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

HOUSE of ee ad

INTRODUCED BY THE HONORABLE ANGELO PALMONES

AN ACT FOR THE PROTECTION AND SUSTAINABLE MANAGEMENT OF

FOREST ECOSYSTEMS TO ENHANCE FOREST ECOSYSTEMS SERVICES,

MITIGATE AND ADAPT TO ANTICIPATED CLIMATE CHANGE IMPACTS,
AND REDUCE POVERTY IN FORESTLANDS.

EXPLANATORY NOTE

Forests and forest ecosystems are the anchors of the environment. They provide services
that are important to the survival and socio-economic development of any country, They
are the habitat of diverse plants and animals, protect soils from erosion, regulate the flow
rain-water thus reducing the occurrence of flash floods during heavy rains and at the
same time ensure the flow of water from underground during times of low rainfall.
Coastal forests (mangroves) reduce the impacts of strong winds and provide protection of
coastal communities from strong waves and tsunamis. Forests also are the sources of
important resources such as timber and non-timber forest products which are the raw
materials for construction and for the manufacture of articles of commerce such as
furniture and handicrafts. They are also sources of food, phytochemicals and
pharmaceuticals. Trees and other forest biomass help mitigate the impacts of climate
change and their proper management helps in adaptation efforts against climate change.

Forestlands occupy over half of the total land area of the Philippines. At the turn of the
20" century forests covered more than 17 million hectares of the «country. However,
unmitigated use and abuse of the forest through unsustainable logging including illegal
logging and the practice of slash-and-burn agriculture plus damages brought about by
pests and diseases have reduced forest cover at an alarming rate, By 1990 the country had
only about 7 million hectares. The contribution of forestry to the national economy has
likewise declined dramatically. In the 1950s to 1980s forest products were one of the
country’s top ten export commodities in value and forest primary, secondary and tertiary
industries provided employment to more than a million Filipinos. Since about the turn of
this century the Philippines has become a net importer of logs and other forest products.


In spite of this situation the forests of the country can still be revived to its former
grandeur if managed well and sustainably. An indication of this is that since the early
2000 a large part of the country’s wood needs were now being supplied by forest
plantations. In 2007 about 80 percent of the country’s log production came from forest
plantations.

This Act aims to provide the strategies and programs for protection and sustainable
management of forest ecosystems to enhance the promotion of ecosystems services,
mitigate and adapt to anticipated climate change impacts. These strategies and programs
are anchored on the following principles:

Lk

2.

Sustainable Forest Management (SFM) as the policy framework and key strategy
for all plans and programs in the forestry sector;

River basins and component watersheds as basic planning units founded on the
Watershed Ecosystems Management (WEM) approach;

. Administrative jurisdiction of Local Government Units (LGU) and ancestral

domain as basic management unit in forestry;

. Community-based forest management (CBFM) founded on empowerment of local

communities and indigenous people and supported by multi-sector participation
as the principal strategy;

. Protection and rehabilitation of forest ecosystems as priority concerms;
. Regeneration and/or restoration of natural forests and tree planting as priority

measures to expand forest cover; and

. Good governance as necessary condition for sustainable forest management.

In view of the foregoing it is earnestly requested that this bill be immediately passed.

ANGELO B. PALMONES,


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

HOUSE OF REPRESENTATIVES,
House Bill No.__ 3103

Introduced by: HON. ANGELO B. PALMONES,

AN ACT FOR THE PROTECTION AND SUSTAINABLE MANAGEMENT
OF FOREST ECOSYSTEMS TO ENHANCE FOREST ECOSYSTEMS SERVICES,
MITIGATE AND ADAPT TO ANTICIPATED CLIMATE CHANGE IMPACTS, AND
REDUCE POVERTY IN FORESTLANDS,

Be it enacted by the Senate and the 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 Ecosystems

Management Act of 2010.”

SEC, 2. Basic Policy. Recognizing that forest ecosystems provide services that are

important to the survival and socio-economic development of the Filipino people, particularly in

mitigating and adapting to anticipated climate change impacts and reducing poverty in

forestlands, and in consonance 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 to a balanced and healthful ecology in accord with the rhythm and

harmony of nature, and to conserve and develop the patrimony of the nation, the State hereby
adopts the following policies relative to the management, development, and conservation of

forest ecosystems:

1, The specific limits of forestlands shall be delineated, demarcated, fixed, and legislated

* Such limits shall not be altered except through an Act of Congress;

‘The use of forest resources shall bear a social function, responsibility, and accountability

to promote the common good;

. Enhanced ecosystems services and poverty reduction shall be the focus of sustainable

forest development;

Climate change ‘strategies and actions shall be mainstreamed in the plans and programs

for the conservation, management, and development of forest and natural resources;

. Good governance shall be practiced in forest management, protection, conservation, and
development;

. The national government shall undertake its management function over forestlands

through collaboration with local government units and local communities within their

jurisdiction; and

Forest investments shall be promoted through provision of favorable investment

environment and public-private partnership. ;

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SEC. 3. Guiding Principles. Sustainable and integrated management, development, and

conservation of forest ecosystems shall focus on:

1. The needs of the Filipino people for various forest ecosystems services, including
provisioning services (such as food, fresh water, bio-chemicals, wood, fiber, fodder, and
fuel), supporting natural processes (such as biodiversity maintenance, pollination, soil


formation and nutrient cycling, water infiltration, production of atmospheric oxygen, and
enhancement of microclimate), regulating environmental processes (such as water flow’
regime and soil erosion regulation, carbon and climate regulation, natural hazards
protection, air quality regulation, and pest and disease regulation), and sustaining cultures
(such as cultural identity and integrity, spiritual values, aesthetic and recreational values,
and local knowledge systems);

. Collaboration among stakeholders towards enhancing forest ecosystems services and

empowering and capacitating local communities for sustainable forest ecosystems
management;

. The use of alienable and disposable lands and private lands for forestry purposes, such as

the establishment of forest parks, forest plantations, agroforestry. farms, and
domestication of resource bases of non-timber forest products; and

. Value-added processing by cominunities as part of the overall goal of reducing rural

poverty through rural industrialization.
In carrying out the above policies and guiding principles, the following shall be pursued:
Sustainable Forest Management (SFM) as the policy framework and key strategy for all
plans and programs in the forestry sector: SFM provides current understanding on how
the country’s forests should be managed to address present problems and the tools
required to generate and attain the desired forestry future. It consolidates experiences and
lessons learned in forest management and the resulting state of forest condition, SFM
provides a common framework and innovative approaches, strategies, and actions to
ensure that forest objectives to continuously provide timber and other forest products and
ecosystems services are met without undue effects on future forest productivity and the
natural and social environment;
River basins and component watersheds as basic planning units founded on the
Watershed Ecosystems Management (WEM) approach: Planning for the sustainable
management, development, and conservation of forest ecosystems shall be based on the
WEM approach that makes use of natural topographic and hydrologic boundaries and
considers the landscape from the mountain down to the coast and the interrelationships
between the upstream and downstream areas of the river basin and component
watersheds, considering that activities undertaken in the upstream or downstream areas
impact both areas and the watershed ecosystem as a whole, Basic to the WEM approach
is comprehensive resources assessment and adoption of practical operational systems for
putting every hectare of the watershed into a responsive management system, but
recognizing that sustainable development cannot be attained without the larger resource
base sustainability.

Planning and plan implementation in river basins and component watersheds shall
be within the context of sustainable development and these basic planning units shall be
considered as Sustainable Development Units (SDU);

|. Administrative jurisdiction of Local Government Unit (LGU) and ancestral domain as

basic management unit in forestry: Implementation of a river basin master plan or
component watershed management framework plan shall be based on the administrative
jurisdiction of LGU or ancestral domain;

Community-based forest management (CBFM) founded on empowerment of local
communities and indigenous people and supported by multi-sectoral participation as the
principal strategy: Vesting access rights and responsibilities to forest-dependent local
communities and indigenous peoples to undertake sustainable management, development,
and conservation of forest ecosystems shall have precedence over other strategies.
Empowerment and development of capacity of local communities and/or indigenous
people (IP) organizations and provision of secure tenure require the support of LGU.
CBEM shall thus be based on co-management between the municipal LGU and barangay/
IP organizations concemed. At the same time, participation in supporting CBFM of all
sectors of society shall be promoted. In addition to the Department of Environment and
Natural Resources (the Department) and LGU, national government agencies (NGA),
non-governmental organizations (NGO), civil society, the academe, the media, and the
private sector shall have a common but differentiated responsibility in supporting CBEM
operators in sustainable forest ecosystems management, development, and conservation.


Participation of the private sector in developing and managing forest ecosystems
shall be encouraged and promoted in designated suitable areas Subject to existing prior
and vested rights. As well, private sector participation shall be promoted through joint
ventures with CBFM operators;

Protection and rehabilitation of forest ecosystems as priority concerns: Protection of
forest ecosystetis, as well as rehabilitation of degraded forest ecosystems, shall be given
priority to conserve biodiversity, enhance ecosystems services, and provide economic
benefits;

Regeneration and/or restoration of natural forests and tree planting as priority measures
to expand forest cover: Where possible, natural regeneration shall be enhanced by
effective forest protection and assisted natural regeneration. Where natural regeneration is
not possible, tree planting using suitable species shall be undertaken to rehabilitate
degraded and/or denuded forest ecosystems and enhance ecosystem services, as well as
increase the economic benefits of local communities concerned; and

Good governance as a necessary condition: Good governance based on active
stakeholders participation, transparency, honesty, accountability, predictability, and
stability of policies is a necessary condition for effective, efficient, and sustainable forest
ecosystems management, development, and consérvation. As part of good governance, a
dynamic, professional, and people-oriented forest service shall be fully supported by the
government;

SEC. 4. Goal and Objectives. The goal of this Act is sustainably managed forest

ecosystems all over the country that are continuously generating various ecosystems services to
society, mitigating climate change and enabling various sectors to adapt to climate change
impacts, providing economic benefits, and helping local communities in reducing poverty,
through active cooperation and collaboration among stakeholders. To attain this goal, the
objectives of this Act are:

1

To establish permanent forestlands and partition them into component forest management
units following the Watershed Ecosystems Management approach for planning and
management purposes;

. To provide for effective administration of forestlands and forest resources based on

common but differentiated responsibilities of various stakeholders;

. To establish an effective planning system for sustainable management, development, and

conservation of forest ecosystems particularly in permanent forestlands, as well as in
alienable and disposable lands and private lands, and to mainstream climate change in the
various plans;

. To promote sustainable forest ecosystems management, development, and conservation

programs and operations;
To promote sustainable utilization of forest resources for reducing poverty in forestlands
and promoting national socio-economic development without impairing the ecological
balance and delivery of forest ecosystems services; and

To provide effective monitoring and control systems for ensuring sustainable
management, development, and conservation of forest ecosystems, including certification
of good forest management operations and provisions for equitable benefit sharing and
various incentives, as well as penalties for acts that destroy or degrade the forest
ecosystems or their services.

SEC. 5. Definition of Terms. As used in this Act, the term:

. “Adaptation” shall refer to the adjustment in natural or human systems in response to

actual or expected climatic stimuli or their effects, which moderates harm or exploits
beneficial opportunities.

“Afforestation” shall refer to the planting of trees or the artificial establishment of forest
in areas that were not previously forested.

“Agroforestry” 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.

4. “Ancestral Domain" shall refer to all areas generally belonging to indigenous cultural:
communities or indigenous peoples (ICCs/ IPs) as defined in Republic Act No, 8371 of
the Indigenous Peoples Rights Act (IPRA) of 1997.

5. “Ancestral Lands” shall refer to lands occupied, possessed and utilized by members of the
ICCs/IPs as defined in the IPRA.

6. “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

7. “Chain of Custody” shall refer to the path which forest products take from the forest to
the consumer, including all manufacturing, transformation and distribution links.

8. “Climate Change” shall refer to a change in climate that can be identified by changes in
the mean and/or variability of its properties and that persists for an extended period
typically decades or longer, whether due to natural variability or as a result of human
activity.

9. “Communal Forest” shall refer to-a tract of forestland set aside and established for and
under the protection, administration, and management of a city, municipality, or barangay
as a source of wood material for fuel, shelter, and manufactured products; as source of

. water for the community; and area for ecotourism and/or environmental protection or
socio-economic projects of local government units consistent with sustainable
development ‘

10.*Co-management” shall refer to the process of management in which government shares
power with resource users, with each given specific rights and responsibilities relating to
information and decision-making

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

12.“Conveyance” shall refer to any vehicle, vessel, device or animal used in gathering or
transporting forest products.

13.“Criteria” shall refer to the set of related indicators to describe and assess a forest state or
situation that should be met to comply with sustainable forest management.

14.“Department" shall refer to the Department of Environment and Natural Resources

15.“Denuded Forestlands” shall refer to forest lands that are devoid of forest tree cover.

16.“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) centimeters.

17.“Ecosystem” shall refer to living communities, the environment they live in, and their
interactions.

18.“Ecosystem services” shall refer to the various services provided by the ecosystems
which include, but not limited to, the consumptive, non-consumptive and regulating
service:

19.“Environmental Impact Assessment (EIA)” shall refer to the process of predicting the
likely environmental consequences of implementing a project or undertaking and
designing the appropriate preventive, mitigating, or enhancement measures.

20.“Environmental Impact Statement (EIS) System” shall refer to the organization,
administration, and procedures that have been institutionalized pursuant to Presidential
Decree No. 1586 for purposes of assessing the significance of the effects of any project or
undertaking on the quality of the physical, biological, and ‘social-economic environment
and designing the appropriate mitigating and enhancement measures.

21.“Expropriation” shall refer to buying back by the State when public interest so requires,
of forest areas under private or non-state ownership, subject to just compensation.

22.“Forest” shall refer to a plant community predominantly of trees and other woody
vegetation, growing more or les§ closely together. As indicator of forest area, it shail
refer to a stand with tree crown cover or equivalent stocking level of more than ten
percent (10%) and an area of more than half a hectare (0.5 ha.). The trees should be able
to reach a minimum height of five meters (Sm) at maturity in situ.

23.“Forest Auditing” shall refer to the systematic, documented verification process of



objectively obtaining and evaluating audit evidence to determine whether specified

" activities, events, conditions, management systems, or information about these matters to
conform with SFEM criteria and indicators. s

24.“Forest Certification” shall refer to a systematic, documented verification process of
objectively obtaining and evaluating audit evidence to determine whether specified
activities, events, conditions, management systems, or information about these matters
conform with SFEM criteria and indicators.

25.“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 and disposable" (A&D) lands in accordance with
Republic Act No. 7161.

26.“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.

27.“Forestlands” shall refer to lands of the public domain that have been classified as such
and all unclassified lands of the public domain.

28.“Forest Management Unit” shall refer to a clearly defined forest area, managed under a
set of objectives and according to a long-term management plan.

29.Forest Officer” shall refer to any public officer who by the nature of his appointment or
the functions of the position to which he is appointed is delegated by law and regulations
or commissioned by competent authorities to execute, implement or enforce the
provisions of this Act and other related laws and regulations.

30.*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
(all planted stands), or an intensively managed stand of any indigenous species, which
meets all the following criteria: one or two species at plantation, even-aged class, and
regular spacing.

31.“Forest Products” shall refer to goods and services derived from the forest such as but not
limited to timber, lumber, veneer, plywood, fiberboard, pulpwood, firewood, bark, tree
top, resin gum, wood oil, honey, beeswax, nipa, rattan, or other forest growth such as
grass, shrub, and flowering plant, the associated water, fish, game, scenic, historical and
educational.

32.“Forest Resources” shall refer to all resources whether biomass, such as plants and
animals including its by- products and derivatives, which can be a raw material assets that
can produce a more 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.

33.“Forest Restoration” shall refer to actions that facilitate forest ecosystem succession by
re-instating ecological processes that accelerate structural development, ecological

, functioning and biodiversity levels towards those of the climax forest ecosystem|" (i.¢.

the “target” ecosystem).

34."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.

35.“Indicator” shall refer to a quantitative, qualitative or descriptive attribute that, when
periodically measured or monitored, indicates the direction of change of sustainable
forest management.

36."Indigenous Peoples (IP)” shall refer to a group of people or tribe of indigenous Filipinos
as defined or described under the Indigenous Peoples Rights Act (RA 8371)

37.“Kaingin” shall refer to a portion of the forestland, whether occupied or not, which is
subjected to shifting and/or permanent slash-and-burn cultivation having little or no
provision to prevent soil erosion.

38.“Managed Forest” shall refer to a forestland under a deliberate system of protection,
rehabilitation, and development, which include utilization of resources, to ensure the
continuous production of desired forest products and/or services and the conservation of
soil, water, wildlife, and other natural resources therein.

39.“Mitigation” in the context of climate change, refers to human intervention to address
anthropogenic emissions by sources and removals by sinks of all GHGs, including ozone



depleting substances and their substitutes.

40.“Natural Forest” shall refer to forests composed of indigenous trees, not planted by man,
whose structure, functions, and dynamics have been largely the result of natural
succession processes. :

41.<Non-Timber Forest Products” shall refer to all biological materials and derivatives other
than timber, which are extracted from forests for human use.

42.“Permit™” shall refer to a short-term privilege or authority granted by the State to a person.
to utilize any limited forest resources or undertake a limited activity within any forest
land without any right of occupation and possession therein,

43.“Person” shall refer to a natural as well as juridical person, including local forest-based
‘communities or indigenous peoples organized in accordance with law or custom.

44.“Protected Areas” shall refer to areas defined and designated as such pursuant to
Republic Act No. 7586 or the NIPAS Act.

45.“REDD plus” shall refer to a broad range of actions to reduce emissions. from
deforestation and forest degradation (REDD) and the role of conservation of carbons
stocks, sustainable management of forests and enhancement of forest carbon stocks in
developing countries, supported by financing from industrialized nations.

46."Reforestation” shall refer to the planting of trees or artificial establishment of forest in
areas that were previously forested.

47."Secretary” shall refer to the Secretary of the Department of Environment and Natural
Resources.

48.“Selection System” shall refer to the systematic removal of mature, over-mature and
defective trees in such a manner that leave adequate number and volume of healthy
residual tress of desired species necessary to assure future crop of timber and forest cover
for the protection and conservation of soil, water, and wildlife.

49.“Silvicultural practices” shall refer to any action by man to further improve or enhance
the stand growth as a whole or the single tree for future harvest (i.e, assisted natural
regeneration, tree surgery, etc.).

50."Sustainable Development” means meeting the needs of the present generation without
compromising the ability of the future generations to meet their own needs.

51."Sustainable Forest Ecosystem Management” shall refer to the process of ecosystem-
based management of forest to achieve one or more clearly specified objectives of
management with regard to production of continuous flow of desired forest products and
environmental services without undue reduction of its inherent values and future
productivity and without undesirable effects on the physical and social environment.

52.""Tenure” shall refer to guaranteed peaceful access to and use of specific forestland area
and the resources found therein through an agreement, contract, or grant which cannot be
altered or abrogated without due process.

53.“Urban Forestry” shall refer to the establishment and management of forest in urban
environment for the physiological and psychological well being of the people.

54,“Vulnerable areas” shall refer to areas in danger of being adversely affected by gradual or
sudden change in climate, including the physical and biological components as well as
the socio-economic status of communities therein. G

55.“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.

56.“Watershed ecosystems management” or “WEM"” shall refer to a management system
that will provide the optimum social, cultural, economic, and environmental benefits to
the greatest number of people particularly those living in, adjacent to, or downstream of,
individual watershed areas, while maintaining the biological and cultural heritage of the
country.

57.“Wildlife” shall refer to wild forms and varieties of flora and fauna in all developmental
stage:

‘CHAPTER II
CATEGORIES AND PARTITIONING OF PERMANENT FORESTLANDS,

SEC. 6. Permanent Forestlands. All lands of the public domain classified as forestlands


by the Department. including the remaining unclassified lands, shall comprise the permanent,
forestlands of the country.

* SEC. 7. Establishment of Permanent Forest Lines. Permanent forest lines shall be
demarcated and established on the ground and shall serve as the basis for the declaration of
permanent forestlands. Any reclassification of permanent forestlands and/or any changes in
permanent forest lines shall require an Act of Congress for approval.

SEC. 8. Categories of Permanent Forestlands. Permanent forestlands shall be partitioned
based on sustainable development considerations into the following forestland categories:

1, Protection Forests. — All areas within the forestlands designated or set aside 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 subclassified as protection forestlands: Provided, That
reclassification shall be approved by an act of Congress; and

2. Production Forests. — All forestlands not subclassified 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 utilized in
accordance with a Department-approved management plan based on sustainable forest
management principles.

Protection and Production Forests shall be non-overlapping and shall together add
up to the total area of permanent forestlands in each island of the country; their
boundaries, as well as any further changes, shall be approved by an Act of Congr
Protection and Production Forests shall be managed as sustainable development units.

. 9. Further Partitioning of Permanent Forestlands into Forest Management Units
(FMU). For the purpose of assigning juridical entities responsible for management, forestlands
that have been partitioned into WPA/PFA shall be partitioned further into Forest Management
Units based on LGU jurisdiction and ancestral domain within; provided that in the case of any
unresolved boundary conflicts between adjacent LGU jurisdictions, the Department Secretary
shall resolve the given boundary conflict for FMU management purposes only by defining the
FMU boundaries along the areas of conflict; and provided further that each existing area covered
by an approved tenurial instrument shall be considered as a Forest Management Unit.

SEC. 10. Zoning of Permanent Forestlands. Every Protection Forest shall be zoned for
management into Strict Protection Zones and Controlled Use Zones based on strictly
implemented zoning criteria.

1. Strict Protection Zones shall include the core zone of Protection Forest , as well as all
mossy or primary/old-growth forests or natural beach/and all natural mangrove forests;
all areas above one thousand (1,000) meters above sea level; all areas above 50% slope:
all areas regardless of slope which are highly erodible or too rocky for forestry ot
agroforestry production purposes; all areas developed for the principal objectives of
establishing vegetative cover to prevent soil 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.

2. Controlled Use Zones shall include: Ecotourism Zone, Non-Timber Forest Production
Zone, Timber Production Zone, Agroforestry Zone, Aqua-Silviculture Zone, Mining
Zone, Built-Up Zone, and other Zones that are deemed appropriate during management
planning; provided that Protected Areas shall not contain any Timber Production Zone or
Mining Zone, and Watershed Protection Areas shall not contain any Mining Zone.

‘The Department shall have the responsibility of approving the zoning of
permanent forestlands. The management zones of a Protection/Production Forests shall
be carried over to its component FMU; provided that refinements of the zoning may be
allowed during detailed formulation of the FMU Management Plan and the refined zones
subsequently reflected in the given Protection/Production Forests to take effect upon
approval of the plan by the Department,

CHAPTER HI
ADMINISTRATION AND PLANNING FOR SUSTAINABLE MANAGEMENT
OF PERMANENT FORESTLANDS

SEC. 11. Jurisdiction and Control of Permanent Forestlands and Forest Resources. The
Department shall be the primary agency responsible for the management, development,
conservation, and utilization of the permanent forestlands including all resources found therein.

SEC. 12. Allocation of Forest Areas for Sustainable Management. Following the
principles of sustainable development and zoning provided under Sections 8-10 of this Act, the
Department shall rationally allocate forestlands for sustainable management according to the
needs and capability of interested stakeholders and shall also refer to the nationwide
vulnerability assessment of forests. The management of unallocated FMUs shall be assigned by
the Department to LGUs, local community forestry organizations, private sector, and other
qualified entities for management through the issuance of appropriate tenurial instruments

SEC. 13. Priority of CBFM in FMU Management, Following the guiding principle of
CBFM as the primary strategy for forest ecosystems management as provided for in Section 3 of
this Act, priority in the allocation of untenured FMUs, as well as of FMUs with expired and
cancelled tenurial agreements, shall be granted to CBFM, which shall be a co-management by
the concerned municipal-level LGU and local community forestry organizations, which shall be
Barangay Forestry Organizations (BFO) and/or IP Forestry Organizations (IPFO),

SEC. 14. Establishment of Municipal/City ENRO. All: municipal/city-level LGUs
involved in FMU management shall organize their Municipal/City Environment and Natural
Resources Office (M/CENRO) and staffed with foresters in appropriate positions.

SEC. 15. Tenurial instruments. The assignment of FMU-level management to LGU-
BFOs/IPFOs co-management shall be preceded by the signing of a Sustainable Forest
Ecosystems Management Agreement (SFEMA) between the Department and the’ LGU
concerned, All other tenurial instruments may be issued by the Department to other interested
and qualified parties in accordance with the modes of development and utilization of natural
resources provided under the Constitution. The Department shall formulate guidelines to secure
the rights of tenure holders.

SEC. 16. Forestlands under Management of other Agencies. Forestlands or portions
thereof, which have been assigned by law and Presidential Proclamations to the administration
and management of other government agencies or private power/water utilities service providers,
shall be included in the partitioning of public forestlands into the Protection/Production Forest
‘Area categories consistent with the purpose of the assigned forestlands, as provided for in
Section 8 of this Act, further partitioning into FMUs as provided for in Section 9 of this Act, and
zoning as provided for in Section 10 of this Act; and shall remain under the administration and
management by the agency concerned; provided that the Department shall have an oversight


function over FMU management and utilization of forest resources in those areas.. The agency
concerned shall be encouraged and supported by the Department in the management of the given
forestland following the CBFM strategy as described in Section 13 of this Act.

SEC. 17. Management Boards. A Management Board shall, be organized for cach
Protection/Production Forest Areas with representation from: (a) the Department who shall act
as Board Chair, (b) the agency assigned to administer the given forestland if any, (c) LGUs,
local communities, (d) private sector agencies/organizations, and (e) other concemed entities
participating in the management of the given forestland. The Board shall set policies related to
the administration and management of the given Protection/Production Forest Areas, institute
strategies and programs toward the successful implementation of those policies, and monitor and
assess the implementation of those policies.

SEC. 18. Integrated Watershed Management Councils. An Integrated Watershed
Management Council (IWMC) consisting of respective Protection/Production Forest Area
Management Boards shall be organized for each River Basin in the Islands of Luzon and
Mindanao and for each of the other islands of the country; provided that Metro Manila shall have
its own IWMC comprising of the Management Boards of watersheds that supply water to Metro
Manila. Each IWMC shall be chaired by the Department. The Council shall coordinate the
administration of the member Management Boards, monitor and assess the formulation and
implementation of Management Framework Plans, and direct resources towards the sustainable
management, development, and conservation of the included forestlands.

SEC. 19. Private Sector Participation in Management of Permanent Forestlands. Private
sector participation in management of permanent forestlands shall be encouraged. The
Department shall identify and set aside suitable forest areas for private sector development and
management and, together with the Board of Investment, shall formulate and provide a set of
incentives to the private sector for this purpose. Private sector participation shall be undertaken
through direct management of areas identified for such purpose or through joint venture with
concerned FMU management. All permanent forestlands currently managed by private sector
organizations shall continue to be managed by the given organizations, but subject to monitoring
and assessment following the forest certification system described in Section 47 of this Act.

SEC. 20. Management and Utilization of Forest Resources Within Permanent
Forestlands, Extraction of timber and non-timber forest products, and agricultural crops, their
by-products and derivatives, whether from natural forest, planted, or raised through application
of agroforestry practices, from within permanent forestlands including from within the areas
covered by Certificate of Ancestral Domain Title (CADT) or Certificate of Ancestral Land Claim
(CALC), shall require a prior permit, agreement, or clearance that are deemed necessary and
appropriate by the Department as recommended by the Forest Management Bureau (FMB), The
transport of these forest products from forestlands, including those from the area of the
Indigenous Cultural Communities and Indigenous Peoples covered by CADT or CALC, shall be
covered by a chain-of-custody (COC) certificate issued by the FMU' management. Relevant
information in the COC shall be transmitted to the Department's on-line database at least two (2)
days prior to the actual transporting as provided for in Section 45 of this Act.

Any extraction of forest resources considered as endangered, threatened, vulnerable, and
other restriction shall be done in coordination, consultation, and clearance from the Protected
Areas and Wildlife Bureau (PAWB).

EC. 21. Management and Utilization of Forest Resources within Titled Lands. All forest
resources and agricultural crops planted or raised within titled lands belong to the owner of the
land, who shall have the right to sell, contract, convey, or dispose of the same without the
necessity of any clearance from the Department; provided that for conveyance of harvested
timber the landowner shall provide the Department with an updated timber inventory and the


Department’s on-line database with COC information as provided for in Section 45 of this Act.

SEC. 22. Management and Utilization of Forest Resources within Alienable and
Disposable Lands. The Department shall encourage and provide incentives to landowners of
alienable and disposable lands to develop, maintain, manage and utilize forest resources on their
lands, or to develop and maintain a tree plantation or agroforestry on such lands. Landowners
who register their lands for forestry purposes with the Department shall be assisted by the
Department in the preparation of a management plan and shall be entitled to appropriate
incentives provided under Chapter VIII of this Act; 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 Agrarian Reform Law.

SEC. 23. Administration of Forest Resources Utilization within Ancestral Domain. The
Tecognition, ownership, and management of ancestral lands and domains shall be governed by
the provisions of the IPRA. The National Commission on Indigenous Peoples (NCIP) shall
coordinate with and consult the Department in providing assistance to the indigenous peoples 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, NCIP, DAR, and concerned LGU to evaluate and validate
the authenticity of all CALT/CALC claims and applications of the IPs prior to the conduct of all
survey activities and issuance of corresponding titles,

Any project of a holder of a Certificate of Ancestral Domain Title or any such similar
instrument to develop or use forestlands or forest resources therein that would result in severe
soil erosion or environmental degradation shall be subject to the provisions of Environmental
Impact Assessment (EIA) in accordance with Presidential Decree No. 1151 or the Philippine
Environmental Policy, and Presidential Decree No. 1586 on Establishing an Environmental
Impact Statement System, and this Act.

SEC. 24. Forestry Planning System. The Department shall institute and oversee the
implementation of a forestry planning system consisting of the following hierarchy of plans,
which shall be regularly updated:

1. Master Plan for the Forestry Sector. The Master Plan shall include a multi-faceted
analysis of the forestry sector, its strengths, weaknesses, opportunities, and threats,
including vulnerabilities and threats resulting from climate change; set long-term goals
and medium-term objectives, formulate programs to guide the long-term development of
the forestry sector and attainment of medium-term targets, and specify the requirements
for the implementation of the development programs. The Master Plan shall be prepared
by the Department in collaboration with other stakeholders and submitted to the President
of the Philippines through NEDA for approval.

2. River Basin Master Plans. River Basin Master Plans shall be in accord with the Master
Plan for the Forestry Sector and shall focus on enhancing the delivery of various forest
ecosystems services in the river basin, with emphasis on: (i) enhancing forest ecosystems
adaptation to and mitigation of climate change; (ii) ecosystem-based adaptation that
implements a range of strategies for the management, conservation and restoration of
forest ecosystems to provide services that enable people to adapt to the impacts of climate
change; and (iii) provision of multiple co-benefits, such as conservation of biodiversity,
enhancement of carbon stocks for mitigating climate change, supplying of water and
various economic products, and generation of livelihood and income for local
communities, by means of ecosystem-based adaptation measures. The River Basin Master
Plans shall be prepared by the concerned Regional Office(s) of the Department in
collaboration with other stakeholders and submitted to the Department Secretary for
approval.

3. Protection and Production Forest Management Framework Plans. The Protection and
Production Forest Management Framework Plans shall provide a comprehensive
assessment of resources and constraints including vulnerability and adaptation of forest
ecosystems to climate change, set goals and objectives for Protection and Production


Forest management related to the delivery of ecosystems services including ecosystem-
based adaptation and poverty reduction, identify and delineate the management zones of
the Protection and Production Forest, provide principles and prescriptions for managing
each of the zones to attain the set goals and objectives, and formulate a program for

+ putting the Protection and Production Forest under sustainable management,
development, and conservation. The Protection and Production Forest Management
Framework Plans shall be prepared by the Provincial Office(s) of the Department in
collaboration with other stakeholders and submitted to the Department's Regional
Executive Director concerned for approval. The Department, the Department of Interior
and Local Government (DILG), the League of Provincial Governors, and other concerned
government agencies shall formulate a joint strategy for the completion at the earliest
possible time the initial management framework planning process all over the country.

4, FMU Management Plans. As co-managers of the FMU, LGU and BFOs/IPFOs shall be
responsible in preparing a detailed FMU Management Plan in accord with the Protection
and Production Forest Management Framework Plans; provided that in the case of FMUs
under existing tenurial arrangement, the FMU operator shall be responsible in preparing
the FMU Management Plan. The Department shall provide technical support, primarily
capacity building, to enable the LGU and BFOs/IPFOs to prepare by themselves the FMU
Management Plan, including the collection of the necessary information to prepare the
plan, The FMU Management Plan shall be submitted to the Provincial Environment and
Natural Resources Office (PENRO) for approval after signing of the SFEM Agreement.

5. Annual Operations Plans, To facilitate implementation of the FMU Management Plan,
participating BFO/IPFO shall prepare annual operations plans that are in accord with the
FMU Management Plan and including a report of the previous year’s operations;
provided that in the case of FMUs under existing tenurial arrangement, the FMU operator
shall be responsible in preparing the Annual Operations Plans. MENRO foresters shal]
support the BFOs/IPFOs for this purpose by providing training and technical assistance.
A copy of BFO/PFO annual operations plans shall be provided to the MENRO and
Department's PENRO. Any substantial deviation from the FMU Management Plan shall
be subject to PENRO approval.

The FMU management and operations plan shall conform with the Department's
Criteria and Indicators for SFEM.

CHAPTER IV
SUSTAINABLE FOREST ECOSYSTEMS MANAGEMENT
PROGRAMS AND OPERATIONS,

SEC. 25. Assigning the Implementation of National or Local Forestry Programs to
CBFM, Any national ot local programs and their projects and operations that are related to the
management, development, protection, and conservation of forest ecosystems shall be
implemented following the CBFM approach as defined in this Act and assigned through a
memorandum of agreement to concerned FMUs for implementation together with the resources
allocated for such program or project, and covered by a benefit-sharing arrangement between the
FMU operators and the proponent. Those programs or projects shall include those on forest
restoration, reforestation and afforestation, industrial tree plantations, agroforestry, biomass
energy production, non-timber forest products (NTFP) development, Payments for Ecosystems
Services (PES), and Reduced Emission from Deforestation and Forest Degradation (REDD).

SEC. 26. Maintenance of High Conservation Value Forests. As part of formulation and
implementation of Protection and Production Forest Areas Management Framework Plans and
FMU Management Plans, high conservation values (HCV) shall be identified and delineated,
including: HCV1 (high concentration of biodiversity), HCV2 (threatened landscape forests),
HCY3 (threatened unique forest ecosystems), HCV4 (important services of nature including
protection of water resources, settlements, farms, and aquaculture from wind, landslip, and other
hazards), HCVS (unique sources. of basic needs of local communities), and HCV6 (sacred and


cultural forests of local communities). The aforementioned plans shall include provisions for
monitoring and maintenance of the identified HCV forests. Management and utilization activities
in Controlled Use Zones that contain HCV shall ensure the maintenance of the given HCV.

SEC. 27. Forest restoration, reforestation, and afforestation. The goal of forest
restoration, reforestation, and afforestation shall be to raise the forest cover in each FMU to at
least fifty percent (50%) of the FMU area within six (6) years and to at least eighty percent
(80%) within twelve (12) years from approval of the FMU Management Plan. Forest restoration
facilitated by forest protection shall be the rehabilitation strategy in degraded and/or denuded
forestlands within Strict Protection Zones; provided that, where natural regeneration is not
possible, planting of indigenous tree species shall be done to enhance the biodiversity of the area,
Appropriate tree species to be used in reforestation and afforestation of degraded and/or denuded
forestland within Controlled Use Zones of Watershed Protection Areas and Production Forest
Areas shall be selected depending on the nature of the given zone.

Each FMU shall establish and maintain multi-purpose nursery for the production of
quality seedlings required in the conduct of reforestation and afforestation as well as sources of
quality seedlings. Reforestation and afforestation or the establishment of forest plantations, tree
farms, and agroforestry farms in private lands shall be encouraged. The private landowner shall
be entitled to the incentives provided for under Sections 56 and 57 of this Act; provided that such
private forest plantations are duly registered with the Department.

SEC, 28. Carbon Sequestration and Storage. As part of climate change mitigation and
adaptation measures and to enhance ecosystems services, carbon sequestration and storage shall
be included in the Forestry Sector Master Plan, River Basin Master Plans, Protection/Production
Forest Area Management Framework Plans, FMU Management Plans, and Annual Operations
Plans. The Department shall provide support to FMU managers in implementing operations that
increase carbon sequestration and storage. Payments for Ecosystems Services, REDD plus, and
other sources shall be accessed to provide financing to carbon sequestration and storage activities
of FMU operators. The Department, in collaboration with the Climate Change Commission, shall
formulate the regulations governing carbon trading.

SEC. 29. Ecotourism. FMU management shall enhance and conserve the ecotourism
values found therein. Timber harvesting for whatever purposes, commercial-scale collection of
non-timber forest products, farming, grazing, aquaculture, and infrastructure development shall
be prohibited in Ecotourism Zones of the FMU, except as part of the tourism development
program of the FMU and as indicated in the approved FMU Management Plan. Design and,
construction of tourism infrastructures shall be in accord enhancement of the natural beauty
and/or attraction of the site.

SEC. 30. Resources Management for Non-Timber Forest Products. FMU management for
non-timber forest production shall not be limited to the Non-Timber Forest Production Zones and
other Zones of the FMU where such products can be grown and managed side-by-side with the
main produets/services of the given zone, and based on Department rules and regulations.

Harvesting of non-timber forest products shall be on sustainable basis, promote productivity of
the non-timber forest product resources, and minimize any disturbance of the soil, water, and
biodiversity resources of the site. Domestication of resource bases of non-timber forest products
shall be encouraged.

SEC. 31. Timber Production Management. FMU management for timber production shall
be limited to the Timber Production Zones of the FMU and based on Department rules and
regulations. Timber production shall be on sustainable basis, promote productivity of timber
resources, and minimize any disturbance of the soil, water, and biodiversity resources of the site.


In general, the selection system together with mother tree seleétion shall be applied in
timber production zones. The Department shall review the selection system to include selection
of phenotypically superior mother trees and institute refinements in consideration to changes in
forest structure that have occurred since the system was first introduced. Clear-cutting shall be
allowed only in plantations, and any clear-cutting shall be followed immediately by tree planting
as well as maintenance of planted trees until they are fully established. Regeneration of harvested
stands shall be based on natural regeneration processes and assisted natural regeneration,
including plantations where suitable natural regenerated species shall be retained and maintained.

SEC. 32. Agroforestry. Agroforestry shall be one of the key upland development
strategies to be used in developing forest areas occupied by upland farmers. Agroforestry
practices, including domestication of resource bases of non-timber forest products, shall be
limited to the Agroforestry Zones of the FMU and based on Department rules and regulations.
Such practices shall be done with utmost consideration given to minimizing soil erosion and
protecting biodiversity.

The practice of agroforestry in the Agroforestry Zones shall be limited to members of the
BFO/PFO, which shall formulate their own rules on agroforestry, such as on individual or
communal allocation of land for agroforestry, use of soil conservation and other appropriate
technologies, sharing of costs, and sharing of benefits. Such BFO/PFO agroforestry!
management rules shall be submitted to the Protection/Production Forest Management Board for
its concurrence. The Board shall have an oversight function in the practice of agroforestry in the
Protection/Produetion Forest.

Farmers who are engaged in kaingin-making shall be encouraged to join as members of
BFO/IPFO and to relocate their farming activities to the Agroforestry Zone, subject to the
BFO/IPFO rules on agroforestry.

The Department shall develop a national program to support appropriate agroforestry
system and shall assist the farmers in a aspects of agro-forestry development from planning to
marketing of agroforestry products and adoption of appropriate technologies to maximize and
sustain economic benefits to the farmers.

SEC. 33. Mangrove Development and Management. Rehabilitation of degraded
mangrove forests through afforestation/reforestation/enrichment planting of appropriate
mangrove species shall be intensified. Cutting of mangroves species for the establishment of
fishpond shall be prohibited except for the area used for harvesting and feeding. Fishery
production in duly designated Mangrove Production Zones shall promote productivity of fishery
resources and shall be done without cutting the mangroves. Establishment of new mangrove
plantations in tandem with fishpond development (aqua-silviculture) may be allowed in
Mangrove Production Zones provided that not more than 20% of areas to be developed shall be
devoted to fishpond. The mangrove plantations established within the aqua-silviculture projects
may be permitted to be selectively harvested for domestic purposes only on a sustainable basis as
deemed appropriate and that the privilege to harvest shall be granted only to the private
individual or a group of individuals, or entity which established and developed the said
plantations as previously authorized through an approved contract or agreement for the purpose:
provided that harvesting shall be limited to mangroves that are part of the Timber Management
Zones and Non-Timber Production Zones of the FMU as indicated in the approved FMU
Management Plan; and provided further, that the cutting of mangrove trees and other associated
plants within duly-designated Mangrove Protection Zones whether naturally growing or planted
is strictly prohibited.

SEC. 34. Mining in Permanent Forestlands. Mining of minerals and energy resources
shall not be allowed in Protection Forest Areas to give priority to the survival of society by


enhancing, protecting, and conserving various forest ecosystems services. Mining of minerals
and energy resources may be allowed in Production Forest Areas subject to joint assessment bY
the Mines and Geosciences BureawDepartment of Energy, Forest Management Bureau,
Protected Areas and Wildlife Bureau, Environment Management Bureau, concerned LGU and
third party representatives; provided that mined-out areas shall be immediately rehabilitated.

SEC. 35. Built-up Areas in Permanent Forestlands. Permanent roads shall be designated as
part of the Built-up Zones of the FMU. Temporary access roads shall be designated as part of the
FMU zone that requires such access. Permanent housing and building houses with materials of
permanent nature, such as concrete, shall not be allowed in the FMU, except as part of the
approved FMU Management Plan and with concurrence of the Department's Regional Office.

SEC. 36. Forest Protection. Protection of forests in permanent forestlands against land-
use conversion, fire, pests and diseases, invasive species, chemicals, climate-induced causes, and
other agents of forest destruction shall be included in the Forestry Sector Master Plan, River
Basin Master Plans, Protection/Production Forest Management Framework Plans, FMU
Management Plans, and Annual Operations Plans.

IWMCs and Protection/Production Forest Management Boards shall formulate a forest
protection strategy and program for their areas, oversee and monitor implementation of such
program, assess the effectiveness of such program, and institute measures to make such program
effective.

FMU_ operators shall be authorized to prohibit kaingin-making/slash-and-burn
farming/shifting cultivatiow/illegal occupancy in the FMU by: (a) conducting a survey of
occupancy and farming activities; (b) negotiating with the occupant/unauthorized farmer to give
up their illegally occupied land/farming activities, join the BFO/IPFO, and relocate their farming
activities to the Agroforestry Zone of the FMU; (c) file charges in court against
occupants/farmers who refuse to give up their illegal occupation and/or farming activities.

The Department shall provide support to the FMU operators/managers in their forest
protection activities. The product chain-of-custody system provided for in Section 45 of this Act
shall be implemented by the Department, FMU: operators/managers, and the police to prevent
and apprehend thieves of forest products. The act of purchasing and/or use of stolen forest
products by individuals or company shall be penalized as provided for in Section 67 of this Act.

SEC. 37. Urban Forestry. As part of climate change adaptation and mitigation measures
and to enhance ecosystems services, communal forests, tree buffers along roads and waterways;
and forest/tree parks in urban areas and open spaces of housing projects shall be established in
cities and municipalities. DENR and forestry research and academic institutions shall provide
technical assistance to ensure that appropriate species and technologies are employed in the
establishment and maintenance of such parks, communal forests, and tree buffers.

CHAPTER V
UTILIZATION OF FOREST RESOURCES

SEC. 38. Use of Permanent Forestlands Exclusively for Forestry and Subsidiary Purposes.
The use of permanent forestlands shall be limited to forestry and subsidiary purposes in
appropriate zones mentioned in Section 10 of this Act and as enumerated in Sections 26-35 of
this Act. The use of permanent forestlands for purposes not otherwise mentioned shall require
Department approval.

SEC. 39, Harvesting of Forest Products. Harvesting of timber and non-timber forest


products shall be based on the principle of sustainability and conservation of soil, water, and
biodiversity as mentioned in Sections 30-31 of this Act. In addition, Department approval for
harvesting large trees of at least 30 cm in diameter at breast height shall be subject to the conduct
of a forest inventory and mapping of harvestable trees, including COC numbering of harvestable
trees as mentioned in Section 45 of this Act, and reporting to the Department and the
Department's databas¢ of harvested trees.

SEC. 40. Transport of Forest Products’ and Disposal of Confiscated Forest Products
Transport of timber and non-timber forest products that do not carry a COC number and is not
supported by COC documentation, as provided for in Section 45 of this Act, shall be prohibited.
Timber and non-timber forest products that do not carry a COC number shall be considered as
coming from illegal sources and subject to confiscation. All such confiscated products shall be
turned over to the Department. The Department shall dispose of such confiscated products by
donating them to public and socially beneficial projects taken from a chronologically sequenced
list of Department approved requests for donation of such products

SEC. 41, Downstream Processing of Forest Products. ‘To add value to harvested forest
products, further processing into finished and semi-finished products shall be encouraged and
supported. CBFM and other FMU operations shall be allowed to process their forest products or
to make them available in the open market of raw forest products subject to restrictions on forest
products transporting as mentioned in Section 39 of this Act and prior payment of forest charges
as mentioned in Section 61 of this Act.

SEC. 42. Forest-Based Industries. ‘To meet the demands for forest-based goods and
services of a growing population the State through the Department shall promote the
establishment, operations, and development of forest-based industries.

SEC. 43. Export and Sale of Locally Produced Wood Products. Logs and raw or rough
lumber manufactured from such logs, derived from natural grown trees of whatever species cut,
gathered, or removed from the local natural forest shall not be exported . Only finished and
semi-finished lumber products, wood manufactures, wood panels, and other finished wood
products from such logs may be exported by licensed exporters. Finished products from forest
plantations may be allowed to be exported based on guidelines.

No person shall sell or offer for sale any log, lumber, vencer, plywood or other
manufactured wood products in the international or domestic market without complying with the

ification and grading rules established or to be established by the government. Export license
for finished products shall be granted to certified operators. 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.

SEC. 44. Importation and Sale of Logs and Other Forest and Wood Products. Logs,
lumber, and other forest- and wood-based products may be imported to the country subject to the
registration requirements of the Department and to the tariff and duties under the tariff and
custom code and quarantine regulations. Any product manufactured or remanufactured out of
imported forest and wood materials shall be allowed to be sold in the domestic or international
market subject to compliance with the grading rules and standards and export license.

CHAPTER VI
MONITORING AND CONTROL OF FOREST MANAGEMENT
AND UTILIZATION


SEC. 45. Forest Products Chain-of-Custody. The Department shall institute a forest
products chain-of-custody system (COC) to enable the tracing of transported, processed, or
marketed forest products to their source. All forest products from permanent forestlands shall
bear an official COC number; otherwise they shall be considered as illegally harvested

Transport Permit shall be issued to private land owners who transport forest products that
have been harvested from their own lands with respective COC number that is consistent with
the Department’s COC; their forest products shall be considered as coming from legal sources,
provided that they have previously submitted to the Department a pre-harvest inventory of their
land and that they have submitted at least two (2) days prior to the transport of forest products
the list of forest products and their corresponding COC number to the Department’s COC
database,

SEC. 46. Internal Monitoring and Assessment of Forest Management Operations, The
progress of forest management operations shall be monitored continuously by FMU operators
and reported: regularly to the Protectiow/Production Forest Area Management Board. ‘The
Management Board shall institute supportive mechanisms and actions to improve the
performance of FMU operators.

SEC. 47. External Monitoring and Certification Assessment of Forest Management
Operations. The Department shall institute a national forest certification system to externally
monitor and assess the performance standards of FMU operations and to ensure that forest
products coming from FMUs are from certified sustainable sources when local consumers buy
them in the market.

The Department shall be the certifying organization of the national forest certification
system, but shall implement the external monitoring and certification assessment of FMUs
through Department-accredited third parties, which shall come from NGO, academe,
professional groups, and other private bodies using local experts. The results of external
monitoring and certification assessment shall be accessible to NGO advocacy groups and the
general public by publishing them in the internet and other suitable media.

The Criteria & Indicators and auditing system (CIA) developed by FMB shall be used as
the initial forest certification standards and applied to the chain of custody from sources to the
market. The Department shall further develop the CIA system through a national consultative
process into a system of Principles, Criteria, and Indicators (PCI) that shall be compatible with
internationally accepted standards and shall work for the acceptance of Philippine certified forest
products in foreign markets. The Department shall also explore means to enter into partnerships
with existing market certification schemes with governments of purchasing countries in,
accordance with their forest products procurement policies.

Forest products sold in the local market shall carry the Department seal of certification;
otherwise they shall be considered as not coming from sustainable sources. In addition forest
products from FMUs shall carry a COC number so that they can be traced to their legal source.
To enable their forest products to carry the Department seal, private landowners engaging in
forest plantation development are encouraged to get their operations certified under the national
forest certification system.

SEC. 48. Control of Forest Management Operations. Upon approval of this Act and the
establishment of the Department's forest certification system, all forestland operations covered
by existing tenurial instruments, MOAs, and other agreements and contracts shall undergo third-
party certification. Operations that fail the certification assessment shall be terminated and their
tenurial instrument shall be cancelled, provided that such failure is included in the grounds for
termination or gross violation of such agreements. Those operations that pass certification


assessment shall be certified and subject to annual certification audits as defined in Section Sv of
this Act. Certified operations that fail annual certification audits shall likewise be terminated and
their tenurial instrument cancelled. Certified operations that continue to pass the annual
certification audits shall be allowed to continue operating until their legal expiration date. All
operations that expire or are terminated for failing certification assessment or annual audits shall
be turned over by the Department to the LGU concerned for conversion to CBFM as defined in
this Act starting with*the signing of SFEM Agreement and organizing of BFOs/IPFOs to co-
partner with the LGU. Operations based on existing tenurial instruments that pass certification
assessment and annual certification audits shall also be allowed to be converted to CBEM as
defined in this Act with the consent of the operators.

SEC. 49. Chain-of-Custody Certification. The Department shall also institute a COC
certification system to enable forest products processing plants to state that the forest product
raw materials of their finished or semi-finished products have come from Department-certified
sources. Finished or semi-finished forest products that are transported or marketed that come
from COC-Department-certified processing plants shall carry the’Department’s certification seal
that shall also include information on the percentage content of raw materials coming from
Department-certified forest operations.

SEC. 50. Conflict Resolution, Parties from within an FMU and between FMUs shall be
encouraged to resolve internally any conflicts related to forest management, development,
protection, conservation, and utilization between them. Conflicts that cannot be resolved
internally shall be reported for adjudication/resolution by the Protection/Production Forest
Management Board. Conflicts that cannot be resolved by the Management Board to the
acceptance of the parties in conflict shall be submitted to the Courts for their resolution.

CHAPTER VIL
SUPPORT SYSTEMS

SEC. 51. Forestry Education. Formal forestry education in the Philippines shall be
rationalized. A nationwide assessment of forestry schools shall be conducted by Commission on
Higher Education (CHED) who shall develop guidelines within one (1) year upon issuance of
this Act, on the evaluation of forestry schools and in phase-out plans of sub-standard schools.
This shall be done in coordination with the Department, the Board of Examiners of the
Professional Regulations Commission (PRC), the Philippine Forestry Education Network
(PAFERN) and the Society of Filipino Foresters, Incorporated (SFI). The main purpose of this
rationalization is to ensure the quality of formal forestry education and establish, support and
sustain centers of excellence in forestry and environmental education to develop high quality
manpower and promote global competitiveness. CHED shall have the power to recommend
phase-out of sub-standard schools in accordance to an agreed phase-out plan considering the
plight of enrolled students in their BS Forestry program. The CHED shall likewise include
ecology and environment courses in the general education curricula.

The DepEd shall include subjects on forest ecosystems and climate change adaptation and
mitigation in the curricula for elementary and secondary education to develop among students
positive attitude towards the environment, and become instruments in effecting positive change
in the home, community and society towards improving the countty’s resilience to climate
change. DepEd shall also include practicum in actual planting of trees scheduled at least once a
year.

SEC. 52. Capacity Building. The Department, in coordination with the academic
institutions, PRC Board of Examiners for Foresters, Civil Service Commission, the Commission
on Higher Education and DepEd, shall formulate and develop a continuing forestry, natural
resources, and environment program which shall address the education and training requirements
of forest officers, LGUs, NGOs, local communities and indigenous peoples in the area of


forestry, natural resources and environment to reduce the impacts of climate change and
accelerate social progress.

SEC. 53. Research and Development. Research and development, invention, innovation
and their utilization to science and technology education, training and services shall be given
priority. The government shall support scientific and technological capabilities and their
application to the country’s productive system, national life, and adaptive capacity to climate
change. Appropriate technology shall be used to protect the environment, reduce climate change
effects, increase community adaptation to climate change and enhance their livelihood.

‘The Department shall coordinate with other research agencies to go into co-financing
‘agreements with the private sector in the conduct of research and development provided that the
terms and conditions are beneficial to Forest Ecosystems Services for the country.

SEC. 54. Policy Research and Development. The Forestry Development Center (FDC)
based at the UPLB College of Forestry and Natural Resources shall continue to serve as the
primary policy research and development center for forestry, environment, and natural resources
management. The FDC shall perform its functions in close coordination with the Forest
Management Bureau of the Department and other policy research institutions. It shall assist the
Department in the formulation, review, and evaluation of proposed and existing policies in
forestry, environment, and natural resources. To enable the FDC to carry out its mandated
function of policy research, it shall have a share in the sustainable forest,ecosystem development
fund pursuant to Section 66 herein.

SEC. 55. Forestry Extension Services. With support from LGUs, NGOs, media and other
organizations, the Department, the Philippine Information Agency (PIA), the Department of
Education (DepEd), state owned and private universities and colleges, a nationwide program for
sustained public information and advocacy campaign for forest and natural resources
conservation, sustainable forest development and climate change shall be formulated by CHED.
Adequate and sustainable funds to implement research, technology development and transfer
programs shall be provided by each of the aforementioned agencies and institutions under the
General Appropriations Act.

CHAPTER VIII
SYSTEM OF INCENTIVES

SEC. 56. Incentives for Engaging in Forest Development. To encourage qualified
pérsons, natural or juridical, to engage in forest management activities, they shall be granted
ingentives as provided for by existing laws such as the National Internal Revenue Code, as
amended and Executive Order 226 or the Omnibus Investment Code, among other laws.

SEC. 57. Tax Incentives for Forest Plantation Activities. The following tax incentives shall be
granted to qualified persons engaged in forest plantation activities:

1. Expenses incurred in complying with the requirements of this Act shall be allowed as
deductible expenses for income tax purposes subject to the provisions of the National
Internal Revenue Code of 1997, as amended. Provided, That the deduction shall only
apply to the taxable period when the expenses were incurred;Incentives granted to
registered domestic enterprise under the Investment Priorities Plan (IPP);

2, Exemption from the payment of forest charges imposed under the provisions of this Act;
‘The agreement holder shall not be subject to any obligation, prescribed in or arising out
of the provisions of the National Internal Revenue Code, on withholding tax at source
upon interest paid on loans incurred for the development and operations of forest
plantations;

4, 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;

5. The Board of Investments (BOI) shall classify forest plantations as pioneer and preferred
areas of investment under its annual priority plan subject to the pertinent rules and
regulations;

6. The agreement holder shall be given priority to access credit assistance being granted by
Government-owned, -controlled and/or -supported financial institutions;

7. 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;

11.Exemption from Expanded Value Added Tax;

12.Exemption of forest plantation from payment of real property assessment tax;

13.No termination of the contract or agreement except for cause or for reason of public.
interest and only after due process; and

14.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.

SEC. 58. 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: '

1. All processing plants or mills shall be assisted on their supply of raw materials,
preferably but not exclusively from local sources;

2. All processing plants or mills shall be granted operating permits for five (5) years
renewable for another five (5) years, provided that permits for processing plants owned or
operated by holders of forest management agreements or contracts shall be co-terminus
with said agreements or contracts;

3. The Department shall promote and strengthen the linkages among corporate, family-
based, and community-based industries; and

4. The Department shall provide on its own or propose to the President or to Congress, other
incentives to encourage the establishment and development of corporate, family and
community forest-based industries. Agreements or licenses over forest areas granted to
wood-based plants shall be converted into any mode authorized in this Act. Expansion in
capacity of wood-based plants shall be encouraged and the same shall be given priority
access 0 production forestlands and other areas available for development as source of
raw materials.

SEC. 59. Other Incentives. A percentage of the value of confiscated materials shall be
used as incentives to informants, including Department personnel. Additional incentives may be
provided to personnel of the Department, in addition to those provided under the Government
Service Insurance System (GSIS) or Workmen's Compensation Law. They shall also be entitled
to free legal assistance should legal cases be filed against them in the performance of official
duties. .

CHAPTER IX
FOREST CHARGES, FEES, AND SHARING

SEC. 60. Fees, and Government Shares for the Utilization, Exploitation, Occupation,
Possession of, 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/industries mandated by law to manage, conserve,
develop and protect forestlands and forest resources found therein, except administrative fees for


the filing and processing of applications for the issuance and renewal of licenses, permits, and
agreements: Provided, further, That watershed administrators and/or service contractors that have
forest management agreements with the Department 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 concemed.

SEC. 61. Forest Charges. There shall be collected charges per cubic meter based on
percentage of the FOB market price per species and grade class by the Department.

These forest charges shall be applied to naturally growing timber and non-timber forest
products gathered within forest lands and alienable and disposable lands. All planted trees and
non-timber forests products harvested from private land shall be free from forest charges.

For the above purpose, the valuation and the actual FOB market price of forest products
shall be justly determined by the Department based on prevailing market price, which shall
likewise provide for the time, manner, and place of payment of such charges, The Department
shall allocate 50% of forest charges to reforestation and natural regenerations programs.

SEC. 62. Fees for Administrative Services Rendered by the Department. Fees shall be
collected for various services rendered by personnel of the Department in connection with their
duties and responsibilities as may be requested by interested parties, including but not limited, to
surveying, mapping and other similar service activities: Provided, That administrative fees shall
be waived for services-rendered to local communities or indigenous peoples in the preparation of
their management plans including timber/other resources inventory on farmers’ land.

SEC. 63. Proper Valuation and Compensation for Ecosystems Services. The ust
various ecosystems services provided by the forests shall be compensated. Subject to exis
laws, any commercial and industrial users of water, energy, recreation and other ecosystems
services of the forests shall be charged a watershed protection and conservation fee. These fees
shall be used to fund research and development activities, and for the conservation and
management of the forests.

The Department shall formulate and institute appropriate and doable mechanisms for
proper valuation and fair and comprehensive pricing of ecosystems services provided by the
forests, including water for domestic, industrial, irrigation and power generation, biodiversity
and eco-tourism with watershed ecosystems as the minimum spatial units.

Local, regional, and national plow back mechanisms of utilizing proceeds from the use of
watersheds, forests and forestlands for ecosystems services such as, but not limited to, power
generation, supplying domestic and irrigation water, eco-tourism and carbon trading shall be
developed and promoted to finance forest protection, rehabilitation, reforestation, afforestation,
agroforestation and development.

SEC. 64. Payments for REDD plus. Entities involved in preventing deforestation and
sequestering carbon in their FMUs shall have equitable share in the proceeds of REDD-plus
payments. The capacity of local FMU managers shall be developed to monitor their forest
resources as basis for equitable sharing in REDD-plus payments.

CHAPTER X
APPROPRIATIONS AND FINANCIAL SUPPORT


SEC. 65. Appropriations. The Secretary of the Department of Environment and Natural
Resources shall include in the Department’s program and issue such rules and regulations for the
implémentation of the provisions of this Act, the initial funding of PhP 500 million is hereby
appropriated for the implementation of this Act. Subsequent budget shall be incorporated in the
annual appropriations of the Department and thereafter included in the annual General
Appropriations Act. For local government units, the’ funding requirements shall be taken from
their internal revenue allotment (IRA) and other LGU income.

SEC. 66. Sustainable Forest Ecosystems Development Fund (SFEDF). A Sustainable
Forest Ecosystems Development Fund (SFEDF) to be administered by the Department as a
special account in the National Treasury is hereby established to provide sustainable funds for
forest protection, reforestation and forest development and management, including the
rehabilitation and preservation of watershed areas, CBFM program, information and educational
campaigns as well as scholarship programs and policy research. At least fifty percent (50%) of
the forest charges and government share in all products removed from the forestlands, rentals,
proceeds from sales of confiscated forest products including conveyances, fines and penalties,
and administrative fees collected shall be set aside for the buildup of the SFEDF. The fund may
be augmented by grants, donations, endowment from various sources, domestic or foreign, for
purposes related to their functions and other innovative funding mechanisms such as
securitization of forest assets, among others.

Disbursements from the fund shall be subject to the usual accounting and budgeting rules
and regulations: Provided, That no amount shall be disbursed to cover the operating expenses of
the Department and other concemed agencies.

CHAPTER XI
OFFENSES AND PENALTIES

SEC. 67. Harvesting, Gathering and/or Collecting Timber or Other Forest Products
Without Authority. Harvesting, cutting, gathering, collecting, or removing timber or other forest
products from any forestland, or naturally grown timber inside alienable and disposable public
land without authority from the Secretary or found to possess the same without pertinent required
legal documents shall be punished by imprisonment ranging from prision mayor minimum
period to reclusion temporal minimum period and/or a fine equivalent to ten (10) times the value
of the said forest product taken. Provided, That in the case of partnerships, associations or
corporations, the president, managing partner, and general manager shall be held liable, and if
such officer is an alien, he shall, in addition to the penalty, be deported without further
proceedings on the part of the Bureau of Immigration and Deportation. Offenders who are
public officials shall be deemed automatically dismissed from office and permanently
disqualified from holding any elective or appointive position in the government.

If the market value of the said timber or other forest products is more than FIVE
HUNDRED THOUSAND PESOS (Php300,000.00), the offender shall be guilty of Economic
Sabotage and the imposable penalty shall be reclusion perpetua, in addition to the payment of the
fine equivalent to ten (10) times the value of said timber or forest product, and other subsidiary
penalties as prescribed above.

Any person, whether natural or juridical, who shall acquire or possess
logs/flitches/lumber from the economic saboteurs as defined in this Section and/or use the samé
logs/flitches/lumber, in any manner, shall likewise be punished with reclusion perpetua, payment
of fine equivalent to ten (10) times the market value of said logs/flitches/lumber, and the
subsidiary penalties provided herein.


All timber or any forest products cut, gathered, collected, removed, or possessed and all
the conveyances, machinery, equipment, implements, work animals, and tools used in connection
with this violation shall be seized and confiscated in favor of the government.

SEC. 68. When Illegal Cutting is Considered as an Act of Economic Sabotage. Any of
the acts enumerated in the preceding Section when committed by any group, through organized
and systematic manner, for commercial purposes, shall constitute an act of economic sabotage
punishable with reclusion perpetua.

The commission of any of the above prohibited acts by two or more individuals with or
without the aid of any mechanical device shall constitute a prima facie evidence that the act is
organized and systematic.

Any person, whether natural or juridical, who shall buy logs/flitches/lumber from
economic saboteurs as defined in this Section, and/or use the same logs/flitches/lumber in
government infrastructure projects shall, upon conviction, shall also be punished with reclusion
perpetua.

SEC. 69. Use of Megally Cut Timber in Government Infrastructure Projects. The use of
illegally cut naturally grown timber in government infrastructure projects shall be sufficient
cause for the imposition of penalties provided in Section 67 on harvesting of forest products
without authority, and Section 68, on illegal cutting as an economic sabotage, including the
withholding of the payment to the harvesting contractor.

SEC. 70. Damage to Residual Trees. To ensure the sustainability of the natural forests,
adequate number of residual trees and phenotypically superior mother trees shall be marked, to
be retained as part of the managed forests and as the future timber crop, before any harvesting
operation shall commence. Any marked residual tree that is 30% or more damaged during such
operation is subject to a fine equivalent to four (4) times the regular forest charges and reduction
of future allowable harvest to compensate for residual losses.

SEC. 71. 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
ease or permit to graze, upon conviction, shall be penalized with imprisonment of not less than
two (2) years nor more than four (4) years and a fine equivalent to ten times the regular shares
due in addition to confiscation of the livestock and all improvements introduced in the area in
favor ofthe 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. 72. 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 burn farming and related activities for his own private use or for others, any forest land or
grazing land, or in any manner destroys such forestland or part thereof, or causes any damage to
the timber stands and other forest product found therein, or assists, aids or abets another person
to do so, or sets a fire, or negligently permits a fire to be set therein, or refuses lawful orders to
vacate the area when ordered to do so shall, upon conviction, be punished with penalties in the
amount of not less than One Hundred thousand pesos (P100,000.00) nor more than Five hundred
thousand pesos (P500,000.00) and imprisonment of not less than six (6) years and one (1) day
nor more than twelve (12) years for each offense: Provided, That in the case of an offender found
guilty of 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 times the


regular forest charges due on the forest products destroyed without prejudice to payment of the
full cost of rehabilitation of the occupied areas as determined by the Department: Provided,
further, That the maximum of the penalty prescribed herein shall be imposed upon the offender
who repeats the same offense, and double the maximum penalty upon the offender who commits
the same offense for the third time or more.

In all cases, the court shall further order the eviction of the offender from the area
occupied and the forfeiture to the government of all improvements made therein, including all
vehicles, domestic animals and equipment of any kind used in the commission of the offense. I
not suitable for use ky the Department, said improvements, vehicles, domestic animals and
equipment shall be sold at public auction, the proceeds from which shall accrue to the SFEDF.

If the offender is an alien, he shall be deported after serving his sentence and payment of
fines, without any further proceedings. An offender who is a government officer or employee,
shall, in addition to the above penalties, be deemed automatically dismissed from office and
permanently disqualified from holding any elective or appointive position in the government
service.

SEC. 73. legal 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 28 and 29 herein and Section 2 of Presidential Decree No. 953, requiring the planting of
trees in certain places, into other uses including the construction of permanent buildings therein,
or in any manner destroys or causes any damage to the timber stands and other forest product
found therein, or assists, aids or abets another person to do so, or sets a fire, or negligently,
permits a fire to be set therein, upon conviction, shall be penalized by imprisonment of six (6)
years and one (1) day to twelve (12) years or a fine of not less than one hundred thousand
(P100,000.00) nor more than five hundred thousand (P500,000.00), or both fine and
imprisonment at the discretion of the Court. The offender shall likewise be imposed a fine
equivalent to ten times the commercial value of the forest products destroyed without prejudice
to payment of the full cost of rehabilitation of the areas as determined by the Department
Provided, further, That the maximum of the penalty prescribed herein shall be imposed upon the
offender who repeats the same offense, and double the maximum penalty upon the offender who
commits the same offense for the third time or more. The court shall further order the forfeiture
to the government of all improvements made therein, including all vehicles, domestic animals,
and equipment of any kind used in the commission of the offense, If not suitable for use by the
Department, said improvements, vehicles, domestic animals and equipment shall be sold at
public auction, the proceeds from which shall accrue to the SFEDF.

An offender who is a 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. 74, Misdeclaration or Falsification of Reports on Forest Resource Inventory,
Scaling, and Survey by a Government Official or Employee. Any public officer or employee who
knowingly misdeclares or falsifies reports pertaining to forest resource inventory, scaling, survey,
and other similar activity which are contrary to the criteria and standards established in the rules
and regulations promulgated by the Secretary therefore, after an appropriate administrative
proceeding, shall be dismissed from the service with prejudice to re-employment. Upon
conviction by a court of competent jurisdiction, the same public officer or employee shall further
suffer an imprisonment of not less than eight (8) years nor more than twelve (12) years and a fine
of not less than One Hundred Thousand pesos (P100,000.00) nor more than Five Hundred
Thousand pesos (P500,000.00). ‘The inventory, survey, scale, classification, and similar reports
referred herein shall be rendered null and avoid.



SEC. 75. Unlawful Operation of Wood Processing Plants and Downstream Forest-Based
Industries. Any person operating a wood processing plant or downstream forest-based industry
without authority from the Secretary, shall be punished by, upon conviction by a court of
competent jurisdiction, imprisonment of not less than eight (8) years nor more than twelve (12)
years and a fine of not less than Five Hundred Thousand Pesos (P $00,000.00) 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 industr

SEC. 76. Prohibition on the Issuance of Tax Declaration on Forestlands. All tax
declaration issued after 1990 over forestland shall be considered null and void. Tax declaration of
land occupied by Filipinos before 1990 shall be recognized by the government and would be
granted titles on such lands. Any local government official or employee who issues a tax
declaration for any purpose on any part of forestlands, upon conviction, shall be penalized with
imprisonment for a period of not less than four (4) years nor more than eight (8) years and a fine
of not less than P 100,000.00 nor more than P 500,000.00 and perpetual disqualification from
holding an elective or appointive office.

SEC. 77. Unlawful Possession of Implements and Devices Used by Forest Officers. Any
person found possessing or using implements and devices used by forest officers shall be
penalized with imprisonment of not less than eight (8) years nor more than twelve (12) years and
a fine of not less than One Hundred Thousand pesos (P100,000.00) nor more than Five Hundred
Thousand pesos (P500,000.00) in addition to the confiscation of such implements and devices
and the automatic cancellation of any license agreement, license, lease or permit.

Any forest officer who willingly allowed unauthorized person(s) to use these implements
and devices under his care shall be penalized with imprisonment of not less six (6) years and one
(J) day to no more than twelve (12) years and a fine of not less than One hundred thousand pesos
(P100,000.00) nor more than Five hundred thousand pesos (P500,000.00). In addition, the said
forest officer shall be dismissed from the service with prejudice to reinstatement and with
perpetual disqualification from holding an elective or appointive pos

SEC. 78. Unauthorized Introduction of Logging Tools and Equipment Inside
Forestlands. It shall be unlawful for any person or entity to possess, bring, or introduce any
logging tools or equipment inside forestlands without prior authority from the Secretary or his
duly authorized representative. Any person found guilty of illegal possession of said logging
tools or equipment shall be liable to imprisonment of six (6) years and one (1) day to twelve (12)
years or a fine of not less than One hundred thousand pesos (P100,000.00) nor more than Five
hundred thousand pesos (P500,000.00) or both imprisonment and fine at the discretion of the
court, and confiscation of said logging tools and equipment in favor of the government

SEC. 79. 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 (P100,000.00) to Five
hundred thousand pesos (500,000.00) in addition to the payment of the assessed forest charges.
If the offender is a corporation, partnership, or association, the officers and directors thereof
shall be liable.


SEC. 80. 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. 81. Liability of Custodian of Confiscated Forest Products. Any public officer who’
fails to produce the timber or forest products, including tools, conveyances, equipment, and
devices in his custody pursuant to a seizure or confiscation made thereon, or who shall
appropriate, take, misappropriate, or shall permit another person to take such timber forest
products wholly or partially, shall suffer the penalty provided for in malversation of Public Funds
or Property, of the Revised Penal Code. In addition, the said public officer shall be dismissed
from service with prejudice to reinstatement and with perpetual disqualification from holding
any elective or appointive office.

SEC. 82. Citizens Suits. Any citizen may file an appropriate civil, criminal, or
administrative action in the proper court against:
1. Any person who violates or fails to comply with the provisions of the law or its
implementing rules and regulations.
2. The DENR or other implementing agencies with respect to orders, rules and regulations
issued inconsistent with the law.
3. Any public officer who willfully or grossly neglects the performance of an act
specifically enjoined as a duty by this law or its implementing rules and regulations; or
“abuses his authority in the performance of his duty; or in any manner improperly
performs his duties under this law or its implementing rules and regulations. However, no
suit can be filed until after thirty days notice has been given to the public officer or the
alleged violator concerned and no appropriate action has been taken.

CHAPTER XII
ADMINISTRATIVE PROVISIONS

SEC. 83. Development of Mechanisms for Private Sector Participation in Forest
Management. The Secretary is hereby authorized to adopt appropriate mechanisms to strengthen
private sector participation in forest management, which shall include the accreditation of a


national organization of private investors including for profit, non-government organizations and
people’s organizations. The accredited national organization shall assist the Department in the
formulation and review of relevant policies to ensure the contribution of the forestry sector to
national economy and sustainable development. It shall also 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; enhancing various
ecosystems services, and ensuring the maintenance of high conservation values.

SEC. 84. Administrative Authority of the Secretary or his Duly Authorized Representative
to Order Confiscation. In all cases of violations of this Act or other forest laws, rules, and
regulations, the Secretary or his duly authorized representative may order the confiscation of
forest products illegally harvested, cut, gathered, removed or possessed or abandoned, and all
conveyances used either by land, water, or air as well as all machinery, equipment, implements,
and tools used in the commission of the offense and to dispose of the same in accordance with
pertinent laws, regulations, or policies on the matter.

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

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

SEC. 85. 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. 86. Authority of Forest Officers. When in the performance of their official duties,
forest officers or other government officials or employees duly authorized by the Secretary shall
have free entry into areas covered by a contract, agreement, license, lease or permit. Forest
officers are authorized to inspect and to open closed vans suspected to contain illegally
harvested, collected or transported forest product: Provided, That it is done in the presence of the
shipper or consignee or two (2) responsible public officials in the locality. Forest officers are
authorized to administer oath, take acknowledgment in official matters connected with the
functions of their office, or take testimony in official investigations conducted under the
authority of this Act and the implementing rules and regulations issued by the Secretary pursuant
thereof.

Sec. 87. Visitorial Functions. The Secretary or his duly authorized representative shall,
from time to time, investigate, inspect, and examine records and other documents except bank,
records related to the operation of any person granted the privilege, contract, or agreement to
utilize forest resources to determine compliance with the terms and conditions stipulated in the
grant, contract or agreement, this Act, and pertinent laws, rules, and regulations.

SEC. 88. Authority of the Secretary to Revert Lands Needed for Forest Purposes, When
the national interest so demands, the Secretary is hereby authorized through any available legal
remedies to revert lands currently used for agricultural production or other purposes into forest
uses or for biodiversity conservation.


SEC. 89. Protection to Witnesses in Cases Involving Violation of Forestry Laws.
Witnesses to violations of this Act dr 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. 90. Transitory Provisions. 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.

SEC. 91. /mplementing Rules and Regulations. In consultation with the Departments of
Interior and Local Government, Finance, Agriculture, Budget Management, and other relevant
agencies, the Secretary of the DENR shall formulate the rules and regulations to implement the
relevant provisions of this Act

CHAPTER XIII
FINAL PROVISIONS

SEC. 92. Separability Clause. If any provision of this Act is declared unconstitutional,
the validity of the other provisions shall not be affected by such declaration.

SEC. 93. Repealing Clause. Subsections (b), (4), (e), (), (g) and (i) of Section 4 of Act
No. 3915; Republic Act No. 460; Presidential Decrees Numbered 1153, 1515, 1559, 1775 and
1998; 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. Presidential Decree Number 705 is hereby revoked. '

SEC. 94, Effectivity. This Act shall take effect thirty (30) days after its publication in two
(2) national papers of general circulation.