Chainsaw Act
Chainsaw Act
Chainsaw Act
Begun and held in Metro Manila, on Monday, the twenty-second day of July, two thousand two.
REPUBLIC ACT NO. 9175
November 7, 2002
AN ACT REGULATING THE OWNERSHIP, POSSESSION, SALE, IMPORTATION AND USE
OF CHAIN SAWS, PENALIZING VIOLATIONS THEREOF AND FOR OTHER PURPOSES
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress
assembled:
Section 1. Title. - This Act shall be known as the "Chain Saw Act of 2002".
Sec. 2. Declaration Policy. It is the policy of the State consistent with the Constitution, to
conserve, develop and protect the forest resources under sustainable management. Toward
this end, the State shall pursue an aggressive forest protection program geared towards
eliminating illegal logging and other forms of forest destruction which are being facilitated with
the use of chain saws. The State shall therefore regulate the ownership, possession, sale,
transfer, importation and/or use of chain saws to prevent them from being used in illegal
logging or unauthorized clearing of forests.
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(b) "Chain saw dealer" shall refer to a person, natural or juridical, engaged in the
manufacture, importation, distribution, purchase and/or sale of chain saws;
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(c) "Department" shall refer to the Department of Environment and Natural Resources; and
(d) "Secretary" shall refer to the Secretary of the Department of Environment and Natural
Resources.
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Sec. 4. Persons Authorized to Manufacturer, Sell and Import Chain Saws. - Chain saws shall
only be sold and/or imported by manufacturers, dealers and/or private owners who are duly
authorized by the Department.
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Sec. 5. Persons Authorized to Possess and Use a Chain Saw. - The Department is hereby
authorized to issue permits to possess and/or use a chain saw for the felling land/or cutting of
trees, timber and other forest or agro-forest products to any applicant who:
(a) has a subsisting timber license agreement, production sharing agreement, or similar
agreements, or a private land timber permit;
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(d) is a licensed wood processor and the chain saw shall be used for the cutting of timber that
has been legally sold to said applicant; or
(e) shall use the chain saw for a legal purpose.
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Agencies of the government that use chain saws in some aspects of their functions must
likewise secure the necessary permit from the Department before operating the same.
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Sec. 6. Registration of Chain Saws. - Within a period of three (3) months from the effectivity
hereof, all persons who own or are otherwise in possession of chain saws must register the
same with the Department, through any of its Community Environment and Natural Resources
Office, which shall issue the corresponding registration certificate or permit if it finds such
persons to be qualified hereunder.
Every permit to possess and/or use a chain saw for legitimate purpose shall be valid for two
(2) years upon issuance:Provided, That permits to possess and use chainsaw issued to noncommercial orchard and fruit tree farmers shall be valid for a period of five (5) years upon
issuance. For this purpose, the Department shall be allowed to collect reasonable registration
fees for the effective implementation of this Act.
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Sec. 7. Penal Provisions. (a) Selling, Purchasing, Re-selling, Transferring, Distributing or Possessing a Chain Saw
Without a Proper Permit. - Any person who sells, purchases, transfer the ownership,
distributes or otherwise disposes or possesses a chain saw without first securing the necessary
permit from the Department shall be punished with imprisonment of four (4) years, two (2)
months and one (1) day to six (6) years or a fine of not less than Fifteen thousand pesos
(P15,000.00) but not more Thirty thousand pesos (30,000.00) or both at the discretion of the
court, and the chain saw/s confiscated in favor of the government.
(2) Unlawful Importation or Manufacturing of Chain Saw. - Any person who imports or
manufactures a chain saw without obtaining prior authorization from the Department shall be
punished by imprisonment of not less than one (1) month nor more than six (6) months and a
fine of not less than One thousand pesos (P1,000.00) for more than Four thousand pesos
(P4,000.00).
(3) Tampering of Engine Serial Number. - Any person who is found to have defaced or
tampered with the original registered engine serial number of any chain saw unit shall be
punished by imprisonment of not less than one (1) month nor more than six (6) months and a
fine of not less than One thousand pesos (P1,000.00) nor more than Four thousand pesos
(P4,000.00).
(4) Actual Unlawful Use of Chain Saw. - Any person who is found to be in possession of a chain
saw and uses the same to cut trees and timber in forest land or elsewhere except as
authorized by the Department shall be penalized with imprisonment of six (6) years and one
(1) day to eight (8) years or a fine of not less that Thirty thousand pesos (P30,000.00) but not
more than Fifty thousand pesos (P50,000.00) or both at the discretion of the court without
prejudice to being prosecuted for a separate offense that may have been simultaneously
committed. The chain saw unlawfully used shall be likewise confiscated in favor of the
government.
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If the violation under this Sec. is committed by or through the command or order of another
person, partnership or corporation, the penalties herein provided shall likewise be imposed on
such other person, or the responsible officer(s) in such partnership or corporation.
If the offender is a public official or employee, in addition to the above penalties, he shall be
removed from office and perpetually disqualified from holding any public office.
The chain saws confiscated under this Sec. shall be sold at public auction to qualified buyers
and the proceeds thereof shall go to the Department.
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Sec. 8. Reward. - Any person who voluntarily gives information leading to the recovery or
confiscation of an unregistered chain saw and the conviction of persons charged thereof shall
be entitled to a reward equivalent to twenty person (20%) of the value of the chain saw
unit(s). The Department is authorized to include in its budget the amount necessary to carry
out the purpose of this Sec. .
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Sec. 9. Authority of the Secretary. - To effectively implement the provisions of this Act, the
Secretary shall issue the implementing rules and regulations within ninety (90) days upon
approval of this Act. He shall likewise organize an office within the Department to ensure that
requirements imposed by this Act may be complied with by qualified persons, within the
shortest possible time, at the least possible expense.
In the Province of Palawan, the provisions of this Act shall be implemented by the Palawan
Council for Sustainable Development pursuant to Republic Act No. 7611 or the Strategic
Environmental Plan for Palawan.
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Sec. 10. Revocation of Registration and Permit. - The Secretary may revoke any Certificate of
Registration or permit previously issued to a person found violating the provisions of this Act,
or the rules and regulations issued pursuant thereto.
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Sec. 11. Joint Congressional Oversight Committee. - To monitor and oversee the
implementation of this Act, including the approval of the rules and regulations issued pursuant
hereto, there is hereby created a Joint Congressional Oversight Committee to be composed of
the Chairpersons of the Senate Committee on Environment and Natural Resources and the
House Committee on Natural Resources as Chairperson and Co-Chairperson, five (5) members
of each of the Senate and the House of Representatives who shall be designated by the Senate
President and the Speaker of the House of Representatives as members: Provided, That the
two (2) of the five (5) senators and two (2) of the five (5) House members shall be nominated
by the respective Minority Leaders of the Senate and the House of Representatives.
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Sec. 12. Transitory Provision. - In the interim while the Department is formulating the
implementing rules and regulations to effectively carry out the provisions of this Act, the
Bureau of Customs is prohibited from approving any chain saw importation without clearance
from said Department.
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Sec. 13. Separability Clause. - If, for any reason, any part or provision of this act shall be
declared as unconstitutional or invalid, such parts or provisions not affected thereby shall
remain in full force and effect.
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Sec. 14. Repealing Clause. - all laws, executive orders, presidential decrees, letters of
instruction, rules and regulations, or parts thereof which are inconsistent with any of the
provisions of this Act are hereby repealed and/or amended accordingly.
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Sec. 15. Effectivity. - This Act shall take effect fifteen (15) days after its complete publication
in the Official Gazette or in at least two (2) national newspapers of general circulation,
whichever comes earlier.
Approved:
FRANKLIN DRILON
President of the Senate
This Act, which is a consolidation of Senate Bill No. 1940 and House Bill No. 3994, was finally
passed by the Senate and the House of Representative on August 14, 2002 and September 2,
2002, respectively.
ROBERTO P. NAZARENO
Secretary General
House of Represenatives
OSCAR G. YABES
Secretary of Senate
Section 2
Policies
The State hereby adopts the following policies:
a.
The multiple uses of forest lands shall be oriented to the
development and progress requirements of the country, the advancement of
science and technology, and the public welfare;
b. Land classification and survey shall be systematized and hastened;
c. The establishment of wood-processing plants shall be encouraged and
rationalized; and
d. The protection, development and rehabilitation of forest lands shall
be emphasized so as to ensure their continuity in productive condition.
Section 3
Definitions
a. Public forest is the mass of lands of the public domain which has
not been the subject of the present system of classification for the
determination of which lands are needed for forest purposes and which
are not.
b. Permanent forest or forest reserves refer to those lands of the
public domain which have been the subject of the present system of
classification and determined to be needed for forest purposes.
c. Alienable and disposable lands refer to those lands of the public
domain which have been the subject of the present system of
classification and declared as not needed for forest purposes.
d. Forest lands include the public forest, the permanent forest or
forest reserves, and forest reservations.
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e. Grazing land refers to that portion of the public domain which has
been set aside, in view of the suitability of its topography and
vegetation, for the raising of livestock.
f. Mineral lands refer to those lands of the public domain which have
been classified as such by the Secretary of Natural Resources in
accordance with prescribed and approved criteria, guidelines and
procedure.
g. Forest reservations refer to forest lands which have been reserved
by the President of the Philippines for any specific purpose or
purposes.
h. National park refers to a forest land reservation essentially of
primitive or wilderness character which has been withdrawn from
settlement or occupancy and set aside as such exclusively to preserve
the scenery, the natural and historic objects and the wild animals or
plants therein, and to provide enjoyment of these features in such a
manner as will leave them unimpaired for future generations.
i. Game refuge or bird sanctuary refers to a forest land designated for
the protection of game animals, birds and fishes and closed to hunting
and fishing in order that the excess population may flow and restock
surrounding areas.
j. Marine park refers to any public offshore area delimited as habitat
of rare and unique species of marine flora and fauna.
k. Seashore park refers to any public shore area delimited for outdoor
recreation, sports fishing, water skiing and related healthful
activities.
l. Watershed reservation is a forest land reservation established to
protect or improve the conditions of the water yield thereof or reduce
sedimentation.
m. Watershed is a land area drained by a stream or fixed body of water
and its tributaries having a common outlet for surface run-off.
n. Critical watershed is a drainage area of a river system supporting
existing and proposed hydro-electric power, irrigation works or domestic
water facilities needing immediate protection or rehabilitation.
o. Mangrove is a term applied to the type of forest occurring on tidal
flat along the sea coast, extending along stream where the water is
brackish.
p. Kaingin refers to a portion of the forest land which is subjected to
shifting and/or permanent slash-and-burn cultivation.
q. Forest product means, timber, pulpwood, firewood, bark, tree top,
resin, gum, wood, oil, honey beeswax, nipa, rattan, or other forest
growth such as grass, shrub, and flowering plant, the associated water,
fish, game, scenic, historical, recreational and geologic resources in
forest lands.
For the purpose of implementing the provisions of this Code, the Bureau
of Forestry, the Reforestation Administration, the Southern Cebu
Reforestation Development Project, and the Parks and Wildlife Office,
including applicable appropriations, records, equipment, property and
such personnel as may be necessary, are hereby merged into single agency
to be known as the Bureau of Forest Development, hereinafter referred to
as the Bureau.
Section 5
Jurisdiction of Bureau
The Bureau shall have jurisdiction and authority over all forest land,
grazing lands, and all forest reservations including watershed
reservations presently administered by other government agencies or
instrumentalities.
It shall be responsible for the protection, development, management,
regeneration and reforestation of forest lands; the regulation and
supervision of the operation of licensees, lessees and permittees for
the taking or use of forest products therefrom or the occupancy or use
thereof; the implementation of multiple use and sustained yield
management in forest lands; the protection, development and preservation
of national parks, marine parks, game refuges and wildlife; the
implementation of measures and programs to prevent kaingin and managed
occupancy of forest and grazing lands; in collaboration with other
bureaus, the effective, efficient and economic classification of lands
of the public domain; and the enforcement of forestry, reforestation,
parks, game and wildlife laws, rules and regulations.
The Bureau shall regulate the establishment and operation of sawmills,
veneer and plywood mills and other wood processing plants and conduct
studies of domestic and world markets of forest products.
Section 6
Director and Assistant Director
and Their Qualifications
The Bureau shall be headed by a Director who shall be assisted by one or
more Assistant Directors. The Director and Assistant Directors shall be
appointed by the President.
No person shall be appointed Director or Assistant Director of the
Bureau unless he is a natural born citizen of the Philippines, at least
30 years of age, a holder of at least a Bachelors Degree in Forestry or
its equivalent, and a registered forester.
Section 7
Supervision and Control
The Bureau shall be directly under the control and supervision of the
Secretary of the Department of Natural Resources, hereinafter referred
to as the Department Head.
Section 8
Review
All actions and decisions of the Director are subject to review, motu
proprio or upon appeal of any person aggrieved thereby, by the
Department Head whose decision shall be final and executory after the
lapse of thirty (30) days from receipt by the aggrieved party of said
decision, unless appealed to the President in accordance with Executive
Order No. 19, series of 1966. The Decision of the Department Head may
not be reviewed by the courts except through a special civil action for
certiorari or prohibition.
Section 9
Rules and Regulations
The Department Head, upon the recommendation of the Director of Forest
Development, shall promulgate the rules and regulations necessary to
implement effectively the provisions of this Code.
Section 10
Creation of Functional Divisions,
and Regional and District Offices
All positions in the merged agencies are considered vacant. Present
occupants may be appointed in accordance with a staffing pattern or plan
or organization to be prepared by the Director and approved by the
Department Head. Any appointee who fails to report for duty in
accordance with the approved plan within thirty (30) days upon receipt
of notification shall be deemed to have declined the appointment, in
which case the position may be filed by any other qualified applicant.
For the efficient and effective implementation of the program of the
Bureau, the following divisions and sections are hereby created, to
wit:
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Divisions
Planning and
Evaluation
Division
Sections
Program Planning;
Performance
Evaluation;
Forest Economics;
Management
Analysis Data &
Information
Administrative Personnel;
Division
Budget;
Accounting;
Information;
General Services
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Legal Division
Reforestation
and
Afforestation
Division
Cooperative
Planting;
Planting Stock
Production;
Plantation
Management
Timber
Forest Surveys,
Management
Data & Mapping;
Division
Silviculture;
Timber Inventory
& PhotoInterpretation;
Timber Management
Plans; Land
Classification
Utilization
Timber
Division
Operations; Land
Uses; Utilization
Forest
Forest
Protection and Protection;
Infrastructure Forest Occupancy
Management;
Watershed
Management;
Infrastructure
Parks,
Parks Management;
Wildlife
Recreation
Division
Management;
Wildlife
Management; Range
Management
Security and
Intelligence
Division
Forest
Technical
Development
Training; NonTraining
Technical
Center
Training
The Department Head may, upon recommendation of the Director, reorganize
or create such other divisions, sections or units as may be deemed
necessary and to appoint the personnel there; Provided, That an employee
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Section 12
Performance Evaluation
The Bureau shall devise a system, to be approved by the Department Head,
to evaluate the performance of its employees. The system shall measure
accomplishment in quantity and quality of performance as related to the
funded program of work assigned to each organizational unit. There shall
be included a system of periodic inspection of district offices by the
regional offices and the regional and district offices by the Central
Office in both functional fields and in the overall assessment of how
each administrative unit has implemented the laws, regulations,
policies, programs, and practices relevant to such unit. The evaluation
system shall provide the information necessary for annual progress
reports and determination of employee training, civil service awards and
transfer or disciplinary action.
CHAPTER II
CLASSIFICATION AND SURVEY
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Section 13
System of Land Classification
The Department Head shall study, devise, determine and prescribe the
criteria, guidelines and methods for the proper and accurate
classification and survey of all lands of the public domain into
agricultural, industrial or commercial, residential, resettlement,
mineral, timber or forest, and grazing lands, and into such other
classes as now or may hereafter be provided by law, rules and
regulations.
In the meantime, the Department Head shall simplify through inter-bureau
action the present system of determining which of the unclassified lands
of the public domain are needed for forest purposes and declare them as
permanent forest to form part of the forest reserves. He shall declare
those classified and determined not to be needed for forest purposes as
alienable and disposable lands, the administrative jurisdiction and
management of which shall be transferred to the Bureau of Lands:
Provided, That mangrove and other swamps not needed for shore protection
and suitable for fishpond purposes shall be released to, and be placed
under the administrative jurisdiction and management of, the Bureau of
Fisheries and Aquatic Resources. Those still to be classified under the
present system shall continue to remain as part of the public forest.
Section 14
Existing Pasture Leases in Forest Lands
Forest lands which are not reservations and which are the subject of
pasture leases shall be classified as grazing lands and areas covered by
pasture permits shall remain forest lands until otherwise classified
under the criteria, guidelines and methods of classification to be
prescribed by the Department Head: Provided, That the administration,
management and disposition of grazing lands shall remain under the
Bureau. [As amended by PD No. 1559]
Section 15
Topography
No land of the public domain eighteen per cent (18%) in slope or over
shall be classified as alienable and disposable, nor any forest land
fifty per cent (50%) in slope or over, as grazing land.
Lands eighteen percent (18%) in slope or over which have already been
declared as alienable and disposable shall be reverted to the
classification of forest lands by the Department Head, to form part of
the forest reserves, unless they are already covered by existing titles
approved public land application, or actually occupied openly,
continuously, adversely and publicly for a period of not less than
thirty (30) years as of the effectivity of this Code, where the occupant
is qualified for a free patent under the Public Land Act: Provided, That
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categories shall have been titled in favor of any person, steps shall be
taken, if public interest so requires, to have said title canceled or
amended, or the titled area expropriated. .
Section 17
Establishment of Boundaries of Forest Lands
All boundaries between permanent forests and alienable or disposable
lands shall be clearly marked and maintained on the ground, with
infrastructure or roads, or concrete monuments at intervals of not more
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operate any wood or forest products processing plant, unless he had been
authorized to do under a license agreement, license, lease or permit:
Provided, That when the national interest so requires, the President may
amend, modify, replace, or rescind any contract, concession, permit,
license, or any other form of privilege granted herein: Provided,
further, That upon the recommendation of the appropriate government
agency, the President may, pending the conduct of appropriate hearing,
order the summary suspension of any such contract, concession, license,
permit, lease or privilege granted under this decree for violation of
any of the conditions therein such as those pertaining but not limited
to reforestation, pollution, environment protection, export limitation
or such condition as are prescribed by the Department of Natural
Resources in daily issued regulations.[As amended by PD No. 1559]
Section 21
Sustained Yield
All measures shall be taken to achieve an approximate balance between
growth and harvest or use of forest products in forest lands.
A.
Timber
Section 22
Silvicultural and Harvesting Systems
In any logging operations in production forests within forest lands, the
proper silvicultural and harvesting system that will promote optimum
sustained yield shall be practiced, to wit:
a.
For dipterocarp forest, selective logging with enrichment or
supplemental planting when necessary.
b. For pine or mangrove forest, the seed tree system with planting when
necessary: Provided, That subject to the approval of the Department
Head, upon recommendation of the Director, any silvicultural and
harvesting system that may be found suitable as a result of research may
be adopted: Provided, further, That no authorized person shall cut,
harvest or gather any timber, pulp-wood, or other products of logging
unless he plants three times of the same variety for every tree cut or
destroyed by such logging or removal of logs. Any violation of this
provision shall be sufficient ground for the immediate cancellation of
the license, agreement, lease or permit. [As amended by PD No. 1559]
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Section 23
Timber Inventory
The Bureau shall conduct a program of progressive inventories of the
harvestable timber and young trees in all forest lands, whether covered
by any license agreement, license, lease or permit, or not, until a one
hundred percent (100%) timber inventory thereon has been achieved.
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Section 24
Required Inventory Prior to
Timber Utilization in Forest Lands
No harvest of timber in any forest land shall be allowed unless it has
been the subject of at least a five per cent (5%) timber inventory, or
any statistically sound timber estimate, made not earlier than five (5)
years prior to the issuance of a license agreement or license allowing
such utilization.
Section 25
Cutting Cycle
The Bureau shall apply scientific cutting cycle and rotation in all
forest lands, giving particular consideration to the age, volume and
kind of healthy residual trees which may be left undisturbed and
undamaged for future harvest and forest cover in dipterocarp area, and
seed trees and reproduction in pine area.
Section 26
Annual Allowable Cut
The annual allowable cut or harvest of any particular forest land under
a license agreement, license, lease or permit shall be determined on the
basis of the size of the area, the volume and kind of harvestable timber
or forest products and healthy residuals, seed trees and reproduction
found therein, and the established cutting cycle and rotation thereof.
No person shall cut, harvest and gather any particular timber, pulpwood,
firewood and other forest products unless he has been authorized under
Section 20 hereof to do so and the particular annual allowable cut
thereof has been granted.
In the public interest and in accordance with Section 21 hereof, the
Department Head shall review all existing annual allowable cut and
thereupon shall prescribe the level of annual allowable cut for the
common dipterocarp timber, softwood and hardwood timber cutting of which
is not prohibited, pulpwood, firewood and other forest products using as
bases the factors as well as the updated aerial photographs and field
inventories of such forest land: Provided, That pending the completion
of such review and appropriate amendment of the annual allowable cut in
existing license agreement, license, lease or permit existing annual
allowable cut that not sufficiently supports wood or forest products
processing plant or that will support duly approved processing expansion
program or new processing projects may be allowed to continue without
change: Provided, further, That no additional or adjustment in annual
allowable cut shall be made until after such a review has been
made. [As amended by PD No. 1559]
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Section 27
Duration of License Agreement or License to Harvest Timber in Forest
Lands
The duration of the privilege to harvest timber in any particular forest
land under a license agreement or license shall be fixed and determined
in accordance with the annual allowable cut therein, the established
cutting cycle thereof, the yield capacity of harvestable timber, and the
capacity of healthy residuals for a second growth.
The privilege shall automatically terminate, even before the expiration
of the license agreement of license, the moment the harvestable timber
have been utilized without leaving any logged-over area capable of
commercial utilization.
The maximum period of any privilege to harvest timber is twenty-five
(25) years, renewable for a period, not exceeding twenty-five (25)
years, necessary to utilize all the remaining commercial quantity or
harvestable timber either from the unlogged or logged-over area.
It shall be a condition for the continued privilege to harvest timber
under any license or license agreement that the licensee shall reforest
all the areas which shall be determined by the Bureau.
Section 28
Size of Forest Concessions
Forest lands shall not be held in perpetuity.
The size of the forest lands which may be the subject of timber
utilization shall be limited to that which a person may effectively
utilize and develop for a period of fifty (50) years, considering the
cutting cycle, the past performance of the applicant and his capacity
not only to utilize but, more importantly, to protect and manage the
whole area, and the requirements of processing plants existing or to be
installed in the region.
Forest concessions which had been the subject of consolidations shall be
reviewed
and
re-evaluated
for
the
effective
implementation
of
protection, reforestation and management thereof under the multiple use
and sustained yield concepts, and for the processing locally of the
timber resources therefrom.
B.
Wood-Processing
Section 29
Incentives to the Wood Industry
The Department Head, in collaboration with other government agencies and
the wood industry associations and other private entities in the
country, shall evolve incentives for the establishment of an integrated
wood industry in designated wood industry centers and/or economic area.
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Section 31
Wood Wastes, Weed Trees and Residues
Timber licensees shall be encouraged and assisted to gather and save the
wood wastes and weed trees in their concessions, and those with
processing plants, the wood residues thereof, for utilization and
conversion into wood by-products and derivatives.
Section 32
Log Production and Processing
Unless otherwise directed by the President, upon recommendation of the
Department Head, the entire production of logs by all timber licensees
shall, beginning January 1, 1976 be processed locally: Provided, That
the following conditions must be complied with by those who apply be
allowed to export a portion of their log production to be determined by
the Department Head such that the total log export of these timber
licensees shall not exceed twenty-five percent (25%) of the total
national allowable cut:
1. Timber licensees with existing viable processing plants; or
2.
Timber licensees with processing projects duly approved by the
Department Head; or
3. Timber licensees who have acquired viable processing machinery and
equipment which will be installed and will become operational in
accordance with the schedule approved by the Department Head; and
4.
Timber licensees whose log export support or are in line with,
government-approved trade agreement.
Provided, further, That no person shall be given a permit to export if he
has not complied with the requirements on replanting and reforestation.
Provided, That the President may, upon recommendation of the Department
Head, whenever the export price of logs falls to unreasonably low level
or whenever public interest so requires, cancel log exportation or
reduce the maximum allowable proportion for log exports.
All timber licensees who have no processing plant and who have no plan
to establish the same shall, jointly with wood processors, adopt a
scheme or schemes for the processing of the log production in accordance
with Section 30 hereof.[As amended by PD No. 865, and by PD No. 1559]
C.
Reforestation
Section 33
Lands to be Reforested and/or Afforested
Lands to be reforested and/or afforested are as follows:
a.
Public
forest
lands:
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b.
Bare
or
grass-covered
tracts
of
forest
lands;
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Inadequately-stock
forest
lands
within
forest
concessions;
g.
Portions of areas covered by pasture leases or permits needing
immediate
reforestation;
h. River banks, easements, road right-of-ways, deltas, swamps, former
river
beds,
and
beaches.
i.
Private
Lands:
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plantation, the tree farm, or agro-forestry farm, as the case may be, as
prescribed in the development plan submitted to, and approved by the
Department Head, upon recommendation of the Director;
c. The forest charges payable by a lessee on the timber and other
forest products grown and cut or gathered in an industrial tree
plantation, tree farm, or agro-forestry farm shall only be twenty-five
percent (25%) of the regular forest charges prescribed in the National
Internal Revenue Code;
d. Exemption from the payment of the percentage tax levied in Title V
of the National Internal Revenue Code when the timber and forest
products are sold, bartered or exchanged by the lessee, whether in their
original state or not, as well as exemption from all forms of sales tax,
local and municipal taxes, and from the real property tax under the
provisions of Presidential Decree No. 853;
e. A lessee shall not be subject to any obligation prescribed in, or
arising out of, the provisions of the National Internal Revenue Code on
withholding of tax at source upon interest paid on borrowing incurred
for development and operation of the industrial tree plantation, tree
farm, or agro-forestry farm;
f.
Except when public interest demands, the boundaries of an area
covered by an industrial tree plantation, tree farm, or agro-forestry
farm lease, once established on the ground, shall not be altered or
modified;
g. Amounts expended by a lessee in the development and operation of an
industrial tree plantation, tree farm, or agro-forestry farm prior to
the time when the production state is reached, may, at the option of the
lessee, be regarded as ordinary and necessary business expenses or as
capital expenditures;
h.
The Board of Investments shall, notwithstanding its nationality
requirement on projects involving natural resources, classify industrial
tree plantations, tree farms and agro-forestry farms as pioneer areas of
investment under its annual priority plan, to be governed by the rules
and regulations of said Board;
In addition to the incentives under this section, private landowners
who engage in tree farming on areas fifty hectares or below by
planting their lands with Ipil-ipil and other fast growing trees shall
be exempt from the inventory requirement and other requirements before
harvest as provided in this Decree for lessees of forest lands of the
public domain: Provided, That the transport of trees cut shall be
accompanied by the corresponding certificate of origin duly issued by
the authorized forest officer. [As added by BP Blg. 701, approved
April 5, 1984]
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i.
Approved industrial tree plantations, tree farms, and agroforestry farms shall be given priority in securing credit assistance
from the government and government-supported financing institutions
which shall set aside adequate funds for lending to the lessee and/or
investor at reasonable interest rates;
j. The lessee and its field employees and workers shall be exempted
from the provisions of Presidential Decree No. 1153;
k. Government institutions administering or financing programs and
projects requiring wood materials shall specify the purchase of, or
utilize, manufactured products derived from trees grown and harvested
from industrial tree plantations, tree farms or agro-forestry farms,
whenever possible;
l. No wood, wood products or wood-derivated products including pulp
paper, paperboard shall be imported if the same are available in
required quantities and reasonable prices, as may be certified by the
Department Head, from artificial or man-made forests, or local
processing plants manufacturing the same;
m.
No processing plant of whatever nature or type, made of or
utilization, as primary materials shall be allowed to be established,
expanded or integrated, and operated without a long-term assurance or
raw materials source from forest concessions and/or from industrial
tree plantations, tree farms or agro-forestry farms in accordance with
Section 30 hereof;
n. Timber grown and harvested from industrial tree plantations, tree
farms and agro-forestry farms may be exported without restriction in
quantity or volume, and if the exporter is the same person or firm
qualified and allowed to export logs under the provisions of this
Decree, such timber from plantations/farms may be exported exclusive
of the quantity or volume authorized under Section 32 hereof:
Provided, That the rentals on the forest land and the forest charges
on the plantation timber shall have been paid: Provided, further, That
the export of the plantation timber shall be covered by a certificate
to export issued by the Department Head on a yearly basis: Provided,
finally, That the Department Head may at any time review the
exportation of timber harvested from the plantations/farms and either
reduce or totally suspend the export of such plantation timber
whenever public interest so requires; and
o.
Free technical advice from government foresters and farm
technicians.
The Department Head may provide other incentives in addition to those
hereinafter granted to promote industrial tree plantations, tree farms
and agro-forestry farms in special areas such as, but not limited to,
those where there are no roads or where e roads are inadequate, or areas
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with rough topography and remote areas far from processing plants. [As
amended by PD No. 1559]
D.
Forest Protection
Section 37
Protection of All Resources
All measures shall be taken to protect the forest resources from
destruction, impairment and depletion.
Section 38
Control of Concession Area
In order to achieve the effective protection of the forest lands and the
resources thereof from illegal entry, unlawful occupation, kaingin,
fire, insect infestation, theft, and other forms of forest destruction,
the utilization of timber therein shall not be allowed except through
license agreements under which the holders thereof shall have the
exclusive privilege to cut all the allowable harvestable timber in their
respective concessions, and the additional right of occupation,
possession, and control over the same, to the exclusive of all others,
except the government, but with the corresponding obligation to adopt
all the protection and conservation measures to ensure the continuity of
the productive condition of said areas, conformably with multiple use
and sustained yield management.
If the holder of a license agreement over a forest area expressly or
impliedly waives the privilege to utilize any softwood, hardwood or
mangrove species therein, a license may be issued to another person for
the harvest thereof without any right of possession or occupation over
the areas where they are found, but he shall, likewise, adopt protection
and conservation measures consistent with those adopted by the license
agreement holder in the said areas.
Section 39
Regulation of Timber Utilization in All Other Classes of Lands and of
Processing Plants
The utilization of timber in alienable and disposable lands, private
lands, civil reserve preservations, and all lands containing standing or
felled timber including those under the jurisdiction of other government
agencies, and the establishment and operation of sawmills and other
wood-processing plants, shall be regulated in order to prevent them from
being used as shelters for excessive and unauthorized harvests in forest
lands, and shall not therefore be allowed except through a license
agreement, license, lease or permit.
Section 40
Timber Inventory in Other Lands Containing Standing or Felled Timber
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The Bureau shall conduct a one hundred percent (100%) timber inventory
in alienable and disposable lands and civil reservations immediately
upon classification or reservation thereof.
No harvest of standing or felled timber in alienable and disposable
lands, private lands, civil reservation, and all other lands, including
those under the jurisdiction of other government agencies, shall be
allowed unless a one hundred percent (100%) timber inventory has been
conducted thereon.
Section 41
Sworn Timber Inventory Reports
All reports on timber inventories of forest lands, alienable and
disposable lands, private lands, civil reservations, and all lands
containing standing or felled timber must be subscribed and sworn to by
all the forest officers who conducted the same.
Section 42
Participation in the Development of Alienable and Disposable Lands and
Civil Reservations
The privilege to harvest timber in alienable and disposable lands and
civil reservations shall be given to those who can best help in the
delineation and development of such areas in accordance with the
management plan of the appropriate government exercising jurisdiction
over the same.
The extent of participation shall be based on the amount of timber which
may be harvested therefrom.
Section 43
Swamplands and Mangrove Forests
Strips of mangrove forest bordering numerous islands which protect the
shoreline, the shoreline roads, and even coastal communities from the
destructive force of the sea during high winds and typhoons, shall be
maintained and shall not be alienated. Such strips must be kept from
artificial obstruction so that flood water will flow unimpeded to the
sea to avoid flooding or inundation of cultivated areas in the upstream.
All mangrove swamps set aside for coast-protection purposes shall not be
subject to clear-cutting operation.
Mangrove and other swamps released to the Bureau of Fisheries and
Aquatic Resources for fishpond purposes which are not utilized, or which
have been abandoned for five (5) years from the date of such release
shall revert to the category of forest land.
Section 44
Visitorial Power
The Department Head may, by himself or thru the Director or any
qualified person duly designated by the Department Head, investigate,
inspect and examine records, books and other documents relating to the
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E.
Special Uses
Section 54
Pasture in Forest Lands
in slope or over may be
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Section 58
Diffusion of Benefits
The privilege to utilize, exploit, occupy, or possess forest lands, or
to conduct any activity therein, or to establish and operate woodprocessing plants, shall be diffused to as many qualified and deserving
applicants as possible.
Section 59
Citizenship
In the evaluation of applications of corporations, increased Filipino
equity and participation beyond the 60% constitutional limitation shall
be encouraged. All other factors being equal, the applicant with more
Filipino equity and participation shall be preferred.
Section 60
Financial and Technical Capability
No license agreement, license, lease or permit over forest lands shall
be issued to an applicant unless he proves satisfactorily that he has
the financial resources and technical capability not only to minimize
utilization, but also to practice forest protection, conservation and
development measures to insure the perpetuation of said forest in
productive condition.
Section 61
Transfers
Unless authorized by the Department Head, no licensee, lessee, or
permittee may transfer, exchange, sell or convey his license agreement,
license, lease or permit, or any of his rights or interests therein, or
any of his assets used in connection therewith.
The licensee, lessee or permittee shall be allowed to transfer or convey
his license agreement, license, lease or permit only if the license,
lease or permit has been in existence for at least three (3) years, the
licensee, lessee or permittee has not violated any forestry law, rule or
regulation and has been faithfully complying with the terms and
conditions of the license agreement, license, lease or permit, the
transferee has all the qualifications and none of the disqualifications
to hold a license agreement, license, lease or permit, there is no
evidence that such transfer of conveyance is being made for purposes of
speculation; and the transferee shall assume all the obligations of the
transferor.
As used in this section, the term assets shall not include cattle and
other livestocks or animals raised in grazing lands and forest lands,
and planted trees and other products raised in industrial tree
plantations, tree farms and agro-forestry farms. [As amended by PD No.
1559]
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Section 62
Service Contracts
The Department Head, may in the national interest, allow forest products
licensees, lessees or permittees to enter into service contracts for
financial, technical, management, or other forms of assistance, in
consideration of a fee, with any foreign person or entity for the
exploration, development, exploitation or utilization of the forest
resources, covered by their license agreements, licenses, leases or
permits. Existing valid and binding service contracts for financial,
technical, management or other forms of assistance are hereby recognized
as such.
Section 63
Equity Sharing
Every corporation holding a license agreement, license, lease or permit
to utilize, exploit, occupy or possess any forest land, or conduct any
activity therein, or establish and operate a wood-processing plant,
shall within one (1) year after the effectivity of this Code, formulate
and submit to the Department Head for approval a plan for the sale of at
least twenty percent (20%) of its subscribed capital stock in favor of
its employees and laborers.
The plan shall be so implemented that the sale of the shares of stock
shall be effected by the corporation not later than the sixth year of
its operation, or the first year of the effectivity of this Code, if the
corporation has been in operation for more than 5 years prior to such
effectivity.
No corporation shall be issued any license agreement, license, lease or
permit after the effectivity of this Code, unless it submits such a plan
and the same is approved for implementation within the sixth year of its
operation.
The Department Head shall promulgate the necessary rules and regulations
to carry out the provisions of this section, particularly on the
determination of the manner of payment factors affecting the selling
price, establishment of priorities in the purchase of the shares of
stock, and the capability of the deserving employees and laborers. The
industries concerned shall extend all assistance in the promulgation of
policies on the matter, such as the submission of all data and
information relative to their operation, personnel management, and asset
evaluation.
G.
Regulatory Fees
Section 64
Equity Sharing
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as timber ends, tops and stumps when used as raw materials for the
manufacture of finished products. Ten pesos (P10.00).
Only third or fourth group wood can be taken for firewood. However, if
jointly authorized by the Secretaries of both the Departments of
Environment and Natural Resources and Agriculture, first and second
group woods may be removed for firewood purposes from land which is more
valuable for agricultural than for forest purposes. [As amended by RA
No. 7161]
Section 72
Charges on Minor Forest Products
All other forest products of forestland which are not covered by the
preceding sections shall be exempt from any or all forest charges,
except rattan, gums and resins, bees-wax, gutapercha, almaciga resin and
bamboo which shall be charged at ten percent (10%) of the actual FOB
market price. [As amended by RA No. 7161]
Section 73
Effectivity and Application of Forest Charges and Determination of
Market Price of Forest Products
The rates of forest charges provided for in Sections 70, 71 and 72
hereof shall be effective upon approval of this Act. The new rates shall
be published in the Official Gazette or in two (2) newspapers of
national circulation and shall also be posted in conspicuous places in
the different Department of Environment and Natural Resources field
offices.
The actual FOB market price of forest products shall be justly
determined once a year by the Secretary of Environment and Natural
Resources: Provided, That he shall cause the creation of a committee to
be composed of representatives of the Department of Environment and
Natural Resources, the National Economic Development Authority the
Department of Trade and Industry, the Bureau of Internal Revenue and the
wood and furniture industry and consumer sectors which shall formulate
the criteria and/or guidelines in the determination of the actual FOB
market price to be used as the basis for the assessment of the ad
valorem tax. Taking into consideration production cost (developing cost,
contingencies and miscellaneous cost), species and grade of timber,
government share, reforestation, tariff duties, taxes, risk involved and
a reasonable margin of profit for domestic and export market prices for
wood and wood products.
These forest charges shall be applied to naturally growing timber and
forest products gathered within public forestlands, alienable and
disposable lands and private lands. Forest charges collected shall be in
lieu of the administrative charge on environment and other fees and
charges imposed thereon: Provided, That planted trees and other forest
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the place where the timber concession is located or where the forest
products were gathered and removed, except as herein below provided.
With the approval of the Commissioner, lumber may be removed from a
sawmill situated on a licensed citing area upon the giving of a bond
conditioned upon the monthly payment of the charges due on the output of
such mill. He may also authorize the shipment of forest products under
auxiliary invoices without the prepayment of charges in special cases
where the prepayment of the charges at the point of origin would result
in undue hardship, if the owner of concessionaire shall first file a
bond with the Bureau of Internal Revenue in the form and amount and with
such sureties as the Commissioner may require, conditioned upon the
payment of the forest charges at the point of destination or at such
time and place as the Commissioner may direct. However, if any forest
products are removed, the Commissioner of Internal Revenue or his duly
authorized representatives shall first be notified of such removal on a
form prescribed for the purpose to be filed with the revenue district
officer of the place where the concession is located or where the forest
products were gathered and removed. It shall be the duty of every
licensee to make a true and complete return in duplicate setting forth
the quantity, volume and the specie of the forest product removed during
each calendar quarter, or the balance, if any, in cases where payments
are made upon removal, and pay the taxes due thereon within twenty days
after the end of each quarter to the revenue district officer,
collection agent, or duly authorized treasurer of the municipality of
the place where the timber concession is located or where the forest
products were gathered and removed.
In case the taxes are not paid within the period prescribed above, there
shall be added thereto a surcharge of twenty-five per centum, the
increment to be a part of the tax and the entire unpaid amount shall be
subject to interest at the rate of twenty per centum per annum. Where a
false or fraudulent return is made, there shall be added to the taxes a
surcharge of fifty per centum of their amount, and the entire unpaid
amount shall be subject to interest at the rate of twenty per centum per
annum. The amounts so added shall be collected in the same manner and as
part of the taxes, as the case may be. [As amended by BP Blg. 83]
CHAPTER IV
CRIMINAL OFFENSES AND PENALTIES
Section 78
Cutting, Gathering and/or Collecting Timber, or Other Forest Products
Without License
Any person who shall cut, gather, collect, remove timber or other forest
products from any forestland, or timber from alienable or disposable
public land, or from private land, without any authority, or possess
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in any forest land or grazing land, or refuses to vacate the area when
ordered to do so, pursuant to the provisions of Section 53 hereof shall,
upon conviction, be fined in an amount of not less than five hundred
pesos (P500.00), nor more than twenty thousand pesos (P20,000.00) and
imprisoned for not less than six (6) months nor more than two (2) years
for each such offense, and be liable to the payment of ten (10) times to
the rental fees and other charges which would have accrued had the
occupation and use of the land been authorized under a license
agreement, lease, license or permit: Provided, That in the case of an
offender found guilty of making kaingin, the penalty shall be
imprisonment for not less than two (2) nor more than four (4) years and
a fine equal to eight (8) times the regular forest charges due on the
forest products destroyed, without prejudice to the payment of the full
cost of production of the occupied area as determined by the Bureau:
Provided, further, That the maximum of the penalty prescribed herein
shall be imposed upon the offender who repeats the same offense and
double the maximum of the penalty upon the offender who commits the same
offense for the third time.
In all cases, the Court shall further order the eviction of the offender
from the land the forfeiture to the government of all improvements made
and all vehicles, domestic animals and equipment of any kind used in the
commission of the offense. If not suitable for use by the Bureau, said
vehicles, domestic animals, equipment and improvements shall be sold at
public auction, the proceeds of which shall accrue to the Development
Fund of the Bureau.
In case the offender is a government official or employee, he shall, in
addition to the above penalties be deemed automatically dismissed from
office and permanently disqualified from holding any elective or
appointive position. [As amended by PD No. 1559]
Section 80
Pasturing Livestock
Imprisonment for not less than six (6) months nor more than two (2)
years and a fine equal to ten (10) times the regular rentals due, in
addition to the confiscation of such livestock and all improvements
introduced in the area in favor of the government, shall be imposed upon
any person, who shall, without authority under a lease or permit, graze
or cause to graze livestock in forest lands, grazing lands and alienable
and disposable lands which have not as yet been disposed of in
accordance with the Public Land Act; Provided, That in case the offender
is a corporation, partnership or association, the officers and directors
thereof shall be liable.
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Section 81
Illegal Occupation of National Parks System and Recreation Areas and
Vandalism Therein
Any person who, shall, without permit, occupy for any length of time any
portion of the national parks system or shall, in any manner cut,
destroy, damage or remove timber or any species of vegetation or forest
cover and other natural resources found therein, or shall mutilate,
deface or destroy objects of natural beauty or of scenic value within
areas in the national parks system, shall be fined not less than five
hundred pesos (P500.00) pesos or more than twenty thousand (P20,000.00)
pesos exclusive of the value of the thing damaged; Provided, That if the
area requires rehabilitation or restoration as determined by the
Director, the offender shall also be required to restore or compensate
or the restoration of the damage: Provided, further, That any person
who, without proper permit shall hurt, capture or kill any kind of bird,
fish or wild animal life within the area in the national parks system
shall be subject to the same penalty: Provided, finally, That the Court
shall order eviction of the offender from the land and the forfeiture in
favor of the government of all timber or any species or vegetation and
other natural resources collected or removed, and any construction or
improvement made thereon by the offender. If the offender is an
association or corporation, the president or manager shall be directly
responsible and liable for the act of his employees or laborers.
In the event that an official or employee of a city or municipal
government is primarily responsible for detecting and convicting the
violator of the provisions of this section, fifty per centum (50%) of
fine collected shall accrue to such municipality or city for the
development of local parks. [As amended by PD No. 1559]
Section 82
Destruction of Wildlife Resources
Any person violating the provisions of Section 55 of this Code, or the
regulations promulgated thereunder, shall be fined not less than one
hundred (P100.00) pesos for each such violation and in addition shall be
denied a permit for a period of three (3) years from the date of the
violation.
Section 83
Survey by Unauthorized Persons
Imprisonment for not less than two (2) nor more than four (4) years, in
addition to the confiscation of the implements used in the violation of
this section including the cancellation of the license, if any, shall be
imposed upon any person who shall, without permit to survey from the
Director, enter any forestlands, whether covered by a license agreement,
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In all cases of violations of this Code and other forest laws, rules and
regulations where fine is the principal penalty, the Director is hereby
authorized to impose administratively the penalty consisting of the
fine. [As inserted by PD No. 1559]
Section 90
Separability Clause
Should any provision herein be subsequently declared unconstitutional,
the same shall not affect the validity or the legality of the other
provisions.
Section 91
Repealing Clause
Presidential Decree Nos. 330, and 389, C.A. No. 452, R.A. No. 4715 and
all laws, orders, rules and regulations or any part thereof which are
inconsistent herewith are hereby repealed or amended accordingly.
Section 92
Date of Effectivity
This Code shall take effect immediately upon promulgation.
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