscated forest products, conveyances, tools and equipment, or the 
28 
documents pertaining to the same, and file the proper complaint with the 
29 
appropriate official designate'd by law to conduct preliminary investigation and file 
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1 
information in court. If the arrest and seizure are made in the forest. far from 
authorities designated by law to conduct preliminary investigations, the delivery 
2 
to and filing of the complaint with the latter shall be done within a reasonable time 
3 
sufficient for ordinary travel from the place of arrest to the place of delivery. The 
4 
seized products materials, conveyances, tools and equipment shall be disposed 
5 
of in accordance with the regulations promulgated by the Department. The 
6 
Secretary may deputize any agency, barangay or barrio official or any qualified 
7 
person to protect the forest and exercise the powers or authority provided for in 
8 
the preceding paragraph. In the case of reports and complaints regarding the 
9 
commission of any of the offenses defined in this chapter not committed in the 
IO 
presence of any forest officer or any of the deputized officers but reported to a 
1 1  
forest officer assigned in the area where the offense was allegedly committed 
12 
and the latter shall promptly receive the evidence supporting the report or 
13 
complaint and if such evidence is found sufficient file the necessary complaint 
14 
with the appropriate official authorized by law to conduct a preliminary 
investigation of criminal cases and file an information in court. 
.. . 
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16 
SEC. 76. Liability of Confiscating Officers. - Any public officer who fails 
17 
18 
19 
20 
to produce the timber or forest products or any part thereof including tools, 
conveyances, equipment, machine and devices in his custody pursuant to a 
seizure or 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 
21 
22 
23 
Revised Penal Code. In addition, the said public officer shall be dismissed from 
service permanently disqualified from employment or reinstatement and 
perpetually disqualified from holding any elective or appointive office. 
24 
25 
CHAPTER XIV 
26 
ADMINISTRATIVE PROVISIONS 
27 
28 
SEC. 77. Strengthening of the Forest Management Bureau and the 
Forest Management Sector. - In order to effectively implement the provisions of 
29 
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I 
this Act, the Forest Management Bureau (FMB) shall be strengthened and shall 
have the following functions in addition to the functions enumerated under 
Executive Order No. 192: a) Coordinate and supervise the formulation and 
implementation of forestry policies, plans and programs; b) Lead in the 
4 
monitoring and evaluation of these policies, plans and programs and the like; and 
5 
c) Review and evaluate all applications for license, permits, joint-ventures, and 
G 
management agreements for issuance and/or approval by the Secretary of the 
7 
Department. To ensure that the scientific practice of forestry in the country is 
8 
properly implemented, only registered foresters shall be appointed to the 
9 
positions of Director and Assistant Director of the Bureau and Regional Technical 
10 
Director of the Forestry Sector and all other forester positions, in accordance with 
1 1  
existing Civil Service rules and regulations. 
12 
13 
14 
The Forest Management Bureau (FMB) shall be organized 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 
15 
16 
reorganize the Bureau and the forestry sector at the field level and create 
additional positions as may be necessary for community-based forest 
17 
management, forest protection, and other programs mandated under this Act, 
and to upgrade the salaries of foresters and other forest officers. 
.. . 
. 
18 
19 
SEC. 78. Authority of the Secretary on the Utilization of Forest 
20 
Resources. - The utilization of forest resources from natural forests found in 
21 
forestlands, alienable and disposable lands not yet awarded to private individuals 
22 
or entities, government-established reservations, and all other forestlands 
23 
including those under ancestral domain claims and control or management of 
24 
25 
26 
27 
representative. 
other government agencies, shall be prohibited except through valid license, 
permit, or other agreement approved by the Secretary or hidher duly authorized 
28 
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SEC. 79. Administrative Authority of the Secrefary of his Duly 
I
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Authorized Represenfafive to Order Confiscation. - In all cases of violations 
of this Act or other forest laws, rules and regulations, the Secretary or his duly- 
authorized representative may order the confiscation of forest products illegally 
harvested, cut gathered, removed or possessed or abandoned, and all 
conveyances used either by land, water or air as well as 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 the matter. 
If the confiscated forest products are in danger of deteriorating, 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 of the Philippines shall have jurisdiction to issue any writ of 
replevin, restraining order, or preliminary mandatory injunction in any case 
involving 01' growing out of any action by the Secretary or his duly authorized 
representative in the exercise of the foregoing administrative authority. 
SEC. 80. Administrative Authority of the Secretary to Impose Fines. - 
In all cases of violations, forest officers of other government officials or 
employees duly authorized by the Secretary, shall have free entry into areas 
covered byd a contract, agreement, license, lease or permit. Forest officers .are 
authorized to inspect and open closed vans suspected to contain illegally 
harvested, collected or transported forest products, provided this is done in the 
24 
presence of the shipper or consignee or two (2) responsible public officials in the 
25 
locality. Forest Officers are authorized to administer oath, take acknowledgement 
26 
in official matters connected with the functions of their office, take testimony in 
27 
offcial investigations conducted under the authority of this Act and the 
28 
implementing rules and regulations issued pursuant thereof. 
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SEC. 82. Visitorial Powers. - The Secretary or his duly authorized 
representative shall, from time to time, investigate, inspect and examine records, 
and other documents except bank records related to the operation of any person 
granted the privilege 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. 83. Other Incentives. - Twenty percent (20%) of the value of 
confiscated materials shall be paid as incentives to informants including 
members of Multi-Sectoral Forest may also be donated to LGUs and other 
government agencies for building government infrastructure, in recognition of 
their participation in forest protection activities. Additional incentives may be 
provided by the Department, in addition to those provided under the Government 
Service Insurance System (GSIS) or Workmen’s Compensation Law. They shall 
also be entitled to free legal assistance should legal cases be filed against them 
in the performance of official duties. 
SEC. 84. Protection for Witnesses to Violation/s of Forestry Laws. - 
Witnesses to violations of this Act or other forestry laws and regulations, 
including the immediate family members of said witnesses, shall be given 
protection, security and benefits, subject to the provisions of Republic Act No. 
6981, otherwise known as the “Witness Protection, Security and Benefit Act” and 
its implementing rules and regulations. 
SEC. 85. Rule-Making Authority. - Implementing Rules and Regulations. 
The Secretary, within one (I) 
year from effectivity of this Act, promulgate the 
24 
25 
Act. 
rules and regulations necessary to effectively implement the .provisions ’of this 
26 
SEC. 86. Separability Clause. - Should any provision herein be declared 
27 
28 
provisions. 
unconstitutional, the same shall not effect the validity or the legality of the other 
49 


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3 
4 
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8 
9 
SEC. 87. Repealing Clause. - Subsections (b), (d), (9, (g), and (i) of 
Section 4 of Act No. 3915; Rebuplic Act No. 460; Presidential Decree Nos. 705, 
1153, 1515, 1559, 1775 and 1998; Letter of Instruction No. 818; Executive Order 
No. 277, and 278, 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. 87. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in at least two (2) national newspapers of 
general circulation. 
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Approved, 
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S O