FOURTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
Introduced by Senator Loren Legarda 
EXPLANATORY NOTE 
This bill mandates the development and adoption of a sustainable forest 
management strategy based on rational allocation of forestland uses and promotion of 
land use practices that increase productivity and conserve soil, water, and other 
forestland resources, protection of existing forest resources and conservation of 
biodiversity, rehabilitation or development of denuded areas to expand the forest 
resource base and promote food production activities. 
As of December 31 2004, the Philippines have a total land area of 30,000,000 
hectares, 52.8% of which, or 15,851,473 hectares classified as forest land. The Southern 
Tagalog Region has the biggest area of forest land, with 2,178,871 hectares or 7% of total 
forest land found in said area. The province of Palawan having the biggest area of forest 
land among all provinces in the Philippines, with 1,057,499 hectares or 3.5% of the total 
forest land found in said province. 
As of year 2000, the leading cause of forest disturbance is illegal cutting, with a 
total of 4,920 hectares of land destroyed, the highest incidence since the 1990s. There 
were two major causes in the decline of stocks of forest resources during the period 
1988 to 1994. The country lost resources worth P48.6 billion to harvesting and other 
logging activities, while tb,e conversion of forestland to non-forest use accounted for 
P20.4 billion in losses. Also contributing to the decline in stocks were forest fires, 
accounting for P439.7 million, and the natural death of trees (stand mortality) which 
accounted for P5.9 billion. Demand for agricultural land is also one of the main reasons 
that forests continue to be erased at the rate of 13 million hectares a year. By 2005, 
forests were estimated at 47 % of the total land, from 51% in 1990. From 1990 until 2000, 
the rate of deforestation of the Philippines is 1.4%. The Philippines is the highest among 
the Southeast Asian Nations together with Myanmar with the same rate. 
Clearly, there is therefore a need to ensure that our forests are restored to its old 
grandeur and richness. This bill aims to address such need by implementing a plan for 
sustainable forest management guided by the following principles: 
1. 
Watershed as the basic forestland management unit.- Forestlands 
shall be conserved, developed, and managed utilizing watershed as 
the basic management unit and under the concepts of sustainable 
and multiple-use management, including the conservation of bio- 
diversity; 


2. 
Multi-sectoral participation.- The participation of all sectors of 
society in sustainable forestland conservation, management, and 
development shall be promoted. Equitable sharing of the benefits 
derived from forestlands shaI1 be ersured at all times; 
3. 
Community-based forest management (CBFM) as a principal 
strategy.- 
Vesting access rights and responsibilities to forest 
resident families, local communities, and indigenous peoples to 
undertake the management and development of appropriate 
forestland resources on a sustainable basis shall have precedence 
over other strategies; 
Protection of forestlands and natural resources as priority concern.- 
The protection of forestlands, especially protected areas and the 
natural resources therein shall be given priority concern in order to 
ensurc- environmental stability, enhance biological diversity, 
increase productivity, and provide economic benefits; 
4. 
5. 
Reforestation as a priority measure.- Economic and ecological 
reforestation shall be given priority emphasis in order to 
rehabilitate and restore the usefulness or productivity of denuded 
and degraded forestlands as well as increase the income of 
communities concerned; 
6. 
Security of tenure of stakeholders- In pursuance of the principles 
of sustainable and multi-use forest management and equitable 
access to forest resources, a secured tenure shall be guaranteed to 
stakeholders concerned; and 
7. 
Professionalism in forest service.- A dynamic, professional and 
people-oriented forest service shall be established and fully 
supported by the government. 
There have been &.“vide range of players involved in forest rehabilitation in the 
Philippines in the last few decades including the national government, NGOs, private 
companies, LGUs, local communities and private land owners. Ensuring long-term 
sustainability appears to be one of the biggest challenges facing many of the initiatives. 
This proposed measure aims to ensure that our forests meet the needs of the 
present generation without compromising the ability of the future generations to meet 
their own needs. 
In view of the foregoing, immediate passage of this bill is earnestly requested. 
2 
LOREN LEGARDA 
Senator 


FOURTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
W 
Introduced by Senator Loren Legarda 
AN ACT PROVIDING FOR SUSTAINABLE FOREST MANAGEMENT 
Be if enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
CHAPTER I 
BASIC FORESTRY POLICIES 
SECTION 1. Short Title.- This Act shall be known as the "Sustainable Forest 
Management Act of 20096 &, 
SEC. 2. Basic Policies.- In conformity with the provisions of the Constitution to 
promote the general welfare and social justice in all phases of national development, to 
protect and advance the right of the Filipino people 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 
conservation and management of forests and their resources: 
(a) The specific limits of forestlands after these have been fixed and demarcated 
shall not be altered except through an Act of Congress; 
(b) The use of forest resources shall bear a social function, responsibility, and 
accountability to promote the common good; 
(c) Integrated and sustainable, focusing on the resource and the people, who 
manage, conserve, and benefit from it, shall be the guiding principle in the 
management, protection, conservation, and development of forest resources. 
In carrying out the above policies, the following strategies shall be pursued: 
(i) Watershed as the basic forestland management unit.- Forestlands shall be 
conserved, developed, and managed utilizing watershed as the basic management unit 
and under the concepts of sustainable and multiple-use management, including the 
conservation of bio-diversity; 
(ii) Multi-sectoral participation.- The participation of all sectors of society in 
sustainable forestland conservation, management, and development shall be promoted. 
Equitable sharing of the benefits derived from forestlands shall be ensured at all times; 
(iii) Community-based forest management (CBFM) as a principal strategy.- 
Vesting access rights and responsibilities to forest resident families, local communities, 
and indigenous peoples to undertake the management and development of appropriate 
forestland resources on a sustainable basis shall have precedence over other strategies; 
(iv) Protection of forestlands and natural resources as priority concern.- The 
protection of forestlands, cqpecially protected areas and the natural resources therein 
shall be given priority concern in order to ensure environmental stability, enhance 
biological diversity, increase productivity, and provide economic benefits; 


(v) Reforestation as a priority measure.- Economic and ecological rehestation 
shall be given priority emphasis in order to rehabilitate and restore the usefulness or 
productivity of denuded and degraded forestlands as well as increase the income of 
communities concerned; 
In pursuance of the principles of 
sustainable and multi-use forest management and equitable access to forest resources, a 
secured tenure shall be guaranteed to stakeholders concerned; and 
(vii) Professionalism in forest service.- A dynamic, professional and people- 
oriented forest service shall be established and fully supported by the government. 
(vi) Security of tenure of stakeholders.- 
SEC. 3. Definition ofTems.- As used in this Act, the term: 
(a) "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. 
(b) "Agricultural Lands" shall refer to lands of the public domain which have been 
delimited, classified and declared as such, and are available for disposition under the 
provisions of Commonwealth Act No. 141, as amended, otherwise known as the Public 
Land Act. 
(c) "Ancestral Domain" shall refer to all lands and natural resources occupied or 
possessed by indigenous cultural communities as recognized and delineated' pursuant 
to Republic Act No. 8371 or the Indigenous Peoples Rights Act (IPRA). 
(d) "Ancestral Lands" shall refer to lands recognized and delineated pursuant to 
the IPRA. 
(e) "Annual Allowable Harvest" shall refer to the amount or volume of materials, 
whether of timber, non-timber, or other forest products, authorized by the government 
to be harvested within each year from forests. 
(f) "Biological Diversity or Biodiversity" means the variability among living 
organisms including, infer alia, terrestrial, marine and other aquatic ecosystems and the 
ecological complexes of which they are part. This includes diversity within and 
between species and ecosystems. 
(g) "Brushlands" shall refer to areas characterized by discontinuous cover of 
shrubby and non-wood vegetation including grasses usually as a result of repeated 
clearing and burning of the original forest cover. 
(h) "Buffer Zones" shall refer to areas outside the boundaries of and immediately 
adjacent to protected areas designated as such pursuant to Section 8 of Republic Act No. 
7586 or the National Integrated Protected Areas System (NIPAS) Act that need special 
development control in order to avoid or minimize harm to the protected area. 
(i) "By-Product" shall refer to any part taken from wildlife species such as hides, 
antlers, feathers, fur, internal organs, roots, trunk, branches, leaves, stems, flowers and 
the like. 
(j) "Commercial Logging" shall refer to the cutting or felling of trees for the 
purpose of disposing of the cut or felled logs for monetary profits beyond survival and 
livelihood means. 
(k) "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. 


(1) "Community-Based Forest Management Strategy" shall refer to all xganized 
efforts of government to work with forest resident families and communities inside and 
adjacent to public forestlands with the intent to empower them and entrust to them the 
protection, rehabilitation, management, conservation, and utilization of the forestlands 
and resources therein. 
(m) "Conservation" shall refer to planned protection and management of forests 
and their resources so as to prevent waste and ensure future use. 
(n) "Conveyance" shall refer to any vehicle, vessel, device or animal used in 
gathering or transporting forest products. 
(k) "Co-production Agreement" shall refer to an agreement entered into by and 
between a qualified person and the government for the former to develop, utilize, and 
manage, consistent with the principles of sustainable development, a private land or 
portion of a forestland wherein both parties agree to provide inputs and share the 
products or their equivalent cash value. 
(p) "Critical Watershed" shall refer to that portion of a watershed reservation 
which has been classified as a strict protection zone pursuant to the NIPAS Law and its 
implementing rules and regulations. 
(q) "Department" shall refer to the Department of Environment and Natural 
Resources. 
(r) "Denuded Forestlands" shall refer to forestlands that are devoid of forest tree 
cover. 
(s) "Degraded Forests" shall refer to natural forests containing less than five (5) 
square meters in basal area per hectare of commercial tree species with diameters at 
breasr height or diameter above buttress of less than sixty-five (65) centimeters. An area 
could be considered degraded if it has been cleared of vegetation and could no longer 
support life as habitat for wildlife 
(t) "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. 
(u) "Environmental Compliance Certificate (ECC)" shall refer to the document 
issued by the Department certifying that a proposed project or undertaking will not 
cause a significant negative impact on the environment; that the proponent has 
complied with all the requirements of the Environmental Impact Assessment (EIA) 
System; and that the proponent is committed to implement its approved Environment 
Management Plan found in the Environmental Impact Statement (EIS) or mitigation 
measures identified in the Initial Environmental Examination (IEE). 
(v) "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 uroject or undertaking on the quality of the physical, biological, and social- 
economic environment and designing the appropriate mitigating and enhancement 
measures. 
(r) "Forest" shall refer to land with tree crown cover or equivalent stocking level 
of more than ten percent (10%) and an area of more than half a hectare (0.5 ha.). The 
trees should be able to reach a minimum height of five meters (5m.) at maturity in situ. 
It may consist either of closed forest formations where trees of various storeys and 
undergrowth cover a high proportion of the ground, or open forest formation with a 
continuous vegetation cover in which tree crown cover exceeds cen percent (10%). 
Young natural stands and all plantations established for forestry purposes which have 
yet to reach a crown density of ten percent (10%) or tree height of five meters (5 m.) are 
included under forest, as are areas normally forming part of the forest area which are 
temporarily unstocked as a result of human intervention or natural causes but which 


are expected to revert to forest. Forests include such stand types as dipteroap, pine, 
mossy, molave, beach, and mangrove. For the purpose of this Act, natural forests may 
be classified according to: 1) primary use and management, a forest shall be classified as 
either: a) protection forest, or b) production forest after its most suitable and dominant 
multi-use function has been determined pursuant to this Act. In terms of growth 
formdtion, a forest is classified as either closed forest or open forest. Closed forests have 
trees in the various storeys and the undergrowth that cover a high proportion, greater 
than forty percent (>40%), of the ground and do not have a continuous dense grass 
layer. Closed forests are either managed or unmanaged forests, primary or in advanced 
state of reconstitution, and may have been logged-over one or more times but have kept 
their characteristics of forest stands, possibly with modified structure and composition. 
Open forests have trees that are of discontinuous layer, with a coverage of at least ten 
percent (10%) and less than forty percent (40%). Generally, there is a continuous grass 
layer allowing grazing and spreading of fires. 
(x) "Forest Charges" shall refer to the levy imposed and collected by the 
government on naturally growing timber and other forest products cut, harvested, or 
gathered from the forestlands and from "alienable and disposable" (A&D) lands in 
accordance with Republic Act No. 7161. 
(y) Forest-Based Industries" shall refer to various industries that are dependent on 
raw materials or products derived from forests such as, but not limited to, wood, rattan, 
bamboo, vines, latex, resins, saps, essences, fruits, flowers, or wild flora and fauna. 
(z) "Forest/Forest-Based Community" shall refer to a group of people residing 
inside or immediately adjacent to a particular forestland who are largely or partly 
dependent on the forest resources found therein for their livelihood. 
(aa) "Forestlands" shall refer to lands of the public domain that have been 
classified as such and all unclassified lands of the public domain. 
(bb) "Forest Officer" shall refer to any public officer who by the nature of his 
appointment or the functions of the position to which he is appointed is delegated by 
law and regulations or commissioned by competent authorities to execute, implement 
or enforce the provisions of this Act and other related laws and regulations. 
(cc) "Forest Plantation" shall refer to a forest stand established by planting and/or 
seeding in the process of afforestation and reforestation. The stand is either of 
introduced species (all p1,anted 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. 
(dd) "Forest Resources" shall refer to all resources whether biomass such as plants 
and animals 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. 
(ee) "Grazing Land" shall refer to a part of the forestland designated and 
managed for the raising of livestock. 
(ff) "Indigenous Cultural Community (ICC)" shall refer to a group of people or 
tribe of indigenous Filipinos as defined or described under the IPRA Law. As used in 
this Act, indigenous cultural community is synonymous with indigenous people. 
(gg) "Industrial Forest Management Agreement (IFMA)" shall refer to a 
production-sharing contract entered into by and between the Department and a 
qualified person, whether natural or juridical, wherein the former grants to the latter 
the exclusive right and responsibility to invest in, develop, manage, and protect a 
defined area of the production forestland, including the establishment, management 
and utilization of industrial forest plantation, consistent with the principle of 
sustainable development, primarily to supply the raw material requirements of wood- 
based processing and energy-related industries and wherein both parties share in the 
benefits therefrom. 


(hh) "Industrial Forest Plantation or IFP" shall refer to any tract of either public 
or private lands planted to timber producing species, including rubber and durian trees 
and/or non-timber species such as rattan and bamboo primarily to supply the raw 
material requirements of forest-based industries, energy-generating plants, and related 
industries. 
(ii) "Integrated Forest-based Industry" shall refer to a rationalized forest resource 
industry which is characterized by the complementary presence of timber processing 
plants (sawmills), plywood and veneer manufacturing plants, particle board and 
chipboard plants, pulp and paper plants, and other secondary and tertiary wood 
processing plants, etc. in major forest resource producing regions, provinces or cities of 
the country to ensure optimum efficiency in forest resource utilization. 
(ij) "Integrated Wood Processing Plant" shall refer to a combination of two or more 
up-stream wood-based processing facilities such as sawmills, veneer and plywood 
plants, or pulp and paper plants, and downstream plants of semi- or completely 
manufactured wood products. 
(kk) "Joint Venture Agreement" shall refer to an agreement wherein the 
government and a qualified person organize a joint-venture company, with both parties 
having equity shares, to develop and manage a portion of forestland. Aside from 
earnings on the equity, the Government shall be entitled to a share in the output 
computed at a certain percentage mutually agreed upon by and beneficial to both 
parties. 
(11) "Kaingin" shall refer to areas inside forestlands tilled or being tilled by upland 
dwellers who practice slash-and-burn or shifting cultivation. 
(mm) "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. 
(nn) "Multiple Use" shall refer to the harmonized utilization, development, and 
management of forestlands for the production of two or more products, goods and/or 
services in conformity with the principle of sustainable development. 
(00) "National Park" shall refer to an area of the public domain essentially natural 
wilderness, scenic, or historic in character which has been withdrawn from settlement, 
occupancy, or any form of exploitation except in conformity with an approved 
management plan and set &de exclusively to conserve the area or preserve the scenery, 
the natural and historic objects, wild animals, and plants therein mainly for the purpose 
of biodiversity conservation and/or human enjoyment. 
(pp) "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. 
(qq) "Non-Government Organization (NGO)" shall refer to a non-stock, non- 
profit, and voluntary organization established primwily to provide assistance or 
service. 
(rr) "Permit" shall refer to the privilege granted by the government to a person to 
utilize limited forest and wildlife resources; to undertake specified forestry activity 
inside forestlands which may or may not include any right of possession thereof and 
occupation therein; or to establish and operate a plant or mill for processing timber, 
non-timber, or other forest products. 
(ss) "Person" shall refer to a natural as well as juridical person, including local 
forest communities or indigenous peoples organized in accordance with law or custom. 
(tt) "President" shall refer to the President of the Republic of the Philippines. 
(uu) "Processing Plant or Mill" shall refer to a physical structure, including its 
complement of machinery.rtnd equipment, used in the processing of timber or logs, 


other raw wood, non-timber, or other forest products into semi-finished or finished 
forms. 
(vv) "Production Sharing Agreement" shall refer to a contract between the 
government and a person, whether natural or juridical, wherein both parties exercise 
the right to manage, develop, and utilize forest resources within a specific area of 
production forestlands and period of time with the person providing the financing, 
technology, management, personnel, marketing, and other inputs necessary to 
implement the agreement and both parties sharing the benefits under the terms and 
conditions set forth in said agreement. 
(ww) "Protected Areas" shall refer to areas defined and designated as such 
pursuant to Republic Act No. 7586 or the NIPAS Act. 
(xx) "Reforestation" shall refer to the artificial establishment of forest on lands that 
carried forest before. 
(yy) "Reservation" shall refer to an area of the public domain reserved by law for a 
specific purpose. 
(zz) "Rotation" shall refer to the number of years between the initial establishment 
of a plantation and the time when it is considered ready for harvesting. 
(aaa) "Secondary growth or residual forest" shall refer either to the vegetation in a 
forestland that has been logged-over in the past or whose original forest cover has been 
substantially or totally removed through logging, mining, forest fire, kaingin, or other 
human activity. 
(bbb) "Secretary" shall refer to the Secretary of the Department of Environment 
and Natural Resources. 
(ccc) "Semi-Finished Wood Products" shall refer to wood prodilcts requiring final 
stages of manufacture and/or assembly such as, but not limited to, window 
components, tabletops, veneer and other similar wood product. 
(ddd) "Sustainable Development" means meeting the needs of the present 
generation without compromising the ability of the future generations to meet their 
own needs. 
(eee) "Sustainable Forest Management and Development" shall refer to i k  process 
of conserving, protecting, developing, and utilizing forestland resources to achieve the 
production of desired products or services without impairing the inherent productivity 
of the forest thereby ensuring the continuous flow of these products or services. 
(fff) "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. 
(ggg) "Timber License Agreement or TLA" shall refer to a privilege granted by the 
State to a person to utilize forest resources within a forestland with the right of 
possession and occupation thereof to the exclusion of others except the government, but 
with the corresponding obligation to develop, protect, and rehabilitate the same in 
accordance with the terms and conditions set forth in the said agreement. 
(hhh) "Trade" shall refer to the act of engaging in the exchange, purchase, or sale 
of forest products locally or internationally. 
(5) 
"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. 
(jjj) "Watershed Reservation'' shall refer to a forestland that has been proclaimed 
by law as such, primarily for water production purposes although other compatible 
uses may be allowed by law or by the Secretary under sustainable and muitiple-use 
management concepts. 
(kkk) 'Wildlife" shall refer to wild forms and varieties of flora and fauna. 
(111) "Wood-Based Industries" shall refer to various industries that use wood as the 
principal raw material including but not limited to sawmilling, pulp and paper making, 
and plywood and veneer manufacturing or the upstream wood-based industries, as 


well as the secondary and tertiary wood processing or downstream industry such as 
moldings and furniture manufacturing, among other things. 
CHAPTER I1 
PERMANENT FORESTLANDS 
SEC. 4. Permanent Forestlands.- The permanent forestlands are those lands of 
the public domain classifid and delimited by law as forestlands, areas classified as 
forestlands under the Department’s land classification program, and all iinclassified 
lands of the public domain. 
SEC. 5. Additional Areas to be included as Permanent Forestlands.- The 
following lands, which may be below eighteen percent (18%) in slope, are needed for 
environmental protection and forestry purposes and shall not therefore be classified as 
agricultural lands: 
(a) Areas less than two hundred fifty (250) hectares which are far from or not 
contiguous with any certified agricultural lands; 
(b) Isolated patches of forest of at least five (5) hectares in area with rocky terrain 
or which protect a spring for communal use; 
(c) All mangroves and swamplands, including twenty-meter wide strips thereof 
facing oceans, lakes and other bodies of water not yet classified as alienable and 
disposable lands; 
(d) Ridge tops and plateaus regardless of size found within or surrounded 
wholly or partially by forestlands where headwaters emanate; 
(e) Twenty-meter wide strips of land from the edge of the normal high waterline 
of rivers and streams witlrihannels of at least five (5) meters wide which are not yet 
classified as alienable and disposable; 
(f) Areas needed for other purposes of public interest such as research or 
experimental purposes and others; and, 
(9) Areas considered environmentally critical because of their vulnerability to 
damage from landslides, volcanic eruptions, and other natural causes. 
Owners who have acquired vested rights over lands enumerated above are 
required to implement soil and water conservation measures, in coordination with the 
Department and the appropriate local government unit. An Environmental Compliance 
Certificate (ECC) shall be required in these environmentally critical areas in accordance 
with existing law: Provided, That the Department or the concerned local government 
unit (LGU) shall immediately take the necessary steps to expropriate the said property 
or cause the cancellation or amendment of any titles issued thereon or impose fines 
under any of the following conditions: 
(a) Failure of the owner, after due notice, to implement appropriate soil and 
water conservation; 
(b) Failure of the owner/s to comply with ECC requirements when required; 
(c) The issuance of titles over such areas was accomplished through fraud, deceit, 
(d) When public interest so requires. 
SEC. 6. Sub-Classification of the Permanent Forestlands.- The _. 
permanent 
forestlands shall be sub-classified into the following categories according to primary 
use: 
(a) Protection forestlands.- AI1 areas within the forestlands designated or set 
aside as such shall constitute the protection forests. All mossy and primary/virgin 
foresh and natural beach, mangrove forests, all areas above one thousand (1,000) 
meters above sea level, areas above 50% slope, freshwater, swamps, and marshes, all 
misrepresentations or other anomalies; or 


areas along the bank of rivers and streams, and the shores of the seas and lakes 
throughout their entire length and within a zone of three (3) meters in urban areas, 
twenty (20) meters in agricultural areas, and forty (40) meters in forest areas, along their 
margins which are subject to the easement of public use in the interest of recreation, 
navigation, floatage, fishing and salvage shall also be sub-classified as protection 
forests. 
(b) Production forestlands.- AI1 forestlands not sub-classified as protection 
forestlands defined in this Section shall be sub-classified as production forestlands to be 
devoted to the production of timber and/or non-forest products or the establishment of 
industrial tree plantations, tree farms, communal forests, agroforestry, grazing, or as 
multiple-use forests including water-based energy areas such as but not limited to 
hydro and geothermal reservations: Pruvided, That they shall be managed, developed, 
and utilized in accordance with a Department-approved management plan based on 
sustainable forest management principles: Provided, further, That the department may 
change the sub-classification of specific areas of production forestlands into protection 
forestlands and recommend to Congress their establishment as part of the integrated 
protected area systems in accordance with the NIPAS Act. 
CHAPTER 111 
ADMINISTRATION AND MANAGEMENT OF FORESTLANDS 
SEC. 7. Jurisdiction and Control of Forestlands.- The Department shall be the 
primary agency responsible for the conservation, management, and utilization of all 
forestlands and the unclassified lands of the public domain. In coordination with LGUs 
and other government agedes, it shall ensure that forestlands and unclassified lands of 
the public domain are managed, conserved, developed, utilized, and protected 
consistent with the policies and strategies promulgated in this Act. The utilization and 
development of forestlands and unclassified lands of the public domain including the 
natural resources therein shall be undertaken in accordance with Department-approved 
management plans: Provided, That the management plan for protection forestlands and 
protected areas shall be prepared in accordance with the provisions of the NIPAS Act. 
Records pertaining to the specific limits of forestlands shall be made available to 
the public upon request. Moreover, the Department shall furnish all provincial, 
municipal and city government copies of the maps of permanent forestlands located 
within their respective territorial jurisdictions. 
SEC. 8. Participation of LGUs in Forest Managentent.- 
Pursuant to the 
pertinent provisions of Republic Act. No. 7160 or the Local Government Code, LGUs 
shall share the responsibility in the sustainable management and utilization of forest 
resources within their territorial jurisdiction including those assigned by law to other 
government agencies. 
Subject to vested rights, LGUs and the Department, in 
consultation with other government agencies, local communities, non-government 
organizations, and other sectors shall jointly undertake the preparation of indicative 
forestland use and watershed management plans, particularly the identification of 
multiple-use areas and production forestlands within the territorial jurisdiction of each 
LGU which shall be made an integral component of the latter’s Comprehensive Land 
Use Plan (CLUP). The LGUs shall be consulted on all forestry projects to be 
implemented in their territorial jurisdiction and shall have equitable share of incomes 
derived therefrom. For this purpose, the Department, the Department of Interior and 
Local Government (DILG), the leagues of provinces, cities, municipalities, and 
baraugays shall formulate a joint strategy and program to implement this provision 
within one (1) year from the passage of this Act. 


SEC. 9. Forestlands Under Other Government Agencies.- Forestlands and/or 
portions thereof which have been assigned by law to the administration and 
management of other government agencies for a specific purpose, including those 
devolved to the LGUs prior to the passage of this Act, shall remain under the 
administration and management of these government agencies which shall be 
responsible for their conservation, protection, rehabilitation, and sub-classification into 
protection forestland and the specific purpose for which the entire area has been 
assigned or reserved unless said assignment or reservation is consistent with the use of 
such area as protection forestland. The Secretary or a duly authorized representative 
shall exercise visitorial powers over these forestlands. Moreover, these forestlands shall 
be administered in accordance with a forest management plan, which shall be prepared 
by the government agency or concerned LGU in coordination with the Department and 
local communities and organizations within one year from the effectivity of this Act: 
Provided, That the Department and the LGU or government agency concerned shall 
periodically review, monitor, and evaluate the implementation of the said management 
plan. Provided, firther, That the harvesting of forest resources and building of roads and 
other infrastructure therein shall be undertaken only with the prior approval of the 
Secretary and after compliance with EIS and ECC requirements: Provided finally, That 
the Secretary shall recommend to Congress or the President of the Philippines the 
reversion to the Department of the jurisdiction and control over forestlands that are no 
longer needed nor used for the purpose by which they have been constituted or in case 
the agency or LGU concerned fails to rehabilitate, protect, and conserve the forestland 
resources in accordance with the approved management plan. The Department shall 
determine the use of the reverted forestlands. 
SEC. 10. Forest Resources Within Alienable and Disposable Lands. -'All forest 
resources planted or raised within alienable and disposable lands belong to the owner 
who shall have the right to sell, contract, convey or dispose of the same without the 
necessity of any clearance from the Department. The Department shall encourage and 
provide incentives to landowners of alienable and disposable lands to develop, 
maintain and manage forests on their lands or to develop and maintain a tree plantation 
on such lands. Landowners who register their lands for forestry purposes 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 Section 24 herein, 
on reforestation in private lands: Puovided, That alienable and disposable 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. 
CHAPTER IV 
SUSTLSJNABLE FOREST MANAGEMENT 
SEC. 11. Sustainable Forest Management Planning.- Subject to vested or prior 
rights, the Department, in consultation and coordination with LGUs, other government 
agencies, local communities, non-government organizations, individual and corporate 
entities, private sectors, and other concerned sectors shall, within one (1) year from the 
effectivity of this Act, develop and adopt a sustainable forest management strategy for 
each well-defined watershed or other appropriate forst management unit based on 
criteria, indicators, and standards for sustainable forest management which, at their 
minimum, address the following requirements: 
a) Rational allocation of forestland uses and promotion of land use practices that 
increase productivity and conserve soil, water, and other forestland resources; 
b) Protection of existing forest resources and conservation of biodiversity; 


c) Rehabilitation or development of denuded areas to expand the forest resource 
base and promote food production activities; 
d) Enhancement of the socio-economic well-being of local communities including 
indigenous peoples who are largely dependent on the forest for their livelihood; 
e) Promotion of closer coordination between and among the Department, LGUs, 
other national agencies, non-government organizations, local Communities, the private 
sector and other entities in the sustainable management of forestlands; 
f) Adoption of community-based forest management as a principal strategy in 
the management of forestlands and resources; and 
g) Integration of forest management plans at the Barangay or community level 
to the CLUPs of cities and municipalities, including the adoption of effective impact 
monitoring system of forest management programs. 
SEC. 12. Watershed Management Stmtegy.- The Department shall adopt a 
Watershed and Ecosystems Planning Framework in Environment and Natural 
Resources Management. The strategy for improved watershed resources management 
shall be demand-driven, community-based, and multiple and sustainable use 
considering national priorities and concerns of local stakeholders. 
Watershed 
management programs shall be guided by ecological, socio-cultural, econnmic, and 
institutional sustainability principles. A National Watershed Information System shall 
be developed to guide policy formulation, program development, and implementation 
of watershed management initiatives. 
SEC. 13. Priority Watersheds.- A system of prioritization of watersheds shall be 
pursued considering the following: a) water supply for domestic, irrigation, power, 
industriai, and commercial use; b) contribution to the economy; c) biodiversity and 
environmental enhancement; d) cultural and historical value; and 
e) effect on 
downstream areas. 
SEC. 14. Forest Resource Database and Monitoring System. - The Department 
shall establish a forestland resource database which shall consist of a comprehensive 
up-to-date information on the physical, social, economic, biological, and environmental 
components of the country's forestlands and shall include a log control monitoring or 
timber identification system to enable the Department and its field offices to track the 
movement or transfer of timber and other forest products from a forestland source to 
their end users. The Department shall conduct and/or update forest resource inventory 
at least once every five (5) years to ensure effective management. 
SEC. 15. Environmental Impact Assessment, Monitoring, and Accounting.- All 
new critical projects to be implemented in forestlands such as harvesting, grazing and 
other special uses, mineral prospecting and exploration, road, infrastructure, and mill 
construction shall be subject to Environmental Impact Assessment (EIA) in accordance 
with Presidential Decree No. 1151 or the Philippine Environmental Policy, and 
Presidential Decree No. 1586, Establishing an Environmental Impact Statement System. 
The Department shall design and implement a system of environmental monitoring and 
evaluation system as well as environmental and natural resources accounting for 
various forestry management plans and projects. 
CHAPTER V 
COMMUNITY-BASED FOREST MANAGEMENT 
SEC. 16. Communiip-Based Forest Management Strategy (CBFMSL- Whenever 
they are present, forest resident families, communities, and indigenous peoples whose 


lives, cultures, and general well-being are intimately linked with the forests, shall be 
given priority access to forest resources and shall be entrusted with the responsibility to 
protect, manage, develop, and utilize said forest resources under the principle of 
stewardship. The Department shall develop policies, criteria, guidelines, and tenurial 
instruments that will simplify, facilitate, and allow access of forest resident families, 
local communities, and indigenous peoples to forestland resources. The Department 
shall furthermore develop policies, guidelines and incentives for private sector 
investors to enter into mutually beneficial relationships with forest-based communities 
in pursuit of CBFMS on a sustainable forest management basis. 
SEC. 17. Areas Availablefor CBFM. - Subject to vested or prior rights, CBFM 
may be implemented in all appropriate public forestlands, including ancestral domains 
of ICCs. The Secretary may also allow CBFM in watershed reservations to promote 
their protection and rehabilitation: Provided, however, That the land-use practices and 
activities therein are in accordance with a management plan duly approved by the 
Secretary and would not intiuce severe soil erosion and surface run-off: Provided, fnrther, 
That no CBFM agreement shall be issued over areas or portions thereof covered by 
ancestral domain titles without the prior informed consent of the concerned indigenous 
cultural community. 
SEC. 18. Community Resource Management in CBFM Areas. - The management 
of forestland resources in CBFM areas shall be embodied in a community resource 
management plan, which shall contain the community's vision, aspirations, and 
strategies in the management of forestland resources. The Department, LGUs, other 
government agencies, non-government organizations, private companies, individuals, 
and other sectors concerned shall provide these communities with appropriate long- 
term security of tenure, technical, managerial and financial assistance, training; and 
other assistance, as the case may be, to empower them to manage and benefit from the 
forestland resources on a sustainable basis. 
SEC. 19. Qualified Participants, Organized forest communities shall be given 
priority to participate in the CBFM program. 
Indigenous peoples shall also be 
encouraged to actively participate in the implementation of CBFM activities in 
recognition of their rights to their ancestral domains and lands. 
Organizations eligible to participate in CBFM shall have the following 
qualifications: 
a. Members shall be Filipino citizens; and 
b. Members shall be any of the following: 
1. Actually tilling portions of the area to be awarded; 
2. Traditionally utilizing the resource for all or a substantial portion of 
3. Actually residing within or adjacent to the areas to be awarded. 
their livelihood; or 
SEC. 20. Recognition and Management ofAncestra1 Domains. - The recognition, 
ownership, and management of ancestral lands and domains shall be governed by the 
provisions of the IPRA but any project of a holder of a 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, Establishing an Environmental Impact Statement System, and this Act. 
The National Commission' on Indigenous Peoples (NCIP) shall coordinate with the 


Department in providing assistance to the indigenous peoples in the sustainable 
management of forest resources within ancestral lands and domains. 
CHAPTER VI 
REFORESTATION AND RESTORATION PROGRAM 
SEC. 21. Reforestation in Protection Forestlands. - The reforestation of all 
critical, denuded, and degraded forests within protection forestland not otherwise 
covered by the CBFM program shall be given top priority and shall be vigorously 
pursued by the Department consistent with the NIPAS Act and the strategies and 
management plans therefor. The use of endemic species in the restoration program for 
protection forests shall be given primary consideration to enhance the biological 
diversity of the area. 
The Department, in coordination with LGUs, other government agencies, NGOs, 
local residents and communities, and other sectors concerned, shall identify and 
prioritize forestlands to be reforested. An accelerated reforestation program in such 
identified priority protection forestlands shall be undertaken to raise the forest cover 
therein to at least fifty percent (50%) within five (5) years, and to at least eighty percent 
(80%) within ten (10) years from the effectivity of this Act. The Department shall allot 
funds to effectively accomplish reforestation either by its own or through contract in 
protection forestland. The Department or other agencies responsible for reforestation 
shall give priority to local communities in the granting of technical and financial 
assistance for reforestation activities. No commercial cutting, harvesting, or logging of 
timber or gathering of forest products shall be allowed in protection forestlands. 
SEC. 22. 
Reforestation or Forest Plantation Development in Production 
Forestlands.- In accordance with Section 40 herein, on modes of forest management 
agreement, the State through the Department may enter into joint venture, co- 
production, or production sharing agreement with qualified forest community 
organizations, local government units, government-owned or controlled corporations, 
private companies, individuals, and other interested parties Zoncerned in the 
development of forest plantations in production forestlands: Provided, ho-cciever, That 
endangered forests found inside production forestlands, as categorized in Section 6(b), 
herein and residual forests, unless in degraded condition as determined by the 
Deparkment, shall not be converted into forest plantations. 
SEC. 23. 
Reforestation in Forestlands under the Jurisdiction sf Other 
Government Agencies.- Government agencies and institutions having management 
control over forestlands pursuant to a law or grant shall be responsible for the 
reforestation of denuded and degraded portions of such forestlands. The reforestation 
program of these agencies shall aim to increase the vegetation of the degraded areas, to 
be identified jointly by the Department and agency concerned, by fifty percent (50%) 
within the first five (5) years and at least eighty percent (80%) within ten (10) years from 
the effectivity of this Act: The Department shall provide the reforestation plan, ratio of 
forested areas at any given time, and technical assistance upon request by the concerned 
agencies. Failure to reforest denuded and/ or degraded forestland identified in the 
reforestation plan within the period herein prescribed shall be sufficient ground to 
request for reversion of the said forestlands to the jurisdiction and control of the 
Department. Provided, however, That in areas where CBFMS shall Le implemented or 
where there are existing facilities for basic services such as water and power as allowed 
by the Department pursuant to Section 40 hereof, the completion of the reforestation 
program shall be subject to the conditions provided in the tenurial document to be 


awarded by the Department and the agency concerned to the participating local 
community or individual or in the Forest Management Agreement of contractors 
operating such facilities for basic services, as approved by the Department. 
SEC. 24. Reforestation in Alienable and Disposable Lands or Private Lands.- 
Reforestation or the establishment of tree farms or forest plantations in private lands 
shall be encouraged: Provided, That such private lands and other alienable and 
disposable lands are not prime agricultural lands as determined or certified by the 
Department of Agriculture (DA). The private landowner(s) shall also be entitled to the 
incentives provided for under Section 25 herein, particularly subsections (a), (b), (c), (d), 
and (e): Provided, That such private €orest plantations are duly registered with the 
Department. 
SEC. 25. 
Incentives.- To encourage qualified persons to engage in forest 
plantation activities, the following incentives shall be granted, in addition to those 
already provided by existing laws: 
a. The agreement holder shall not be subject to any obligation prescribed or 
arising out of the provisions of the National Internal Revenue Code on withholding tax 
at source on interest paid on a loan/s incurred for the development of forest plantation; 
b. Amounts expended by the agreement holder in the development and 
operation of a forest plantation prior to the commercial harvest shall be regarded as 
ordinary and necessary expnses or as capital expenditure; 
c. The Board of Investments (BOI) shall classify forest plantations as pioneer and 
preferred areas of investment under its annual priority plan subject to the rules and 
regulations of the said Board; 
d. The agreement holder shall be given priority to access credit assistance being 
granted by Government-owned, -controlled and/ or -supported financial institutions; 
e. Upon the premature termination of the agreement at no fault of the holder, all 
depreciable permanent and semi-permanent improvements such as roads, buildings, 
and nurseries including the planted and standing trees and other forest crops 
introduced and to be retained in the area shall be properly evaluated and the holder 
shall be entitled to a fair compensation thereof, the amount of which shall be mutually 
agreed upon by both the Department and the agreement holder, and in case of 
disagreement between them, by arbitration through a mutually acceptable and 
impartial third party adjudicator; 
f. No contract or agreement shall be terminated except for cause or for reason of 
public interest and only after due process; and 
g. The agreement holder has the right to transfer, contract, sell, or convey his 
rights to any qualified person following the guidelines to be issued by the Secretary. 
The Secretary may provide or recommend to the President or to Congress other 
incentives in addition to those granted herein and in existing laws in order to promote 
reforestation and the establishment of forest plantations. 
SEC. 26. Voluntay Offer to Reforest.- Private landowners, whether natural or 
juridical persons, may participate in reforestation and plantation development or 
similar programs of the Department, with the landowner contributing his land and the 
Department furnishing funds to reforest the area on a co-production agreement: 
Provided, That the property shall be exclusively devoted to the planting of forest species 
for at least one (1) rotation, which undertaking shall be annotated at the back of the title 
of the property: Provided, firfheu, That prime agricultural lands as determined or 
certified by the DA shall not be the subject of a voluntary offer to reforest. 


CHAPTER VI1 
URBAN FORESTRY 
SEC. 27. Establishment of City or Municipal Parks or Communal Forest.- Every 
city or municipality shall establish a city or municipal park or communal iorest and 
shall include in its yearly budget the necessary funds for its establishment and 
maintenance. Upon request by a city or municipality concerned, the Department shall 
set aside an appropriate area of the public forestlands as city or municipal park or 
communal forest and shall provide technical assistance to the local government 
concerned in the development of the park or communal forest. 
SEC. 28. Establishment of Tree Parks in Subdivision and Tree Planting on 
Roadsides.- Every subdivision project to be developed after the passage of this Act 
shall include the establishment of a tree park of not less than fifty percent (50%) of the 
required total open spaces as provided in Section 2 of Presidential Decree No. 953, 
requiring the planting of trees in certain places. Guidelines for the establishment of tree 
parks within a subdivision shall be prepared jointly by the subdivision owner 
concerned, the Housing and Land Use Regulatory Board (HLURF) and the Department. 
The subdivision owner shall provide the funds for this purpose. For every major public 
road or irrigation construction project, the Department of Public Works and Highways 
(DPWH) shall include the planting and maintenance of trees along the road/highway 
or irrigation canals as landscaped rest areas every twenty-five (25) kilometers thereof 
and shall provide adequate funds for this purpose. Each city and municipality shall 
also allocate adequate funds for the planting, care, and maintenance of trees or 
perennial shrubs in "greenbelts" or "green spaces" such as road/street sides, center 
islands, etc. 
CHAPTER VI11 
FOREST PROTECTION 
SEC. 29. 
Commercial Logging Ban.- There shall be a permanent ban on 
commercial logging activities in all protection forestlands defined, categorized, and sub- 
classified in Section 6(a) herein. No licenses, permits, or agreements to cut any timber 
therein shall be issued. 
Protection forestlands found inside an agreement or licensed area shall be 
excluded from any logging operation and the holder of the agreement or license shall 
establish a buffer zone and. delineate their boundaries with the production forestlands, 
marking the same with concrete monuments, road, or infrastructure, or any other 
visible, permanent, and practicable signs. Pending the constitution of a Protected Area 
Management Board (PAMF) pursuant to the NIPAS Act, the agreement- or license- 
holders shall protect and conserve such protection forestland following a plan 
approved by the Department. The agreement- or license-holder concerned shall be 
accountable for the destruction of such protection forestlands that did not result from 
force majeure, and such destruction shall serve as basis, in addition to the other 
violations enumerated in Section 85 hereof, transitory provision, for the termination of 
the agreement, license, or permit, and the filing of proper charges under the NIPAS Act 
and pertinent forestry laws, rules and regulations. In the absence of a contractor or 
agreement holder over such production forestlands, the delineation of said boundary 
shall be undertaken and prioritized by the Department. 
To ensure the conservation and sustainable use of forest resources, holders of 
timber licenses, leases, and permits shall submit to the Department an Integrated 
Operations Plan (IOP) containing strict environmental guidelines such as ECC 
compliance. All forest development activities such as logging, reforestation, timber 


stand improvement, forest protection, and delivery of community service within an 
area covered by timber concessions shall be consolidated under the IOP, which shall be 
prepared by or under the supervision of an accredited private registered forester whose 
signature and dry seal shall appear in the plan and the supporting documents 
submitted for the purpose. 
Upon its expiration or termination for cause, no extension shall be made on any 
TLA and the area covered by the agreement shall be sub-classified as protection 
forestland after the Department had excluded degraded areas that may be subject of a 
reforestation project. 
SEC. 30. Assistance of Law Enforcement Agencies.- The Department may call 
upon law enforcement agencies and instrumentalities of the Government such as the 
Philippine National Police (PNP), the Armed Forces of the Philippines (AFP), and the 
National Bureau of Investigation (NBI) for the enforcement of the logging ban in all 
protection forestlands and for the protection and conservation of forests. The assistance 
of LGUs, NGOs, citizen groups, and community organizations may also be utilized for 
the same purpose. 
The Secretary of Jwlice shall designate in every city and province a special 
prosecutor who shall immediately file charges against forest violators to ensure their 
speedy prosecution. 
SEC. 31. Role of LGUs and Local Residents.- It shall be incumbent upon LGUs 
concerned to render assistance in protecting and conserving forestlands within their 
respective territorial jurisdiction. Qualified local residents shall be deputized by the 
Department to assist in the drive against illegal logging, kaingin-making and forestland 
occupation. These deputized residents shall likewise be authorized to arrest forest 
violators within their communities subject to existing laws and regulations on arrest 
and detention. 
SEC. 32. Prevention of Forest Fires and Control of Forest Pests and Diseases.- 
In collaboration with concerned LGUs, the Department shall formulate and implement 
a fire prevention and control program, providing incentives to LGUs, community 
organizations, or individuals who participate in preventing and controlling forest or 
grass fire. 
The Department shall likewise formulate and implement a national integrated 
forest pest and disease management program including quarantine procedures for 
imported seeds, plants, aid plant products as well as wildlife to prevent or control 
forest or wildlife pests and diseases. 
SEC. 33. Information and Rewards System.- The Department shall establish an 
information and rewards system as part of the community’s participation in the 
protection of forest resources. The rewards shall be payable immediately upon the 
establishment of prima facie proof of violation. When an information given leads to the 
seizure of logs or timber and other forest product and results in a conviction, the 
inforiner shall also be entitled to twenty percent (20%) of the gross value of the 
recovered or seized forest resource. 
CHAPTER IX 
FORESTRY RESEARCH, EDUCATION, TRAINING 
AND EXTENSION 
SEC. 34. 
Research and Technology Development Transfer.- Research and 
technology development transfer shall be strengthened to support sustainable 
management of forest resources. The Department, the Department of Science and 


Technology (DOST), the Commission on Higher Education (CHED), and the alleges of 
forestry of State universities shall, within one (1) year from the passage of this Act, 
prepare a comprehensive national forestry and environmental research and technology 
development and transfer program in furtherance of sustainable forest management 
which shall be implemented, monitored, and reviewed in accordance with existing 
research management systems. Adequate and sustainable funds to implement research 
and technology development plans and transfer program shall be provided by each of 
the aforementioned agencies and institutions under the General Appropriations Act. 
SEC. 35. Public Information, Education and Advocacy Campaign.- With the 
support from LGUs, NGOs, media and other organizations, the Department, the 
Philippine Information Agency (PIA), the Department of Education (DepEd), CHED, 
State-owned and private universities and colleges shall formulate and implement a 
nationwide program for sustained public information and advocacy campaign for forest 
and natural resources conservation and sustainable forest development and 
management. The DepEd shall include subjects on forest and natural resources in the 
curricula for elementary and high school education. The CHED shall likewise include 
ecology and environment courses in the general education curricula. Congress shall 
allocate funds to the Department for the purpose of coordinating a systematic Lampaign 
to promote community ecological awareness, including the preparation of 
informational and educational materials therefor. 
SEC. 36. Fomal Foresty Education.- The CHED, in collaboration with the 
Department, the Board of Examiners for Foresters of the Professional Regulations 
Commission (PRC), and the duly accredited national professional foresters organization 
shall actively pursue the rationalization of formal forestry education and the 
establishment of centers of excellence in forestry and environmental education to ensure 
high quality manpower output to meet the needs of the forestry sector. 
SEC. 37. 
Continuing Education ON Foresty.- 
A non-formal program of 
continuing education shall be established to maintain the growth of the forestry 
profession. 
The PRC Board of Examiners for Foresters and the Civil Service 
Commission (CSC) shall provide the guidelines for a program in continuing education 
in forestry. In cooperation with academic institutions, the Department shall develop the 
infrastructures to institutionalize non-formal continuing education for the forestry 
sector. 
SEC. 38. Tvaining Centevs- In coordination with TESDA, DepEd, CHED and 
State universities and colleges (SUCs), the Department shall establish and 
institutionalize a network of training centers in strategic parts of the country to provide 
regular and up-to-date training on the various aspects of sustainable forest 
management, development, and utilization to forest officers, LGUs, NGOs, local 
communities, and indigenous peoples. Furthermore, the Department shall ensure that 
personnel appointed to critical and sensitive positions undergo training to prepare them 
to discharge their duties and responsibilities professionally, efficiently and eff&tively. 
SEC. 39. Foresty Development Center.- The Forestry Development Center 
(FDC) based in the College of Forestry and Natural Resources, University of the 
Philippines at Los BaAos, shall continue to serve as the primary policy research and 
development center for forestry and natural resources management. The FDC shall 
perform its functions in close coordination with the Department and other policy 
research institutions in thecountry. It shall assist the Department in the formulation, 


review, and evaluation of proposed and existing policies on forestry and natural 
resources management. 
CHAPTER X 
DISPOSITION AND UTILIZATION OF FOREST RESOURCES 
SEC. 40. 
Modes of Forest Management Agreement.- The development, 
utilization, and management of forestlands and/or forest resources shall be undertaken 
under the full control and supervision of the State through the Department. The State 
may directly undertake such activities or it may enter into co-production, joint venture 
or production sharing agreement with qualified Filipino citizens or corporations or 
associations, subject to relevant laws, rules and regulations: Provided, That interested 
local communities and indigenous peoples through their organized and duly 
recognized associations shall be given priority in the grant of appropriate tenurial 
instruments implementing the said agreements. Such tenurial instruments and/ or 
agreements shall have a duration of twenty-five (25) years, renewable fcr another 
twenty-five (25) years, under such terms and conditions as may be provided by the 
Secretary: Provided, further, That such tenurial instruments and/or agreements may not 
be terminated except for cause or if public interest so requires. 
Current valid and subsisting licenses, contracts, or agreements granted by the 
government for the development, management, and utilization of forest resources shall 
be allowed to continue under the same terms and conditions until their expiry, or prior 
to their expiry shall be allowed to be converted into any mode authorized herein under 
the guidelines promulgated by the Secretary: Provided, That no such conversion shall be 
allowed in protection forestlands as defined in Section 6 herein, on sub-classification of 
forestlands. 
The Department is hereby authorized to formulate rules and regulations 
covering the relevant terms and conditions thereof including the determination and 
collection of the government share, subject to the approval of Congress. 
For watersheds and other areas where existing facilities for basic services such as 
water and power are located, the Department may enter into a forest martagement 
agreement with the service contractor in the area. Such agreement shall have a duration 
of twenty-five (25) years, renewable for another twenty-five (25) years, under such 
terms and conditions agreed upon by both parties: Provided, That such agreement may 
not be terminated except for cause or if public interest so requires or upon mutual 
agreement by the parties. 
SEC. 41. Transfer.- No holder of a co-production, joint venture, or production 
sharing agreement or contract shall sub-contract, transfer, exchange, sell or convey the 
same or any of his right or interests therein without a written authority from the 
Secretary. Moreover, no transfer shall be authorized unless the agreement or contract 
has been in existence and active for at least three consecutive years from issuance 
thereof: Provided, That the transferor has faithfully complied with the terms and 
conditions of the said agreement or contract; the transferee has all the qualifications and 
none of the disqualificatio-ns to hold the same; and the transferee shall assume the 
obligations of the transferor. Failure to comply with these conditions shaIl be sufficient 
cause for the cancellation of the agreement or contract. 
SEC. 42. Non-timber forest Products.- Rattan, bamboos, vines, herbs, exudates 
and other non-timber forest products are integral parts of the forest ecosystem. The 


establishment of plantations of non-timber producing species shall be encouraged and 
supported. The development, management and utilization of non-timber forest 
products shall be allowed in accordance with the guidelines to be promulgated by the 
Department. However, in granting permits to harvest or utilize non-timber forest 
products in their natural or original state from production forestlands, priority shall be 
given to forest resident families, local communities, and indigenous peoples living 
nearest the subject forestlands. 
SEC. 43. Grazing .-. The Department shall identify and delimit areas in the 
production forestland suitable for grazing purposes: Provided, That no forestland fifty 
percent (50%) in slope or over may be utilized for grazing purposes: Provided, further, 
That existing pasture lease agreements or forestland grazing lease agreements shall be 
allowed to continue under the same terms and conditions until their expiry: Provided, 
finally, That abandoned or idle, expired, or cancelled grazing or pasture lands shall be 
subject to land use capability assessment to determine their best use or combination of 
uses. No new grazing or pasture permit, lease, or conkact shall be issued, nor existing 
ones allowed to continue unless covered by existing rules and regulations governing 
the Philippine EIS System. 
SEC. 44. Mining and Power Generation Operations in Forestlands.- Forest 
resources inside mineral lands are under the Department's jurisdiction, and their 
management and utilization are subject to the provisions of this Act. Power generation 
and small-scale mining operations in forestlands may be allowed subject to existing 
rules and regulations governing the Philippine EIS System. 
SEC. 45. Roads and Other Infrastructuves.- Roads and other infrastructure 
including the developmezt of mineral reservations and energy resources inside 
forestlands shall be constructed with the least impairment to the resource values found 
in such forestlands. Government agencies and their contractors undertaking the 
construction of roads, bridges, communication and other infrastructure facilities and 
installations inside forestlands shall seek prior authority from the Department and shall 
comply with existing rules and regulations governing the Philippine EIS System. 
CHAPTER XI 
FOREST-BASED INDUSTRIES 
SEC. 46. Establishment and Operations offorest-Based 1ndnstries.- 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. 47. 
Incentives for Forest-Based Industries.- 
To enable forest-based 
industries to be more efficient, competitive, and economically viable, the following 
incentives are hereby granted in addition to those already provided by existing laws: 
a. All processing plazts or mills shall be assured of their supply of raw materials, 
preferably but not exclusively from local sources; 
b. All processing plants or mills shall be granted operating permits for five (5) 
years renewable 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; and 
c. The Department shall promote and strengthen the linkages among corporate, 
family-based, and community-based industries. 


The Department may provide on its own or propose to the President or to 
Congress, other incentives to encourage the establishment and development of 
integrated forest-based, particularly wood-based pIants. Warranties to and agreements 
with existing integrated forest-based plants to ensure the availability of raw materials 
shall be automatically extended for as long as such integrated plants are operating. 
Agreements or licenses over forest areas granted to wood-based plants shall be 
converted into any mode authorized in this Act. Expansion in capacity of wood-based 
plants shall be encouraged and the same shall be given priority access to production 
forestlands and other areas available for development as source of raw materials. Any 
order suspending or canceling a contract or permit pertaining to the development and 
operation of an integrated forest-based or wood-based plant including its access to 
production forestlands shall take effect only upon prior consultation with the 
Congressional Oversight Committee established pursuant to this Act. 
SEC. 48. Export and Sale of LocalZy Produced Wood Products.- Logs derived 
from natural grown trees of whatever species cut, gathered, or removed from the local 
natural forest and raw or rough lumber manufactured from such logs shall not be 
exported. Only finished and semi-finished lumber products, wood manufactures, 
wood panels, and other finished wood products from such logs may be exported. 
Logs, lumber and other finished products from forest plantations shall be 
exported only under such guidelines as the Secretary may promulgate. 
No person shall sell OT offer for sale any log, lumber, veneer, plywood or other 
manufactured wood products in the internationa1 or domestic market without 
complying with the grading rules established or to be established by the government. 
Failure to adhere to the established grading rules and standards, or any act of 
falsification on the volume of logs, lumber, veneer, plywood or other wood products 
sold in the international or domestic market shall be sufficient cause for the cwcellation 
of export license, wood processing permit, or other license or permit authorizing the 
manufacture or sale of such products. 
SEC. 49. 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 authorization of the Secretary and to the tariff and duties under 
Presidential Decree No.1464 as well as 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: Pvovided, That the grading 
rules and standards therefor are complied with, otherwise the sanctions in Section 48 
hereof shall be imposed. 
CHAPTER XI1 
FOREST CHARGES, FEES AND RENTALS 
SEC. 50. 
Fees and Rentals for the Utilization, Exploitation, Occupation, 
Possession ofi and Activities within Forestlands- Subject to the approval of Congress, 
the Department shall prescribe appropriate fees and rentals for the different kinds of 
utilization, exploitation, occupation, possession, or activities within forestlands: 
Provided, That payment of or collection of such fees and rentals shall be waived for 
parties/industries mandated by law to manage, conserve, develop and protect 
forestlands and forest resources found therein, except administrative fees for the filing 
and ixocessing of applications for the issuance and renewal of licenses, permits, and 
agreements: Provided, fiarther, That watershed administrators and/or service contractors 
that have forest management agreements with the Department as provided for under 


Section 40 of this Act shall.also be entitled to the waiver of fees, except administrative 
fees. 
The Department shall recommend to Congress appropriate and equitable fees for 
the use of water and forest for power generation, irrigation, domestic and kidustrial, 
and 
for carbon 
sequestration and 
biodiversity 
benefits respectively, by 
parties/industries concerned. 
SEC. 51. Forest Charges.- There shall be collected charges on each cubic meter of 
timber cut in forestland, whether belonging to the first, second, third or fourth group, 
twenty-five percent (25%) of the actual FOB market price based on species and grading: 
Provided, korciever, That, in the case of pulpwood and matchwood cut in forestland, 
forest charges on each cubic meter shall be ten percent (10%) of the actual FOB market 
price. 
SEC. 52. Charges on Firewood, Branches, and Other Recoverable Wood Wastes 
of Timber.- Except for all mangrove species whose cutting shall be banned, there shall 
be collected forest charges of Ten pesos (10.00) on each cubic meter of firewood cut in 
forestland, branches and other recoverable wood wastes of timber, such as timber ends, 
tops and stumps, when used as raw materials for the manufacture of finished products, 
Only third or fourth group wood can be taken for firewood. However, if jointly 
authorized by the Secretaries of both the Department of Environment aid Natural 
Resources and the Department of Agriculture, first and second group woods may be 
removed for firewood purposes from land which is more valuable for agricultural than 
for forest purposes. 
SEC. 53. Charges on Minor Forest Products.- 
All other forest products of 
forestland which are not covered by the preceding section shall be exempt from any or 
all forest charges, except rattans, gums and resins, beeswax, gutapercha, almaciga resin 
and bamboo which shall be charged at ten percent (10%) of the actual FOB market price. 
SEC. 54. Determination of Mavket Price of Forest Products.- The actual FOB 
market price of forest products shall be justly determined once a year by the Secretary: 
Provided, That he or she shall cause the creation of a committee to be composed of 
representatives of the Department, the National Economic and Development Authority, 
the Department of Trade and Industry, the Bureau of Internal Revenue and the wood 
and furniture industry and consumers sectors which shall formulate the criteria and/or 
guidelines in the determination of the actual FOB market price to be used as the basis 
for the assessment of the ad valorem tax, taking into consideration production cost 
(developing cost, contingencies, and miscellaneous cost), species and grade oi timber, 
government share, reforestation, tariff duties, taxes, risk involved, and a reasonable 
margin of profit for domestic and export market prices for wood and wood products. 
These forest charges shall be applied to naturally growing timber and forest 
products gathered within public forestlands, alienable and disposable lands, and 
private lands. Forest charges collected shall be in lieu of the administrative charge on 
environment and other fees and charges imposed thereon: Provided, That planted trees 
and other forest products harvested from industrial tree plantations and private lands 
covered by existing tiller or by approved land application are exempted from payment 
of forest charges. 
The duties incident to the measuring of forest products and the invoicing and 
collection of the charges thereon shall be discharged by the Forest Management Bureau 


under regulations of the Secretary, who shall likewise provide for the time, manner, and 
place of payment of such charges. 
SEC. 55. 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. 
CHAPTER XI11 
APPROPRIATIONS AND FINANCIAL SUPPORT 
SEC. 56. Appropriations.- The Secretary of the Department of Environment and 
Natural Resources shall include in the Department's program and issue such rules and 
regulations for the implementation of the provisions of this Act, the initial funding of 
which shall be charged against the current year's appropriations of the Department and 
thereafter included in the annual General Appropriations Act. For local government 
units, the funding requirements shall be taken from their internal revenue allotment 
(IRA) and other LGU income. 
Sustainable Foresty Development Fund.- A Sustainable Forestry 
Development Fund (SFDF) to be administered by the Department as a special account 
in the national treasury is'hereby established to provide sustainable funds for forest 
protection, reforestation, and forest development and management, including 
rehabilitation and preservation of watershed areas, CBFM program, information and 
educational campaign as well as scholarship programs and policy research, At least 
thirty percent (30%) of the forest charges and government share in all products 
removed from the forestIands, rentals, proceeds from sales of confiscated forest 
products including conveyances, fines and penalties, and administrative fees collected 
shall be set aside for the buildup of the SFDF. The fund may be augmented by grants, 
dona?ions, endowment from various sources, domestic or foreign for purposes related 
to their functions. 
Disbursements from the fund shall be subject to the usual accounting and 
budgeting rules and regulations: Provided, That no amount shall be disbursed to cover 
the operating expenses of the Department and other concerned agencies. 
A trust fund committee, composed of the Secretary as Chair and the Secretary of 
the Department of Budget and Management, the DILG Secretary, and the National 
Treasurer or their representatives shall sit as members and manage the SFDF, with the 
Forest Management Bureau as secretariat. 
SEC. 57. 
CHAPTER XIV 
CRIMINAL OFFENSES AND PENALTIES 
SEC. 58. Harvesting, Gathering and/or Collecting Timber or Other Forest 
Products Without Authority.- Any person who shall harvest, cut, gather, collect, or 
remove timber or other forest products from any forestland, or timber from natural 
forest inside alienable and disposable public land except as provided in Section 10 
hereof, on forest resources in alienable and disposable Imds, without authority from the 
Secretary or found to possess the same without pertinent required legal documents 
shall be punished by imprisonment ranging from prision mayor minimum period to 
reclusion temporal minimum period and/or a fine equivalent to ten (10) times the value 
of the said forest product but not less than fifty thousand pesos (I'50,000.00): Provided, 


That in the case of partnerships, associations or corporations, the president, managing 
partner, and general manager shall be held liable, and if such officer is an alien, he shall, 
in addition to the penalty, be deported without further proceedings on the part of the 
Bureau of Immigration and Deportation. Offenders who are public officials shall be 
deemed automatically dismissed from office and permanently disqualified from 
holding any elective or appointive position. 
All timber or any forest products cut, gathered, collected, removed, or possessed 
and all the conveyances, machinery, equipment, implements, work animals, and tools 
used in connection with this violation shall be seized and confiscated in favor of the 
government. 
SEC. 59. Illegal Cutting as an Act of Economic Sabotage.- Any of the acts 
enumerated in the preceding section committed by an armed group or by any group, 
through organized and systematic manner, for commercial purposes, shall be 
considered an act of economic sabotage punishable by reclusion perpefua. 
The commission of any of the prohibited acts by two or more individuals with or 
without the aid of any mechanical device shall constitute a prima facie evidence that the 
act is organized and systematic. 
Any licensed timber concessionaire who shall buy logs from unlicensed loggers 
or loggers operating without permits shall be considered in violation of this Act and, 
upon conviction, shall also bs punished with reclusion perpefua. 
SEC. 60. Use of Illegally Cut Timber in Government Infrastructure Projects.- 
Contractors of government infrastructure projects are hereby required to obtain 
certification from the Department that the logs or lumber to be used therein were 
obtained from legitimate sources. The use of illegally cut naturally grown timber in 
government infrastructure projects shall be sufficient cause for the imposition of 
penalties provided in Section 58, on harvesting of for-st products without authority, 
and Section 59, on illegal cutting as an economic sabotage, including the withholding of 
the payment to the contractor. 
SEC. 61. Damage to Residual Trees.- To ensure the sustainability of the natural 
forests, adequate number of residual trees shall be marked, to be retained as part of the 
managed forests and as the future timber crop, before any harvesting operation shall 
commence. Any marked residual tree that is damaged during such operation is subject 
to a fine equivalent to four (4) times the regular forest charges. 
SEC. 62. Grazing Livestock on Forestlands Without a Permit.- Any person 
found to have caused the gazing of livestock in forestlands and grazing lands without 
an authority under a lease or permit to graze, upon conviction, shall be penalized with 
imprisonment of not less than two (2) years nor more than four (4) years and a fine 
equivalent to ten times the regular rentals due in addition to confiscation of the 
livestock and all improvements introduced in the area in favor of the government: 
Provided, That in case the offender is a corporation, partnership, or association, the 
officer or director thereof who directly caused or ordered such shall be liable. In case 
the offender is a public officer or employee, he shall, in addition to the above penalties, 
be deemed automatically dismissed from office and permanently disqualified from 
holding any elective or appointive position in the government service. 
SEC. 63. Unlawful Occupation or Destruction offorestlands.- Any person who, 
without authority from the Secretary, enters and occupies or possesses, or makes 
kaingin for his own private use or for others, any forestland or grazing land, or in any 
manner destroys such forestland or part thereof, or causes any 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 ne'gligently 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 Twenty thousand pesos (P20,OOO.OO) nor 
more than One hundred thousand pesos (PlO0,OOO.OO) and imprisonment G: not less 
than two (2) years nor more than six (6) years for each offense: Provided, That in the case 
of an offender found guilty of making kaingin, the penalty shall be imprisonment of not 
less than ten (10) years nor more than twelve (12) years and a fine equivalent to eight 
times the regular forest charges due on the forest products destroyed without prejudice 
to payment of the full cost of rehabilitation of the occupied areas as determined by the 
Department: Provided, firrther, That the maximum of the penalty prescribed herein shall 
be imposed upon the offender who repeats the same offense, and double the maximum 
penalty upon the offender who commits the same offense for the third time or more. 
In all cases, the court shall further order the eviction of the offender from the area 
occupied and the forfeiture to the government of all improvements made therein, 
including all vehicles, domestic animals and equipment of any kind used in the 
commission of the offense. 
If not suitable for use by the Department, said 
improvements, vehicles, domestic animals and equipment shall be sold at public 
auction, the proceeds from which shall accrue to the SFDF. 
If the offender is an alien, he shalI 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 dective or 
appointive position in the government service. 
SEC. 64. Illegal Conversion of City or Municipal Parks, Communal Forests, and 
Tree Parks in Subdivisions.- 
Any person found to have converted or caused the 
conversion of a city or municipal park or communal forest, or tree parks within 
subdivisions established pursuant to Section 27 and 28 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 (PlOO,OOO.OO) 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 eight 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 samk offense, 
and double the maximum penalty upon the offender who commits the same offense for 
the third time or more. The court shall further order the forfeiture to the government 
of all improvements made therein, including all vehicles, domestic animals, and 
equipment of any kind used in the commission of the offense. If not suitable for use by 
the Department, said improvements, vehicles, domestic animals and equipment shall be 
sold at public auction, the proceeds from which shall accrue to the SFDF. 
An offender who is a government officer or employee, in addition to the above 
penalties, shall be deemed automatically dismissed from office and permanently 
disqualified from holding any elective or appointive position in the government service. 
Misdeclaration or Falsification of Reports on Forest Resource 
Inventory, Scaling, and Survey by a Government Official or Employee. - Any public 
SEC. 65. 


officer or employee who knowingly misdeclares or falsifies reports pertaining to forest 
resource inventory, scaling, survey, and other similar activity which are contrary to the 
criteria and standards established in the rules and regulations promulgated by the 
Secretary therefor, after an appropriate administrative proceeding, shall be dismissed 
from the service with prejudice to re-employment. Upon conviction by a court of 
competent jurisdiction, the same public officer or employee shall further suffer an 
imprisonment of not less than eight (8) years nor more than twelve (12) years and a fine 
of not less than Twenty thousand pesos (P20,000.00) nor more than One hundred 
thousand pesos (Pl00,OOO.OO). Puovided, That the inventory, survey, scale, classification, 
and similar reports referred herein shall be rendered nul1 and avoid. 
SEC. 66. Unlawful Operation of Sawmills.- Any person operating a sawmill or 
mini-sawmill without authority from the Secretary, shall be punished by a fine of not 
less than one hundred thousand pesos (PlO0,OOO.OO) and confiscation of the sawmill or 
mini-sawmill and complementary equipment in favor of the government. 
SEC. 67. Prohibition on the Issuance of Tax Declaration on Forestlands.- Any 
public officer 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 perpetual disqualification 
from holding an elective or appointive office. The tax declaration shall be considered 
null and void. 
SEC. 68. Unlawful Possession of Implements and Devices Used by Forest 
0flicers.- Any person found possessing or using implements and devices used by 
forest officers shall be penalized with imprisonment of not less than four (4) years nor 
more than eight (8) years and a fine of not less than Twenty thousand pesos (P20,000.00) 
nor more than One hundred thousand pesos (PlO0,OOO.OO) in addition to the 
confiscation of such implements and devices and the automatic cancellation of any 
license agreement, license, lease or permit. 
Any forest officer who willingly allowed unauthorized person(s) to use these 
implements and devices under his care shall be penalized with imprisonment of not less 
four (4) years to no more than eight (8) years and a fine of not less than Twenty 
thousand pesos (P20,000.00) nor more than One hundred thousand pesos (PZOO,OOO.OO). 
In addition, the said forest officer shall be dismissed from the service with prejudice to 
reinstatement and with perpetual disqualification from holding an elective or 
appointive position. 
SEC. 69. 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 eight (8) years or a fine of not less than Thirty thousand pesos 
(P30,000.00) nor more than Fifty thousand pesos (P50,000.00) or both imprisonment and 
fine, and confiscation of said logging tools and equipment in favor of the government. 
SEC. 70. Non-Payment and Non-Remittance of Forest Charges.- Any person 
who fails to pay the amoui-t: due and payable as forest charges to the government shall 
not be allowed to transport, convey, sell, nor use the timber or forest product. 
Moreover, failure to pay within thirty (30) days upon assessment of forest charges shall 
be a ground for confiscation of the said timber or forest product in favor of the 
government. Any person who fails or refuses to remit to the proper authorities said 


forest charges collectible pursuant to the provisions of this Act or the National Internal 
Revenue Code, as amended, or who delays, obstructs or prevents the same, or who 
orders, causes or effects the transfer or diversion of the funds for purposes other than 
those specified in said Acts shall, upon conviction, be imprisoned for not less than six 
(6) years nor more than ten (10) years and fined from Twenty thousand pesos 
(P20,OOO.OO) to One hundred thousand pesos (PlO0,OOO.OO). 
If the offender is a 
corporation, partnership, or association, the officers and directors thereof shall be liable. 
SEC. 71. 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. 72. Liability of Confiscating Officers.- Any public officer who fails to 
produce the timber or forest products, including tools, conveyances, equipment, and 
devices in his custody pursuant to a seizure or confiscation made thereon, or who shall 
appropriate, take, misappropriate, or shall permit another person to take such timber 
forest products wholly or partially, shall suffer the penalty provided for in Article 217, 
on Malversation of Public Funds or Property, of the Revised Penal Code. In addition, 
the said public officer shall be dismissed from service with prejudice to reinstatement 
and with perpetual disqua!ification from holding any elective or appointive office. 
CHAPTER XV 
ADMINISTRATIVE PROVISIONS 
SEC. 73. Strengthening ofthe Forest Management Sector.- In order to effectively 
implement the provisions of this Act, the Forest Management Bureau (FMB) shall be 
transformed into a line bureau with functions clearly defined and enumerated under 
the implementing rules and regulations of this Act. To ensure that the scientific practice 
of forestry in the country is properly implemented, only registered foresters shall be 


appointed to the positions of Director and Assistant Director and Regional Directors of 
the FMB as well as to all other positions where the services of professional foresters are 
required in accordance with existing laws and the relevant rules and regulations issued 
by the Civil Service Commission (CSC) and the Professional Regulations Commission 
(PRC). 
SEC. 74. 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 internatimal markets; and 
ensuring the conservation and preservation of protection forestlands and protected 
areas under the NIPAS. 
SEC. 75. Authority of the Secretary on the Use of Forest Resources.- The 
utilization of forest resources from natural forests found in forestlands, government- 
established reservations, and all other lands including ancestral domains or tinder the 
management of other government agencies shall be prohibited unless covered by 
permits issued by the Department: Provided, That in the case of ancestral lands and 
domains, the terms of the agreement with the concerned indigenous cultural 
community shall likewise govern. 
SEC. 76. 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 U/ 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. 77. 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. 78. 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. 79. Visitorial Powers. - The Secretary or his duly authorized representative 
shall, from time to time, investigate, inspect, and examine records and other documents 
except bank records related to the operation of any person granted the privilege, 
contract, or agreement to utilize forest resources to determine compliance with the 
terms and conditions stipulated in the grant, contract or agreement, this Act, and 
pertinent laws, rules, and regulations. 
SEC. 80. Other Incentives.- Twenty percent (20%) of the value of confiscated 
materials shall be used as incentives to informants and members of multi-sectoral forest 
management councils, including Department personnel. Additional incentives may be 
provided to personnel of the Department, in addition to those provided znder 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 perforrnance of official duties. 
SEC. 81. Citizens' Suits. - For purposes of enforcing the provisions of this Act or 
its implementing rules and regulations, any citizen may file an appropriate civil, 
criminal or administrative action in the proper court against: (a) any person who 
violates or fails to comply with the provisions of this Act or its implementing rules and 
regulations; or (b) the Department or other implementing agencies with respect to 
orders, rules and regulations issued inconsistent with this Act; and (c) any public officer 
who willfully or grossly neglects the performance of an Act specifically enjoined as a 
duty by this Act or its implementing rules and regulations, or abuses his authority in 
the performance of his duty, or in any manner, improperly performs his duties under 
this Act or its implementing rules and regulations: Provided, however, That no suit can be 
filed until after a thirty-day notice has been given to the public officer and the alleged 
violator concerned and no appropriate action has been taken thereon. 
The court shall exempt such action from the payment of filing fees, and shall, 
likewise, upon prirnn facie showing of the non-enforcement or violation complained of, 
exempt the plaintiff from the filing of an injunction bond for the issuance of a 
preliminary injunction. 
In the event that the citizen should prevail, the Court shall award reasonable 
attorney's fees, moral damages, and litigation costs as appropriate. 
SEC. 82. Suits Against Public Participation and the Enforcement of this Act.- 
Where a suit is brought against a person who fiIed an action as provided in Section 80 
herein, or against any person, institution or government agency that implements this 
Act, it shall be the duty of the investigating prosecutor or the Court, as the case may be, 
to immediately make a determination not exceeding thirty (30) days whether said legal 
action has been filed to harass, vex, exert undue pressure, or stifle such legal actions of 
the person complaining for the enforcement of the provisions 0: this Act. Upon 


determination thereof, evidence warranting the same, xhe Court shall dismiss the case 
and zward attorney's fees and double damages. 
This provision shall also apply and benefit public officers who are sued for acts 
committed in their official capacity, there being no grave abuse of authority, and done 
in the course of enforcing this Act. 
SEC. 83. Protection to Witnesses in Cases Involving Violation of Foresty 
Laws.- Witnesses to violations of this Act or other forestry laws and regulations, 
including the immediate members of the family of said witnesses shall be given 
protection, security and benefit, subject to the provisions of Republic Act No. 6981, 
otherwise known as "The Witness Protection, Security and Benefit Act" and its 
implementing rules and regulations. 
SEC. 84. Rule-Making Authority.- In coordination with the NCIP, the DILG, the 
Department of Finance, the leagues of provinces, cities, and municipalities, and other 
government agencies mentioned herein, the Department shall promulgate the 
implementing rules and regulations within one (1) year from the effectivity of this Act. 
SEC. 85. Congressional Oversight Committee on the Sustainable Forest 
Management Act.- There is hereby created a Congressional Oversight Committee 
composed of seven (7) members from the Senate Committee on Environment and 
Natural Resources and seven (7) members from the House of Representatives 
Committee on Natural Resources. 
The secretariat of the Oversight Committee shall be drawn from the existing 
secretariat personnel of the committees comprising the oversight and the funding shall 
be taken from the appropriations of both the House of Representatives and the Senate. 
SEC. 86. Transit0 y Provision.- Upon the approval of this Act, the Department 
shall evaluate the conditions of all forestlands covered by existing TLAs, licenses, or 
permits and the like, whkh shall be allowed to continue until their expiry unless 
terminated for cause, such as: 
(a) when the licensee has been found to be a dummy; 
(b) farming out the license or receiving royalty of any kind; 
(c) cutting or operating outside the limits of the license or within an area 
specifically designated or sub-classified by the Department as protection forest; 
(d) allowing illegally cut timber to be invoiced under the license of inducing any 
other person to log in other areas in violation of the Department's regulations; 
(e) failure to submit to the Department the required copies of auxiliary invoices 
covering timber manifested under the license; 
(f) failure to leave undamaged an adequate stand of young trees for residual 
growing stock or for seeding purposes and to employ the necessary number of laborers 
needed for timber management work; 
(g) when the licensee has, for the third time after written warning, intentionally 
cut, injured or destroyed trees marked by forest officers and unmarked poles and 
saplings for future growing stock, seeding, or protection; 
(h) failure to employ the required number of concession guards as determined 
by the Department; 
(i) failure to protect the concession or license area or parts thereof from being 
converted into kaingin, or from illegal timber cutting, and other forms of trespass; 
(j) when made a condition in the award of the area and the grant of the license, 
to put up the processing plant for the area within the required period; 
(k) failure to pay pending forest accounts; 


(1) failure to maintain and make conspicuous the approved and established 
(m) failure to suspend operations within a conflicted area when so required by 
(n) when the license is found to have been obtained through fraud or 
(0) allowing a contractor to operate the license area or concession; and 
(p) violation of any of the terms and conditions of the license or any of the 
Any of the violations enumerated above will be cause for the immediate 
boundaries of his concession or license area; 
the Department or its authorized representatives, pending final decision of the conflict; 
misrepresentation or by false, misleading statements; 
provisions of the internal revenue, labor, and NIPAS laws and Department regulations. 
cancellation of the permit 01 timber license agreement. 
CHAPTER XVI 
FINAL PROVISIONS 
SEC. 87. 
SeparabiZity Clause. - Should any provision herein be declared 
unconstitutional or invalid, the same shall not affect the validity or legality of the other 
provisions. 
SEC. 88. Repeazing Clause. - Subsections (b), (d), (e), (f), (g), and (i) of Section 4 
of Act No. 3915; Republic Act Nos. 460 and 7161; Presidential Decree Nos. 705, 1153, 
1515,1559,1775 and 1998; Letter of Instruction No. 818; Executive Order Nos. 277 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: Pvovided, That this Act 
shall not in any manner amend the IPRA and the NIPAS law. 
SEC. 89. Effectivity. - This Act shall take effect thirty (30) days from the date of 
its publication in the Official Gazette or in at least two (2) national newspapers of 
general circulation. 
Approved,