SIXTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

House Bill No, 3008

EXPLANATORY NOTE

This bill was originally introduced as House Bill Nos. 2184 and 2189 by the
undersigned Rufus B. Rodriguez during the Fourteenth Congress where it was approved by
the House of Representatives and transmitted to the Senate. It was again re-filed during the
45" Congress as House Bill 45 where it was again approved by the House of
Representatives and transmitted to the Senate where it was not acted upon.

This bill mandates the development and adoption of a sustainable forest
management strategy based on rational allocation of forestland uses and promotion of land
use practices that increase productivity and conserve soil, water, and other forestland
resources, protection of existing forest resources and conservation of biodiversity,
rehabilitation or development of denuded areas to expand the forest resource base and
promote food production activities,

‘As of December 31 2004, the Philippines have a total land area of 30,000,000
hectares, 52.8% of which, or 15,851,473 hectares classified as forest land. The Southern
Tagalog Region has the biggest area of forest land, with 2,178,871 hectares or 7% of total
forest land found in said area, The province of Palawan having the biggest area of forest
land among all provinces in the Philippines, with 1,057,499 hectares or 3.5% of the total
forest land found in said province.

As of year 2000, the leading cause of forest disturbance is illegal cutting, with a total
of 4,920 hectares of land destroyed, the highest incidence since the 1990s. There were two
major causes in the decline of stocks of forest resources during the period 1988 to 1994.
The country lost resources worth P48.6 billion to harvesting and other logging activities,
while the conversion of forestland to non-forest use accounted for P20.4 billion in losses.
Also contributing to the decline in stocks were forest fires, accounting for P439,7 million, and
the natural death of trees (stand mortality) which accounted for P5.9 billion. Demand for
agricultural land is also one of the main reasons that forests continue to be erased at the
rate of 13 million hectares a year. By 2005, forests were estimated at 47 % of the total land,
from 51% in 1990. From 1990 until 2000, the rate of deforestation of the Philippines is 1.4%.
The Philippines is the highest among the Southeast Asian Nations together with Myanmar
with the same rate.

Clearly, there is therefore a need to ensure that our forests are restored to its old
grandeur and richness. This bill aims to address such need by implementing a plan for
sustainable forest management guided by the following principles:

4 Watershed as the basic forestland management unit Forestlands
shall be conserved, developed, and managed utilizing watershed as
the basic management unit and under the concepts of sustainable and
multiple-use management, including the conservation of bio-diversity;


2 Muti-sectoral participation- The participation of all sectors of society
in sustainable forestland conservation, management, and
development shall be promoted. Equitable sharing of the benefits
derived from forestlands shall be ensured at all times;

3 Community-based forest management (CBFM) as a principal
strategy- Vesting access rights and responsibilities to forest resident
families, local communities, and indigenous peoples to undertake the
management and development of appropriate forestland resources on
a sustainable basis shall have precedence over other strategies;

4, Protection of forestlands and natural resources as priority concem.-
The protection of forestlands, especially protected areas and the
natural resources therein shall be given priority concem in order to
ensure environmental stability, enhance biological diversity, increase
productivity, and provide economic benefits;

5. Reforestation as a priority measure. Economic and ecological
reforestation shall be given priority emphasis in order to rehabiltate
and restore the usefulness or productivity of denuded and degraded
forestlands as well as increase the income of communities concerned;

6. ‘Security of tenure of stakeholders. In pursuance of the principles of
sustainable and multi-use forest management and equitable access to
forest resources, a secured tenure shall be guaranteed to
stakeholders concemed; and

if Professionalism in forest service- A dynamic, professional and
people-oriented forest service shal be established and fully supported
by the government.

There have been a wide range of players involved in forest rehabilitation in the
Philippines in the last few decades including the national government, NGOs, private
companies, LGUs, local communities and private land owners. Ensuring longterm
sustainability appears to be one of the biggest challenges facing many of the initiatives,

This proposed measure aims to ensure that our forests meet the needs of the present
generation without compromising the ability of the future generations to meet their own
needs.

In view of the foregoing, immediate passage of this bill is earnestly requested.

RUFUS B. Rt UEZ

MAXIMO, IGUEZ, JR.


SIXTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES,

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

House BillNo. __ 3908

AN ACT
PROVIDING FOR THE PROTECTION, REHABILITATION, AND SUSTAINABLE
MANAGEMENT OF FOREST ECOSYSTEM AND FOR OTHER PURPOSES

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:

CHAPTER!
BASIC FORESTRY POLICIES

SECTION 1. Short Title. This Act shall be known as the “Sustainable Forest Management
Act of 2013”.

SEC. 2. Basic 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:

(2) 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;

(©) 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;

(4) 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:
i. 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.

ii. 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.


Community-Based Forest Management (CBFM) Founded on Empowerment of
Local Communities and Indigenous People 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. CBFM shall have the support of Department, the
National Commission on Indigenous Peoples (NCIP) and the LGUs. The participation
of the private and other sectors in the CBFM shall be encouraged and promoted in
conformity with pertinent regulations;

iv. 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;

v. 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 people;

vi. Security of Tenure of Stakeholders. Pursuant to the principles of sustainable and
muti-use forest management and equitable access to forest resources, a secured
tenure shall be guaranteed to stakeholders concemed;

vil. 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

vill, Professionalism in Forest Service. A dynamic professional and people-oriented

forest service shall be established and fully supported by the government.

SEC. 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 NIPAS 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 RA No. 8371 or the Indigenous
Peoples Rights Act (IPRA) of 1997.

Al 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.

SEC. 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.
(©) ‘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 simutaneously or sequentially through the application of
management practices which are compatible with the local cimate, topography, slope, soll,
as well as the cultural patterns or customary laws of the local population,
(Ancestral Domain shall refer to all areas generally belonging to indigenous
cultural communities or indigenous peoples (ICCs/ IPs) as defined in RA No. 8371.


(ec) Ancestral Lands shall refer to lands occupied, possessed and utilized by
members of the ICCs/IPs as defined in RA 8371

) 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.

(9) Chain-of-Custody (CoC) shal refer to the path that forest products take from the
forest to the consumer, including all manufacturing, transformation and distribution links.
(0) Climate Change shall refer to a change in climate that can be identified by

changes in the mean andlor 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.

@ Communal Forest shall refer to a tract of forestland set aside and established for
and under the protection, administration, and management of a city, municipality, or
barangay as a source of wood material for fuel, shelter, and manufactured products; as
source of water for the community; and as an area for ecotourism and/or environmental
protection or socio-economic projects of local government units consistent with sustainable
development.

) ‘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

3) Conservation shall refer to planned protection and management of forests and
their resources so as to prevent waste and ensure future use.

0) 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 govemment, for the former to develop, utilize and
manage consistent with the principles of sustainable development, land or portion of
forestland 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.

oO) Delimitation shall refer to the establishment of permanent boundartes between
forest lands, national parks/protected areas and agricultural lands as a resut of
demarcation.

@ 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.

0 ‘Demarcation shall refer to the establishment of boundaries using visible markers,
monuments or known natural featuresfandmarks, among others, as result of the actual
ground delineation.

(s) ‘Denuded Forest Lands shall refer to forest lands that are devoid of forest tree
cover.

i) Department shall refer to the Department of Environment and Natural Resources
@ 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 ike furnitures, handicrafts and the ike.
() ‘Ecosystem shall refer to iving communities, the environment they live in, and their
interactions.


(w) Ecotourism shell 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
socio-cultural practices of its people.

co) 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, mitigating, or enhancement measures.

) 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 social-economic environment and
designing the appropriate mitigating and enhancement measures.

@ 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 SFEM principles,
criteria, and indicators

(cc) | Forest Certification shall refer to the Department system of certifying forest
management units (FMU) 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
Taw materials or products derived from forests such as, but not imited 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.

(gs) 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 maintenance, polination, soil formation and nutrient cycling, water infitration,
production of atmospheric 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 cutures (such as cultural identity and integrty, 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.

i) Forest Line shall refer to the boundary on the ground between the forest lands
and other lands of the public domain.
di) 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 fo 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
0 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 by- products and derivatives which can be raw material assets that
can produce more value-added products, or non-biomass such as soll, water, scenery, as
well as the intangible services and values present in forest lands or in other lands devoted
for forest purposes.
(co) Grazing Land shall refer to a portion of the public domain which has been set
aside, in view of the suitabilty 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 (IP) shall refer to a group of people or tribe of indigenous
Filipinos as defined or described under the Indigenous Peoples Rights Act (RA 8371).
(7) Industrial Forest Plantation shall refer to any tract of land planted mainly to
timber-producing species including rubber and/or non-imber 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 on
the Constitution, where a company is established by the contractor and the govemment with
both parties having equity shares and sharing in equity earings.
(tt). Kaingin shall refer to forest lands which has been subjected to unsustainable
shifting and/or slash-and-burn cultivation.
(uu) Managed Forest shall refer to a forestland under a deliberate system of
protection, rehabilitation, and development, which include utiization of resources, to ensure
the continuous production of desired forest products and/or services and the conservation of
soil, water, wildife, and other natural resources therein.
(w) ___ Miltigation in the context of climate change, shall refer to human intervention to
address anthropogenic emissions by sources and removals by sinks of all Green House
Gases (GHGs), including ozone depleting substances and their substitutes.
(ww Multiple-use shall refer to the harmonized utilization of land, soil, water, wildife,
recreation value, grass and timber of forest lands.
(x) National Park shall refer to the land of public domain classified as such in the
1987 Philippine Constitution which includes all areas under the National Integrated
Protected Areas System (NIPAS): pursuant to RA 7586, primarily set aside and designated
for the conservation of native plants and animals, their associated habitats and cultural
iversity
(y) __ 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.
(2aa) 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 utilzation 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 product 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 forestland and its resources.

(cg9) REDD Plus shall refer to a broad range of actions to reduce emissions from
deforestation and forest degradation (REDD), including the conservation of carbons stocks,
sustainable management of forests and enhancement of forest carbon stocks.

(hhh) Reforestation shall refer to the planting of trees or attificial establishment of
forests in areas that were previously forested.

(ii) Rehabilitation shall refer to the reforestation and afforestation activities including
mechanical measures such as contouring and terracing,

(ij) 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 forestiand to its original state in
terms of species composition, structure, function and productivity.

(ll) ‘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 (DENR).

(coo) 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 tress of desired species necessary to assure future crop of timber and forest cover
forthe protection and conservation of soll, water, and wildlife

(ppp) _Silvicuitural 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.

(1) Sustainable Forest Ecosystem Management (SFEM) or Sustainable Forest
Management (SFM) shall refer to the process of ecosystem-based management of forest to
achieve one ot more clearly spectfied objectives of management with regard to production of
continuous flow of desired forest products and environmental services without undue
reduction ofits inherent values and future productivity and without undesirable effects on the
physical and social environment.


(sss) Tenure shall refer to a privilege given by 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 mejor 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 8%, the gradient below the level at which erosion
becomes deposition, which generally has several tributaries, and whose catchments are
referred to as watersheds.

(vw) Uplands shall refer to land areas located on slopes of more than 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.

(oo) 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 socio-economic 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;

(aaa) 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 sustainabilty;

(bbbb) Witdtife shall refer to wild forms and varieties of flora and fauna in all
developmental stages

(cece) Wood-based industries shall refer to vatious 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 fumiture and secondary
processed wood products manufacturing

CHAPTER II
FOREST LANDS
SEC. 5. Permanent Forest Lands. Al 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.

SEC. 6, Establishment of Forest Lines. Within two years upon the effectivity of this Act,
the Department shail 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 satelite imagery interpretations, and other available and reliable sources of
information.

Within five 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
fixed 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 ines.


Records pertaining to the specific Imits of forest lands shall be made available to the
public upon request. Moreover, the Department shall fumish all provincial, municipal and
city govemment copies of the maps of permanent forest lands located within their respective
territorial jurisdictions,

SEC. 7. Sub-Classification of Forest Lands. The forest lands shall be sub-classified into
the following categories according to primary use:

@) 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 imited to, logging and mining
are banned in protection forest lands: Provided, That the provisions of the IPRA 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.

(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 nor-forest products or the establishment of industrial tree plantations, tree farms,
communal forests, agro-forestry, grazing, or as mutiple-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 (a) of this Section, if present,
production forest lands shall be managed and developed as part of forest management units
(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 govemed by IPRA law.

CHAPTER Ill
ADMINISTRATION AND PLANNING FOR SUSTAINABLE MANAGEMENT
OF FOREST LANDS

‘SEC. 8. Jurisdiction and Controt of Forest Lands and Forest Resources.

The Department shail be the primary agency responsible for the conservation, management,
development and utifzation of all forest lands and the unclassified lands of the public domain
including all the resources found therein. In coordination with LGUs and other govemment
agencies, the Department shall ensure that forest lands and unclassified lands of the public
domain are managed, conserved, developed, utiized, and protected consistent with the
policies and strategies promulgated in this Act. The utiization and development of forest
lands and unclassified lands of the public domain including the natural resources therein
shall be undertaken in accordance with Department-approved management plans: Provided,
That management plans for protected areas shall be prepared in accordance with the
provisions of the NIPAS Act

SEC. 9. Partitioning of Forest Lands into Forest Management Units (FMU). For the
purpose of assigning respective areas of operations and management of forest lands, these
shall be partitioned into Forest Management Units based on LGU jurisdiction and ancestral
domain found therein: Provided, That in case of any unresolved boundary conficts between
or among adjoining LGUs, the Department shall define the FMU boundaries along the areas
of conflict: Provided further, That each existing erea covered by an approved tenure
instrument shall be considered as a Forest Management Unit.

SEC. 10. Tenure Instruments. The assignment of open-access/untenured FMU-evel
Management to LGUs and other stakeholders shall be determined by Department in


accordance with appropriate rules and regulations: Provided, That existing and valid tenure
instruments shall continue under their terms and conditions.

SEC. 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 powerhvater utilities service providers, shall be inclided 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 concemed:
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.

SEC, 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 Investment, 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.

SEC. 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 muti-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 years to be attuned with current and emerging
issues and development.

) 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: (i) enhancing forest
ecosystems adaptation to and mitigation of cimate change; (ii) 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 (ii) 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 livethood and income for local communities, by
means of ecosystem-based adaptation measures. The River Basin Master Plans shall be
prepared every five years by the concerned Regional Office(s) of the Department in
colaboration with the Regional Development Councils and other stakeholders and submitted
to the Department Secretary for approval.

© FMU Management Plans. As co-managers of the FMU, LGUs, or the private
sector and other stakeholders concemed, following a Department-prescribed template, shall
be responsible in preparing a five-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 concemed Department regional office.

(a) Annual Operations Plans. To facilitate implementation of the FMU Management
Plan, a detailed annual operations plan in accord with the FMU management plan shall be
prepared by the FMU concemed 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.

CHAPTER IV
SUSTAINABLE FOREST ECOSYSTEM MANAGEMENT
PROGRAMS AND OPERATIONS

SEC. 14. Assigning the Implementation of National or Local Forestry Programs to
CBF. 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 Reduced Emission from
Deforestation and Forest Degradation (REDD Plus).

SEC. 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 Payment for Environmental Services
(PES), as well as the applicable financing made available for the purpose. Payment for
Environmental Services, REDD Plus, and other sources shall be accessed to provide
financing for carbon sequestration and storage activities of FMU operators. The Department,
in colaboration with the Climate Change Commission, shall formulate the regulations
governing carbon trading.

SEC. 16. Ecotourism. FMU management shall enhance and conserve the ecotourism
values found in forest lands. Timber harvesting for whatever purposes, commerciatscale
collection of non-timber forest products, farming, grazing, aquaculture, and infrastructure
development shall be prohibited in Ecotourism Zones of the FMU, except as part of the
tourism development program of the FMU and as indicated in the approved FMU
Management Plan. Design and construction of tourism infrastructures shall be in accord with
‘enhancement of the natural characteristics and/or attraction of the site

SEC. 17. Resources Management for Non-Timber Forest Products. FMU management
for non-timber forest production shall be conducted in appropriate areas. Harvesting of non-
timber forest products shall be on sustainable basis, promote productivity of the non-timber
forest product resources, and minimize any disturbance of the soil, water, and biodiversity
resources of the site. Domestication of resource bases of nonimber forest products shall be
encouraged

SECTION 18. Sivicultural Systems. SiNvicutural 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 folowed immediately by tree planting as well as maintenance of planted
trees until they are fully established.

SEC. 19. Agroforestry. Agro-forestry shall be one of the key upland development
strategies to be used in developing forest areas occupied by upland farmers.

SEC. 20. Mangrove Development and Management. Rehabilitation of degraded mangrove
forests through afforestationteforestation/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. Estabishment of new mangrove plantations in
tandem with fishpond development (aque-silviculture) may be allowed in Mangrove
Production Zones provided that not more than 20% of areas to be developed shall be
devoted to fishpond farming activities. The mangrove plantations established within the
aque-siviculture 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 Pian: 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.

SEC. 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
Department approval shall be obtained: Provided, That mined-out areas shall be
immediately rehabilitated.

SEC. 22. Built-up Areas in Forest Lands. Human settlements, roads and other
infrastructure shall be designated buit-up areas of the FMU.

SEC. 23. Forest Protection. Protection of forest lands against land-use conversion, illegal
extraction of forest products, fire, pests and diseases, invasive species, chemicals, clmate-
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.

SEC. 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 forestfree parks in urban areas, school grounds, and open spaces of
housing projects shall be established in cities and municipaties. Department and forestry
research and academic institutions shell 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.

CHAPTER V
UTILIZATION OF FOREST RESOURCES
SEC. 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 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.

SEC. 26. Harvesting of Forest Products. Harvesting of timber and nontimber forest
products 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

SEC. 27. Management and Utilization of Forest Resources Within Forest Lands.
Extraction of timber and non-timber forest products, and agricukural crops, their by-products
and derivatives, whether from natural forest, planted, or raised through application of
appropriate sitvicultural 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 non-timber forest products, agricultural crops, their by-products and
derivatives from areas covered by Certificate of Ancestral Domain Titles (CADT) or
Certificate of Ancestral Land Claims (CALC) shall be governed by R.A. 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 chain-of-custody (CoC) certificate issued by the FMU management.
Relevant information in the CoC shall be transmitted to the Department's on-line 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 in 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 Forest Management Bureau.

SEC. 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, who
shall have the right to sell, contract, convey, or dispose of the same without the necessity of
any clearance from the Department: Provided, That government shall provide the
appropriate incentives provided under Section 46

SEC, 29. Administration and Utilization of Forest Resources within Ancestral Domain.
The utiization of forest resources within ancestral lands and domains shall be governed by
the provisions of this Act and R.A. 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 Certificate of Ancestral Domain Title
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
Environmental Impact Assessment (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.

SEC. 30. Transport of Forest Products and Confiscated Forest Products. Transport of
timber and non-timber forest products that do not carry a CoC number and is not supported
by CoC documentation, as provided for in Section 36 of this Act, shall be prohibited, Timber


and non-timber forest products that do not cary a CoC number shall be considered as
coming from illegal sources and subject to confiscation.

SEC. 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. 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.

SEC. 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.

SEC. 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 plantations 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 intemational 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
intemational 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.

‘SEC. 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.

‘CHAPTER VI
MONITORING AND CONTROL OF FOREST MANAGEMENT
AND UTILIZATION
SEC. 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.

SEC. 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.

SEC. 37. Forestry Information System (FIS). The Department shall establish a forestry
information system 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 @ 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
Tesource inventory at least once every five (5) years to ensure effective management.

SEC. 38. Conflict Resolution. 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 themseives. 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.

CHAPTER Vil
‘SUPPORT SYSTEMS

SEC. 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 issuance of this Act,
CHED shall evaluate forestry schools and formulate guidelines to be observed in the
phasing-out of sub-standard schools in coordination with the Department, the Board of
Examiners of the Professional Regulations 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 sub-standard 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.

SEC. 40. Capacity-Building. The Department shall develop and implement a program to
develop the capacity of LGUs and other stakeholders in forestry resources management.

SEC. 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 Ecosystems
Research and Development Bureau (ERDB), 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 ife, and adaptive capacity to cimate change. Appropriate technology shall
be used to protect the environment, reduce climate change effects, increase community
adaptation to climate change and enhance their livefhood,

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 ere beneficial to forest ecosystems
services for the country.

SEC. 42. Policy Research and Development. The Forestry Development Center (FDC)
based at the University of the Philippines, Los Bafios (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 Forest Management Bureau 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 herein.

SEC. 43. Forestry Extension Services. With support from LGUs, NGOs, media and other
organizations, the Philppine Information Agency (PIA), the Department of Education
(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.

SEC. 44, Strengthening of the Forest Management Sector. in order to effectively
implement the provisions of this Act, the Forest Management Bureau (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.

CHAPTER VIII
‘SYSTEM OF INCENTIVES

SEC. 45. Incentives for Engaging in Forest Development. Incentives as provided for by
existing laws such as the National Intemal Revenue Code, as amended and Executive
Order 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.

SEC. 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) Exemption from the payment of forest charges imposed under the provisions of this
Act;

(©) 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;

(4) The Board of Investments (BO!) 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
Govemment-owned, -controlied and/or -suppoited financial institutions;

() Upon the premature termination of the tenure instrument at no faut 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 property 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.


SEC. 47. incentives for Forest-Based Industries. To enable forest-based industries to be
more efficient, competitive, and economicaly 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) Al processing plants or mills shall be granted operating permits for five (5) years
renewable for another five (5) years, provided that permits for processing plants owned or
operated by holders of forest management agreements or contracts shall be co-terminus
with said agreements or contracts;
(©) _ The Department 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;
(d) _ The Department shall promote and strengthen the linkages among corporate, family-
based, and community-based industries.

SEC. 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
Govemment 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.

CHAPTER IX
FOREST CHARGES, FEES, AND SHARING

SEC. 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
colection of such fees and govemment 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, imigation, domestic and industrial, and for carbon
sequestration and biodiversity benefits respectively, by parties/industries concemed.

SEC. 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.

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 and
Department of Agriculture, first and second group wood may be removed for firewood
purposes from land which is more valuable for agricultural than for forest purposes.

Charges on Non-Timber Forest Products. All other forest products of forest lands which
are not covered by the preceding section shall be exempt ftom 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 non-timber
forest products gathered within forest lands, afenable and disposable lands, and private
lands. All planted trees and non-imber forests products 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 prevaiing market price,
which shall likewise provide for the time, manner, and place of payment of such charges.
‘The Department shall allocate 50% of forest charges collections to reforestation and natural
regeneration programs.

SEC. 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 responsibilties 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.

SEC. 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, irigation and power generation, biodiversity and
eco-tourism 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 imited
to, power generation, supplying domestic and irigation water, eco-tourism and carbon
trading shall be developed and promoted to finance forest protection, rehabilitation,
reforestation, afforestation, agro-forestation and development.

SEC. 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
Tesources as basis for equitable sharing in REDD-plus payments.

CHAPTER X
APPROPRIATIONS AND FINANCIAL SUPPORT
SEC. 54. Appropriations. The Secretary of the Department of Environment and Natural
Resources 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 local govemment units, the funding
requirements shall be taken from their internal revenue allotment (IRA) and other LGU
income.

SEC. 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 program, information and
educational campaigns as well 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 concemed agencies.

CHAPTER XI
OFFENSES AND PENALTIES

SEC. 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 forestiand, or naturally grown timber inside allenable 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 rectusion temporal minimum period andior 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 fable; and if such officer is an alien, he/she shall, in addition to the
penalty, be deported without further proceedings on the patt of the Bureau of immigration
and Deportation. Offenders who are public officials shall be deemed automatically
dismissed from office and permanently disqualified from holding any elective or appointive
position in the government.

If the market value of the timber or other forest products is more than Five Hundred
Thousand Pesos (Php500,000,00), the offender shall be guity of economic sabotage and
the imposable penatty 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, fltches,
lumber from the economic saboteurs as defined in this Section and/or use the same logs,
fitches, 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, fitches, lumber, and the
subsidiary penatties provided herein.

Al 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:

SEC. 67. 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 reciusion
perpetua.

SEC. 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.

SEC. 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 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.

SEC. 60. Grazing Livestock on Forest Lands Without a Permit. Any person found to
have caused the grazing of Ivestock 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 times
the regular shares due in addition to confiscation of the livestock and all improvements
introduced in the area in favor of the govemment: 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 penaties, be deemed automatically dismissed from office and
permanently disqualified from holding any elective or appointive position in the govemment
service.

SEC. 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 forestland 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 negigently 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-bum 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 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 shail be imposed upon the offender who repeats the same
offense, and double the maximum pena 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 goverment 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
tothe SFEDF.

If the offender is an alien, he/she shall be deported after serving his 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, be deemed automatically dismissed
from office and permanently disqualified from holding any elective or appointive position in
the goverment service.

‘SEC. 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 park 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 (P100,000.00) nor more than Five Hundred Thousand
(P500,000.00), or both fine and imprisonment at the discretion of the Court. The offender
shall tkewise be imposed a fine equivalent to ten 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 govemment 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 govemment
service.

SEC. 63. Misdeclaration or Falsification of Reports on Forest Resource Inventory,
Scaling, and Survey by a Government Official or Employee. Any pubic 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 pubic officer or
‘employee shall further suffer an imprisonment of not less than eight (8) years nor more than
twelve (12) years and a fine of not less than One Hundred Thousand Pesos (P100,000.00)
nor more than Five Hundred Thousand Pesos (P500,000.00). The inventory, survey, scale,
classification, and similar reports referred herein shall be rendered null and avoid.

SEC. 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 (P
500,000.00) and confiscation of the wood processing plant and complementary equipment in
favor of the govemment. The Department shall promulgate the necessary guidelines, subject
to the provision of this Act, that will define the terms and conditions including the



responsibilty for a person who will operate and is operating a wood processing plant and/or
‘other downstream forest based industries.

‘SEC. 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 (P 100,000.00) nor more than Five Hundred Thousand Pesos (P
500,000.00) and perpetual disqualification from holding an elective or appointive office.

SEC. 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 of not less than eight (8) years nor more than twelve (12)
years and a fine of not less than One Hundred Thousand Pesos (P100,000.00) nor more
than Five Hundred Thousand Pesos (P500,000.00) in addition to the confiscation of such
implements and devices and the automatic cancellation of any license agreement, license,
lease or permit.

Any forest officer who willingly allows unauthorized person(s) to use these
implements and devices under one’s care shall be penalized with imprisonment 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 (P100,000.00) nor more than Five Hundred Thousand
Pesos (P500,000.00). 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.

SEC. 67. Unauthorized introduction of Logging Tools and Equipment inside Forest
Lands. \t 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 (P100,000.00) nor
more than Five Hundred Thousand Pesos (P500,000.00) or both imprisonment and fine at
the discretion of the court, and confiscation of said logging tools and equipment in favor of
the govemment.

SEC. 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 govemment 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 govemment. Any person who fails or
refuses to remit to the proper authorities said forest charges colectible pursuant to the
provisions of this Act or the National intemal Revenue Code, as amended, or who delays,
obstructs or prevents the same, or who orders, causes or effects the transfer or diversion of
the funds for purposes other than those specified in said Acts shall, upon conviction, be
imprisoned for not less than six (6) years nor more than twelve (12) years and fined from
‘One Hundred Thousand Pesos (P100,000.00) to Five Hundred Thousand Pesos
(P500,000.00) 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.

SEC. 69. Institution of Criminal Action by Forest Officers. Any forest officer shall arrest
even without a warrant any person who has committed or is about to commit, of 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 goverment. 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
offense 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 with the
appropriate official authorized by law to conduct a preliminary investigation of criminal cases
and file the information in court.

SEC. 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 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.

SEC. 71. Citizen’s Sult. Any citizen may file an appropriate civil, criminal, or administrative
action in the proper court against

(@)__ Any person who violates or fails to comply with the provisions of this Act or its
implementing rules and regulations;

(©) __ The Department or other implementing agencies with respect to orders, rules and
regulations issued inconsistent with this Act;

(©) 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 improperty performs his duties
under this Act or its implementing rules and regulations. However, no suit can be filed until
after thirty (80) days notice has been given to the public officer or the alleged violator
concerned and no appropriate action has been taken

CHAPTER Xi
ADMINISTRATIVE PROVISIONS

SEC. 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, non-
government organizations and people's organizations. The accredited national organization
shall assist the Department in the formulation and review of relevant policies to ensure the
contribution of the forestry sector to 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 intemational markets; enhancing various ecosystems services, and ensuring the
maintenance of high conservation values.

SEC. 73. Administrative Authority of the Secretary or his Duly Authorized
Representative to Order Confiscation. In all cases of violations of this Act or other forest
laws, rules, and regulations, the Secretary or his duly authorized representative may order
the confiscation of forest products illegally harvested, cut, gathered, removed or possessed
or abandoned, and all conveyances used either by land, water, or air as well as 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 potcies on the matter.

If the confiscated forest products are in danger of deteriorating, the Secretary may
order that the same be sold at public auction even before the termination of the judicial
proceedings, with the proceeds kept in trust to await the outcome of the judicial proceedings.

No court of the Philippines shall have jurisdiction to issue any Writ of Replevin,
restraining order, or preliminary mandatory injunction in any case involving or growing out of
any action by the Secretary or his duly authorized representative in the exercise of the
foregoing administrative authority.

SEC. 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
steals of the fine which shall be officially published in a national newspaper of general
circulation.

SEC. 75. Authority of Forest Officers. When in the performance of their official duties,
forest officers or other govemment 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 product: 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 thereof.

SEC. 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, and pertinent laws, rules, and
regulations.

SEC. 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.

SEC. 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 farrily of said witnesses shall be given protection, security and
benefit, subject to the provisions of Republic Act No. 6981, otherwise known as “The
Witness Protection, Security and Benefit Act’ and its implementing rules and regulations.


SEC. 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.

SEC. 80, Implementing Rules and Regulations. In consultation with the Departments of
Interior and Local Government, Finance, Agriculture, Budget 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

SEC. 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.

SEC. 82, Moratoriun or Ban on Logging. Congress shall provide, for such period as it
may determine, measures to prohibit logging in endangered forests and watershed areas.

CHAPTER Xill

FINAL PROVISIONS
SEC. 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.

SEC. 84. Repealing Clause. Subsections (b), (4), (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 1859, 1775 and 1998; Letter of Instruction No. 818;
Executive Orders Numbered 277 and 278, series of 1987; and Executive Orders Numbered.
725, Series of 1981, 263 and 318 are hereby repealed. All other laws, orders, rules and
regulations or any part thereof that are inconsistent herewith are likewise hereby repealed or
amended accordingly.

SEC. 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,