SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
S. No.-3Jl 
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·JUL --I 
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-------_._-----------------.----------------------------------------------------------------------------------
Introduced by SENATOR PIA S. CAYETANO 
---------------------------_ ..• _----------------------.------------------------------------------------------
EXPLANATORY NOTE 
Forests play an important role in providing the country with natural 
resources that contribute to economic growth and social development. These 
forests also provide livelihood through raw materials that will be converted into 
finished products. 
Apart from the economic benefits, forests also serve as protection and 
buffer from natural disasters such as flood and erosions. However, due to the 
ecological disturbances brought about by the carelessness of many, lives have 
been lost in natural disasters that could have been averted if only our forests 
were preserved. 
For this reason, the proposed Sustainable Forest Management Act aims 
to ensure that our forests are properly managed to meet the needs of the present 
and future generations. 
The bill mandates the development of an effective and sustainable forest 
management strate(Jy based on the allocation of forestland uses and by 
promoting land use practices that will not only be productive but will also 
conserve forest resources such as soil, lumber, and water. This forest 
management strate!lY will also work to protect existing forest resources, 
conserve our fra(Jile biodiversity and rehabilitate deforested or denuded areas. It 
is also envisioned to promote and stimulate food production activities without 
compromising forested areas. 
This bill likewise provides for a Community-Based Forest Management 
Program (CBFMP) to be undertaken by concerned national agencies and the 
local government units. With this, indigenous people and other forest-based 


communities will be empowered to mange, develop, utilize and protect forest 
resources in a sustainable way. 
In view of the foregoing, immediate passage bill is earnestly requested. 


,ill'tlutl1 
SIXTEENTH CONGRESS OF THE 
) 
{~fh;f llf Hit! (\'~-r'tha'~ 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
) 
'13 
JUL '-1 
I' n '41 
1\.,/ 
< 
'SENATE 
S. No. 
311 
iW;f-' 
------------------------------------------------------------------------------------------------------------
Introduced by SENATOR PIA S. CAYETANO 
------------------------------------------------------------------------------------------------------------
AN ACT 
PROVIDING FOR SUSTAINABLE FOREST MANAGEMENT 
Be if enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
CHAPTER I 
BASIC FORESTRY POLICIES 
1 
SECTION 1. SlIort Title.- This Act shall be known as the "Sustainable Forest 
2 
Management (SFM) .lI.el of 2019" 
3 
4 
SEC. 2. Scope' and Coverage.- The provisions of itlis Act shall apply to all lands 
5 
of the publio domain classified as needed for forestry purposes and all forest resources 
6 
found in agricultural lands: Provided, Thai all forests and forest resources found in 
7 
protected areas established under the National Integrated Protected Areas System 
8 
(NIPAS) shall be sustainably managed and developed following the provisions of 
9 
Republic Act No. 75136 or the NIPAS Act of 1992: Provided further, That all wildlife 
10 
resources and critical habitats found in forestlands including agricultural lands shall be 
11 
governed by the provisions of Republic Act No. 9147 or the Wildlife Resources 
12 
Conservation and Protection Act. 
13 
14 
All forestlands and forest resources therein under the administrative jurisdiction 
15 
of the Autonomous R!3gion of Muslim Mindanao (ARMM) shall be managed, developed 
16 
and conserved in accordance with the Regional Sustainable Forest Management Act of 
17 
2003 of the ARMM. 
18 
19 
SEC. 3. Basic Policies.- In pursuance of the provisions of the Constitution to 
20 
promote the general welfare and social justice in all phases of national development, to 
21 
protect and advance Ihe right of the Filipino people to a balanced and healthful ecology 
1 


in accord with the rhythm and harmony of nature, and to oonserve and develop the 
2 
patrimony of the nation, the State hereby adopts the following policies relative to the 
3 
management, development and conservation of forests and the resources therein: 
4 
5 
(a) Permanency of Forest Limits- The specific limits of forestlands shall be fixed 
6 
and demarcated and thereafter, shall not be altered except through an Act of 
7 
Congress; 
8 
9 
(b) Forest Resources to promote the common good- The use of forest resources 
10 
shall bear a social function, responsibility, and accountability to promote the 
11 
common good; 
12 
13 
(c) Sustainable and integrated management, development and conservation of 
14 
forest resources- The guiding principle in the sustainable and integrated 
15 
management, development, and conservation of forest resources shall be 
16 
focusing on these resources and on the people who manage, conserve, and 
17 
benefit from them. 
18 
19 
In oarrying out the above policies, the following strategies shall be pursued: 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
(i) 
(ii) 
Watershed as the basic forestland management unit- Forestlands shall be 
managed, developed and conserved utilizing watershed as the basic 
management unit and under the principles of sustainable and multiple-use 
management, including conservation of biologioal diversity; 
Forest a8 a functional system unit- Forest, whether for proteotion or 
production, is a functional ecosystem unit which could be conserved and 
used susl.ainably and the benefits derived from it shared equitably; 
30 
(iii) 
Multi-sectoral participation- The participation of all sectors of society in 
31 
32 
33 
34 
sustainable forestland management, development and conservation shall 
be promoted, Equitable sharing of the benefits derived from forestlands 
and the fHsouroes therein shall be ensured at all times; 
35 
(iv) 
Community-based forest management (CBFM) as a prinCipal strategy-
36 
37 
Vesting access rights and responsibilities to forest-dependent families, 
local communities, and indigenous peoples to undertake the management 
2 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
(v) 
and dev·elopmenl of appropriate forestland resources on a sustainable 
basis shall have preoedence over other strategies; 
Protection of forestlands and natural resources as priority concern·- The 
protection of forestlands, 
especially protection forests and the natural 
resources therein shall be given priority concern In order to ensure 
environmental stability, conserve biological diversity, improve ecosystem 
functions and services, and provide long-term ecological and economic 
benefits; 
11 
(vi) 
Reforestation as a priority measure- Reforestation shall be undertaken as 
12 
13 
14 
15 
16 
a priority measure to rehabilitate and restore the ecosystem functions and 
services of open and/or denuded and degraded forestlands as well as 
improve the economic and ecological benefits of local communities 
concerned; 
17 
(vii) 
Security of tenure of stal<eholders- In pursuance of the principles of 
18 
sustainable and multi-use forest management and equitable access to 
19 
20 
21 
forest re'lOurces, a secured tenure shall be guaranteed to stakeholders 
concerned; 
22 
(viii) 
Professionalism in forest service·· A dynamic, professional and people-
23 
oriented forest service shall be established and fully supported by the 
24 
government. 
25 
26 
SEC. 4. Definition of Terms.· As used in this Act, the following terms shall be 
27 
defined as follows: 
28 
29 
(a) "Afforestation" shall refer to the planting of trees or the artificial establishment 
30 
of forest in areas that were not previollsly forested. 
31 
32 
(b) "Agroforestry" shall refer to a strategy for the sustainable management of land 
33 
which increases their overall productivity by properly combining agricultural crops and/or 
34 
livestocl< with forest crops simultaneously or sequentially through tl1e application of 
35 
management practices which are compatible with the local climate, topography, slope, 
36 
soil, as well as the cultural patterns or customary laws of the local communities. 
37 
3 


1 
(c) "Agricultural Lands" shall refer to Alienable and Disposable (A&D) lands of the 
2 
public domain which have been delimited, classified and declared as such, pursuant to 
3 
the provisions of Commonwealth Act No. 141, as amended, otherwise known as the 
4 
Public Land Act. 
5 
6 
(eI) "Ancestral Domains" shall refer to all areas generally belonging to Indigenous 
7 
Cultural Communities/Indigenous Peoples (ICCs/IPs) comprising lands, Inland waters, 
8 
coastal areas, and natural resources therein, held under a claim of ownership, occupied 
9 
or possessed by ICCs/IPs, themselves or through their ancestors, communally or 
10 
Individually since time immemorial, continuously to the present except When interrupted 
11 
by war, foroe majeure or displacement by force, deceit, stealth or as a consequence of 
12 
government projects or any other voluntary dealings entered Into by government and 
13 
private individuals, corporations, and which are necessary to ensure their economic, 
14 
social and cultural welfare. It shall Include ancestral land, forests, pasture, reSidential, 
15 
agricultural, and other lands individually owned whether alienable and disposable or 
16 
otherwise, hunting grounds, burial grounds, worship areas, bodies of water, mineral and 
17 
other natural resources, and lands which may no longer be exclusively occupied by 
18 
ICCs/IPs but from which they traditionally had access to for their subsistence and 
19 
traditional activities, particularly the horne ranges of ICCs/IPs who are still nomadic 
20 
andlor shifting cultivators, pursuant to Republic Act No. 8371 or the Indigenous Peoples 
21 
Rights Act (IPRA) and "ubject to Section 56 thereof. 
22 
23 
(e) "Ancestral Lands" shall refer to land occupied, possessed and utilized by 
24 
individuals, families and clans who are members of the ICes/IPs since time immemorial, 
25 
by th'emselves or 1l1rough their predecessors-in-interest, under claims of individual or 
26 
traditional group owner"hip, continuously to the present except when interrupted by war, 
27 
force majeure or displacement by force, deceit, stealth, or as a consequence of 
28 
government projects and oUler voluntary dealings entered into by government and 
29 
private individuals/corporations, including, but not limited to, residential lots, rice 
30 
terraces or paddies, private forests, swidden farms and tree lots, pursuant to Republic 
31 
Act No. 8371 or the Indigenous Peoples Rights Act (IPRA) and subject to Section 56 
32 
thereof. 
33 
34 
(f) "Biological Diversity or BiodiverSity" shall refer to the variability and variety 
35 
among living oroanisms including, inter alia, terrestrial, marine and other aquatic 
36 
ecosystems and the ecological complexes of which they are part. This includes diversity 
37 
witllin the species (genetic diversity), between species (species diversity), and among 
38 
ecosystellls (ecosystem diversity). 
4 


1 
2 
(g) "Buffer Zones" shall refer to identified areas outside the boundaries of and 
3 
immediately adjacent to protected areas pursuant to Section 8 of Republic Act No. 7586 
4 
or the National Integrated Protected Areas System (NIPAS) Act that need special 
5 
development control in order to avoid or minimize harm to the protected area. 
6 
7 
(11) "Climate Change" shall reFer to a change in climate that can be identified by 
8 
changes in the mean and/or variability of its properties and that persists for an extended 
9 
period typically decades or longer, whether due to natural variability or as a result of 
10 
human activity; 
11 
12 
(i) "Commercial Logging" shall reFer to the cutting or felling of trees for Ule 
13 
purpose of disposing the cut or felled logs for monetary profits beyond survival and 
14 
livelihood means. 
15 
16 
Ul "Communal Forest" shall refer to a tract of forestland set aside and 
17 
established for and under the protection, administration, and management of a city, 
18 
municipality, or barangay as a source of wood material for fuel, shelter, and 
19 
manufaclured producls; as source of water for the community; and as an area for 
20 
ecotourlsm and/or environmental' protection or socio-economic projects of local 
21 
government units consistent with the policies and objectives of this Act and principles of 
22 
sllstainable developmHnt. 
23 
24 
(1<) "Community-Based Forest Management Strategy" shall refer to all organized 
25 
efforts of government to work with forest-dependent families, communities and 
26 
indi[Jenous peoples inside and adjacent to public forestlands with the Intent to empower 
27 
them and .entrllst to them the protection, rehabilitation, management, conservation, and 
28 
utilization of the forestlands and resources therein. 
29 
30 
(I) "Conservation" shall refer to planned protection and management of forests, 
31 
wildlife and other forest resources so as to prevent waste and ensure future use. 
32 
33 
(m) "Conveyance" shall refe~ to any vehicle, vessel, device or animal used in 
34 
gathering and/or transporting forest products. 
35 
36 
(n) "Co-production Agreement" shall refer to an agreement entered into by and 
37 
between a qualified person and the government, in accord with the 1987 Constitution, 
38 
for the former to develop, utilize, and manage, consistent with the principles of 
5 


1 
sustainable developmEmt, land or a portion of a forestland wherein both parties agree to 
2 
provide inputs and share the products or their equivalent cash value. 
3 
4 
(0) "Criteria and Indicators" shall refer to tools used to assess the current state of 
5 
sustainable forest management in the country and in forest management units and to 
6 
determine the direction of change either towards or away from SFM. 
7 
8 
(p) "Critical Watershed" shall refer to a drainage of a river system supporting 
9 
existing and proposed hydroelectric power, irrigation works or existing water facilities 
10 
needing immediate protection and rehabilitation to minimize erosion and improve water 
11 
yield. 
12 
13 
(q) "Degraded Forests" shall refer to natural forests with varying degrees of 
14 
disturbance or loss of "tructure, function, species, composition, and productivity. 
15 
16 
(r) "Degraded Forest Land" shall refer to a former forest land severely damaged 
17 
by the excessive harvesting or wood and non-wood or non-timber forest products, poor 
18 
forest management, repeated fires, pasture or other disturbances or land-uses that 
19 
damage soil and vegetation to a' degree that inhibits or severely delays the re-
20 
establishment of forest after abandonment. 
21 
22 
(s) "Delimitation" shall refer to the establishment of permanent boundaries 
23 
between forestlands, national parks/protected areas and agricultural lands as a result of 
24 
demarcation. 
25 
26 
(t) "Delineation" shall refer to the establishment of boundaries between 
27 
forestlands, national parks/protected areas and agricultural lands as a result of a 
28 
conduct of site investilJation, reconnaissance and field verification in accordance with 
29 
the Griteria set by the Department. 
30 
31 
(u) "Demarcation" shall refer to the establishment of boundaries using visible 
32 
markers, monuments or known natural features/landmarks, among others. as result of 
33 
the actual ground delineation. 
34 
35 
(v) "Denuded Forestlands" shall refer to forestlands that are devoid of forest tree 
36 
cover. 
37 
6 


1 
(w) "Depaliment" shall refer to the Department of EnVIronment and Natural 
2 
Resources (DENR). 
3 
4 
(x) "Downstream Forest Based Industry" shall refer to any industry other than the 
5 
primary (wood) processing plants that uses forest products as its raw materials or inputs 
6 
to produce higher value added forest products like furnitures, handicrafts and the like. 
7 
8 
(y) "Environmental Impact Assessment" or "EIA" shall refer to the process of 
9 
predicting the likely environmental consequences of implementing a project or 
10 
undertal<ing and designing the appropriate preventive, mitigating, or enhancement 
11 
measures. 
12 
13 
(z) "Environmental Compliance Certificate" or "ECC" shall refer to the document 
14 
issued by the Depaliment certifying that a proposed project or undertaking will not 
15 
calise a significant negative impact on the environment, that the proponent has 
16 
complied with all the requirements of the Environmental Impact Assessment System; 
17 
and that the proponent is committed to implement its approved EnVIronment 
18 
Management Plan found in the Environmental Impact Statement (EIS) or mitigation 
19 
measures Identified in the Initial Environmental Examination (lEE). 
20 
21 
(aa) "Environmental Impact Statement System" or "EIS System" shall refer to the 
22 
organization, administration, and procedures that have been institutionalized pursuant 
23 
to Presidential Decrel" No. 1586 for purposes of assessing the significance of the 
24 
effects of any project or undertaking on the quality of the physical, biological, and social-
25 
economic environment and designing the appropriate mitigating and enhancement 
26 
measures. 
27 
28 
(bb) "Environmentally Critical Project" shall refer to project or program that has 
29 
high potential for signilicant negative environmental impact. 
30 
31 
(cc) "Forest" shall refer to land with tree crown cover or equivalent stoel(ing level 
32 
of more than ten percent (10%) and an area of more than half a hectare (0.5 ha.). The 
33 
trees should be able to reach a minimum height offive meters (5m.) at maturity in situ. It 
34 
may consist either of closed forest formations where trees of various storeys and 
35 
undergrowth cover a high proportion of the ground, or open forest formation with a 
36 
continuous vegetation cover in which tree crown cover exceeds ten percent (10%). 
37 
Young natural stands and all plantations established for forestry purposes which have 
38 
yet to reach a crown dl~nsity of ten percent (10%) or tree height of five meters (5 m.) are 
7 


1 
included Lmder forest, as are areas normally fonnmg part of the forest area which are 
2 
temporarily un stocked as a result of human intervention or natural causes but which are 
3 
expected to revert to forest. Forests include such stand types as dipterocarp, pine, 
4 
mossy, malave, beach, and mangrove. Pursuant to the Convention on Biological 
5 
Diversity, forests are treated as functional ecosystem units which should be conserved, 
6 
used suslainably, and the benefits derived from them should be shared equitably. 
7 
8 
(dd) "Forest Charges" shall refer to the levy imposed and collected by the 
9 
government on naturally growing timber and other forest products cut, harvested, or 
10 
gatl1ered from the forestlands and from agricultural lands. 
11 
12 
(ee) "Forest Officer" shall refer to any publiC officer who by lhe nature of his 
13 
appointment or the functions of the position to which he is appointed is delegated by law 
14 
and regulations or commissioned by compelent authorities to execute, implement or 
15 
enforce the provisions of this Act and other related laws and regulations. 
16 
17 
(f~ "Forest Pmducts" shall refer to goods and services derived from forest such 
1B 
as, but limited to, timb",", lumber .veneer, plywood, fiberboard, pulpwood, bark, tree top, 
19 
resin, gums, wood oil, honey, bees wax, nipa, rattan, or other forest growth such as 
20 
grass, shrub and flowl3ring plants, the associated water, fish, game, scenic, historical, 
21 
and educational. 
22 
23 
(gg) "Forest Resources" shall refer to all resources whether biomass such as 
24 
plants and animals including its by-products and derivatives, which can be a raw 
25 
material, or non-biomass SLich as soil, water, scenery, as well as the intangible services 
26 
and values present in forestlands or in other lands devoted for forest purposes. 
27 
28 
(hh) "Forest/Forest-Based Community" shall refer to a gmup of people residing 
29 
inside or immediately adjacent to a particular forestland who are largely or partly. 
30 
dependent on the fore8t resources found therein for their livelihood. 
31 
32 
(ii) "Forest-Based Industries" shall refer to various industries that are dependent 
33 
on raw materials or products derived from forests such as, but not limited to, wood, 
34 
rattan, bamboo, vines, latex, resins, saps, essences, fruits, flowers, or Wild flora and 
35 
fauna. 
36 
8 


1 
OJ) "Forestland~l" shall refer to lands of the public domain classified as needed tor 
2 
forest purposes. They shall include all forest reserves. forest reservations and all 
3 
remaining unclassified lands of the public domain. 
4 
5 
(kk) "Forestry Landscapes" sllall refer to a process that aims to regain ecological 
6 
integrity and enhance human well being in deforested or degraded forestlands. 
7 
8 
(II) "Grazing Land" shall refer to a portion of the public domain which has been 
9 
set aside, in view of its topography and vegetation, for the raising of livestock. 
10 
11 
(mm) "Greenhouse Gas" refers to any gas 1I1at absorbs Infrared radiation in the 
12 
atmospllere. Greenhouse gases include water vapor, carbon dioxide (C02), Methane 
13 
(CH4), nitrous oxidE' 
(N20), halogenated fluorocarbons 
(HCFCs), ozone (03), 
14 
perfluorinated carbons (PFCs) and hydrofluorocarbons (I-IFCs). 
15 
16 
(nn) "Indigenous Cultural Communitiesllndigenous Peoples" or "ICCs/IPs" shall 
17 
refer to a group of p'30ple or homogenous societies identified by self-ascription and 
18 
ascription by others, who have continuously lived as organized community on 
19 
communally bounded and defined territolY, and who have, under claims of ownership 
20 
since time immemorial, occupied, possessed and utilized such territories, sharing 
21 
common bonds of language, cllstoms, traditions and other distinctive cultural traits, or 
22 
who have, through resistance to political, social and cultural inroads of colonization, 
23 
non-indigenous religions and cultures, became historically differentiated from the 
24 
majority of the Filipinos. ICCs/IPs shall likewise include people who are regarded as 
25 
indigenous on account of their descent from the populations which inhabited the 
26 
country, at the time of conquest or colonization, or at the time of inroads of non-
27 
indlgenolls religions and cultures, or the establishment of present state boundaries, who 
28 
retain some or all of their own social, economic, cultural and political institutions, but 
29 
who may have been displaced from their traditional domains or who may have resettled 
30 
outside their ancestral domains, 
31 
32 
(00) "Industrial Forest Management Agreement" or "IFMA" shall refer to a 
33 
production-sharing contract entered into by and between the Department and a qualified 
34 
person, whetller natural or juridical, wherein the former grants to the latter the exclusive 
35 
right and responsibility to invest in, develOp, manage, and protect a defined area of the 
36 
production forestland, including the establishment, management and utilization of 
37 
industrial forest plantation, consistent with the principle of sustainable development, 
9 


1 
primarily to supply the raw material requirements of wood-based processing and 
2 
energy-related industnies and wherein both parties share In the benefits therefrom. 
3 
4 
(pp) "Industrial Forest Plantation" or "IFP" shall refer to any tract of land planted 
5 
mainly to timber proclucing species, including rubber andlor non-timber species such as 
6 
rattan and bamboo, primarily to supply the raw material requirements of existing or 
7 
proposed wood processing plants, and related industries. 
8 
9 
(qq) "Joint Venture Agreement" shall refer to an agreement where a joint-venture 
10 
company is organizeci by its government and the contractor, with both parties having 
11 
equity shares. Aside from earnings in equity, the government IS entitled to a share in the 
12 
gross output. 
13 
14 
(rr) "Kaingin" shail refer to a portion of the forest land, whether occupied or not, 
15 
which is subjected to shifting andlor permanent slash-and-burn cultivation having little or 
16 
no provision to prevent soil erosion. 
17 
1 B 
(ss) "Kaingin Making" shall refer to a farming system based on shifting, or slash 
19 
and burn clearing of forest for the planting of agricultural and agro-forestry crops. 
20 
21' 
(tt) "Managed Forest" shall refer to a forest under a deliberate system of 
22 
protection, rehabilitation, and development, which may include utilization of resources, 
23 
to ensure the sustainable production of desired prodUcts and services and (he 
24 
conservation of soil, water, wildlife, and other resources therein. 
25 
26 
(uu) "Master F'lan for Fores(ry Development" refers to the twenty (25) years 
27 
strategic program of the Forestry Sector envisioned to guide its long term development. 
28 
This program includes the following: (a) policy and institutional development; (b) 
29 
watershed and foresllry development; (c) livelihoocl and poveliy reduction; and (d) 
30 
forest-based industry development. 
31 
32 
(vv) "Multiple lise" shall refer to the llarmonized utilization of land, soil, water, 
33 
wildlife, recreation value, grass and timber of forestlands. 
34 
35 
(ww) "National Park" shall refer to the land of public domain classified as such in 
36 
the 1987 Philippine Constitution Wllich includes all areas under the National Integrated 
37 
Protected Areas System (NIPAS)' pursuant to RA 7586, primarily set aside and 
10 


1 
designated for the conservation of native plants and animals, their associated habitats 
2 
anci cultural diversity. 
3 
4 
(xx) "Natural Forest" shall refer to forest composed of indigenous trees, not 
5 
planted by man. 
6 
7 
(yy) "Non-Gave,rnment Organization" or "NGO" shall refer to a non-stock, non-
8 
profit, and voluntary organization. 
9 
10 
(zz) "Permit" shall refer to a short-term privilege or autll0rity granted by the State 
11 
to a person to utilize any limited forest resources or ui1dertake a limited activity within 
12 
any forest land without any right of occupation and possession therein 
13 
14 
(aaa) "Person" shall refer (0 a natural or juridical person, including local forest 
'15 
communities or indigenous peoples organized in accordance with law or custom. 
16 
17 
(bbb) "Plantation Forest" Shall refer to forest stands established by planting or 
18 
seeding in the process of afforestation or reforestation. 
19 
20 
(ccc) "Primary Forest" shall refer to forest which have never been subject to 
21 
human disturbance or has been so little affected by hunting, gathering and tree cutting 
22 
that its natural structure, function and dynamics have not undergone any changes that 
23 
exoeed the elastio capacity of the ecosystem. 
24 
25 
(ddd) "Prooessing Plant" or "Processing Mill" shall refer to any mechanical set-
26 
up, device, machine or combination of machines used for the conversion of logs and 
27 
other forest raw materials into lumber, fiberboard, pulp, paper or other finished wood 
28 
products. 
29 
30 
(eee) "Production Forestlands" - as defined under Sec. 6 (b) of this Act. 
31 
32 
(fff) "Production Sharing Agreement" shall refer to an agreement wherein the 
33 
government grants th,3 contractor the exclusive right to conduct forestlY development 
34 
activities within but nol title over, tile contract area and shares in the production whether 
35 
in kind or in value as owner of forest product therein. The contractor provides all the 
36 
necessary financing, technology, management and personnel. 
37 
11 


1 
(ggg) "Protected Areas" shall refer to identified portions of land and water set 
2 
aside by reason of their unique physical and biological significance, managed to 
3 
enhance biological diversity and protected against destructive human explOItation. They 
4 
shall constitute the areas established under the National Integrated Protected Areas 
5 
System (NIPAS) pUisuant to RA 7586 and SI1811 fall under the National ParI< 
6 
classification of public domain. 
7 
8 
(hhh) "Protection I=orests" - as defined under Sec. 6 (a) of this Act. 
9 
10 
(iii) "Reforestation" shall refer to the establishment of forest plantations on 
11 
temporarily unstocked lands that are considered as forest Also called as artificial 
12 
regeneration. 
13 
14 
Gij) "Reservation" shall refer to an area of the public domain reserved by law for a 
15 
specific purpose. 
16 
17 
(kkk) "Restoration" shall refer to the bringing back of the forestland to its original 
18 
state. 
19 
20 
(III) "Rotation" shall refer to the number of years between the initial establishment 
21 
of a plantation and the time when it is considered ready for harvesting. 
22 
23 
(mmm) "Secondary Forest" shall refer to the status or condition of a forest 
24 
subsequent to commercial logging and Wl1ich there is more or less sufficient or 
25 
adequate volume of residuals of the desired species of trees for future harvest. 
26 
27 
(nnn) "Secretary" sl1all refer to the Secretary of the DENR. 
28 
29 
(000) "Silvicultural Practices" shall refer to any action by man to further improve 
30 
or enhance the stand growth as a whole or the single tree for future harvest including 
31 
assisted natural regeneration and tree surgery, among others. 
32 
33 
(ppp) "Sustainable Development" shall refer to development that meets the 
34 
needs of the present without compromising the ability of the future generations to meet 
35 
their own needs. 
36 
37 
(qqq) "Sustainable Forest Management" or "SFM" shall refer to the process of 
38 
managing a forest to achieve one or more clearly specified objectives of management 
12 


1 
with regard to production of continuous flow of desired forest products and services 
2 
without undue reduction of its inherent values and future productivity and without 
3 
undesirable effects on the physical and social environment 
4 
5 
(rrr) "Tenure" shall refer 10 guaranteed peaceful possession and use of specific 
6 
forest land area and the resources found therein, covered by an agreement, contract, or 
7 
grant which cannot be altered or abrogated without due process. 
8 
9 
(sss) "Timber License Agreement" or "TLA" shall refer to a long-term license 
10 
executed by and between tile Secretary of the DENR, on bellalf of the government, and 
11 
the grantee for the harvesting and removal from the public forest of timber and, in 
12 
appropriate cases, also of other products. 
13 
14 
(ttt) "Watershed" shall refer to a land area drained by a stream or fixed body of 
15 
water and its tributaries having a common outlet for surface runoff. 
16 
17 
(uuu) "Watershed Ecosystem Management" or "WEM" shall refer to a 
18 
management system that will prayide the optimum social, cultural, economic and 
19 
environmental benefits to the greatest number of people, particularly those living in, 
20 
adjacent to, or downstream of, individual watershed areas, while maintaining the 
21 
biological and cultural heritage of the country. It is the holistic multiple use and 
22 
sustainable management of all the resources within a spatial unit known as the 
23 
watershed. The Watershed Ecosystem Management is based on the following guiding 
24 
principles: (1) Ecoiooicai sustainability; (2) Social and Cultural sus\ainability; (3) 
25 
Economic sustainability and (4) Institutional Sustainability. 
26 
27 
(vvv) "Watershed Reservation" shall refer to a forestland reservation established 
28 
to protect 01' improve the conditions of water yield thereof or reduce sedimentation. 
29 
30 
(www) 'Wildlife" shall refer to wild forms and varieties of flora and fauna, in all 
31 
developmental stage", including those which are in captivity or are being bred or 
32 
propagated. 
33 
34 
(xxx) "Wood-Based Industries" shall refer to various industries that use wood as 
35 
the principal raw material including but not limited to sawmilling, pulp and paper making, 
36 
and plywood and veneer manufacturing or the upstream wood-based industries, as well 
37 
as the secondary and tertiary wood processing or downstream industry such as 
38 
moldings and furniture manufacturing. 
13 


1 
2 
3 
CHAPTER II 
4 
CLASSIFICATION OF PERMANENT FORESTLANDS 
5 
6 
SEC. 5. Pemwnent Forestlands. - All lands of the public domain classified as 
7 
forestlands, including the remaining unclassified lands, shall comprise the permanent 
8 
forestlands of the country. Provided, That any reclassification shall be approved by an 
9 
Act of Congress. 
10 
11 
SEC. 6. Sub-Classification of the Permanent Forestlands. - The permanent 
12 
forestlands shall be BUb-classified into the follOWing categories according to primary 
13 
use: 
14 
(a) Protection forestlands - All areas within the forestlands devoted primarily for 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
the protection, conservation of forest resources to ensure environmental 
stability, conservation of biological diversity, improvement of ecosystem 
functions alid services, and provision of ecological and economic benefits 
shall constitute the proteotion forestlands. All mossy and primary/old growth 
forests and natural beach, areas above 50% slope, areas regardless of slope 
Which are highly erodible or too rocky for 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, free,hwater, swamps, and marshes, all areas along the bank of the 
rivers and streams, and the shores of the seas and lakes throughout their 
entire lengtl1 and within the zone of three (3) meters in urban areas, twenty 
(20) meters in agricultural areas, and forty (40) meters in forest areas, along 
their margins which are subject to the easement of public use in the mterest 
of recreation, settlements, navigation, floatage, fishing and salvage sllall also 
be sub-classified as protection forestlands. 
31 
(b) Production forestlands. -
All forestlands not sub-classified as protection 
32 
forestlands defined in this Section shall be sub-classified as production 
33 
forestlands to be devoted to the production of timber and/or non-timber forest 
34 
products 01' the establishment of industrial tree plantations, tree farms, 
35 
communal forests, agroforestry, grazing, or as multiple use forests including 
36 
water-baseel energy areas such as but not limited to hydrothermal and 
37 
geothermal reservations: Provided, That they shall be managed, developed, 
14 


1 
and utilized in accordance with a Department-approved management plan 
2 
based 011 sllstainable forest management principles. 
3 
4 
SEC. 7. Dem.arcation and Delimitation.- Upon approval of this Act, the 
5 
Congress shall provide funds for the Department to demarcate on the ground the actual 
6 
land classification lines: Provided, That the Secretary, upon completion of the actual 
7 
assessment of the demarcated land classification lines, shall recommend to Congress 
8 
ttl'" delimitation of the forestlands found to be still suitable and capable for its purpose. 
9 
10 
Records pertaining to the specific limits of forestlands sllall be made available to 
11 
the public upon requeBt. Moreover, the Department shall furnish all provincial, municipal 
12 
and city government copies of the maps of permanent forestlands located within their 
13 
respective territorial jUirisdictions. 
14 
15 
. CHAPTER III 
16 
17 
ADMINISTRATION AND MANAGEMENT OF FORESTLANDS AND RESOURCES 
18 
19 
SEC. 8. Jurisdiction and ControJ of Forestlands.- The Department shall be the 
20 
primary agency responsible for the conservation, management, and utilization of all 
21 
forestlands. In coordination with local government units and other government agencies, 
22 
it shall ensure that forestlands are managed, conserved, developed, utilized, and 
23 
protected consistent with the policies and strategies promulgated in this Act. The 
24 
utilization and development of forestlands including the natural resources therein shall 
25 
be undertaken in accordance with Department-approved management plans. 
26 
27 
SEC. 9. Forestl'ands IV/anaged by Local Government Units (LGUs).- Pursuant 
28 
to the pertinent provisions of Republic Act. No. 7160 or the Local Government Code, 
29 
LGUs shall share the responsibility in the sustainable management, development, 
30 
protection and utilization of forest resources within their territorial jurisdiction Subject to 
31 
vested rights, LGUs and the Department, in consultation With other government 
32 
agencies, local communities, non-government orgal1lzations, academic and research 
33 
institutions and other sectors shall jointly undertake the preparation of indicative 
34 
forestland use and watershed management plans, particularly the identification of 
35 
multiple-use areas and production forestlands within the territorial jurisdiction of each 
36 
LGU which shall be made an integral component of the latter's Comprehensive Land 
37 
Use Plan (CLUP). Tile LGUs shall be consulted on all forestry projects to be 
15 


implemented in their territorial jurisdiction and shall have equitable share of incomes 
2 
derived therefrom. For this purpose, the Department, the Department of Interior and 
3 
Local Government (DILG), the Leagues of Provinces, Cities, Municipalities, and 
4 
Barangays shall formulate a jOint strategy and program to implement this provision 
5 
within one (1) year fl'om the passage of this Act. 
6 
7 
SEC, 10, For·estJands Under Other Government Agencies,- Forestlands 
8 
anel/or portions thereof which have been assigned by law to the administration and 
9 
management of other government agencies for a specific purpose, including those 
10 
elevolved to the LGUs prior to the passage of this Act, shall remain under the 
11 
administration and management of these government agencies which shall be 
12 
responsible for their conservation, protection, rehabilitation, and sub-classification into 
13 
protection forestland and the specific purpose for which the entire area has been 
14 
assigned or reserved unless said assignment or reservation is consistent with the use of 
15 
such area as protection forestland. The Secretary or a duly authorized representative 
16 
shall exercise oversight functions over these forestlands. Moreover, these forestlands 
'17 
shall be administered in accordance with a forest management plan, which shall be 
18 
prepared by the government agency or concerned LGU in coordination with the 
19 
Department and local communities and organizations within one year from the effectivity 
20 
of this Act: Provic/ecl, That the Department and the LGU or government agency 
21 
concerned shall periodically review, monitor, and evaluate the implementation of the 
22 
said management plan: Provided, further, That the harvesting of forest resources and 
23 
building of roads and other infrastructure therein shall be undertaken only with the prior 
24 
approval of the Secretary and after compliance with Environmental Impact Assessment 
25 
(EIA) in accordance with PreSidential Decree NO.1151 or the Philippine Environmental 
26 
Policy and Presidenliial Decree No. 1586, Establishing an EnVIronmental Impact 
27 
Statement System: Provided finally, That the Secretary shall recommend to Congress 
28 
or the President of the Philippines the reversion to the Department of the jurisdiction 
29 
and control over fore8tiands Urat are no longer needed nor used for the purpose by 
30 
which they have been constituted or in case the agency 01' LGU concerned fails to 
31 
rehabilitate, protect, and conserve the forestland resources in accordance with the 
32 
approved management plan, The Department shall determine the use of the reverted 
33 
forestlands, 
34 
35 
SEC. 11. Forest Resources Witl1in Alienable and Disposable Lands. -All 
36 
forest resources planted or raised within alienable and disposable (A&D) lands belong 
37 
to the owner who shall have the right to harvest, transport, sell, contract, conveyor 
38 
dispose of the same subject to existing forest laws and regulations. The Department 
16 


1 
shall encourage and provide incentives to landowners of alienable and disposable lands 
2 
to develop, maintain Ilnd manage forests on their lands or to develop and maintain a 
3 
tree plantation on SUOll lands. Landowners who register their lands for forestry purposes 
4 
with the Department shall be assisted by the Department in the preparation of a 
5 
management plan: F'rovided, Tllat alienable and disposable lands devoted to the 
6 
planting and harvesting of forest resources shall remain subject to the provisions of 
7 
Republic Aot No. 6657 or the Comprehensive Agrarian Reform Law. 
8 
9 
Harvesting, transport and sale of all trees planted within titled lands or tax-
10 
declared A&D lands willl corresponding approved application for patent or acquired 
11 
through COUIt proceedings, shall be deregulated, except for naturally-growing trees, 
12 
illciliding premium hardwood species and other timber species as determined by the 
13 
Department, where a special cutting permit issued by the Secretary shall be required. 
14 
15 
All private plantations within titled or tax-declared A&D lands with approved land 
16 
application should be registered at the City Environment and Natural Resources Office 
17 
(CENRO) having jurisdiction over the area. For this purpose, the CENRO shall maintain 
18 
a permanent Registry book to reflect all the information contained in the registration 
19 
form to serve as database on the extent of private plantations witllin its area of 
20 
responsibility. To form part of this permanent record is a certified and verified photocopy 
21 . of the land title or tax declaration with approved land application. 
22 
23 
SEC, 12. FOY<1st Resources Within Forestlands. -
All forest resources, 
24 
inoluding non-timber forest products, its by-products and Its derivatives, whether 
25 
naturally growing, planted or raised,. which have been taken or 1lave been applied with 
26 
some silvicultural practices, within forestlands including those forest resources within 
27 
the areas covered by Certificate of Ancestral Domain Title (CADT) or Certificate of 
28 
Ancestral Land Claim (CALC), shall be issued with a permit, agreement or clearance 
29 
that are deemed necessary and appropriate by the Department as recommended by the 
30 
Forest Management Bureau (FMB). 
The transport of these forest resources from 
31 
forestlands including those from tile area of the Indigenous Cultural Communities and 
32 
Indigenous Peoples covered by CADT or CALC shall be covered by a separate permit, 
33 
agreement or clearance duly issued by the Department Any declaration of forest 
34 
resources as endangered, threatened, vulnerable and other restriction shall be done in 
35 
coordination, consultation and clearance from the FMB. 
36 
37 
SEC, 13. 
Fomst Resources Within Ancestral Domain - The recognition, 
38 
ownership, and mana"ement of ancestral lands and domains shall be governed by the 
17 


1 
provisions of tile IPRA but any project of a holder of a CADT or any such similar 
2 
instrument to develop or use forestlands or forest I'esources therein lilat would result in 
3 
severe soil erosion or environmental degradation shall be subject to the provisions of 
4 
.Environmental 
Impact Assessment (EIA) in accordance with Presidential Decree 
5 
No.1151 or the Philippine Environmental Policy, Presidential Decree No. 1586, 
6 
Establishing an Environmental Impact Statement System, and this Act The National 
7 
COmmission on Indigenous Peoples (NCIP) shall coordinate and consult the 
8 
Department in provicling assistance to the indigenous peoples In the sustainable 
9 
management and development of forest resources within ancestral lands and domains. 
10 
The Multi-Sectoral Forest Protection Council created under Sec. 33 herein shall, among 
11 
its functions and powers, evaluate and validate the authenticity of all CALT/CALC 
12 
claims and applications of the IPs prior to the conduct of all survey activities and 
'13 
issuanoe of corresponding titles. 
14 
15 
SEC. 14. DevE!lopment of Mechanisms for Private Sector Palticipation in 
16 
Forest Management .• The Secretary is hereby authorized to adopt appropriate 
17 
mechanisms to strenotllen private sector partiCipation in forest management, which 
18 
shall include the accreditation of a national organization of private investors including for 
19 
profit non-government organizations and people's organizations. The accredited 
20 
national organization shall assist the Department in the formulation and review of 
21 
relevant policies to ensure the contribution of the forestry sector to national economy 
22 
and sustainable development. It shall also assist the Department in evaluating 
23 
applications for forest management agreements; monitOring the performance of holders 
24 
of commercial tenurial instruments; ensuring the local supply of timber and wood 
25 
products; providing producers with access to local and international markets; and 
26 
ensuring the conservation and preservation of protection forestlands and protected 
27 
areas under the NIPAS. 
28 
29 
30 
CHAPTER IV 
31 
32 
FORI:'ST MANAGEMENT PLANNING, MONITORING AND ASSESSMENT 
33 
34 
SEC. 15. Sust,~inable Forest Management Planning,- Subject to vested or 
35 
prior rights, the Department, in consultation and coordination with LGUs, other 
36 
government agencies, local communities, non-government organizations, individual and 
37 
corporate entities, private sectors, academic and research institutions, and other 
38 
concerned sectors shall, within one (1) year from the effectivity of this Act, develop and 
18 


-------------------------------------------------------------
1 
adopt a sustainable lorest management strategy for each well··defined watershed or 
2 
other appropriate forE,st management unit based on criteria,' indicators, and standards 
3 
for sustainable forest management which, at their minimum, address the following 
4 
requirements: 
5 
6 
a) Rational allocation of forestland uses and promotion of land use practices that 
7 
increase productivity and conserve soil, water, and other forestland resources; 
8 
b) Protection at eXisting forest resources and conservation of biodiversity, 
9 
c) Rehabilitation or development of denuded areas to expand the forest resource 
10 
base and promote food production activities; 
11 
d) Enhancement of the socia-economic well-being of local communities including 
12 
indigenous peoples who are largely dependent on the forest for their livelihood, 
13 
e) Promotion of closer coordination between and among the Department, LGUs, 
14 
other national agencies, non-government organizations, local communities, the 
15 
private sector, academic and research institutions and other entities in the 
16 
sListainable management of forestlands; 
17 
f) Adoption of community-based forest management as a principal strategy in the 
18 
management of forestlands and resources; and 
19 
g) Integration of forest management and land lise plans at the barangay or 
20 
community level to the CLUPs of cities and municipalities, including the adoption 
21 
of effective impact monitoring system of forest management programs. 
22 
23 
The Department shall continue to adopt the Master Plan for Forestry 
24 
Development subject 110 periodiC review every five (5) years. 
25 
26 
SEC. 16. Wat€'rshed Ecosystem Management Strategy.- The Watershed and 
27 
Ecosystems Planning Framework in Environment and Natural Resources Management 
28 
shall be adopted. The strategy for improved watershed resources management shall be 
29 
demand-driven, community-based, and multiple and sustainable-use conSidering 
30 
national priorities and concerns of local stakeholders. Watershed management 
31 
programs shall be guided by ecological, socia-cultural, economic, and institutional 
32 
sustainability principles. A National Watershed Information System shall be developed 
33 
to guide policy formulation, program development, and implementation of watershed 
34 
management initiatives. 
35 
36 
A system of prioritization of watersheds shall be pursued considering the 
37 
following: 
38 
19 


1 
a) water supply for domestic, irrigation, power, industrial, and commercial use; 
2 
b) contribution 10 the economy; 
3 
c) biodiversity and environmental enhancement; 
4 
d) cultural and historical value; and 
5 
e) effect on downstream areas. 
6 
7 
SEC. 17. Poro'stry Information System. - The Department shall establish a 
8 
forestland resource database which shall consist of a comprehensive up-to-date 
9 
information on the physical, 
social, 
economiC, 
biological, 
and 
environmental 
10 
components of the country's forestlands. It shall include a resource monitoring system 
11 
to enable the Depat1ment and its field offices to track the utilization, movement or 
12 
transfer afforest-based goods and services from the source to their end-users. 
13 
14 
The Department shall conduct and lor update forest resource inventory at least 
15 
once every five (5) years to ensure effective management. 
16 
17 
SEC. 18. E!nvironmentallmpact Assessment, AccoLlnting and VaILlation.- All 
18 
new environll1entally critical proje0ts to be implemented in forestlands such as 
19 
harvesting, grazing and other special uses, mineral prospecting and exploration, road, 
20 
infrastructure, and mill construction shall be subject to Environmental Impact 
21 
Assessment (EIA) in accordance with Presidential Decree No. 1151 or the Philippine 
22 
Environmental PoliCY, and Presidential Decree No. 1586, Establishing an Environmental 
23 
Impact Statement System. The Department shall design and implement a system of 
24 
monitoring and asses.sment using tile Criteria and Indicators as framework and shall 
25 
formulate appropriate standards as basis for assessing progress towards sustainable 
26 
forest management. 
27 
28 
Furthermore, tile Depaltment shall design and implement an appropriate natural 
29 
resources accounting and valuation system for various forestry initiatives. 
30 
31 
32 
CHAPTER V 
33 
34 
COMMUNITY-BASED FOREST MANAGEMENT 
35 
36 
SEC. 19, CommLlnity-Based Forest Management Strategy (CBFMS). -
37 
Consistent with the policy of sustainable and multiple use forest management, forest 
38 
dependent families, local communities, and indigenous peoples whose lives, cultures, 
20 


1 
and general well-being are intimately linked with the forests shall be granted access to 
2 
forestlands and resources through the issuance' of long-term tenure agreements, This 
3 
gives them a guarantee for peaceful occupation and entrusts to tllem the responsibility 
4 
to protect, manage, develop, and utilize said forest resources under the principle of 
5 
stewardship, 
6 
7 
The Department shall develop policies, criteria, guidelines, and tenurial 
8 
instruments 1I1at will nimplify, facilitate, and allow access of forest dependent families, 
9 
local communities, and indigenous peoples to forestland resources, The Department 
10 
sl1all furthermore dev"lop policies, guidelines and incentives for private sector investors 
11 
to enter into mutually beneficial relationships with forest-based communities in pursuit of 
12 
CBFMS on a sustainable forest management baSIS, 
13 
14 
SEC, 20. QuaJ'ified Participants.- Organized forest communities shall be given 
15 
priority to participate in the CBFM program, Indigenous peoples shall also be 
16 
encouraged to actively participate in the implementation of CBFM activities in 
17 
recognition of their rights to their ancestral domains and lands, Organizations eligible to 
18 
participate in CBFM shall have the following qualifications: 
19 
20 
a) Members shall be Filipino citizens; and 
21 
b) Members shall be any of the following: 
22 
'f. Traditionally utilizing the resource for their livelihood; 
23 
2, Actually residing within the area to be awarded; 
24 
3, Residing adjacent and actually tilling portions of the area to be 
25 
awarded, 
26 
27 
28 
CHAPTER VI 
29 
30 
REFORESTATION, AFFORESTATION AND RESTORATION PROGRAMS 
31 
32 
SEC. 21. Reforestation and Restoration in Protection Forestlands. - The 
33 
reforestation and rentoration of all critical watersheds and critical, denuded, and 
34 
degraded forests within protection forestlands not otherwise covered by the CBFM 
35 
program shall be given top priority and shall be vigorously pursued by the Department 
36 
consistent with tile NIPAS Act and the strategies and management plans therefor. Use 
37 
of endemic species in the restoration and rehabilitation of protection forestlands shall be 
38 
adopted to enhance biological diversity tllerein, The Department, in coordination with 
21 


1 
LGUs, other government agencies, NGOs, local residents and communities, and other 
2 
sectors concerned, shall identify and prioritize forestlands to be reforested. 
3 
4 
An accelerated reforestation program in identified Priority prolectlon forestlands 
5 
shall be undertaken to raise the forest cover The Department shall allot funds to 
6 
effectively accomplish reforestation either by its own or through contract in protection 
7 
forestlands. The Department or other agencies responsible for reforestation shall give 
8 
priority to local communities in the granting of technical and financial assistance for 
9 
reforestation activities. 
10 
11 
SEC. 22. Reforestation or Forest Plantation Development in Production 
12 
Forestlands.- In accordance with Section 43 herein, the state through the Department 
13 
may enter into joint venture, co-production. or production sharing agreement with 
14 
qualified forest community organizations, local government units, government-owned or 
15 
controlled corporations, private companies, individuals, and other interested parties 
16 
concerned in the developrnent of forest plantations in production forestlands: Provided, 
17 
however; That portions of production forestlands as determined by lile Department as 
18 
needed for protection purposes, shall not be converted into forest plantations Such 
19 
areas shall be rehabilitated using an appropriate forest regeneration scheme. 
20 
21 
SE:C. 23. 
Re~o,.estation in Forestlands under the Jurisdiction of Other 
22 
Government Agenci'es.- Government agencies and institutions having management 
23 
control over forestlands pursuant to a law or grant shall be responsible for the 
24 
reforeslation of denuded and degraded portions of such forestlands. The reforestation 
25 
program of these agencies silall aim to increase the vegetation of the degraded areas, 
26 
to be identified jointly by the Department and agency concerned. The concerned agency 
27 
in coordination with the Department shall prepare the reforestation plan, and determine 
28 
the ratio of forested areas at any given time. Failure to reforest denuded andior 
29 
degraded forestland identified in the reforestation plan within the period herein 
30 
prescribed shall be sufficient ground to request for reversion of tile said forestlands to 
31 
the jurisdiction and control of the Department: Provided, however, That in areas where 
32 
CBI=MS shall be implemented or where there are existing facilities for basic services 
33 
such as water and power as allowed by the Department pursuant to Section 43 hereof, 
34 
the completion of the reforestation program shall be subject to the conditions provided 
35 
in the tenurial document to be awarded by the Department and the agency concerned to 
36 
the partiCipating local community or individual or in the Forest Management Agreement 
37 
of contractors operating such facilities for basic services, as approved by the 
38 
Department. 
22 


1 
2 
SEC. 24. Reforestation in Alienable and Disposable Lands or Private 
3 
Lands." Reforestation or the establishment of tree farms or forest plantations in private 
4 
lands shall be encouraged: Provided, That such private lands and other alienable and 
5 
disposable lands are not prime agricultural lands as determined or certified by the 
6 
Department of Agriculture (DA). The private landowner(s) stlall also be entitled to the 
7 
incentives provided for under Section 27 herein, particularly subsections (a), (b), (c), (d), 
8 
and (e): Provided, That such private forest plantutions are duly registered with the 
9 
Department. 
10 
11 
SEC. 25. Afforestation in Forestlands.-
The afforestation of forestlands, 
12 
including those under the jurisdiction of otller agencies, where tree vegetation is nil or 
13 
have been removed for a considerable time, shall be given priority to re-establish the 
14 
production andlor protection functions of Ihe area to provide the goods and services for 
15 
which they are needeci. Use of appropriate technology shall be applied as necessary to 
16 
make the general environment of the area suitable for the establisllment of plantations. 
17 
Use of endemic species in the afforestation of protection forestlands shall be given 
18 
priority to enhance biological diversity therein. In production forestlands, commercial 
19 
fast growing species compatible with the socio-economic and biophysical characteristics 
20 
of tile area shall be preferred. The Department, in coordination with LGUs, other 
21 
government agencies, NGOs, local residents and communities, and other sectors 
22 
concerned, shall identify and prioritize forestlands to be afforested. 
23 
24 
SEC. 26. Afforestation in Alie/Jable and Disposable Lands a/Jd Private 
25 
Lands." The afforestcltion of private lands and other alienable and disposable lands, 
26 
which have been left idle and unproductive and have been tacking vegetation for a 
27 
considerable time, shall be encouraged: Provided, that such private lands and other 
28 
alienable and disposable lands are not prime agricultural lands as determined or 
29 
certified by the DA. The private landowner(s) shatl also be entitled to the Incentives 
30 
provided for under Section 27 herein, particularly SUbsections (a), (b), (c), (d), and (e): 
31 
Provided, that such private forest plantations are duly registered with the Department 
32 
33 
SEC. 27. Ince'ntives.- To encourage qualified persons to engage in forest 
34 
plantation activities, the following incentives shall be granted, in addition to those 
35 
already provided by eXisting laws: 
36 
a) The agreement holder shall not be subject to any obligation prescribed or 
37 
arising out of the provisions of the National Internal Revenue Code on 
23 


withholding tax at source on Interest paid on a loanls incurred for the 
2 
development of forest plantation; 
3 
b) Amounts expended by the agreement holder in the development and 
4 
operation of a forest plantation prior to the commercial harvest shall be regarded 
5 
as ordinary and necessary expenses or as capital expenditure; 
6 
c) The Board oJ Investments (BOI) shall classify forest plantations as pioneer and 
7 
preferred area8 of investment under its annual priority plan subject to the rules 
8 
and regulations of the said Board; 
9 
d) The agreement holder shall be given priority to access credit assistance being 
'10 
granted by Government-owned, -controlled andl or -supported financial 
11 
institutions; 
12 
e) Upon the premature termination of the agreement at no fault of the holder, all 
13 
depreciable permanent and semi-permanent improvements such as roads, 
14 
buildings, ami nurseries including the planted and standing trees and other forest 
15 
crops introduced and to be retained in the area shall be properly evaluated and 
16 
the holder shall be entitled to a fair compensation thereof, the amount of which 
17 
shall be mutually agreed upon by both the Department and the agreement 
18 
holder, and in case of disagreement between them, by arbitration through a 
19 
mutually acceptable and impartial third party adjudicator; 
20 
f) No contract or agreement shall be terminated except for cause or for reason of 
21 
public interest and only after due process; and 
22 
g) The agreement holder has the right to transfer, contract, sell, or convey his 
23 
rights to any qualified person 'following the guidelines to be Issued by the 
24 
Secretary, 
25 
26 
The Secretary may provide or recommend to the President or to Congress other 
27 
incentives in addition to those granted herein and in existing laws in order to promote 
28 
reforestation and the establishment of forest plantations, 
29 
30 
SEC. 28. Voluntary Offer to Reforest.- Private landowners, whether natural or 
31 
juridical persons, may participate in reforestation and plantation development or similar 
32 
programs of the Department, with the landownel' contributing his land and the 
33 
Department furnish in" funds to reforest the area on a co-production agreement: 
34 
Provided, That the property shall be exclusively devoted to the planting of forest species 
35 
for at least one (1) rotation, which undertaking shall be annotated at the back of the title 
36 
of the property; Prollided, further, That prime agricultural lands as determined or 
37 
certified by the DA shall not be the subject of a voluntary offer to reforest. 
38 
24 


1 
2 
3 
4 
CHAPTER VII 
TREE PARK/COMMUNAL FOREST 
5 
SEC. 29. Establishment andlor Maintenance of City or Municipal Parks or 
6 
Communal Forest.- Every city or municipality stlall establish a city or municipal park or 
7 
oommunal forest and shall include in its yearly budget the necessary funds for its 
8 
establishment and maintenance. Upon request of the city or municipality concerned, the 
9 
Department shall set aside an appropriate area of the protection or production 
10 
forestlands as the cage may be, as city or municipal park or communal forest and shall 
11 
provide technical assistance to the local government concerned in the development of 
12 
the park or communal forest. 
13 
14 
SI!C. 30. Establisilment of Tree Parks in Subdivision and Tree Planting on 
15 
Roadsides.- Every subdivision project to be developed after the passage of this Act 
16 
shall Include the establishment of a tree park of not less than fifty percent (50%) of the 
17 
reqUired total open spaces as provided in Section 2 of Presidential Decree No. 953, 
18 
requiring the planting of trees in certain places Guidelines for the establishment of tree 
19 
parl(s within a subdiVision shall be prepared jointly by the subdivision owner concerned, 
20 
the I-lousing and Land Use Regulatory Board (HLURB) and th'e Department. The 
21 
subdivision owner shall provide the funds for this purpose. These guidelines and 
22 
allocation of funds shall be a condition precedent in the approval of the subdivision plan. 
23 
For every major public road or irrigation construction project, the Department of Public 
24 
Works and Highways (DPWH) shall include the planting and maintenance of trees along 
25 
the road/highway or ilrrigation canals as landscaped rest areas every twenty-five (25) 
26 
I(ilometers thereof, whenever appropriate, and shall provide adequate funds for this 
27 
purpose. Each city and municipality shall also allocate adequate funds for the planting, 
28 
care, and maintenance of trees or perennial shrubs in "greenbelts" or "green spaces" 
29 
such as road/street sides, center islands, among others. 
30 
31 
32 
CHAPTER VIII 
33 
34 
FOREST PROTECTION 
35 
36 
SEC. 31. Commercial Logging Ban in Protection forestlands.- There shall be 
37 
a permanent ban on commercial logging activities in all protection forestlands defined, 
38 
categorized, and SUb-classified in Section 6 (a) herein. No licenses, permits, or 
25 


1 
agreements to cut any timber or to harvest, collect or gather non-timber forest products 
2 
therein shall be issued: Provided, That sustainable indigenous and traditional practices 
3 
of the IPs/ICCs shall be recognized and respected. 
4 
5 
SEC. 32. Forest Protection in Production Forestlands.- Protection forestlands 
6 
found inside production forestlands shall be excluded from any logging operation. The 
7 
holder of the agreement or license .over these production forestlands shall establish a 
8 
buffer zone and delineate their boundaries, marking the same with concrete monuments 
9 
or any otller visible, permanent, and practicable signs. 
'lO 
11 
To ensure the conservation and sustainable use of forest resources in production 
12 
forestlands, Ilolders (If tenurial instruments shall submit to the Department a Forest 
13 
Management Plan (FMP) containing stnct environmental guidelines. 
14 
15 
Upon the expiration or termination for cause of any Timber License Agreement 
16 
(TLA), no extension shall be granted and the area covered by the agreement shall be 
17 
sub"classified as protection forestland after the Department had excluded the 
18 
production forestland and degraded areas that may be subject of a reforestation or tree 
19 
plantation project. 
20 
21 
SEC. 33. Multi-,sectoral Forest Protection Council . • There shall be created a 
22 
Multi"Sectoral Forest Protection Council in every province, city and municipality which 
23 
shall be responsible for the over-all protection of the forestlands and forest resources 
24 
found therein. Among their powers. and functions found in other provisions under this 
25 
Act, they sllall be primarily responsible for law enforcement, prevention of forest fires, 
26 
integrated pest managlement and protection against forest invaSive species. The council 
27 
shall be composed of representatives from DENR, NCIP. Department of Agrarian 
28 
Reform (DAR), concerned LGUs, NGOs, People's organizations, church and local 
29 
academic institution, 8mong others. 
30 
31 
SEC. 34. Assistance of Law enforcement Agencies.- The Department may 
32 
call upon law enforcement agencies and instrumentalities of the Government such as 
33 
the Philippine National Police (PNP), the Armed Forces of the Philippines (AFP), and 
34 
the National Bureau of Investigation (NBI) for the enforcement of the forest-related 
35 
laws, rules and regulations, 
36 
37 
SEC. 35. Role of LGUs and Local Residents.- It shall be incumbent upon 
38 
LGUs concerned to render assistance in protecting and conserving forestlands within 
26 


----------------------------------------------------
1 
their respective territorial jurisdiction. Qualified local residents shall be deputized by the 
2 
Department to assist in the drive against illegal logging, kaingin··making and forestland 
3 
occupation. These d'oputized residents shall likewise be authorized to arrest forest 
4 
violators within their oommunities subject to existing laws and regulations on arrest and 
5 
detention. The LGUs shall provide assistance to these deputized residents in cases of 
6 
arrests and seizures. 
7 
8 
SEC. 36. Pre'v6ntion of Forest Fires and Control of Forest Pests and 
9 
Diseases.- In collaboration with concerned LGUs and the Bureau of Fire Protection 
'10 
(BFP), the Department shall formulate and implement a fire prevention and control 
11 
program, providing incentives to LGUs, community organizations, or individuals who 
12 
participate in preventing and controlling forest or grass fire. The Department shall 
13 
likewise formulate and implement a national integrated forest pest and disease 
14 
management program including quarantine procedures for Imported forest seeds and 
15 
forest products to prevent, minimize or control forest pests and diseases. 
16 
17 
SEC. 37. Information and Rewards System. - The Department shall establish 
18 
an information and r·ewards systefTl as part of the community's participation in the 
19 
protection of forest resources. The rewards shall be payable immediately upon the 
20 
establishment of prima facie proof of violation. 
21 
22 
23 
CHAPTER IX 
24 
25 
FORESTRY F!ESEARCH. EDUCATION, TRAINING AND EXTENSION 
26 
27 
SEC. 38. Resollrc/r and Technology Development Trallsfer.- Research and 
28 
technology development transfer shall be strengthened to support sustainable 
29 
management of forest resources. The Department, the Department of Science and 
30 
Technology (DOST), the Commission on Higher Education (CHED), and the colleges of 
31 
forestry of State Universities shall, within one (1) year from the passage of this Act, 
32 
prepare a comprehensive national forestry and environmental research and technology 
33 
development and transfer program in furtherance of sustainable forest management 
34 
which shall be implemented, monitored, and reviewed in accordance with existing 
35 
research management systems. Adequate and sustainable funds to implement research 
36 
and technology development plans and transfer program shall be provided by each of 
37 
the aforementioned a~Iencies and institutions under the General Appropriations Act. 
38 
27 


1 
SEC. 39. PuMic Information, Edlication and Advocacy Campaign.- With the 
2 
support from LGUs, NGOs, media and other organizations. the Department, the 
3 
Philippine Information Agency (PIA), the Department of Education (OepEd), CHED, 
4 
State-owned and private universities and colleges shall formulate and implement a 
5 
nationwide program for sustained public information and advocacy campaign for forest 
6 
and natural resources conservation and sustainable forest development and 
7 
management. The OspEd shall include subjects on forest and natural resources In tile 
8 
curricula for elementary and high school education, The CHED shall likewise include 
9 
ecology and environment courses in the general education curricula, Congress shall 
10 
allocate funds to the Department for the purpose of coordinating a systematic campaign 
11 
to promote community ecological awareness, including the preparation of informational 
12 
and educational materials therefore, 
13 
14 
SEC. 40. Formal Forestry Education.· The CHED, in collaboration with the 
15 
DeparbYlent, the Board of Examiners for Foresters of the Professional Regulations 
16 
Commission (PHC), Philippines Forestry Education Network and the duly accredited 
17 
national professional foresters organization shall actively pursue the rationalization of 
18 
formal forestry education and tile establishment of centers of excellence in forestry and 
19 
environmental education to ensure high quality manpower output to meet the needs of 
20 
the forestry sector. 
21 
22 
SEC. 41. Continuing Education on Forest/y,. A non-formal program of 
23 
continuing education shall be established to maintain the growth of the forestry 
24 
profession. The PRe Board of Examiners for Foresters and the Civil Service 
25 
Commission (CSC) shall provide the guidelines for a program in continuing education in 
26 
forestry, In cooperation with academic institutions, the Department shall develop the 
27 
Infrastructures to institutionalize non-formal continuing education for (he forestry sector. 
28 
29 
SEC. 42. Trall1ing Centers, In COOr(li11ation with TESDA, DepEd, CHED and 
30 
State Universities and Colleges (SUCs) as well as accredited institutions, the 
31 
Department shall establish and institutionalize a network of training centers in strategic 
32 
parts of the country to provide regular and up-to-date training on the various aspects of 
33 
sustainable forest management, development, and utilization to forest officers, LGUs, 
34 
NGOs, local communities, and indigenous peoples, Furthermore, the Department shall 
35 
ensure that personnel appointed to oritical and sensitive positions undergo training to 
36 
prepare them to discharge their duties and responsibilities profeSSionally, efficiently and 
37 
effectively, 
38 
28 


1 
SEC. 43. Fore'sby Development Center.- The Forestry Development Center 
2 
(FDC) based in the College of Forestry anel Natural Resources. University of the 
3 
Philippines at Los Baftos, shall continue to serve as the primary policy research and 
4 
development center for forestry and natural resources management The FDC shall 
5 
perform its functions in close coordination with tile Department and other policy 
6 
research institutions in the country, It shall assist the Department in the formulation, 
7 
review, and evaluation of proposed and existing pOlicies on forestry and natural 
8 
resources management 
9 
10 
The FDC, together with the national organization of private institutions as 
11 
stipulated in Section 14 of (his Act, shall assist the Department in the formulation and 
12 
review of relevant for"st and forest related policies to ensure the contribution of the 
13 
forestry sector to the national economy and sustainable development 
14 
15 
To enable the FDC to carry out its mandated function of policy research, it shall 
16 
have a share in the Sustainable Forestry Development Fund pursuant to Section 64 
17 
herein. 
18 
19 
CHAPTER X 
20 
21 
DISPOSITION AND UTILIZATION OF FOREST RESOURCES 
22 
23 
SEC. 44. Modes of Forest Management Agreement.- The development, 
24 
utilization, and management of forestlands and/or forest resources shall be undertaken 
25 
under the control and supervision of the State through the Department The State may 
26 
directly undertake such activities or it may enter into co-production, joint venture or 
27 
production sharing agreement with qualified Filipino citizens or corporations or 
28 
associations, subject to relevant laws, rules and regulations: Provided, That interested 
29 
local communities and indigenous peoples through their organized and duly recognized 
30 
associations shall be given priority in the grant of appropriate tenurial instruments 
31 
implementing the said agreements. Such tenurial instruments and/or agreements shall 
32 
have a duration of twenty-five (25) years, renewable for another twenty-five (25) years, 
33 
under such terms and conditions as may be provided by the Secretary: Provided, 
34 
fur/hel; That such tenurial instruments and/or agreements may not be terminated except 
35 
for cause or if public interest so requires. Current valid and subsisting licenses, 
36 
contracts, 
or agreements granted 
by the government for the 
development, 
37 
management, and utilization of forest resources shall be allowed to continue under the 
38 
same terms and condilions until their expiry, or prior to lheir expiry shall be allowed to 
29 


1 
be converted into any mode authorized herein under the guidelines promulgated by the 
2 
Secretary: Providecl, That no such conversion shall be allowed in protection forestlands 
3 
as defined in Section 6(a) herein, on sub-classification of forestlands. The Department 
4 
is hereby authorized to formulate rules and regulations covering the relevant terms and 
5 
conditions thereof including the determmation and collection of the government share, 
6 
subject to the approval of Congress. For watersheds and other areas where existing 
7 
facilities for basic seNices such as water and power are located, the Department may 
8 
enter Into a forest management agreement witll the service contractor in the area. Such 
9 
agreement shall haVE> a duration of twenty-five (25) years, renewable for another 
10 
twenty-five (25) years, under such terms and conditions agreed upon by both parties. 
11 
Proviclecl, That such agreement may not be terminated except for cause or if public 
12 
interest so requires or upon mutual agreement by the parties. 
13 
14 
All forest development activities such as logging, reforestation, timber stand 
15 
improvement, forest protection, and delivery of community service within an area 
16 
covered by timber concessions shall be consolidated under the FMP which shall be 
17 
prepared by or under the supervision of an accredited private registered forester whose 
18 
signature and dry seal shall appear in the plan and the supporting documents submitted 
19 
for the purpose. 
20 
21 
SEC. 45. 
Minimum Conditions for the Issuance of Co-production, JOint 
22 
Venture and Producjion Sfwring Agreoment. The fallowing provisions shall be the 
23 
minimum conditions for the issuanc<;l of co-production, joint venture and production 
24 
sharing agreement: 
25 
26 
a) The agreement holder shall furnish the necessary management, technology 
27 
and financial services when required, as determined by the Secretary; 
28 
b) A provision for government share of revenues and the manner of payment 
29 
thereof; 
30 
c) A provision on consultation and arbitration with respect to tile interpretation of 
31 
the agreement; 
32 
d) A provision for anti-pollution and environmental protection measures; 
33 
e) A provision for the reforestation, restoration and protection of the forest; 
34f) A provision for an effective monitoring scheme to be implemented the by the 
35 
Depaliment, which shall include, but shall not be limited to periodic inspection of 
36 
all records and bool(s of account of the agreement holders; 
37 
g) A commitment to community development; 
30 


1 
h) The submission of a management and development plan to be approved by 
2 
the Secretary; and 
3 
i) Other provisions that the Secretary shall impose, upon the recommendation of 
4 
the Director of the FMB, that will improve and sustain the development and 
5 
management of the forestlands and its resources, which shall include, among 
6 
others, a projection of annual income and revenues generated, to be used as 
7 
basis in tile determination of government shares. 
8 
9 
SEC. 46. Transfer.- No holder of a co-production. jOint venture, or production 
10 
shanng agreement or contract shall sub-contract, transfer, exchange, sell or convey the 
11 
same or any of his right or interests therein without a written authority from the 
12 
Secretary. Moreover, no transfer shall be authorized unless the agreernent or ·contract 
13 
has been in existence and active for at least three consecutive years from issuance 
14 
thereof: Provided, Tllat the transferor has faithfully complied with the terms and 
15 
conditions of the said agreement or contract; the transferee has all tile qualifications 
16 
and none of the disqualifications to hold the same; and the transferee shall assume the 
17 
obligations of the transferor, Failure to comply With these conditions shall be sufficient 
18 
cause for the cancellation of the agreement or contract. 
19 
20 
SEC. 47. Non-Timber Forest Products.- Rattan, bamboos, vines, herbs, 
21 
exudates and other non-timber forest products are integral parts of the forest 
22 
ecosystem. The establishment of plantations of non-timber producing species shall be 
23 
encouraged and supported. The deVelopment, management and utilization of non-
24 
timber forest products shall be allowed in accordance with the guidelines to be 
25 
promulgated by the Department. 
26 
27 
However, in granting permits to harvest, utilize, gather or collect non-timber 
28 
forest products, in their natUral or original state, in the production forestlands, the priority 
29 
shall be given to forest dependent families, local communities, and indigenous peoples 
30 
living near or within the subject forestlands. 
Further, the gathering or collecting of 
31 
animals for any purpose in the production forestland shall be governed by the existing 
32 
wildlife law and the guidelines to be promulgated by the Department. 
33 
34 
SEC. 48. Silvicultural and Harvesting System.- The Department shall 
35 
formulate the appropriate silvicultural and harvesting system and all measures shall be 
36 
taken to achieve an approximate balance between growth and harvest. The use of 
37 
forest products from production forestlands shall be promoted and practiced. 
38 
31 


1 
SEC. 49. Mangrove forest.- Harvesting and utilization sl1all only be allowed in 
2 
matured plantation forests within mangrove production forests: Provided, That in 
3 
government priority proJects, l1arvesting of naturally grown trees sl1all be allowed. 
4 
5 
SEC. 50. Grazing.- Land for grazing purposes shall only be limited to production 
6 
forestlands. The Department shall identify and delimit areas suitable for grazing 
7 
purposes: Provided, That no forestland fifty percent (50%) in slope or OVer may be 
8 
utilized for grazing purposes: Provided, fudher, That existing pasture lease agreements 
g 
or forestland grazing lease agreements 81lall be allowed to continue under the same 
10 
terms and conditions until their expiry: Provided, finally, That abandoned Or idle, 
11 
expired, or cancelled grazing or pasture lands shall be subject to land use capability 
12 
assessment and or land use suitability assessment to determine their best use or 
13 
combination of uses. No new grazing or pasture permit, lease, or contract shall be 
14 
issued, nor existing ones allowed to continue unless covered by existing rules and 
15 
regulations governing the Philippine EIS System. 
16 
17 
SEC, 51. Mining and Power Generation Operations in Forestlands.- Mining 
18 
activities in protection forestlands shall not be allowed. Power generation and small-
19 
scale mining operations in forestlands, except in protection forestlands, may be allowed 
20 
subject to existing rules and regulations governing the Philippine EIS System. Forest 
21 
resources Inside mineral reservations and permitted areas are under the Department's 
22 
jurisdiction, and their management 'and utilization are subject to the proviSions of this 
23 
Act. 
24 
25 
SEC. 52. Roads and Otfler Infrastructures.- Roads and other infrastructure 
26 
including the development of mineral reservations and energy resources inside 
27 
forestlands shall be constructed with the least unpact and disturbance to the biodiversity 
28 
of the area found in such forestlands. Government agencies and tlleir contractors 
29 
undertaking the construction of roads, bridges, communication and other infrastructure 
30 
facilities and installations inside forestlands shall seel< prior authority from the 
31 
Department and shall comply with existing rules and regulations governing the 
32 
Philippine EIS System. 
33 
34 
35 
36 
37 
CHAPTER XI 
FOREST-BASED INDUSTRIES 
32 


1 
SEC. 53. Establishment and Operations of Forest-Based Industries.- To 
2 
meet the demands for forest-based goods and services of a growing population, the 
3 
State through the Department shall promote the establishment, operation, and 
4 
development of forest- based industries in non-protection forestlands. 
5 
6 
SEC. 54. Inc6'ntives for Forest-Based Industries.- To enable forest-based 
7 
industries to be mom efficient, competitive, and economically viable, the following 
8 
incentives are hereby granted in addition to those already provided by existing laws: 
9 
10 
a) All processing plants or mills shall be assured of their supply of raw materials, 
11 
preferably but not exclusively from local sources; 
12 
b) All processing plants or mills shall be granted operating permits for five (6) 
13 
years renewable for another five (5) years: Provided, That permits for processing 
14 
plants owned or operated by holders of forest management agreements or 
15 
contracts shall be co-terminus with said agreements or contracts. 
16 
17 
The Depaliment may provide on its own or propose to the President or to 
18 
Congress, other incEintives to encourage the establishment and development of 
19 
integrated forest .. based, particularly wood-based plants. Warranties to and agreements 
20 
with existing integrated forest-based plants to ensure the availability of raw materials 
21 
shall be subject to the process for as long as such integrated plants are operating. 
22 
Agreements or licenses over forest areas granted to wood-based plants shall be 
23 
converted into any mode authorized in this Act. Expansion in capacity of wood-based 
24 
plants shall be encouraged and the same shall be given priority access to production 
25 
forestlands and other areas available for development as source of raw materials. 
26 
27 
SEC. 55, Export and Sale of Locally Produced Wood Products.- Logs derived 
28 
from natural grown trees of whatever species cut, gathered, or removed from the 
29 
forestlands and raw or rough lumber manufactured from such logs shall not be 
30 
exported. Only finished and semi-finished lumber products, wood manufactures, wood 
31 
panels, and other finished wood products from such logs may be exported. Logs, 
32 
lumber and other finished products from forest plantations shall be exported only under 
33 
such guidelines as the Secretary 1n11Y promulgate. No person shall sell or offer for sale 
34 
any log, lumber, veneer, plywood or other manufactured wood products in the 
35 
international or domestic market without complying with the grading rules established by 
36 
the government. Failure to adhere to the established grading rules and standards, or 
37 
any act of falsification on the volume of logs, lumber, veneer, plywood or other wood 
38 
products sold in tile international or domestic market shall be sufficient cause for the 
33 


1 
cancellation of export Iicellse, wood processing permit, or other license or permit 
2 
authorizing the manufacture or sale of such products. 
3 
4 
SEC. 56. Importation and Sale of Logs and Other Forest and Wood 
5 
Products.- Logs, lumber, and other forest.· and wood-based products may be imported 
6 
to the country subject to the authonzation of the Secretary and to the tariff and duties 
7 
under Presidential Decree No. 1464 as well as quarantine regulations. Any product 
8 
manufactured or re-manufactured out of imported forest and wood materials shall be 
9 
allowed to be sold in the domestic or international market: Provided, That the grading 
10 
rules and standards tMrefore are complied with, oli1erwlse the sanctions in Section 69 
11 
hereof shall be imposed. 
12 
13 
14 
15 
16 
CHAPTER XII 
FOREST CHARGES, FEES AND GOVERNMENT SHARES 
17 
SEC. 51. Feel. and Government Shares for the Utilization, Exploitation, 
18 
Occupation, Possession of and Activities within Forestlands- The Department shall 
19 
prescribe appropriate fees and rentals for the different kinds of utilization, exploitation, 
20 
occupation, possession, or activities within forestlands. Provided, That payment of or 
21 
collection of slich fees and rentals shall be waived for parties/industries mandated by 
22 
law to manage, conserve, develop and protect forestlands and forest resources found 
23 
therein, except administrative fees for the filing and processing of applications for the 
24 
issuance and renewal of licenses, permits, and agreements: Provided, further, That 
25 
watershed administrators and/or service contractors that have forest management 
26 
agreements with the Department as provided for under Section 44 of this Act shall also 
27 
be entitled to the waivElr of fees, except administrative fees. 
28 
29 
The Department shall prescribe appropriate and equitable fees for the use of 
30 
water and forest by parties/industries concerned for power generation. domestic and 
31 
industrial irrigation, carbon sequestration and biodiversity benefits. 
32 
33 
SEC. 58. Forest Charges.- There shall be collected charges on each cubic 
34 
meter of timber cut in forestland, whether belonging to the first, second, third or fourth 
35 
group, twenty-five percent (25%) of'the actual FOB market price based on species and 
36 
grading: Provided, however, That, in the case of pulpwood and matchwood cut in 
37 
forestland, forest char(Jes on each cubic meter shall be ten percent (10%) of the actual 
38 
FOB market price. 
34 


2 
SEC. 59. Cllalges on Firewood, Branches, and Other Recoverable Wood 
3 
Wastes of Timber.- Tilere shall be yollected forest charges of ten percent (10%) based 
4 
on FOB market price on each cubic meter of firewood cut in forestland, branches and 
5 
other recoverable wood wastes of timber, such as timber ends, tops and stumps, when 
6 
used a8 raw materials for the manufacture of finished products, 
7 
8 
However, if jointly authorized by the Secretaries of both the Department and the 
9 
DA, first and second group woods may be removed from land whicl1 is more valuable 
10 
for agriculture 1I1an for forest purposes to be used as fireWood, 
11 
12 
SEC. 60. 
C"i~rges on Non-Timber Forest Products.-
Non-timber forest 
13 
products in forestlancls, as determined by DENR, shall be subject to forest charges, 
14 
equivalent to ten percent (10%) of the actual FOB market price, 
15 
16 
SEC. 61. Determil1atiol1 of Market Price of Forest Products.- The actual FOB 
17 
marl<et price of Iorest products shall be justly determined by DENR. 
18 
19 
These forest GI1arges shall be applied to naturally growing timber and forest 
20 
products gathered from forestlands, ,alienable and disposable lands, and private lands, 
21 
22 
The measurement of forest products and the collection of charges thereon shall 
23 
be undertaken by the D,epartment, which shall likewise provide for the time, manner, 
24 
and place of payment of such charges, 
25 
26 
SEC. 62. Fees for Administrative Services Rel1dered by the Department-
27 
Fees shall be collected for various services rendered by personnel of the Department In 
28 
connection with their duties and responsibilities as may be requested by interested 
29 
parties, including but not limited, to surveying, mapping and other similar service 
30 
activities: Provided, That administrative fees shall be waived for services rendered to 
31 
local communities or indigenous peoples in the preparation of their management plans, 
32 
33 
CHAPTER XIII 
34 
35 
APPROPRIATIONS AND FINANCIAL SUPPORT 
36 
37 
SEC. 63. Appropriations.- The amount necessary to initially implement the 
38 
proVisions of tllis Act shall be charged against the appropriations of the Department of 
35 


1 
Environment and Natural Resources in the current General Appropriations Act. 
2 
Thereafter, such sums as may be necessary to fully implement the provisions of this Act 
3 
shall be included in the annual General Appropriations Act. For local government units, 
4 
the funding requirements shall be taken from their internal revenue allotment (I RA) and 
5 
other sources of income. 
6 
7 
SEC. 64. SlIstainable Forestry Development Fllnd (SFDF)." A Sustainable 
8 
Forestry Development Fund (SFDF) to be administered by tile Department as a special 
9 
account in the National Treasury is hereby established to provide sustainable funds for 
10 
forest protection, reforestation, and forest development and management, including 
11 
rehabilitation and preservation of watershed areas, CBFM program, information and 
12 
educational campaign as well as scholarship programs and poliCY research. At least 
13 
thirty percent (30%) of the forest charges and government share in all products 
14 
removed from the forestlands, rentals, proceeds from sales of confiscated forest 
15 
products Including conveyances, fines and penalties, and administrative fees collected 
16 
shall be set aside for the buildup of the SFDF. The fund may be augmented by grants, 
17 
donations, endowment from variolls sources, domestic or foreign for purposes related to 
18 
their functions. 
19 
20 
Disbursements from the fund shall be subject to the usual accounting and 
21 
budgeting rules and regulations: Provided, That no amount shall be disbursed to cover 
22 
the operating expenses of the Department and other concerned agencies. A trust fund 
23 
committee, composed of the Secretary as Chair and the Secretary of tile Department of 
24 
Budget and Management (DBM), the DILG Secretary, and the National Treasurer or 
25 
their representatives shall sit as members and manage the SFDF, with the FMB as 
26 
secretariat. 
27 
28 
SEC. 65. Creation of Sustainable Fund Facility Office (SFFO)." There shall be 
29 
created within the FMB of the DENR an office called Sustainable Fund Facility Office to 
30 
perform the following mandates: 
31 
32 
a) Conduct further exploration, identification. and development of new and 
33 
improved and more effective financial Illechanism, and examine the potential 
34 
and results of the innovative use of existing mechanisms to promote sustainable 
35 
forest management, taking into account the full range of goods and services, 
36 
Including forest-related environmental services, which include watershed 
37 
protection, carlJon sequestration, biodiversity conservation, energy provision and 
38 
maintenance of Illany ecological functions; and, 
36 


1 
b) Develop and test rapid valuation methods which are market-based, policy 
2 
relevant and efficient, and reflect regional and national characteristics and 
3 
requirements. 
fhese valuation methods should include a focus on the 
4 
development of approaches which incorporate a wide range of values, reflecting 
5 
the overall value of forest ecosystems, as appropriate, as well as ways to 
6 
internalize the externalities. 
7 
8 
SEC. 66. Specific Functions of SFFO.- The specific functions of SFFO are as 
9 
follows: 
10 
11 
a) Generate new and additional public and private financial resources at the 
12 
domestic and international levels to enable the country to sustainably manage, 
13 
conserve and develop forest resources througll afforestation and reforestation 
14 
and to combat deforestation and forest and land degradation; 
15 
b) Prioritize forest activities or national resources development strategies in order 
16 
to respond to increased concerns for sustainable forest management, taking into 
17 
consideration the financial resources available to them; 
18 
c) Call upon all government agencies and non-government organizations or 
19 
institutions to give special consideration to areas or provinces with least 
20 
developed or poorly developed forest cover and to engage them in financial 
21 
cooperation to meet their needs for forest products and services and sustainably 
22 
manage their forest, and in some cases expand their forest cover; 
23 
eI) Encourage private investment in sustainable forest management by providing 
24 
a stable and transparent investment environment within an adequate regulatory 
25 
framework that also encourages the re-investment of forest revenues into 
26 
sustainable forest management; and 
27 
e) Ope rationalize an investment promotion entity taking into account the 
28 
functions and circumstances under which such an entity would operate such as 
29 
Its scope in relation to existing financial mechanism. 
30 
31 
SEC. 67. Fees from Payment for Environmental Services (PES).- The SFFO 
32 
shall formulate a certain value to environmental services and establish appropriate 
33 
pricing, institutional and redistribution systems that witt lead to sustainable and socially 
34 
optimal lanet use practices. PES is a form of payment for ecosystem services as a 
35 
method of internalizing the positive externalities associated with a given ecosystem or a 
36 
specific resource use. 
37 
37 


1 
2 
CHAPTER XIV 
3 
OFFENSES AND PENALTIES 
4 
5 
SEC. 68. Non·.[=stablishment of Tree Parks/Communal Forests.- Any city. 
6 
municipality or sUbdivision owner who fails to establish tree parks as provided In 
7 
Sections 29 and 30 herein shall be punished by a fine of not less than One Hundred 
8 
Thousand Pesos (P'IOO,OOO.OO) nor more than Five Hundred Thousand Pesos 
9 
(P500,000.OO), The subdivision plan will not be given approval until guidelines have 
10 
been formulated and funds have lleen allocated for the purpose. 
11 
'12 
SEC. 69. Harvesting, Gathering and/or Col/ecting Timber or Ot/ler Forest 
13 
Products Without Allthor/ty.- Any person Who shall harvest, cut, gather, collect, or 
14 
remove timber or other forest products from any forestland, or naturally grown timber 
15 
inside alienable and disposable public land and private lands except as provided in 
16 
Section 11 hereof, or 
forest resources in alienable and disposable lands without 
17 
authority from the Secretary or found to possess the same without pertinent required 
18 
legal documents shall be punished by imprisonment ranging from prision mayor 
19 
minimum period to reolusion temporal minimum period and/or a fine equivalent to ten 
20 
(10) times the value of the said forest product but not less than Fifty Thousand Pesos 
21 
(150,000.00): Provided, That in the case of partnerships, associations or corporations, 
22 
the president, managing partner, and general manager shall be held liable, and if such 
23 
officer is an alien, he shall, in addition to the penalty, be deported without further 
24 
proceedings on the part of the Bureau of Immigration and Depoltation. Offenders who 
25 
are public officials shall be deemed automatically dismissed from office and 
26 
permanently disqualified from holding any elective or appointive position. 
27 
28 
All timber or any forest products cut, gathered, collected, removed, or possessed 
29 
and all the conveyances, machinery, equipment, implements, work animals, and tools 
30 
lIsed in connection with this violation shall be seized and confiscated in favor of the 
3" 
government. 
32 
33 
SEC. 70. //Iey,,1 Cutting as an Act of Economic Sabotage.- Any of the acts 
34 
enumerated in the preceding section committed by an armed group or by any group 
35 
through organized and systematic manner, for commercial purposes, shall be 
38 
considered an act of economic sabojage punishable by reell/sion perpell/a. 
37 
38 


1 
The commission of any of the prohibited acts by two or more individuals with or 
2 
without the aid of any mechanical device shall constitute a prima facie evidence that the 
3 
act is organized and systematic. 
4 
5 
Any permittee/agreement holder who shall buy logs from unlicensed loggers or 
6 
loggers operating without permits shall be considered in violation of this Act and, upon 
7 
conviction, shall also be punished with reclusion perpetua. 
8 
9 
SEC. 71. Use of //legally Gut Timber in Government Infrastructure ProJects.-
'10 
Contractors of government infrastructure projects shall obtain certification from the 
11 
Department that the logs or lumber to be used therein were obtained from legitimate 
12 
sOllrces. The lise of illegally cut naturally grown timber in government infrastructure 
13 
projects shall be sufficient cause for tile imposition of penalties provided in Sec. 69, on 
14 
harvesting of forest products without authority, and Sec. 70, on illegal cutting as an 
15 
economic sabotage, including the withholding of the payment to the contractor. 
16 
17 
SEC. 72. Damage to Residual Trees.- To ensure the sustainability of the natural 
18 
forests, adequate number of residual trees shall be marked, to be retained as part of the 
19 
managed forests and as the future till1ber crop, before any harvesting operation shall 
20 
commence. Any marl(l,d reSidual tree that is damaged during such operation is subject 
21 
to a fine equivalent to lour (4) times the regular forest charges. 
22 
23 
SEC. 73. Grazing Livestock on Forestlands Without a Permit.- Any person 
24 
fOllnd to have caused the grazing of livestock in forestlands and grazing lands without 
25 
an authority under a lease or permit to graze, upon conviction, shall be penalized with 
26 
imprisonment of not less than two (2) years nor more than four (4) years and a fine 
27 
equivalent to ten times, the regular rentals due in addition to confiscation of the livestock 
28 
and all improvements introduced in the area in favor of the government: Provided, That 
29 
In case the offender is a corporation, partnership, or association, the officer or director 
30 
ti1ereof who directly caused or ordered such shall be liable. In case the offender is a 
31 
public officer or employee, he shall, in addition to the above penalties, be deell1ed 
32 
automatically dismissed from office and permanently disqualified from holding any 
33 
elective or appointive position in the government service. 
34 
35 
SEC, 74. Unlawful Occupation or Destruction of Forestlands.- Any person 
36 
who, without authorily from the Secretary, enters and occupies or possesses, or 
37 
engages in kaingin-making for his own private use or for others, any forestland or 
38 
grazing land, or in any' manner destroys such forestland or part thereof, or causes any 
39 


1 
damage to the timber stands and other fOrest product found therein, or assists, aids or 
2 
abets another person to do so, or sets a fire, or negligently permits a fire to be set 
3 
therein, or refuses lawful orders to vacate the area when ordered to do so shall, upon 
4 
conviction, be pUnished with penalties in the amount of not less than One Hundred 
5 
Thousand Pesos (Pi 00,000.00) nor more than Five Hundred Thousand Pesos 
6 
(P500,OOO.OO) and imprisonment of not less than six (6) years nor more than twelve 
7 
(12) years for each olfense: Provided, That in tile case of an offender found guilty of 
8 
I(aingin-making, the penalty shall be imprisonment of not less than ten (10) years nor 
9 
more than twelve (12) years and a fine equivalent to eight times the regular forest 
10 
charges due on the Forest products destroyed without prejudice to payment of the full 
11 
cost of rehabilitation of the occupied areas as determined by the Department: Provided, 
12 
furtlJer, That the maximum of the penalty prescribed herein shall be Imposed upon the 
13 
offender who repeats the same offense, and double the maximum penalty upon the 
14 
offender who commits the same offense for the third time or more. In all cases, the court 
15 
shall further order the eviction of the offender from the area occupied and the forfeiture 
16 
to the government of all improvements made therein, including all vehicles, domestic 
17 
animals and eqUipment of any kind used in the commission of the offense. If not 
18 
suitable for use by the Department, said improvements, vehicles, domestic animals and 
19 
equipment shall be sold at public auction, tile proceeds from which shall accrue to the 
20 
SFDF. If the offender is an alien, he shall be deported after serving his sentence and 
21 
payment of fines, without any further proceedings. An offender who is a government 
22 
officer or employee, shall, in addition to the above penalties, be deemed automatically 
23 
dismissed from office and permanently disqualified from holding any elective or 
24 
appointive pOSition in the government service. 
25 
26 
SEC. 75. lIIeg/11 Conversion of CIty or Municipal Parks, Communal Forests, 
27 
and Tree Parks In Subdivlsions.- 'Any person found to have converted or caused the 
28 
conversion of a city or municipal park or communal forest, or tree parks within 
29 
subdiVisions established pursuant to Sec. 29 and Sec. 30 ilerein and Section 2 of 
30 
Presidential Decree No. 953, requiring the planting of trees in certain places, into other 
31 
uses including the construction of permanent buildings therein, or in any manner 
32 
destroys or causes any damage to the timber stands and other forest product found 
33 
therein, or assists, aids or abets another person to do so, or sets a fire, or negligently 
34 
permits a fire to be set therein, lIpon conviction, shall be penalized by imprisonment of 
35 
six (6) years and one (1) day to twelve (12) years or a fine of not less than One Hundred 
36 
Thousand Pesos (P100,OOO.OO) nor more than Five Hundred Thousand Pesos 
37 
(P500,OOO.OO), or both fine and imprisonment at the discretion of the Court. The 
38 
offender shall liI(ewise be imposed a fine equivalent to eight times the commercial value 
40 


1 
of the forest products destroyed without prejudice to payment of the full cost of 
2 
rehabilitation of the areas as determined by the Department: P/Dvided, further, That the 
3 
maximum of the penalty prescribed herein shall be imposed upon the offender who 
4 
repeats the same offense, and double the maximum penalty upon the offender who 
5 
commits the same offense for the third time Dr more. The court shall further order the 
6 
forfeiture to the government of all improvements made therein, including all vehicles, 
7 
domestic animals, and equipment of any kind used in the commission of the offense If 
8 
not suitable for use by the Department, said improvements, vehicles, domestic animals 
9 
and equipment shall be sold at public auction, the proceeds from which shall accrue to 
10 
the SFDF, An offender who is a government officer or employee, in addition to the 
11 
above penalties, shall be deemed automatically dismissed from office and permanently 
12 
disqualified from holdin!:J any elective or appointive position in the government service. 
13 
14 
SEC. 76. Misdllclaration or Falsification of Reports on Forest Resource 
15 
Inventory, Scaling, and Survey by a Government Official or Employee. - Any public 
16 
officer or employee who knowingly misdeclares or falsifies reports pertaining to forest 
17 
resource inventory, scaling, survey, and other similar activity which are contrary to the 
18 
criteria and standards established in the rules and regulations promulgated by the 
19 
Secretary therefor, after an appropriate administrative proceeding, shall be dismissed 
20 
from the service with prejUdice to re-employment. Upon conviction by a court of 
21 
competent jurisdiction, the same public officer or employee shall further suffer an 
22 
imprisonment of not les:s than eight (8) years nor more than twelve (12) years and a fine 
23 
of not less than One Hundred Thousand pesos (P100,000.OO) nor more than Five 
24 
Hundred Thousand Pesos (P500,OOO,OO) and the termination of license to practice 
25 
forestry if the offender is a professional or registered forester: Provided, That the 
26 
inventory, survey, scale, classification, and similar reports referred herein shall be 
27 
rendered null and void. 
28 
29 
SEC. 77. Unlawful Operation of Sawmills.- Any person operating a sawmill or 
30 
mini-sawmill without authority from the Secretary, shall be punished by a fine of not less 
31 
than One Hundred Thousand Pesos (Pi00,OOO.00) and confiscation of the sawmill or 
32 
mini-sawmill and complementary equipment in favor of the gove'rnment. 
33 
34 
SEC. 78. Unlawful Operation of Wood Processing Plants and Downstream 
35 
Forest-Based Industries.- Any person operating a wood processing plant or 
36 
downstream forest-based industry without authority from the Secretary. shall be 
37 
punished by, upon conviction by a court of competent jurisdiction, imprisonment of not 
38 
less that eight (8) yeani nor more than twelve (12) years and a fine of not less than Five 
41 


1 
Hundred Thousand Pesos (P500,OOO.OO) and contiscatlon of the wood processing plant 
2 
and complementary equipment in favor 01 the government. The Department shall 
3 
promulgate the necessary guidelines, subject to the provisions of this Act, that will 
4 
define the terms and conditions for the operation of a wood processing plant andlor 
5 
other downstream forest-based industlies. 
6 
7 
SEC. 79. Prohibition on the Issuance of Tax Declaration on Forestlands. All 
8 
tax declaration issued over forestland shall be considered null and void. Any local 
9 
government official or employee who issues a tax declaration for any purpose on any 
10 
part of forestlands, upon conviction, shall be penalized with imprisonment for a period of 
11 
not less than four (4) YEIars nor more than eight (8) years and a fine of not less than One 
12 
Hundred Thousand Pesos (Pi00,000.OO) nor more than Five Hundred Thousand Pesos 
13 
(P500,OOO.OO) and perpetual disqualification from 110lding an elective or appointive 
14 
office. 
15 
16 
SEC. 80. Unlawful Possession of Implements and Devices Used by Forest 
17 
Officers." Any person found- possessing or using implements and devices used by 
18 
forest officers shall be penalized with imprisollment of not less than eight (8) years nor 
19 
more than twelve (12) 'Years and a fine of not less than One Hundred Thousand Pesos 
20 
(P100,OOO.OO) nor mOl'e than Five Hundred Thousand Pesos (P500,OOO.DO) in addition 
21 
to the confiscation of HliCh implements and devices and the automatic cancellation of 
22 
any license agreement, license, lease or permit. 
23 
24 
Any forest officer who willingly allowed unauthorized person(s) to use these 
25 
implements and devices under his care shall be penalized with imprisonment of not less 
26 
six (6) years and one (1) day to no more than twelve (12) years and a fine of not less 
27 
than One Hundred Thousand Pesos (Pi0a,OOO.oO) nor more than Five Hundred 
28 
Thousand Pesos (P100,OOD.OO). 
29 
30 
In addition, the said forest .officer shall be dismissed from the service willl 
31 
prejudice to reinstatement and with perpetual disqualification from holding an elective or 
32 
appointive pOSition. 
33 
34 
SEC. 8'1. Unauthorized Introduction of Logging Tools and Equipment Inside 
35 
Forestlands." It shall be unlawful for any person or entity to possess, bring, or introduce 
36 
any logging tools or equipment Inside forestlands without prior authority, from the 
37 
Secretary or his duly authorized representative. Any person found guilty of illegal 
38 
posseSSion of salel 1099in9 tools or eqUipment shall be liable to imprisonment of six (6) 
42 


years and one (1) day to twelve (12) years or a fine of not less than One Hundred 
2 
Thousand Pesos (P100,ODO.DO) nor more than Five Hundred Thousand Pesos 
3 
(10500,000.00) or both imprisonment and fine, and confiscation of said logging tools and 
4 
equipment in favor of the government. 
5 
6 
SEC. 82. Non.Payment and Not/-Remittance of Forest Charges .• Any person 
7 
who fails to [Jay the amount due and payable as forest charges to the government shall 
8 
not be allowed to transport, convey, sell, nor use the timber or forest product. Moreover, 
9 
failure to pay within thirty (30) days upon assessment of forest charges shall be a 
10 
ground for confiscation of tile said timber or forest product In favor of the government. 
11 
Any person who fails or refuses to remit to the proper authorities said forest charges 
12 
collectible pursuant to the provisions of tilis Act or the National Internal Revenue Code, 
13 
as amended, or who d"lays, obstructs or prevents the same, or who orders, causes or 
14 
effects the transfer or diversion of the funds for purposes other than those specified in 
15 
said Acts shall, upon conviction, be imprisoned for not less than six (6) years nor more 
16 
than ten (10) years and fined from 'One Hundred Thousand Pesos (Pi0Q,000.00) nor 
17 
more than Five Hundred Thousand Pesos (P500,OOO.OO). If the offender is a 
18 
corporation, partnership, or association, the officers and directors thereof shall be liable. 
19 
20 
SEC. 83. Institution of Criminal Action by Forest Officers.· Any forest officer 
21 
shall arrest, even without warrant, any person who has committed or is about to commit, 
22 
or is committing in his presence any of the offenses defined in this chapter. The tools, 
23 
animals, equipment and conveyances used in committing the offense, and the forest 
24 
products cut, gatllered, tal<en or possessed by the offender in the process of comm ilting 
25 
the offense shall also be seized and confiscated in favor of the government. The 
26 
arresting forest officer Hhall thereafter deliver within six (6) hours from the time of arrest 
27 
or seizure both the offender and the confiscated forest products, conveyances, tools 
28 
and equipment, or the documents pertaining to the same, and file the proper complaint 
29 
with the appropriate official designated by law to conduct preliminary investigation and 
30 
file information in court. If the arrest and seizure are made in the forest far from 
31 
autilOrities designated by law to conduct preliminary investigations, the delivery to and 
32 
filing of the oomplaint with the latter shall be done within a reasonable time sufficient for 
33 
ordinary travel from the place of arrest to the place of delivery. The seized forest 
34 
prodUcts, materials, conveyances, tools and equipment shall be immediately disposed 
35 
of in accordance with the regulations promulgated by the Secretary. 
36 
37 
The Secretary may deputize any agency. barangay official, or any qualified 
38 
person to protect the forest and exercise the powers or authority provided for in tile 
43 


1 
preceding paragraph. Reports and 00mplaints regarding the commission of any of the 
2 
offenses defined in this chapter not committed in the presence of any forest officer or 
3 
any of the deputized officers shall immediately be reported to the forest officer assigned 
4 
in the area where the offense was allegedly committed. Thereupon, the investigating 
5 
officer shall receive the evidences supporting the report or complaint and submit the 
6 
same to the appropriate official authorized by law to conduct a preliminary investigation 
7 
of criminal cases and file the information in court. 
8 
9 
Tile Secretary of Justice shall designate in every city and province a special 
10 
prosecutor who shall file charges against forest Violators to ensure \tleir speedy 
11 
prosecution. 
12 
13 
SEC. 84. LiabiJ'ity of Custodian of Confiscated Forest Products.- Any public 
14 
officer who fails to produce the timber or forest products, including tools, conveyances, 
15 
eqUipment, and devices in his custody pursuant to a seizure or confiscation made 
16 
thereon, or who shall appropriate, take, misappropriate, or shall permit another person 
17 
to tal(e such timber forest products wholly or partially, shall suffer the penalty provided 
18 
for in Article 217, on Malversation of Public Funds or Property, of the Revised Penal 
19 
Code. In addition, the said public officer shall be dismissed from service with prejudice 
20 
to reinstatement and with perpetual disqualification from holding any elective or 
21 
appointive office. 
22 
23 
24 
25 
26 
CHAPTER XV 
ADMINISTRATIVE PROVISIONS 
27 
SEC. 85. Strengthening of the Forest Management Sector.-
In order to 
28 
effectively implement the provisions of this Act, the FMB shall be transformed into a line 
29 
bureau with functions clearly defined and enumerated under the implementing rules and 
30 
regulations of this Act. To ensure that the scientific practice of forestry in the country is 
31 
properly implemented, only registered foresters shall be appointed to the positions of 
32 
Director and Assistant Director and Regional Directors of the FMB as well as to all other 
33 
positions where the services of professional foresters are required in accordance with 
34 
existing laws and the relevant rules and regulations issued by the Civil Service 
35 
Commission (CSC) and the Professional Regulations Commission (PRC). 
36 
37 
SEC. 86. AutllOrity of the Secretary on the Use of Forest Resources.- The 
38 
utilization of torest resources from natural forests found in forestlands, government-
44 


1 
established reservations, and all other lands including ancestral domains or tinder the 
2 
management of other government agencies shall be prohibited unless covered by 
3 
permits issued by the Department: Provided, Tilat in the case of ancestral lands and 
4 
domains, tile terms of the agreement with the concerned indigenous cultural community 
5 
shall likewise govern. 
6 
7 
SEC. 87. Administrative Authority of the Secretary or his Duly Authorized 
8 
Representative to Oreler Confiscation.- In all cases of violations of this Act or other 
9 
forest laws, rules, and regulations, the Secretary or his dUly authorized representative 
10 
may order the confiscation of forest products illegally harvested, cut, gathered, removed 
11 
or possessed or abandoned, and all conveyances used either by land. water, or air as 
12 
well as all machinery, equipment, implements, and tools used in the commission of the 
13 
offense and to dispose of the same in accordance with pertinent laws. regulations, or 
14 
policies on the matter. 
15 
16 
If the confiscated forest products are in danger of deteriorating, the Secretary 
17 
may order that the same be sold at public auction even before the termination of the 
18 
judicial proceedings, with the proceeds kept in trust to await the outcome of the judicial 
19 
proceedings. 
20 
21 
No court of the Philippines shall have jurisdiction to issue any Writ of Replevin, 
22 
restraining order, or preliminary mandatory injunction in any case involVing or growing 
23 
out of any action by the Secretary or his duly authorized representative in the exercise 
24 
of the foregoing administrative authority. 
25 
26 
SEC. 88. Adm.inistrative Authority of tbe Secretary to Impose Fines.- In all 
27 
cases of violations of tilis Act and other forest laws, rules and regulations where fine is 
28 
the principal penalty, the Secretary, after consultation with the forest-based industries 
29 
affected, is hereby authorized to impose administratively the penalty consisting of the 
30 
amount and the schedules of the fine which shall be officially published in a national 
31 
newspaper of general circulation. 
32 
33 
SEC. 89. Authority of Forest Officers.- When in the performance of their official 
34 
duties, forest officers or other government officials or employees duly authorized by the 
35 
Secretary shall have free entry into areas covered by a contract, agreement, license, 
36 
lease or permit. ForE,st officers are authorized to inspect and to open closed vans 
37 
suspected to contain illegally harvested, collected or transported forest product: 
38 
Provided, That It is done in the presence of the shipper or consignee or two (2) 
45 


1 
responsible public offidals in the locality. Forest officers are authorized to administer 
2 
oath, take acl<nowledgment in official matters connected with the functions of their 
3 
office, or take testimony in official investigations conducted under the authority of this 
4 
Act and the implementing rules and regulations issued by the Secretary pursuant 
5 
thereof. 
6 
7 
SEC. 90. Visitorial Powers.- The Secretary or his duly authorized representative shall, 
8 
from time to time, investigate, inspect, and examine records and other documents 
9 
except bank records related to the operation of any person granted the pnvilege, 
10 
contract, or agreement to utilize forest resources to determine compliance with the 
11 
terms and conditions stipulated in the grant, contract or agreement, this Act, and 
12 
pertinent laws, rules, and regulations. 
13 
14 
SEC. 91. Other Ince/l'tives.- Fifty percent (50%) of the value of confiscated materials 
15 
shall be used as incentives to informants and members of multi-sectoral forest 
16 
protection councils, including Depaliment personnel. Additional incentives may be 
17 
provided to personnel of the Department, in addition to those provided under the 
18 
Government Selvice Insurance System (GSIS) or Workmen's Compensation Law. They 
19 
shall also be entitled to free legal assistance should legal cases be filed against them in 
20 
the performance of official duties. 
21 
22 
SEC. 92. Citizens' Suits. - For purposes of enforcing the provisions of this Act or its 
23 
implementing rules and regulations, 'any citizen may file an appropriate civil. criminal or 
24 
administrative action in the proper court against: 
25 
a) any person who violates or fails to comply with the provisions of this Act or its 
26 
implementing rules and regulations; or 
27 
b) the Department or other implementing agencies with respect to orders, rules and 
28 
regulations issued inconsistent with this Act; and 
29 
0) any public officer who willfully 01' grossly neglects the performance of an Act 
30 
specifically enjoined as a duty by this Act or its implementing rules and regulations, or 
31 
abuses his authority in the performance of his duty, or in any manner, improperly 
32 
perFOIms Ilis duties under this Act or its implementing rules and regulations: Provided, 
33 
Ilowever, That no suit can be filed until after a thirty-day notice has been given to the 
34 
public officer and the alleged violator concerned and no appropriate action has been 
35 
taken thereon. 
36 
37 
The court shall exempt slich action from the payment of filing fees, and shall, lil<ewise, 
38 
upon prima facie showing of the non-enforcement or violation complained of, exempt 
46 


1 
the plaintiff from the filing of an injunction bond for the issuance of a preliminary 
2 
injunotion. In the event that the citizen's suit should prevail, the Court shall award 
3 
reasonable attorney's fees, moral damages, and litigation costs as appropriate 
4 
5 
SEC. 93. Suits Against Public Participation and tl19 Enforcement of this Act.-
6 
Where a suit is brought against a person who filed an action as provided in Section 92 
7 
herein, or against any person, institution or government agency tIlat implements this 
8 
Act, it shall be the duty of the investigating prosecutor or the Court, as the case may be, 
9 
to immediately make a determination not exceeding thirty (30) days whether said legal 
10 
aotion has been filed to harass, vex, exert undue pressure, or stifle such legal actions of 
11 
the person complaining for the enforcement of tile provisions of this Act. Upon 
12 
determination thereof, evidence warranting the same, the Court shall dismiss the case 
13 
and award attorney's fees and double damages. This prOVision shall also apply and 
14 
benefit public officers who are sued for acts committed in their offiCial capacity, there 
15 
being no grave abuse of authority, and done in the course of enforcing this Act. 
16 
17 
SEC. 94. Protection to Witnesses in Cases Involving Violation of Forestry Laws.-
18 
Witnesses to violations of this Act or other forestry laws and regulations, including the 
19 
immediate members 01 the family of said witnesses shall be given protection, security 
20 
and benefit, subject to the provisions of Republic Act No 6981, otherwise known as 
21 
"The Witness Protection, Security and Benefit Act" and its implementing rules and 
22 
regulations. 
23 
24 
SEC. 95. Rule-Making Authority.- In consultation with the NCIP, the DILG, the 
25 
Department of Financ€', the league.s of provinces, cities, and municipalities, and other 
26 
government agencies mentioned herein, the Department shall promUlgate the 
27 
implementing rules and regulations within one (1) year from the etfectivity of this Act. 
28 
29 
SEC. 96. Congressional Oversight Committee on the Sustainable Forest 
30 
Management Act.- There is hereby created a Congressional Oversight Committee 
31 
composed of seven (7) members from the Senate Committee on Environment and 
32 
Natural Resollrces alld seven (7) members from the HOllse of Representatives 
33 
Committee on Natural Resources. The Chairpersons of the corresponding committees 
34 
shall also be the Co-chairpersons of ,the Oversight Committee. 
35 
36 
The secretariat of the Oversight Committee shall be drawn from the existing secretariat 
37 
personnel of the committees comprising the oversight and the funding shall be taken 
38 
from the appropriations of both the House of Representatives and the Senate. 
47 


2 
SEC. 91. Transitory Provision.- Upon the approval of this Act, the Department shall 
3 
evaluate the conditions of all forestlands covered by existing TLAs, licenses, or permits 
4 
and the like, whicll shall be allowed to continue until their expiry unless terminated for 
5 
causel such as; 
6 
7 
a) when the licensee has been found to be a dummy, 
8 
b) when the licensee has been found to be fanning out the license or receiving royalty of 
9 
any kind; 
10 
c) when the licensee has been found to be cutting or operating outside the limits of the 
11 
license or within an area specifically designated or sub-classified by the Department as 
12 
protection forestland; 
13 
d) when the licensee has been found to be allowing illegally-cut timber to be invoiced 
14 
under Its license; 
15 
e) when tile licensee has been found to be inducing any other person to log in other 
16 
areas in violation of the, Department's regulations; 
17 
f) failure to submit to the Departmenllhe required copies of auxiliary Invoices 
18 
covering timber manifested under the license; 
19 
g) failure to leave undamaged an adequate stand of young trees for residual growing 
20 
stock or for seeding purposes and to employ the necessary number of laborers needed 
21 
for timber management work; 
22 
h) when the licensee has, for the third time after written warning, intentionally 
23 
cut, Injured or destroyed trees marked by forest officers and unmarked poles and 
24 
saplings for future growing stock, seeding, Or protection; 
25 
i) failure to employ the requirerl number of concession guards as determined 
26 
by the Department; 
27 
j) failure to protect the concession or license area or parts thereof from being converted 
28 
into i<alngin, or from illegal timber cutting, and other forms of trespass; 
29 
k) when the licensee has been found to have failed to put up the processing plant for 
30 
the area within the required period, when made a condition in the award of the area and 
31 
the grant of the license; 
32 
I) failure to pay pendin~1 forest accounts; 
33 
m) failure to maintain and make conspicuous the approved and established boundaries 
34 
of his concession or license area; 
35 
n) failure to suspend operations within a conflicted area when so required by the 
36 
Department or its authorized representatives, pending final decision of the conflict; 
37 
0) when the license is found to have been obtained through fraud or misrepresentation 
38 
or by false, misleading statements; 
48 


1 
p) allowing a contractor to operate the license area or concession; and 
2 
q) violation of any of Ihe terms and conditions of the license, the NIPAS Act and its 
3 
implementing rules and regulations, the Wildlife Resources Conservation and Protection 
4 
Act, or any of the provisions of law on internal revenue and labor, and Department 
5 
regulations. 
6 
"{ 
Any of the violations enumerated above will be cause for the immediate cancellation of 
8 
the permit or timber license agreement. 
9 
10 
CHAPTER XVI 
11 
12 
FINAl PROVISIONS 
13 
14 
SEC. 98. Separability Clause. -
Should any provision 
herein be declared 
15 
unconstitutional or invalid, the same shall not affect the valiclity or legality of the other 
16 
provisions. 
17 
18 
SEC. 99. Repealing Clause. - Subsections (b), (d), (e), (f), (g), and (i) of Section 4 of 
19 
Act No. 3915; Republic Act Nos. 460 and 7161; Presidential Decree Nos. 705, 1153, 
20 
1515,1559,1775 and 1998; Letter of Instruction No. 818; Executive Order Nos. 277, 
21 
series of 1987, and Executive Order No. 725, series of 1981, are hereby repealed, and 
22 
all laws, orders, rules and regulations, or any part thereof which are inconsistent 
23 
Ilerewith are likeWise hereby repealed or amended accordingly: Provided, That this Act 
24 
shall not in any manner amend the IPRA and the NIPAS law. 
25 
26 
SEC. 1()O. Effectivity .. - This Act shall take effect thirty (30) days from the date of its 
27 
publication in the Offic:ial Gazette or in at least two (2) national newspapers of general 
28 . circulation. 
Approved, 
49