>\ 
FOURTEENTH CONGRESS OF THE REPUBLIC }  
OF THE PHILIPPINES 
)  
Third Regular Session 
}  
SENATE 
Senate Bill No. --:--3_42 5y:> , 
.~ 
{ 
introduced by SENATOR PIA S. CAYETANO 
EXPLANATORY NOTE 
Forests play an important role in providing the country with natural resources that 
contribute to economic growth and social development. These forests also provide 
livelihood through raw materials that will be converted into finished products. 
Apart from the economic benefits, forests also serve as protection and buffer 
from natural disasters such as flood and erosions. However, due to the ecological 
disturbances brought about by the carelessness of many, lives have been lost in natural 
disasters that could have been averted if only our forests were preserved. 
For this reason, the proposed Sustainable Forest Management Act aims to 
ensure that our forests are properly managed to meet the needs of the present and 
future generations. 
The bill mandates the development of an effective and sustainable forest 
management strategy based on the allocation of forestland uses and by promoting land 
use practices that will not only be productive but will also conserve forest resources 
such as soil, lumber, and water. This forest management strategy will also work to 
protect existing forest resources, conserve our fragile biodiversity and rehabilitate 
deforested or denuded areas. It is also envisioned to promote and stimulate food 
production activities without compromising forested areas. 
This bill likewise provides for a Community-Based Forest Management Program 
(CBFMP) to be undertaken by concerned national agencies and the local government 
units. With this, indigenous people and other forest-based communities will be 
empowered to mange, develop, utilize and proteCt forest resources in a sustainable 
way. 
In view of the foregoing, immediate passage bill is earnestly requested. 
f-../;,t.JiJ 
PIA S. ~~/)eTANO 
Senator 


FOURTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
Third Regular Session 
) 
9 
SENATE 
Senate Bill No. 3425 
Introduced by SENATOR PIA S. CAYETANO 
AN ACT 
PROVIDING FOR SUSTAINABLE FOREST MANAGEMENT 
Be if enacted by the Senate and the House of Representatives of the philippines in 
Congress assembled: 
CHAPTER I 
BASIC FORESTRY POLICIES 
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SECTION 1. Short Title.- This Act shall be known as the "Sustainable Forest 
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Management (SFM) Act of 2009" 
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SEC. 2. Scope and Coverage.- The provisions of this Act shall apply to all lands 
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of the public domain classified as needed for forestry purposes and all forest resources 
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found in agricultural lands: Provided, That all forests and forest resources found in 
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protected areas established under the National Integrated Protected Areas System 
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(NIPAS) shall be sustainably managed and developed following the provisions of 
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Republic Act No. 7586 or the NIPAS Act of 1992: Provided further, That all wildlife 
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resources and critical habitats found in forestlands including agricultural lands shall be 
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governed by the provisions of Republic Act No. 9147 or the Wildlife Resources 
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Conservation and Protection Act. 
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All forestlands and forest resources therein under the administrative jurisdiction 
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of the Autonomous Region of Muslim Mindanao (ARMM) shall be managed, developed 
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and conserved in accordance with the Regional Sustainable Forest Management Act of 
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2003 of the ARMM. 
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SEC. 3. Basic Policies.- In pursuance of the provisions of the Constitution to 
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promote the general welfare and social justice in all phases of national development, to 
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protect and advance the right of the Filipino people to a balanced and healthful ecology 
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in accord with the rhythm and harmony of nature, and to conserve and develop the 
patrimony of the nation, the State hereby adopts the following policies relative to the 
management, development and conservation of forests and the resources therein: 
(a) Permanency of Forest Limits- The specific limits of forestlands shall be fixed 
and demarcated and thereafter, shall not be altered except through an Act of 
Congress; 
(b) 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; 
(c) Sustainable and integrated management, development and conservation of 
forest resources-
The guiding principle in the sustainable and integrated 
management, development, and conservation of forest resources shall be 
focusing on these resources and on the people who manage, conserve, and 
benefit from them. 
In carrying out the above policies, the following strategies shall be pursued: 
(i)  
Watershed as the basic forestland management unit- Forestlands shall be 
managed, developed and conserved utilizing watershed as the basic 
management unit and under the principles of sustainable and multiple-use 
management, including conservation of biological diversity; 
(ii)  
Forest as a functional system unit- Forest, whether for protection or 
production, is a functional ecosystem unit which could be conserved and 
used sustainably and the benefits derived from it shared equitably; 
(iii)  
Multi-sectoral participation- The participation of all sectors of society in 
sustainable forestland management, development and conservation shall 
be promoted. Equitable sharing of the benefits derived from forestlands 
and the resources therein shall be ensured at all times; 
(iv)  
Community-based forest management (CBFM) as a principal strategy-
Vesting access rights and responsibilities to forest-dependent families, 
local communities, and indigenous peoples to undertake the management 
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and development of appropriate forestland resources on a sustainable 
basis shall have precedence over other strategies; 
(v)  
Protection of forestlands and natural resources as priority concern- The 
protection of forestlands, 
especially protection forests and the natural 
resources therein shall be given priority concern in order to ensure 
environmental stability, conserve biol,ogical diversity, improve ecosystem 
functions and services, and provide ··Iong-term ecological and economic 
benefits; 
(vi)  
Reforestation as a priority measure- Reforestation shall be undertaken as 
a priority measure to rehabilitate and restore the ecosystem functions and 
services of open and/or denuded and degraded forestlands as well as 
improve the economic and ecological benefits of local communities 
concerned; 
(vii)  
Security of tenure of stakeholders- In pursuance of the principles of 
sustainable and multi-use forest management and equitable access to 
forest resources, a secured tenure shall be guaranteed to stakeholders 
concerned; 
(viii)  Professionalism in forest service- A dynamic, professional and people-
oriented forest service shall be established and fully supported by the 
government. 
SEC. 4. Definition of Terms.- As used in this Act, the following terms shall be 
defined as follows: 
(a) "Afforestation" shall refer to the planting of trees or tile artificial establishment 
of forest in areas that were not previously forested .. 
(b) "Agroforestry" shall refer to a strategy for the sustainable management of land 
. which increases their overall productivity by properly combining agricultural crops and/or 
livestock with forest crops simultaneously or sequentially through the application of 
management practices which are compatible with the local climate, topography, slope, 
soil, as well as the cultural patterns or customary laws of the local communities. 
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(c) "Agricultural Lands" shalt refer to Alienable and Disposable (A&D) lands of the 
public domain which have been delimited, classified and declared as such, pursuant to 
the provisions of Commonwealth Act No. 141, as amended, otherwise known as the 
Public Land Act. 
(d) "Ancestral Domains" shall refer to all areas generally belonging to Indigenous 
Cultural Communities/Indigenous Peoples (ICCs/IPs) comprising lands, inland waters, 
coastal areas, and natural resources therein, held under a claim of ownership, occupied 
or possessed by ICCsIIPs, themselves or through their ancestors, communally or 
individually since time immemorial, continuously to the present except when interrupted 
by war, force majeure or displacement by force, deceit, stealth or as a consequence of 
government projects or any other voluntary dealings entered into by government and 
private individuals, corporations, and which are riecessary to ensure their economic, 
social and cultural welfare. It shall include ancestral land, forests, pasture, residential, 
agricultural, and other lands individually owned whether alienable and disposable or 
otherwise, hunting grounds, burial grounds, worship areas, bodies of water, mineral and 
other natural resources, and lands which may no longer be exclusively occupied by 
ICCs/1 Ps but from which they traditionally had access to for their subsistence and 
traditional activities, particularly the home ranges of ICCs/IPs who are still nomadic 
and/or shifting cultivators, pursuant to Republic Act No. 8371 or the Indigenous Peoples 
Rights Act (IPRA) and subject to Section 56 thereof. 
(e) "Ancestral Lands" shall refer to land occupied, possessed and utilized by 
individuals, families and clans who are members ofthe ICCslIPs since time immemorial, 
by themselves or through their predecessors-in-interest, under claims of individual or 
traditional group ownership, continuously to the present except when interrupted by war, 
force majeure or displacement by force, deceit,' stealth, or as a consequence of 
government projects and other voluntary dealings entered into by government and 
private individuals/corporations, including, but not limited to, residential lots, rice 
terraces or paddies, private forests, swidden farms and tree lots, pursuant to Republic 
Act No. 8371 or the Indigenous Peoples Rights Act (IPRA) and subject to Section 56 
thereof. 
(f) "Biological Diversity or Biodiversity" shaH refer to the variability and variety 
among living organisms including, inter alia, terrestrial, marine and other aquatic 
ecosystems and the ecological complexes of which they are part. This includes diversity 
within the species (genetic diversity), between species (species diversity), and among 
ecosystems (ecosystem diversity). 
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(g) "Buffer Zones" shall refer to identified areas outside the boundaries of and 
immediately adjacent to protected areas pursuant to Section 8 of Republic Act No. 7586 
or the National Integrated Protected Areas System (NIPAS) Act that need special 
development control in order to avoid or minimize harm to the protected area. 
(h) "Climate Change" shall refer to a change in climate that can be identified by 
changes in the mean and/or variability of its properties and that persists for an extended 
period typically decades or longer, whether due to natural variability or as a result of 
human activity; 
(i) "Commercial Logging" shall refer to the cutting or felling of trees for the 
purpose of disposing the cut or felled logs for monetary profits beyond survival and 
livelihood means. 
U) "Communal Forest" shall refer to a tract of forestland set aside and 
established for and under the protection, administration, and management of a city, 
municipality, or barangay as a source of wood material for fuel, shelter, and 
manufactured products; as source of water for the community; and as an area for 
ecotourism and/or environmental protection or socio-economic projects of local 
government units consistent with the policies and objectives of this Act and principles of 
sustainable development. 
(k) "Community-Based Forest Management Strategy" shall refer to all organized 
efforts of government to work with forest-dependent families, communities and 
indigenous peoples inside and adjacent to public forestlands with the intent to empower 
them and entrust to them the protection, rehabilitation, management, conservation, and 
utilization of the forestlands and resources therein. 
(I) "Conservation" shall refer to planned protection and management of forests, 
; wildlife and other forest resources so as to prevent waste and ensure future use. 
(m) "Conveyance" shall refer to any vehicle, vessel, device or animal used in 
gathering and/or transporting forest products. 
(n) "Co-production Agreement" shall refer to an agreement entered into by and 
between a qualified person and the government, in accord with the 1987 Constitution, 
for the former to develop, utilize, and manage, consistent with the principles of 
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sustainable development, land or a portion of a forestland wherein both parties agree to 
provide inputs and share the products or their equivalent cash value. 
(0) "Criteria and Indicators" shall refer to tools used to assess the current state of 
sustainable forest management in the country and' in forest management units and to 
determine the direction of change either towards or away from SFM. 
(p) "Critical Watershed" shall refer to a drainage of a river system supporting 
existing and proposed hydroelectric power, irrigation works or existing water facilities 
needing immediate protection and rehabilitation to minimize erosion and improve water 
yield. 
(q) "Degraded Forests" shall refer to natural forests with varying degrees of 
disturbance or loss of structure, function, species, composition, and productivity. 
(r) "Degraded Forest Land" shall refer to a former forest land severely damaged 
by the excessive harvesting or wood and non-wood or non-timber forest products, poor 
forest management, repeated fires, pasture or other disturbances or land-uses that 
damage soil and vegetation to a degree that inhibits or severely delays the re­
establishment of forest after abandonment. 
(s) "Delimitation" shall refer to the establishment of permanent boundaries 
between forestlands, national parks/protected areas and agricultural lands as a result of 
demarcation. 
(t) "Delineation" shall refer to the establishment of boundaries between 
forestlands, national parks/protected areas and agricultural lands as a result of a 
conduct of site investigation, reconnaissance and field verification in accordance with 
the criteria set by the Department. 
(u) "Demarcation" shall refer to the establishment of boundaries using visible 
markers, monuments or known natural featuresllandmarks, among others, as result of 
the actual ground delineation. 
(v) "Denuded Forestlands" shall refer to forestlands that are devoid of forest tree 
cover. 
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(w) "Department" shall refer to the Department of Environment and Natural 
Resources (DENR). 
(x) "Downstream Forest Based I ndustry" shall refer to any industry other than the 
primary (wood) processing plants that uses forest products as its raw materials or inputs 
to produce higher value added forest products like furnitures, handicrafts and the like. 
(y) "Environmental Impact Assessment" or. "EIA" shall refer to the process of 
predicting the likely environmental consequences of implementing a project or 
undertaking and designing the appropriate preventive, mitigating, or enhancement 
measures. 
(z) "Environmental Compliance Certificate" or "ECC" shall refer to the document 
issued by the Department certifying that a proposed project or undertaking will not 
cause a significant negative impact on the environment; that the proponent has 
complied with all the requirements of the Environmental I rnpact Assessment System; 
and that the proponent is committed to implement its approved Environment 
Management Plan found in the Environmental Impact Statement (EIS) or mitigation 
measures identified in the Initial Environmental Examination (lEE). 
(aa) "Environmental Impact Statement System" or "EIS System" shall refer to the 
organization, administration, and procedures that have been institutionalized pursuant 
to Presidential Decree No. 1586 for purposes of assessing the significance of the 
effects of any project or undertaking on the quality of the physical, biological, and social-
economic environment and designing the appropriate mitigating and enhancement 
measures. 
(bb) "Environmentally Critical Project" shall refer to project or program that has 
high potential for significant negative environmental impact. 
(cc) "Forest" shall refer to land with tree crown cover or equivalent stocking level 
of more than ten percent (10%) and an area of more than half a hectare (0.5 ha.). The 
trees should be able to reach a minimum height of five meters (Sm.) at maturity in situ. It 
may consist either of closed forest formations where trees of various storeys and 
undergrowth cover a high proportion of the ground, or open forest formation with a 
continuous vegetation cover in which tree crown cover exceeds ten percent (10%). 
Young natural stands and all plantations established for forestry purposes which have 
yet to reach a crown density of ten percent (10%) or tree height offive meters (5 m.) are 
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included under forest, as are areas normally forming part of the forest area which are 
temporarily unstocked as a result of human intervention or natural causes but which are 
expected to revert to forest. Forests include such stand types as dipterocarp, pine, 
mossy, molave, beach, and mangrove. Pursuant to the Convention on Biological 
Diversity, forests are treated as functional ecosystem units which should be conserved, 
used sustainably, and the benefits derived from them should be shared equitably. 
(dd) "Forest Charges" shall refer to the levy imposed and collected by the 
government on naturally growing timber and other forest products cut, harvested, or 
gathered from the forestlands and from agricultural lands. 
(ee) "Forest Officer" shall refer to any public officer who by the nature of his 
appointment or the functions of the position to which he 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. 
(ff) "Forest Products" shall refer to goods and services derived from forest such 
as, but limited to, timber, lumber .veneer, plywood, fiberboard, pulpwood, bark, tree top, 
resin, gums, wood oil, honey, bees wax, nipa, rattan, or other forest growth such as 
grass, shrub and flowering plants, the associated. water, fish, game, scenic, historical, 
and educational. 
(gg) "Forest Resources" shall refer to all resources whether biomass such as 
plants and animals including its by-products and derivatives, whicll qan be a raw 
material, or non-biomass such as soil, water, scenery, as well as the intangible services 
and values present in forestlands or in other lands devoted for forest purposes. 
(hh) "Forest/Forest-Based Community" shall refer to a group of people residing 
inside or immediately adjacent to a particular forestland who are largely or partly
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dependent on the forest resources found therein for their livelihood. 
(ii) "Forest-Based Industries" shall refer to various industries that are dependent 
on raw materials or products derived from forests such as, but not limited to, wood, 
rattan, bamboo, vines, latex, resins, saps, essences, fruits, flowers, or wild flora and 
fauna. 
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aj) "Forestlands" shall refer to lands of the public domain classified as needed for 
forest purposes. They shall include all forest reserves, forest reservations and all 
remaining unclassified lands of the public domain. 
(kk) "Forestry Landscapes" shall refer to a process that aims to regain ecological 
integrity and enhance human well being in deforested or degraded forestlands. 
(II) "Grazing Land" shall refer to a portion of the public domain which has been 
set aside, in view of its topography and vegetation, .for the raising of livestock. 
(mm) "Greenhouse Gas" refers to any gas that absorbs infrared radiation in the 
atmosphere. Greenhouse gases include water vapor, carbon dioxide (C02), Methane 
(CH4). 
nitrous oxide (N20), 
halogenated fluorocarbons (HCFCs), ozone (03), 
perfluorinated carbons (PFCs) and hydrofluorocarbons (HFCs). 
(nn) "Indigenous Cultural Communitiesllndigenous Peoples" or "ICCsIIPs" shall 
refer to a group of people or homogenous societies identified by self-ascription and 
ascription by others, who have continuously lived as organized community on
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communally bounded and defined territory, and who have, under claims of ownership 
since time immemorial, occupied, possessed and utilized such territories, sharing 
common bonds of language, customs, traditions and other distinctive cultural traits, or 
who have, through resistance to political, social and cultural inroads of colonization, 
non-indigenous religions and cultures, became ,historically differentiated from the 
majority of the Filipinos. ICCs/IPs shall likewise include people who are regarded as 
indigenous on account of their descent from the populations which inhabited the 
country, at the time of conquest or colonization, or at the time of inroads of non­
indigenous religions and cultures, or the establishment of present state boundaries, who 
retain some or all of their own social, economic, cultural and political institutions, but 
who may have been displaced from their traditional domains or who may have resettled 
outside their ancestral domains. 
(00) "Industrial Forest Management Agreement" or "IFMA" shall refer to a 
production-sharing contract entered into by and between the Department and a qualified 
person, whether natural or juridical, wherein the former grants to the latter the exclusive 
right and responsibility to invest in, develop, manage. and protect a defined area of the 
production forestland, including the establishment, management and utilization of 
industrial forest plantation, consistent with the principle of sustainable development, 
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primarily to supply the raw material requirements of· wood-based processing and 
energy-related industries and wherein both parties share in the benefits therefrom. 
(pp) "Industrial Forest Plantation" or "IFP" shall refer to any tract of land planted 
mainly to timber producing species, including rubber and/or non-timber species such as 
rattan and bamboo, primarily to supply the raw material requirements of existing or 
proposed wood processing plants, and related indu~tries. 
(qq) "Joint Venture Agreement" shall refer to an agreement where a joint-venture 
company is organized by its government and the contractor, with both parties having 
equity shares. Aside from earnings in equity, the government is entitled to a share in the 
gross output. 
(rr) "Kaingin" shall refer to a portion of the forest land, whether occupied or not, 
which is subjected to shifting and/or permanent slash-and-burn cultivation having little or 
no provision to prevent soil erosion. 
(ss) "Kaingin Making" shall refer to a farming system based on shifting, or slash 
and burn clearing of forest for the planting of agricul.tural and agro-forestry crops. 
(tt) "Managed Forest" shall refer to a forest under a deliberate system of 
protection, rehabilitation, and development, which .may include utilization of resources, 
to ensure the sustainable production of desired products and services and the 
conservation of soil, water, wildlife, and other resources therein. 
(uu) "Master Plan for Forestry Development" refers to the twenty (25) years 
strategic program of the Forestry Sector envisioned to guide its long term development. 
This program includes the following: (a) policy and institutional development; (b) 
watershed and forestry development; (c) livelihood and poverty reduction; and (d) 
forest-based industry development. 
(vv) "Multiple Use" shall refer to the harmonized utilization of land, soil, water, 
wildlife, recreation value, grass and timber of forestlands. 
(ww) "National Park" shall refer to the land of public domain classified as such in 
the 1987 Philippine Constitution which includes all areas under the National Integrated 
Protected Areas System (NIPAS) pursuant .to RA 7586, primarily set aside and 
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designated for the conservation of native plants anp animals, their associated habitats 
and cultural diversity. 
(xx) "Natural Forest" shall refer to forest composed of indigenous trees, not 
planted by man. 
(yy) "Non-Government Organization" or "NGO" shall refer to a non-stock, non­
profit, and voluntary organization. 
(zz) "Permit" shall refer to a short-term privilege or authority granted by the State 
to a person to utilize any limited forest resources or undertake a limited activity within 
any forest land without any right of occupation and possession therein. 
(aaa) "Person" shall refer to a natural or juridical person, including local forest 
communities or indigenous peoples organized in accordance with law or custom. 
(bbb) "Plantation Forest" shall refer to forest stands established by planting or 
seeding in the process of afforestation or reforestation. 
(ccc) "Primary Forest" shall refer to forest which have never been subject to 
human disturbance or has been so little affected by hunting, gathering and tree cutting 
that its natural structure, function and dynamics hqve not undergone any changes that 
exceed the elastic capacity of the ecosystem. 
(ddd) "Processing Plant" or "Processing Mill" shall refer to any mechanical set­
up, device, machine or combination of machines used for the conversion of logs and 
other forest raw materials into lumber, fiberboard" pulp, paper or other finished wood 
products. 
(eee) "Production Forestlands" - as defined under Sec. 6 (b) of this Act. 
(fff) "Production Sharing Agreement" shall refer to an agreement wherein the 
government grants the contractor the exclusive right to conduct forestry development 
activities within but not title over, the contract area and shares in the production whether 
in kind or in value as owner of forest product therein. The contractor provides all the 
necessary financing, technology, management and personnel. 
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(ggg) "Protected Areas" shall refer to identified portions of land and water set 
aside by reason of their unique physical and biological significance, managed to 
enhance biological diversity and protected against destructive human exploitation. They 
shall constitute the areas established under the National Integrated Protected Areas 
System (NIPAS) pursuant to RA 7586 and shall fall under. the National Park 
classification of public domain. 
(hhh) "Protection Forests" - as defined under Sec. 6 (a) of this Act. 
(iii) "Reforestation" shall refer to the establishment of forest plantations on 
temporarily unstocked lands that are considered I as forest. Also called as artificial 
regeneration. 
um "Reservation" shall refer to an area of the public domain reserved by law for a 
specific purpose. 
(kkk) "Restoration" shall refer to the bringing back of the forestland to its original 
state. 
(III) "Rotation" shall refer to the number of years between the initial establishment 
of a plantation and the time when it is considered ready for harvesting. 
(mmm) "Secondary Forest" shall refer to the status or condition of a forest 
subsequent to commercial logging and which there is more or less sufficient or 
adequate volume of residuals of the desired species of trees for future harvest. 
(nnn) "Secretary" shall refer to the Secretary of the DENR. 
(000) "Silvicultural Practices" shall refer to any action by man to further improve 
or enhance the stand growth as a whole or the single tree for future harvest including 
assisted natural regeneration and tree surgery, among others. 
(ppp) "Sustainable Development" shall refer to development that meets the 
needs of the present without compromising the ability of the future generations to meet 
their own needs. 
(qqq) "Sustainable Forest Management" or ·"SFM" shall refer to the process of 
managing a forest to achieve one or more clearly specified objectives of management 
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with regard to production of continuous flow of desired forest products and services 
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without undue reduction of its inherent values and future productivity and without 
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undesirable effects on the physical and social environment. 
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(rrr) "Tenure" shall refer to guaranteed peaceful possession and use of specific 
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forest land area and the resources found therein, covered by an agreement, contract, or 
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grant which cannot be altered or abrogated without due process. 
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(sss) "Timber License Agreement" or "TLN' shall refer to a long-term license 
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executed by and between the Secretary of the DENR, on behalf of the government, and 
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the grantee for the harvesting and removal from the public forest of timber and, in 
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appropriate cases, also of other products. 
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(ttt) "Watershed" shall refer toa land area drained by a stream or fixed body of 
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water and its tributaries having a common outlet for surface runoff. 
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(uuu) 'Watershed Ecosystem Management"·· or "WEM" shall refer to a 
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management system that will provide the optimum social, cultural, economic and 
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environmental benefits to the greatest number of people, particularly those living in, 
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adjacent to, or downstream of, individual watershed areas, while maintaining the 
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biological and cultural heritage of the country. It is the holistic multiple use and 
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sustainable management of all the resources within a spatial unit known as the 
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watershed. The Watershed Ecosystem Management is based on the following guiding 
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principles: (1) Ecological sustainability; (2) Social and Cultural sustainability; (3) 
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. Economic sustainability and (4) Institutional Sustainability. 
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(vvv) "Watershed Reservation" shall refer to a forestland reservation established 
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to protect or improve the conditions of water yield thereof or reduce sedimentation. 
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(www) 'Wildlife" shall refer to wild forms and varieties of flora and fauna, in all 
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developmental stages, including those which are' in captivity or are being bred or 
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propagated. 
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(xxx) "Wood-Based Industries" shall refer to various industries that use wood as 
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the principal raw material including but not limited to sawmilling, pulp and paper making, 
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and plywood and veneer manufacturing or the upstream wood-based industries, as well 
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as the secondary and tertiary wood processing or downstream industry SUCll as 
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moldings and furniture manufacturing. 
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CHAPTER II 
CLASSIFICATION OF PERMANENT FORESTLANDS 
SEC. 5. Permanent Forestlands. - All lands of the public domain classified as 
forestlands, including the remaining unclassified lands, shall comprise the permanent 
forestlands of the country. Provided, That any reclassification shall be approved by an 
Act of Congress. 
SEC. 6. Sub-Classification of the Permanent Forestlands. - The permanent 
forestlands shall be sub-classified into the following categories according to primary 
use: 
(a) Protection forestlands - All areas within the forestlands devoted primarily for 
the protection, conservation of forest resources to ensure environmental 
stability, conservation of biological diversity, improvement of ecosystem 
functions and services, and provision of ecological and economic benefits 
shall constitute the protection forestlands. All mossy and primary/old growth 
forests and natural beach, areas above 50% slope, areas regardless of slope 
which are highly erodible or too rocky for establishment of either production 
forests or limited production forests, developed for the principal objectives or 
establishing vegetative cover to prevent erosion, conserve water and nurture 
wildlife, freshwater, swamps, and marshes, all areas along the bank of the 
rivers and streams, and the shores of the seas and lakes throughout their 
entire length and within the zone of three (3) meters in urban areas, twenty 
(20) meters in agricultural areas, and forty (40) meters in forest areas, along 
their margins which are subject to the easement of public use in the interest 
of recreation, settlements, navigation, floatage, fishing and salvage shall also 
be sub-classified as protection forestlands. 
(b) Production  forestlands. -
All forestlands not sUb-classified as protection 
forestlands defined in this Section shall be sub-classified as production 
forestlands to be devoted to the production of timber and/or non-timber forest 
products or the establishment of indu;strial tree plantations, tree farms, 
communal forests, agroforestry, grazing,' or as multiple use forests including 
water-based energy areas such as but not limited to hydrothermal and 
geothermal reservations: Provided, That they shall be managed, developed, 
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and utilized in accordance with a Department-approved management plan 
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based on sustainable forest management principles. 
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SEC. 7. Demarcation and Delimitation.~· Upon approval of this Act, the 
Congress shall provide funds for the Department to demarcate on the ground the actual 
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land classification lines: Provided, That the Secretary, upon completion of the actual 
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assessment of the demarcated land classification lines, shall recommend to Congress 
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the delimitation of the forestlands found to be still suitable and capable for its purpose. 
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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. Moreover, the Department shall furnish all provincial, municipal 
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and city government copies of the maps of permanent forestlands located within their 
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respective territorial jurisdictions. 
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CHAPTER III 
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ADMINISTRATION AND MANAGEMENT OF FORESTLANDS AND RESOURCES 
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SEC. 8. Jurisdiction and Control of Forestlands.~ The Department shall be the . 
primary agency responsible for the conservation,' management, and utilization of all 
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forestlands. In coordination with local government units and other government agencies, 
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it shall ensure that forestlands are managed, conserved, developed, utilized, and 
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protected consistent with the policies and strategies promulgated in this Act. The 
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utilization and development of forestlands including the natural resources therein shall 
be undertaken in accordance with Department-approved management plans. 
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SEC. 9. Forestlands Managed by Local Government Units (LGUs).~ Pursuant 
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to the pertinent provisions of Republic Act. No. 7160 or the Local Government Code, 
29 
LGUs shall share the responsibility in the susta'inable management, development, 
protection and utilization of forest resources within their territorial jurisdiction. Subject to 
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vested rights, LGUs and the Department, in consultation with other government 
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agencies, local communities, non-government organizations, academic and research 
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institutions and other sectors shall jointly undertake the preparation of indicative 
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forestland use and watershed management plan's, particularly the identification of 
multiple-use areas and production forestlands within the territorial jurisdiction of each 
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LGU which shall be made an integral component of the latter'S Comprehensive Land 
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Use Plan (CLUP), The LGUs shall be consulted on all forestry projects to be 
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implemented in their territorial jurisdiction and shall have equitable share of incomes 
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derived therefrom. For this purpose, the Department, the Department of Interior and 
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Local Government (DILG), the Leagues of Provinces, Cities, Municipalities, and 
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8arangays shall formulate a jOint strategy and program to implement this provision 
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within one (1) year from the passage of this Act. 
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SEC. 10. Forestlands Under Other Government Agencies.- Forestlands 
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and/or portions thereof which have been assigned by law to the administration and 
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management of other government agencies for a specific purpose, including those 
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dev,olved to the LGUs prior to the passage of this Act, shall remain under the 
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administration and management of these government agencies which shall be 
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responsible for their conservation, protection, rehapilitation, and sub-classification into 
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protection forestland and the specific purpose for which the entire area has been 
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assigned or reserved unless said assignment or reservation is consistent with the use of 
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such area as protection forestland. The Secretary or a duly authorized representative 
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shall exercise oversight functions over these forestlands. Moreover, these forestlands 
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shall be administered in accordance with a forest management plan, which shall be 
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prepared by the government agency or concerned LGU in coordination with the 
. 
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Department and local communities and organizations within one year from the effectivity 
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.of this Act: Provided, That the Department and the LGU or government agency 
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concerned shall periodically review, monitor, and evaluate the implementation of the 
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said management plan: Provided, further, That the harvesting of forest resources and 
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building of roads and other infrastructure therein shall be undertaken only with the prior 
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approval of the Secretary and after compliance with Environmental Impact Assessment 
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(EIA) in accordance with Presidential Decree NO.1151 or the Philippine Environmental 
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Policy and Presidential Decree No. 1586, Establishing an Environmental Impact 
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Statement System: Provided finally, That the Secretary shall recommend to Congress 
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or the President of the Philippines the reversion to the Department of the jurisdiction 
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and control over forestlands that are no longer needed nor used for the purpose by 
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which they have been constituted or in case the. agency or LGU concerned fails to 
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rehabilitate, protect, and conserve the forestland resources in accordance with the 
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approved management plan. The Department shall determine the use of the reverted 
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forestlands. 
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SEC. 11. Forest Resources Within Alienable and Disposable Lands. -All 
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forest resources planted or raised within alienable and disposable (A&D) lands belong 
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to the owner who shall have the right to harvest, transport, sell, contract, conveyor 
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dispose of the same subject to existing forest laws and regulations. The Department 
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shall encourage and provide incentives to landowners of alienable and disposable lands 
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to develop, maintain and manage forests on their lands or to develop and maintain a 
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tree plantation on such lands. Landowners who register their lands for forestry purposes 
4 
with the Department shall be assisted by the Department in the preparation of a 
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management plan: Provided, That alienable and disposable lands devoted to the 
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planting and harvesting of forest resources shall remain subject to the provisions of 
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Republic Act No. 6657 or the Comprehensive Agrarian Reform Law. 
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Harvesting, transport and sale of all trees planted within titled lands or tax­
i 0 
declared A&D lands with corresponding approved application for patent or acquired 
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through court proceedings, shall be deregulated, except for naturally-growing trees, 
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including premium hardwood species and other tir:tber species as determined by the 
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Department, where a special cutting permit issued by the Secretary shall be required. 
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All private plantations within titled or tax-declared A&D lands with a'pproved land 
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application should be registered at the City Environment and Natural Resources Office 
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(CENRO) having jurisdiction over the area. For this purpose, the CENRO shall maintain 
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a permanent Registry book to reflect all the information contained in the registration 
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form to serve as database on the extent of priyate plantations within its area of 
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responsibility. To form part of this permanent record is a certified and verified photocopy 
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of the land title or tax declaration with approved land application. 
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SEC. 12. Forest Resources Within Forestlands. -
All forest resources, 
24 
including non-timber forest products, its by-products and its derivatives, whether 
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naturally growing, planted or raised, which have been taken or have been applied with 
26 
some silvicultural practices, within forestlands including those forest resources within 
27 
the areas covered by Certificate of Ancestral Domain Title (CADT) or Certificate of 
28 
Ancestral Land Claim (CALC), shall be issued with a permit, agreement or clearance 
29 
that are deemed necessary and appropriate by the Department as recommended by the 
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Forest Management Bureau (FMB). 
The transport of these forest resources from 
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forestlands including those from the area of the Indigenous Cultural Communities and 
32 
I ndigenous Peoples covered by CADT or CALC shall be covered by a separate permit, 
33 
agreement or clearance duly issued by the Dep'artment. Any declaration of forest 
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resources as endangered, threatened, vulnerable and other restriction shall be done in 
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coordination, consultation and clearance from the FMB. 
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SEC. 13. 
Forest Resources Within Ancestral Domain. - The recognition, 
38 
ownership, and management of ancestral lands and domains shall be governed by the 
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provisions of the IPRA but any project of a hold~r of a CADT or any such similar 
instrument to develop or use forestlands or forest resources therein that would result in 
severe soil erosion or environmental degradation shall be subject to the provisions of 
Environmental 
Impact Assessment (EIA) in accordance with Presidential Decree 
No.1151 or the Philippine Environmental Policy, Presidential Decree No. 1586, 
Establishing an Environmental Impact Statement System, and this Act. The National 
Commission on Indigenous Peoples (NCIP) shall coordinate and consult the 
Department in providing assistance to the indig,enous peoples in the sustainable 
management and development of forest resources within ancestral lands and domains. 
The Multi-Sectoral Forest Protection Council created under Sec. 33 herein shall, among 
its functions and powers, evaluate and validate. the authenticity of all CAL T/CALC 
claims and applications of the IPs prior to the conduct of all survey activities and 
issuance of corresponding titles. 
SEC. 14. Development of Mechanisms for Private Sector Participation in 
Forest Management.- The Secretary is hereby authorized to adopt appropriate 
mechanisms to strengthen private sector participation in forest management, which 
shall include the accreditation of a national organization of private investors including for 
profit non-government organizations and people's organizations. The accredited 
national organization shall assist the Department in the formulation and review of 
relevant policies to ensure the contribution of the forestry sector to national economy 
and sustainable development. It shall also aSf?ist the Department in evaluating 
applications for forest management agreements; monitoring the performance of holders 
of commercial tenurial instruments; ensuring the. local supply of timber and wood 
products; providing producers with access to local and international markets; and 
ensuring the conservation and preservation of protection forestlands and protected 
areas under the NIPAS. 
CHAPTER IV 
FOREST MANAGEMENT PLANNING, MONITORING AND ASSESSMENT 
SEC. 15. Sustainable Forest Management Planning.- Subject to vested or 
prior rights, the Department, in conSUltation and coordination with LGUs, other 
government agencies, local communities, non-government organizations, individual and 
corporate entities, private sectors, academic and research institutions, and other 
concerned sectors shall, within one (1) year from the effectivity of this Act, develop and 
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adopt a sustainable forest management strategy for each well-defined watershed or 
other appropriate forest management unit based on criteria, indicators, and standards 
for sustainable forest management which, at their minimum, address the following 
requirements: 
a) Rational allocation of forestland uses and promotion of land use practices that 
increase productivity and conserve soil, water, and other forestland resources; 
b) Protection of existing forest resources and conservation of biodiversity; 
c) Rehabilitation or development of denuded areas to expand the forest resource 
base and promote food production activities; 
d) Enhancement of the socio-economic well-being of local communities including 
indigenous peoples who are largely dependent on the forest for their livelihood; 
e) Promotion of closer coordination between .and among the Department, LGUs, 
other national agencies, non-government organizations, local communities, the 
private sector, academic and research institutions and other entities in the 
sustainable management of forestlands; 
f) Adoption of community-based forest management as a principal strategy in the 
management of forestlands and resources; and 
g) Integration of forest management and land use plans at the barangay or 
community level to the CLUPs of cities and municipalities, including the adoption 
of effective impact monitoring system of forest management programs. 
The Department shall continue to adopt the Master Plan for Forestry 
Development subject to periodic review every five (5) years. 
SEC. 16. Watershed Ecosystem Management Strategy.- The Watershed and 
Ecosystems Planning Framework in Environment and Natural Resources Management 
shall be adopted. The strategy for improved watershed resources management shall be 
demand-driven, community-based, and multiple and sustainable-use considering 
national priorities and concerns of local stakeholders. Watershed management 
programs shall be guided by ecological, socio-cultural, economic, and institutional 
sustainability principles. A National Watershed Information System shall be developed 
to guide policy formulation, program development, and implementation of watershed 
management initiatives. 
A system of prioritization of watersheds shall be pursued considering the 
following: 
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a) water supply for domestic, irrigation, power, industrial, and commercial use;  
b) contribution to the economy;  
c) biodiversity and environmental enhancement;  
d) cultural and historical value; and  
e) effect on downstream areas.  
SEC. 17. Forestry Information System. - The Department shall establish a 
forestland resource database which shall consist of a comprehensive up-to-date 
information on 
the 
physical, social, 
economic, 
biological, 
and 
environmental 
components of the country's forestlands. It shall include a resource monitoring system 
to enable the Department and its field offices to track the utilization, movement or 
transfer of forest-based goods and services from the source to their end-users. 
The Department shall conduct and lor update forest resource inventory at least 
once every five (5) years to ensure effective management. 
SEC. 18. Environmental Impact Assessment,Accounting and Valuation.- All 
new environmentally critical projects to be implemented in forestlands such as 
harvesting, grazing and other special uses, mineral prospecting and exploration, road, 
infrastructure, and mill construction shall be .'subject to Environmental Impact 
Assessment (EIA) in accordance with Presidential Decree No. 1151 or the Philippine 
Environmental Policy, and Presidential Decree No. 1586, Establishing an Environmental 
Impact Statement System. The Department shall design and implement a system of 
monitoring and assessment using the Criteria and Indicators as framework and shall 
formulate appropriate standards as basis for assessing progress towards sustainable 
forest management. 
Furthermore, the Department shall design and implement an appropriate natural 
resources accounting and valuation system for various forestry initiatives. 
CHAPTER V 
COMMUNITY-BASED FOREST MANAGEMENT 
SEC. 19. Community-Based Forest Management Strategy (CBFMS). ­
Consistent with the policy of sustainable and multiple use forest management, forest 
dependent families, local communities, and indigenous peoples whose lives, cultures, 
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and general well-being are intimately linked with the forests shall be granted access to 
forestlands and resources through the issuance of long-term tenure agreements. This 
gives them a guarantee for peaceful occupation and entrusts to them the responsibility 
to protect, manage, develop, and utilize said forest resources under the principle of 
stewardship. 
The Department shall develop pOlicies, criteria, guidelines, and tenurial 
instruments that will simplify, facilitate, and allow access of forest dependent families, 
local communities, and indigenous peoples to forestland resources. The Department 
shall furthermore develop policies, guidelines and incentives for private sector investors 
to enter into mutually beneficial relationships with forest-based communities in pursuit of 
CBFMS on a sustainable forest management basis. 
SEC. 20. Qualified Participants.- Organized forest communities shall be given 
priority to participate in the CBFM program. Indigenous peoples shall also be 
encouraged to actively participate in the implementation of CBFM activities in 
recognition of their rights to their ancestral domains and lands. Organizations eligible to 
participate in CBFM shall have the following qualifications: 
a) Members shall be Filipino citizens; and 
b) Members shall be any of the following: 
1. Traditionally utilizing the resource for their livelihood; 
2. Actually residing within the area to be awarded; 
3. Residing adjacent and actually tilling portions of the area to be 
awarded. 
CHAPTER VI 
REFORESTATION, AFFORESTATION AND RESTORATION PROGRAMS 
SEC. 21. Reforestation and Restoration in Protection Forestlands. - The 
reforestation and restoration of all critical watersheds and critical, denuded, and 
degraded forests within protection forestlands no~ otherwise covered by the CBFM 
program shall be given top priority and shall be vigorously pursued by the Department 
consistent with the NIPAS Act and the strategies and management plans therefor. Use 
of endemic species in the restoration and rehabilitation of protection forestlands shall be 
adopted to enhance biological diversity therein. The Department, in coordination with 
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LGUs, other government agencies, NGOs, local residents and communities, and other 
sectors concerned, shall identify and prioritize forestlands to be reforested. 
An accelerated reforestation program in identified priority protection forestlands 
shall be undertaken to raise the forest cover. The Department shall allot funds to 
effectively accomplish reforestation either by its own or through contract in protection 
forestlands. The Department or other agencies responsible for reforestation shall give 
priority to local communities in the granting of technical and financial assistance for 
reforestation activities. 
SEC. 22. Reforestation or Forest Plantation Development in Production 
Forestlands.- In accordance with Section 43 herein, the State through the Department 
may enter into joint venture, co-production, or production sharing agreement with 
qualified forest community organizations, local government units, government-owned or 
controlled corporations, private companies, individuals, and other interested parties 
concerned in the development of forest plantations 'in production forestlands: Provided, 
however, That portions of production forestlands as determined by the Department as 
needed for protection purposes, shall not be converted into forest plantations. Such 
areas shall be rehabilitated using an appropriate forest regeneration scheme. 
SEC. 23. Reforestation in Forestlands under the Jurisdiction of Other 
Government Agencies.- Government agencies and institutions having management 
control over forestlands pursuant to a law or want shall be responsible for the 
reforestation of denuded and degraded portions of such forestlands. The reforestation 
program of these agencies shall aim to increase the vegetation of the degraded areas, 
to be identified jointly by the Department and agency concerned. The concerned agency 
in coordination with the Department shall prepare the reforestation plan, and determine 
the ratio of forested areas at any given time. Failure to reforest denuded and/or 
degraded forestland identified in the reforestation plan within the period herein 
prescribed shall be sufficient ground to request for'reversion of the said forestlands to 
the jurisdiction and control of the Department: Provided, however, That in areas where 
CBFMS shall be implemented or where there are existing facilities for basic services 
such as water and power as allowed by the Department pursuant to Section 43 hereof, 
the completion of the reforestation program shall be subject to the conditions provided 
in the tenurial document to be awarded by the Department and the agency concerned to 
the participating local community or individual or in the Forest Management Agreement 
of contractors operating such facilities for basic services, as approved by the 
Department. 
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SEC. 24. Reforestation in Alienable and Disposable Lands or Private 
Lands.- Reforestation or the establishment of tree farms or forest plantations in private 
lands shall be encouraged: Provided, That such private lands and other alienable and 
disposable lands are not prime agricultural lands . as determined or certified by the 
Department of Agriculture (DA). The private landowner(s) shall also be entitled to the 
incentives provided for under Section 27 herein, particularly subsections (a), (b), (c), (d), 
and (e): Provided, That such private forest plantations are duly registered with the 
Department. 
SEC. 25. Afforestation in Forestlands.-
The afforestation of forestlands, 
including those under the jurisdiction of other agen~ies, where tree vegetation is nil or 
have been removed for a considerable time, shall 'be given priority to re-establish tile 
production and/or protection functions of the area to provide the goods and services for 
which they are needed. Use of appropriate technology shall be applied as necessary to 
make the general environment of the area suitable for the establishment of plantations. 
Use of endemic species in the afforestation of protection forestlands shall be given 
priority to enhance biological diversity therein. In production forestlands, commercial 
, 
fast growing species compatible with the socio-economic and biophysical characteristics 
of the area shall be preferred. The Department, in coordination with LGUs, other 
government agencies, NGOs, local residents and communities, and other sectors 
concerned, shall identify and prioritize forestlands to be afforested. 
SEC. 26. Afforestation in Alienable and Disposable Lands and Private 
Lands.- The afforestation of private lands and other alienable and disposable lands, 
which have been left idle and unproductive and have been lacking vegetation for a 
considerable time, shall be encouraged: Provided, that such private lands and other 
alienable and disposable lands are not prime agricultural lands as determined or 
certified by the DA. The private landowner(s) shall also be entitled to the incentives 
provided for under Section 27 herein, particularly s~bsections (a), (b), (c), (d), and (e): 
Provided, that such private forest plantations are duly registered with the Department 
SEC. 27. Incentives.- 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 on 
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withholding tax at source on interest pa,id on a loanls incurred for the 
development of forest plantation; 
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 expenses or as capital expenditure; 
c) The Board of Investments (BOI) 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 to access credit assistance being 
granted by Government-owned, -controlled andl or -supported financial 
institutions; 
e) Upon the premature termination of the agreement at no fault of the holder, all 
depreciable permanent and semi-permanent improvements such as roads, 
buildings, and nurseries including the planted and standing trees and other forest 
.  
crops introduced and to be retained in the area shall be properly evaluated and 
the holder shall be entitled to a fair compensation thereof, the amount of which 
shall be mutually agreed upon by both the Department and the agreement 
holder, and in case of disagreement between them, by arbitration through a 
mutually acceptable and impartial third party adjudicator; 
f) No contract or agreement shall be terminated except for cause or for reason of 
public interest and only after due process; and 
g) The agreement holder has the right to transfer, contract, sell, or convey his 
rights to any qualified person following the guidelines to be issued by the 
Secretary. 
The Secretary may provide or recommend to the President or to Congress other 
incentives in addition to those granted herein and in existing laws in order to promote 
reforestation and the establishment of forest plantations. 
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 
ar~a on a co-production agreement: 
Provided, That the property shall be exclusively devoted to the planting of forest species 
for at least one (1) rotation, which undertaking shall be annotated at the back of the title 
of the property: Provided, further, That prime agricultural lands as determined or 
certified by the DA shall not be the subject of a voluntary offer to reforest. 
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CHAPTER VII 
TREEPAR~COMMUNAlFOREST 
SEC. 29. Establishment and/or Maintenance of City or Municipal Parks or 
Communal Forest.- Every city or municipality shall establish a city or municipal park or 
communal forest and shall include in its yearly budget the necessary funds for its 
establishment and maintenance. Upon request of th~ city or municipality concerned, the 
Department shall set aside an appropriate area of the protection or production 
forestlands as the case may be, as city or municipal park or communal forest and shall 
provide technical assistance to the local government concerned in the development of 
the park or communal forest. 
SEC. 30. Establishment of Tree Parks in Subdivision and Tree Planting on 
Roadsides.- Every subdivision project to be developed after the passage of this Act 
shall include the establishment of a tree park of not less than fifty percent (50%) of the 
required total open spaces as provided in Section 2 of presidential Decree No. 953, 
requiring the planting of trees in certain places. Guidelines for the establishment of tree 
parks within a subdivision shall be prepared jointly by the subdivision owner concerned, 
the Housing and Land Use Regulatory Board (HLURB) 'and the Department. The 
subdivision owner shall provide the funds for this purpose. These guidelines and 
allocation of funds shall be a condition precedent in ~he approval of the subdivision plan. 
For every major public road or irrigation construction project, the Department of Public 
Works and Highways (DPWH) shall include the planting and maintenance of trees along 
the road/highway or irrigation canals as landscaped rest areas every twenty-five (25) 
kilometers thereof, whenever appropriate, and shall provide adequate funds for this 
purpose. Each city and municipality shall also allocate adequate funds for the planting, 
care, and maintenance of trees or perennial shrubs in "greenbelts" or "green spaces" 
such as road/street sides, center islands, among others. 
CHAPTER VIII 
FOREST PROTECtiON 
SEC. 31. Commercial Logging Ban in Protection forestlands.- There shall be 
a permanent ban on commercial logging activities in all protection forestlands defined, 
categorized, and sub-classified in Section 6 (a) herein. No licenses, permits, or 
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agreements to cut any timber or to harvest, collect or gather non-timber forest products 
therein shall be issued: Provided, That sustainable .indigenous and traditional practices 
of the IPs/ICCs shall be recognized and respected. 
SEC. 32. Forest Protection in Production Forestlands.- Protection forestlands 
found inside production forestlands shall be excluded from any logging operation. The 
holder of the agreement or license over these production forestlands shall establish a 
buffer zone and delineate their boundaries, marking the same with concrete monuments 
or any other visible, permanent, and practicable signs. 
To ensure the conservation and sustainable use of forest resources in production
. 
forestlands, holders of tenurial instruments shall submit to the Department a Forest 
Management Plan (FMP) containing strict environmental guidelines. 
Upon the expiration or termination for cause of any Timber License Agreement 
(TLA), no extension shall be granted and the area ~overed by the agreement shall be 
sub-classified as protection forestland after the Department had excluded the 
production forestland and degraded areas that may be subject of a reforestation or tree 
plantation project. 
SEC. 33. Multi-Sectoral Forest Protection Council. - There shall be created a 
Multi-Sectoral Forest Protection Council in every province, city and municipality which 
shall be responsible for the over-all protection of tbe forestlands and forest resources 
found therein. Among their powers and functions found in other provisions under this 
Act, they shall be primarily responsible for law enforcement, prevention of forest fires, 
integrated pest management and protection against forest invasive species. The council 
shall be composed of representatives from DENR. NCIP, Department of Agrarian 
Reform (DAR), concerned LGUs, NGOs, People's organizations, church and local 
academic institution, among others. 
SEC. 34. Assistance of Law Enforcement Agencies.- The Department may 
call upon law enforcement agencies and instrumentalities of the Government such as 
the Philippine National Police (PI\IP). the Armed Forces of the Philippines (AFP), and 
the National 8ureau of Investigation (1\181) for the enforcement of the forest-related 
laws, rules and regulations. 
SEC. 35. Role of LGUs and Local Residents.- It shall be incumbent upon 
LGUs concerned to render assistance in protecting and conserving forestlands within 
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their respective territorial jurisdiction. Qualified local residents shall be deputized by the 
Department to assist in the drive against illegal logging, kaingin-making and forestland 
occupation. These deputized residents shall likewise be authorized to arrest forest 
violators within their communities subject to existing laws and regulations on arrest and 
detention. The LGUs shall provide assistance to these deputized residents in cases of 
arrests and seizures. 
SEC. 36. Prevention of Forest Fires and Control of Forest Pests and 
Diseases.- In collaboration with concerned LGUs and the Bureau of Fire Protection 
(BFP), the Department shall formulate and implement a fire prevention and control 
program, providing incentives to LGUs, community organizations, or individuals who 
participate in preventing and controlling forest or grass fire. The Department shall 
likewise formulate and implement a national integrated forest pest and disease 
management program including quarantine procedures for imported forest seeds and 
forest products to prevent, minimize or control forest pests and diseases. 
SEC. 37. Information and Rewards System . ...; 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 payable immediately upon the 
establishment of prima facie proof of violation. 
CHAPTER IX 
FORESTRY RESEARCH, EDUCATION, TRAINING AND EXTENSION 
SEC. 38. Research and Technology Development Transfer.- Research and 
technology development transfer shall be strengthened to support sustainable 
management of forest resources. The Department, the Department of Science and 
Technology (DOST), the Commission on Higher Education (CHED), and the colleges of 
forestry of State Universities shall, within one (1) year from the passage of this Act, 
prepare a comprehensive national forestry and environmental research and technology 
development and transfer program in furtherance of sustainable forest management 
which shall be implemented, monitored, and reviewed in accordance with existing 
research management systems. Adequate and sustainable funds to implement research 
and technology development plans and transfer program shall be provided by each of 
the aforementioned agencies and institutions under the General Appropriations Act. 
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SEC. 39. Public Information, Education and Advocacy Campaign.- With the 
support from LGUs, NGOs, media and. other organizations, the Department, the 
Philippine Information Agency (PIA), the Department of Education (DepEd), CHED, 
State-owned and private universities and colleges shall formulate and implement a 
nationwide program for sustained public information and advocacy campaign for forest 
and 
natural resources conservation and sustainable forest development and 
management. The DepEd shall include subjects on forest and natural resources in the 
curricula for elementary and high school education. The CHED shall likewise include 
ecology and environment courses in the general .education curricula. Congress shall 
allocate funds to the Department for the purpose of coordinating a systematic campaign 
to promote community ecological awareness, including the preparation of informational 
and educational materials therefore. 
SEC. 40. Formal Forestry Education.- The CHED, in collaboration with the 
Department, the Board of Examiners for Foresters of the Professional Regulations 
Commission (PRC), Philippines Forestry Education Network and the duly accredited 
national professional foresters organization shall actively pursue the rationalization of 
formal forestry education and the establishment of centers of excellence in forestry and 
environmental education to ensure high quality manpower output to meet the needs of 
the forestry sector. 
SEC. 41. Continuing Education on Forestry.- A non-formal program of 
continuing education shall be established to maintain the growth of the forestry 
profession. The PRC Board of Examiners for Foresters and the Civil Service 
Commission (CSC) shall provide the guidelines for a program in continuing education in 
forestry. In cooperation with academic institutions, the Department shall develop the 
infrastructures to institutionalize non-formal continuihg education for the forestry sector. 
SEC. 42. Training Centers- In coordination with TESDA, DepEd, CHED and 
State Universities and Colleges (SUCs) as well as accredited institutions, the 
Department shall establish and institutionalize a network of training centers in strategic 
parts of the country to provide regular and up-to-date training on the various aspects of 
sustainable forest management, development, and utilization to forest officers, LGUs, 
NGOs, local communities, and 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. 
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SEC. 43. Forestry Development Center.- The Forestry Development Center 
(FDC) based in the College of Forestry and Natural Resources, University of the 
Philippines at Los Banos, shall continue to serve as the primary policy research and 
development center for forestry and natural resources management. The FDC shall 
perform its functions in close coordination with· the Department and other policy 
research institutions in the country. It shall assist the Department in the formulation, 
review, and evaluation of proposed and existing policies on forestry and natural 
resources management. 
The FDC, together with the national organization of private institutions as 
stipulated in Section 14 of this Act, shall assist the Department in the formulation and 
review of relevant forest and forest related policies to ensure the contribution of the 
forestry sector to the national economy and sustainable development. 
To enable the FDC to carry out its mandated function of policy research, it shall 
have a share in the Sustainable Forestry Development Fund pursuant to Section 64 
herein. 
CHAPTER X 
DISPOSITION AND UTILIZATION OF FOREST RESOURCES 
SEC. 44. Modes of Forest Management Agreement.- The development, 
utilization, and management of forestlands and/or forest resources shall be undertaken 
under the control· and supervision of the State through 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 or 
associations, subject to relevant laws, rules and regulations: Provided, That interested 
local communities and indigenous peoples through their organized and duly recognized 
associations shall be given priority in the grant 'of appropriate tenurial instruments 
implementing the said agreements. Such tenurial instruments and/or agreements shall 
have a duration of twenty-five (25) years, renewable for another twenty-five (25) years, 
under such terms and conditions as may be provided by the Secretary: Provided, 
further, That such tenurial instruments and/or agreements may not be terminated except 
for cause or if public interest so requires. Current valid and subsisting licenses, 
contracts, or agreements granted 
by the government for the development, 
management, and utilization offorest resources shall be allowed to continue under the 
same terms and conditions until their expiry, or prior to their expiry shall be allowed to 
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be converted into any mode authorized herein under the guidelines promulgated by the 
Secretary: Provided, That no such conversion shall be allowed in protection forestlands 
as defined in Section 6(a) herein, on sub-classification of forestlands. The Department 
is hereby authorized to formulate rules and regulations covering the relevant terms and 
conditions thereof including the determination and collection of the government share, 
subject to the approval of Congress. For watersheds and other areas where existing 
facilities for basic services such as water and power are located, the Department may 
enter into a forest management agreement with the service contractor in the area. Such 
agreement shall have a duration of twenty-five (25) years, renewable for another 
twenty-five (25) years, under such terms and conditions agreed upon by both parties: 
Provided, That such agreement may not be terminated except for cause or if public 
interest so requires or upon mutual agreement by th~ parties. 
All forest development activities such as logging, reforestation, timber stand 
improvement, forest protection, and delivery of community service within an area 
covered by timber concessions shall be consolidated under the FMP which shall be 
prepared by or under the supervision of an accredited private registered forester whose 
signature and dry seal shall appear in the plan and the supporting documents submitted 
for the purpose. 
SEC. 45. 
Minimum Conditions for the Issuance of Co-production, Joint 
Venture and Production Sharing Agreement .. The following provisions shall be the 
minimum conditions for the issuance of co-production, joint venture and production 
sharing agreement: 
a) The agreement holder shall furnish the necessary management, technology  
and financial services when required, as determined by the Secretary;  
b) A provision for government share of revenues and the manner of payment  
thereof;  
c) A provision on consultation and arbitration with respect to the interpretation of  
the agreement;  
d} A provision for anti-pollution and environmental protection measures;  
e) A provision for the reforestation, restoration and protection of the forest;  
f} A provision for an effective monitoring scheme to be implemented the by the  
Department, which shall include, but shall nqt be limited to periodic inspection of  
all records and books of account of the agreement holders;  
g} A commitment to community development;  
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h) The submission of a management and d~velopment plan to be approved by 
the Secretary; and 
i) Other provisions that the Secretary shall impose, upon the recommendation of 
the Director of the FIVIB, that will improve and sustain the development and 
management of the forestlands and its resources, which shall include, among 
others, a projection of annual income and revenues generated, to be used as 
basis in the determination of government shares. 
SEC. 46. Transfer.- No holder of a co-production, joint venture, or production 
sharing agreement or contract shall sub-contract, transfer, exchange, sell or convey the 
same or any of his right or interests therein without a written authority from the 
Secretary. Moreover, no transfer shall be authorized unless the agreement or contract 
has been in existence and active for at least three consecutive years from issuance 
thereof: Provided, That the transferor has faithfully complied with the terms and 
conditions of the said agreement or contract; the transferee has all the qualifications 
and none of the disqualifications to hold the same; and the transferee shall assume the 
obligations of the transferor. Failure to comply with these conditions shall be sufficient 
cause for the cancellation of the agreement or contract. 
SEC. 47. Non-Timber Forest Products.- Rattan, bamboos, vines, herbs, 
exudates and other non-timber forest products are integral parts of the forest 
ecosystem. The establishment of plantations of non-timber producing species shall be 
encouraged and supported. The development, management and utilization of non-
timber forest products shall be allowed in accordance with the guidelines to be 
promulgated by the Department. 
However, in granting permits to harvest, utilize, gather or collect non-timber 
forest products, in their natural or original state, in the production forestlands, the priority 
shall be given to forest dependent families, local communities, and indigenous peoples 
living near or within the subject forestlands. 
Further, the gathering or collecting of 
animals for any purpose in the production forestland shall be governed by the existing 
wildlife law and the guidelines to be promulgated by the Department. 
SEC. 48. Silvicultural and Harvesting System.- The Department shall 
formulate the appropriate silvicultural and harvesting system and all measures shall be 
taken to achieve an approximate balance between growth and harvest. The use of 
forest products from production forestlands shall be promoted and practiced. 
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SEC. 49. Mangrove forest.- Harvesting and utilization shall only be allowed in 
matured plantation forests within mangrove production 
forest~: Provided, That in 
government priority projects, harvesting of naturally grown trees shall be allowed. 
SEC. 50. Grazing.- Land for grazing purposes shall only be limited to production 
forestlands. The Department shall identify and delimit areas suitable for grazing 
purposes: Provided, That no forestland fifty percent (50%) in slope or over may be 
utilized for grazing purposes: Provided, furlher, That existing pasture lease agreements 
or forestland grazing lease agreements shall be allowed to continue under the same 
terms and conditions until their expiry: Provided, finally, That abandoned or idle, 
expired, or cancelled grazing or pasture lands shall be subject to land use capability 
assessment and or land use suitability assessment to determine their best use or 
combination of uses. No new grazing or pasture. permit, lease, or contract shall be 
issued, nor existing ones allowed to continue unless covered by existing rules and 
regulations governing the Philippine EIS System. 
SEC. 51. Mining and Power Generation Operations in Forestlands.- Mining 
activities in protection forestlands shall not be allowed. Power generation and small-
scale mining operations in forestlands, except in protection forestlands, may be allowed 
subject to existing rules and regulations governing the Philippine EIS System. Forest 
resources inside mineral reservations and permitted areas are under the Department's 
jurisdiction, and their management and utilization are subject to the provisions of this 
Act. 
SEC. 52. Roads and Other Infrastructures.- Roads and other infrastructure 
including the development of mineral reservations and energy resburces inside 
forestlands shall be constructed with the least impa~t and disturbance to the biodiversity 
of the area found in such forestlands. Government agencies and their contractors 
undertaking the construction of roads, bridges, communication and other infrastructure 
facilities and installations inside forestlands shall seek prior authority from the 
Department and shall comply with existing rules and regulations governing the 
Philippine EIS System. 
CHAPTER XI 
FOREST-BASED INDUSTRIES 
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SEC. 53. Establishment and Operations of Forest-Based Industries.- To 
meet the demands for forest-based goods and sE?rvices of a growing population, the 
State through the Department shall promote the establishment, operation, and 
development of forest-based industries in non-protection forestlands. 
SEC. 54. Incentives for Forest-Based Industries.- To enable forest-based 
industries to be more efficient, competitive, and economically viable, the following 
incentives are hereby granted in addition to those already provided by existing laws: 
a) All processing plants or mills shall be assured of their supply of raw materials, 
preferably but not exclusively from local sources; 
I 
b) All processing plants or mills shall be granted operating permits for five (5) 
years renewable for another five (5) years: Provided, That permits for processing 
plants owned or operated by holders of forest management agreements or 
contracts shall be co-terminus with said agreements or contracts. 
The Department may provide on its own or propose to the President or to 
Congress, other incentives to encourage the establishment and development of 
integrated forest-based, particularly wood-based plants. Warranties to and agreements 
with existing integrated forest-based plants to ensure the availability of raw materials 
shall be subject to the process for as long as such integrated plants are operating. 
Agreements or licenses over forest areas granted to wood-based plants shall be 
converted into any mode authorized in this Act. E?<pansion in capacity of wood-based 
plants shall be encouraged and the same shall be given priority access to production 
forestlands and other areas available for development as source of raw materials. 
SEC. 55. Export and Sale of Locally Produced Wood Products.- Logs derived 
from natural grown trees of whatever species Gut,gathered, or removed from the 
forestlands and raw or rough lumber manufactured from such logs shall not be 
exported. Only finished and semi-finished lumber products, wood manufactures, wood 
panels, and other finished wood products from 'such logs may be exported. Logs, 
lumber and other finished products from forest plantations shall be exported only under 
such guidelines as the Secretary may promulgate. No person shall sell or offer for sale 
any log, lumber, veneer, plywood or other manufactured wood products in the 
international or domestic market without complying with the grading rules established by 
tile government. Failure to adhere to the established grading rules and standards, or 
any act of falsification on the volume of logs, lumber, veneer, plywood or other wood 
products sold in the international or domestic market shall be sufficient cause for the 
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cancellation of export license, wood processing permit, or other license or permit 
authorizing the manufacture or sale of such products. 
SEC. 56. Importation and Sale of Logs and Other Forest and Wood 
Products.- Logs, lumber, and other forest- and woo~-based products may be imported 
to the country subject to the authorization ofthe Secretary and to the tariff and duties 
under Presidential Decree No. 1464 as well as quarantine regulations. Any product 
manufactured or re-manufactured out of imported forest and wood materials shall be 
allowed to be sold in the domestic or international market: Provided, That the grading 
rules and standards therefore are complied with, otherwise the sanctions in Section 69 
hereof shall be imposed. 
CHAPTER XII 
FOREST CHARGES, FEES AND GOVERNMENT SHARES 
SEC. 57. Fees and Government Shares· for the Utilization, Exploitation, 
Occupation, Possession of and Activities within Forestlands- The Department shall 
prescribe appropriate fees and rentals for the different kinds of utilization, exploitation, 
occupation, possession, or activities within forestlands: Provided, That payment of or 
collection of such fees and rentals shall be waived for parties/industries mandated by 
law to manage, conserve, develop and protect forestlands and forest resources found 
therein, except administrative fees for the filing and processing of applications for the 
issuance and renewal of licenses, permits, and agreements: Provided, further, That 
watershed administrators and/or service contractors that have forest management 
agreements with the Department as provided for under Section 44 of this Act shall also 
be entitled to the waiver of fees, except administrative fees. 
The Department shall prescribe appropriate and equitable fees for the use of 
water and forest by partieslindustries concerned for power generation, domestic and 
industrial irrigation, carbon sequestration and biodiversity benefits. 
SEC. 58. Forest Charges.- There shall be collected charges on each cubic 
meter of timber cut in forestland, whether belonging to the first, second, third or fourth 
group, twenty-five percent (25%) of the actual FOB market price based on species and 
grading: ProVided, however, That, in the case of pulpwood and matchwood cut in 
forestland, forest charges on each cubic meter shall be ten percent (10%) of the actual 
FOB market price. 
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SEC. 59. Charges on Firewood, Branches, and Other Recoverable Wood 
Wastes of Timber.- There shall be collected forest charges of ten percent (10%) based 
on FOB market price on each cubic meter of firewood cut in forestland, branches and 
other recoverable wood wastes of timber, such as timber ends, tops and stumps, when 
used as raw materials for the manufacture of finished products. 
However, if jointly authorized by the Secretaries of both the Department and the 
DA, first and second group woods may be remove'd from land which is more valuable 
for agriculture than for forest purposes to be used as firewood. 
SEC. 60. Charges on Non-Timber Forest Products.-
Non-timber forest 
products in forestlands, as determined by DENR, shall be subject to forest charges, 
equivalent to ten percent (10%) of the actual FOB market price. 
SEC. 61. Determination of Market Price of Forest Products.- The actual FOB 
market price of forest products shall be justly determined by DENR. 
These forest charges shall be applied to naturally growing timber and forest 
products gathered from forestlands, alienable and disposable lands, and private lands. 
The measurement of forest products and the collection of charges thereon shall 
be undertaken by the Department, which shall likewise provide for the time, manner, 
and place of payment of such charges. 
SEC. 62. Fees for Administrative Services Rendered by the Department.­
Fees shall be collected for various services rendered by personnel of the Department in 
connection with their duties and responsibilities as may be requested by interested 
parties, including but not limited, to surveying, mapping and other simllar service 
activities: Provided, That administrative fees shall be waived for services rendered to 
local communities or indigenous peoples in the preparation of their management plans. 
CHAPTER XIII 
APPROPRIATIONS AND FINANCIAL SUPPORT 
SEC. 63. Appropriations.- The amount necessary to initially implement the 
provisions of this Act shall be charged against the appropriations of the Department of 
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Environment and Natural Resources in the current General Appropriations Act. 
Thereafter, such sums as may be necessary to fully implement the provisions of this Act 
shall be included in the annual General Appropriations Act. For local government units, 
the funding requirements shall be taken from their ir.tternal revenue allotment (IRA) and 
other sources of income. 
SEC. 64. Sustainable Forestry Development Fund (SFDF).- A Sustainable 
Forestry Development Fund (SFDF) to be administered by the Department as a special 
account in the National Treasury is hereby established to provide sustainable funds for 
forest protection, reforestation, and forest development and management, including 
rehabilitation and preservation of watershed areas, CBFM program, information and 
educational campaign as well as scholarship programs and policy research. At least 
thirty percent (30%) of the forest charges and government share in all products 
removed from the forestlands, rentals, proceeds from sales of confiscated forest 
products including conveyances, fines and penalties, and administrative fees collected 
shall be set aside for the buildup of the SFDF. The'fund may be augmented by grants, 
donations, endowment from various sources, domestic or foreign for purposes related to 
their functions. 
Disbursements from the fund shall be subject to the usual accounting· and 
budgeting rules and regulations: Provided, That no' amount shall be disbursed to cover 
the operating expenses of the Department and other concerned agencies. A trust fund 
committee, composed of the Secretary as Chair and the Secretary of the Department of 
Budget and Management (DBM), the DILG Secretary, and the National Treasurer or 
their representatives shall sit as members and manage the SFDF, with the FMB as 
secretariat. 
SEC. 65. Creation of Sustainable Fund Facility Office (SFFO).- There shall be 
created within the FMB of the DENR an office called Sustainable Fund Facility Office to 
perform the following mandates: 
a) Conduct further exploration, identification, and development of new and 
improved and more effective financial mechanism, and examine the potential 
and results of the innovative use of existing mechanisms to promote sustainable 
forest management, taking into account the full range of goods and services, 
including forest-related environmental services, which include watershed 
protection, carbon sequestration, biodiversity conservation, energy provision and 
maintenance of many ecological functions; and, 
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b) Develop and test rapid valuation methods which are market-based, policy 
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relevant and efficient, and reflect regional and national characteristics and 
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requirements. These valuation methods should include a focus on the 
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development of approaches which incorporate a wide range of values, reflecting 
the overall value of forest ecosystems, as appropriate, as well as ways to 
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internalize the externalities. 
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SEC. 66. Specific Functions of SFFO.- The specific functions of SFFO are as 
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follows: 
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a) Generate new and additional public and private financial resources at the 
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domestic and international levels to enable the country to sustainably manage, 
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conserve and develop forest resources through afforestation and reforestation 
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and to combat deforestation and forest and land degradation; 
b) Prioritize forest activities or national resources development strategies in order 
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to respond to increased concerns for sustainable forest management, taking into 
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consideration the financial resources available to them; 
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c) Cali upon all government agencies and non-government organizations or 
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institutions to give special consideration to areas or provinces with least 
developed or poorly developed forest cover and to engage them in financial 
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cooperation to meet their needs for forest products and services and sustainably 
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manage their forest, and in some cases expand their forest cover; 
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d) Encourage private investment in sustainable forest management by providing 
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a stable and transparent investment environment within an adequate regulatory 
framework that also encourages the re-investment of forest revenues into 
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sustainable forest management; and 
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e) Operationalize an investment promotion entity taking into account the 
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functions and circumstances under which such an entity would operate such as 
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its scope in relation to existing financial mechanism. 
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SEC. 67. Fees from Payment for Environmental Services (PES).- The SFFO . 
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shall formulate a certain value to environmental services and establish appropriate 
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pricing, institutional and redistribution systems that will lead to sustainable and socially 
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optimal land use practices. PES is a form of payment for ecosystem services as a 
method of internalizing the positive externalities associated with a given ecosystem or a 
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specific resource use. 
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CHAPTER XIV  
OFFENSES AND PENALTIES  
SEC. 68. Non-Establishment of Tree Parks/Communal Forests.- Any city, 
municipality or subdivision owner who fails to establish tree parks as provided in 
Sections 29 and 30 herein shall be punished by a fine of not less than One Hundred 
Thousand Pesos (Pi 00,000.00) nor more than' Five Hundred Thousand Pesos 
(P500,000.00). The subdivision plan will not be given approval until guidelines have 
been formulated and funds have been allocated for the purpose. 
SEC. 69. Harvesting, Gathering and/or Collecting Timber or Other Forest 
Products Without Authority.- Any person who shall harvest, cut, gather, collect, or 
remove timber or other forest products from any forestland, or naturally grown timber 
inside alienable and disposable public land and private lands except as provided in 
Section 11 hereof, or 
forest resources in alienable and disposable lands without 
authority from the Secretary or found to possess the same without pertinent required 
legal documents shall be punished by imprisonment ranging from prision mayor 
minimum period to reclusion temporal minimum period and/or a fine equivalent to ten 
(10) times the value of the said forest product but not less than Fifty Thousand Pesos 
(150,000.00): Provided, That in the case of partnerships, associations or corporations, 
the president, managing partner, and general manager shall be held liable, and if such 
officer is an alien, he shall, in addition to the penalty, be deported without further 
proceedings on the part of the Bureau of Immigration and Deportation. Offenders who 
are public officials shall be deemed automatically dismissed from office and 
permanently disqualified from holding any elective or appointive position. 
All timber or any forest products cut, gathered, collected, removed, or possessed 
and all the conveyances, machinery, equipment, implements, work animals, and tools 
used in connection with this violation shall be seized and confiscated in favor of the 
government. 
SEC. 70. Illegal Cutting as an Act of Economic Sabotage.- Any of the acts 
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enumerated in the preceding section committed by an armed group or by any group 
through organized and systematic manner, for commercial purposes, shall be 
considered an act of economic sabotage punishable by reclusion perpetua. 
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The commission of any of the prohibited acts by two or more individuals with or 
without the aid of any mechanical device shall constitute a prima facie evidence that the 
act is organized and systematic. 
Any permittee/agreement holder who shall buy logs from unlicensed loggers or 
loggers operating without permits shall be considered in violation of this Act and, upon 
conviction, shall also be punished with reclusion perpetua. 
SEC. 71. Use of //legally Cut Timber in Government Infrastructure Projects.­
Contractors of government infrastructure projects shall obtain certification from the 
Department that the logs or lumber to be used therein were obtained from legitimate 
sources. The use of illegally cut naturally grown timber in government infrastructure 
projects shall be sufficient cause for the imposition of penalties provided in Sec. 69, on 
harvesting of forest products without authority, and Sec. 70, on illegal cutting as an 
economic sabotage, including the withholding of the payment to the contractor. 
SEC. 72. Damage to Residual Trees.- To ensure the sustainability of the natural 
forests, adequate number of residual trees shall be marked, to be retained as part of the 
managed forests and as the future timber crop, before any harvesting operation shall 
commence. Any marked residual tree that is damaged during such operation is subject 
to a fine equivalent to four (4) times the regular forest charges. 
. 
SEC. 73. Grazing Livestock on Forestlands Without a Permit.- Any person 
found to have caused the grazing of livestock in forestlands and grazing lands without 
an authority under a lease or permit to graze, upon conviction, shall be penalized with 
imprisonment of not less than two (2) years nor more than four (4) years and a fine 
equivalent to ten times the regular rentals due in addition to confiscation of the livestock 
and all improvements introduced in the area in favor of the government: Provided, That 
in case the offender is a corporation, partnership, or association, the officer or director 
thereof who directly caused or ordered such shall be liable. In case the offender is a 
public officer or employee, he shall, in addition to the above penalties, be deemed 
automatically dismissed from office and permanently disqualified from holding any 
elective or appointive position in the government service. 
SEC. 74. Unlawful Occupation or Destruction of Forestlands.- Any person 
who, without authority from the Secretary. enters and occupies or possesses, or 
engages in kaingin-making for his own private use or for others, any forestland or 
grazing land, or in any manner destroys such forestland or part thereof, or causes any 
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damage to the timber stands and other forest product found therein, or assists, aids or 
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therein, or refuses lawful orders to vacate the area when ordered to do so shall, upon 
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conviction, be punished with penalties in the amount of not less than One Hundred 
Thousand Pesos (P100,000.00) nor more than. Five Hundred Thousand Pesos 
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(P500,000.00) and imprisonment of not less than 'six (6) years nor more than twelve 
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(12) years for each offense: Provided, That in the case of an offender found guilty of 
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kaingin-making, the penalty shall be imprisonment of not less than ten (10) years nor 
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more than twelve (12) years and a fine equivalent to eight times the regular forest 
charges due on the forest products destroyed without prejudice to payment of the full 
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cost of rehabilitation of the occupied areas as determined by the Department: Provided, 
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further, That the maximum of the penalty prescribed herein shall be imposed upon the 
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offender who repeats the same offense, and dou~le the maximum penalty upon the 
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offender who commits the same offense for the third time or more. In all cases, the court 
shall further order the eviction of the offender from the area occupied and the forfeiture 
16. to the government of all improvements made ther~in, including all vehicles, domestic 
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animals and equipment of any kind used in the commission of the offense. If not 
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suitable for use by the Department, said improvements, vehicles, domestic animals and 
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equipment shall be sold at public auction, the proceeds from which shall accrue to the 
SFDF. If the offender is an alien, he shall be deported after serving his sentence and 
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payment of fines, without any further proceedings. An offender who is a government 
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officer or employee, shall. in addition to the above penalties, be deemed automatically 
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dismissed from office and permanently disqualified from holding any elective or 
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appointive position in the government service. 
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SEC. 75. Illegal Conversion of City or MuniCipal Parks, Communal Forests, 
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and Tree Parks in Subdivisions.- Any person found to have converted or caused the 
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conversion of a city or municipal park or communal forest, or tree parks within 
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subdivisions established pursuant to Sec. 29 and Sec. 30 herein and Section 2 of 
Presidential Decree No. 953. requiring the planting of trees in certain places, into other 
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uses including the construction of permanent boildings therein, or in any manner 
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destroys or causes any damage to the timber stands and other forest product found 
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therein, or assists, aids or abets another person to do so, or sets a fire, or negligently 
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permits a fire to be set therein, upon conviction, shall be penalized by imprisonment of 
six (6) years and one (1) day to twelve (12) years or a fine of not less than One Hundred 
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Thousand Pesos (P100,OOO.00) nor more than Five Hundred Thousand Pesos 
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(P500,000.00). or both fine and imprisonment at the discretion of the Court. The 
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offender shall likewise be imposed a fine equivalent to eight times the commercial value 
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of the forest products destroyed without prejudice to payment of the full cost of 
rehabilitation of the areas as determined by the Department: Provided, further, That the 
maximum of the penalty prescribed herein shall be imposed upon the offender who 
repeats the same offense, and double the maximum penalty upon the offender who 
commits the same offense for the third time or more. The court shall further order the 
forfeiture to the government of all improvements made therein, including 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 improvements, vehicles, domestic animals 
and equipment shall be sold at public auction, the proceeds from which shall accrue to 
the SFDF. An offender who is a government officer or employee, in addition to the 
above penalties, shall be deemed automatically dis'missed from office and permanently 
disqualified from holding any elective or appointive position in the government service. 
SEC. 76. Misdeclaration or Falsification of Reports on Forest Resource 
Inventory, Scaling, and Survey by a Governmen.t Official or Employee. - Any public 
officer or employee who knowingly misdeclares or falsifies reports pertaining to forest 
resource inventory. scaling, survey, and other similar activity which are contrary to the 
criteria and standards established in the rules and regulations promulgated by the 
Secretary therefor, after an appropriate administrative proceeding, shall be dismissed 
from the service with prejudice to re-employment. Upon conviction by a court of 
competent jurisdiction, the same public officer or employee shall further suffer an 
imprisonment of not less than eight (8) years nor more than twelve (12) years and a fine 
of not less than One Hundred Thousand Pesos (P100,000.00) nor more than Five 
Hundred Thousand Pesos (P500,000.00) and the termination of license to practice 
forestry if the offender is a professional or registered forester: Provided, That the 
inventory, survey, scale, clqssification, and similar reports referred herein shall be 
rendered null and void. 
SEC. 77. Unlawful Operation of Sawmills.- Any person operating a sawmill or 
mini-sawmill without authority from the Secretary, shall be punished by a fine of not less 
than One Hundred Thousand Pesos (P100,000.00) and confiscation of the sawmill or 
mini-sawmill and complementary equipment in favor of the government. 
SEC. 78. Unlawful Operation of Wood Processing Plants and Downstream 
Forest~Based Industries.-
Any person operating a wood processing plant or 
downstream forest-based industry without authority from the Secretary, shall be 
punished by, upon conviction by a court of competent jurisdiction, imprisonment of not 
less that eight (8) years nor more than twelve (12) years and a fine of not less than Five 
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Hundred Thousand Pesos (P500,000.00) and confiscation of the wood processing plant 
and complementary equipment in favor of the government. The Department shall 
promulgate the necessary guidelines, subject to the provisions of this Act, that will 
define the terms and conditions for the operation ·of a wood processing plant and/or 
other downstream forest-based industries. 
SEC. 79. Prohibition on the Issuance of Tax Declaration on Forestlands. All 
tax declaration issued over forestland shall be considered null and void. Any local 
government official or employee who issues a tax declaration for any purpose on any 
part of forestlands, upon conviction, shall be penalized with imprisonment for a period of 
not less than four (4) years nor more than eight (8) years and a fine of not less than One 
Hundred Thousand Pesos (P100,000.00) nor more than Five Hundred Thousand Pesos 
(P500,000.00) and perpetual disqualification from holding an elective or appointive 
office. 
SEC. 80. Unlawful Possession of Implements and Devices Used by Forest 
Officers.- Any person found possessing or using implements and devices used by 
forest officers shall be penalized with imprisonment of not less than eight (8) years nor 
more than twelve (12) years and a fine of not less than One Hundred Thousand Pesos 
(P100,000.00) nor more than Five Hundred Thousand Pesos (P500,000.00) in addition 
to the confiscation of such implements and devices and the automatic cancellation of 
any license agreement, license, lease or permit. 
Any forest officer who willingly allowed unauthorized person(s) to use these 
implements and devices under his care shall be penalized with imprisonment of not less 
six (6) years and one (1) day to no more than twelve (12) years and a fine of not less 
than One Hundred Thousand Pesos (P100,000.00) nor more than Five Hundred 
Thousand Pesos (P1 00,000.00). 
In addition, the said forest officer shall be dismissed from the service with 
prejudice to reinstatement and with perpetual disqualification from holding an elective or 
appointive position. 
SEC. 81. Unauthorized Introduction of Logging Tools and Equipment Inside 
Forestlands.- It shall be unlawful for any person or entity to possess, bring, or introduce 
any logging tools or equipment inside forestlands without prior authority, from the 
Secretary or his duly authorized representative. Any person found guilty of illegal 
possession of said logging tools or equipment shall be liable to imprisonment of six,(6) 
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years and one (1) day to twelve (12) years or a fine of not less than One Hundred 
Thousand Pesos (Pi 00,000.00) nor more than Five Hundred Thousand Pesos 
(P500,000.00) or both imprisonment and fine, and confiscation of said logging tools and 
equipment in favor of the government. 
SEC. 82. Non-Payment and Non-Remittance of Forest Charges.- Any person 
who fails to pay the amount due and payable as forest charges to the government shall 
not be allowed to transport, convey, sell, nor use the timber or forest product. Moreover, 
failure to pay within thirty (30) days upon assessment of forest charges shall be a 
ground for confiscation of the said timber or forest product in favor of the government. 
Any person who fails or refuses to remit to the proper authorities said forest charges 
collectible pursuant to the provisions of this Act or the National Internal Revenue Code, 
as amended, or who delays, obstructs or prevents the same, or who orders, causes or 
effects the transfer or diversion of the funds for purposes other than those specified in 
said Acts shall, upon conviction, be imprisoned for not less than six (6) years nor more 
than ten (10) years and fined from One Hundred Thousand Pesos (P100,OOO.00) nor 
more than Five Hundred Thousand Pesos (P500,OOO.00). If the offender is a 
corporation, partnership, or association, the officers and directors thereof shall be liable. 
SEC. 83. Institution of Criminal Action by Forest Officers.- Any 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. The tools, 
animals, equipment and conveyances used in committing the offense, and the forest 
products cut, gathered, taken or possessed by the offender in the process of committing 
the offense shall also be seized and confiscated in favor of the government. The 
arresting forest officer shall thereafter deliver within six (6) hours from the time of arrest 
or seizure both the offender and the confiscated forest products, conveyances, tools 
and equipment, or the documents pertaining to the same, and file the proper complaint 
with the appropriate official designated by law to conduct preliminary investigation and 
file information in court. If the arrest and seizure are made in the forest far from 
authorities designated by law to conduct preliminary investigations, the delivery to and 
filing of the complaint with the latter shall be done within a reasonable time sufficient for 
ordinary travel from the place of arrest to the place of delivery. The seized forest 
products, materials, conveyances, tools and equipment shall be immediately disposed 
of in accordance with the regulations promulgated by the Secretary. 
The Secretary may deputize any agency, barangay official, or any qualified 
person to protect the forest and exercise the powers or authority provided for in the 
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.". 
" 
preceding paragraph. Reports and complaints regarding the commission of any of the 
offenses defined in this chapter not committed in the presence of any forest officer or 
any of the deputized officers shall immediately be reported to the forest officer assigned 
in the area where the offense was allegedly committed. Thereupon, the investigating 
officer shall receive the evidences supporting the 'report or complaint and submit the 
same to the appropriate official authorized by law to conduct a preliminary investigation 
of criminal cases and file the information in court. 
The Secretary of Justice shall deSignate in every city and province a special 
prosecutor who shall file charges against forest violators to ensure their speedy 
prosecution. 
SEC. 84. Liability of Custodian of Confiscated Forest Products.- Any public 
officer who fails to produce the timber or forest products, including tools, conveyances, 
equipment, and devices in his custody pursuant to a seizure or confiscation made 
thereon, or who shall appropriate, take, misappropriate, or shall permit another person 
to take such timber forest products wholly or partially, shall suffer the penalty provided 
for in Article 217, on Malversation of Public Funds or Property, of the Revised Penal 
Code. In addition, the said public officer shall be dIsmissed from service with prejudice 
to reinstatement and with perpetual disqualification from holding any elective or 
appointive office. 
CHAPTER XV 
ADMINISTRATIVE PROVISIONS 
SEC. 85. Strengthening of the Forest Management Sector.- In order to 
effectively implement the provisions of this Act, the FMB shall be transformed into a line 
bureau with functions clearly defined and enumerated under the implementing rules and 
regulations of this Act. To ensure that the scientific practice of forestry in the country is 
properly implemented, only registered foresters shall be appointed to the positions of 
Director and Assistant Director and Regional Directors of the FMB as well as to all other 
positions where the services of professional foresters are required in accordance with 
existing laws and the relevant rules and regulations issued by the Civil Service 
Commission (CSC) and the Professional Regulations Commission (PRC). 
SEC. 86. Authority of the Secretary on the Use of Forest Resources.- The 
utilization of forest resources from natural forests. found in forestlands, government­
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established reservations, and all other lands including ancestral domains or tinder the 
management of other government agencies shall· be prohibited unless covered by 
permits issued by the Department: Provided, That in the case of ancestral lands and 
domains, the terms of the agreement with the concerned indigenous cultural community 
shall likewise govern. 
SEC. 87. Administrative Authority of the Secretary or his Duly Authorized 
Representative to Order Confiscation.- In all cas'es of violations of this Act or other 
forest laws, rules, and regulations, the Secretary or his duly authorized representative 
may order the confiscation of forest products illegally harvested, cut, gathered, removed 
or possessed or abandoned, and all conveyances used either by land, water, or air as 
well as all machinery, equipment, implements, and tools used in the commission of the 
offense and to dispose of the same in accordance 'with pertinent laws, regulations, or 
policies on the matter. 
If the confiscated forest prodUcts are in danger of deteriorating, the Secretary 
may order that the same be sold at public auction even before the termination of the 
judicial proceedings, with the proceeds kept in trust.to await the outcome of the judicial 
proceedings. 
No court of the Philippines shall have jurisdiction to issue any Writ of Replevin, 
restraining order, or preliminary mandatory injunction in any case involving or growing 
out of any action by the Secretary or his duly authorized representative in the exercise 
of the foregoing administrative authority. 
SEC. 88. Administrative Authority of the Secretary to Impose Fines.- In all 
cases of violations of this Act and other forest laws. rules and regulations where fine is 
the principal penalty, the Secretary, after consultation with the forest-based industries 
affected, is hereby authorized to impose administratively the penalty consisting of the 
amount and the schedules of the fine which shall be officially published in a national 
newspaper of general circulation. 
SEC. 89. Authority of Forest Officers.- When in the performance of their official 
. 
duties, forest officers or other government officials or employees duly authorized by the 
Secretary shall have free entry into areas covered by a contract, agreement, license, 
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lease or permit. Forest officers are authorized to inspect and to open closed vans 
suspected to contain illegally harvested, collected or transported forest product: 
Provided, That it is done in the presence of the shipper· or consignee or two (2) 
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responsible public officials in the locality. Forest officers are authorized to administer 
oath, take acknowledgment in official matters connected with the functions of their 
office, or take testimony in official investigations conducted under the authority of this 
Act and the implementing rules and regulations issued by the Secretary pursuant 
thereof. 
SEC. 90. 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, 
contract, or agreement to utilize forest resources to determine compliance with the 
terms and conditions stipulated in the grant, contract or agreement, this Act, and 
pertinent laws, rules, and regulations. 
SEC. 91. Other Incentives.~ Fifty percent (50%) of the value of confiscated materials 
shall be used as incentives to informants and members of multi-sectoral forest 
protection councils, including Department personnel. Additional incentives may be 
provided to personnel of the Department, in addition to those provided under the 
Government Service Insurance System (GSIS) or Workmen's Compensation Law. They 
shall also be entitled to free legal assistance should legal cases be filed against them in 
the performance of official duties. 
SEC. 92. Citizens' Suits. - For purposes of enforcing the provisions of this Act or its 
. 
implementing rules and regulations, any citizen may file an appropriate civil, criminal or 
administrative action in the proper court against: 
a) any person who violates or fails to comply with the provisions of this Act or its 
implementing rules and regulations; or 
b) the Department or other implementing agencies with respect to orders, rules and 
regulations issued inconsistent with this Act; and 
c) any public officer who willfully or grossly neglects the performance of an Act 
specifically enjoined as a duty by this Act or its implementing rules and regulations, or 
abuses his authority in the performance of his duty, or in any manner, improperly 
performs his duties under this Act or its implementing rules and regulations: Provided, 
however, That no suit can be filed until after a thirty-day notice has been given to the 
public officer and the alleged violator concerned C!nd no appropriate action has been 
taken thereon. 
The court shall exempt such action from the payment of filing fees, and shall, likewise, 
upon prima facie showing of the non-enforcement or violation complained of, exempt 
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the plaintiff from the filing of an injunction bond for the issuance of a preliminary 
injunction. In the event that the citizen's suit sh<?uld prevail, the Court shall award 
reasonable attorney's fees, moral damages, and litigation costs as appropriate. 
SEC. 93. Suits Against Public Participation and the Enforcement of this Act.­
Where a suit is brought against a person who filed an action as provided in Section 92 
herein, or against any person, institution or government agency that implements this 
Act, it shall be the duty of the investigating prosecutor or the Court, as the case may be, 
to immediately make a determination not exceeding thirty (30) days whether said legal 
action has been filed to harass, vex, exert undue pressure, or stifle such legal actions of 
the person complaining for the enforcement of the provisions of this Act. Upon
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determination thereof, evidence warranting the same, the Court shall dismiss the case 
and award attorney's fees and double damages. This provision shall also apply and 
benefit public officers who are sued for acts committed in their official capacity, there 
being no grave abuse of authority, and done in the course of enforcing this Act. 
SEC. 94. Protection to Witnesses in Cases Involving Violation of Forestry Laws.­
Witnesses to violations of this Act or other forestry laws and regulations, including the 
immediate members of the family of said witnesses shall be given protection, security 
and benefit, subject to the proVisions of Republic Act No. 6981, otherwise known as 
"The Witness Protection, Security and Benefit Act" and its implementing rules and 
regulations. 
SEC. 95. Rule-Making Authority.- In consultation with the NCIP, the DILG, the 
Department of Finance, the leagues of provinces, cities, and municipalities, and other 
government agencies mentioned herein, the Department shall promulgate the 
implementing rules and regulations within one (1) year from the effectivity of this Act. 
SEC. 96. Congressional Oversight Committee on the Sustainable Forest 
Management Act.- There is hereby created a Congressional OverSight Committee 
composed of seven (7) members from the Senate Committee on Environment and 
Natural Resources and seven (7) members from the House of Representatives 
Committee on Natural Resources. The Chairpersons of the corresponding committees 
shall also be the Co-chairpersons of the Oversight Committee. 
The secretariat of the Oversight Committee shall be drawn from the existing secretariat 
personnel of the committees comprising the overqight and the funding shall be taken 
from the appropriations of both the House of Representatives and the Senate. 
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SEC. 97. Transitory Provision.- Upon the approval of this Act, the Department shall 
evaluate the conditions of all forestlands covered by existing TLAs, licenses, or permits 
and the like, which shall be allowed to continue until their expiry unless terminated for 
cause, such as: 
a) when the licensee has been found to be a dummy; 
b) when the licensee has been found to be farming out the license or receiving royalty of 
any kind; 
c) when the licensee has been found to be cutting or operating outside the limits of the 
license or within an area specifically designated or sub-classified by the Department as 
protection forestland; 
d) when the licensee has been found to be allowing illegally-cut timber to be invoiced 
under its license; 
e) when the licensee has been found to be inducing any other person to log in other 
areas in violation of the Department's regulations; 
f) failure to submit to the Department the required copies of auxiliary invoices 
covering timber manifested under the license; 
g) failure to leave undamaged an adequate stand of young trees for residual growing 
stock or for seeding purposes and to employ the necessary number of laborers needed 
for timber management work; 
h) when the licensee has, for the third time after written warning, intentionally 
cut, injured or destroyed trees marked by forest officers and unmarked poles and 
saplings for future growing stock, seeding, or protection; 
i) failure to employ the required number of concession guards as determined 
by the Department; 
j) failure to protect the concession or license area or parts thereof from being converted 
into kaingin, or from illegal timber cutting, and otherforms of trespass; 
k) when the licensee has been found to have failed to put up the processing plant for 
the area within the required period, when made a condition in the award of the area and 
the grant of the license; 
I) failure to pay pending forest accounts; 
m) failure to maintain and make conspicuous the approved and established boundaries 
of his concession or license area; 
n) failure to suspend operations within a conflicted area when so required by the 
Department or its authorized representatives, pending final decision of the conflict; 
0) when the license is found to have been obtained through fraud or misrepresentation 
or by false, misleading statements; 
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p) allowing a contractor to operate the license area <;>r concession; and 
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q) violation of any of the terms and conditions of the license, the NIPAS Act and its 
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implementing rules and regulations, the Wildlife Resources Conservation and Protection 
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Act, or any of the provisions of law on internal revenue and labor, and Department 
regulations. 
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Any of the violations enumerated above will be cause for the immediate cancellation of 
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CHAPTER XVI 
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FINAL PROVISIONS 
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SEC. 98. Separability Clause. -
Should any provision herein be declared 
unconstitutional or invalid, the same shall not affeyt the validity or legality of the other 
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provisions. 
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SEC. 99. Repealing Clause. - Subsections (b), (d), (e), (f), (g), and (i) of Section 4 of 
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Act No. 3915; Republic Act Nos. 460 and 7161; Presidential Decree Nos. 705,1153, 
1515,1559,1775 and 1998; Letter of Instruction No. 818; Executive Order Nos. 277, 
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series of 1987, and Executive Order No. 725, series of 1981, are hereby repealed, and 
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all laws, orders, rules and regulations, or any part thereof which are inconsistent 
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herewith are likewise hereby repealed or amended accordingly: Provided, That this Act 
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shall not in any manner amend the IPRA and the NIPAS law. 
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SEC. 100. E.ffectivity. - This Act shall take effect thirty (30) days from the date of its 
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publication in the Official Gazette or in at least two (2) national newspapers of general 
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circulation. 
Approved, 
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