SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
) 
) 
) 
SENATE BILL NO. __ 
1_0_9_4 
~~~~lr:l,.tt" 
",'ihrr t/ \fIji -:Lc,dn:U 
,IUL 
PA :34 
INTRODUCED BY SENATOR JOSEPH VICTOR G. EJERCITO 
EXPLANATORY NOTE 
The Philippine Forest is a rich natural reserve and source of living 
for many. With its vast natural reserves, there are people who never run 
out of ideas on how they can extract these resources thinking that our 
forest is unlimitedly favored. When our forests suffer, natural disasters 
also happen like landsides and flooding; temperature rises and worse, 
living creatures are left with no home. These are some of the reasons why 
we need to clearly define our role in protecting our forests. The roles of 
the stakeholders not just in protecting but rehabilitating our forest are 
also very important. 
It is estimated that from 2000 to 2005, the Philippines lost 2.1 
percent of its forest every year, the second fastest rate in Southeast Asia 
(next to Burma) and the seventh in the world.! The Philippines has lost 
at least 80 percent of its original forest cover since the 16thcentury. This 
has also earned the notoriety in Southeast Asia as the only country with 
the thinnest forest cover.2 
These alarming scenarios are brought about by illegal activities. 
Illegal logging and uncontrolled mining had been the cause of massive 
destruction in our forest to start with. This destruction affected our 
wildlife and some of our indigenous people who depend their source of 
living in our forests. 
This Act shall cover the protection, rehabilitation and proper 
management of our forest. Aside from this, this Act shall protect our 
forests by clearly defining forest boundaries and limitations. This shall 
also set up an information system to upgrade our control and in 
monitoring our forests. In addition, this Act will also enjoin the 
participation of those who can greatly help improve our forest situation 
by setting up incentives and gratification and define penalties to those 
who fail to work hand in hand for our forest conservation. 
It is for these reasons that the approval of this bill is fervently 
sought. 
JOSEPH VICTOR G. EJERCITO 


SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
SENATE BILL NO. 
) 
) 
) 
1094 
~lt~"·'\'~·.· 
,~~ i,l.,tll. 
'i~jhr"r ~lf Hp' ~:r",:,,~br~ 
'13 
JUL "4 
D~ "4 
i~ 
i q '- ' 
REf t ; ..•. flY: --f-. 
INTRODUCED BY SENATOR JOSEPH VICTOR G. EJERCITO 
AN ACT 
PROVIDING FOR THE PROTECTION, REHABILITATION AND 
SUSTAINABLE MANAGEMENT OF FOREST ECOSYSTEM AND FOR 
OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
ARTICLE I 
BASIC FORESTRY POLICIES 
SECTION 1. Short Title. -
This Act shall be known as the 
"Sustainable Forest Management Act of 2013". 
SECTION 2. Declaration of Policy. - Pursuant to the provisions 
of the Constitution to promote the general welfare and social justice in all 
phases of national development, protect and advance the right of the 
Filipino people to a balanced and healthful ecology in accord with the 
rhythm and harmony of nature, and to conserve and develop the 
patrimony of the nation, the State hereby adopts the following policies 
relative to the management, development and conservation of forest 
ecosystem and the resources therein: 
(a) 
Permanency of Forest Land. - The specific limits of forest 
lands shall be fixed, delineated and demarcated on the 
ground and thereafter shall not be altered except through an 
act of Congress. 
(b) 
Forest Resources to Promote the Common Good. - The use 
and conservation of forest lands and the resources therein 
shall bear social, ecological, biological and economic 


functions, responsibility, and accountability to promote the 
common good of the present and future generations. 
(c) 
Climate Change Mitigation or Adaptation. - The mitigation of 
or adaptation to climate change shall be vital components in 
the conservation, management, protection and development 
of forest lands and natural resources. 
(d) 
Good Governance. - Good governance shall be practiced in 
the management, conservation, protection and development 
of forest lands and the resources therein. 
In carrying out the above policies, the following strategies shall be 
pursued: 
(1) Categorization of Forest Lands. -
Forest lands shall be 
categorized as protection or production forest lands in order to 
guide managers on the intent of development and to obtain the 
most beneficial use for common good; 
(2) Watershed as the Basic Forest Land Management Unit. -
Protection and production forest lands shall be partitioned and 
planned into forest management units based on natural 
topographic and hydrologic boundaries and shall consider the 
watershed continuum approach which adopts a holistic inter-
relationship between the upstream and downstream areas in 
order to carry out efficiently the rational ecological treatment of 
the entire landscape from the mountain down to the coast; 
(3) Community-Based Forest Management (CBFM) Founded on 
Empowerment of Local Communities and Indigenous Peoples 
with Multi-Sectoral Participation and Support. - Vesting access 
rights 
and 
responsibilities 
to 
forest-dependent 
local 
communities and indigenous peoples to undertake sustainable 
conservation, protection, management and development of 
forest ecosystems shall have precedence over other strategies. 
The CBFM shall have the support of the Department of 
Environment and Natural Resources, the National Commission 
on Indigenous Peoples (NCIP) and the local government units 
(LGUs). The participation of the private and other sectors in the 


CBFM shall be encouraged and promoted m conformity with 
pertinent regulations; 
(4) Protection and Rehabilitation of Forest Ecosystem as Priority 
Concerns. -
The protection of forest ecosystem, as well as 
rehabilitation through reforestation and afforestation of the 
degraded forest ecosystem, shall be given priority to mitigate 
climate change, improve and conserve biodiversity, enhance 
ecosystem functions and services, and provide long-term 
economic benefits; 
(5) Recognition of the Indigenous Peoples' Sustainable Forest 
Management Practices. - The management of forest lands in 
ancestral lands and domains shall recognize and promote the 
sustainable forest management practices of the indigenous 
peoples; 
(6) Security of Tenure of Stakeholders. - Pursuant to the principles 
of sustainable and multi-use forest management and equitable 
access to forest resources, a secured tenure shall be guaranteed 
to stakeholders concerned; 
, 
(7) Investment and Public-Private Partnership. - Investments and 
public-private partnership shall be harnessed through favorable 
incentives that promote the acceleration of the conservation and 
development of the forest lands and the resources therein; and 
(8) Professionalism in Forest Service. - A dynamic professional and 
people-oriented forest service shall be established and fully 
supported by the government. 
SECTION 3. Scope and Coverage. - The provisions of this Act 
shall apply to all forest lands and forest resources found therein: 
Provided, That all forests and forest resources found in protected areas 
established under the National Integrated Protected Areas System 
(NIPAS) shall be sustainably managed and developed following the 
provisions of Republic Act No. 7586 or the NlPAS Act of 1992: Provided, 
further, That the rights of indigenous cultural communities or 
indigenous peoples to their ancestral lands and domains shall be 
respected, and all such lands within ancestral domains and ancestral 


land claims shall be managed and developed in accordance with this Act 
and the provisions of Republic Act No. 8371 or "The Indigenous Peoples 
Rights Act of 1997". 
All 
forest lands and forest resources therein under the 
administrative jurisdiction of the Autonomous Region of Muslim 
Mindanao (ARMM) shall be managed, developed and conserved in 
accordance with this Act and the Regional Sustainable Forest 
Management Act of 2003 of the ARMM. 
SECTION 4. Definition of Terms. - As used in this Act, the term: 
(a) 
Adaptation shall refer to the adjustment in natural or 
human systems in response to actual or expected climatic 
stimuli or their effects, which moderates harm or exploits 
beneficial opportunities. 
(b) 
Afforestation shall refer to the planting of trees or the 
artificial establishment of forest in areas that were not 
previously forested. 
(c) 
Agro-forestry shall refer to a strategy for the sustainable 
management of lands which 
increases 
their 
overall 
productivity 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 
population. 
(d) 
Ancestral domain shall refer to all areas generally belonging 
to indigenous cultural communities or indigenous peoples 
(ICCs/IPs) as defined in Republic Act No. 8371. 
(e) 
Ancestral lands shall refer to lands occupied, possessed and 
utilized by members of the ICCs/IPs as defined in Republic 
Act No. 8371. 
(f) 
Biological diversity or Biodiversity shall refer to the 
variability among living organisms including, inter alia, 
terrestrial, marine and other aquatic ecosystems and the 


ecological complexes of which they are part. This includes 
diversity within and between species and ecosystems. 
(g) 
Chain-of-Custody (CoC) shall refer to the path that forest 
products take from the forest to the consumer, including all 
manufacturing, transformation and distribution links. 
(h) 
Climate change shall refer to a change in climate that can be 
identified by changes in the mean and/ or variability of its 
properties and that persists for an extended period, typically 
decades or longer, whether due to natural variability or as a 
result of human activity. 
(i) 
Communal forest shall refer to a tract of forest land set aside 
and established for and under the protection, administration 
and management of a city, municipality or barangay as a 
source of wood material for fuel, shelter, and manufactured 
products; as source of water for the community; and as an 
area for ecotourism and/or environmental protection or 
socioeconomic projects of LGUs consistent with sustainable 
development. 
(j) 
Co-management shall refer to the process of management in 
which government shares power with resource users, with 
each given specific rights and responsibilities relating to 
information and decision-making. 
(k) 
Conservation 
shall 
refer 
to 
planned 
protection 
and 
management of forests and their resources so as to prevent 
waste and ensure future use. 
(1) 
Conveyance shall refer to any vehicle, vessel, device or 
animal used in gathering or transporting forest products. 
(m) 
Co-production agreement shall refer to an agreement or 
contract, entered into by and between a qualified person and 
the government, for the former to develop, utilize and 
manage consistent with the principles of sustainable 
deVelopment, land or portion of forest land wherein both 
parties agree to provide inputs and share the prodUcts or 
equivalent cash value. 


(n) 
Criteria and indicators shall refer to the set of management 
tools to describe and assess a forest state or situation that 
should 
be 
met 
to 
comply 
with 
sustainable 
forest 
management. 
(0) 
Degraded forests shall refer to all forest lands containing less 
than five (5) square meters in basal area per hectare of all 
tree species with diameters at breast height or diameter 
above buttress of less than sixty-five (65) centimeters. 
(p) 
Delimitation shall refer to the establishment of permanent 
boundaries between forest lands, national parks/protected 
areas and agricultural lands as a result of demarcation. 
(q) 
Delineation shall refer to the establishment of boundaries 
between forest lands, national parks/protected areas and 
agricultural lands as a result of a conduct of site 
investigation, 
reconnaIssance and field 
verification in 
accordance with the criteria set by the Department of 
Environment and Natural Resources. 
(r) 
Demarcation shall refer to the establishment of boundaries 
using visible markers, monuments or known natural 
features/landmarks, among others, as a result of the actual 
ground delineation. 
(s) 
Denuded forest lands shall refer to forest lands that are 
devoid of forest tree cover. 
(t) 
Department shall refer to the Department of Environment 
and Natural Resources. 
(u) 
Downstream forest-based industry shall refer to any 
industry other than the primary processing plants that uses 
timber or other forest products as its raw materials or inputs 
to 
produce 
higher value-added 
forest 
products 
like 
furnitures, handicrafts and the like. 
(v) 
Ecosystem shall refer to living communities, the environment 
they live in, and their interactions. 
(w) 
Ecotourism shall refer to a nature-based activity managed by 
the local community with government support whose 


primary goals are conservation and enhancement of natural 
resources while providing economic benefits to the local 
community without endangering the sociocultural practices 
of its people .. 
(x) 
Environmental Impact Assessment (EIA) shall refer to the 
process of predicting the likely environmental consequences 
of implementing a project or undertaking and designing the 
appropriate 
preventive, 
measures. 
mitigating 
or 
enhancement 
(y) 
Environmental Impact Statement (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 socioeconomic environment and designing the 
appropriate mitigating and enhancement measures. 
(z) 
Expropriation shall refer to the act of buying back by the 
State when public interest so requires, of forest areas under 
private 
or 
non-state 
ownership, 
subject 
to 
just 
compensation. 
(aa) 
Forest shall refer to an ecosystem or an assemblage of 
ecosystems dominated by trees and other woody vegetation; 
a community of plants and animals interacting with one 
another and its physical environment. A forest may be 
natural or established by man as in plantation. 
(bb) 
Forest auditing shall refer to the systematic, documented 
verification process of objectively obtaining and evaluating 
audit evidence to determine whether specified activities, 
events, conditions, management systems, or information 
conform with Sustainable Forest Ecosystem Management 
(SFEM) principles, criteria and indicators. 
(cc) 
Forest certification shall refer to the Department system of 
certifYing forest management units (FMUs) as fully satisfying 
the forest certification standards consisting of the SFEM 
principles, criteria and indicators based on third-party initial 


forest auditing leading to the award of a forest certificate to 
the FMU and subsequent annual forest audit to assess the 
maintenance of the forest certificate. 
(dd) 
Forest charges shall refer to the levy imposed and collected 
by the government on naturally growing timber and other 
forest products cut, harvested or gathered from the forest 
lands and from alienable and disposable (A&D) lands. 
(ee) 
Forest-based industries shall refer to various industries that 
are dependent on raw materials or products derived from 
forests such as, but not limited to, wood, rattan, bamboo, 
vines, latex, resins, saps, essences, fruits, flowers, or wild 
flora and fauna. 
(ff) 
Forest ecosystem shall refer to a dynamic complex of plant, 
animal and microorganism communities and their abiotic 
environment interacting as a functional unit where trees are 
a key component system. Humans, with their cultural, 
economic and environmental needs are integrated therein. 
(gg) 
Forest ecosystem goods and services shall refer to goods and 
services 
provided 
by 
a 
forest 
ecosystem 
including 
provisioning services (such as food, fresh water, bio-
chemicals, wood, fiber, fodder, and energy), supporting 
natural processes (such as biodiversity 
pollination, soil formation and nutrient 
infiltration, 
production 
of 
atmospheric 
maintenance, 
cycling, water 
oxygen 
and 
enhancement of microclimate), regulating environmental 
processes (such as water flow regime and soil erosion 
regulation, carbon and climate regulation, natural hazards 
protection, air quality regulation, and pest and disease 
regulation), and sustaining cultures (such as cultural 
identity and integrity, spiritual values, aesthetic and 
recreational 
values, 
ecotourism 
and 
local 
knowledge 
systems). 
(hh) 
Forest lands shall refer to lands of the public domain that 
have been classified as such and all unclassified lands of the 
public domain. This excludes national parks, mineral lands 
and agricultural lands. 


(ii) 
Forest line shall refer to the boundary on the ground 
between the forest lands and other lands of the public 
domain. 
(jj) 
Forest Management Unit (FMU) shall refer to a clearly 
defined forest area, managed under a set of objectives and 
according to a long-term management plan. 
(kk) 
Forest officer shall refer to any public officer who by the 
nature of the appointment or the functions of the position to 
which one is appointed is vested 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. 
(11) 
Forest plantation or plantation forest shall refer to a forest 
stand established by planting and/or seeding in the process 
of afforestation and reforestation. The stand is either of 
introduced 
species, 
or 
indigenous 
species, 
or 
their 
combination. 
(mm) Forest products shall refer to goods derived from the forest 
such as, but not limited to, timber, lumber, veneer, plywood, 
fiberboard, pulpwood, firewood, bark, tree top, resin gum, 
wood oil, honey, beeswax, nipa, rattan, or other forest 
growth such as grass, shrub and flowering plant, the 
associated water, fish and game, scenic, historical and 
educational. 
(nn) 
Forest resources shall refer to all resources whether 
biomass, such as plants and animals including its 
byproducts and derivatives which can be raw material assets 
that can produce more value-added products, or non-
biomass such as soil, water, scenery, as well as the 
intangible services and values present in forest lands or in 
other lands devoted for forest purposes. 
(00) 
Grazing land shall refer to a portion of the public domain 
which has been set aside, in view of the suitability of its 
topography and vegetation, for the raising of livestock. 


(pp) 
Indicator shall refer to a 
quantitative, qualitative or 
descriptive attribute that, when periodically measured or 
monitored, indicates the direction of change of sustainable 
forest management. 
(qq) 
Indigenous peoples (IPs) shall refer to a group of people or 
tribe of indigenous Filipinos as defined or described under 
Republic Act No. 8371 or "The Indigenous Peoples Rights Act 
of 1997". 
(rr) 
Industrial forest plantation shall refer to any tract of land 
planted mainly to timber-producing species including rubber 
and/or non-timber species such as rattan, bamboo and 
palm, primarily to supply the raw material requirements of 
wood or related processing plants. 
(ss) 
Joint venture agreement shall refer to an agreement or 
contract, as specified in the Constitution, where a company 
is established by the contractor and the government with 
both parties having equity shares and sharing in equity 
earnings. 
(tt) 
Kaingin shall refer to forest lands which have been SUbjected 
to unsustainable shifting and/or slash-and-burn cultivation. 
(uu) Managed forest shall refer to a forest land under a deliberate 
system of protection, rehabilitation and development, which 
include utilization of resources, to ensure the continuous 
production of desired forest products and/or services and 
the conservation of soil, water, wildlife and other natural 
resources therein. 
(vv) 
Mitigation in the context of climate change, shall refer to 
human intervention to address anthropogenic emissions by 
sources and removals by sinks of all greenhouse gases 
(GHGs), including ozone depleting substances and their 
substitutes. 
(ww) Multiple-use shall refer to the harmonized utilization of land, 
soil, water, wildlife, recreation value, grass and timber of 
forest lands. 


(xx) 
National park shall refer to the land of public domain 
classified as such in the 1987 Philippine Constitution which 
includes all areas under the National Integrated Protected 
Areas System (NIPAS) pursuant to Republic Act No. 7586, 
primarily set aside and designated for the conservation of 
native plants and animals, their associated habitats and 
cultural diversity. 
(yy) 
Natural forest shall refer to forests composed of indigenous 
trees not planted by man, whose structure, functions and 
dynamics have been largely the result of natural succession 
processes: 
(zz) 
Non-timber forest products shall refer to all biological 
materials and derivatives other than timber, which are 
extracted from forests for human use. 
(aaa) Old growth forest shall refer to forest which have never been 
subject to human disturbance or has been so little affected 
by hunting, gathering and tree cutting that its natural 
structure, function and dynamics have not undergone any 
changes that exceed the elastic capacity of the ecosystem. 
(bbb) Permit shall refer to a short-term privilege or authority 
granted by the State to a person to utilize any limited forest 
resource or undertake a limited activity within any forest 
land without any right of occupation and possession therein. 
(ccc) Person shall refer to a natural as well as juridical person, 
including local forest-based communities or indigenous 
peoples organized in accordance with law or custom. 
(ddd) Production sharing agreement shall refer to an agreement in 
accord with the Constitution wherein the government grants 
the contractor the exclusive right to conduct development 
and utilization activities within a specified area of the forest 
lands and it (the government) shares in the production 
whether in kind or in value as owner of forest lands and/ or 
products therein. The contractor provides all the necessary 
financing; technology, management and personnel. 


(eee) Protected area shall refer to the identified portions of land 
and water set aside by reasons of their unique physical and 
biological significance, managed to enhance biological 
diversity 
and 
protected 
against 
destructive 
human 
exploitation. 
(fff) 
Protection shall refer to the act or activities of shielding from 
injury or destruction as to maintain the state of health and 
integrity of the forest land and its resources. 
(ggg) REDD Plus shall refer to a broad range of actions to reduce 
emissions from deforestation and forest degradation (REDD), 
including the conservation of carbon stocks, sustainable 
management of forests and enhancement of forest carbon 
stocks. 
(hhh) Reforestation shall refer to the planting of trees or artificial 
establishment of forests in areas that were previously 
forested. 
(iii) 
Rehabilitation 
shall 
refer 
to 
the 
reforestation 
and 
afforestation activities including mechanical measures such 
as contouring and terracing. 
(jjj) 
Residual or second growth forest shall refer to a forest, 
subsequent to the cutting or harvesting the then old growth 
forest, and which there is more or less adequate volume of 
the desired species of trees for development, management 
and future harvest. 
(kkk) Restoration shall refer to the bringing back of the forest land 
to its original state in terms of species composition, 
structure, function and productivity. 
(lll) 
Restoration zones shall refer to the area where restoration 
activities are conducted and where the original vegetation 
shall be restored. 
(mmm) River basin shall refer to the portion of land drained by a 
river and its tributaries, encompassing the entire land 
surface dissected and drained by many streams and creeks 
that flow downhill into one another, and eventually into one 


river, the final destination of which IS an estuary or an 
ocean. 
(nnn) Secretary shall refer to the Secretary of the Department of 
Environment and Natural Resources. 
(000) Selection system shall refer to the systematic removal of 
mature, over-mature and defective trees in such a manner 
that leave adequate number and volume of healthy residual 
trees of desired species necessary to assure future crop of 
timber and forest cover for the protection and conservation 
of soil, water and wildlife. 
(ppp) Silvicultural practices shall refer to any action by man to 
further improve or enhance the stand growth as a whole or 
of the single tree for future use such as, but not limited to, 
assisted natural regeneration and tree surgery. 
(qqq) Sustainable development shall refer to the meeting of the 
needs of the present generation without compromising the 
ability of the future generations to meet their own needs. 
(rrr) 
Sustainable Forest Ecosystem Management (SFEM) or 
Sustainable Forest Management (SFM) shall refer to the 
process of ecosystem-based management of forest to achieve 
one or more clearly specified objectives of management with 
regard to production of continuous flow of desired forest 
products 
and 
environmental 
services without undue 
reduction of its inherent values and future productivity and 
without undesirable effects on the physical and social 
environment. 
(sss) Tenure shall refer to a privilege given by the Department to a 
qualified person or juridical entity to manage and utilize 
forest lands and the resources found therein, in accordance 
with the modalities prescribed in the Philippine Constitution. 
(ttt) 
Urban forestry shall refer to the establishment and 
management of forest in urban environment for the 
physiological and psychological well-being of the people. 


(uuu) Upper river basin (URB) shall refer to the portion of a major 
river basin that extends from the ridge dividing it from other 
basins down to a point where the gradient of the river has 
decreased to less than about eight percent (8%), the gradient 
below the level at which erosion becomes deposition, which 
generally has several tributaries, and whose catchments are 
referred to as watersheds. 
(vvv) Uplands shall refer to land areas located on slopes of more 
than eighteen percent (18%). 
(www)Vulnerability assessment shall refer to an analysis of the 
relationship between natural and anthropogenic hazards and 
river basins and watershed. It identifies the strength and 
weaknesses of the recipient subject in relation to the 
identified hazard. 
(xxx) Vulnerable areas shall refer to areas in danger of being 
adversely affected by gradual or sudden changes in climate, 
including the physical and biological components as well as 
the socioeconomic status of communities therein. 
(yyy) Watershed shall refer to a land area drained by a stream or 
fixed body of water and its tributaries having a common 
outlet for surface runoff. 
(zzz) Watershed continuum shall refer to an area consisting of the 
watershed and its divide including its connection from the 
headwaters to the reef. 
(aaaa)Watershed Ecosystems Management (WEM) or Watershed 
Continuum Management (WCM) shall refer to a management 
system that· shall provide the optimum social, cultural, 
economic and environmental benefits to the greatest number 
of people particularly those living in, adjacent to, or 
downstream 
of, 
individual 
watershed 
areas, 
while 
maintaining the biological and cultural heritage of the 
country. It is based on the following guiding principles: 
ecological sustainability, social and cultural sustainability, 
economic sustainability and institutional sustainability. 


(bbbb) Wildlife shall refer to wild forms and varieties of flora and 
fauna in all developmental stages. 
(cccc) Wood-based industries shall refer to various industries that 
use wood as the principal raw material including, but not 
limited to, sawmilling, veneer and plywood and wood-bound 
manufacturing and pulp and paper making as well as 
furniture 
and 
secondary 
processed 
wood 
products 
manufacturing. 
ARTICLE II 
Forest Lands 
SECTION 5. Permanent Forest Lands. - All lands of the public 
domain classified as forest lands by the Department including the 
remaining unclassified lands, shall comprise and be maintained as 
permanent forest lands of the country. The reclassification of forest lands 
and/ or any changes in the forest lines shall require an act of Congress. 
SECTION 6. Establishment of Forest Lines. - Within two (2) 
years upon the effectivity of this Act, the Department shall undertake the 
actual ground survey and verification of the limits of the permanent 
forest lands using as basis all existing Land Classification (LC) maps, the 
latest forest cover data of the National Mapping and Resource 
Information Authority (NAMRIA) from its satellite imagery interpretations, 
and other available and reliable sources of information. 
Within five (5) years upon the effectivity of this Act, forest 
boundaries of the forest lands shall be demarcated and clearly marked 
on the ground by concrete monuments at certain f!Xed distances, visible 
cut lines, sign boards, and uniformly-spaced distinctive trees maintained 
at all times between the concrete monuments. 
Upon approval of this Act, the Congress shall provide funds to the 
Department to carry out the establishment of the forest lines. 
Records pertaining to the specific limits of forest lands shall be 
made available to the public upon request. Moreover, the Department 
shall furnish all provincial, municipal and city governments copies of the 


maps of permanent forest lands located within their respective territorial 
jurisdictions. 
SECTION 7. Subclassification of Forest Lands. - The forest 
lands shall be sub classified into the following categories according to 
primary use: 
(a) 
Protection forest lands shall consist of all mossy and old-
growth forests; freshwater, swamps and marshes; all areas 
along the bank of rivers and streams, and the shores of the 
seas and lakes throughout their entire length and within a 
zone of three (3) meters in urban areas, twenty (20) meters in 
agricultural areas, and forty (40) meters in forest areas, 
along their margins which are subject to the easement of 
public use in the interest of recreation, navigation, floatage, 
fishing and salvage shall also be sub classified as protection 
forest lands. All extractive activities such as, but not limited 
to, logging and mining are banned in protection forest lands: 
Provided, That the provisions of the rPRA shall be respected: 
Provided, further, That restoration zones shall be designated 
in areas surrounding or adjacent to protection forest lands 
and, thereafter, shall become part of protection forest lands; 
and 
(b) 
Production forest lands shall be all forest lands not sub 
classified as protection forest lands as defined in this 
section, and shall be devoted to the production of timber 
and/or non-forest prodUcts or the establishment of 
industrial tree plantations, tree farms, communal forests, 
agro-forestry, grazing, or as multiple-use forests including 
water-based energy areas such as, but not limited to, hydro 
and geothermal power generation areas: Provided, That, 
together with pockets of areas referred to in paragraph (a) of 
this section, if present, production forest lands shall be 
managed and developed as part of FMUs in accordance with 
the Department-approved management plans based on 
sustainable forest management: Provided, further, That 
ancestral domains located within production forest lands 
shall be governed by Republic Act No. 8371 or the IPRA law. 


ARTICLE III 
Administration and Planning for Sustainable Management of 
Forest Lands 
SECTION 8. Jurisdiction and Control of Forest Lands and 
Forest Resources. -
The Department shall be the primary agency 
responsible for the conservation, management, development and 
utilization of all forest lands and the unclassified lands of the public 
domain including all the resources found therein. In coordination with 
the LGUs and other government agencies, the Department shall ensure 
that forest lands and unclassified lands of the public domain are 
managed, conserved, developed, utilized and protected consistent with 
the policies and strategies promulgated in this Act. The utilization and 
development of forest lands and unclassified lands of the public domain 
including the natural resources therein shall be undertaken in 
accordance with the Department-approved management plans: Provided, 
that management plans for protected areas shall be prepared in 
accordance with the provisions of the NIPAS Act. 
SECTION 9. Partitioning of Forest Lands into Forest 
Management Units (FMUsJ. - For the purpose of assigning respective 
areas of operations and management of forest lands, these shall be 
partitioned into FMUs based on the LGU jurisdiction and ancestral 
domain found therein: Provided, That in case of any unresolved bndary 
conflicts between or among adjoining LGUs, the Department shall define 
the FMU boundaries along the areas of conflict: Provided, further, That 
each existing area covered by an approved tenure instrument shall be 
considered as a FMU. 
SECTION 10. Tenure Instruments. - The assignment of open-
access/ untenured FMU-Ievel management to 
LGUs and other 
stakeholders shall be determined by the Department in accordance with 
appropriate rules and regulations: Provided, That existing and valid 
tenure instruments shall continue under their terms and conditions. 
SECTION 11. Forest Lands Under Management of Other 
Agencies. - Forest lands or portions thereof which have been placed by 
law under the administration and management of other government 
agencies or private power/water utilities service providers, shall be 
included in the partitioning of forest lands into appropriate categories 


consistent with the purpose of the assigned forest lands as provided for 
in Section 7 of this Act, and shall remain under the administration and 
management of the agency or utilities service provider concerned: 
Provided, That the Department shall exercise oversight power over FMU 
planning, management, utilization and assessment of all forest resources 
in these areas. All such agencies or service providers shall be guided by 
the CBFM strategy as described in Section 2 of this Act, and shall be 
encouraged and supported by the Department. 
SECTION 12. Private Sector Participation in Management of 
Forest Lands.- Private sector participation in management of forest 
lands shall be· encouraged. The Department shall identify and set aside 
suitable forest areas for private sector development and management 
and, together with the Board of Investments, shall formulate and provide 
a set of incentives to the private sector for this purpose. Private sector 
participation shall be undertaken through joint venture, production 
sharing agreement, or co-production with concerned FMU management. 
All forest lands currently held by the private sector shall continue to be 
sustainably managed by such private sector under the terms and 
conditions of their existing tenure instruments, subject to the forest 
certification system described in Section 36 of this Act. 
SECTION 13. Forestry Planning System. - The Department shall 
institute and oversee the implementation of a forestry planning system 
consisting of the following hierarchy of plans, which shall be regularly 
updated: 
(a) 
Forestry Master Plan. - The master plan shall include 
a multi-faceted analysis of the forestry sector, its 
strengths, weaknesses, opportunities and threats, 
including vulnerabilities and threats resulting from 
climate change; set long-term goals and medium-term 
objectives, formulate programs to guide the long-term 
development of the forestry sector and attainment of 
medium-term targets, and specify the requirements for 
the implementation of the development programs. The 
master plan shall be prepared by the Department in 
collaboration with other stakeholders and submitted to 
the President of the Philippines through the National 
Economic and Development Authority (NEDA) for 


approval. The master plan shall be reviewed every five 
(5) years to be attuned with current and emerging 
issues and developments. 
(b) 
River Basin Master Plans. - River basin master plans 
shall be in accord with the master plan for the forestry 
sector and shall focus on enhancing the delivery of 
various forest ecosystems services in the river basin, 
with emphasis on: (1) enhancing forest ecosystems 
adaptation to and mitigation of climate change; (2) 
ecosystem-based adaptation that implements a range 
of strategies for the management, conservation and 
restoration of forest ecosystems to provide services 
that enable people to adapt to the impacts of climate 
change; and (3) provision of multiple co-benefits, such 
as conservation of biodiversity, enhancement of carbon 
stocks for mitigating climate change, supplying of 
water and various economic products, and generation 
of livelihood and income for local communities, by 
means of ecosystem-based adaptation measures. The 
river basin master plans shall be prepared every five 
(5) years by the concerned regional office(s) of the 
Department in 
collaboration with 
the 
Regional 
Development Councils and other stakeholders and 
submitted to the Department Secretary for approval. 
(c) 
FMU Management Plans. - As co-managers of the 
FMU, 
LGUs, 
or the 
private 
sector and other 
stakeholders concerned, following a 
Department-
prescribed template, shall be responsible in preparing 
a five (5)-year FMU management plan under the 
supervision of accredited registered private forester(s) 
and in accord with the river basin master plan for 
approval of the concerned Department regional office. 
(d) 
Annual 
Operations 
Plans. 
To 
facilitate 
the 
implementation of the FMU management plan, a 
detailed annual operations plan in accord with the 
FMU management plan shall be prepared by the FMU 
concerned under the 
supervision 
of accredited 


registered private forester(s). The FMU management 
and 
operations 
plans 
shall 
conform 
to 
the 
Department's criteria and indicators for sustainable 
forest ecosystem management. 
ARTICLE IV 
Sustainable Forest Ecosystem Management Programs and 
Operations 
SECTION 14. Assigning the Implementation of National or 
Local Forestry Programs to CBFM. - All national and local programs, 
their component projects and the operationalization of plans related to 
the management, development, protection and conservation of forest 
ecosystems shall be implemented according to the CBFM approach as 
described in this Act. A memorandum of agreement shall be entered into 
by all concerned FMUs which shall stipulate the resources allocated for 
such program or project and the benefit-sharing arrangements between 
FMU operators and project proponents. These programs or projects shall 
include forest restoration, reforestation and afforestation, industrial tree 
plantations, agro-forestry, biomass energy production, non-timber forest 
products (NTFP) development, Payment for Ecosystems Services (PES), 
and REDO Plus. 
SECTION 15. Carbon Sequestration and Storage. - As part of 
climate change mitigation and adaptation measures and to enhance 
ecosystems services, carbon sequestration and storage shall be included 
in the forestry master plan, river basin master plans, management 
framework plans, FMU management plans and annual operations plans. 
The Department shall provide support to FMU managers in implementing 
operations that increase carbon sequestration and storage such as PES, 
as well as the applicable financing made available for the purpose. The 
PES, REDO Plus, and other sources shall be accessed to provide 
financing for carbon sequestration and storage activities of FMU 
operators. The Department, in collaboration with the Climate Change 
Commission, shall formulate the regulations governing carbon trading. 
SECTION 16. Ecotourism. - The FMU management shall enhance 
and conserve the ecotourism values found in forest lands. Timber 


harvesting for whatever purposes, commercial-scale collection of NTFP, 
farming, grazing, aquaculture, and infrastructure development shall be 
prohibited in ecotourism zones of the FMU, except as part of the tourism 
development programof the FMU and as indicated in the approved FMU 
management 
plan. 
The 
design 
and 
construction 
of 
tourism 
infrastructures shall be in accord with enhancement of the natural 
characteristics and/ or attraction of the site. 
SECTION 17. Resources Management for Non-Timber Forest 
Products (NTFP). -
The FMU management for non-timber forest 
production shall be conducted in appropriate areas. Harvesting of NTFP 
shall be on sustainable basis, promote productivity of the NTFP 
resources, and minimize any disturbance of the soil, water, and 
biodiversity resources of the site. Domestication of resource bases of 
NTFP shall be encouraged. 
SECTION 18. Silviculturql Systems. - Silvicultural systems that 
are appropriate to the type of forest and other considerations shall be 
selected and applied in the timber production zones. Regeneration of 
harvested natural forest stands shall be based on natural regeneration 
processes and assisted natural regeneration. The Department shall 
conduct a 
review of silvicultural systems including the forest 
management practices of indigenous peoples and institute improvements 
that ensure sustainability of timber management and increase in 
productivity. Clear-cutting shall be allowed only in plantations, and any 
clear-cutting shall be followed immediately by tree planting as well as 
maintenance of planted trees until they are fully established. 
SECTION 19. Agro-forestry. - Agro-forestry shall be one of the 
key upland development strategies to be used in developing forest areas 
pccupied by upland farmers. 
SECTION 20. Mqngrove Development and Mqnagement. - The 
rehabilitation of degraded mangrove forests through afforestation/ 
reforestation/enrichment planting of appropriate mangrove species shall 
be intensified. Fishery production in duly designated mangrove 
production zones shall promote productivity of fishery resources and 
shall be accomplished without cutting the naturally growing mangroves. 
Establishment of new mangrove plantations in tandem with fishpond 
development (aqua-silviculture) may be allowed in mangrove production 


zones: Provided, That not more than twenty percent (20%) of areas to be 
developed shall be devoted to fishpond farming activities. The mangrove 
plantations established within the aqua-silviculture projects may be 
permitted to be selectively harvested for domestic purposes only on a 
sustainable basis as deemed appropriate and that the privilege to harvest 
shall be granted only to the private individual, group of individuals or 
entity which established and developed the said plantations as previously 
authorized through an approved contract or agreement for the purpose: 
Provided, That harvesting shall be limited to mangroves that are part of 
the timber management zones and non-timber production zones of the 
FMU as indicated in the approved FMU management plan: Provided, 
further, That the cutting of mangrove trees and other associated plants 
within duly-designated mangrove protection zones whether naturally 
growing or planted is strictly prohibited. 
SECTION 21. Mining in Forest Lands. -
Mining shall not be 
allowed in protection forest lands as an imperative measure in enhancing 
the protection and conservation of various forest ecosystems services. In 
production forest lands,. the consent of the tenure holder and the 
Department approval shall be obtained: Provided, That mined-out areas 
shall be immediately rehabilitated. 
SECTION 22. Built-up Areas in Forest Lands. -
Human 
settlements, roads and other infrastructure shall be designated built-up 
areas of the FMU. 
SECTION 23. Forest Protection. -
Protection of forest lands 
against land-use conversion, illegal extraction of forest products, fire, 
pests and diseases, invasive species, chemicals, climate-induced causes, 
and other agents of forest destruction shall be included in the forestry 
master plan, river basin master plans, FMU management plans and 
annual operations plans. 
SECTION 24. Urban Forestry. -
As part of climate change 
adaptation and mitigation measures and to enhance ecosystems services, 
communal forests, tree buffers along roads and waterways, and 
forest/tree parks in urban areas, school grounds, and open spaces of 
housing projects shall be established in cities and municipalities. The 
Department and forestry research and academic institutions shall 
provide technical assistance to ensure that appropriate species and 


technologies are employed in the establishment and maintenance of such 
parks, communal forests and tree buffers. 
ARTICLE V 
Utilization of Forest Resources 
SECTION 25. Use of Forest Lands Exclusively for Forestry and 
Subsidiary Purposes. - The use of forest lands shall be limited to 
forestry and subsidiary purposes in appropriate areas. The use of forest 
lands for purposes not otherwise mentioned shall require the 
Department approval: Provided, That non-extractive utilization of forest 
resources, particularly special uses of forest lands such as bathing 
establishments, camp sites, telecommunication sites, log pond sites, salt 
works, and the like, shall be allowed consistent with pertinent policies 
and regulations that the Department may prescribe. 
SECTION 26. Harvesting of Forest Products. - Harvesting of 
timber and NTFP shall be based on the principle of sustainability and in 
consideration of the conservation of soil, water, and biodiversity and 
enhancement of carbon stocks as mentioned in this Act. In addition, the 
Department approval for harvesting trees shall be subject to the conduct 
of a forest inventory and mapping of harvestable trees, including chain-
of-custody (CoC) numbering of harvestable trees as mentioned in Section 
35 of this Act, and reporting to the Department for the updating of the 
Department's database on harvested trees. 
SECTION 27. Management and Utilization of Forest Resources 
Within Forest Lands. - The extraction of timber and NTFP, and 
agricultural crops, their byproducts and derivatives, whether from 
natural forest, planted, or raised through application of appropriate 
silvicultural and/or agro-forestry practices, from forest lands, shall 
require a prior permit, agreement or clearance that are deemed necessary 
and appropriate by the Department as recommended by the Forest 
Management Bureau (FMB): Provided, That extraction of timber and 
NTFP, agricultural crops, their byproducts and derivatives from areas 
covered by Certificate of Ancestral Domain Titles (CADT) or Certificate of 
Ancestral Land Claims (CALC) shall be governed by Republic Act No. 
8371. The transport of these forest products from forest lands, including 


those from the area of the indigenous cultural communities and 
indigenous peoples covered by CADT or CALC, shall be covered by a CoC 
certificate issued by the FMU management. Relevant information in the 
CoC shall be transmitted to the Department's online database at least 
one (1) week prior to the actual transporting as provided for in Section 35 
of this Act. 
Any extraction of forest resources considered as endangered, 
threatened, vulnerable, and other restriction shall be done 
ill 
coordination and consultation with, and clearance from the Protected 
Areas and Wildlife Bureau (PAWB): Provided, That any declaration of 
endangered, threatened, vulnerable, and other restricted species shall be 
approved jointly with the FMB. 
SECTION 28. Management and Utilization of Forest Resources 
Within Titled Lands. - All forest resources planted or raised within 
titled lands belong to the owner of the land, shall have the right to sell, 
contract, conveyor dispose of the same without the necessity of any 
clearance from the Department: Provided, That the government shall 
provide the appropriate incentives provided under Section 46 of this Act. 
SECTION 29. Administration and Utilization of Forest 
Resources Within Ancestral Domain. -
The utilization of forest 
resources within ancestral lands and domains shall be governed by the 
provisions of this Act and Republic Act No. 8371. The National 
Commission on Indigenous Peoples (NCIP) shall coordinate and consult 
with the Department in providing assistance to the indigenous peoples in 
the sustainable management and development of forest resources within 
ancestral lands and domains. 
Any project to be implemented by a holder of a CADT or any such 
similar instrument to develop or use forest lands or forest resources 
therein that would result in severe soil erosion or environmental 
degradation shall be subject to an EIA in accordance with Presidential 
Decree No. 1151 or the Philippine Environmental Policy, and Presidential 
Decree No. 1586 on Establishing an Environmental Impact Statement 
System and this Act. 
SECTION 30. Transport of Forest Products and Confiscated 
Forest Products. - The transport of timber and NTFP that do not carry a 
CoC number and is not supported by CoC documentation, as provided 


for in Section 35 of this Act, shall be prohibited. Timber and NTFP that 
do not carry a CoC number shall be considered as coming from illegal 
sources and subject to confiscation. 
SECTION 31. Downstream Processing of Forest Products. - To 
add value to harvested forest products, further processing into finished 
and semi-finished products shall be encouraged and supported. The 
CBFM and other FMU operations shall be allowed to process their forest 
products or to make them available in the open market of raw forest 
products subject to restrictions on forest products transporting as 
mentioned in Section 36 of this Act and prior payment of appropriate 
forest charges as mentioned in Section 50 of this Act. 
SECTION 32. Forest-Based Industries. - To meet the demands 
for forest-based goods and services of a growing population, the State 
through the Department shall promote the establishment, operations 
and development of forest-based industries. 
SECTION 33. Export and Sale of Locally Produced Wood 
Products. - Logs and raw or rough lumber manufactured from such 
logs, derived from natural grown trees of whatever species cut, gathered 
or removed from the local natural forest shall not be exported. Only 
finished and semi-finished lumber products, wood manufactures, wood 
panels, and other finished wood products from such logs may be 
exported by licensed exporters: Provided, That the license to export such 
finished wood products shall be granted only to certified operators upon 
approval of their application. The export of forest plantation products 
shall be based on Department guidelines. 
No person shall sell or offer for sale any log, lumber, veneer, 
plywood or other manufactured wood products in the international or 
domestic market without complying with the certification and grading 
rules established or to be established by the government. Failure to 
adhere to the established grading rules and standards, or any act of 
falsification on the volume of logs, lumber, veneer, plywood or other wood 
products sold in the international or domestic market shall be sufficient 
cause for the cancellation of export license, wood processing permit, or 
other license or permit authorizing the manufacture or sale of such 
products. 


SECTION 34. importation and Sale of Logs and Other Forest 
and Wood Products. - Logs, lumber, and other forest- and wood-based 
products may be imported to the country subject to the registration 
requirements of the Department and to the tariff and duties under the 
Tariff and Customs Code and quarantine regulations. Any product 
manufactured or remanufactured out of imported forest and wood 
materials shall be allowed to be sold in the domestic or international 
market subject to compliance with grading rules and standards by the 
licensed finished wood product exporter. 
ARTICLE VI 
Monitoring and Control of Forest Management and Utilization 
SECTION 35. Forest Products Chain-of-Custody (CoC). - The 
Department shall institute a forest product CoC system to enable the 
tracking of transported, processed or marketed forest products to their 
source. To be considered legally harvested, all forest products from forest 
lands shall bear an official CoC number. 
SECTION 
36. 
External 
MonitOring 
and 
Certification 
Assessment of Forest Management Operations. - The Department 
shall institute a national forest certification system to externally monitor 
and assess the performance standards of FMU operations and to ensure 
that forest products coming from FMUs are from certified sustainable 
sources when local consumers buy them from the market. 
SECTION 37. Forestry Information System (FIS). 
-
The 
Department shaH establish a FIS which shall consist of comprehensive 
up-to-date information on the physical, social, economic, biological and 
environmental components of the country's forest lands and forest 
resources. It shall include a resource monitoring system to enable the 
Department and its field offices to track the utilization, movement or 
transfer of forest-based goods and services from the source to their end 
users. The Department shall conduct forest resource inventory at least 
once every five (5) years to ensure effective management. 
SECTION 38. Conflict Resolution. - The parties from within an 
FMU and between or among FMUs shall be encouraged to resolve 


conflicts related to forest management, development, protection, 
conservation and utilization between or among themselves. Conflicts that 
cannot be resolved internally shall be reported for adjudication and 
resolution by the Department. Conflicts that cannot be resolved by the 
Department to the satisfaction of the parties in conflict shall, after 
exhausting all administrative remedies, be submitted to the proper 
courts for resolution. 
ARTICLE VII 
Support Systems 
SECTION 39. Forestry Education. - Formal forestry education in 
the Philippines shall be rationalized. A nationwide assessment of forestry 
schools shall be conduCted by the Commission on Higher Education 
(CHED). Within one (1) year upon effectivity of this Act, the CHED shall 
evaluate forestry schools and formulate guidelines to be observed in the 
phasing-out 
of substandard 
schools 
in 
coordination with 
the 
Department, the Board of Examiners of the Professional Regulation 
Commission (PRC) , the Philippine Forestry Education Network (PFEN) 
and the Society of Filipino Foresters, Incorporated (SFFI). The main 
purpose of this rationalization is to ensure the quality of formal forestry 
education and establish, support and sustain centers of excellence in 
forestry and environmental education to develop high quality manpower 
and promote global competitiveness. The CHED shall have the power to 
recommend the phasing-out of substandard schools in accordance with 
an agreed phase-out plan that considers the impact thereof on enrolled 
students. 
The Department of Education (DepED) shall integrate tree-planting 
and tree maintenance activities as part of the school curriculum. The 
CHED shall include forestry in ecology and environment courses in the 
general education curricula. 
SECTION 40. Capacity-Building. - The Department shall develop 
and implement a program to develop the capacity of LGUs and other 
stakeholders in forestry resources management. 


SECTION 41. Research and Development. -
Research and 
development, invention, innovation and their utilization in science and 
technology education, training and services shall be given priority. The 
government shall strengthen existing research institutions such as the 
Ecosystems Research and Development Bureau (ERDB), the Forest 
Products Research and Development Institute (FPRDI) and state 
universities and colleges (SUCs), among others, and support scientific 
and technological capabilities and their application to the country's 
productive system, national life and adaptive capacity to climate change. 
Appropriate technology shall be used to protect the environment, reduce 
climate change effects, increase community adaptation to climate change 
and enhance their livelihood. 
The Department shall coordinate with other research agencies to 
go into co-financing agreements with the private sector in the conduct of 
researches and development of inventions: Provided, That the terms and 
conditions are beneficial to forest ecosystems services for the country. 
SECTION 42. Policy Research and Development. - The Forestry 
Development Center (FDC) based at the University of the Philippines Los 
Bailos (UPLB)-College of Forestry and Natural Resources shall continue 
to serve as the primary policy research and development center for 
forestry, environment and natural resources management. The FDC shall 
perform its functions in close coordination with the FMB of the 
Department and other policy research institutions. It shall assist the 
Department in the formulation, review and evaluation of proposed and 
existing policies in forestry, environment and natural resources. To 
enable the FDC to carry out its mandated function of policy research, it 
shall have a share in the sustainable forest ecosystem development fund 
pursuant to Section 55 of this Act. 
SECTION 43. Forestry Extension Services. - With support from 
the LGUs, the nongovernment organizations (NGOs), media and other 
organizations, the Philippine Information Agency (PIA), the DepED, state-
owned and private universities and colleges, the Department shall 
formulate a nationwide program for sustained public information and 
advocacy campaign for forest and natural resources conservation, 
sustainable forest development and on climate change. Adequate and 
sustainable funds to implement research, technology development and 


transfer programs shall be provided by each of the aforementioned 
agencies and institutions under the General Appropriations Act. 
SECTION 44. Strengthening of the Forest Management 
Sector.- In order to effectively implement the provisions of this Act, the 
FMB shall be transformed into a line bureau of the Department with 
functions clearly defined and enumerated under the implementing rules 
and regulations of this Act. 
ARTICLE VIII 
System of Incentives 
SECTION 45. Incentives for Engaging in Forest Development. -
Incentives as provided for by existing laws such as the National Internal 
Revenue Code of 1997, as amended, and Executive Order No. 226 or the 
Omnibus Investment Code, among other laws, shall be extended to 
encourage qualified persons, natural or juridical, to engage in forest 
management activities. 
SECTION 46. Tax Incentives for Forest Plantation Activities. -
The following tax incentives shall be granted to qualified persons engaged 
in forest plantation activities within forest lands and alienable and 
disposable lands of the public domain: 
(a) 
Expenses incurred in complying with the requirements 
of this Act shall be allowed as deductible expenses for 
income tax purposes subject to the provisions of the 
National Internal Revenue Code of 1997, as amended: 
Provided, That the deduction shall only apply to the 
taxable period when the expenses were incurred; 
incentives granted to registered domestic enterprise 
under the Investment Priorities Plan (IPP); 
(b) 
E;xemption from the payment of forest charges 
imposed under the provisions of this Act; 
(c) 
Amounts expended by the agreement holder in the 
development and operation of a forest plantation prior 
to the commercial harvest shall be regarded as 


ordinary and necessary expenses or as capital 
expenditure; 
(d) 
The Board of Investments (BOI) shall classify forest 
plantations as pioneer and preferred areas of 
investment under its annual priority plan subject to 
the pertinent rules and regulations; 
. (e) 
The ·tenure holder shall be given priority to access 
credit assistance being granted by government-owned, 
-controlled and/or -supported financial institutions; 
and 
(f) 
Upon the premature termination of the tenure 
instrument 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 tenure holder, and in case of disagreement 
between them, by arbitration through a mutually 
acceptable and impartial third party adjudicator. 
SECTION 47. Incentives fOT Forest-Based Industries. -
To 
enable forest-based industries to be more efficient, competitive and 
economically viable, the following incentives are hereby granted in 
addition to those already provided by existing laws: 
(a) 
All processing plants or mills shall be assisted by the 
Department in identifying sources of raw materials; 
(b) 
All processing plants or mills shall be granted 
operating permits for five (5) years renewable for 
another five (5) years: Provided, That permits for 
processing plants owned or operated by holders of 
forest management agreements or contracts shall be 
coterminous with said agreements or contracts; 


(c) 
The Department shall provide on its own or propose to 
the President or to Congress, other incentives to 
encourage the establishment and development of 
corporate, 
family 
and 
community 
forest-based 
industries. Agreements or licenses over forest areas 
granted to wood-based plants shall be converted into 
any mode authorized in this Act. Expansion in 
capacity of wood-based plants shall be encouraged and 
the same shall be given priority access to production 
forest lands and other areas available for development 
as source of raw materials; and 
(d) 
The Department shall promote 
linkages 
among 
corporate, 
community-based industries. 
and strengthen the 
family-based 
and 
SECTION 48. Rewards for Informants. - A percentage of the 
value of confiscated materials shall be used as rewards for informants, 
including Department personnel. Additional rewards may be provided to 
personnel of the Department, in addition to those provided under the 
Government 
Service 
Insurance 
System 
(GSIS) 
or 
Workmen's 
Compensation Law. They shall also be entitled to free legal assistance 
should legal cases be filed against them in the performance of official 
duties. 
ARTICLE IX 
Forest Charges, Fees and Sharing 
SECTION 
49. 
Fees, 
and Government Shares for the 
Utilization, Exploitation, Occupation, Possession of, and Activities 
Within Forest Lands. - The Department shall prescribe appropriate fees 
and government shares for the different kinds of utilization, exploitation, 
occupation, possession, or activities within forest lands: Provided, That 
payment of or collection of such fees and government shares shall be 
waived for parties/industries mandated by law to manage, conserve, 
develop and protect forest lands and forest resources found therein, 
except administrative fees for the filing and processing of applications for 
the issuance and renewal of licenses, permits and agreements: Provided, 


further, That watershed administrators and/or service contractors that 
have forest management agreements with the Department shall also be 
entitled to a waiver of fees, except administrative fees. 
The Department shall recommend appropriate and equitable fees 
for the use of water and forest for power generation, irrigation, domestic 
and industrial, and for carbon sequestration and biodiversity benefits 
respectively, by parties/industries concerned. 
SECTION 50. Forest Charges. - There shall be collected charges 
on each cubic meter of timber cut in forest lands, whether belonging to 
the first, second, third or fourth group, twenty-five percent (25%) of the 
actual Free on Board (FOB) market price based on species and grading: 
Provided, That, in the case of pulpwood and matchwood cut in forest 
lands, forest charges on each cubic meter shall be ten percent (10%) of 
the actual FOB market price. 
(a) Charges on Firewood, Branches, and Other Recoverable 
Wood Wastes of Timber. - There shall be collected forest 
charges of ten percent (10%) of the actual FOB market 
price on each cubic meter of firewood cut in natural 
forest, branches and other recoverable wood wastes of 
timber, such as timber ends, tops and stumps, when 
used as raw materials for the manufacture of finished 
products. 
Only third or fourth group wood can be taken for 
firewood. However, if jointly authorized by the secretaries 
of both the Department of Environment and Natural 
Resources (DENR) and the Department of Agriculture 
(DA) , first and second group wood may be removed for 
firewood purposes from land which is more valuable for 
agricultural than for forest purposes. 
(b) Charges on Non-Timber Forest Products. - All other forest 
products of forest lands which are not covered by the 
preceding section shall be exempt from any or all forest 
charges, except rattan, gums and resins, beeswax, 
guttapercha, almaciga resin and bamboo which shall be 
charged at ten percent (10%) of the actual FOB market 
price. 


These forest charges shall be applied to naturally growing 
timber and NTFP gathered within forest lands, alienable 
and disposable lands, and private lands. All planted trees 
and NTFP harvested from private lands shall be free from 
forest charges. 
For the above purpose, the valuation and the actual FOB 
market price of forest products shall be justly determined 
by the Department based on prevailing market price, 
which shall likewise provide for the time, manner and 
place of payment of such charges. The Department shall 
allocate fifty percent (50%) of forest charges collections to 
reforestation and natural regeneration programs. 
SECTION 51. Fees for Administrative Services Rendered by 
the Department. - Fees shall be collected for various services rendered 
by personnel of the Department in connection with their duties and 
responsibilities as may be requested by interested parties including, but 
not limited to, surveying, mapping and other similar service activities: 
Provided, That administrative fees shall be waived for services rendered 
to local communities or indigenous peoples in the preparation of their 
management plans including timber/other resources inventory on 
farmers' land: Provided, further, That fees collected pursuant to this 
section shall be deposited in the local Department offices as trust funds. 
SECTION 
52. Proper Valuation and Compensation for 
Ecosystems Services. - The Department shall formulate and institute 
appropriate 
mechanisms 
for 
proper 
valuation 
and 
fair 
and 
comprehensive pricing of forest ecosystems services provided by the 
forests, including water for domestic, industrial, irrigation and power 
generation, biodiversity and ecotourism with watershed ecosystems as 
the minimum spatial units. 
The use of various ecosystems services provided by the forests 
shall be compensated. Subject to existing laws, any commercial and 
industrial users of water, energy, recreation and other ecosystems 
services of the forests shall be charged a watershed protection and 
conservation fee. These fees shall be used to fund research and 
development activities, and for the conservation and management of the 
forests. 


Local, regional and national plow back mechanisms of utilizing 
proceeds from the use of watersheds, forests and forest lands for 
ecosystems services such as, but not limited to, power generation, 
supplying domestic and irrigation water, ecotourism and carbon trading 
shall be developed and promoted to finance forest protection, 
rehabilitation, 
development. 
reforestation, 
afforestation, 
agro-forestation 
and 
SECTION 53. Payments for REDD Plus. - Entities involved in 
preventing deforestation and sequestering carbon in their FMUs shall 
have equitable share in the proceeds of REDD Plus payments. The 
capacity of local FMU managers shall be developed to monitor their forest 
resources as basis for equitable sharing in REDD Plus payments. 
ARTICLE X 
Appropriations and Financial Support 
SECTION 54. Appropriations. - The Secretary of the DENR shall 
include in the Department's program and issue such rules and 
regulations for the implementation of the provisions of this Act, the initial 
funding of which shall be charged against the current year's 
appropriations of the Department and thereafter included in the annual 
General Appropriations Act. For LGUs, the fUnding requirements shall be 
taken from their internal revenue allotment (IRA) and other LGU income. 
SECTION 55. Sustainable Forest Ecosystems Development 
Fund (SFEDF).- A Sustainable Forest Ecosystems Development Fund 
(SFEDF) to be administered by the Department as a special account in 
the National Treasury is hereby established to provide sustainable funds 
for 
forest protection, 
reforestation and forest development and 
management, including the rehabilitation and preservation of watershed 
areas, CBFM programs, information and educational campaigns as weI! 
as scholarship programs and policy research. At least fifty percent (50%) 
of the forest charges and government share in all products removed from 
the forest lands, rentals, proceeds from sales of confiscated forest 
products including conveyances, fines and penalties, and administrative 
fees collected shall be set aside for the buildup of the SFEDF. The fund 


may be augmented by grants, donations, endowment from various 
sources, domestic or foreign, for purposes related to their functions and 
other innovative funding mechanisms such as securitization of forest 
assets, among others. 
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. 
ARTICLE XI 
Offenses and Penalties 
SECTION 56. Harvesting, Gathering and/or Collecting Timber 
or Other Forest Products Without Authority. - Harvesting, cutting, 
gathering, collecting, or removing timber or other forest products from 
any forest land, or naturally grown timber inside alienable and 
disposable land without authority from the Secretary or found to possess 
the same without pertinent required legal documents shall be punished 
by imprisonment ranging from prision mayor minimum period to 
reclusion temporal minimum period and/or a fine equivalent to ten (10) 
times the value of the said forest product taken: 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/she shall, in addition to the penalty, be deported 
without further proceedings on the part of the Bureau of Immigration. 
Offenders who are public officials shall be deemed automatically 
dismissed from office and permanently disqualified from holding any 
elective or appointive position in the government. 
If the market value of the timber or other forest products is more 
than Five hundred thousand pesos (PSOO,OOO.OO), the offender shall be 
guilty of economic sabotage and the imposable penalty shall be reclusion 
perpetua, in addition to the payment of the fine equivalent to ten (10) 
times the value of said timber or forest product, and other subsidiary 
penalties as prescribed above. 
Any person, whether natural or juridical, who shall acquire or 
possess logs, flitches, lumber from the economic saboteurs as defined in 


this section and/or use the same logs, flitches, lumber, in any manner, 
shall likewise be punished with reclusion perpetua, payment of fine 
equivalent to ten (10) times the market value of said logs, flitches, lumber 
and the subsidiary penalties provided herein. 
All timber or any forest product cut, gathered, collected, removed, 
or possessed and all 
the conveyances, 
machinery, 
equipment, 
implements, work animals and tools used in connection with the 
violation shall be seized and confiscated in favor of the government. 
SECTION 57. Illegal Cutting as an Act of Economic Sabotage. 
- Any of the acts enumerated in the preceding section when committed 
by any group, through organized and systematic manner, for commercial 
purposes, shall constitute an act of economic sabotage punishable with 
reclusion perpetua. 
The commission of any of the above prohibited acts by two or more 
individuals with the aid of any mechanical device shall constitute a 
prima facie evidence that the act is organized and systematic. 
Any person, whether natural or juridical, who shall buy logs, 
flitches, lumber from economic saboteurs as defined in this section, 
and/ or use the same logs, flitches, lumber in government infrastructure 
projects shall, upon conviction, be punished with reclusion perpetua. 
SECTION 58. Use of Illegally Cut Timber in Government 
Infrastructure Projects. - The use of illegally cut naturally grown 
timber in government infrastructure projects shall be sufficient cause for 
the imposition of penalties provided in Section 56 on harvesting of forest 
products without authority, and Section 57, on illegal cutting as an 
economic sabotage, including the withholding of the payment to the 
harvesting contractor. 
SECTION 59. Damage to Residual Trees. - To ensure the 
sustainability of the natural forests, adequate number of residual trees 
and phenotypically superior mother trees shall be marked, to be retained 
as part of the managed forests and as the future timber crop, before any 
harvesting operation shall commence. Any marked residual tree that is 
thirty percent (30%) or more damaged during such operation is subject 
to a fine equivalent to four (4) times the regular forest charges and 
reduction of future allowable harvest to compensate for residual losses. 


SECTION 60. Grazing Livestock on Forest Lands Without a 
Permit. - Any person found to have caused the grazing of livestock in 
forest lands and grazing lands without an authority under a lease or 
permit to graze, upon conviction, shall be penalized with imprisonment of 
not less than two (2) years nor more than four (4) years and a fine 
equivalent to ten (10) times the regular shares due in addition to 
confiscation of the livestock and all improvements introduced in the area 
in favor of the government: Provided, That in case the offender is a 
corporation, partnership or association, the officer or director thereof 
who directly caused or ordered such shall be liable. In case the offender 
is a public officer or employee, he/she shall in addition to the above 
penalties, 
be 
deemed automatically dismissed 
from 
office 
and 
permanently disqualified from holding any elective or appointive position 
in the government service. 
SECTION 61. Unlawful Occupation or Destruction of Forest 
Lands. - Any person who, without authority from the Secretary, enters 
and occupies or possesses, or engages in kaingin or slash-and-burn 
farming and related activities for own private use or for others, any forest 
land or grazing land, or in any manner destroys such forest land or part 
thereof, or causes any damage to the timber stands and other forest 
product found therein, or assists, aids or abets another person to do so, 
or sets a fire, or negligently permits a fire to be set therein, or refuses 
lawful orders to vacate the area when ordered to do so shall, upon 
conviction, be punished with penalties in the amount of not less than 
One hundred thousand pesos (P100,000.00) nor more than Five hundred 
thousand pesos (P500,000.00) and imprisonment of not less than six (6) 
years and one (1) day nor more than twelve (12) years for each offense: 
Provided, That in the case of an offender found guilty of kaingin or slash-
and-burn farming, the penalty shall be imprisonment of not less than ten 
(10) years nor more than twelve (12) years and a fine equivalent to ten 
(10) times the regular forest charges due on the forest products destroyed 
without prejudice to payment of the full cost of rehabilitation of the 
occupied areas as determined by the Department: Provided, 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. 


In all cases, the court shall further order the eviction of the 
offender from the area occupied and 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 SFEDF. 
If the offender is an alien, he/ she shall be deported after serving 
his/her sentence and payment of fines, without any further proceedings. 
An offender who is a government officer or employee, shall, in addition to 
the above penalties, upon conviction, shall be deemed automatically 
dismissed from office and permanently disqualified from holding any 
elective or appointive position in the government service. 
SECTION 62. Illegal Conversion of City or Municipal Parks, 
Communal Forests and Tree Parks in Subdivisions. - Any person 
found to have converted or caused the conversion of a city or municipal 
parks or communal forest, or tree parks within subdivisions established 
pursuant to Section 24 herein and Section 2 of Presidential Decree No. 
953, requiring the planting of trees in certain places, into other uses 
including the construction of permanent buildings therein, or in any 
manner destroys or causes any damage to the timber stands and other 
forest product found therein, or assists, aids or abets another person to 
do so, or sets a fire, or negligently permits a fire to be set therein, upon 
conviction, shall be penalized by imprisonment of six (6) years and one 
(1) day to twelve (12) years or a fine of not less than One hundred 
thousand pesos (PlOO,OOO.OO) nor more than Five hundred thousand 
pesos (P500,OOO.OO), or both fine and imprisonment at the discretion of 
the court. The offender shall likewise be imposed a fine equivalent to ten 
(10) times the commercial value of the forest products destroyed without 
prejudice to payment of the full cost of rehabilitation of the areas as 
determined by the Department: Provided, 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 SFEDF. 
An offender who is a government officer or employee, in addition to 
the above penalties, upon conviction, shall be deemed automatically 
dismissed from office and permanently disqualified from holding any 
elective or appointive position in the government service. 
SECTION 63. Misdeclaration or Falsification of Reports on 
Forest Resource Inventory, Scaling, and Survey by a Government 
Official or Employee. - Any public officer or employee who knowingly 
misdeclares or"falsifies reports pertaining to forest resource inventory, 
scaling, survey, and other similar activity which are contrary to the 
criteria and standards established in the rules and regulations 
promulgated by the Secretary shall, after an appropriate administrative 
proceeding, be dismissed from the service with prejudice to re-
employment. Upon conviction by a court of competent jurisdiction, the 
same public officer or employee shall further suffer an imprisonment of 
not less than eight (8) years nor more than twelve (12) years and a fine of 
not less than One hundred thousand pesos (PlOO,OOO.OO) nor more than 
Five hundred thousand pesos (P500,OOO.OO). The inventory, survey, 
scale, classification, and similar reports referred herein shall be rendered 
null and void. 
SECTION 64. 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, upon conviction by a court of 
competent jurisdiction, be punished by imprisonment of not less than 
eight (8) years nor more than twelve (12) years and a fine of not less than 
Five hundred thousand pesos (P500,OOO.OO) 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 including the responsibility for a person who will operate and 
is operating a wood processing plant and/or other downstream forest-
based industries. 


SECTION 65. Prohibition on the Issuance of Tax Declaration 
on Forest Lands. - Any local government official or employee who issues 
a tax declaration for any purpose on any part of forest lands shall, upon 
conviction, be penalized with imprisonment for a period of not less than 
four (4) years nor more than eight (8) years and a fine of not less than 
One hundred thousand pesos (PIOO,OOO.OO) nor more than Five hundred 
thousand pesos (P500,OOO.OO) and perpetual disqualification from 
holding an elective or appointive office. 
SECTION 66. UnlawfUl Possession of Implements and Devices 
Used by Forest Officers. - Any person found possessing or using 
implements and devices used by forest officers shall be penalized with 
imprisonment for a period of not less than eight (8) years nor more than 
twelve (12) years and a fine of not less than One hundred thousand 
pesos (PIOO,OOO.OO) nor more than Five hundred thousand pesos 
(P500,OOO.OO) in addition to the confiscation of such implements and 
devices and the automatic cancellation of any license agreement, license, 
lease or permit. 
Any forest officer who willingly allows unauthorized person(s) to 
use these implements and devices under one's care shall be penalized 
with imprisonment for a period of not less than six (6) years and one (1) 
day to no more than twelve (12) years and a fine of not less than One 
hundred thousand pesos (PlOO,OOO.OO) nor more than Five hundred 
thousand pesos (P500,OOO.OO). In addition, the forest officer shall be 
dismissed from the service with prejudice to reinstatement and with 
perpetual disqualification from holding an elective or appointive position. 
SECTION 67. Unauthorized Introduction of Logging Tools and 
Equipment Inside Forest Lands. - It shall be unlawful for any person 
or entity to possess, bring or introduce any logging tools or equipment 
inside forest lands 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) years and one (1) day to twelve (12) years or a fine of not less than 
One hundred thousand pesos (PI00,OOO.OO) nor more than Five hundred 
thousand pesos (P500,OOO.OO) or both imprisonment and fine at the 
discretion of the court, and confiscation of said logging tools and 
equipment in favor of the government. 


SECTION 68. Non-Payment and Non-Remittance of Forest 
Charges. - Any person who fails to pay the amount due and payable as 
forest charges to the government shall not be allowed to transport, 
convey, sell, nor use the timber or forest product. Moreover, failure to 
pay within thirty (30) days upon assessment of forest charges shall be a 
ground for confiscation of the said timber or forest product in favor of the 
government. Any person who fails or refuses to remit to the proper 
authorities said forest charges collectible pursuant to the provisions of 
this Act or the National Internal Revenue Code of 1997, as amended, or 
who delays, obstructs or prevents the same, or who orders, causes or 
effects the transfer or diversion of the funds for purposes other than 
those specified in said Acts shall, upon conviction, be imprisoned for not 
less than six (6) years nor more than twelve (12) years and fined from 
One hundred thousand pesos (PIOO,OOO.OO) to Five hundred thousand 
pesos (P500,OOO.00) in addition to the payment of the assessed forest 
charges. If the offender is a corporation, partnership or association, the 
officers and directors thereof shall be liable. 
SECTION 69_ Institution of Criminal Action by Forest 
Offtcers.- Any forest officer shall arrest even without a warrant any 
person who has committed or is about to commit, or is committing in his 
presence any of the offenses defined in this chapter. The tools, animals, 
equipment and conveyances used in committing the offense, and the 
forest products cut, gathered, 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 twenty-four (24) 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 or barrio official, 
or any qualified person to protect the forest and exercise the powers or 
authority provided for in the preceding paragraph. Reports and 
complaints regarding the commission of any of the offenses defined in 
this chapter not committed in the presence of any forest officer or any 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. 
SECTION 70. 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 or forest products, wholly or partially, shall suffer the 
penalty provided for in malversation of public funds or property, of the 
Revised Penal Code. In addition, the said public officer shall be dismissed 
from service with prejudice to reinstatement and with perpetual 
disqualification from holding any elective or appointive office. 
SECTION 71. Citizen's Suit. - Any citizen may file an appropriate 
civil, criminal or administrative action in the proper court against: 
(a) 
Any person who violates or fails to comply with the 
provisions of this Act or its implementing rules and 
regulations; 
(b) 
The Department or other implementing agencies with 
respect - to orders, rules and regulations issued 
inconsistent with this Act; and 
(c) 
Any public officer who willfully or grossly neglects to 
perform an action specifically enjoined as a duty by 
this Act or its implementing rules and regulations; or 
abuses his authority in the performance of his duty; or 
in any manner improperly performs his duties under 
this Act or its implementing rules and regulations. 
However, no suit can be filed until after thirty (30) 


days notice has been given to the public officer or the 
alleged violator concerned and no appropriate action 
has been taken. 
ARTICLE XII 
Administrative Provisions 
SECTION 72. Development of Mechanisms for Private Sector 
Participation in Forest Management. -
The Secretary is hereby 
authorized to adopt appropriate mechanisms to strengthen private sector 
participation in forest management, which shall include the accreditation 
of a national organization of private investors including those for profit, 
NGOs and POs. The accredited national organization shall assist the 
Department in the formulation and review of relevant policies to ensure 
the contribution of the forestry sector to the national economy and 
sustainable development. It shall also assist the Department in 
evaluating applications for forest management agreements, monitoring 
the performance of holders of commercial tenure instruments, ensuring 
the local supply of timber and wood products, providing producers with 
access to local and international markets; enhancing various ecosystems 
services; and ensuring the maintenance of high conservation values. 
SECTION 73. Administrative Authority of the Secretary or His 
Duly Authorized Representative to Order Cotifiscation. - In all cases 
of violations of this Act or other forest laws, rules and regulations, the 
Secretary or his duly authorized representative may order the 
confiscation of forest products illegally harvested, cut, gathered, removed 
or possessed or abandoned, and all conveyances used either by land, 
water or air as well as all machinery, equipment, implements and tools 
used in the commission of the offense and to dispose of the same in 
accordance with pertinent laws, regulations or policies on the matter. 
If the confiscated forest products are in danger of deteriorating, the 
Secretary may order that the same be sold at public auction even before 
the termination of the judicial proceedings, with 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. 
SECTION 74. Administrative Authority of the Secretary to 
Impose Fines. - In all cases of violations of this Act and other forest 
laws, rules and regulations where' fine is the principal penalty, the 
Secretary, after consultation with the forest-based industries affected, is 
hereby authorized to impose administratively the penalty consisting of 
the amount and the schedules of the fine which shall be officially 
published in a national newspaper of general circulation. 
SECTION 75. Authority of Forest Officers. - When in the 
performance of their official duties, forest officers or other government 
officials or employees duly authorized by the Secretary shall have free 
entry into areas covered by a contract, agreement, license, lease or 
permit. Forest officers are authorized to inspect and to open closed vans 
suspected to contain illegally harvested, collected or transported forest 
products: Provided, that it is done in the presence of the shipper or 
consignee or two (2) responsible public officials in the locality. Forest 
officers are authorized to administer oath, take 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 thereto. 
SECTION 76. Visitorial Functions. - The Secretary or his duly 
authorized representative shall, from time to time, investigate, inspect, 
and examine records and other documents except bank records related 
to the operation of any person granted the privilege, contract or 
agreement to utilize forest resources to determine compliance with the 
terms and conditions stipulated in the grant, contract or agreement, this 
Act, am;l pertinent laws, rules and regulations. 
SECTION 77. Authority of the Secretary to Revert Lands 
Needed for Forest Purposes. - When the national interest so demands, 
the Secretary is hereby authorized, through any available legal remedies, 


to revert lands currently used for agricultural production or other 
purposes into forest uses or for biodiversity conservation. 
SECTION 78. Protection to Witnesses in Cases Involving 
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. 
SECTION 79. Transitory Provisions. - Upon the approval of this 
Act, the Department shall evaluate the conditions of all forest lands 
covered by existing tenure instruments, memoranda of agreements 
(MOAs) and other agreements and contracts which shall be allowed to 
continue until their expiration, unless otherwise earlier terminated for 
cause. 
SECTION 80. Implementing Rules and Regulations. -
In 
consultation with the Departments of the Interior and Local Government, 
Finance, Agriculture, Budget and Management, and other relevant 
agencies and stakeholders, the Secretary of the Department shall 
formulate the rules and regulations to implement the provisions of this 
Act. 
SECTION 81. Congressional Oversight Committee. - There is 
hereby created a Congressional Oversight Committee to oversee the 
implementation of this Act composed of seven (7) members from the 
Senate Committee on Environment and Natural Resources and seven (7) 
members from the House of Representatives Committee on Natural 
Resources. 
The secretariat of the Oversight Committee shall be drawn from the 
existing secretariat personnel of the committees comprising the oversight 
and the funding shall be taken from the appropriations of both the 
House of Representatives and the Senate. 
SECTION 82. Moratorium or Ban on Logging. - Congress shall 
provide, for such period as it may determine, measures to prohibit 
logging in endangered forests and watershed areas. 


ARTICLExm 
Final Provisions 
SECTION 83. Separability Clause. - If any provision of this Act 
is declared unconstitutional, the validity of the other provisions shall not 
be affected by such declaration. 
SECTION 84. Repealing Clause. - Subsections (b), (d), (e), (f), (g) 
and (i) of Section 4 of Act No. 3915; Republic Act No. 460; Republic Act 
No. 7161; Presidential Decrees Numbered 953, 1153, 1515, 705 as 
amended by 1559, 1775 and 1998; Letter of Instruction No. 818; 
Executive Orders Numbered 277 and 278, series of 1987; and Executive 
Orders Numbered 263, 318 and 725, series of 1981 are hereby repealed. 
All other laws, orders, rules and regulations or parts thereof that are 
inconsistent herewith are likewise hereby repealed or amended 
accordingly. 
SECTION 85. Effectivity. - This Act shall take effect thirty (30) 
days after its pUblication in the Official Gazette or in two (2) newspapers 
of general circulation. 
Approved,