SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
Senate Bill No. '1 6 4 4 
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INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
This measure is a consolidated/substituted bill drafted by the Committees 
on Environment and Natural Resources, Finance, Local Government and Ways 
and Means during the 14th Congress. 
Every year, the country experiences natural and man-made calamities. We 
have seen the lost of lives and severe damage to properties due to these 
calamities. To lessen the impact, the government should undertake immediate and 
appropriate plan of action. 
This bill seeks to implement a Sustainable Forest Management Program 
that will ensure the protection, conservation, management and development of 
forestlands and their resources. Said program shall be undertaken by the 
concerned national agencies and the local government units to ensure an affective 
and efficient strategy on forest management. 
Additionally, the bill shall establish a Sustainable Forestry Development 
Fund which will be administered by the Department of Environment and Natural 
Resources to be used for forest protection, reforestation and forest development 
and management, including the rehabilitation and preservation of watershed 
areas, Community Based Forest Management program, information and 
educational campaigns as well as scholarship programs and policy research. 
In view of the foregoing, passage of this bill is earnestly sought. 
Senator 


• 
SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
Senate Bill No. 16 4 4 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
PROVIDING FOR SUSTAINABLE FOREST MANAGEMENT 
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SEP 11 
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Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
CHAPTER I 
BASIC FORESTRY POLICIES 
SECTION 1. Short Title. - This Act shall be known as the "Sustainable 
Forest Management Act of 2013". 
SEC. 2. Basic Policies. - In conformity with the provIsions of the 
Constitution to promote the general welfare and social justice in all phases of 
national development, to protect and advance the right of the Filipino people toa 
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 conservation and management of forestlands 
and their resources: 
a) The specific limits of forestlands after these have been fixed and 
demarcated shall not be altered except through an act of Congress; 
b) The use of forest resources shall bear a social function, responsibility and 
accountability to promote the common good; and 
c) Integrated and sustainable, focusing on the resource and the people who 
manage, conserve and benefit from it, shall be the guiding principle in the 
management, 
protection, 
conservation 
and 
development of forest 
resources. 
In carrying out the above policies, the following strategies shall be pursued: 
1. 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 biodiversity; 
2. Multi-sectoral Participation. - The participation of all sectors of society in 
sustainable forestland conservation, management and development 
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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 dependent families, local 
communities and indigenous peoples to undertake the management 
and development of appropriate forestland resources on a sustainable 
basis shall be the principal strategy; 
4. Protection of Forestlands and Natural Resources as Priority Concern. -
The protection of forestlands, especially protected areas and the natural 
resources in these areas, shall be given priority concern 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 rehabilitate and 
restore the usefulness or productivity of open and/or 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 
concerned; and 
7. Professionalism in the Forest Service. - A dynamic, professional and 
people-oriented forest service shall be established and fully supported 
by the government. 
SEC. 3. Definition of Terms . • As used in this Act, the term: 
(a) "Aforestation" shall refer to the planting of trees or the artificial 
establishment of a forest in areas that were not previously forested. 
(b) "Agro-forestry" shall refer to a strategy for the sustainable management of 
lands which increases their overall productivity by properly combining 
agricultural crops and/or livestock with forest crops simultaneously or 
sequentially through the application of management practices which are 
compatible with the local climate, topography, slope, soil, as well as the 
cultural patterns or customary laws of the local population. 
(c) "Agricultural lands" shall refer to lands of the public domain which have 
been delimited, classified arid declared as such, and are available for 
disposition under the provisions of Commonwealth Act No. 141, as 
amended, otherwise known as the Public Land Act. 
(d) "Ancestral domains" shall refer to aU areas generally belonging to 
indigenous cultural communities (ICCs) or indigenous peoples (IPs) as 
defined in Republic Act No. 8371 or the Indigenous Peoples Rights Act 
(IPRA) of1997. 
(e) "Ancestral lands" shall refer to lands occupied, possessed and utilized by 
members of the ICCslIPs as defined in the lPRA. 
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I 
(f) "Biological diversity or biodiversity" shall refer to the variability among living 
organisms including, inter alia, terrestrial, marine and other aquatic 
ecosystems and the ecological complexes of which they are part. This 
includes diversity within and between species and ecosystems. 
(g) "Buffer zones" shall refer to identified areas outside the boundaries of and 
immediately adjacent to protected areas pursuant to Section 8 of Republic 
Act No. 7586 or the National Integrated Protected Areas System Act of 
1992 (NIP AS Act) that need special development control in order to avoid 
or minimize harm to the protected area. 
(h) "By-product" shall refer to any part taken from wildlife species such as 
hides, antlers, feathers, fur, internal organs, roots, trunks, branches, leaves, 
sterns, flowers and the like. 
(i) "Commercial logging" shall refer to the cutting or felling of trees for the 
purpose of disposing of the cut or felled logs for economic gains beyond 
survival and livelihood means. 
(j) "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 a source of water for the community; 
and area for ecotourism and/or environmental protection or socioeconomic 
projects of local government units consistent with sustainable development. 
(k) "Community-based Forest Management Strategy" shall refer to all 
organized efforts of government to work with forest-dependent families and 
communities inside and adjacent to public forestlands with the intent to 
empower them and entrust to them the protection, rehabilitation, 
management, conservation and utilization of forestlands and their natural 
resources. 
(I) "Conservation" shall refer to planned protection and management of forests 
and their resources so as to prevent waste and ensure future use. 
(m) "Conveyance" shall refer to any vehicle, vessel, device or animal used in 
gathering or transporting forest products. 
(n) "Co-production agreement" shall refer to an agreement entered into by and 
between a qualified person and the government for the former to develop, 
utilize and manage, consistent with the principles of sustainable 
development, a private land or portion of a forestland wherein both parties 
agree to provide inputs and share the products or their equivalent cash 
value. 
(0) "Critical watershed" shall refer to a drainage area of a river system 
supporting existing and proposed hydroelectric power, irrigation works or 
existing water facilities needing immediate protection and rehabilitation to 
minimize erosion and improve water yield. 
(p) "Department" shall refer to the Department of Environment and Natural 
Resources (DENR). 
(q) "Denuded forestlands" shall refer to former forested lands but are now 
devoid of trees due to human activities. 
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(r) "Degraded forests" shall refer to all forestlands containing less than five (5) 
square meters in basal area per hectare of commercial tree species with 
diameters at breast height or diameter above buttress of less than sixty-five 
(65) centimetres. 
(s) "Environmentally critical project" shall refer to a project or program that has 
high potential for significant negative environmental impact 
(t) Environmental Compliance Certificate (ECC)" shall refer to the document 
issued is by the Department certifying that a proposed project or 
undertaking will not cause a significant negative impact on the environment; 
that the proponent has complied with all the requirements of the 
Environmental Impact Assessment (EIA) System in accordance with 
Presidential Decree No. 1151 or the Philippine Environmental Policy and 
Presidential Decree 19 No. 1586, establishing an Environmental Impact 
Statement System; and that the proponent is committed to implement its 
approved Environment Management Plan found in the Environmental 
Impact Statement (EIS) or mitigation measures identified in the Initial 
Environmental Examination (lEE). 
(u) "Environmental Impact Assessment" 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. 
(v) "Environmental, Impact Statement System" shall refer to the organization, 
administration and procedures that have been institutionalized pursuant to 
Presidential Decree No. 1586 for purposes of assessing the significance of 
the effects of any project or undertaking on the quality of the physical, 
biological and socioeconomic environment and designing the appropriate 
mitigating and enhancement measures. 
(w) "Forest" shall refer to land with tree crown cover or equivalent stocking level 
of more than ten percent (10%) and an area of more than half a hectare. 
The trees should be able to reach a minimum height of five (5) meters at 
maturity in situ. It may conSist either of closed forest formations where trees 
of various storeys and undergrowth cover a high proportion of the ground 
01' open forest formation with a continuous vegetation cover in which tree 
crown cover exceeds ten percent (10%). Young natural stands and all 
plantations established for forestry purposes which have yet to reach a 
crown density of ten percent (10%) or tree height of five (5) meters are 
included under forest, as are areas normally forming part of the forest area 
which are temporarily unstocked as a result of human intervention or 
natural causes but which are expected to revert to forest. Forests include 
such stand types as dipterocarp, pine, mossy, molave, beach and 
mangrove. For the purpose of this Act, natural forests may be classified 
according to: (1) primary-use and management, a forest shall be classified 
as either protection forest 01' production forest after its most suitable and 
dominant multi-use function has been determined pursuant to this Act; and 
(2) growth formation, a forest is classified as either closed forest or open 
forest. Closed forests have trees in various storeys and undergrowth that 
cover a high proportion, greater than forty cent (40%) of the ground and do 
not have a continuous dense grass layer. Closed forests 23 are either 
managed 01' unmanaged forests, primary or in advanced state of 
reconstitution, and may have been logged over one or more times but have 
kept their characteristics of forest stands, possibly with modified structure 
and composition. Open forests have trees that are of discontinuous layer, 
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with a coverage of at least ten percent (10%) and less than forty percent 
(40%). 
(x) "Forest charges" shall refer to the levy imposed and collected by the 
government on naturally growing timber and other forest products cut, 
harvested or gathered from the forestlands and from "alienable or 
disposable (A&D)" lands in accordance with Republic Act No. 7161. 
(y) Forest-based industries" shall refer to various industries that are dependent 
on raw materials or products derived from forests such as, but not limited 
to, wood, rattan, bamboo, vines, latex, resins, saps, essences, fruits, 
flowers or wild flora and fauna. 
(z) "Forest-based community" shall refer to a group of people residing inside or 
immediately adjacent to a particular forestland that are largely or partly 
dependent on the forest resources found in the area for their livelihood. 
aa) "Forestlands" shall refer to lands of the public domain that have 
been classified as such and all unclassified lands of the public domain. 
bb) "Forest officer" shall refer to any public officer who, by the nature of 
his 16 appointment or the functions of the position to which he is 
appointed, is delegated by law and regulations or commissioned by 
competent authorities to execute, implement or enforce the provisions of 
this Act and other related laws and regulations. 
cc) "Forest plantation" 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 of any indigenous species, 
or both. 
dd) "Forest products" shall refer to goods and services derived from the 
forest such as, but not limited to, timber, lumber, veneer, plywood, 
fiberboard, pulpwood, fireiNood, 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, game, scenic, historical 
and educational. 
(ee) "Forest resources" shall refer to all resources whether biomass 
such as plants and animals, including its by-products and derivatives, 
which can be raw materials to produce value-added products or non-
biomass such as soil, water, scenery, as well as the intangible services 
and values present in forestlands or in other lands devoted for forest 
purposes. 
(ff) "Forest-resource derivatives" shall refer to substances/materials 
extracted, or as exudates of the trees or part thereof such as, but not 
limited to, resins, gums tanning, beeswax, rosin and alike. 
(gg) "Grazing land" shall refer to a portion of the public domain which 
has been set aside, in view of the suitability of its topography and 
vegetation, for the raising of livestock. 
(hh) "Indigenous cultural community (ICC)" shall refer to a group of 
people or homogenous societies as defined in the IPRA Law. 
Indigenous cultural community is synonymous with indigenous people. 
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(ii) "Industrial Forest Management Agreement (IFMA)" shall refer to a 
production-sharing 
contract entered 
into by and 
between 
the 
Department and a qualified person, whether natural or juridical, wherein 
the former grants to the latter the exclusive right and. responsibility to 
invest in, develop, manage and protect a defined area of the production 
forestland, including the establishment, management and utilization of 
industrial forest plantation, consistent with the principle of sustainable 
development, primarily to supply the raw material requirements of wood-
based processing and energy-related industries and wherein both 
parties share in the benefits therefrom. 
jj) "Industrial forest plantation" or "IFP" shall refer to any tract of land, 
whether public or private, planted to timber-producing species, including 
rubber and durian trees and/or non-timber species such as rattan and 
bamboo, primarily to supply the raw material requirements of forest-
based industries, energy-generating plants and related industries. 
kk) "Integrated forest-based industry" shall refer to a rationalized forest 
resource 
industry which is characterized by the presence of 
complementary timber processing plants such as sawmills, plywood and 
veneer mills, particleboard and fiberboard plants, pulp and paper mills 
as well as secondary and/or tertiary wood processing plants. 
II) "Integrated wood processing plant" shall refer to a combination of two 
(2) or more wood-based processing facilities, whether mechanical or 
chemical or both, such as sawmill, veneer and plywood mills or pulp and 
paper mills, including other facilities in the manufacture of semi- or 
completely finished wood products. 
mm)"Joint venture agreement" shall refer to an agreement wherein the 
government and a qualified person organize a joint venture company, 
with both parties having equity shares, to develop and manage a portion 
of forestland. Aside from earnings on the equity, the government shall 
be entitled to a share in the output computed at a certain percentage 
mutually agreed upon by and beneficial to both parties. 
nn) "Kaingin" shall refer to a portion of the forestland, whether occupied 
or not, which is subjected to a farming system based on shifting or 
slash-and-burn clearing of forest for the planting of agricultural and agro-
forest crops. 
00) "Managed forest" shall refer to a forestland under a deliberate 
system of protection, rehabilitation, development and utilization of 
resources to ensure sustainable production of desired forest products 
and/or services as well as the conservation of soil, water, wildlife and 
other natural resources. 
pp) "Multiple-use forestry" shall refer to the harmonized utilization, 
development and management of forestlands for the production of two 
(2) or more products, goods and/or services in conformity with the 
principle of sustainable development. 
qq) "National park" shall refer to an area of the public domain essentially 
natural wilderness, scenic or historic in character which has been 
withdrawn from settlement, occupancy or any form of exploitation except 
in conformity with an approved management plan and set aside 
exclusively to conserve the area or preserve the scenery, the natural 
6 


• 
, 
v 
and historic objects, wild animals and plants mainly for the purpose of 
biodiversity conservation and/or human enjoyment. 
rr) "Natural forest" shall refer to a forest composed of naturally growing 
indigenous trees, not planted by man, whose structure, composition and 
dynamics have been largely the result of natural succession processes. 
ss) "Nongovernment organization (NGO)" shall refer to a non-stock, 
non-profit and voluntary organization established primarily to provide 
assistance or service. 
tt) "Non-timber forest products" shall refer to all biological materials and 
derivatives other than timber which are extracted from forests for human 
use. 
uu) "Permit" shall refer to a short-term privilege or authority granted by 
the State to a person to utilize any limited forest resources or undertake 
a limited activity within any forestland without any right of occupation 
and possession. 
vv) "Person" shall refer to a natural as well as juridical person, including 
local forest-based communities or IPs organized in accordance with law 
or custom. 
ww) "Processing plant or mill" shall refer to any mechanical setup, 
machine or combination of machines used for the conversion of logs 
and other forest raw materials into semi-finished or finished products. 
xx) "Production sharing agreement" shall refer to a contract between the 
government and a person, whether natural or juridical, wherein both 
parties exercise the right to manage, develop and utilize forest 
resources within a specific area of production forestlands and the period 
of time with 
the person 
providing the financing, 
technology, 
management, personnel, marketing and other inputs necessary to 
implement the agreement, and both parties sharing the benefits under 
the terms and conditions set forth in said agreement. 
yy} "Protected areas" shall refer to identified portions of land and water 
set aside pursuant to the NIP AS Act. 
zz) "Reforestation" shall refer to the planting of trees or artificial 
establishment of forest in areas that were previously forested. 
aaa) "Reservation" shall refer to a forestland that has been reserved 
by the President or by law for any specific purpose. 
bbb) "Rotation" shall refer to the number of years between the initial 
establishment of a plantation and the time when it is considered 
ready for harvesting. 
ccc) "Second-growth forest" shall refer to the status or condition of a 
forest subsequent to commercial logging of which there is more or 
less sufficient volume of residuals of the desired species of trees for 
future harvest. A second-growth forest is synonymous to a residual 
forest. 
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, 
ddd) "Secretary" shall refer to the Secretary of the Department of 
Environment and Natural Resources. 
eee) "Semi-finished wood products" shall refer to wood products 
requiring final stages of manufacture and/or assembly such as, but 
not limited to, window components, tabletops, IS Veneer and other 
similar wood products. 
fff} "Silvicultural practices" shall refer to any scientific intervention to 
further improve or enhance the growth of trees or forest as a whole 
for future harvest. 
ggg) "Sustainable development" means meeting the needs of the 
present generation without compromising the ability of the future 
generations to meet their own needs. 
hhh) "Sustainable forest management" shall refer to the process of 
managing a forest to achieve one (I} or more clearly specified 
objectives of management with regard to the production of a 
continuous flow of desired forest products and services without 
undue reduction of its inherent values and future productivity, and 
without undesirable effects on the physical and social environment. 
iii) "Tenure" shall refer to guaranteed peaceful access to and use of 
specific forestland area and the resources found in the area through 
an agreement, contract or grant, which cannot be altered or 
abrogated without due process. 
jii} "Timber License Agreement (TLA)" shall refer to a privilege 
granted by the State to a person to utilize forest r,esources within a 
forestland with the right of possession and occupation thereof to the 
exclusion of others except the government, 
but with 
the 
corresponding obligation to develop, protect and rehabilitate the 
same in accordance with the terms and conditions set forth in the 
said agreement. 
kkk) "Trade" shall refer to the act of engaging in the exchange, 
purchase or sate of forest products locally or internationally. 
III) "Urban forestry" shall refer to the establishment and management 
of forest 
in 
urban 
environment for the 
physiological 
and 
psychological well-being of the people. 
mmm) "Watershed" shall refer to a land area drained by a stream or 
a fixed body of water and with tributaries having a common outlet for 
surface runoff. 
nnn) "Watershed reservation" shall refer to a forestland that has 
been proclaimed by the President or by law as such, primarily for 
water production purposes although other compatible uses may be 
allowed under sustainable and multiple-use management concepts. 
000) 'Wildlife" shall refer to wild forms and varieties of flora and 
fauna in all developmental stages. 
(ppp) "Wood-based industries" shall refer to various industries that 
use wood as the principal raw material such as, lout not limited to, 
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sawmilling, pulp and papermaking, and plywood and veneer 
manufacturing, the upstream wood-based industries, as'well as the 
secondary and tertiary wood processing such as, but not limited to, 
moldings and furniture manufacturing. 
CHAPTER II 
CLASSIFICATION OF THE PERMANENT FORESTLANDS 
SEC. 4. The Permanent Forestlands. - All lands of the public domain 
classified as forestlands under the Department's land classification program, 
I including the remaining unclassified lands of the public domain, shall be 
maintained as permanent forestlands. 
SEC. 5. Sub-classification of the Permanent Forestlands. - The permanent 
forestlands shall be sub-classified into the following categories according to 
primary use: 
a) Protection Forestlands. - All areas within the forestlands designated or set 
as.ide as such shall constitute the protection forestlands. All mossy and 
primary/old-growth forests and natural beach; all areas one thousand (1,000) 
meters above sea level, areas above fifty percent (50%) slope; areas 
regardless of slope which are highly erodible or too rocky for the 
establishment of either production forests or limited production forests, 
developed for the principal objectives or establishing vegetative cover to 
prevent erosion, conserve water and nurture wildlife, freshwater, swamps and 
marshes; all areas along the bank of 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, settlements, navigation, floatage, 
fishing and salvage shall also be sub-classified as protection forestlands: 
Provided, That reclassification shall be approved by an act of Congress; and 
b) Production Forestlands. - All forestlands not sub-classified as protection 
forestlands, defined in this section, shall constitute the production forestlands 
to be devoted to the production of timber and/or non-timber forest products or 
the establishment of industrial tree plantations, tree farms, communal forests, 
agro-forestry, grazing or as multiple-use forests, including water-based energy 
areas such as, but not limited to, hydrothermal and geothermal reservations: 
Provided, That they shall be managed, developed and utiliz.ed in accordance 
with a Department-approved management plan based on sustainable forest 
management principles. 
CHAPTER III 
ADMINISTRATION AND MANAGEMENT OF FORESTLANDS 
AND THEIR RESOURCES 
SEC. 6. Jurisdiction and Control of Forestlands. - The Department shall 
be the primary agency responsible for the conservation, 
management, 
development and utilization of all forestlands and the unclassified lands of the 
public domain, including all the resources found or growing in these lands. In 
coordination with the local government units (LGUs) and ()ther government 
9 


• 
agencies, the Department shall ensure that forestlands and unclassified lands of 
the public domain are managed, conserved, developed, utilized and protected 
consistent with the policies and strategies promulgated in this Act. The utilization 
and development of forestlands and unclassified lands of the public domain, 
including their natural resources, shall be undertaken in accordance with 
Department-approved management plans: Provided, That the management plan 
for protected areas shall be prepared in accordance with the provisions of the 
NIPASAct. 
Records pertaining to the specific limits of forestlands shall be made 
available to the public upon request. Moreover, the Department shall furnish all 
provincial, municipal and city government's copies of the maps of permanent 
forestlands located within their respective territorial jurisdictions. 
SEC. 7. Forestlands Managed by Local Government Units (LGUs). -
Pursuant to the pertinent provisions of Republic Act. No. 7160 or the Local 
Government Code, LGUs shall share the responsibility in the sustainable 
management and utilization of forest resources within their territorial jurisdiction, 
including those assigned by law to other government agencies. Subject to vested 
rights, LGUs and the Department, in consultation with other government agencies, 
local communities, nongovernment organizations, academic and research 
institutions and other sectors, shall jointly undertake the preparation of forestland 
use and watershed management plans, particularly the identification of multiple-
use areas and production forestlands within the territorial jurisdiction of each LGU 
which shall be made an integral component of the latter's Comprehensive Land 
Use Plan (CLUP). The LOUs shall be consulted on all forestry projects to be 
implemented in their territorial jurisdiction and shall have equitable share of 
incomes derived therefrom. For this purpose, the Department, the Department of 
the Interior and Local Government (DILG), the leagues of provinces, cities, 
municipalities and barangays shall formulate a joint strategy and program to 
implement this provision within one (1) year from the passage of this Act. 
SEC. 8. Forestlands Under Other Government Agencies. - Forestlands 
and/or portions thereof which have been assigned by law to the administration and 
management of other government agencies for a specific purpose, including those 
devolved to the LOUs prior to the passage of this Act, shall be sub-classified as 
production forestlands and shall remain under the administration and management 
of these government agencies which shall be responsible for their conservation, 
protection, rehabilitation and sub-classification into forestland, and the specific 
purpose for which the entire area has been aSSigned or reserved unless said 
assignment or reservation is consistent with the use of such area as protection 
forestland. The Secretary or a duly authorized representative shall exercise 
oversight functions over these forestlands. Moreover, these forestlands shall be 
administered in accordance with a forest management plan, which shall be 
prepared by the government agency or the concerned LOU in coordination with 
the Department and local communities and organizations within one (1) year from 
the effectivity of this Act: Provided, That the Department and the LOU or the 
government agency concerned shall periodically review, monitor and evaluate the 
implementation of the said management plan: Provided, further, That the 
harvesting of forest resources and the building of roads and other infrastructure 
shall be undertaken only with the prior approval of the Secretary and after 
compliance with EIS and ECC requirements: Provided, finally, That the Secretary 
shall recommend to Congress or the President of the Philippines the reversion to 
the Department of the jurisdiction and control over forestlands that are no longer 
needed nor used for the purpose by which they have been constituted or reserved 
10 


( . 
or in case the agency or the LOU concerned fails to rehabilitate, protect and 
conserve the forestland and its resources in accordance with the approved 
management plan. The Department shall determine the use of the reverted 
forestlands. 
SEC. 9. Forest Resources Within Alienable and Disposable Lands.- All 
forest resources, including trees planted or raised within alienable and disposable 
lands, belong to the owner of the land who shall have the right to harvest, 
transport, sell, contract, conveyor dispose of the same without the necessity of any 
clearance from the Department. The Department shall encourage and provide 
incentives to landowners of alienable and disposable lands to develop, maintain 
and manage forests on their lands or to develop and maintain a tree plantation on 
such lands. Landowners who register their lands for forestry purposes shall be 
assisted by the Department in the preparation of a management plan and shall be 
entitled to appropriate incentives provided under Section 24: Provided, That 
agricultural lands devoted to the planting and harvesting of forest resources shall 
remain subject to the provisions of Republic Act No. 6657 or the Comprehensive 
I Agrarian Reform Law. 
SEC. 10. Forest Resources Within Forestlands. - All forest resources, 
including non-timber forest products, its by-products and its derivatives, whether 
naturally growing, planted 
or raised which have been taken of or have been 
applied with some silvicultural practices, within forestlands including those forest 
resources within the areas covered by a Certificate of Ancestral Domain Title 
(CADT) or a Certificate of Ancestral Land Claim (CALC), shall be issued with a 
permit, agreement or clearance that are deemed necessary and appropriate by the 
Department, as recommended by the Forest Management Bureau (FMB). The 
transport of these forest resources from forestlands, including those from the 
areas of the ICCs or IPs covered by a CADT or a CALC, shall be covered by a 
separate permit, agreement or clearance duly issued by the Department. 
Any 
declaration of forest resources as endangered, threatened, vulnerable and other 
restriction shall be done in coordination, consultation and clearance from the FMB. 
SEC. 11. Forest Resources Within Ancestral Domains. -
The 
recognition, ownership and management of ancestral lands and domains shall be 
governed by the provisions of the IPRA, but any project of a holder of a CADT or 
any such similar instrument to develop or use forestlands or forest resources that 
would result in severe soil erosion or environmental degradation. shall be subject 
to the provisions of Presidential Decree No. 1151 or the Philippine Environmental 
Policy; Presidential Decree No. 1586, establishing an Environmental Impact 
Statement System; and this Act. The National Commission on Indigenous Peoples 
(NCIP) shall coordinate and consult the Department in providing assistance to the 
IPs in the sustainable management and development of forest resources within 
ancestral lands and domains. For this purpose, a multi-sectoral task force shall be 
created, to be composed of representatives from the Department, the NCIP, the 
Department of Agrarian Reform (DAR) and the concerned LGU to evaluate and 
validate the authenticity of all CAL T/CALC claims and applications of the IPs prior 
to the conduct of all survey activities and the issuance of corresponding titles. 
CHAPTER IV 
FOREST MANAGEMENT PLANNING, MONITORING AND ASSESSMENT 
11 


( 
SEC. 12. Sustainable Forest Management Planning. - Subject to vested 
I or prior rights, the Department, in consultation and coordination with LGUs, other 
government agencies, local communities, nongovernment organizations, individual 
and corporate entities, private sectors, academic and research institutions and 
other concerned sectors shall, within one (1) year from the effectivity of this Act, 
develop and adopt a sustainable forest management strategy for each well-
defined watershed or other appropriate forest management unit based on criteria, 
indicators and standards for sustainable forest management which, at their 
minimum, address the following requirements: 
a) Rational allocation of forestland uses and promotion of land-use practices 
that increase productivity and conserve soil, water and other forestland 
resources; 
b) Protection of existing forest resources and conservation of biodiversity; 
c) Rehabilitation or development of denuded areas to expand the forest 
resource base and promote food production activities; 
d) Enhancement of the socioeconomic well-being of local communities 
including IPs who are largely dependent on the forest for their livelihood; 
e) Promotion of closer coordination between and among the Department, 
LOUs, other national agencies, nongovernment organizations, local 
communities, the private sector, academic and research institutions, and 
other entities in the sustainable management of forestlands; 
f) Adoption of community-based forest management as a principal strategy in 
the management of forestlands and resources; and 
g) Integration of forest management and land-use plans at the barangay or 
community level to the CLUPs of cities and municipalities, including the 
adoption of effective impact monitoring system of forest management 
programs. 
The Department shall adopt a comprehensive forestry master plan that shall 
define the development of the combination of outlooks for the different forestry 
land uses, its productivity, demand, supply, human resources policy and 
institutional changes. 
SEC. 13. Watershed and Ecosystems Management Approach. - The 
Watershed and ecosystems planning framework in environment and natural 
resources management shall be adopted. The strategy for improved watershed 
resources management shall be demand-driven, community-based and multiple-
and sustainable-use, considering national priorities and concerns of local 
stakeholders. Watershed management programs shall be guided by ecological, 
socio-cultural, economic and institutional sustainability principles. A national 
watershed information system shall be developed to guide policy formulation, 
program development and implementation of watershed management initiatives. A 
system of management prioritization of watersheds shall be pursued considering 
the following: 
a) Water supply for domestic, irrigation, power, industrial and commercial use; 
b) Contribution to the economy; 
c) Biodiversity and environmental enhancement; 
d) Cultural and historical value; and 
12 


__ -.1 
e) Effect on downstream areas. 
SEC. 14. Forestry Information System. - 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 forestlands and forest resources. It shall include a 
resource monitoring system to enable the Department and its field offices to track 
the utilization, movement or transfer of forest-based goods and services from the 
source to their end-users. The Department shall conduct and/or update forest 
resource inventory at least once every five (5) years to ensure effective 
management. 
SEC. 
15. 
Environmental Impact Assessment, 
Accounting and 
Valuation. - All new critical projects to be implemented in forestlands such as 
harvesting, grazing and other special uses, mineral prospecting and exploration, 
road, infrastructure and mill construction shall be subject to the country's ETA 
system. The Department shall design and implement a system of monitoring and 
assessment, using the criteria and indicators as framework, and shall formulate 
appropriate standards as basis for assessing progress towards sustainable forest 
management. 
The Department shall formulate an appropriate natural resource accounting 
and valuation system for various forestry initiatives shall provide these 
communities with appropriate long-term security of tenure, technical, managerial 
and financial assistance, training and other assistance, as the case may be, to 
empower them to, manage and benefit from the forestland resources on a 
sustainable basis. 
SEC. 16. Qualified Participants. - Organized forest communities shall be 
given priority to participate in the CBFM program. Indigenous peoples shall also be 
encouraged to actively participate in the implementation of CBFM activities in 
recognition of their rights to their ancestral domains and lands. 
Organizations eligible to participate in CBFM shall have the following 
qualifications: 
a) Members shall be Filipino citizens; and 
b) Members shall be any of the following: 
1, Traditionally utilizing the resource for their livelihood; 
2, Actually residing within the area to be awarded; or 
3. Residing adjacent and actually tilling and developing the area to be 
awarded. 
CHAPTER VI 
REFORESTATION AND AFFORESTATION PROGRAM 
SEC. 17. Reforestation/Rehabilitation of Protection Forestlands. - The 
reforestation and rehabilitation of all critical watershed, denuded forestlands and 
degraded forests within protection forestland not otherwise covered by the CBFM 
program shall be given top priority and shall be vigorously pursued by the 
Department, consistent with the NIPAS Act and the strategies and management 
plans therefore. The use of endemic species in the restoration program for 
13 


protection of forestlands shall be given primary consideration to enhance the 
biological diversity of the area. 
The Department, in coordination with LGUs, other government agencies, 
NGOs, local residents and communities, and other sectors concerned shall identify 
and prioritize forestlands to be reforested. An accelerated reforestation program in 
such identified priority protection forestlands shall be undertaken to raise the forest 
I cover to at least fifty percent (50%) within five (5) years and to at least eighty 
percent (80%) within ten (10) years from the effectivity of this Act. The Department 
shall allot funds to effectively accomplish reforestation either by itself or through 
contract. The Department or other agencies responsible for reforestation shall give 
priority to local communities in the granting of technical and financial assistance 
for reforestation activities. 
SEC. 18. Forest Plantation Development in Production Forestlands. -
In accordance 7 with Section 40, the State, through the Department, may enter 
into joint venture, co-production or production sharing agreement with qualified 
forest community 
organizations, 
LGUs, 
government-owned 
or controlled 
corporations, private companies, individuals and other interested parties 
concerned in the development of forest plantations in production forestlands: 
Provided, That any portion of the production forestland identified by the 
Department as needed for protection and rehabilitation purposes shall not be 
converted into forest plantations. 
SEC. 19. Reforestation in Forestlands under the Jurisdiction of Other 
Government Agencies. -
Government agencies and 
institutions having 
management control over forestlands pursuant to a law or grant shall be 
responsible for the reforestation of denuded and degraded portions of such 
forestlands. The reforestation program of these agencies shall aim to increase the 
vegetation of the degraded areas, to be identified jointly by the Department and 
the agency concerned, by fifty percent (50%) within the first five (5) years and at 
least eighty .percent (80%) within ten (10) years from the effectivity of this Act. The 
concerned agency in coordination with the Department shall prepare the 
reforestation plan and determine the ratio of forested areas at any given time. 
Failure to reforest denuded andlor degraded forestland identified in the 
reforestation plan within the period prescribed shall be sufficient ground to request 
for reversion of the said forestlal)ds to the jurisdiction and control of the 
Department: Provided, however, That in areas where CBFMS shall be 
implemented or where there are existing facilities for basic services such as water 
and power as allowed by the Department pursuant to Section 40, the completion 
of the reforestation program shalf be subject to the conditions provided in the 
tenurial document to be awarded by the Department and the agency concerned to 
the participating local community or individual or in the Forest Management 
Agreement of contractors operating such facilities for basic services, as approved 
by the Department. 
SEC. 20. Reforestation and Afforestation in Alienable and Disposable 
Lands or Private Lands. - Reforestation and afforestation or the establishment of 
tree farms or forest plantations in alienable and disposable lands or private lands 
shalf be encouraged. The private landowner(s) shall also be entitled to the 
incentives provided for under Section 24, particularly subsections (a), (b), (c), (d) 
and (e): Provided, That such private forest plantations are duly registered with the 
Department. 
14 


SEC. 21. Tax Incentives. - The following tax incentives shall be granted to 
qualified persons engaged in forest plantation activities: 
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 (NIRC) of 1997, as 
amended: Provided, That the deduction shall only apply to the taxable 
period when the expenses were incurred; 
b) Incentives granted to registered domestic enterprise under the Investments 
Priorities Plan (IPP); and 
c) Exemption from the payment of forest charges imposed under the 
provisions of this Act. 
To encourage qualified persons to engage in forest plantation activities, the 
following incentives shall be granted in addition to those already provided 
by existing laws: 
1. The agreement holder shall not be subject to any obligation, 
prescribed in or arising alit of the provisions of the National Internal 
Revenue Code, on withholding tax at source upon interest paid On 
loans incurred for the development and operation of forest plantation; 
2. 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; 
3. The Board of Investments shall classify forest plantations as pioneer 
and preferred areas of investment under its annual priority plan, 
subject to pertinent rules and regulations; 
4. The agreement holder shall be given priority to access credit 
assistance being granted by government-owned, -Gontrolled and/or-
supported financial institutions; 
5. Upon the premature termination of the agreement at no fault of the 
holder, 
all 
depreciable 
permanent 
and 
semi-permanent 
improvements. such as roads, buildings and nurseries, including the 
planted and standing trees and other forest crops introduced and to 
be retained in the area, shall be properly evaluated and the holder 
shall be entitled to a fair compensation thereof, the amount of which 
shall be mutually agreed upon by both the Department and the 
agreement holder and, in case of disagreement between them, by 
arbitration through a mutually acceptable and impartial third party 
adjudicator; 
6. Exemption from Forest Charges and Expanded Value-Added Tax; 
7. Exemption offorest plantation from payment of real property; 
8. No termination of contract or agreement except for cause or for 
reason of public interest and only after due process; and 
15 


9. The agreement holder has the right to transfer, contract, sell or 
. convey his rights to any qualified person following the guidelines to 
be issued by the Secretary. 
The Secretary may provide or recommend to the President or to .Congress 
other incentives in addition to those granted in this Act and in existing laws in order 
to promote reforestation and the establishment of forest plantations. 
SEC. 22. Voluntary Offer to Reforest. - Private landowners, whether 
natural or juridical persons, may participate in reforestation and forest plantation 
development or similar programs of the Department, with the landowner 
I contributing his land and the Department providing funds in accordance with 
Section 55 to reforest the area on a co-production agreement: Provided, That the 
property shall be exclusively devoted to the planting of forest species for at least 
one (1) rotation, which undertaking shall be annotated at the back of the title of the 
property. 
CHAPTER VII 
URBAN FORESTRYICOMMUNAL FOREST 
SEC. 23. Establishment of City or Municipal Parks al1d/or Communal 
Forest. -
Every city or municipality shall establish a city or municipal park or 
communal forest and shall include in its annual budget the necessary funds for its 
establishment and maintenance. Upon request by a city or municipality concerned, 
the Department shall set aside an appropriate area of the public forestlands as city 
or municipal park and/or communal forest and shall provide technical assistance to 
the local government concerned in the development of the park or communal 
forest. 
SEC. 24. Establishment of Tree Parks in Subdivision and Tree Planting 
on Roadsides.- Every subdivision project to be developed after the passage of 
this Act shall include the establishment of a tree park of not less than fifty percent 
(50%) of the required total open spaces as provided in Section 2 of Presidential 
Decree No. 953, requiring the planting of trees in certain places. The guidelines for 
the establishment of tree parks within a subdivision shall be prepared jointly by the 
subdivision owner concerned, the Housing and Land Use Regulatory Board 
(HLURB) and the Department. The subdivision owner shall provide the funds for 
this purpose. For every major public road or irrigation construction project, the 
Department of Public Works and Highways (DPWH) shall include the planting and 
maintenance of trees along the road/highway or irrigation canals as landscaped 
rest areas every twenty-five (25) kilometres thereof and shall provide adequate 
funds for this purpose. Each city or municipality shall also allocate adequate funds 
for the planting, care and maintenance of trees or perennial shrubs in "greenbelts" 
or "green spaces" such as road/street sides, center islands, etc. 
CHAPTER VIII 
FOREST PROTECTION 
SEC. 25. Commercial Logging San. - There shall be a permanent ban on 
. commercial logging activities in all protection forestlands defined, categorized and 
sub-classified in Section 5 (a). No license, permit or agreement to cut any timber 
16 


within a protection forestland shall be issued. 
Portions of the production 
forestlands identified by the Department for protection purposes shall be excluded 
from any form of logging operations and the holder of the agreement or license 
shall establish a buffer zone and delineate their boundaries with the production 
forestlands, marking the same with concrete monuments, road or infrastructure, or 
any other visible, permanent and practicable signs. 
To ensure the conservation and sustainable use of forest resources, 
holders of timber licenses, leases and permits shall submit to the Department an 
Integrated Operations Plan (lOP) containing strict environmental gUidelines such 
as ECC compliance. All forest development activities such as logging, 
reforestation, timber stand improvement, forest protection and delivery of 
community service within an area covered by timber concessions shall be 
consolidated under the lOP, which shall be prepared by or under the supervision 
of an accredited private registered forester whose signature and dry seal shall 
appear in the plan and the supporting documents submitted for the purpose. Upon 
its expiration or termination for cause, no extension shall be made on any TLA and 
the area covered by the agreement shall be converted into any mode pursuant to 
Section 40, including degraded areas that may be subject of a reforestation or tree 
plantation project. 
SEC. 26. Assistance of Law Enforcement Agencies. - The Department 
may call upon law enforcement agencies and instrumentalities of the government 
such as the Philippine National Police (PNP), the Armed Forces of the Philippines 
(AFP) and the National Bureau of Investigation (NBJ) for the enforcement of the 
logging ban in all protection forestlands and for the protection and conservation of 
forests. The Secretary of Justice shall designate in every city and province a 
special prosecutor who shall immediately file charges against forest violators to 
ensure their speedy prosecution. 
SEC. 27. Multi·Sectoral Forest Protection Council. - There shall be 
created a multi-sectoral forest protection council in every province, city and 
municipality which shall be responsible for law enforcement, prevention of forest 
\ fires, integrated pest management and protection against forest invasive species. 
The council shall be composed of representatives from, but not limited to, the 
Department, concerned LGU, NGOs, people's organizations, church and local 
academic institutions. 
SEC. 28. Role of LGUs and Local Residents . • It shall be incumbent upon 
LGUs concerned to render assistance in protecting and conserving forestlands 
within their respective territorial jurisdiction. Qualified local residents may be 
deputized by the Department to assist in the drive against illegal logging, kaingin-
making and forestland occupation. These deputized residents shall likewise be 
authorized to arrest forest violators within their communities, subject to existing 
laws and regulations on arrest and detention. 
SEC. 29. Prevention of Forest Fires and Control of Forest Pests and 
Diseases. - In collaboration with concerned LGUs, the Department shall formulate 
and implement a forest fire management and control program. The Department 
shall likewise formulate and implement a national integrated forest pest and 
disease management program including quarantine procedures for imported 
seeds, forest plants and plant products as well as wildlife to prevent or control 
forest or wildlife pests and diseases. 
17 


SEC. 30. Information and Rewards System. - The Department shall 
establish an information and rewards system as part of the community's 
participation in the protection of forest resources. 
CHAPTER IX 
FORESTRY RESEARCH, EDUCATION, TRAINING AND EXTENSION 
SEC. 31. Research and Technology Development Transfer. - Research 
and technology development transfer shall be strengthened to support sustainable 
management of forest resources. The Department, the Department of Science and 
Technology (DOST), the Commission on Higher Education (CHED) and the 
colleges of forestry of state universities shall, within one (1) year from the passage 
of this Act, prepare a comprehensive national forestry and environmental research 
and technology development and transfer program in furtherance of sustainable 
forest management which shall be implemented, monitored and reviewed in 
I accordance with existing research management systems. Adequate and 
sustainable funds to implement a research and technology development and 
transfer program shall be provided by each of the aforementioned agencies and 
institutions under the General Appropriations Act. 
SEC. 32. Public Information, Education and Advocacy Campaign. -
With the support from LGUs, NGOs, media and other organizations, the 
Department, the Philippine Information Agency (PIA), the Department of Education 
(DepEd), the CHED, State-owned and private universities and colleges shall 
formulate and implement a nationwide program for sustained public information 
and advocacy campaign for forest and natural resources conservation and 
sustainable forest development and management. The DepEd shall include 
subjects on forest and natural resources in the curricula for elementary and high 
school education. The CHED shall likewise include ecology and environment 
courses in the general education curricula. The Department shall undertake a 
systematic campaign to promote community ecological awareness, including the 
preparation of informational and educational materials therefore. 
SEC. 33. Formal Forestry Education. - The CHED, in collaboration with 
the Department, the Board of Examiners for Foresters of the Professional 
Regulation Commission (PRC) and the duly accredited national professional 
foresters organization shall actively pursue the rationalization of formal forestry 
education and the establishment of centers of excellence in forestry and 
environmental education to ensure high quality manpower output to meet the 
needs of the forestry sector. 
SEC. 34. Continuing Education on Forestry. - A non-formal program of 
continuing education shall be established to maintain the growth of the forestry 
profession. The PRC Board of Examiners for Foresters and the Civil Service 
Commission (CSC) shall provide the guidelines for a program in continuing 
education in forestry. In cooperation with academic institutions, the Department 
shall develop the infrastructures to institutionalize non-formal continuing education 
for the forestry sector. 
18 


SEC. 35. Training Centers. - In coordination with the TESDA, the DepEd, 
I the CHED and state universities and colleges (SUCs), the Department shall 
establish and institutionalize a network of training centers in strategic parts of the 
country to provide regular and up-to-date training on the various aspects of 
sustainable forest management, development and utilization to forest officers, 
LOUs, NODs, local communities and IPs. Furthermore, the Department shall 
ensure that personnel appointed to critical and sensitive positions undergo training 
to prepare them to discharge their duties and responsibilities professionally, 
efficiently and effectively. 
SEC. 36. Forestry Development Center. - The Forestry Development 
Center (FDC) based in the College of Forestry and Natural Resources, University 
of the Philippines at Los Banos shall continue to serve as the primary policy 
research and development center for forestry and natural resources management. 
The FDC shall perform its functions in close coordination with the Department and 
other policy research institutions in the country. It shall assist the Department in 
the formulation, review and evaluation of proposed and existing policies on 
forestry and natural resources management. To enable the center to carry out its 
mandated functions, the center shall have a share of the Sustainable Forestry 
. Development Fund pursuant to Section 55 in the conduct of its mandated 
functions of policy research. 
CHAPTER X 
DISPOSITION AND UTILIZATION OF FOREST RESOURCES 
SEC. 37. Modes of Forest Management Agreement. - The development, 
utilization and management of forestlands andlor forest resources shall be 
undertaken under the full control and supervision of the State through the 
Department. The State may directly undertake such activities or it may enter into 
co-production, joint venture or production sharing agreement with qualified Filipino 
citizens or corporations or associations, subject to relevant laws, rules and 
regulations: Provided, That interested local communities and IPs through their 
organized and duly recognized associations shall be given priority in the grant of 
appropriate tenurial instruments implementing the said agreements. Such tenurial 
instruments andlor agreements shall have a duration of twenty-five (25) years, 
renewable for another twenty-five (25) years, under such terms and conditions as 
may be provided by the Secretary: Provided, further, That such tenurial 
I instruments andlor agreements may not be terminated except for cause or if public 
interest so requires. Current valid and subsisting licenses, contracts or 
agreements granted by the govemment for the development, management and 
utilization of forest resources shall be allowed to continue under the same terms 
and conditions until their expiry, or prior to their expiry shall be allowed to be 
converted into any mode authorized in this Act under the guidelines promulgated 
by the Secretary: Provided, That no such conversion shall be allowed in protection 
forestlands as defined in Section 5, on sub-classification of forestlands. The 
Department is hereby authorized to formulate rules and regulations covering the 
relevant terms and conditions thereof including the determination and collection of 
the government share, subject to the approval of Congress. 
For watersheds and other areas where existing facilities for basic services 
such as water and power are located, the Department may enter into a forest 
management agreement with the service contractor in the area. Such agreement 
shall have a duration of twenty-five (25) years, renewable for another twenty-five 
(25) years, under such terms and conditions agreed upon by both parties: 
19 


Provided, That such agreement may not be terminated except for cause or if 
public interest so requires or upon mutual agreement by the parties. 
SEC. 38. Transfer of Rights Arising Out of Agreements, Contracts or 
Similar Instruments. - The transfer of rights arising out of any forest management 
agreement, contract or similar instrument with the government may be authorized 
by the Department: Provided, That the agreement, contract or similar instrument 
has been in existence and active for at least three (3) consecutive years from its 
issuance: Provided, further, That the transferor has faithfully complied with the 
terms and conditions of the said agreement, contract or similar instrument; the 
transferee has all the qualifications and none of the disqualifications to hold the 
same; and the transferee shall assume the obligations of the transferor. Failure to 
comply with these conditions shall be sufficient cause for the cancellation of the 
agreement, contract or similar instrument. 
SEC. 39. Non-Timber Forest Products. - Rattan, bamboos, vines, herbs, 
exudates and other non-wood forest products are integral parts of the forest 
ecosystem. The establishment of plantations of non-timber producing species shall 
be encouraged and supported. The development, management and utilization of 
non-timber forest products shall be allowed in accordance with the guidelines to be 
promulgated by the Department. However, in granting permits to harvest or utilize 
non-timber forest products in their natural or original state from production 
I forestlands, priority shall be given to forest resident families, local communities 
and IPs living nearest the subject forestlands. 
SEC. 40. Silvicultural and Harvesting System. - The Department shall 
formulate the appropriate silvicultural and harvesting system and all measures 
shall be taken to achieve an approximate balance between growth and harvest or 
use of forest products in production forestland shall be promoted and practiced. 
SEC. 41. Grazing . • The Department shall identify and delimit areas in the 
production forestland suitable for grazing purposes: Provided, That no forestland 
fifty percent (50%) in slope or over may be utilized for grazing purposes: Provided, 
further, That existing pasture lease agreements or forestland grazing lease 
agreements shall be allowed to continue under the same terms and conditions 
until their expiry: Provided, finally, That abandoned or idle, expired or cancelled 
grazing or pasture lands shall be subject to land-use capability assessment to 
. determine their best use or combination of uses. No new grazing or pasture 
permit, lease or contract shall be issued, nor existing ones allowed to continue 
unless covered by existing rules and regulations governing the Philippine EIS 
System. 
SEC. 42. Mining and Power Generation Operations in Forestlands. -
Forest resources inside mineral lands are under the Department's jurisdiction, and 
their management and utilization are subject to the provisions of this Act. Power 
generation and small-scale mining operations in forestlands may be allowed 
subject to existing rules and regulations governing the Philippine EIS System. 
SEC. 43. Roads and Other Infrastructure. -
Roads and other 
infrastructure including the development of mineral reservations and energy 
resources inside forestlands shall be constructed with the least impairment to the 
20 


resource values found in such forestlands. Government agencies and their 
contractors undertaking the construction of roads, bridges, communication and 
other infrastructure facilities and installations inside forestlands shall seek prior 
authority from the Department and shall comply with the provisions of this Act and 
existing rules and regulations governing the Philippine EIS System. 
CHAPTER XI 
FOREST -BASED INDUSTRIES 
SEC. 44. Establishment and Operations of Forest-based Industries. -
To meet the demands for forest-based goods and services of a growing 
population, the State, through the Department, shall promote and rationalize the 
establishment, operations and development of forest-based industries. 
SEC. 45. Incentives for Forest-based Industries. - To enable forest-
based industries to be more efficient, competitive and economically viable, the 
following incentives are hereby granted in addition to those already provided by 
existing laws: 
a) All processing plants or mills shall be assured of their supply of raw 
materials, preferably but not exclusively from local sources; 
b) All processing plants or mills shall be granted operating permits for five (5) 
years, renewable every five (5) years for the same period: 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; and (c) The Department shall promote and 
strengthen the linkages among corporate, family- based and community-
based industries. The Department may provide on its own, or propose to 
. the President of the Philippines 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 
forestlands and other areas available for development as source of raw 
materials. 
. 
SEC. 46. Export and Sale of Locally Produced Wood Products . • Logs 
derived from natural grown trees of whatever species cut, gathered or removed 
from the local natural forest and raw or rough lumber manufactured from such logs 
shall not be exported except finished and semi-finished lumber products, wood 
I manufactures, wood panels and other finished wood products from such logs, 
subject to such guidelines as the Secretary may promulgate. No person shall sell 
or offer for sale any log, lumber, veneer, plywood or other manufactured wood 
products in the international or domestic market without complying with the 
grading rules established or to be established by the government. Failure to 
adhere to the established grading rules and standards or any act of falsification on 
the volume of logs, lumber, veneer, plywood or other wood products sold in the 
international or domestic market shall be sufficient cause for the cancellation of 
export license, wood processing permit or other license or permit authorizing the 
manufacture or sale of such products. 
21 


SEC. 47. 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, 
payment of tariff ano duties imposed under the Tariff and Customs Code, and 
quarantine regulations. Any product manufactured or remanufactured out of the 
imported forest and wood materials may be sold in the domestic or international 
market subject to compliance with the grading rules and standards. 
CHAPTER XII 
FOREST CHARGES, FEES AND GOVERNMENT SHARES 
SEC. 48. Fees and Government Shares for the Utilization, Exploitation, 
Occupation, Possession and Activities Within Forestlands . .. The Department 
shall prescribe appropriate fees and government shares for the different kinds of 
utilization, exploitation, occupation, possession or activities within forestlands: 
Provided, That payment of or collection of such fees and government shares shall 
be waived for parties or industries mandated by law to manage, conserve, develop 
and protect fOrestlands and forest resources, except administrative fees for the 
filing and processing of applications for the issuance and renewal of licenses, 
permits and agreements: Provided, further, That watershed administrators and/or 
service contractors that have forest management agreements with the Department 
as provided for under Section 40 of this Act shall also be entitled to the waiver of 
fees, except administrative fees. The Department shall recommend to Congress 
appropriate and equitable fees for the use of water and forest for power 
generation, irrigation, domestic and industrial, and for carbon sequestration and 
biodiversity benefits, respectively, by parties/industries concerned. 
SEC. 49. Forest Charges. - There shall be collected a forest charge per 
cubic meter based on the actual freight on board (FOB) market price based on 
species and diameter class by the Department on the following: 
a) Timber - twenty-five percent (25%); 
b) Pulpwood and matchwood - ten percent (10%); 
c) Firewood, 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 ten percent (10%); and 
d) Non-timber forest products - ten percent (10%). These forest charges 
shall be applied to naturally growing timber and non-timber forest 
products gathered within forestlands, alienable and disposable lands, 
and private lands. 
e) For the above purpose, the measurement and the actual FOB market 
price of forest products shall be justly determined by the Department, 
which shall likewise provide for the time, manner and place of payment 
of such charges. 
SEC. 50. Fees for Administrative Services Rendered by the 
Department. - Fees shall be collected for various services rendered by personnel 
of the Department in connection with their duties and responsibilities as may be 
requested by interested parties including, but not limited to, surveying, mapping 
and other similar service activities: Provided, That administrative fees shall be 
waived for services rendered to local communities or IPs in the preparation of their 
management plans. 
22 


1-
CHAPTER XIII 
APPROPRIATIONS AND FINANCIAL SUPPORT 
SEC. 51. Appropriations. • The Secretary of the Department of 
Environment and Natural Resourcel? shall include in the Department's program 
and issue such rules and regulations for the implementation of the provisions of 
this Act, the initial funding of which shall be charged against the current year's 
appropriations of the Department and thereafter included in the annual General 
Appropriations Act. For LGUs, the funding requirements shall be taken from their 
Internal Revenue Allotment and other LGU income. 
SEC. 52. Sustainable Forestry Development Fund • A Sustainable 
Forestry Development Fund (SFDF) to be administered by the Department as a 
special account in the National Treasury is hereby established to provide 
sustainable funds for forest protection, reforestation and forest development and 
management, including the rehabilitation and preservation of watershed areas, 
CBFM program, information and educational campaigns as well as scholarship 
programs and policy research. At least thirty percent (30%) of the forest charges 
and government share in all products removed from the forestlands, rentals, 
proceeds from sales of confiscated forest products including conveyances, fines 
and penalties, and administrative fees collected shall be set aside for the build-up 
of the SFDF. The fund may be augmented by grants, donations, endowment from 
various sources, domestic or foreign, for purposes related to their functions and 
other innovative funding mechanisms such as securitization of forest assets, 
among others. 
Disbursements from the fund shall be subject to the usual 
accounting and budgeting rules and regulations: Provided, That no amount shall 
be disbursed to cover the operating expenses of the Department and other 
concerned agencies. A trust fund committee composed of the Secretary as Chair 
and the Secretary of the Department of Budget and Management, the DILG 
Secretary and the National Treasurer or their representatives shall sit as members 
and manage the SFDF, with the FMB as secretariat. 
CHAPTER XIV 
CRIMINAL OFFENSES AND PENALTIES 
SEC. 53. Harvesting. Gathering and/or Collecting Timber or Other 
Forest Products Without Authority. - Any person who shall harvest, cut, gather, 
collect or remove timber or other forest products from any forestland, or naturally 
grown timber inside alienable and disposable public land except as provided in 
Section 9, without authority from the Secretary or found to possess the same 
without pertinent required legal documents shall be punished by imprisonment 
ranging from prision mayor minimum period to reclusion temporal minimum period 
andlor a fine equivalent to ten (10) times the value of the said forest product: 
Provided, That in the case of partnerships, associations or corporations, the 
president, managing partner and general manager shall be held liable and, if such 
officer is an alien, he shall, in addition to the penalty, be deported without further 
proceedings on the part of the Bureau of Immigration. Offenders who are public 
officials shall be deemed automatically dismissed from office and permanently 
\ 
. 
disqualified from holding any elective or appointive position. All timber or any 
forest products cut, gathered, collected, removed or possessed and all the 
conveyances, machinery, equipment, implements, work animals and tools used in 
connection with this violation shall be seized and confiscated in favor of the 
government. 
23 


SEC. 54. Illegal Cutting as an Act of Economic Sabotage. - Any of the 
acts enumerated in the preceding section committed by an armed group or by any 
group, through organized and systematic manner, for commercial purposes, shall 
be considered an act of economic sabotage punishable by reclusion perpetua. 
The commission of any of the prohibited acts by two (2) or more individuals with or 
without the aid of any mechanical device shall constitute a prima facie evidence 
that the act is organized and systematic. Any licensed timber concessionaire who 
shall buy logs from unlicensed loggers or loggers operating without permits shall 
be considered in violation of this Act and, upon conviction, shall also be punished 
with reclusion perpetua . 
. SEC. 55. Use of Illegally Cut Timber in Government Infrastructure 
Projects. - Contractors of govemment infrastructure prOjects are hereby required 
to obtain certification from the Department that the logs or lumber to be used were 
obtained from legitimate sources. The use of illegally cut naturally grown timber in 
government infrastructure projects shall be sufficient cause for the imposition of 
penalties provided in Section 56, on harvesting of forest products without authority, 
and Section 57, on illegal cutting as an act of economic sabotage, including the 
withholding of the payment to the contractor. 
SEC. 56. Damage to Residual Trees. - To ensure the sustainability of the 
natural forests, adequate number of residual trees shall be marked, to be retained 
as . part of the managed forests and as the future timber crop, before any 
harvesting operation shall commence. Any marked residual tree that is damaged 
during such operation is subject to a fine equivalent to four (4) times the regular 
forest charges. 
SEC. 57. Grazing Livestock on Forestlands Without a Permit. - Any 
person found to have caused the grazing of livestock in forestlands and grazing 
lands without an authority under a lease or permit to graze, upon conviction, shall 
be penalized with imprisonment of not less than two (2) years nor more than four 
I (4) years and a fine equivalent to ten (10) times the regular shares due in addition 
to confiscation of the livestock and all improvements introduced in the area in favor 
of the government: Provided, That in case the offender is a corporation, 
partnership or association, the officer or director thereof who directly caused or 
ordered such shall be liable. In case the offender is a public officer or employee, 
he shall, in addition to the above penalties, be deemed automatically dismissed 
from office and permanently disqualified from holding any elective or appointive 
position in the government service. 
SEC. 58. Unlawful Occupation or Destruction of Forestlands. - Any 
person who, without authority from the Secretary, enters and occupies or 
possesses, or engages in kaingin or slash-and-bum farming and related activities 
for his private use or for others, any forestland or grazing land, or in any manner 
destroys such forestland or part thereof, or causes any damage to the timber 
stands and other forest products or assists, aids or abets another person to do so, 
or sets a fire or negligently permits a fire to be set, 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,OOO.OO) 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 
24 


I 
of making kaingin or slash-and-burn farming, the penalty shall be imprisonment of 
not less than ten (10) years nor more than twelve (12) years and a fine equivalent 
to ten (10) times the regular forest charges due on the forest products destroyed 
without prejudice to payment of the full cost of rehabilitation of the occupied areas 
as determined by the Department: Provided, further, That the maximum of the 
penalty prescribed 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 (3rd) time or more. 
In all cases, the court shall further order the eviction of the offender from the 
area occupied and the forfeiture to the government of all improvements 
introduced, including all vehicles, domestic animals and equipment of any kind 
used in the commission of the offense. If not suitable for use by the Department, 
said improvements, vehicles, domestic animals and equipment shall be sold at 
public auction, the proceeds from which shall accrue to the SFDF. 
If the offender is an alien, he shall be deported after serving his sentence 
and payment of fines, without any further proceedings. An offender who is a 
I 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 government service. 
SEC. 59. 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 26 and Section 27 of this 
Act, 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, 
or in any manner destroys or causes any damage to the timber stands and other 
forest products or assists, aids or abets another person to do so, or sets a fire or 
negligently permits a fire to be set, upon conviction, shall be penalized by 
imprisonment of six (6) years and one (I) 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,OOO.OO), or both fine and imprisonment, at the 
discretion of the court. The offender shall likewise be imposed a fine equivalent to 
ten (10) times the commercial value of the forest products destroyed without 
prejudice to payment of the full cost of rehabilitation of the areas as determined by 
the Department: Provided, further, That the maximum of the penalty prescribed 
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, 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 a 
public auction, the proceeds from which shall accrue to the SFDF. An offender 
who is a government officer or employee, in addition to the above penalties, upon 
conViction, shall be deemed automatically dismissed from office and permanently 
disqualified from holding any elective or appointive position in the government 
service. 
SEC. 60. Misdeclaration or Falsification of Reports on Forest 
Resource Inventory, Scaling and Survey by a Government Official or 
Employee. - Any public officer or employee who knowingly misdeclares or falsifies 
reports pertaining to forest resource inventory, scaling, survey and other similar 
activity which are contrary to the criteria and standards established in the rules 
25 


, 
• 
and regulations promulgated by the Secretary therefore, after an appropriate 
administrative proceeding, shall be dismissed from the service with prejudice to 
\ reemployment. Upon conviction by a court of competent jurisdiction, the same 
public officer or employee shall further suffer an imprisonment of not less than 
eight (8) years nor more than twelve (12) years and a fine of not less than One 
hundred thousand pesos (P100,000.000) nor more than Five hundred thousand 
pesos (P500,000.00). The inventory, survey, scale, classification and similar 
reports referred in this section shall be rendered null and void. 
SEC. 61. Unlawful Operation «f Wood Processing Plants and 
Downstream Forest-based Industries. -
Any person operating a wood 
processing plant or downstream forest- based industry without authority from the 
Secretary shall be punished by, upon conviction by a court of competent 
jurisdiction, imprisonment of not less than eight (8) years nor more than twelve 
(12) years and a fine of not less than Five hundred thousand pesos (P500,000.00) 
and confiscation of the wood processing plant and complementary eqUipment in 
favor of the government. The Department shall promUlgate the necessary 
guidelines, subject to the provision of this Act that will define the terms and 
conditions, including the responsibility for a person who will operate and operating 
a wood processing plant and/or other downstream forest-based industries. 
SEC. 62. Prohibition on the Issuance of Tax Declaration on 
Forestlands. - Any tax declaration issued over forestlands shall be considered 
null and void. 
Any local government official 01' employee who issues a tax 
declaration for any purpose on any part of forestlands, upon conviction, shal1 be 
penalized with imprisonment for a period of not less than four (4) years nor more 
than eight (8) years and a fine of not less than One hundred thousand pesos 
(P100,000.00) nor more than Five hundred thousand pesos (P500,000.00) and the 
perpetual disqualification from holding an elective or appointive office. 
SEC. 63. 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,OOO.OO) nor more than Five hundred thousand pesos 
(P500,OOO.OO) in addition to the confiscation of such implements and devices and 
the automatic cancellation of any agreement, license, lease or permit. Any forest 
\ officer who willingly allowed unauthorized person(s) to use these implements and 
devices under his/her care shal1 be penalized with imprisonment of not less than 
six (6) years and one (1) day to not more than twelve (12) years and a fine of not 
less than One hundred thousand pesos (P100,OOO.OO) nor more than Five 
hundred thousand pesos (P500,000.OO). In addition, the convicted forest officer 
shal1 be dismissed from the service with prejudice to reinstatement and with 
perpetual disqualification from holding an elective or appointive position. 
SEC. 64. Unauthorized Introduction of Logging Tools and Equipment 
Inside Forestlands. -It shall be unlawful for any person or entity to possess, bring 
or introduce any logging tools or equipment inside forestlands without prior 
authority from the Secretary or his duly authorized representative. Any person 
found guilty of illegal possession of said logging tools or equipment shal1 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,OOO.OO) nor more than Five 
hundred thousand pesos (P500,000.OO), or both imprisonment and fine, at the 
26 


discretion of the court and the confiscation of said logging tools and equipment in 
favor of the government. 
SEC. 65. Non-payment and Non-remittance of Forest Charges. - Any 
person who fails to pay the amount due and payable as forest charges to the 
government shall not be allowed to transport, convey, sell nor use the timber or 
forest product. Moreover, failure to pay within thirty (30) days upon assessment of 
forest charges shall be a ground for confiscation of the said timber or forest 
product in favor of the government. Any person who fails or refuses to remit to the 
proper authorities said forest charges collectible pursuant to the provisions of this 
Act or the National Internal Revenue Code, as amended, or who delays, obstructs 
or prevents the same or who orders, causes or effects the transfer or diversion of 
the funds for purposes other than those specified in said Acts shall, upon 
conviction, be imprisoned for not less than six (6) years nor more than twelve (12) 
years and fined from One hundred thousand pesos (P100,OOO.00) to Five hundred 
thousand pesos (P500,OOO.00) in addition to the payment of the assessed forest 
charges. If the offender is a corporation, partnership or association, the officers 
and directors thereof shall be liable. 
SEC. 66. Institution of Criminal Action by Forest Officers. - Any forest 
officer shall arrest even without warrant any person who has committed or is about 
to commit, or is committing in his presence any of the offenses defined in this 
\ chapter. The tools, animals, equipment and conveyances used in committing the 
offense and the forest products cut, gathered, taken or possessed by the offender 
in the process of committing the offense shall also be seized and confiscated in 
favor of the government. The arresting forest officer shall thereafter deliver within 
six (6) hours from the time of arrest or seizure both the offender and the 
confiscated forest products, conveyances, tools and equipment, or the documents 
pertaining to the same, and file the proper complaint with the appropriate official 
designated by law to conduct preliminary investigation and file information in court. 
If the arrest and seizure are made in the forest far from authorities designated by 
law to conduct preliminary investigations, the delivery to and filing of the complaint 
with the latter shall be done within a reasonable time sufficient for ordinary travel 
from the place of arrest to the place of delivery. 
The seized forest products, 
materials, conveyances, tools and equipment shall be immediately disposed of in 
accordance with the regulations promulgated by the Secretary. 
The Secretary may deputize any agency, barangay or barrio official, or any 
qualified person to protect the forest and exercise the powers or authority provided 
for in the preceding paragraph. Reports and complaints regarding the commission 
of any of the offenses defined in this chapter not committed in the presence of any 
forest officer or any of the deputized officers shall immediately be reported to the 
forest officer aSSigned in the area where the offense was allegedly committed. 
Thereupon, the investigating officer shall receive the evidences supporting the 
report or complaint and submit the same with the appropriate official authorized by 
law to conduct a preliminary investigation of criminal cases and file the information 
in court. 
SEC. 67. Liability of the Custodian of Confiscated Forest Products . • 
Any public officer who fails to produce the timber or forest products, including 
tools, conveyances, equipment and devices in his custody pursuant to a seizure or 
confiscation made thereon, or who shall appropriate, take, misappropriate, or shall 
permit another person to take such. timber or forest products wholly or partially, 
shall suffer the penalty provided for malversation of public funds or property under 
27 


the Revised Penal Code. In addition, the said public officer shall be dismissed 
from the service with prejudice to reinstatement and with perpetual disqualification 
from holding any elective or appointive office. 
CHAPTER XV 
ADMINISTRATIVE PROVISIONS 
SEC. 68. Strengthening of the Forest Management Sector. - In order to 
effectively implement the provisions of this Act, the FMB shall be transformed into 
a line bureau with functions clearly defined and enumerated under the 
implementing rules and regulations of this Act. To ensure that the scientific 
practice of forestry in the country is properly implemented, only registered 
foresters shall be appointed to the positions of director and assistant director and 
regional directors of the FMB, as well as to all other positions where the services 
of professional foresters are required in accordance with existing laws and the 
relevant rules and regulations issued by (he CSC and the PRC. 
SEC. 69. Development of Mechanisms for Private Sector Participation 
in Forest Management. - The Secretary is hereby authorized to adopt appropriate 
mechanisms to strengthen private sector participation in forest management, 
which shall include the accreditation of a national organization of private investors 
including for profit, NGOs and people's organizations. The accredited national 
organization shall assist the Department in the formulation and review of relevant 
policies to ensure the contribution of the forestry sector to national economy and 
sustainable development. It shall also assist the Department in evaluating 
applications for forest management agreements; monitoring the performance of 
holders of commercial tenurial instruments; ensuring the local supply of timber and 
wood products; providing producers with access to local and international markets; 
and ensuring the conservation and preservation of protection forestlands and 
protected areas under the NIPAS Act. 
SEC. 70. Authority of the Secretary on the Use of Forest Resources. -
The utilization of forest resources from natural forests found in forestlands, 
government-established reservations and all other lands including ancestral 
domains or under the management of other government agencies shall be 
prohibited unless covered by permits issued by the Department, in consultation 
with other concerned government agencies: Provided, That in the case of 
ancestral lands and domains, the terms of the agreement with the concerned ICC 
shall likewise govern. 
SEC. 71. Administrative Authority of the Secretary or his/her Duly 
I Authorized Representative to Order Confiscation. - In all cases of violations of 
this Act or other forest laws, rules and regulations, the Secretary or his/her duly 
authorized representative may order the confiscation of forest products illegally 
harvested, cut, gathered, removed or possessed or abandoned, and all 
. conveyances used either by land, water or air as well as all machinery, equipment, 
implements and tools used in the commission of the offense and to dispose of the 
same in accordance with pertinent laws, regulations or policies on the matter. If 
the confiscated forest products are in danger of deteriorating, the Secretary may 
order that the same be sold at public audion 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 
28 


Writ of Replevin, restraining order or preliminary mandatory injunction in any case' 
involving or growing out of any action by the Secretary or his/her duly authorized 
representative in the exercise of the foregoing administrative authority, 
SEC. 72. Administrative Authority of the Secretary to Impose Fines. -
In all cases of violations of this Act and other forest laws, rules and regulations 
where fine is the principal penalty, the Secretary, after consultation with the forest-
based industries affected, is hereby authorized to impose administratively the 
penalty consisting of the amount and the schedules of the fine which shall be 
officially published in a national newspaper of general circulation, 
SEC. 73. Authority of Forest Officers. _ When in the performance of their 
official duties, forest officers or other government officials or employees, duly 
authorized by the Secretary, shall have free entry into areas covered by a contract, 
agreement, license, lease or permit. Forest offieers are authorized to inspect and 
to open closed vans suspected to contain illegally harvested, collected or 
transported forest products: Provided, That it is done in the presence of the 
shipper or consignee or two (2) responsible public officials in the locality. Forest 
officers are authorized to administer oath, take acknowledgment in official matters 
connected with the functions of their office or take testimony in official 
investigations conducted under the authority of this Act and the implementing rules 
and regulations issued by the Secretary pursuant thereto. 
SEC. 74. Visitorial Functions. - The Secretary or his/her 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 
I 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. 75. Other Incentives. - Fifty percent (50%) of the value of 
confiscated materials shall be used as incentives to informants and members of 
multi-sectoral forest protection councils, 
including Department personnel. 
Additional incentives may be provided to personnel of the Department, in addition 
to those provided under the Government Service Insurance System (GSIS) or the 
Workmen's Compensation Law. They shall also be entitled to free legal assistance 
should legal cases be filed against them in the performance of official duties, 
SEC. 76. Protection to Witnesses in Cases Involving Violation of 
Forestry Laws. - Witnesses to violations of this Act or other forestry laws and 
regulations, including the immediate members of the family of said witnesses, shall 
be given protection, security and benefit, subject to the provisions of Republic Act 
No. 6981, otherwise known as "The Witness Protection, Security and Benefit Act" 
and its implementing rules and regulations. 
SEC. 77. Rule-making Authority. - The Department shall promulgate the 
implementing rules and regulations within one (1) year from the effectivity of this 
Act, in consultation with the NCIP, the DILG, the Department of Finance, the 
leagues of provinces, cities and muniCipalities, and other government agencies. 
29 


SEC. 78. Congressional Oversight Committee on the Sustainable 
Forest Management Act.- There is hereby created a Congressional Oversight 
Committee composed of seven (7) Members from the Senate Committee on 
Environment and Natural Resources and seven (7) Members from the House of 
Representatives' Committee on Natural Resources. 
The 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. 79. Transitory Provision - Upon the approval of this Act, the 
Department shall evaluate the conditions of all forestlands covered by existing 
tenurial instruments, memoranda of agreements (MOAs) and other agreements 
\ and contracts which shall be allowed to' continue until their expiry unless 
terminated for cause. 
CHAPTER XVI 
FINAL PROVISIONS 
SEC. 80. Separability Clause. - Should any provIsIon of this Act be 
declared unconstitutional or invalid, the same shall not affect the validity or legality 
of the other provisions. 
SEC. 81. Repealing Clause. - Subsections (b), (d), (e), (g), (g) and (i) of 
Section 4 of Act No. 3915; Republic Act No. 460; Presidential Decrees Numbered 
705,1153, ISIS, 1559 and 1775; Letter of Instruction No. 818; Executive Orders 
Numbered 277 and 278, series of 1987; and Executive Order No. 725, series of 
1981 are hereby repealed, and all laws, orders, rules and regulations or any part 
thereof which are inconsistent herewith are likewise hereby repealed or amended 
accordingly. 
SEC. 82. Effectivity. ~ This Act shall take effect thirty (30) days from the 
date of its publication in the Official Gazette or in at least two (2) national 
newspapers of general circulation. 
Approved, 
30