FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regtllar Session 
) 
) 
) 
SENATE 
S.B. No. 1353 
Introduced by Senator Loren Legarda 
EXPLANATORY NOTE 
;", 
, l 
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, as well as the 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 has a total land area of 30,000,000 hectares, 
52.8% or 15,851,473 hectares of which are classified as forest land. The Southern Tagalog 
Region has the biggest area of forest land of all regions, with 2,178,871 hectares or 7% of 
total forest land found in said area while 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 dishlrbance 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 namral death of trees (stand mortality) which accounted for P5.9 
billion. Demand for agriculmral 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. 
Clear! y, 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 tl1e basic management unit and under 
1 


the concepts of sustainable and multiple-use management, including the conservation 
of biodiversity; 
2. Multi-sectoral participation.- The participation of all sectors of society in sustainable 
forestland conservation, management, and development shall be promoted. Equitable 
sharing of the benefits derived from forestlands shall be ensured at all times; 
3. Community-based forest management (CBFM) as a principal strategy.- Vesting access 
rights and responsibilities to forest resident families, local communities, and indigenous 
peoples to undertake the management and development of appropriate forestland 
resources on a sustainable basis shall have precedence over other strategies; 
4. Protection of forestlands and natural resources as priority concern. - The protection of 
forestlands, especially 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; 
. 
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 &.wide range of players involved in forest rehabilitation in the 
Philippines in the last few decades including the national government, NGOs, private 
companies, LGUs, local communities and private land owners. Ensuring 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. 
~==:===~~~===-~>-~ 
LOR~GARoA--
Senator 
2 


FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
S.B. No. 1353 
Introduced by Senator Loren Legarda 
AN ACT PROVIDING FOR 
SUSTAINABLE FOREST MANAGEMENT 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
CHAPTER I 
BASIC FORESTRY POLICIES 
SECTION 1. Short Title. - This Act shall be known as the "Sustainable Forest 
Management Act of 2010." 
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 forestlands and their resources: 
(a) That specific limits of forestlands, after these have been fixed and demarcated, shall 
not be altered, except through an act of Congress; 
(b) The use of forest resources shall bear a social function, responsibility and 
accountability to promote the common good; and 
(c) The management, protection, conservation and development of forest resources shall 
be integrated and sustainable, focusing on the resource and the people who manage, 
conserve and benefit from it. 
In carrying out the above policies, the following strategies shall be pursued: 
(1) Watershed as the Basic Forestland Management Unit. - Forestlands shall be 
conserved, developed and managed utilizing watershed as the basic management unit 
and under the concepts of sustainable and multiple-use management, including the 
conservation of biodiversity; 
(2) Multi-sectoral Participation. - ThF participation of all sectors of society in sustainable 
forestland conservation, management and development shall be promoted. Equitable 
sharing of the benefits derived from forestlands shall be ensured at all times; 
(3) Community-based Forest Management (CBFM) as a Principal Strategy. - Vesting 
access rights and responsibilities to dependent families, local communities and 
1 


indigenous peoples to undertake the management and development of appropriate 
forestland resources on a sustainable basis shall be the principal strategy; 
(4) Protection of Forestlands and Natural Resources as Priority Concern. - The 
protection of forestlands, especially protected areas and the natural resources in these 
areas, shall be given priority concern in order to ensure environmental stability, 
enhance biological diversity, increase productivity and provide economic benefits; 
(5) Reforestation as a Priority Measure. - Economic and ecological reforestation shall be 
given priority emphasis in order to rehabilitate and restore the usefulness or 
productivity of open and/ or denuded and degraded forestlands as well as increase the 
income of communities concerned; 
(6) Security of Tenure of Stakeholders. - In pursuance of the principles of sustainable 
and multi-use forest management and equitable access to forest resources, a secured 
tenure shall be guaranteed to stakeholders concerned; and 
(7) Professionalism in the Forest Service. - A dynamiC, professional and people-oriented 
forest service shall be established and fully supported by the government. 
SEC. 3. Definition of Terms. - As used in this Act, the term: 
(a) "Afforestation" shall refer to the planting of trees or the artificial establishment of a 
forest in areas that were not previously forested. 
(b) "Agro-forestry" shall refer to a strategy for the sustainable management of lands 
which increases their overall productivity by properly combining agricultural crops 
and/ or livestock with forest crops simultaneously or sequentially through the 
application of management practices which are compatible with the local climate, 
topography, slope, soil, as well as the cultural patterns or customary laws of the local 
population. 
(c) "Agricultural lands" shall refer to lands of the public domain which have been 
delimited, classified 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. 
(d) "Ancestral domains" shall refer to all areas generally belonging to indigenous 
cultural communities (ICCs) or indigenous peoples (IPs) as defined in Republic Act No. 
8371 or the Indigenous Peoples Rights Act (IPRA) of 1997. 
(e) "Ancestral lands" shall refer to lands occupied, possessed and utilized by members 
of the ICCs/IPs as defined in the IPRA. 
(f) "Biological diversity or biodiversity" shall refer to the variability among living 
organisms including, inter alia, terrestrial, marine and other aquatic ecosystems and the 
ecological complexes of which they are part. This includes diversity within and between 
species and ecosystems. 
(g) "Buffer zones" shall refer to identified areas outside the boundaries of and 
immediately adjacent to protected areas pursuant to Section 8 of Republic Act No. 7586 
or the National Integrated Protected Areas System Act of 1992 (NIPAS Act) that need 
special development control in order to avoid or minimize harm to the protected area. 
(h) "By-product" shall refer to any part taken from wildlife species such as hides, 
antlers, feathers, fur, internal organs, roots, trunks, branches, leaves, sterns, flowers and 
the like. 
(i) "Commercial logging" shall refer to the cutting or felling of trees for the purpose of 
disposing of the cut or felled logs for economic gains beyond survival and livelihood 
means. 
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0) "Communal forest" shall refer to a tract of forestland set aside and established for and 
under the protection, administration and management of a city, municipality or 
barangay as a source of wood material for fuel, shelter and manufactured products; as a 
source of water for the community; and area for ecotourism and/or environmental 
protection or socioeconomic projects of local government units consistent with 
sustainable development. 
(k) "Community-based Forest Management Strategy" shall refer to all organized efforts 
of government to work with forest-dependent families and communities inside and 
adjacent to public forestlands with the intent to empower them and entrust to them the 
protection, rehabilitation, management, conservation and utilization of forestlands and 
their natural resources. 
(1) "Conservation" shall refer to planned protection and management of forests and 
their resources so as to prevent waste and ensure future use. 
(m) "Conveyance" shall refer to any vehicle, vessel, device or animal used in gathering 
or transporting forest products. 
(n) "Co-production agreement" shall refer to an agreement entered into by and between 
a qualified person and the government for the former to develop, utilize and manage, 
consistent with the principles of sustainable development, a private land or portion of a 
forestland wherein both parties agree to provide inputs and share the products or their 
equivalent cash value. 
(0) "Critical watershed" shall refer to a drainage area of a river system supporting 
existing and proposed hydroelectric power, irrigation works or existing water facilities 
needing immediate protection and rehabilitation to minimize erosion and improve 
water yield. 
(p) "Department" shall refer to the Department of Environment and Natural Resources 
(DENR). 
(q) "Denuded forestlands" shall refer to former forested lands but are now devoid of 
trees due to human activities. 
(r) "Degraded forests" shall refer to all forestlands containing less than five (5) square 
meters in basal area per hectare of commercial tree species with diameters at breast 
height or diameter above buttress of less than sixty-five (65) centimeters. 
(s) "Environmentally critical project" shall refer to a project or program that has high 
potential for significant negative environmental impact. 
(t) "Environmental Compliance Certificate (ECC)" shall refer to the document issued by 
the Department certifying that a proposed project or undertaking will not cause a 
significant negative impact on the environment; that the proponent has complied with 
all the requirements of the Environmental Impact Assessment (EIA) System in 
accordance with Presidential Decree No. 1151 or the Philippine Environmental Policy 
and Presidential Decree No. 1586, establishing an Environmental Impact Statement 
System; and that the proponent is committed to implement its approved Environment 
Management Plan found in the Environmental Impact Statement (EIS) or mitigation 
measures identified in the Initial Environmental Examination (lEE). 
(u) "Environmental Impact Assessment" shall refer to the process of predicting the 
likely environmental consequences of implementing a project or undertaking and 
designing the appropriate preventive, mitigating or enhancement measures. 
(v) "Environmental, Impact Statement System" shall refer to the organization, 
administration and procedures that have been institutionalized pursuant to Presidential 
Decree No. 1586 for purposes of assessing the significance of the effects of any project or 
undertaking on the quality of the physical, biological and socioeconomic environment 
and designing the appropriate mitigating and enhancement measures. 
(w) "Forest" shall refer to land with tree crown cover or equivalent stocking level of 
more than ten percent (10%) and an area or more than half a hectare. The trees should 
be able to reach a minimum height of five (5) meters at maturity in situ. It may consist 
3 


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 ten percent (10%). Young natural stands and 
all plantations established for forestry purposes which have yet to reach a crown 
density of ten percent (10%) or tree height of five (5) meters are included under forest, 
as are areas normally forming part of the forest area which are temporarily unstocked 
as a result of human intervention or natural causes but which are expected to revert to 
forest. Forests include such stand types as dipterocarp, pine, mossy, molave, beach and 
mangrove. For the purpose of this Act, natural forests may be classified according to: (1) 
primary-use and management, a forest shall be classified as either protection forest 01' 
production forest after its most suitable and dominant multi-use function has been 
determined pursuant to this Act; and (2) growth formation, a forest is classified as either 
closed forest or open forest. Closed forests have trees in various storeys and 
undergrowth that cover a high proportion, greater than forty-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%). 
(x) "Porest charges" shall refer to the levy imposed and collected by the government on 
naturally growing timber and other; forest products cut, harvested or gathered from the 
forestlands and from "alienable or disposable (A&D)" lands in accordance with 
Republic Act No. 7161. 
(y) Forest-based industries" shall refer to various industries that are dependent on raw 
materials or products derived from forests such as, but not limited to, wood, rattan, 
bamboo, vines, latex, resins, saps, essences, fruits, flowers or wild flora and fauna. 
(z) "Forest-based community" shall refer to a group of people residing inside or 
immediately adjacent to a particular forestland who are largely or partly dependent on 
the forest resources found in the area for their livelihood. 
(aa) "Forestlands" shall refer to lands of the public domain that have been classified as 
such and all unclassified lands of the public domain. 
(bb) "Forest officer" shall refer to any public officer who, by the nature of his 
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 andlor 
seeding in the process of afforestation and reforestation. The stand is either of 
introduced species or of any indigenous species, or both. 
(dd) "Forest products" shall refer to goods and services derived from the forest such as, 
but not limited to, timber, lumber, veneer, plywood, fiberboard, pulpwood, firewood, 
bark, tree top, resin gum, wood oil, honey, beeswax, nipa, rattan or other forest growth 
such as grass, shrub and flowering plant, the associated water, fish, game, scenic, 
historical and educational. 
(ee) "Forest resources" shall refer to all resources whether biomass such as plants and 
animals, including its by-products and derivatives, which can be raw materials to 
produce value-added products or non-biomass such as soil, water, scenery, as well as 
the intangible services and values present in forestlands or in other lands devoted for 
forest purposes. 
. 
(ff) "Forest-resource derivatives" shall refer to substances/materials extracted, or as 
exudates of the trees or part thereof such as, but not limited to, resins, gums tanning, 
beeswax, rosin and alike. 
(gg) "Grazing land" shall refer to a portion of the public domain which has been set 
4 


aside, in view of the suitability of its topography and vegetation, for the raising 
oflivestock. 
(hh) "Indigenous cultural community (ICq" shall refer to a group of people or 
homogenous societies as defined in the IPRA Law. Indigenous cultural community is 
synonymous with indigenous people. 
(ii) "Industrial Forest Management Agreement (IFMA)" shall refer to a production-
sharing contract entered into by and between the Department and a qualified person, 
whether natural or juridical, wherein the former grants to the latter the exclusive right 
and responsibility to invest in, develop, manage and protect a defined area of the 
production forestland, including the establishment, management and utilization of 
industrial forest plantation, consistent with the principle of sustainable development 
primarily to supply the raw material requirements of wood-based processing and 
energy-related industries and wherein both parties share in the benefits therefrom. 
jj) "Industrial forest plantation" or "IFP" shall refer to any tract of land, whether public 
or private, planted to timber-producing species, including rubber and durian trees 
and! or non-timber species such as rattan and bamboo, primarily to supply the raw 
material requirements of forest-based industries, energy-generating plants and related 
industries. 
(kk) "Integrated forest-based industry" shaH refer to a rationalized forest resource 
industry which is characterized by the presence of complementary timber processing 
plants such as sawmills, plywood and veneer mills, particleboard and fiberboard plants, 
pulp and paper mills as well as secondary and! or tertiary wood processing plants. 
(II) "Integrated wood processing plant" shaH refer to a combination of two (2) or more 
wood-based processing facilities, whether mechanical or chemical or both, such as 
sawmill, veneer and plywood mills or pulp and paper mills, including other facilities in 
the manufacture of semi- or completely finished wood products. 
(mm)"Joint venture agreement" shall refer to an agreement wherein the government 
and a qualified person organize a joint venture company, with both parties having 
equity shares, to develop and manage a portion of forestland. Aside from earnings on 
the equity, the government shall be entitled to a share in the output computed at a 
certain percentage mutuaHy agreed upon by and beneficial to both parties. 
(nn) "Kaingin" shall refer to a portion of the forestland, whether occupied or not, which 
is subjected to a farming system based on shifting or slash-and-burn clearing of forest 
for the planting of agricultural and agro-forest crops. 
(00) "Managed forest" shall refer to a forestland under a deliberate system of protection, 
rehabilitation, development and utilization of resources to ensure sustainable 
production of desired forest products andlor services as well as the conservation of soil, 
water, wildlife and other natural res'ources. 
(pp) "Multiple-use forestry" shall refer to the harmonized utilization, development and 
management of forestlands for the production of two (2) or more products, goods 
and! or services in conformity with the principle of sustainable development. 
(qq) "National park" shall refer to an area of the public domain essentially natural 
wilderness, scenic or historic in character which has been withdrawn from settlement, 
occupancy or any form of exploitation except in conformity with an approved 
management plan and set aside exclUSively to conserve the area or preserve the scenery, 
the natural and historic objects, wild animals and plants mainly for the purpose of 
biodiversity conservation and! or human enjoyment. 
(rr) "Natural forest" shall refer to a forest composed of naturally growing indigenous 
trees, not planted by man, whose structure, composition and dynamics have been 
largely the result of natural succession processes. 
(ss) "Nongovernment organization (NGO)" shall refer to a nonstock, nonprofit and 
voluntary organization established primarily to provide assistance or service. 
(tt) "Non-timber forest products" shall refer to all biological materials and derivatives 
5 


other than timber which are extracted from forests for human use. 
(uu) "Permit" shall refer to a short-term privilege or authority granted by the State to a 
person to utilize any limited forest resources or undertake a limited activity within any 
forestland without any right of occupation and possession. 
(vv) "Person" shall refer to a natural as well as juridical person, induding local forest-
based communities or IPs organized in accordance with law or custom. 
(ww) "Processing plant or mill" shall refer to any mechanical setup, machine or 
combination of machines used for the conversion of logs and other forest raw materials 
into semi-finished or finished products. 
(xx) "Production sharing agreement" shall refer to a contract between the government 
and a person, whether natural or juridical, wherein both parties exercise the right to 
manage, develop and utilize forest resources within a specific area of production 
forestlands and the period of time with the person providing the financing, technology, 
management, personnel, marketing and other inputs necessary to implement the 
agreement, and both parties sharing the benefits under the terms and conditions set 
fOIth in said agreement. 
(YY) "Protected areas" shall refer to identified portions of land and water set aside 
pursuant to the NIP AS Act. 
(zz) "Reforestation" shall refer to the planting of trees or artificial establishment of forest 
in areas that were previously forested. 
(aaa) "Reservation" shall refer to a forestland that has been reserved by the President or 
by law for any specific purpose. 
(bbb)"Rotation" shall refer to the number of years between the initial establishment ofa 
plantation and the time when it is considered ready for harvesting. 
(ccc) "Second-growth forest" shall refer to the status or condition of a forest subsequent 
to commercial logging of which there is more or less sufficient volume of residuals of 
the desired species of trees for future harvest. A second-growth forest is synonymous to 
a residual forest. 
(ddd) "Secretary" shall refer to the Secretary of the Department of Environment and 
Natural Resources. 
(eee) "Semi-finished wood products" shall refer to wood products requiring final stages 
of manufacture and/or assembly such as, but not limited to, window components, 
tabletops, veneer and other similar wood products. 
(Hf) "Silvicultural practices" shall refer to any scientific intervention to further improve 
or enhance the growth of trees or forest as a whole for future harvest. 
(ggg) "Sustainable development" means meeting the needs of the present generation 
without compromising the ability of the future generations to meet their own needs. 
(hhh) "Sustainable forest management" shall refer to the process of managing a forest to 
achieve one (1) or more clearly specified objectives of management with regard to the 
production of a continuous flow of desired forest products and services without undue 
reduction of its inherent values and future productivity, and without undesirable effects 
on the physical and social environment. 
(iii) "Tenure" shall refer to guaranteed peaceful access to and use of specific forestland 
area and the resources found in the area through an agreement, contract or grant, which 
cannot be altered or abrogated without due process. 
(ijj) "Timber License Agreement (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. 
(kkk) "Trade" shall refer to the act of engaging in the exchange, purchase or sale of 
forest products locally or internationally. 
(lll) "Urban forestry" shall refer to tbte establishment and management of forest in urban 
6 


environment for the physiological and psychological weIl-being of the people. 
(mmm) "Watershed" shall .refer to a land area drained by a stream or a fixed body of 
water and with tributaries having a common outlet for surface runoff. 
(nnn) "Watershed reservation" shall refer to a forestland that has been proclaimed by 
the President or by law as such, primarily for water production purposes although 
other compatible uses may be allowed under sustainable and multiple-use management 
concepts. 
(000 )"Wildlife" shall refer to wild forms and varieties of flora and fauna in all 
developmental stages. 
(ppp) "Wood-based industries" shaIl refer to various industries that use wood as the 
principal raw material such as, but not limited to, sawmilling, pulp and papermaking, 
and plywood and veneer manufacturing, the upstream wood-based industries, as well 
as the secondary and tertiary wood processing such as, but not limited to, moldings and 
furniture manufacturing. 
CHAPTER II 
CLASSIFICATION OF THE PERMANENT FORESTLANDS 
SEC. 4. The Permanent Forestlands. - All lands of the public domain classified as 
forestlands under the Department's land classification program, including the 
remaining unclassified lands of the public domain, shall be maintained as permanent 
forestlands. 
SEC. 5. Subclassification of the Permanent Forestlands. - The permanent 
forestlands shall be subclassified into the following categories according to primary use: 
(a) Protection Forestlands. - AIl areas within the forestlands designated or set aside as 
such shall constitute the protection forestlands. All mossy and primary/old-growth 
forests and natural beach; all areas one thousand (1,000) meters above sea level, areas 
above fifty percent (50%) slope; areas regardless of slope which are highly erodible or 
too rocky for the establishment of either production forests or limited production 
forests, developed for the principal objectives or establishing vegetative cover to 
prevent erosion, conserve water and nurture wildlife, freshwater, swamps and marshes; 
all areas along the bank of rivers and streams; and the shores of the seas and lakes 
throughout their entire length and within a zone of three (3) meters in urban areas, 
twenty (20) meters in agricultural areas and forty (40) meters in forest areas, along their 
margins which are subject to the easement of public use in 16 the interest of recreation, 
settlements, navigation, floatage, fishing and salvage shall also be sub classified as 
protection forestlands: Provided, That reclassification shaIl be approved by an act of 
Congress; and 
(b) Production Forestlands. - All forestlands not sub classified as protection forestlands, 
defined in this section, shaIl constitute the production forestlands to be devoted to the 
production of timber and/or non-timber forest products or the establishment of 
industrial tree plantations, tree farms, communal forests, agro-forestry, grazing or as 
multiple-use forests, including water-based energy areas such as, but not limited to, 
hydrothermal and geothermal reservations: Provided, That they shaIl be managed, 
developed and utilized in accordance with a Department-approved management plan 
based on sustainable forest management principles. 
7 


CHAPTER III 
ADMINISTRATION AND MANAGEMENT OF FORESTLANDS 
AND THEIR RESOURCES 
SEC. 6. Jurisdiction and Control of Forestlands. - The Department shall be the 
primary agency responsible for the conservation, management, development and 
utilization of all forestlands and the unclassified lands of the public domain, including 
all the resources found or growing in these lands. In coordination with the local 
government units (LGUs) and other government agencies, the Department shall ensure 
that forestlands and unclassified lands of the public domain are managed, conserved, 
developed, utilized and protected consistent with the policies and strategies 
promulgated in this Act. The utilization and development of forestlands and 
unclassified lands of the public domain, including their natural resources, shall be 
undertaken in accordance with Department-approved management plans: Prol'ided, 
That the management plan for protected areas shall be prepared in accordance with the 
provisions of the NIP AS Act. 
Records pertaining to the specific limits of forestlands shall be made available to the 
public upon request. Moreover, the Department shall furnish all provincia!, municipal 
and city governments copies of the maps of permanent forestlands located within their 
respective territorial jurisdictions. 
SEC. 7. Forestlands Managed by Local Government Units (LGUs). - Pursuant to 
the pertinent provisions of Republic Act. No. 7160 or the Local Government Code, 
LGUs shall share the responsibility in the sustainable management and utilization of 
forest resources within their territorial jurisdiction, including those assigned by law to 
other government agencies. Subject to vested rights, LGUs and the Department, in 
consultation with other government agencies, local communities, non-government 
organizations, academic and research institutions and other sectors, shall jointly 
undertake the preparation of forestland use and watershed management plans, 
particularly the identification of multiple-use areas and production forestlands within 
the territorial jurisdiction of each LGU which shall be made an integral component of 
the latter's Comprehensive Land Use Plan (CLUP). The LGUs shall be consulted on all 
forestry projects to be implemented in their territorial jurisdiction and shall have 
equitable share of incomes derived there from. For this purpose, the Department, the 
Department of the Interior and Local Government (DILG), the leagues of provinces, 
cities, municipalities and barangays shall formulate a joint strategy and program to 
implement this proviSion within one (1) year from the passage of this Act. 
SEC. 8. Forestlands Under Other Government Agencies. - Forestlands and/ or 
portions 
thereof which have been assigned by law to the administration and 
management of other government agencies for a specific purpose, including those 
devolved to the LOUs prior to the passage of this Act, shall be subclassified as 
production forestlands and shall remain under the administration and management of 
these government agencies which shall be responsible for their conservation, protection, 
rehabilitation and subclassification into forestland, and the specific purpose for which 
the entire area has been aSSigned or reserved unless said assignment or reservation is 
consistent with the use of such area as protection forestland. The Secretary or a duly 
authorized representative shall exercise oversight functions over these forestlands. 
Moreover, these forestlands shall be administered in accordance with a forest 
management plan, which shall be prepared by the government agency or the concerned 
LOU in coordination with the Department and local communities and organizations 
within one (1) year from the effectivity of this Act: Provided, That the Department and 
8 


the LOU or the government agency concerned shall periodically review, monitor and 
evaluate the implementation of the said management plan: Provided, further, That the 
harvesting of forest resources and the building of roads and other infrastructure shall be 
undertaken only with the prior approval of the Secretary and after compliance with EIS 
and ECC requirements: Provided, finally, That the Secretary shall recommend to 
Congress or the President of the Philippines the reversion to the Department of the 
jurisdiction and control over forestlands that are no longer needed nor used for the 
purpose by which they have been constituted or reserved or in case the agency or the 
LOU concerned fails to rehabilitate, protect and conserve the forestland and its 
resources in accordance with the approved management plan. The Department shall 
determine the use of the reverted forestlands. 
SEC 9. Forest Resources Within Alienable and Disposable Lands.- All forest 
resources, including trees planted or raised within alienable and disposable lands, 
belong to the owner of the land who shall have the right to harvest, transport, sell, 
contract, 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 shall be assisted by the Department in the preparation 
of a management plan and shall be entitled to appropriate incentives provided under 
Section 24: Provided, That agricultural lands devoted to the planting and harvesting of 
forest resources shall remain subject to the provisions of Republic Act No. 6657 or the 
Comprehensive Agrarian Reform Law. 
SEC 10. Forest Resources Within Forestlands. - All forest resources, including 
non-timber forest products, its by-products and its derivatives, whether naturally 
growing, planted or raised which have been taken of or have been applied with some 
silvicultural practices, within forestlands including those forest resources within the 
areas covered by a Certificate of Ancestral Domain Title (CADT) or a Certificate of 
Ancestral Land Claim (CALC), sj1.all be issued with a permit, agreement or clearance 
that are deemed necessary and appropriate by the Department, as recommended by the 
Forest Management Bureau (FMB). The transport of these forest resources from 
forestlands, including those from the areas of the ICCs or IPs covered by a CADT or a 
CALC, shall be covered by. a separate permit, agreement or clearance duly issued by 
, the Department. 
Any declaration of forest resources as endangered, threatened, vulnerable and other 
restriction shall be done in coordination, consultation and clearance from the FMB. 
SEC 11. Forest Resources Within Ancestral Domains. - The recognition, 
ownership and management of ancestral lands and domains shall be governed by the 
provisions of the IPRA, but any project of a holder of a CADT or any such similar 
instrument to develop or use forestlands or forest resources that would result in severe 
soil erosion or environmental degradation shall be subject to the provisions of 
Presidential Decree No. 1151 or the Philippine Environmental Policy; Presidential 
Decree No. 1586, establishing an Environmental Impact Statement System; and this Act. 
The National Commission on Indigenous Peoples (NCIP) shall coordinate and consult 
the Department in providing assistance to the IPs in the sustainable management and 
development of forest resources within ancestral lands and domains. For this purpose, a 
multi-sectoral task force shall be created, to be composed of representatives from the 
Department, the NCIP, the Department of Agrarian Reform (DAR) and the concerned 
LCU to evaluate and validate the authenticity of all CALT/CALC claims and 
9 


applications of the IPs prior to the conduct of all survey activities and the issuance of 
corresponding titles. 
CHAPTER IV 
FOREST MANAGEMENT PLANNING, 
MONITORING AND ASSESSMENT 
SEC. 12. Sustainable Forest Management Planning. - Subject to vested or prior 
rights, the Department, in consultation and coordination with LGUs, other government 
agencies, local communities, nongovernment organizations, individual and corporate 
entities, private sectors, academic and research institutions and other concerned sectors 
shall, within one (1) year from the effectivity of this Act, develop and adopt a 
sustainable forest management strategy for each well-defined watershed or other 
appropriate forest management unit based on criteria, indicators and standards for 
sustainable forest management which, at their minimum, address the following 
requirements: 
(a) Rational allocation of forestland uses and promotion of land-use practices that 
increase productivity and conserve soil, water and other forestland resources; 
(b) Protection of existing forest resources and conservation of biodiversity; 
(c) Rehabilitation or development of denuded areas to expand the forest resource base 
and promote food production activities; 
(d) Enhancement of the socioeconomic well-being of local communities including Ips 
who are largely dependent on the forest for their livelihood; 
(e) Promotion of closer coordination between and among the Department, LOUs, other 
national agencies, nongovernment organizations, local communities, the private sector, 
academic and research institutions, and other entities in the sustainable management of 
forestlands; 
(f) Adoption of community-based forest management as a principal strategy in the 
management of forestlands and resources; and 
(g) Integration of forest management and land-use plans at the barangay or community 
level to the CLUPs of cities and municipalities, including the adoption of effective 
impact monitoring system of forest management programs. 
The Department shall adopt a comprehensive forestry master plan that shall define the 
development of the combination of outlooks for the different forestry land uses, its 
productivity, demand, supply, human resources policy and institutional changes. 
SEC. 13. Watershed and Ecosystems Management Approach. - The Watershed 
and 
ec;osystems planning framework in environment and natural resources 
management shall be adopted. The strategy for improved watershed resources 
management shall be demand-driven, community-based and multiple- and sustainable-
use, considering national priorities and concerns of local stakeholders. Watershed 
management programs shall be guided by ecological, sociocultural, economic and 
institutional sustainability principles. A national watershed information system shall be 
developed to guide policy formulation, program development and implementation of 
watershed management initiatives. 
A system of management prioritization of watersheds shall be pursued considering the 
following: 
(a) Water supply for domestic, irrigation, power, industrial and commercial use; 
10 


• 
(b) Contribution to the economy; 
(c) Biodiversity and environmental enhancement; 
(d) Cultural and historical value; and 
(e) Effect on downstream areas. 
SEC. 14. Forestry Information System. - The Department shall establish a 
forestry 
information system, 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 forest resources. It shall include a resource 
monitoring system to enable the Department and its field offices to track the utilization, 
movement or transfer of forest-based goods and services from the source to their end-
users. The Department shall conduct and/ or update forest resource inventory at least 
once every five (5) years to ensure effective management. 
SEC. Environmental Impact Assessment. Accounting and Valuation. - All new 
critical projects to be implemented in forestlands such as harvesting, grazing and other 
special uses, mineral prospecting and exploration, road, infrastructure and mill 
construction shall be subject to the country's ETA system. The Department shall design 
and implement a system of monitoring and assessment, using the criteria and indicators 
as framework, and shall formulate appropriate standards as basis for assessing progress 
towards sustainable forest management. 
The Department shall formulate an appropriate natural resource accounting and 
valuation system for various forestry initiatives and 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 pl'Ogram. Indigenous peoples shall also be 
encouraged to actively participate in the implementation of CBFM activities in 
recognition of their rights to their ancestral domains and lands. 
Organizations eligible to participate in CBFM shall have the following qualifications: 
(a) Members shall be Filipino citizens; and 
(b) Members shall be any of the following: 
1) Traditionally utilizing the resource for their livelihood; 
2) Actually residing within the area to be awarded; or 
3) Residing adjacent and actually tilling and developing the area to be awarded. 
CHAPTER VI 
REFORESTATION AND AFFORESTATION PROGRAM 
SEC. 20. ReforestationlRehabilitation of Protection Forestlands. -
The 
reforestation and rehabilitation of all critical watershed, denuded forestlands and 
degraded forests within protection forestland not otherwise covered by the CBFM 
program shall be given top priority and shall be vigorously pursued by the Department, 
consistent with the NIP AS Act and the strategies and management plans therefore. The 
use of endemic species in the restoration program for protection forestlands shall be 
given primary consideration to enhance the biological diversity of the area. 
The Department, in coordination with LGUs, other government agencies, NGOs, local 
residents and communities, and other sectors concerned shall identifY and prioritize 
II 


.-
forestlands to be reforested. An accelerated reforestation program in such identified 
priority protection forestlands shall be undertaken to raise the forest cover to at least 
fifty percent (50%) within five (5) years and to at least eighty percent (80%) within ten 
(10) years from the effectivity of this Act. The Department shall allot funds to effectively 
accomplish reforestation either by itself or through contract. The Department or other 
agencies responsible for reforestation shall give priority to local communities in the 
granting of technical and financial assistance for reforestation activities. 
SEC. 21. Forest Plantation Development in Production Forestlands. - In 
accordance with Section 40, the State, through the Department, may enter into joint 
venture, co-production or production sharing agreement with qualified forest 
community organizations, LGUs, government-owned or -controlled corporations, 
private companies, individuals and other interested parties concerned in the 
development of forest plantations in production forestlands: Provided, That any portion 
of the production forestland identified by the Department as needed for protection and 
rehabilitation purposes shall not be converted into forest plantations. 
SEC. 22. Reforestation in Forestlands under the Jurisdiction of Other 
Government Agencies. - Government agencies and institutions having management 
control over forestlands pursuant to a law or grant shall be responsible for the 
reforestation of denuded and degraded portions of such forestlands. The reforestation 
program of these agencies shall aim to increase the vegetation of the degraded areas, to 
be identified jointly by the Department and the agency c.oncerned, by fifty percent 
(50%) within the first five (5) years and at least eighty percent (80%) within ten (10) 
years from the effectivity of this Act. The concerned agency in coordination with the 
Department shall prepare the reforestation plan and determine the ratio of forested 
areas at any given time. Failure to reforest denuded and I or degraded forestland 
identified in the reforestation plan within the period prescribed shall be sufficient 
ground to request f.or reversion of the said forestlands to the jurisdiction and control of 
the Department: Provided, however, That in areas where CBFMS shall be implemented or 
where there are existing facilities for basic services such as water and power as allowed 
by the Department pursuant to Section 40, the completion of the reforestation program 
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. 23. Rejorestation and Afforestation in Alienable and Disposable Lands or 
Private Lands. - Reforestation and afforestation or the establishment of tree farms or 
forest plantations in alienable and disposable lands or private lands shall be 
encouraged. The private landowner(s) shall also be entitled to the incentives provided 
for under Section 24, particularly subsections (a), (b), (c), (d) and (e): Provided, That such 
private forest plantations are duly registered with the Department. 
SEC. 24. Tax Incentives. - The following tax incentives shall be granted to 
qualified persons engaged in forest plantation activities: 
(a) Expenses incurred in complying with the requirements of this Act shall be allowed 
as deductible expenses for income tax purposes subject to the provisions of the National 
Internal Revenue Code (NIRC) of 1997, as amended: Provided, That the deduction shall 
only apply to the taxable period when the expenses were incurred; 
(b) Incentives granted to registered domestic enterprise under the Investments Priorities 
Plan (IPP); and 
12 


(c) Exemption from the payment afforest charges imposed under the provisions of this 
Act. 
To encourage qualified persons to engage in forest plantation activities, the following 
incentives shall be granted in addition to those already provided by existing laws: 
(1) The agreement holder shall not be subject to any obligation, prescribed in or 
arising out of the provisions of the National Internal Revenue Code, on withholding tax 
at source upon interest paid on loans incurred for the development and operation of 
forest plantation; 
(2) Amounts expended by the agreement holder in the development and 
operation of a forest plantation prior to the commercial harvest shall be regarded as 
ordinary and necessary expenses or as capital expenditure; 
(3) The Board of Investments shall classify forest plantations as pioneer and 
preferred areas of investment under its annual priority plan, subject to pertinent rules 
and regulations; 
(4) The agreement holder shall be given priority to access credit assistance being 
granted by government-owned, -controlled and/ or -supported financial institutions; 
(5) Upon the premature termination of the agreement at no fault of the holder, all 
depreciable permanent and semi-permanent improvements. such as roads, buildings 
and nurseries, including the planted and standing trees and other forest crops 
introduced and to be retained in the area, shall be properly evaluated and the holder 
shall be entitled to a fair compensation thereof, the amount of which shall be mutually 
agreed upon by both the Department and the agreement holder and, in case of 
disagreement between them, by arbitration through a mutually acceptable and 
impartial third party adjudicator; 
(6) Exemption from Forest Charges and Expanded Value-Added Tax; 
(7) Exemption afforest plantation from payment of real property; 
(8) No termination of contract or agreement except for cause or for reason of 
public interest and only after due process; and 
(9) The agreement holder has the right to transfer, contract, sell or convey his 
rights to any qualified person following the guidelines to be issued by the Secretary. 
The Secretary may provide or recommend to the President or to Congress other 
incentives in addition to those granted in this Act and in existing laws in order to 
promote reforestation and the establishment of forest plantations. 
SEC. 25. Voluntary Offer to Reforest. - Private landowners, whether natural or 
juridical persons, may participate in reforestation and forest plantation development or 
similar programs of the Department, with the landowner contributing his land and the 
Department providing funds in accordance with Section 55 to reforest the area on a co-
production agreement: Provided, That the property shall be exclusively devoted to the 
planting of forest species for at least one (1) rotation, which undertaking shall be 
annotated at the back of the title of the property. 
CHAPTER VII 
URBAN FORESTRy/COMMUNAL FOREST 
SEC. 26. Establishment of City or Municipal Parks and/or Communal Forest. -
Every city or municipality shall establish a city or municipal park or communal forest 
and shall include in its annual budget the necessary funds for its establishment and 
maintenance. Upon request by a city or municipality concerned, the Department shall 
set aside an appropriate area of the.public forestlands as city or municipal park and/ or 
13 


communal forest and shall provide technical assistance to the local government 
concerned in the development of the park or communal forest. 
SEC. 27. 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 qf a tree park of not less than fifty percent (50%) of the 
required total open spaces as provided in Section 2 of Pre 'Side ntia I Decree No. 953, 
requiring the planting of trees in certain places. The guidelines for the establishment of 
tree parks within a subdivision shall be prepared jointly by the subdivision owner 
concerned, the Housing and Land Use Regulatory Board (HLURB) and the Department. 
The subdivision owner shall provide the funds for this purpose. For every major public 
road or irrigation construction project, the Department of Public Works and Highways 
(DPWH) shall include the planting and maintenance of trees along the road/highway 
or irrigation canals as landscaped rest areas every twenty-five (25) kilometers thereof 
and shall provide adequate funds for this purpose. 
Each city or municipality shall also allocate adequate funds for the planting, care and 
maintenance of trees or perennial shrubs in "greenbelts" or "green spaces" such as 
road/ street sides, center islands, etc. 
CHAPTER VIII 
FOREST PROTECTION 
SEC. 28. Commercial Logging Ban. - There shall be a permanent ban on 
commercial logging activities in all protection forestlands defined, categorized and 
subclassified in Section 5(a). No license, permit or agreement to cut any timber within a 
protection forestland shall be issued. 
Portions of the production forestlands identified by the Department for protection 
purposes shall be excluded from any form of logging operations and the holder of the 
agreement or license shall establish a buffer zone and delineate their boundaries with 
the production forestlands, marking the same with concrete monuments, road or 
• 
. infrastructure, or any other visible, permanent and practicable signs. 
To ensure the conservation and sustainable use of forest resources, holders of timber 
licenses, leases and permits shall submit to the Department an Integrated Operations 
Plan (lOP) containing strict environmental guidelines such as ECC compliance. All 
forest development activities such as logging, reforestation, timber stand improvement, 
forest protection and delivery of community service within an area covered by timber 
concessions shall be consolidated under the lOP, which shall be prepared by or under 
the supervision of an accredited private registered forester whose signature and dry 
seal shall appear in the plan and the supporting documents submitted for the purpose. 
Upon its expiration or termination for cause, no extension shall be made on any TLA 
and the area covered by the agreement shall be converted into any mode pursuant to 
Section 40, including degraded areas that may be subject of a reforestation or tree 
plantation project. 
SEC. 29. 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. 
14 


The Secretary of Justice shall designate in every city and province a special prosecutor 
who shall immediately file charges against forest violators to ensure their speedy 
prosecution. 
SEC. 30. Multi-sectoral Forest Protection Council. - There shall be created a 
multi-sectoral forest protection council in every province, city and municipality which 
shall be responsible for law enforcement, prevention of forest fires, integrated pest 
management and protection against forest invasive species. The council shall be 
composed of representatives from, but not limited to, the Department, concerned LGU, 
NGOs, people's organizations, church and local academic institutions. 
SEC. 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 may be deputized by the 
Department to assist in the drive against illegal logging, kaingin-making and forestland 
occupation. These deputized residents shall likewise be authorized to arrest forest 
violators within their communities, subject to existing laws and regulations on arrest 
and detention. 
SEC. 32. Prevention of Forest Fires and Control of Forest Pests and Diseases. - In 
collaboration with concerned LGUs, the Department shall formulate and implement a 
forest fire management and control program. The Department shall likewise formulate 
and implement a national integrated forest pest and disease management program 
including quarantine procedures for imported seeds, forest plants and plant products 
as well as wildlife to prevent or control forest or wildlife pests and diseases. 
SEC. 33. Informatian and Rewards System. - The Department shall establish an 
information and rewards system as part of the community's participation in the 
protection of forest resources. 
CHAPTER IX 
FORESTRY RESEARCH, EDUCATION, TRAINING AND EXTENSION 
SEC. 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 colleges of 
forestry of state universities shall, within one (1) year from the passage of this Act, 
prepare a comprehensive national forestry and environmental research and technology 
development and transfer program in furtherance of sustainable forest management 
which shall be implemented, monitored and reviewed in accordance with existing 
research management systems. Adequate and sustainable funds to implement a 
research and technology development and transfer program shall be proVided by each 
of the aforementioned agencies and institutions under the General Appropriations Act. 
SEC. 35. Public Information, Education and Advocacy Campaign. - With the 
support from LGUs, NGOs, med'ia and other organizations, the Department, the 
Philippine Information Agency (PIA), the Department of Education (DepEd), the 
CHED, State-owned and private universities and colleges shall formulate and 
implement a nationwide program for sustained public information and advocacy 
campaign for forest and natural resources conservation and sustainable forest 
development and management. The DepEd shall include subjects on forest and natural 
15 


resources in the curricula for elementary and high school education. The CHED shall 
likewise include ecology and environment courses in the general education curricula. 
The Department shall undertake a systematic campaign to promote community 
ecological awareness, including the preparation of informational and educational 
materials therefore. 
SEC. 36. Formal Forestry Education. - The CHED, in collaboration with the 
Department, the Board of Examiners for Foresters of the Professional Regulation 
Commission (PRC) and the duly accredited national professional foresters organization 
shall actively pursue the rationalization of formal forestry education and the 
establishment of centers of excellence in forestry and environmental education to ensure 
high quality manpower output to meet the needs of the forestry sector. 
SEC. 37. Continuing Education on Forestry. - A non-formal program of 
continUing education shall be established to maintain the growth of the forestry 
profession. The PRC Board of Examiners for Foresters and the Civil Service 
Commission (CSC) shall provide the guidelines for a program in continuing education 
in forestry. In cooperation with academic institutions, the Department shall develop the 
infrastructures to institutionalize non-formal continuing education for the forestry 
sector. 
SEC. 38. Training Centers. - In coordination with the TESDA, the DepEd, the 
CHED and state universities and colleges (SUCs), the Department shall establish and 
institutionalize a network of training centers in strategic parts of the country to provide 
regular and up-to-date 
training on the various aspects of sustainable forest 
management, development and utilization 
to forest officers, LGUs, NGOs, local 
communities and IPs. Furthermqre, the Department shall ensure that personnel 
appointed to critical and sensitive positions undergo training to prepare them to 
discharge their duties and responsibilities profeSSionally, efficiently and effectively. 
SEC. 39. Forestry Development Center. - The Forestry Development Center 
(FDC) based in the College of Forestry and Natural Resources, University of the 
Philippines at Los Banos shall continue to serve as the primary policy research and 
development center for forestry and natural resources management. The FDC shall 
perform its functions in close coordination with the Department and other policy 
research institutions in the country. It shall assist the Department in the formulation, 
review and evaluation of proposed and existing policies on forestry and natural 
resources management. To enable the Center to carry out its mandated functions, the 
Center shall have a share of the Sustainable Forestry Development Fund pursuant to 
Section 55 in the conduct of its mandated functions of policy research. 
CHAPTER X 
DISPOSITION AND UTILIZATION OF FOREST RESOURCES 
SEC. 40. Modes of Forest Management Agreement. - The development, utilization 
and 6 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 IPs through their organized and duly recognized 
associations shall be given priority in the grant of appropriate tenurial instruments 
implementing the said agreements. Such tenurial instruments and/ or agreements shall 
16 


have a duration of twenty-five (25) years, renewable for another twenty-five (25) years, 
under such terms and conditions as may be provided by the Secretary: Provided, furtlIer, 
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 20 expiry shall be allowed to be converted into any mode authorized in this Act 
under the guidelines promulgated by the Secretary: Provided, That no such conversion 
shall be allowed in protection forestlands as defined in Section 5, and on 
subclassification offorestlands. 
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 Depatiment may enter into a forest management agreement 
with the service contractor in the area. Such agreement shall have a duration of twenty-
five (25) years, renewable for another twenty-five (25) years, under such terms and 
conditions agreed upon by both parties: 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 of Rights Arising Out of Agreements, Contracts or Similar 
Instruments. - The transfer of rights arising out of any forest management agreement, 
contract or similar instrument with the government may be authorized by the 
Department: Provided, That the agreement, contract or similar instrument has been in 
existence and active for at least three (3) consecutive years from its issuance: Provided, 
further, That the transferor has faithfully complied with the terms and conditions of the 
said agreement, contract or similar instrument; the transferee has all the qualifications 
and none of the disqualifications to hold the same; and the transferee shall assume the 
obligations of the transferor. 
Failure to comply with these conditions shall be sufficient cause for the cancellation of 
the agreement, contract or similar instrument. 
SEC. 42. Non-Timber Forest Products. - Rattan, bamboos, vines, herbs, exudates 
and other non-wood forest products are integral parts of the forest ecosystem. The 
establishment of plantations of non-timber producing species shall be encouraged and 
supported. The 
development, management and utilization of non-timber forest 
products shall be allowed in accoraance 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 IPs living nearest the subject 
forestlands. 
SEC. 43. Silvicultural and Harvesting System. - The Department shall formulate 
the appropriate silvicultural and harvesting system and all measures shall be taken to 
achieve an 
approximate balance between growth and harvest or use of forest products in 
production forestland shall be promoted and practiced. 
17 


SEC. 44. 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, jurther, 
That existing pasture lease agreements or forestland grazing lease agreements shall be 
allowed to continue under the same terms and cqnditions until their expiry: Provided, 
finally, That abandoned or idle, expired or cancelled grazing or pasture lands shall be 
subject to a land-use capability assessment to determine their best use or combination of 
uses. No new grazing or pasture 10 permit, lease or contract shall be issued, nor eXisting 
ones allowed to continue unless covered by eXisting rules and regulations governing 
the Philippine ErS System. 
SEC. 45. 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 ErS System. 
SEC. 46. Roads and Other Infrastructure. - Roads and other infrastructure 
including the development of mineral reservations and energy resources inside 
forestlands shall be constructed with the least impairment to the resource values found 
in such forestlands. Government. agencies and their contractors undertaking the 
construction of roads, bridges, communication and other infrastructure facilities and 
installations inside forestlands shall seek prior authority from the Department and shall 
comply with the provisions of this Act and existing rules and regulations governing the 
Philippine ErS System. 
CHAPTER XI 
FOREST-BASED INDUSTRIES 
SEC. 47. Establishment and Operations of Forest-based Industries. - To meet the 
demands for forest-based goods and services of a growing population, the State, 
through the Department, shall promote and rationalize the establishment, operations 
and development of forest-based industries. 
SEC. 48. Incentives for Forest-based Industries. - To enable forest-based 
industries to be more efficient, competitive and economically viable, the following 
incentives are hereby granted in addition to those already provided by existing laws: 
(a) All processing plants or mills shall be assured of their supply of raw materials, 
preferably but not exclusively from local sources; 
(b) All processing plants or mills shall be granted operating permits for five (5) years, 
renewable every five (5) years for the same period: Provided, That permits for processing 
plants owned or operated by holders of forest management agreements or contracts 
shall be co-terminus with said agreements or contracts; and 
(c) The Department shall promote and strengthen the linkages among corporate, family-
based and community-based industries. 
The Department may provide on its own, or propose to the President of the 
Philippines or to Congress, other incentives to encourage the establishment and 
development of corporate, family and community forest-based industries. Agreements 
or licenses over forest areas granted to wood-based plants shall be converted into any 
18 


mode authorized in this Act. 
Expansion in capacity of wood-based plants shall be encouraged and the same 
shall be given priority access to production forestlands and other areas available for 
development as source of raw materials. 
SEC. 49. Export and Sale of Locally Produced Wood Products. - Logs derived 
from natural grown trees of whatever species cut, gathered or removed from the local 
natural forest and raw or rough lumber manufactured from such logs shall not be 
exported except finished and semi-finished lumber products, wood manufactures, 
wood panels and other finished wood products from such logs, subject to such 
guidelines as the Secretary may promulgate. 
No person shall sell or offer for sale any log, lumber, veneer, plywood or other 
manufactured wood products in the international or domestic market without 
complying with the grading rules established or to be established by the government. 
Failure to adhere to the established grading rules and standards or any act of 
falsification on the volume of logs, lumber, veneer, plywood or other wood products 
sold in the international or domestic market shall be sufficient cause for the cancellation 
of export license, wood processing permit or other license or permit authorizing the 
manufacture or sale of such products. 
SEC. 50. Importation and Sale of Logs and Other Forest and Wood Products. -
Logs, lumber and other forest and wood-based products may be imported to the 
country subject to the registration requirements of the Department, payment of tariff 
and duties imposed under the Tariff and Customs Code, and quarantine regulations. 
Any product manufactured or re-manufactured out of the imported forest and wood 
materials may be sold in the domestic or international market subject to compliance 
with the grading rules and standards. 
CHAPTER XII 
FOREST CHARGES, FEES AND GOVERNMENT SHARES 
SEC. 51. Fees and Government Shares for the Utilization, Exploitation, 
Occupation, Possession and Activities Within Forestlands. - The Department shall 
prescribe appropriate fees and government shares for the different kinds of utilization, 
exploitation, occupation, possession or activities within forestlands: Provided, That 
payment of or collection of such fees and government shares shall be waived for parties 
or industries mandated by law to manage, conserve, develop and protect forestlands 
and forest resources, except administrative fees for the filing and processing of 
applications for the issuance and renewal of licenses, permits and agreements: Provided, 
jurther, That watershed administrators and/ or service contractors that have forest 
management agreements with the Department as provided for under Section 40 of this 
Act shall also be entitled to the waiver of fees, except administrative fees. 
The Department shall recommend to Congress appropriate and equitable fees for the 
use of water and forest for power generation, irrigation, domestic and industrial, and 
for carbon sequestration and biodiversity benefits, respectively, by parties/industries 
concerned. 
SEC. 52. Forest Charges. - There shall be collected a forest charge per cubic meter 
based on the actual freight on board (FOB) market price based on species and diameter 
class by the Department on the following: 
19 


, 
(a) Timber - twenty-five percent (25%); 
(b) Pulpwood and matchwood - ten percent (10%); 
(c) Firewood, branches and other recoverable wood wastes of timber such as timber 
ends, tops and stumps when used as raw materials for the manufacture of finished 
products - ten percent (10%); and 
(d) Non-timber forest products - ten percent (10%). 
These forest charges shall be applied to naturally growing timber and non-timber forest 
products gathered within forestlands, alienable and disposable lands, and private lands. 
For the above purpose, the measurement and the actual FOB market price of forest 
products shall be justly determined by the Department, which shall likewise provide for 
the time, manner and place of payment of such charges. 
SEC. 53. Fees for Administrative Services Rendered by the Department. - Fees 
shall be collected for various services rendered by personnel of the Department in 
connection with their duties and .responsibilities as may be requested by interested 
parties including, but not limited to, surveying, mapping and other similar service 
activities: Provided, That administrative fees shall be waived for services rendered to 
local communities or IPs in the preparation of their management plans. 
CHAPTER XIII 
APPROPRIATIONS AND FINANCIAL SUPPORT 
SEC. 54. Appropriations. - The Secretary of the Department of Environment and 
Natural Resources (DENR) shall include in the Department's program and issue such 
rules and regulations for the implementation of the provisions of this Act, the initial 
funding of which shall be charged against the current year's appropriations of the 
Department and thereafter included in the annual General Appropriations Act. For 
LGUs, the funding requirements shall be taken from their Internal Revenue Allotment 
and other LGU income. 
SEC. 55. Sustainable Forestry Development Fund - A Sustainable Forestry 
Development Fund (SFDF) to be administered by the Department as a special account 
in the National Treasury is hereby established to provide sustainable funds for forest 
protection, reforestation and forest development and management, including the 
rehabilitation and preservation of watershed areas, CBFM program, information and 
educational campaigns as well as scholarship programs and policy research. At least 
thirty percent (30%) of the forest charges and government share in all products 
removed from the forestlands, rentals, proceeds from sales of confiscated forest 
products including conveyances, fines and penalties, and administrative fees collected 
shall be set aside for the buildup of the SFDF. The fund may be augmented by grants, 
donations, endowment from various sources, domestic or foreign, for purposes related 
to their functions and other innovative funding mechanisms such as securitization of 
forest assets, among others. 
Disbursements from the fund shall be subject to the usual accounting and 
budgeting rules and regulations: Provided, That no amount shall be disbursed to cover 
the operating expenses of the Department and other concerned agencies. 
A trust fund committee, composed of the Secretary as Chair and the Secretary of 
the Department of Budget and Management, the DILG Secretary and the National 
Treasurer or their representatives shall sit as members and manage the SFDF, with the 
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FMB as secretariat. 
CHAPTER XIV 
CRIMINAL OFFENSES AND PENALTIES 
SEC. 56. Harvesting. Gathering and/or Collecting Timber or Other Forest 
Products Without Authority. - Any person who shall harvest, cut, gather, collect or 
remove timber or other forest products from any forestland, or naturally grown timber 
inside alienable and disposable public land except as provided in Section 9, without 
authority from the Secretary or found to possess the same without pertinent required 
legal documents shall be punished by imprisonment ranging from prision mayor 
minimum period to reclusion temporal minimum period and/ or a fine equivalent to ten 
(10) times the value of the said forest product. Provided, That in the case of partnerships, 
associations or corporations, the president, managing partner and general manager 
shall be held liable and, if such officer is an alien, he shall, in addition to the penalty, be 
deported without further proceedings on the part of the Bureau of Immigration. 
Offenders who are public officials shall be deemed automatically dismissed from office 
and permanently disqualified from holding any elective or appointive position. 
All timber or any forest products cut, gathered, collected, removed or possessed and all 
the conveyances, machinery, equipment, implements, work animals and tools used in 
connection with this violation shall be seized and confiscated in favor of the 
government. 
SEC. 57. Illegal Cutting as an Act of Economic Sabotage. - Any of the acts 
enumerated in the preceding section committed by an armed group or by any group, 
through organized and systematic manner, for commercial purposes, shall be 
considered an act of economic sabotage punishable by reclusion perpetua. The 
commission of any of the prohibited acts by two (2) or more individuals with or without 
the aid of any mechanical device shall constitute a prima facie evidence that the act is 
organized and systematic. 
Any licensed timber concessionaire who shall buy logs from unlicensed loggers or 
loggers operating without permits shall be considered in violation of this Act and, upon 
conviction, shall also be punished with reclusion perpetua. 
SEC. 58. 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 were obtained from 
legitimate sources. The use of illegally cut naturally grown timber in government 
infrastructure projects shall be sufficient cause for the imposition of penalties provided 
in Section 56, on harvesting of forest products without authority, and Section 57, on 
illegal cutting as an act of economic sabotage, including the withholding of the payment 
to the contractor. 
SEC. 59. 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. 
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• 
SEC. 60. Grazing Livestock on Forestlands Without a Permit. - Any person 
found to have caused the grazing of livestock in forestlands and grazing lands without 
an authority under a lease or permit to graze, upon conviction, shall be penalized with 
imprisonment of not less than two (2) years nor more than four (4) years and a fine 
equivalent to ten (10) times the regular shares due in addition to confiscation of the 
livestock and all improvements introduced in the area in favor of the government: 
Provided, That in case the offender is a corporation, partnership or association, the 
officer or director thereof who directly caused or ordered such shall be liable. In case the 
offender is a public officer or employee, he shall, in addition to the above penalties, be 
deemed automatically dismissed from office and permanently disqualified from 
holding any elective or appointive position in the government service. 
SEC. 61. Unlawful Occupation or Destruction of Forestlands. - Any person who, 
without authority from the Secretary, enters and occupies or possesses, or engages in 
kaingin or slash-and-burn farming and related activities for his private use Or for 
others, any forestland or grazing land, or in any manner destroys such forestland or 
part thereof, or causes any damage to the timber stands and other forest products or 
assists, aids or abets another person to do so, or sets a fire or negligently permits a.fire 
to be set, or refuses lawful orders to vacate the area when ordered to do so shall, upon 
conviction, be punished with penalties in the amount of not less than One hundred 
thousand pesos (PI00,OOO.OO) nor more than Five hundred thousand pesos 
(P500,OOO.OO) and imprisonment of not less than six (6) years and one (1) day nor 
more than twelve (12) years for each offense: Provided, That in the case of an offender 
found guilty of making kaingin or slash-and-burn farming, the penalty shall be 
imprisonment of not less than ten (10) years nor more than twelve (12) years and a fine 
equivalent to ten (10) times the regular forest charges due on the forest products 
destroyed without prejudice to payment of the full cost of rehabilitation of the occupied 
areas as determined by the Department: Provided, further, That the maximum of the 
penalty prescribed shall be imposed upon the offender who repeats the same offense, 
and double the maximum penalty upon the offender who commits the same offense for 
the third (3rd) time or more. 
In all cases, the court shall further order the eviction of the offender from the area 
occupied and the forfeiture to the government of all improvements introduced, 
including all vehicles, domestic animals and equipment of any kind used in the 
commission of the offense. 
If not suitable for use by the Department, said improvements, vehicles, domestic 
animals and equipment shall be sold at public auction, the proceeds from which shall 
accrue to the SFDF. If the offender is an alien, he shall be deported after serving his 
sentence and payment of fines, without any further proceedings. An offender who is a 
government officer or employee shall, in addition to the above penalties, be deemed 
automatically dismissed from office and permanently disqualified from holding any 
elective or appointive position in the government service. 
SEC. 62. Illegal Conversion of City or Municipal Parks, Communal Forests and 
Tree Parks in Subdivisions. - Any person found to have converted or caused the 
conversion of a 
city or municipaJ park or communal forest, or tree parks within 
subdivisions established pursuant to Section 26 and Section 27 of this Act, and Section 2 
of Presidential Decree No. 953, requiring the planting of trees in certain places, into 
other uses including the construction of permanent buildings, or in any manner 
destroys or causes any damage to the timber stands and other forest products or assists, 
aids or abets another person to do so, or sets a fire or negligently permits a fire to be set, 
22 


upon conviction, shall be penalized by imprisonment of six (6) years and one (1) day to 
twelve (12) years or a fine of not less than One hundred thousand pesos 
(PIOO,OOO.OO) nor more than Five hundred thousand pesos (P500,OOO.OO), or both 
fine and imprisonment, at the discretion of the court. The offender shall likewise be 
imposed a fine equivalent to ten (10) times the commercial value of the forest products 
destroyed without prejudice to payment of the full cost of rehabilitation of the areas as 
determined by the Department: Provided, further, That the maximum of the penalty 
prescribed shall be imposed upon the offender who repeats the same offense, and 
double the maximum penalty upon the offender who commits the same offense for the 
third time or more. The court shall further order the forfeiture to the government of all 
improvements, including all vehicles, domestic animals and equipment of any kind 
used in the commission of the offense. If not suitable for use by the Department, said 
improvements, vehicles, domestic animals and equipment shall be sold at a public 
auction, the proceeds from which shall accrue to the SFDF. 
An offender who is a government officer or employee, in addition to the above 
penalties, upon conviction, shall be deemed automatically dismissed from office and 
permanently disqualified from holding any elective or appointive position in the 
government service. 
SEC. 63. Misdeclaration or Falsification of Reports on Forest Resource 
Inventory, Scaling and Survey by a Government Official or Employee. - Any public 
officer or employee who knowingly misdeclares or falsifies reports pertaining to forest 
resource inventory, scaling, survey and other similar activity which are contrary to the 
criteria and standards established in the rules and regulations promulgated by the 
Secretary therefore, after an appropriate administrative proceeding, shall be dismissed 
from the service with prejudice tQ 
reemployment. Upon conviction by a court of 
competent jurisdiction, the same public officer or employee shall further suffer an 
imprisonment of not less than eight (8) years nor more than twelve (12) years and a fine 
of not less than One hundred thousand pesos (PIOO,OOO.OO) nor more than Five 
hundred thousand pesos (P500,OOO.OO). The inventory, survey, scale, classification 
and similar reports referred in this section shall be rendered null and void. 
SEC. 64. Unlawful Operation <1 Wood Processing Plants and Downstream 
Forest-based Industries. -
Any person operating a wood processing plant or 
downstream forest-based industry without authority from the Secretary shall be 
punished by, upon conviction by a court of competent jurisdiction, imprisonment of not 
less than eight (8) years nor more than twelve (12) years and a fine of not less than Five 
hundred thousand pesos (P500,OOO.OO) and confiscation of the wood processing 
plant and complementary equipment in favor of the government. The Department shall 
promulgate the necessary guidelines, subject to the provision of this Act, that will 
define the terms and conditions, including the responsibility for a person who will 
operate and operating a wood processing plant and I or other downstream forest-based 
industries. 
SEC. 65. Prohibition on the Issuance of Tax Declaration on Forestlands. - Any 
tax declaration issued over forestlands shall be considered null and void. 
Any local government official or employee who issues a tax declaration for any purpose 
on any part of forestlands, upon conviction, shall be penalized with imprisonment for a 
period of not less than four (4) years nor more than eight (8) years and a fine of not less 
than One hundred thousand pesos (PIOO,OOO.OO) nor more than Five hundred 
thousand pesos (P500,OOO.oO) and the perpetual disqualification from holding an 
23 


elective or appointive office. 
SEC 66. Unlawful Possession of Implements and Devices Used by Forest 
Officers. - Any person found possessing or using implements and devices used by 
forest officers shall be penalized with imprisonment of not less than eight (8) years nor 
more than twelve (12) years and a fine of not less than One hundred thousand pesos 
(PIOO,OOO.OO) nor more than Five hundred thousand pesos (P500,000.00) in addition 
to the confiscation of such implements and devices and the automatic cancellation of 
any agreement, license, lease or permit. 
Any forest officer who willingly allowed unauthorized person(s) to use these 
implements and devices under his/her care shall be penalized with imprisonment of 
not less than six (6) years and one (1) day to not more than twelve (12) years and a fine 
of not less than One hundred thousand pesos (PlOO,OOO.oO) nor more than Five 
hundred thousand pesos (P500,OOO.OO). In addition, the convicted forest officer shall 
be dismissed from the service 
with prejudice to reinstatement and with perpetual disqualification from holding an 
elective or appointive position. 
SEC 67. Unauthorized Introduction of Logging Tools and Equipment Inside 
Forestlands. -It shall be unlawful for any person or entity to possess, bring or introduce 
any logging tools or equipment inside forestlands without prior authority from the 
Secretary or his duly authorized representative. Any person found guilty of illegal 
possession of said logging tools or equipment shall be liable to imprisonment of six (6) 
years and one (1) day to twelve (12) years or a fine of not less than One hundred 
thousand pesos (PlOO,OOO.OO) 
nor more than Five hundred thousand pesos 
(P500,OOO.OO), or both imprisonment and fine, at the discretion of the court and the 
confiscation of said logging tools and equipment in favor of the government. 
SEC 68. Nonpayment and Non-remittance of Forest Charges. - Any person who 
fails to pay the amount due and payable as forest charges to the government shall not 
be allowed to transport, convey, sell nor use the timber or forest product. Moreover, 
failure to pay within thirty (30) days upon assessment of forest charges shall be a 
ground for confiscation of the said timber or forest product in favor of the government. 
Any person who fails or refuses to remit to the proper authorities said forest charges 
collectible pursuant to the provisions of this Act or the National Internal Revenue Code, 
as amended, or who delays, obstructs or prevents the same or who orders, causes or 
effects the transfer or diversion of the funds for purposes other than those specified in 
said Acts shall, upon conviction, be imprisoned for not less than six (6) years nor more 
than twelve (12) years and fined from One hundred thousand pesos (PI00,OOO.OO) 
to Five hundred thousand pesos (P500,OOO.OO) in addition to the payment of the 
assessed forest charges. If the offender is a corporation, partnership or association, the 
• 
officers and directors thereof shall be liable. 
SEC 69.lnstitution 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 
24 


.. 
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. 70. Liability of the Custodian of Confiscated Forest Products. - Any public 
officer who fails to produce the timber or forest products, including tools, conveyances, 
equipment and devices in his custody pursuant to a seizure or confiscation made 
thereon, or who shall appropriate, take, misappropriate, or shall permit another person 
to take such timber or forest products wholly or partially, shall suffer the penalty 
provided for malversation of public funds or property under the Revised Penal Code. 
In addition, the said public officer shall be dismissed from the service with prejudice to 
reinstatement and with perpetual disqualification from holding any elective or 
appointive office. 
CHAPTER XV 
ADMINISTRATIVE PROVISIONS 
SEC. 71. Strengthening of the Forest Management Sector. - In order to effectively 
implement the provisions of this Act, the FMB shall be transformed into a line bureau 
with functions clearly defined and enumerated under the implementing rules and 
regulations of this Act. To ensure that the scientific practice of forestry in the country is 
properly implemented, only registered foresters shall be appointed to the positions of 
director and assistant director and regional directors of the FMB, as well as to all other 
positions where the services of professional foresters are required in accordance with 
eXisting laws and the relevant rules and regulations issued by the CSC and the PRe. 
SEC. 72. Development of Mechanisms for Private Sector Participation in Forest 
Management. - The Secretary is hereby authorized to adopt appropriate mechanisms to 
strengthen private sector participation in forest management, which shall include the 
accreditation of a national organization of private investors including for profit, NCOs 
and people's organizations. The accredited national organization shall'assist the 
Department in the formulation and review of relevant policies to ensure the 
contribution of the forestry sector to national economy and sustainable development. It 
shall also assist the Department in evaluating applications for forest management 
agreements; monitoring the performance of holders of commercial tenurial instruments; 
ensuring the local supply of timber and wood products; providing producers with 
access to local and international markets; and ensuring the conservation and 
preservation of protection forestlands and protected areas under the NIP AS Act. 
25 


.. 
Sec. 73. Authority of the ~ecretary on the Use of Forest Resources. - The 
utilization of forest resources from natural forests found in forestlands, government-
established reservations and all other lands including ancestral domains or under the 
management of other government agencies shall be prohibited unless covered by 
permits issued by the Department, in consultation with other concerned government 
agencies: Provided, That in the case of ancestral lands and domains, the terms of the 
agreement with the concerned ICC shall likewise govern. 
SEC.74. Administrative Authority of the Secretary or his/her 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/her duly authorized 
representative may order the confiscation of forest products illegally harvested, cut, 
gathered, removed or possessed or abandoned, and all conveyances used either by 
land, water or air as welLas all machinery, equipment, implements and tools used in the 
commission of the offense and to dispose of the same in accordance with pertinent laws, 
regulations or policies on the matter. If the confiscated forest products are in danger of 
deteriorating, the Secretary may order that the same be sold at public auction even 
before the termination of the judicial proceedings, with the proceeds kept in trust to 
await the outcome of the judicial proceedings. No court of the Philippines shall have 
jurisdiction to issue any Writ of Replevin, restraining order or preliminary mandatory 
injunction in any case involving or growing out of any action by the Secretary or 
his/her duly authorized representative in the exercise of the foregoing administrative 
authority. 
SEC. 75.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. 76. Authority of Forest Officers. - When in the performance of their official 
duties, forest officers or other government officials or employees, duly authorized by 
the Secretary, shall have free entry into areas covered by a contract, agreement, license, 
lease or permit. Forest officers are authorized to inspect and to open closed vans 
suspected to contain illegally harvested, collected or transported forest products: 
Provided, That it is done in the presence of the shipper or consignee or two (2) 
responsible public officials in the locality. Forest officers are authorized to administer 
oath, take acknowledgment in official matters connected with the functions of their 
office or take testimony in official investigations conducted under the authority of this 
Act and the implementing rules and regulations issued by the Secretary pursuant 
thereto. 
SEC. 77. Visitorial Functions. - The Secretary or his/her duly authorized 
representative shall, from time to time, investigate, inspect and examine records and 
other documents except bank records related to the operation of any person 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. 78. Other Incentives. - Fifty percent (50%) of the value of confiscated 
materials shall be used as incentives to informants and members of multi-sectoral forest 
protection councils, including Department personnel. Additional incentives may be 
26 


• 
provided to personnel of the Department, in addition to those provided under the 
Government Service Insurance System (GSIS) or the Workmen's Compensation Law. 
They shall also be entitled to free legal assistance should legal cases be filed against 
them in the performance of official duties. 
SEC. 79. Protection to Witnesses in Cases Involving Violation of Forestry Laws. 
- Witnesses to violations of this Act or other forestry laws and regulations, including the 
immediate members of the family of said witnesses, shall be given protection, security 
and benefit, subject to the provisions of Republic Act No. 6981, otherwise known as 
"The Witness Protection, Security and Benefit Act" and its implementing rules and 
regulations. 
SEC. 80. Rule-making Authority. - The Department shall promulgate the 
implementing rules and regulations within one (1) year from the effectivity of this Act, 
in consultation with the NCIP, the DILG, the Department of Finance, the leagues of 
provinces, cities and municipalities, and other government agencies. 
SEC. 81. 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. 82. Transitory Provision. - Upon the approval of this Act, the Department 
shall evaluate the conditions of all forestlands covered by existing tenurial instruments, 
memoranda of agreements (MOAs) and other agreements and contracts which shall be 
allowed to continue until their expiry unless terminated for cause. 
CHAPTER XVI 
FINAL PROVISIONS 
SEC. 83. Separability Clause. - Should any provision of this Act be declared 
unconstitutional or invalid, the same shall not affect the validity or legality of the other 
provisions. 
SEC. 84. Repealing Clause. - Subsections (b), (d), (e), (I), (g) and (i) of Section 4 of 
Act No. 3915; Republic Act No. 460; Presidential Decrees Numbered 705,1153, ISIS, 1559 
and 1775; Letter of Instruction No. 818; Executive Orders Numbered 277 and 278, series 
of 1987; and Executive Order No. 725, series of 1981 are hereby repealed, and all laws, 
orders, rules and regulations or any part thereof which are inconsistent herewith are 
likewise hereby repealed or amended accordingly. 
SEC. 85. 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, 
27