CONGRESS OF THE PHILIPPINES 
FOURTEENTH CONGRESS 
Third Regular Session 
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SENATE 
S. No. 3580 
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10 F[[j-2ilii;lll 
Prepared by the Committees on Environment and Natural Resources, Finance, Local Government 
and Ways and Means with Senators Legarda, Ejercito Estrada, Trillanes IV, Cayetano (P)., 
Madrigal, Angara, Aquino III and Lacson as authors 
AN ACT PROVIDING FOR SUSTAINABLE FOREST MANAGEMENT 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: 
CHAPTER I 
BASIC FORESTRY POLICIES 
SECTION 1. 
Short Title. - This Act shall be known as the "Sustainable Forest 
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Management Act of2009". 
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SEC. 2. Basic Policies. - In conformity with the provisions of the Constitution to 
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promote the general welfare and social justice in all phases of national development, to 
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protect and advance the right of the Filipino people to a balanced and healthful ecology in 
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accord with the rhythm and harmony of nature, and to conserve and develop the patrimony of 
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the nation, the State hereby adopts the following policies relative to the conservation and 
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management of forestlands and their resources: 
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(a) The specific limits of forestlands after these have been fixed and demarcated shall 
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not be altered except through an act of Congress; 
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(b) The use of forest resources shall bear a social function, responsibility and 
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accountability to promote the common good; and 


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(C) Integrated and sustainable, focusing on the resource and the people who manage, 
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conserve and benefit from it, shall be the guiding principle in the management, protection, 
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conservation and development of forest resources. 
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In carrying out the above policies, the following strategies shall be pursued: 
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(I) Watershed as the Basic Forestland Management Unit. -
Forestlands shall be 
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conserved, developed and managed utilizing watershed as the basic management unit and 
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under the concepts of sustainable and multiple-use management, including the conservation 
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of biodiversity; 
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(2) Multi-sectoral Participation. -
The participation of all sectors of society in 
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sustainable forestland conservation, management and development shall be promoted. 
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Equitable sharing of the benefits derived from forestlands shall be ensured at all times; 
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(3) Community-based Forest Management (CBFM) as a Principal Strategy. - Vesting 
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access rights and responsibilities to dependent families, local communities and indigenous 
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peoples to undertake the management and development of appropriate forestland resources on 
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a sustainable basis shall be the principal strategy; 
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(4) Protection of Forestlands and Natural Resources as Priority Concern. -
The 
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protection of forestlands, especially protected areas and the natural resources in these areas, 
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shall be given priority concern in order to ensure environmental stability, enhance biological 
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diversity, increase productivity and provide economic benefits; 
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(5) Reforestation as a Priority Measure. - Economic and ecological reforestation shall 
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be given priority emphasis in order to rehabilitate and restore the usefulness or productivity of 
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open andlor denuded and degraded forestlands as well as increase the income of communities 
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concerned; 
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(6) Security of Tenure of Stakeholders. - In pursuance of the principles of sustainable 
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imd multi-use forest management and equitable access to forest resources, a secured tenure 
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shall be guaranteed to stakeholders concerned; and 


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(7) Professionalism in the Forest Service. - A dynamic, professional and people-
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oriented forest service shall be established and fully supported by the government. 
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SEC. 3. Definition of Terms. - As used in this Act, the term: 
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(a) "Afforestation" shall refer to the planting of trees or the artificial establishment of a 
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forest in areas that were not previously forested. 
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(b) "Agro-forestry" shall refer to a strategy for the sustainable management of lands 
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which increases their overall productivity by properly combining agricultural crops and/or 
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livestock with forest crops simultaneously or sequentially through the application of 
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management practices which are compatible with the local climate, topography, slope, soil, as 
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well as the cultural patterns or customary laws of the local population. 
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(c) "Agricultural lands" shall refer to lands of the public domain which have been 
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delimited, classified and declared as such, and are available for disposition under the 
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provisions of Commonwealth Act No. 141, as amended, otherwise known as the Public Land 
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Act. 
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(d) "Ancestral domains" shall refer to all areas generally belonging to indigenous 
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cultural communities (ICCs) or indigenous peoples (IPs) as defined in Republic Act No. 8371 
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or the Indigenous Peoples Rights Act (IPRA) ofl997. 
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(e) "Ancestral lands" shall refer to lands occupied, possessed and utilized by members 
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of the ICCs/IPs as defined in the IPRA. 
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(f) "Biological diversity or biodiversity" shall refer to the variability among living 
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organisms including, inter alia, terrestrial, marine and other aquatic ecosystems and the 
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ecological complexes of which they are part. This includes diversity within and between 
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species and ecosystems. 
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(g) "Buffer zones" shall refer to identified areas outside the boundaries of and 
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immediately adjacent to protected areas pursuant to Section 8 of Republic Act No. 7586 or 


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the National Integrated Protected Areas System Act of 1992 (NIP AS Act) that need special 
development control in order to avoid or minimize harm to the protected area. 
(h) "By-product" shall refer to any part taken from wildlife species such as hides, 
antlers, feathers, fur, internal organs, roots, trunks, branches, leaves, sterns, flowers and the 
like. 
(i) "Commercial logging" shall refer to the cutting or felling of trees for the purpose of 
disposing of the cut or felled logs for economic gains beyond survival and livelihood means. 
G) "Communal forest" shall refer to a tract of forestland set aside and established for 
and under the protection, administration and management of a city, municipality or barangay 
as a source of wood material for fuel, shelter and manufactured products; as a source of water 
for the community; and area for ecotourism and/or environmental protection or 
socioeconomic projects of local government units consistent with sustainable development. 
(k) "Community-based Forest Management Strategy" shall refer to all organized efforts 
of government to work with forest-dependent families and communities inside and adjacent 
to public forestlands with the intent to empower them and entrust to them the protection, 
rehabilitation, management, conservation and utilization of forestlands and their natural 
resources. 
(1) "Conservation" shall refer to planned protection and management of forests and 
their resources so as to prevent waste and ensure future use. 
(m) "Conveyance" shall refer to any vehicle, vessel, device or animal used in gathering 
or transporting forest products. 
(n) "Co-production agreement" shall refer to an agreement entered into by and between 
a qualified person and the government for the former to develop, utilize and manage, 
consistent with the principles of sustainable development, a private land or portion of a 
forestland wherein both parties agree to provide inputs and share the products or their 
equivalent cash value. 


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(0) "Critical watershed" shall refer to a drainage area of a river system supporting 
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existing and proposed hydroelectric power, irrigation works or existing water facilities 
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needing immediate protection and rehabilitation to minimize erosion and improve water 
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yield. 
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(p) "Department" shall refer to the Department of Environment and Natural Resources 
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(DENR). 
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(q) "Denuded forestlands" shall refer to former forested lands but are now devoid of 
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trees due to human activities. 
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(r) "Degraded forests" shall refer to all forestlands containing less than five (5) square 
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meters in basal area per hectare of commercial tree species with diameters at breast height or 
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diameter above buttress ofless than sixty-five (65) centimeters. 
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(s) "Environmentally critical project" shall refer to a project or program that has high 
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potential for significant negative environmental impact. 
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(t) "Environmental Compliance Certificate (ECC)" shall refer to the document issued 
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by the Department certifYing that a proposed project or undertaking will not cause a 
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significant negative impact on the environment; that the proponent has complied with all the 
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requirements of the Environmental Impact Assessment (EIA) System in accordance with 
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Presidential Decree No. 1151 or the Philippine Environmental Policy and Presidential Decree 
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No. 1586, establishing an Environmental Impact Statement System; and that the proponent is 
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committed to implement its approved Environment Management Plan found in the 
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Environmental Impact Statement (EIS) or mitigation measures identified in the Initial 
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Environmental Examination (lEE). 
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(u) "Environmental Impact Assessment" shall refer to the process of predicting the 
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likely environmental consequences of implementing a project or undertaking and designing 
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the appropriate preventive, mitigating or enhancement measures. 


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(V) "Environmental, Impact Statement System" shall refer to the organization, 
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administration and procedures that have been institutionalized pursuant to Presidential Decree 
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No. 1586 for purposes of assessing the significance of the effects of any project or 
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undertaking on the quality of the physical, biological and socioeconomic environment and 
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designing the appropriate mitigating and enhancement measures. 
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(w) "Forest" shall refer to land with tree crown cover or equivalent stocking level of 
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more than ten percent (10%) and an area of more than half a hectare. The trees should be able 
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to reach a minimum height of five (5) meters at maturity in situ. It may consist either of 
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closed forest formations where trees of various storeys and undergrowth cover a high 
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proportion of the ground 01' open forest formation with a continuous vegetation cover in 
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which tree crown cover exceeds ten percent (10%). Young natural stands and all plantations 
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established for forestry purposes which have yet to reach a crown density of ten percent 
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(10%) or tree height of five (5) meters are included under forest, as are areas normally 
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forming part of the forest area which ar~ temporarily unstocked as a result of human 
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intervention or natural causes but which are expected to revert to forest. Forests include such 
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stand types as dipterocarp, pine, mossy, molave, beach and mangrove. For the purpose of this 
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Act, natural forests may be classified according to: (1) primary-use and management, a forest 
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shall be classified as either protection forest 01' production forest after its most suitable and 
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dominant multi-use function has been determined pursuant to this Act; and (2) growth 
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formation, a forest is classified as either closed forest or open forest. Closed forests have 
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trees in various storeys and undergrowth that cover a high proportion, greater than fortY' 
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percent (40%) of the ground and do not have a continuous dense grass layer. Closed forests 
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are either managed 01' unmanaged forests, primary or in advanced state of reconstitution, and 
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may have been logged over one or more times but have kept their characteristics of forest 
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stands, possibly with modified structure and composition. Open forests have trees that are of 


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discontinuous layer, with a coverage of at least ten percent (10%) and less than forty percent 
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(40%). 
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(x) "Forest charges" shall refer to the levy imposed and collected by the government on 
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naturally growing timber and other forest products cut, harvested or gathered from the 
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forestlands and from "alienable or disposable (A&D)" lands in accordance with Republic Act 
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No. 7161. 
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(y) Forest-based industries" shall refer to various industries that are dependent on raw 
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materials or products derived from forests such as, but not limited to, wood, rattan, bamboo, 
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vines, latex, resins, saps, essences, fruits, flowers or wild flora and fauna. 
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(z) "Forest-based community" shall refer to a group of people residing inside or 
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immediately adjacent to a particular forestland who are largely or partly dependent on the 
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forest resources found in the area for their livelihood. 
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(aa) "Forestlands" shall refer to lands of the public domain that have been classified as 
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such and all unclassified lands of the public domain. 
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(bb) "Forest officer" shall refer to any public officer who, by the nature of his 
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appointment or the functions of the position to which he is appointed, is delegated by law and 
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regulations or commissioned by competent authorities to execute, implement or enforce the 
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provisions of this Act and other related laws and regulations. 
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(cc) "Forest plantation" shall refer to a forest stand established by planting andlor 
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seeding in the process of afforestation and reforestation. The stand is either of introduced 
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species or of any indigenous species, or both. 
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(dd) "Forest products" shall refer to goods and services derived from the forest such as, 
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but not limited to, timber, lumber, veneer, plywood, fiberboard, pulpwood, firewood, bark, 
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tree top, resin gum, wood oil, honey, beeswax, nipa, rattan or other forest growth such as 
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grass, shrub and flowering plant, the associated water, fish, game, scenic, historical and 
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educational. 


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(ee) "Forest resources" shall refer to all resources whether biomass such as plants and 
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animals, including its by-products and derivatives, which can be raw materials to produce 
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value-added products or non-biomass such as soil, water, scenery, as well as the intangible 
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services and values present in forestlands or in other lands devoted for forest purposes. 
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(ff) "Forest-resource derivatives" shall refer to substances/materials extracted, or as 
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exudates of the trees or part thereof such as, but not limited to, resins, gums tanning, 
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beeswax, rosin and alike. 
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(gg) "Grazing land" shall refer to a portion of the public domain which has been set 
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aside, in view of the suitability of its topography and vegetation, for the raising oflivestock. 
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(hh) "Indigenous cultural community (ICC)" shall refer to a group of people or 
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homogenous societies as defined in the IPRA Law. 
Indigenous cultural community is 
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synonymous with indigenous people. 
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(ii) "Industrial Forest Management Agreement (IFMA)" shall refer to a production-
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sharing contract entered into by and between the Department and a qualified person, whether 
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natural or juridical, wherein the former grants to the latter the exclusive right and 
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responsibility to invest in, develop, manage and protect a defined area of the production 
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forestland, including the establishment, management and utilization of industrial forest 
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plantation, consistent with the principle of sustainable development, primarily to supply the 
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raw material requirements of wood-based processing and energy-related industries and 
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wherein both parties share in the benefits therefrom. 
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OJ) "Industrial forest plantation" or "IFP" shall refer to any tract of land, whether 
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public or private, planted to timber-producing species, including rubber and durian trees 
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and/or non-timber species such as rattan and bamboo, primarily to supply the raw material 
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requirements offorest-based industries, energy-generating plants and related industries. 
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(kk) "Integrated forest-based industry" shall refer to a rationalized forest resource 
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industry which is characterized by the presence of complementary timber processing plants 


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such as sawmills, plywood and veneer mills, particleboard and fiberboard plants, pulp and 
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paper mills as well as secondary and/or tertiary wood processing plants. 
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(II) "Integrated wood processing plant" shall refer to a combination of two (2) or more 
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wood-based processing facilities, whether mechanical or chemical or both, such as sawmill, 
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veneer and plywood mills or pulp and paper mills, including other facilities in the 
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manufacture of semi- or completely finished wood products. 
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(mm)"Joint venture agreement" shall refer to an agreement wherein the government and 
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a qualified person organize a joint venture company, with both parties having equity shares, 
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to develop and manage a portion of forestland. 
Aside from earnings on the equity, the 
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government shall be entitled to a share in the output computed at a certain percentage 
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mutually agreed upon by and beneficial to both parties. 
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(nn) "Kaingin" shall refer to a portion of the forestland, whether occupied or not, which 
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is subjected to a farming system based on shifting or slash-and-burn clearing of forest for the 
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planting of agricultural and agro-forest crops. 
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(00) "Managed forest" shall refer to a forestland under a deliberate system of protection, 
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rehabilitation, development and utilization of resources to ensure sustainable production of 
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desired forest products andlor services as well as the conservation of soil, water, wildlife and 
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other natural resources. 
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(pp) "Multiple-use forestry" shall refer to the harmonized utilization, development and 
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management of forestlands for the production of two (2) or more products, goods andlor 
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services in conformity with the principle of sustainable development. 
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(qq) "National park" shall refer to an area of the public domain essentially natural 
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wilderness, scenic or historic in character which has been withdrawn from settlement, 
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occupancy or any form of exploitation except in conformity with an approved management 
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plan and set aside exclusively to conserve the area or preserve the scenery, the natural and 


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historic objects, wild animals and plants mainly for the purpose of biodiversity conservation 
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andlor human enjoyment. 
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(rr) "Natural forest" shall refer to a forest composed of naturally growing indigenous 
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trees, not planted by man, whose structure, composition and dynamics have been largely the 
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result of natural succession processes. 
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(ss) "Nongovernment organization (NGO)" shall refer to a nonstock, nonprofit and 
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voluntary organization established primarily to provide assistance or service. 
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(tt) "Non-timber forest products" shall refer to all biological materials and derivatives 
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other than timber which are extracted from forests for human use. 
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(uu) "Permit" shall refer to a short-term privilege or authority granted by the State to a 
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person to utilize any limited forest resources or undertake a limited activity within any 
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forestland without any right of occupation and possession. 
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(vv) "Person" shall refer to a natural as well as juridical person, including local forest-
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based communities or IPs organized in accordance with law or custom. 
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(ww) "Proces~ing plant or mill" shall refer to any mechanical setup, machine or 
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combination of machines used for the conversion of logs and other forest raw materials into 
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semi-finished or finished products. 
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(xx) "Production sharing agreement" shall refer to a contract between the government 
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and a person, whether natural or juridical, wherein both parties exercise the right to manage, 
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develop and utilize forest resources within a specific area of production forestlands and the 
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period of time with the person providing the financing, technology, management, personnel, 
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marketing and other inputs necessary to implement the agreement, and both parties sharing 
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the benefits under the terms and conditions set fOIth in said agreement. 
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(YY) "Protected areas" shall refer to identified portions of land and water set aside 
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pursuant to the NIP AS Act. 


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(zz) "Reforestation" shall refer to the planting of trees or artificial establishment of 
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forest in areas that were previously forested. 
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(aaa) "Reservation" shall refer to a forestland that has been reserved by the President or 
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by law for any specific purpose. 
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(bbb)"Rotation" shall refer to the number of years between the initial establishment ofa 
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plantation and the time when it is considered ready for harvesting. 
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(ccc) "Second-growth forest" shall refer to the status or condition of a forest subsequent 
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to commercial logging of which there is more or less sufficient volume of residuals of the 
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desired species of trees for future harvest. A second-growth forest is synonymous to a residual 
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forest. 
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(ddd) "Secretary" shall refer to the Secretary of the Department of Environment and 
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Natural Resources. 
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(eee) "Semi-finished wood products" shall refer to wood products requiring final stages 
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of manufacture and/or assembly such as, but not limited to, window components, tabletops, 
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Veneer and other similar wood products. 
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(fft) "Silvicultural practices" shall refer to any scientific intervention to further improve 
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or enhance the growth of trees or forest as a whole for future harvest. 
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(ggg) "Sustainable development" means meeting the needs of the present generation 
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without compromising the ability of the future generations to meet their own needs. 
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(hhh) "Sustainable forest management" shall refer to the process of managing a forest to 
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achieve one (I) or more clearly specified objectives of management with regard to the 
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production of a continuous flow of desired forest products and services without undue 
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reduction of its inherent values and future productivity, and without undesirable effects on the 
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physical and social environment. 


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(iii) "Tenure" shall refer to guaranteed peaceful access to and use of specific forestland 
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area and the resources found in the area through an agreement, contract or grant, which 
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cannot be altered or abrogated without due process. 
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(ijj) "Timber License Agreement (TLA)" shall refer to a privilege granted by the State 
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to a person to utilize forest resources within a forestland with the right of possession and 
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occupation thereof to the exclusion of others except the government, but with the 
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corresponding obligation to develop, protect and rehabilitate the same in accordance with the 
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terms and conditions set forth in the said agreement. 
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(kkk) "Trade" shall refer to the act of engaging in the exchange, purchase or sale of 
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forest products locally or internationally. 
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(Ill) "Urban forestry" shall refer to the establishment and management offorest in urban 
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environment for the physiological and psychological 
well-being of the people. 
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(mmm) "Watershed" shall refer to a land area drained by a stream or a fixed body of 
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water and with tributaries having a common outlet for surface runoff. 
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(nnn)"Watel'shed reservation" shall refer to a forestland that has been proclaimed by the 
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President or by law as such, primarily for water production purposes although other 
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compatible uses may be allowed under sustainable and multiple-use management concepts. 
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(ooo)"WiIdlife" shall refer to wild forms and varieties of flora and fauna in all 
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developmental stages. 
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(ppp) "Wood-based industries" shall refer to various industries that use wood as the 
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principal raw material such as, but not limited to, sawmilling, pulp and papermaking, and 
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plywood and veneer manufacturing, the upstream wood-based industries, as well as the 
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secondary and tertiary wood processing such as, but not limited to, moldings and furniture 
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manufacturing. 
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CHAPTER II 
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CLASSIFICATION OF THE PERMANENT FORESTLANDS 


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SEC. 4. The Permanent Forestlands. - All lands of the public domain classified as 
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forestlands under the Department's land classification program, including the remaining 
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unclassified lands of the public domain, shall be maintained as permanent forestlands. 
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SEC. 5. Subclassification of the Permanent Forestlands. - The permanent forestlands 
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shall be subclassified into the following categories according to primary use: 
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(a) Protection Forestlands. - All areas within the forestlands designated or set aside as 
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such shall constitute the protection forestlands. All mossy and primary/old-growth forests 
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and natural beach; all areas one thousand (1,000) meters above sea level, areas above fifty 
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percent (50%) slope; areas regardless of slope which are highly erodible or too rocky for the 
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establishment of either production forests or limited production forests, developed for the 
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principal objectives or establishing vegetative cover to prevent erosion, conserve water and 
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nurture wildlife, freshwater, swamps and marshes; all areas along the bank of rivers and 
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streams; and the shores of the seas and lakes throughout their entire length and within a zone 
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of three (3) meters in urban areas, twenty (20) meters in agricultural areas and forty (40) 
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meters in forest areas, along their margins which are subject to the easement of public use in 
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the interest of recreation, settlements, navigation, floatage, fishing and salvage shall also be 
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subclassified as protection forestlands: Provided, That reclassification shall be approved by 
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an act of Congress; and 
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(b) Production Forestlands. - All forestlands not subclassified as protection forestlands, 
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defined in this section, shall constitute the production forestlands to be devoted to the 
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production of timber and/or non-timber forest products or the establishment of industrial tree 
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plantations, tree farms, communal forests, agro-forestry, grazing or as multiple-use forests, 
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including water-based energy areas such as, but not limited to, hydrothermal and geothermal 
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reservations: Provided, That they shall be managed, developed and utilized in accordance 
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with a Department-approved management plan based on sustainable forest management 
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principles. 


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CHAPTER III 
2 
ADMINISTRATION AND MANAGEMENT OF FORESTLANDS 
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AND THEIR RESOURCES 
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SEC. 6. Jurisdiction and Control of Forestlands. - The Department shall be the 
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primary agency responsible for the conservation, management, development and utilization of 
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all forestlands and the unclassified lands of the public domain, including all the resources 
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found or growing in these lands. In coordination with the local government units (LGUs) and 
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other government agencies, the Department shall ensure that forestlands and unClassified 
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lands of the public domain are managed, conserved, developed, utilized and protected 
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consistent with the policies and strategies promulgated in this Act. The utilization and 
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development of forestlands and unclassified lands of the public domain, including their 
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natural resources, shall be undertaken in accordance with Department-approved management 
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plans: Provided, That the management plan for protected areas shall be prepared in 
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accordance with the provisions of the NIPAS Act. 
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Records pertaining to the specific limits of forestlands shall be made available to the 
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public upon request. Moreover, the Department shall furnish all provincial, municipal and 
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city governments copies of the maps of permanent forestlands located within their respective 
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territorial jurisdictions. 
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SEC. 7. Forestlands Managed by Local Government Units (LGUs). - Pursuant to the 
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pertinent provisions of Republic Act. No. 7160 or the Local Government Code, LGUs shall 
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share the responsibility in the sustainable management and utilization of forest resources 
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within their territorial jurisdiction, including those assigned by law to other government 
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agencies. Subject to vested rights, LGUs and the Department, in consultation with other 
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government agencies, local communities, nongovernment organizations, academic and 
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research institutions and other sectors, shall jointly undertake the preparation of forestland use 
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and watershed management plans, particularly the identification of multiple-use areas and 


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production forestlands within the territorial jurisdiction of each LGU which shall be made an 
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integral component of the latter's Comprehensive Land Use Plan (CLUP). The LOUs shall 
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be consulted on all forestry projects to be implemented in their territorial jurisdiction and 
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shall have equitable share of incomes derived therefrom. 
For this purpose, the Department, 
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the Department of the Interior and Local Government (DILG), the leagues of provinces, 
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cities, municipalities and barangays shall formulate a joint strategy and program to implement 
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this provision within one (1) year from the passage of this Act. 
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SEC. 8. Forestlands Under Other Government Agencies. - Forestlands and/or portions 
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thereof which have been assigned by law to the administration and management of other 
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government agencies for a specific purpose, including those devolved to the LOUs prior to 
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the passage of this Act, shall be subclassified as production forestlands and shall remain 
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under the administration and management of these government agencies which shall be 
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responsible for their conservation, protection, rehabilitation and subclassification into 
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forestland, and the specific purpose for which the entire area has been assigned or reserved 
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unless said assignment or reservation is consistent with the use of such area as protection 
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forestland. 
The Secretary or a duly authorized representative shall exercise oversight 
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functions over these forestlands. 
Moreover, these forestlands shall be administered in 
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accordance with a forest management plan, which shall be prepared by the government 
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agency or the concerned LOU in coordination with the Department and local communities 
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and organizations within one (1) year from the effectivity of this Act: Provided, That the 
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Department and the LOU or the government agency concerned shall periodically review, 
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monitor and evaluate the implementation of the said management plan: Provided, further, 
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That the harvesting of forest resources and the building of roads and other infrastructure shall 
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be undertaken only with the prior approval of the Secretary and after compliance with EIS 
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and ECC requirements: Provided, finally, That the Secretary shall recommend to Congress or 
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the President of the Philippines the reversion to the Department of the jurisdiction and control 


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over forestlands that are no longer needed nor used for the purpose by which they have been 
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constituted or reserved or in case the agency or the LOU concerned fails to rehabilitate, 
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protect and conserve the forestland and its resources in accordance with the approved 
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management plan. The Department shall determine the use of the reverted forestlands. 
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SEC. 9. Forest Resources Within Alienable and Disposable Lands.- All forest 
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resources, including trees planted or raised within alienable and disposable lands, belong to 
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the owner of the land who shall have the right to harvest, transport, sell, contract, conveyor 
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dispose of the same without the necessity of any clearance from the Department. The 
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Department shall encourage and provide incentives to landowners of alienable and disposable 
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lands to develop, maintain and manage forests on their lands or to develop and maintain a tree 
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plantation on such lands. Landowners who register their lands for forestry purposes shall be 
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assisted by the Department in the preparation of a management plan and shall be entitled to 
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appropriate incentives provided under Section 24: Provided, That agricultural lands devoted 
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to the planting and harvesting of forest resources shall remain subject to the provisions of 
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Republic Act No. 6657 or the Comprehensive Agrarian Reform Law. 
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SEC. 10. Forest Resources Within Forestlands. - All forest resources, including non-
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timber forest products, its by-products and its derivatives, whether naturally growing, planted 
18 
or raised which have been taken of or have been applied with some silvicultural practices, 
19 
within forestlands including those forest resources within the areas covered by a Certificate of 
20 
Ancestral Domain Title (CADT) or a Certificate of Ancestral Land Claim (CALC), shall be 
21 
issued with a permit, agreement or clearance that are deemed necessary and appropriate by 
22 
the Department, as recommended by the Forest Management Bureau (FMB). The transport of 
23 
these forest resources from forestlands, including those from the areas of the ICCs or IPs 
24 
covered by a CADT or a CALC, shall be covered by. a separate permit, agreement or 
25 
clearance duly issued by the Department. 
26 
Any declaration of forest resources as endangered, threatened, vulnerable and other 


17 
restriction shall be done in coordination, consultation and clearance from the FMB. 
2 
SEC. 11. Forest Resources Within Ancestral Domains. - The recognition, ownership 
3 
and management of ancestral lands and domains shall be governed by the provisions of the 
4 
IPRA, but any project of a holder of a CADT or any such similar instrument to develop or use 
5 
forestlands or forest resources that would result in severe soil erosion or environmental 
6 
degradation. shall be subject to the provisions of Presidential Decree No. ll51 or the 
7 
Philippine Environmental Policy; Presidential Decree No. 
1586, establishing an 
8 
Environmental Impact Statement System; and this Act. 
The National Commission on 
9 
Indigenous Peoples (NCIP) shall coordinate and consult the Department in providing 
10 
assistance to the IPs in the sustainable management and development of forest resources 
11 
within ancestral lands and domains. For this purpose, a multi-sectoral task force shall be 
12 
created, to be composed of representatives from the Department, the NCIP, the Department of 
13 
Agrarian Reform (DAR) and the concerned LGU to evaluate and validate the authenticity of 
14 
all CALT/CALC claims and applications of the IPs prior to the conduct of all survey 
15 
activities and the issuance of corresponding titles. 
16 
CHAPTER IV 
17 
FOREST MANAGEMENT PLANNING, 
18 
MONITORING AND ASSESSMENT 
19 
SEC. 12. Sustainable Forest Management Planning. - Subject to vested or prior rights, 
20 
the Department, in consultation and coordination with LGUs, other government agencies, 
21 
local communities, nongovernment organizations, individual and corporate entities, private 
22 
sectors, academic and research institutions and other concerned sectors shall, within one (1) 
23 
year from the effectivity of this Act, develop and adopt a sustainable forest management 
24 
strategy for each well-defined watershed or other appropriate forest management unit based 
25 
on criteria, indicators and standards for sustainable forest management which, at their 
26 
minimum, address the following requirements: 


18 
(a) Rational allocation of forestland uses and promotion of land-use practices that 
2 
increase productivity and conserve soil, water and other forestland resources; 
3 
(b) Protection of existing forest resources and conservation of biodiversity; 
4 
(c) Rehabilitation or development of denuded areas to expand the forest resource base 
5 
and promote food production activIties; 
6 
(d) Enhancement of the socioeconomic well-being of local communities including IPs 
7 
who are largely dependent on the forest for their livelihood; 
8 
(e) Promotion of closer coordination between and among the Department, LOUs, other 
9 
national agencies, nongovernment organizations, local communities, the private sector, 
10 
academic and research institutions, and other entities in the sustainable management of 
11 
forestlands; 
12 
(f) Adoption of community-based forest management as a principal strategy in the 
13 
management offorestlands and resources; and 
14 
(g) Integration of forest management and land-use plans at the barangay or community 
15 
level to the CLUPs of cities and municipalities, including the adoption of effective impact 
16 
monitoring system of forest management programs. 
17 
The Department shall adopt a comprehensive forestry master plan that shall define the 
18 
development of the combination of outlooks for the different forestry land uses, its 
1'9 
productivity, demand, supply, human resources policy and institutional changes. 
20 
SEC. 13. Watershed and Ecosystems Management Approach. - The Watershed and 
21 
ecosystems planning framework in environment and natural resources management shall be 
22 
adopted. The strategy for improved watershed resources management shall be demand-
23 
driven, community-based and multiple- and sustainable-use, considering national priorities 
24 
and concerns of local stakeholders. Watershed management programs shall be guided by 
25 
ecological, sociocultural, economic and institutional sustainability principles. A national 


19 
watershed information system shall be developed to guide policy formulation, program 
2 
development and implementation of watershed management initiatives. 
3 
A system of management prioritization of watersheds shall be pursued considering the 
4 
following: 
5 
(a) Water supply for domestic, irrigation, power, industrial and commercial use; 
6 
(b) Contribution to the economy; 
7 
(c) Biodiversity and environmental enhancement; 
8 
(d) Cultural and historical value; and 
9 
(e) Effect on downstream areas. 
10 
SEC. 14.Forestry Information System. - The Department shall establish a forestry 
II 
information system, which shall consist of a comprehensive up-to-date information on the 
12 
physical, social, economic, biological and environmental components of the country's 
13 
forestlands and forest resources. 
It shall include a resource monitoring system to enable the 
14 
Department and its field offices to track the utilization, movement or transfer of forest-based 
IS 
goods and services from the source to their end-users. The Department shall conduct and/or 
16 
update forest resource inventory at least once every five (5) years to ensure effective 
17 
management. 
18 
SEC. IS.Environmental Impact Assessment. Accounting and Valuation. - All new 
19 
critical projects to be implemented in forestlands such as harvesting, grazing and other special 
20 
uses, mineral prospecting and exploration, road, infrastructure and mill construction shall be 
21 
subject to the country's ETA system. The Department shall design and implement a system of 
22 
monitoring and assessment, using the criteria and indicators as framework, and shall 
23 
formulate appropriate standards as basis for assessing progress towards sustainable forest 
24 
management. 
25 
The Department shall formulate an appropriate natural resource accounting and 
26 
valuation system for various forestry initiatives. 


21 
shall provide these communities with appl'Opriate long-term security of tenure, technical, 
2 
managerial and financial assistance, training and other assistance, as the case may be, to 
3 
empower them to manage and benefit from the forestland resources on a sustainable basis. 
4 
SEC. 19. Qualified Participants. - Organized forest communities shall be given priority 
5 
to participate in the CBFM pl'Ogram. Indigenous peoples shall also be encouraged to actively 
6 
participate in the implementation of CBFM activities in recognition of their rights to their 
7 
ancestral domains and lands. 
8 
Organizations eligible to participate in CBFM shall have the following qualifications: 
9 
Ca) Members shall be Filipino citizens; and 
10 
(b) Members shall be any of the following: 
11 
(I) Traditionally utilizing the resource for their livelihood; 
12 
(2) Actually residing within the area to be awarded; or 
13 
(3) Residing adjacent and actually tilling and developing the area to be awarded. 
14 
CHAPTER VI 
IS 
REFORESTATION AND AFFORESTATION PROGRAM 
16 
SEC. 20. Reforestation/Rehabilitation of Protection Forestlands. - The reforestation 
17 
and rehabilitation of all critical watershed, denuded forestlands and degraded forests within 
18 
pl'Otection forestland not otherwise covered by the CBFM pl'Ogram shall be given top priority 
19 
and shall be vigorously pursued by the Department, consistent with the NIP AS Act and the 
20 
strategies and management plans therefore. The use of endemic species in the restoration 
21 
pl'Ogram for pl'Otection forestlands shall be given primary consideration to enhance the 
22 
biological diversity of the area. 
23 
The Department, in coordination with LGUs, other government agencies, NGOs, local 
24 
residents and communities, and other sectors concerned shall identifY and prioritize 
25 
forestlands to be reforested. An accelerated reforestation program in such identified priority 
26 
pl'Otection forestlands shall be undertaken to raise the forest cover to at least fifty percent 


22 
(50%) within five (5) years and to at least eighty percent (80%) within ten (10) years from the 
2 
effectivity of this Act. 
The Department shall allot funds to effectively accomplish 
3 
reforestation either by itself or through contract. 
The Department or other agencies 
4 
responsible for reforestation shall give priority to local communities in the granting of 
5 
technical and financial assistance for reforestation activities. 
6 
SEC. 21. Forest Plantation Development in Production Forestlands. - In accordance 
7 
with Section 40, the State, through the Department, may enter into joint venture, co-
8 
production or production sharing agreement with qualified forest community organizations, 
9 
LGUs, government-owned 
or -controlled corporations, private companies, individuals 
10 
and other interested parties concerned in the development of forest plantations in production 
11 
forestlands: Provided, That any portion of the production forestland identified by the 
12 
Department as needed for protection and rehabilitation purposes shall not be converted into 
13 
forest plantations. 
14 
SEC. 22. Reforestation in Forestlands under the Jurisdiction of Other Government 
15 
Agencies. -
Government agencies and institutions having management control over 
16 
forestlands pursuant to a law or grant shall be responsible for the reforestation of denuded and 
17 
degraded portions of such forestlands. The reforestation program of these agencies shall aim 
18 
to increase the vegetation of the degraded areas, to be identified jointly by the Department 
19 
and the agency c.oncerned, by fifty percent (50%) within the first five (5) years and at least 
20 
eighty percent (80%) within ten (10) years from the effectivity of this Act. The c.oncerned 
21 
agency in coordination with the Department shall prepare the ref.orestation plan and determine 
22 
the ratio of forested areas at any given time. Failure to reforest denuded and/or degraded 
23 
forestland identified in the reforestation plan within the period prescribed shall be sufficient 
24 
ground to request f.or reversion of the said forestlands to the jurisdiction and c.ontr.ol of the 
25 
Department: Provided, however, That in areas where CBFMS shall be implemented or where 
26 
there are existing facilities for basic services such as water and power as allowed by the 


23 
Department pursuant to Section 40, the completion of the reforestation program shall be 
2 
subject to the conditions provided in the tenurial document to be awarded by the Department 
3 
and the agency concerned to the participating local community or individual or in the Forest 
4 
Management Agreement of contractors operating such facilities for basic services, as 
5 
approved by the Department. 
6 
SEC. 23. Reforestation and Afforestation in Alienable and Disposable Lands or Private 
7 
Lands. -
Reforestation and afforestation or the establishment of tree farms or forest 
8 
plantations in alienable and disposable lands or private lands shall be encouraged. The 
9 
private landowner(s) shall also be entitled to the incentives provided for under Section 24, 
10 
particularly subsections (a), (b), (c), (d) and (e): Provided, That such private forest plantations 
11 
are duly registered with the Department. 
12 
SEC. 24. Tax Incentives. - The following tax incentives shall be granted to qualified 
13 
persons engaged in forest plantation activities: 
14 
(a) Expenses incurred in complying with the requirements of this Act shall be allowed 
15 
as deductible expenses for income tax purposes subject to the provisions of the National 
16 
Internal Revenue Code (NIRC) of 1997, as amended: Provided, That the deduction shall only 
17 
apply to the taxable period when the expenses were incurred; 
18 
(b) Incentives granted to registered domestic enterprise under the Investments Priorities 
19 
Plan (IPP); and 
20 
(c) Exemption from the payment afforest charges imposed under the provisions of this 
21 
Act. 
22 
To encourage qualified perSons to engage in forest plantation activities, the following 
23 
incentives shall be granted in addition to those already provided by existing laws: 
24 
(I) The agreement holder shall not be subject to any obligation, prescribed in or arising 
25 
alit of the provisions of the National Internal Revenue Code, on withholding tax at source 
26 
upon interest paid On loans incurred for the development and operation of forest plantation; 


24 
(2) Amounts expended by the agreement holder in the development and operation of a 
2 
forest plantation prior to the commercial harvest shall be regarded as ordinary and necessary 
3 
expenses or as capital expenditure; 
4 
(3) The Board of Investments shall classify forest plantations as pioneer and preferred 
5 
areas of investment under its annual priority plan, subject to pertinent rules and regulations; 
6 
(4) The agreement holder shall be given priority to access credit assistance being 
7 
granted by government-owned, -controlled and/or -supported financial institutions; 
8 
(5) Upon the premature termination of the agreement at no fault of the holder, all 
9 
depreciable permanent and semi-permanent improvements. such as roads, buildings and 
10 
nurseries, including the planted and standing trees and other forest crops introduced and to be 
11 
retained in the area, shall be properly evaluated and the holder shall be entitled to a fair 
12 
compensation thereof, the amount of which shall be mutually agreed upon by both the 
13 
Department and the agreement holder and, in case of disagreement between them, by 
14 
arbitration through a mutually acceptable and impartial third party adjudicator; 
15 
(6) Exemption from Forest Charges and Expanded Value-Added Tax; 
16 
(7) Exemption offorest plantation from payment of real property; 
17 
(8) No termination of contract or agreement except for cause or for reason of public 
18 
interest and only after due process; and 
19 
(9) The agreement holder has the right to transfer, contract, sell or convey his rights to 
20 
any qualified person following the guidelines to be issued by the Secretary. 
21 
The Secretary may provide or recommend to the President or to Congress other 
22 
incentives in addition (0 those granted in this Act and in existing laws in order to promote 
23 
reforestation and the establishment of forest plantations. 
24 
SEC. 25. Voluntary Offer to Reforest. - Private landowners, whether natural or juridical 
25 
persons, may participate in reforestation and forest plantation development or similar 
26 
programs of the Department, with the landowner contributing his land and the Department 


25 
providing funds in accordance with Section 55 to reforest the area on a co-production 
2 
agreement: Provided, That the property shall be exclusively devoted to the planting of forest 
3 
species for at least one (1) rotation, which undertaking shall be annotated at the back of the 
4 
title ofthe property. 
5 
CHAPTER VII 
6 
URBAN FORESTRY/COMMUNAL FOREST 
7 
SEC. 26. Establishment of City or Municipal Parks and/or Communal Forest. - Every 
8 
city or municipality shall establish a city or municipal park or communal forest and shall 
9 
include in its annual budget the necessary funds for its establishment and maintenance. Upon 
10 
request by a city or municipality concerned, the Department shall set aside an appropriate area 
11 
of the public forestlands as city or municipal park and/or communal forest and shall provide 
12 
technical assistance to the local government concerned in the development of the park or 
13 
communal forest. 
14 
SEC. 27. Establishment of Tree Parks in Subdivision and Tree Planting on Roadsides.-
15 
Every subdivision project to be developed after the passage of this Act shall include the 
16 
establishment qf a tree park of not less than fifty percent (50%) of the required total open 
17 
spaces as provided in Section 2 of Pre 'Side ntia I Decree No. 953, requiring the planting oftrees 
18 
in certain places. The guidelines for the establishment of tree parks within a subdivision shall 
19 
be prepared jointly by the subdivision owner concerned, the Housing and Land Use 
20 
Regulatory Board (HLURB) and the Department. The subdivision owner shall provide the 
21 
funds for this purpose. For every major public road or irrigation construction project, the 
22 
Department of Public Works and Highways (DPWH) shall include the planting and 
23 
maintenance of trees along the road/highway or irrigation canals as landscaped rest areas 
24 
every twenty-five (25) kilometers thereof and shall provide adequate funds for this purpose. 
25 
Each city or municipality shall also allocate adequate funds for the planting, care and 


26 
maintenance of trees or perennial shrubs in "greenbelts" or "green spaces" such as road/street 
2 
sides, center islands, etc. 
3 
CHAPTER VIII 
4 
FOREST PROTECTION 
5 
SEC. 28. Commercial Logging Ban. - There shall be a pennanent ban on commercial 
6 
logging activities in all protection forestlands defined, categorized and subclassified in 
7 
Section Sea). No license, permit or agreement to cut any timber within a protection forestland 
8 
shall be issued. 
9 
Portions of the production forestlands identified by the Department for protection 
10 
purposes shall be excluded from any form of logging operations and the holder of the 
11 
agreement or license shall establish a buffer zone and delineate their boundaries with the 
12 
production forestlands, marking the same with concrete monuments, road or infrastructure, or 
13 
any other visible, permanent and practicable signs. 
14 
To ensure the conservation and sustainable use of forest resources, holders of timber 
15 
licenses, leases and permits shall submit to the Department an Integrated Operations Plan 
16 
(lOP) containing strict environmental guidelines such as ECC compliance. 
All forest 
17 
development activities such as logging, reforestation, timber stand improvement, forest 
18 
protection and delivery of community service within an area covered by timber concessions 
19 
shall be consolidated under the lOP, which shall be prepared by or under the supervision of 
20 
an accredited private registered forester whose signature and dry seal shall appear in the plan 
21 
and the supporting documents submitted for the purpose. 
22 
Upon its expiration or termination for cause, no extension shall be made on any TLA 
23 
and the area covered by the agreement shall be converted into any mode pursuant to Section 
24 
40, including degraded areas that may be subject of a reforestation or tree plantation project. 
25 
SEC. 29.Assistance of Law Enforcement Agencies. - The Department may call upon 
26 
law enforcement agencies and instrumentalities of the government such as the Philippine 


27 
National Police (PNP), the Armed Forces of the Philippines (AFP) and the National Bureau 
2 
ofInvestigation (NBJ) for the enforcement of the logging ban in all protection forestlands and 
3 
for the protection and conservation of forests. 
4 
The Secretary of Justice shall designate in every city and province a special prosecutor 
5 
who shall immediately file charges against forest violators to ensure their speedy prosecution. 
6 
SEC. 30. Multi-sectoral Forest Pratectian Cauncil. - There shall be created a multi-
7 
sectoral forest protection council in every province, city and municipality which shall be 
8 
responsible for law enforcement, prevention of forest fires, integrated pest management and 
9 
protection against forest invasive species. The council shall be composed of representatives 
10 
from, but not limited to, the Department, concerned LGU, NGOs, people's organizations, 
II 
church and local academic institutions. 
12 
SEC. 31. Role of LGUs and Local Residents. - It shall be incumbent upon LGUs 
13 
concerned to render assistance in protecting and conserving forestlands within their respective 
14 
territorial jurisdiction. Qualified local residents may be deputized by the Department to assist 
15 
in the drive against illegal logging, kaingin-making and forestland occupation. 
These 
16 
deputized residents shall likewise be authorized to arrest forest violators within their 
17 
communities, subject to existing laws and regulations on arrest and detention. 
18 
SEC. 32. Prevention 'Of Farest Fires and Contral 'Of Forest Pests and Diseases. - In 
19 
collaboration with concerned LGUs, the Department shall formulate and implement a forest 
20 
fire management and control program. The Department shall likewise formulate and 
21 
implement a national integrated forest pest and disease management program including 
22 
quarantine procedures for imported seeds, forest plants and plant products as well as wildlife 
23 
to prevent or control forest or wildlife pests and diseases. 
24 
SEC.33.Infarmatian and Rewards System. -
The Department shall establish an 
25 
information and rewards system as part of the community's participation in the protection of 
26 
forest resources. 


28 
CHAPTER IX 
2 
FORESTRY RESEARCH, EDUCATION, TRAINING AND EXTENSION 
3 
SEC. 34. Research and Technology Development Transfer. - Research and technology 
4 
development transfer shall be strengthened to support sustainable management of forest 
5 
resources. 
The Department, the Department of Science and Technology (DOST), the 
6 
Commission on Higher Education (CHED) and the colleges of forestry of state universities 
7 
shall, within one (I) year from the passage of this Act, prepare a comprehensive national 
8 
forestry and environmental research and technology development and transfer program in 
9 
furtherance of sustainable forest management which shall be implemented, monitored and 
10 
reviewed in accordance with existing research management systems. Adequate and 
II 
sustainable funds to implement a research and technology development and transfer program 
12 
shall be provided by each of the aforementioned agencies and institutions under the General 
13 
Appropriations Act. 
14 
SEC. 35. Public Information, Education and Advocacy Campaign. - With the support 
15 
from LGUs, NGOs, media and other organizations, the Department, the Philippine 
16 
Information Agency (PIA), the Department of Education (DepEd), the CHED, State-owned 
17 
and private universities and colleges shall formulate and implement a nationwide program for 
18 
sustained public information and advocacy campaign for forest and natural resources 
19 
conservation and sustainable forest development and management. The DepEd shall include 
20 
subjects on forest and natural resources in the curricula for elementary and high school 
21 
education. The CHED shall likewise include ecology and environment courses in the general 
22 
education curricula. The Department shall undertake a systematic campaign to promote 
23 
community ecological awareness, including the preparation of informational and educational 
24 
materials therefore. 
25 
SEC. 36. Formal Forestry Education. -
The CHED, in collaboration with the 
26 
Department, the Board of Examiners for Foresters of the Professional Regulation 


29 
Commission (PRC) and the duly accredited national professional foresters organization shall 
2 
actively pursue the rationalization of formal forestry education and the establishment of 
3 
centers of excellence in forestry and environmental education to ensure high quality 
4 
manpower output to meet the needs of the forestry sector. 
5 
SEC. 37. Continuing Education on Forestry. - A non-formal program of continuing 
6 
education shall be established to maintain the growth of the forestry profession. The PRe 
7 
Board of Examiners for Foresters and the Civil Service Commission (CSC) shall provide the 
8 
guidelines for a program in continuing education in forestry. In cooperation with academic 
9 
institutions, the Department shall develop the infrastructures to institutionalize non-formal 
10 
continuing education for the forestry sector. 
II 
SEC. 38. Training Centers. - In coordination with the TESDA, the DepEd, the CHED 
12 
and state universities and colleges (SUCs), the Department shall establish and institutionalize 
13 
a network of training centers in strategic parts of the country to provide regular and up-to-date 
14 
training on the various aspects of sustainable forest management, development and utilization 
15 
to forest officers, LOUs, NODs, local communities and IPs. Furthermore, the Department 
16 
shall ensure that personnel appointed to critical and sensitive positions undergo training to 
17 
prepare them to discharge their duties and responsibilities professionally, efficiently and 
18 
effectively. 
19 
SEC. 39. Forestry Development Center. - The Forestry Development Center (FDC) 
20 
based in the College of Forestry and Natural Resources, University of the Philippines at Los 
21 
Bafios shall continue to serve as the primary policy research and development center for 
22 
forestry and natural resources management. The FDC shall perform its functions in close 
23 
coordination with the Department and other policy research institutions in the country. It 
24 
shall assist the Department in the formulation, review and evaluation of proposed and 
25 
existing policies on forestry and natural resources management. To enable the Center to carry 
26 
out its mandated functions, the Center shall have a share of the Sustainable Forestry 


30 
Development Fund pursuant to Section 55 in the conduct of its mandated functions of policy 
2 
research. 
3 
CHAPTER X 
4 
DISPOSITION AND UTILIZATION OF FOREST RESOURCES 
5 
SEC. 40. Modes of Forest Management Agreement. - The development, utilization and 
6 
management of forestlands and/or forest resources shall be undertaken under the full control 
7 
and supervision of the State through the Department. The State may directly undertake such 
8 
activities or it may enter into co-production, joint venture or production sharing agreement 
9 
with qualified Filipino citizens or corporations or associations, subject to relevant laws, rules 
10 
and regulations: Provided, That interested local communities and IPs through their organized 
11 
and duly recognized associations shall be given priority in the grant of appropriate tenurial 
12 
instruments implementing the said agreements. Such tenurial instruments and/or agreements 
13 
shall have a duration of twenty-five (25) years, renewable for another twenty-five (25) years, 
14 
under such terms and conditions as may be provided by the Secretary: Provided, further, That 
15 
such tenurial instruments and/or agreements may not be terminated except for cause or if 
16 
public interest so requires. 
17 
Current valid and subsisting licenses, contracts or agreements granted by the 
18 
government for the development, management and utilization of forest resources shall be 
19 
allowed to continue under the same terms and conditions until their expiry, or prior to their 
20 
expiry shall be allowed to be converted into any mode authorized in this Act under the 
21 
guidelines promulgated by the Secretary: Provided, That no such conversion shall be allowed 
22 
in protection forestlands as defined in Section 5, on subclassification offorestlands. 
23 
The Department is hereby authorized to formulate rules and regulations covering the 
24 
relevant terms and conditions thereof including the determination and collection of the 
25 
government share, subject to the approval of Congress. 


31 
For watersheds and other areas where existing facilities for basic services such as water 
2 
and power are located, the Depatiment may enter into a forest management agreement with 
3 
the service contractor in the area. Such agreement shall have a duration of twenty-five (25) 
4 
years, renewable for another twenty-five (25) years, under such terms and conditions agreed 
5 
upon by both parties: Provided, That such agreement may not be terminated except for cause 
6 
or if public interest so requires or upon mutual agreement by the parties. 
7 
SEC. 41. Transfer of Rights Arising Out of Agreements, Contracts or Similar 
8 
Instruments. - The transfer of rights arising out of any forest management agreement, contract 
9 
or similar instrument with the government may be authorized by the Department: Provided, 
\0 
That the agreement, contract or similar instrument has been in existence and active for at least 
II 
three (3) consecutive years fTOm its issuance: Provided, further, That the transferor has 
12 
faithfully complied with the terms and conditions of the said agreement, contract or similar 
13 
instrument; the transferee has all the qualifications and none of the disqualifications to hold 
14 
the same; and the transferee shall assume the obligations of the transferor. Failure to comply 
15 
with these conditions shall be sufficient cause for the cancellation of the agreement, contract 
16 
or similar instrument. 
17 
SEC. 42. Non-Timber Forest Products. - Rattan, bamboos, vines, herbs, exudates and 
18 
other non-wood forest products are integral parts of the forest ecosystem. The establishment 
19 
of plantations of non-timber producing species shall be encouraged and supported. The 
20 
development, management and utilization of non-timber forest products shall be allowed in 
21 
accordance with the guidelines to be promulgated by the Department. However, in granting 
22 
permits to harvest or utilize non-timber forest products in their natural or original state from 
23 
production forestlands, priority shall be given to forest resident families, local communities 
24 
and IPs living nearest the subject forestlands. 
25 
SEC. 43. Silvicultural and Harvesting System. - The Department shall formulate the 
26 
appropriate silvicultural and harvesting system and all measures shall be taken to achieve an 


32 
approximate balance between growth and harvest or use of forest products in .production 
2 
forestland shall be promoted and practiced. 
3 
SEC. 44. Grazing. - The Department shall identify and delimit areas in the production 
4 
forestland suitable for grazing purposes: Provided, That no forestland fifty percent (50%) in 
5 
slope or over may be utilized for grazing purposes: Provided, further, That existing pasture 
6 
lease agreements or forestland grazing lease agreements shall be allowed to continue under 
7 
the same terms and cqnditions until their expiry: Provided, finally, That abandoned or idle, 
8 
expired or cancelled grazing or pasture lands shall be subject to land-use capability 
9 
assessment to determine their best use or combination of uses. No new grazing or pasture 
10 
permit, lease or contract shall be issued, nor existing ones allowed to continue unless covered 
11 
by existing rules and regulations governing the Philippine Ers System. 
12 
SEC. 45. Mining and Power Generation Operations in Forestlands. - Forest resources 
13 
inside mineral lands are under the Department's jurisdiction, and their management and 
14 
utilization are subject to the provisions of this Act. Power generation and small-scale mining 
15 
operations in forestlands may be allowed subject to existing rules and regulations governing 
16 
the Philippine EIS System. 
17 
SEC. 46. Roads and Other Infrastructure. - Roads and other infrastructure including the 
18 
development of mineral reservations and energy resources inside forestlands shall be 
19 
constructed with the least impairment to the resource values found in such forestlands. 
20 
Government agencies and their contractors undertaking the construction of roads, bridges, 
21 
communication and other infrastructure facilities and installations inside forestlands shall 
22 
seek prior authority from the Department and shall comply with the provisions of this Act and 
23 
existing rules and regulations governing the Philippine EIS System. 
24 
CHAPTER XI 
25 
FOREST-BASED INDUSTRIES 


33 
SEC. 47. Establishment and Operations of Forest-based Industries. - To meet the 
2 
demands for forest-based goods and services of a growing population, the State, through the 
3 
Department, shall promote and rationalize the establishment, operations and development of 
4 
forest-based industries. 
5 
SEC. 48.Incentives for Forest-based Industries. - To enable 
forest-based 
6 
industries to be more efficient, competitive and economically viable, the following incentives 
7 
are hereby granted in addition to those already provided by existing laws: 
8 
(a) All processing plants or mills shall be assured of their supply of raw materials, 
9 
preferably but not exclusively from local sources; 
10 
(b) All processing plants or mills shall be granted operating permits for five (5) years, 
11 
renewable every five (5) years for the same period: Provided, That permits for processing 
12 
plants owned or operated by holders of forest management agreements or contracts shall be 
13 
coterminus with said agreements or contracts; and 
14 
(c) The Department shall promote and strengthen the linkages among corporate, family-
15 
based and community-based industries. 
16 
The Department may provide on its own, or propose to the President of the Philippines 
17 
or to Congress, other incentives to encourage the establishment and development of 
18 
'corporate, family and community forest-based industries. Agreements or licenses over forest 
19 
areas granted to wood-based plants shall be converted into any mode authorized in this Act. 
20 
Expansion in capacity of wood-based plants shall be encouraged and the same shall be given 
21 
priority access to production forestlands and other areas available for development as source 
22 
ofraw materials. 
23 
SEC. 49. Export and Sale of Locally Produced Wood Products. - Logs derived from 
24 
natural grown trees of whatever species cut, gathered or removed from the local natural forest 
25 
and raw or rough lumber manufactured from such logs shaIl not be exported except finished 


34 
and semi-finished lumber products, wood manufactures, wood panels and other finished 
2 
wood products from such logs, subject to such guidelines as the Secretary may promulgate. 
3 
No person shall sell or offer for sale any log, lumber, veneer, plywood or other 
4 
manufactured wood products in the international or domestic market without complying with 
5 
the grading rules established or to be established by the government. Failure to adhere to the 
6 
established grading rules and standards or any act of falsification on the volume of logs, 
7 
lumber, veneer, plywood or other wood products sold in the international or domestic market 
8 
shall be sufficient cause for the cancellation of export license, wood processing permit or 
9 
other license or permit authorizing the manufacture or sale of such products. 
10 
SEC. 50.lmportation and Sale of Logs and Other Forest and Wood Products. - Logs, 
11 
lumber and other forest and wood-based products may be imported to the country subject to 
12 
the registration requirements of the Department, payment of tariff and duties imposed under 
13 
the Tariff and Customs Code, and quarantine regulations. Any product manufactured or 
14 
remanufactured out of the imported forest and wood materials may be sold in the domestic or 
15 
international market subject to compliance with the grading rules and standards. 
16 
CHAPTER XII 
17 
FOREST CHARGES, FEES AND GOVERNMENT SHARES 
18 
SEC. 51. Fees and Government Shares for the Utilization, Exploitation, Occupation, 
19 
Possession and Activities Within Forestlands. - The Department shall prescribe .appropriate 
20 
fees and government shares for the different kinds of utilization, exploitation, occupation, 
21 
possession or activities within forestlands: Provided, That payment of or collection of such 
22 
fees and government shares shall be waived for parties or industries mandated by law to 
23 
manage, conserve, develop and protect forestlands and forest resources, except administrative 
24 
fees for the filing and processing of applications for the issuance and renewal of licenses, 
25 
permits and agreements: Provided, jitrther, That watershed administrators andlor service 
26 
contractors that have forest management agreements with the Department as provided for 


35 
under Section 40 of this Act shall also be entitled to the waiver of fees, except administrative 
2 
fees. 
3 
The Department shall recommend to Congress appropriate and equitable fees for the use 
4 
of water and forest for power generation, irrigation, domestic and industrial, and for carbon 
5 
sequestration and biodiversity benefits, respectively, by parties/industries concerned. 
6 
SEC. 52. Forest Charges. - There shall be collected a forest charge per cubic meter 
7 
based on the actual freight on board (FOB) market price based on species and diameter class 
8 
by the Department on the following: 
9 
(a) Timber - twenty-five percent (25%); 
10 
(b) Pulpwood and matchwood - ten percent (10%); 
11 
(c) Firewood, branches and other recoverable wood wastes of timber such as timber 
12 
ends, tops and stumps when used as raw materials for the manufacture of finished products -
13 
ten percent (10%); and 
14 
(d) Non-timber forest products - ten percent (10%). 
15 
These forest charges shall be applied (0 naturally growing timber and non-timber forest 
16 
products gathered within forestlands, alienable and disposable lands, and private lands. 
17 
For the above purpose, the measurement and the actual FOB market price of forest 
18 
products shall be justly determined by the Department, which shall likewise provide for the 
19 
time, manner and place of payment of such charges. 
20 
SEC. 53. Fees for Administrative Services Rendered by the Department. - Fees shall be 
21 
collected for various services rendered by personnel of the Department in connection with 
22 
their duties and responsibilities as may be requested by interested parties including, but not 
23 
limited to, surveying, mapping and other similar service activities: Provided, That 
24 
administrative fees shall be waived for services rendered to local communities or IPs in the 
25 
preparation of their management plans. 
26 
CHAPTER XIII 


36 
APPROPRIATIONS AND FINANCIAL SUPPORT 
2 
SEC. 54. Appropriations. - The Secretary of the Department of Environment and 
3 
Natural Resources shall include in the Department's program and issue such rules and 
4 
regulations for the implementation of the provisions of this Act, the initial funding of which 
5 
shall be charged against the current year's appropriations of the Department and thereafter 
6 
included in the annual General Appropriations Act. For LGUs, the funding requirements 
7 
shall be taken from their Internal Revenue Allotment and other LGU income. 
8 
SEC. 55. Sustainable Forestry Development Fund -
A Sustainable Forestry 
9 
Development Fund (SFDF) to be administered by the Department as a special account in the 
10 
National Treasury is hereby established to provide sustainable funds for forest protection, 
11 
reforestation and forest development and management, including the rehabilitation and 
12 
preservation of watershed areas, CBFM program, information and educational campaigns as 
13 
well as scholarship programs and policy research. At least thirty percent (30%) of the forest 
14 
charges and government share in all products removed from the forestlands, rentals, proceeds 
15 
from sales of confiscated forest products including conveyances, fines and penalties, and 
16 
administrative fees collected shall be set aside for the buildup of the SFDF. The fund may be 
17 
augmented by grants, donations, endowment from various sources, domestic or foreign, for 
18 
purposes related to their functions and other innovative funding mechanisms such as 
19 
securitization offorest assets, among others. 
20 
Disbursements from the fund shall be subject to the usual accounting and budgeting 
21 
rules and regulations: Provided, That no amount shall be disbursed to cover the operating 
22 
expenses of the Department and other concerned agencies. 
23 
A trust fund committee, composed of the Secretary as Chair and the Secretary of the 
24 
Department of Budget and Management, the DILG Secretary and the National Treasurer or 
25 
their representatives shall sit as members and manage the SFDF, with the FMB as secretariat. 
26 
CHAPTER XIV 


37 
CRIMINAL OFFENSES AND PENALTIES 
2 
SEC. 56. Harvesting. Gathering and/or Collecting Timber or Other Forest Products 
3 
Without Authority. - Any person who shall harvest, cut, gather, collect or remove timber or 
4 
other forest products from any forestland, or naturally grown timber inside alienable and 
5 
disposable public land except as provided in Section 9, without authority from the Secretary 
6 
or found to possess the same without pertinent required legal documents shall be punished by 
7 
imprisonment ranging from prision mayor minimum period to reclusion temporal minimum 
8 
period andlor a fine equivalent to ten (10) times the value of the said forest product: 
9 
Provided, That in the case of partnerships, associations or corporations, the president, 
10 
managing pattner and general manager shall be held liable and, if such officer is an alien, he 
11 
shall, in addition to the penalty, be deported without further proceedings on the part of the 
12 
Bureau of Immigration. Offenders who are public officials shall be deemed automatically 
13 
dismissed from office and permanently disqualified from holding any elective or appointive 
14 
position. 
15 
All timber or any forest products cut, gathered, collected, removed or possessed and all 
16 
the conveyances, machinery, equipment, implements, work animals and tools used in 
17 
connection with this violation shall be seized and confiscated in favor of the government. 
18 
SEC. 57. Illegal Cutting as an Act of Economic Sabotage. - Any of the acts enumerated 
19 
in the preceding section committed by an armed group or by any group, through organized 
20 
and systematic manner, for commercial purposes, shall be considered an act of economic 
21 
sabotage punishable by reclusion perpetua. 
22 
The commission of any of the prohibited acts by two (2) or more individuals with or 
23 
without the aid of any mechanical device shall constitute a prima facie evidence that the act is 
24 
organized and systematic. 


· 
, 
3& 
Any licensed timber concessionaire who shall buy logs from unlicensed loggers or 
2 
loggers operating without permits shall be considered in violation of this Act and, upon 
3 
conviction, shall also be punished with reclusion perpetua. 
4 
SEC. 58. Use of Illegally Cut Timber in Government Infrastructure Projects. -
5 
Contractors of government infrastructure projects are hereby required to obtain certification 
6 
from the Department that the logs or lumber to be used were obtained from legitimate 
7 
sources. The use of illegally cut naturally grown timber in government infrastructure projects 
8 
shall be sufficient cause for the imposition of penalties provided in Section 56, on harvesting 
9 
of forest products without authority, and Section 57, on illegal cutting as an act of economic 
10 
sabotage, including the withholding ofthe payment to the contractor. 
II 
SEC. 59. Damage to Residual Trees. - To ensure the sustainability of the natural forests, 
12 
adequate number of residual trees shall be marked, to be retained as part of the managed 
13 
forests and as the future timber crop, before any harvesting operation shall commence. Any 
14 
marked residual tree that is damaged during such operation is subject to a fine equivalent to 
15 
four (4) times the regular forest charges. 
16 
SEC. 60. Grazing Livestock on Forestlands Without a Permit. - Any person found to 
17 
have caused the grazing of livestock in forestlands and grazing lands without an authority 
18 
under a lease or permit to graze, upon conviction, shall be penalized with imprisonment of 
19 
not less than two (2) years nor more than four (4) years and a fine equivalent to ten (10) times 
20 
the regular shares due in addition to confiscation of the livestock and all improvements 
21 
introduced in the area in favor of the government: Provided, That in case the offender is a 
22 
corporation, partnership or association, the officer or director thereof who directly caused or 
23 
ordered such shall be liable. In case the offender is a public officer or employee, he shall, in 
24 
addition to the above penalties, be deemed automatically dismissed from office and 
25 
permanently disqualified from holding any elective or appointive position in the government 
26 
service. 


39 
SEC. 61. Unlawfid Occupation or Destruction of Forestlands. -
Any person who, 
2 
without authority from the Secretary, enters and occupies or possesses, or engages in kaingin 
3 
or slash-and-burn farming and related activities for his private use Or for others, any 
4 
forestland or grazing land, or in any manner destroys such forestland or part thereof, or causes 
5 
any damage to the timber stands and other forest products or assists, aids or abets another 
6 
person to do so, or sets a fire or negligently permits a.fire to be set, or refuses lawful orders to 
7 
vacate the area when ordered to do so shall, upon conviction, be punished with penalties in 
8 
the amount of not less than One hundred thousand pesos (PIOO,OOO.OO) nor more than Five 
9 
hundred thousand pesos (PSOO,OOO.OO) and imprisonment of not less than six (6) years and 
10 
one (I) day nor more than twelve (12) years for each offense: Provided, That in the case of an 
11 
offender found guilty of making kaingin or slash-and-burn farming, the penalty shall be 
12 
imprisonment of not less than ten (10) years nor more than twelve (12) years and a fine 
13 
equivalent to ten (10) times the regular forest charges due on the forest products destroyed 
14 
without prejudice to payment of the full cost of rehabilitation of the occupied areas as 
15 
determined by the Department: Provided, further, That the maximum of the penalty 
16 
prescribed shall be imposed upon the offender who repeats the same offense, and double the 
17 
maximum penalty upon the offender who commits the same offense for the third (3rd) time or 
18 
more. 
19 
In all cases, the court shall further order the eviction of the offender from the area 
20 
occupied and the forfeiture to the government of all improvements introduced, including all 
21 
vehicles, domestic animals and equipment of any kind used in the commission of the offense. 
22 
If not suitable for use by the Department, said improvements, vehicles, domestic animals and 
23 
equipment shall be sold at public auction, the proceeds from which shall accrue to the SFDF. 
24 
If the offender is an alien, he shall be deported after serving his sentence and payment of 
25 
fines, without any further proceedings. An offender who is a government officer or employee 
26 
shall, in addition to the above penalties, be deemed automatically dismissed from office and 


· , 
40 
permanently disqualified from holding any elective or appointive position in the government 
2 
service. 
3 
SEC. 62.lllegal Conversion of City or Municipal Parks, Communal Forests and Tree 
4 
Parks in Subdivisions. - Any person found to have converted or caused the conversion of a 
5 
city or municipal park or communal forest, or tree parks within subdivisions established 
6 
pursuant to Section 26 and Section 27 of this Act, and Section 2 of Presidential Decree No. 
7 
953, requiring the planting of trees in certain places, into other uses including the construction 
8 
of permanent buildings, or in any manner destroys or causes any damage to the timber stands 
9 
and other forest products or assists, aids or abets another person to do so, or sets a fire or 
10 
negligently permits a fire to be set, upon conviction, shall be penalized by imprisonment of 
II 
six (6) years and one (I) day to twelve (12) years or a fine of not less than One hundred 
12 
thousand pesos (PIOO,OOO.OO) nor more than Five hundred thousand pesos (P500,OOO.OO), or 
13 
both fine and imprisonment, at the discretion of the court. The offender shall likewise be 
14 
imposed a fine equivalent to ten (10) times the commercial value of the forest products 
15 
destroyed without prejudice to payment of the full cost of rehabilitation of the areas as 
16 
determined by the Department: Provided, further, That the maximum of the penalty 
17 
prescribed shall be imposed upon the offender who repeats the same offense, and double the 
18 
maximum penalty upon the offender who commits the same offense for the third (3'd) time or 
19 
more. The court shall further order the forfeiture to the government of all improvements, 
20 
including all vehicles, domestic animals and equipment of any kind used in the commission 
21 
of the offense. 
If not suitable for use by the Department, said improvements, vehicles, 
22 
domestic animals and equipment shall be sold at a public auction, the proceeds from which 
23 
shall accrue to the SFDF. 
24 
An offender who is a government officer or employee, in addition to the above 
25 
penalties, upon conviction, shall be deemed automatically dismissed from office and 


41 
permanently disqualified from holding any elective or appointive position in the government 
2 
service. 
3 
SEC. 63. Misdeclaration or Falsification of Reports on Forest Resource Inventory, 
4 
Scaling and Survey by a Government Official or Employee. - Any public officer or employee 
5 
who knowingly misdeclares or falsifies reports pertaining to forest resource inventory, 
6 
scaling, survey and other similar activity which are contrary to the criteria and standards 
7 
established in the rules and regulations promulgated by the Secretary therefore, after an 
8 
appropriate administrative proceeding, shall be dismissed from the service with prejudice to 
9 
reemployment. Upon conviction by a court of competent jurisdiction, the same public officer 
10 
or employee shall further suffer an imprisonment of not less than eight (8) years nor more 
11 
than twelve (12) years and a fine of not less than One hundred thousand pesos (PIOO,OOO.OO) 
12 
nor more than Five hundred thousand pesos (P500,OOO.OO). The inventory, survey, scale, 
13 
classification and similar reports referred in this section shall be rendered null and void. 
14 
SEC. 64. Unlawful Operation «f Wood Processing Plants and Downstream Forest-
15 
based Industries. - Any person operating a wood processing plant or downstream forest-
16 
based industry without authority from the Secretary shall be punished by, upon conviction by 
17 
a court of competent jurisdiction, imprisonment of not less than eight (8) years nor more than 
18 
twelve (12) years and a fine of not less than Five hundred thousand pesos (P500,OOO.OO) and 
19 
confiscation of the wood processing plant and complementary equipment in favor of the 
20 
government. The Department shall promulgate the necessary guidelines, subject to the 
21 
provision of this Act, that will define the terms and conditions, including the responsibility 
22 
for a person who will operate and operating a wood processing plant andlor other downstream 
23 
forest-based industries. 
24 
SEC. 65. Prohibition on the Issuance of Tax Declaration on Forestlands. - Any tax 
25 
declaration issued over forestlands shall be considered null and void. 


42 
Any local government official 01' employee who issues a tax declaration for any purpose 
2 
on any part of forestlands, upon conviction, shal1 be penalized with imprisonment for a period 
3 
of not less than four (4) years nor more than eight (8) years and a fine of not less than One 
4 
hundred thousand pesos (PlOO,OOO.OO) nor more than Five hundred thousand pesos 
5 
(P500,OOO.OO) and the perpetual disqualification from holding an elective or appointive 
6 
office. 
7 
SEC. 66. Unlawful Possession of Implements and Devices Used by Forest Officers. -
8 
Any person found possessing or using implements and devices used by forest officers shall be 
9 
penalized with imprisonment of not less than eight (8) years nor more than twelve (12) years 
10 
and a fine of not less than One hundred thousand pesos (PIOO,OOO.OO) nor more than Five 
11 
hundred thousand pesos (P500,000.00) in addition to the confiscation of such implements and 
12 
devices and the automatic cancellation of any agreement, license, lease or permit. 
13 
Any forest officer who willingly allowed unauthorized person(s) to use these 
14 
implements and devices under his/her care shal1 be penalized with imprisonment of not less 
15 
than six (6) years and one (1) day to not more than twelve (12) years and a fine of not less 
16 
than One hundred thousand pesos (PlOO,OOO.OO) nor more than Five hundred thousand pesos 
17 
(P500,OOO.OO). In addition, the convicted forest officer shal1 be dismissed from the service 
18 
with prejudice to reinstatement and with perpetual disqualification from holding an elective 
19 
or appointive position. 
20 
SEC. 67. Unauthorized Introduction of Logging Tools and Equipment Inside 
21 
Forestlands. -It shall be unlawful for any person or entity to possess, bring or introduce any 
22 
logging tools or equipment inside forestlands without prior authority from the Secretary or his 
23 
duly authorized representative. Any person found guilty of illegal possession of said logging 
24 
tools or equipment shal1 be liable to imprisonment of six (6) years and one (1) day to twelve 
25 
(12) years or a fine of not less than One hundred thousand pesos (PI 00,000.00) nor more than 
26 
Five hundred thousand pesos (P500,OOO.OO), or both imprisonment and fine, at the discretion 


43 
of the court and the confiscation of said logging tools and equipment in favor of the 
2 
government.. 
3 
SEC. 68. Nonpayment and Non-remittance of Forest Charges. - Any person who fails 
4 
to pay the amount due and payable as forest charges to the government shall not be allowed to 
5 
transport, convey, sell nor use the timber or forest product. Moreover, failure to pay within 
6 
thirty (30) days upon assessment of forest charges shall be a ground for confiscation of the 
7 
said timber or forest product in favor of the government. Any person who fails or refuses to 
8 
remit to the proper authorities said forest charges collectible pursuant to the provisions ofthis 
9 
Act or the National Internal Revenue Code, as amended, or who delays, obstructs or prevents 
10 
the same or who orders, causes or effects the transfer or diversion of the funds for purposes 
11 
other than those specified in said Acts shall, upon conviction, be imprisoned for not less than 
12 
six (6) years nor more than twelve (12) years and fined from One hundred thousand pesos 
13 
(PIOO,OOO.OO) to Five hundred thousand pesos (P500,OOO.OO) in addition to the payment of 
14 
the assessed forest charges. If the offender is a corporation, partnership or association, the 
15 
officers and directors thereof shall be liable. 
16 
SEC. 69.lnstitution of Criminal Action by Forest Officers. - Any forest officer shall 
17 
arrest even without warrant any person who has committed or is about to commit, or is 
18 
committing in his presence any of the offenses defined in this chapter. The tools, animals, 
19 
equipment and conveyances used in committing the offense and the forest products cut, 
20 
gathered, taken or possessed by the offender in the process of committing the offense shall 
21 
also be seized and confiscated in favor of the government. The arresting forest officer shall 
22 
thereafter deliver within six (6) hours from the time of arrest or seizure both the offender and 
23 
the confiscated forest products, conveyances, tools and equipment, or the documents 
24 
pertaining to the same, and file the proper complaint with the appropriate official designated 
25 
by law to conduct preliminary investigation and file information in court. If the arrest and 
26 
seizure are made in the forest far from authorities designated by law to conduct preliminary 


• • 
44 
investigations, the delivery to and filing ofthe complaint with the latter shall be done within a 
2 
reasonable time sufficient for ordinary travel from the place of arrest to the place of delivery. 
3 
The seized forest products, materials, conveyances, tools and equipment shall be immediately 
4 
disposed of in accordance with the regulations promulgated by the Secretary. 
5 
The Secretary may deputize any agency, barangay or barrio official, or any qualified 
6 
person to protect the forest and exercise the powers or authority provided for in the preceding 
7 
paragraph. Reports and complaints regarding the commission of any of the offenses defined 
8 
in this chapter not committed in the presence of any forest officer or any of the deputized 
9 
officers shall immediately be reported to the forest officer assigned in the area where the 
10 
offense was allegedly committed. Thereupon, the investigating officer shall receive the 
11 
evidences supporting the report or complaint and submit the same with the appropriate 
12 
official authorized by law to conduct a preliminary investigation of criminal cases and file the 
13 
information in court. 
14 
SEC. 70. Liability of the Custodian of Confiscated Forest Products. - Any public 
15 
officer who fails to produce the timber or forest products, including tools, conveyances, 
16 
equipment and devices in his custody pursuant to a seizure or confiscation made thereon, or 
17 
who shall appropriate, take, misappropriate, or shall permit another person to take such 
18 
timber or forest products wholly or partially, shall suffer the penalty provided for 
19 
malversation of public funds or property under the Revised Penal Code. In addition, the said 
20 
public officer shall be dismissed from the service with prejudice to reinstatement and with 
21 
perpetual disqualification from holding any elective or appointive office. 
22 
CHAPTER XV 
23 
ADMINISTRATIVE PROVISIONS 
24 
SEC. 71. Strengthening of the Forest Management Sector. - In order to effectively 
25 
implement the provisions of this Act, the FMB shall be transformed into a line bureau with 
26 
functions clearly defined and enumerated under the implementing rules and regulations of this 


, , 
45 
Act. To ensure that the scientific practice offorestry in the country is properly implemented, 
2 
only registered foresters shall be appointed to the positions of director and assistant director 
3 
and regional directors of the FMB, as well as to all other positions where the services of 
4 
professional foresters are required in accordance with existing laws and the relevant rules and 
5 
regulations issued by (he CSC and the PRe. 
6 
SEC. 72. Development of Mechanisms for Private Sector Participation in Forest 
7 
Management. - The Secretary is hereby authorized to adopt appropriate mechanisms to 
8 
strengthen private sector participation in forest management, whieh shall include the 
9 
accreditation of a national organization of private investors including for profit, NGOs and 
10 
people's organizations. The accredited national organization shall'assist the Department in 
11 
the formulation and review of relevant policies to ensure the contribution of the forestry 
12 
sector to national economy and sustainable development. It shall also assist the Department 
13 
in evaluating applications for forest management agreements; monitoring the performance of 
14 
holders of commercial tenurial instruments; ensuring the local supply of timber and wood 
15 
products; providing producers with access to local and international markets; and ensuring the 
16 
conservation and preservation of protection forestlands and protected areas under the NIP AS 
17 
Act. 
18 
SEe. 73.Authority of the Secretary on the Use of Forest Resources. - The utilization of 
19 
forest resources from 
natural forests 
found in forestlands, government-established 
20 
reservations and all other lands including ancestral domains or under the management of 
21 
other government agencies shall be prohibited unless covered by permits issued by the 
22 
Department, in consultation with other concerned government agencies: Provided, That in the 
23 
case of ancestral lands and domains, the terms of the agreement with the concerned ICC shall 
24 
likewise govern. 
25 
SEC.74.Administrative Authority of the Secretary or his/her Duly Authorized 
26 
Representative to Order Confiscation. - In all cases of violations of this Act or other forest 


46 
laws, rules and regulations, the Secretary or his/her duly authorized representative may order 
2 
the confiscation of forest products illegally harvested, cut, gathered, removed or possessed or 
3 
abandoned, and all conveyances used either by land, water or air as well as all machinery, 
4 
equipment, implements and tools used in the commission of the offense and to dispose of the 
5 
same in accordance with pertinent laws, regulations or policies on the matter. 
6 
If the confiscated forest products are in danger of deteriorating, the Secretary may order 
7 
that the same be sold at public auction even before the termination of the judicial 
8 
proceedings, with the proceeds kept in trust to await the outcome of the judicial proceedings. 
9 
No court of the Philippines shall have jurisdiction to issue any Writ of Replevin, 
10 
restraining order or preliminary mandatory injunction in any case involving or growing out of 
11 
any action by the Secretary or his/her duly authorized representative in the exercise of the 
12 
foregoing administrative authority. 
\3 
SEC. 75.Administrative Authority of the Secretary to Impose Fines. - In all cases of 
14 
violations of this Act and other forest laws, rules and regulations where fine is the principal 
15 
penalty, the Secretary, after consultation with the forest-based industries affected, is hereby 
16 
authorized to impose administratively the penalty consisting of the amount and the schedules 
17 
of the fine which shall be offiCially published in a national newspaper of general circulation. 
18 
SEC. 76.Authority of Forest Officers. - When in the performance of their official 
19 
duties, forest officers or other government officials or employees, duly authorized by the 
20 
Secretary, shall have free entry into areas covered by a contract, agreement, license, lease or 
21 
permit. Forest officers are authorized to inspect and to open closed vans suspected to contain 
22 
illegally harvested, collected or transported forest products: Provided, That it is done in the 
23 
presence of the shipper or consignee or two (2) responsible public officials in the locality. 
24 
Forest officers are authorized to administer oath, take acknowledgment in official matters 
25 
connected with the functions of their office or take testimony in official investigations 


47 
conducted under the authority of this Act and the implementing rules and regulations issued 
2 
by the Secretary pursuant thereto. 
3 
SEC. 77. Visitorial Functions. - The Secretary or his/her duly authorized representative 
4 
shall, from time to time, investigate, inspect and examine records and other documents except 
5 
bank records related to the operation of any person granted the privilege, contract or 
6 
agreement to utilize forest resources to determine compliance with the terms and conditions 
7 
stipulated in the grant, contract or agreement, this Act and pertinent laws, rules and 
8 
regulations. 
9 
SEC. 78. Other Incentives. - Fifty percent (50%) of the value of confiscated materials 
10 
shall be used as incentives to informants and members of multi-sectoral forest protection 
II 
councils, including Department personnel. 
Additional incentives may be provided to 
12 
personnel of the Department, in addition to those provided under the Government Service 
13 
Insurance System (GSIS) or the Workmen's Compensation Law. They shall also be entitled 
14 
to free legal assistance should legal cases be filed against them in the performance of official 
15 
duties. 
16 
SEC. 79. Protection to Witnesses in Cases Involving Violation of Forestry Laws. -
17 
Witnesses tQ violations of this Act or other forestry laws and regulations, including the 
18 
immediate members of the family of said witnesses, shall be given protection, security and 
19 
benefit, subject to the provisions of Republic Act No. 6981, otherwise known as "The 
20 
Witness Protection, Security and Benefit Act" and its implementing rules and regulations. 
21 
SEC. 80. Rule-making Authority. - The Department shall promulgate the implementing 
22 
rules and regulations within one (1) year from the effectivity of this Act, in consultation with 
23 
the NCIP, the DILG, the Department of Finance, the leagues of provinces, cities and 
24 
municipalities, and other government agencies. 
25 
SEC. 81. Congressional OverSight Committee on the Sustainable Forest Management 
26 
Act. - There is hereby created a Congressional Oversight Committee composed of seven (7) 


48 
Members from the Senate Committee on Environment and Natural Resources and seven (7) 
2 
Members from the House of Representatives' Committee on Natural Resources. 
3 
The secretariat of the Ovcrsight Committee shall be drawn from the existing secretariat 
4 
personnel of the committees comprising the oversight and the funding shall be taken from the 
5 
appropriations of both the House of Representatives and the Senate. 
6 
SEC. 82. Transitory Provision. _. Upon the approval of this Act, the Department shall 
7 
evaluate thc conditions of all forestlands covered by existing tenurial instruments, 
8 
memoranda of agreements (MOAs) and other agreements and contracts which shall be 
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allowed to continue until their expiry unless terminated for cause. 
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CHAPTER XVI 
11 
FINAL PROVISIONS 
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SEC. 83.Separability Clause. -
Should any provision of this Act be declared 
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unconstitutional or invalid, the same shall not affect the validity or legality of the other 
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provisions. 
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SEC. 84. Repealing Clause. - Subsections (b), (d), (e), (t), (g) and (i) of Section 4 of 
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Act No. 3915; Republic Act No. 460; Presidential Decrees Numbered 705,1153, ISIS, 1559 
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and 1775; Letter of Instruction No. 818; Executive Orders Numbered 277 and 278, series of 
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1987; and Executive Order No. 725, series of 1981 are hereby repealed, and all laws, orders, 
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rules and regulations or any part thereof which are inconsistent herewith are likewise hereby 
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repealed or amended accordingly. 
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SEC. 85.EfJectivity. - This Act shall take effect thirty (30) days from the date of its 
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publication in the Official Gazette or in at least two (2) national newspapers of general 
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circulation. 
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Approved,