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PRESIDENTIAL DECREE NO. 705

REVISING PRESIDENTIAL DECREE NO. 389, OTHERWISE KNOWN AS THEFORESTRY REFORM CODE OF THE PHILIPPINES

WHEREAS, proper classification, management and utilization of the lands of the public domain to maximize theirproductivity to meet the demands of our increasing population is urgently needed;

WHEREAS, to achieve the above purpose, it is necessary to reassess the multiple uses of forest lands andresources before alloing any utilization thereof to optimize the benefits that can be derived therefrom;

WHEREAS, it is also imperative to place emphasis not only on the utilization thereof but more so on the protection,rehabilitation and development of forest lands, in order to ensure the continuity of their productive condition;

WHEREAS, the present las and regulations governing forest lands are not responsive enough to support re!oriented government programs, pro"ects and efforts on the proper classification and delimitation of the lands of the

public domain, and the management, utilization, protection, rehabilitation, and development of forest lands;

#$W, %HERE&$RE, ', &ER('#A#( E) *AR+$S, resident of the hilippines, by virtue of the poers in me vestedby the +onstitution, do hereby revise residential (ecree #o) -./ to read as follos0

SE+%'$# 1) %itle of this +ode) 2 %his decree shall be 3non as the 4Revised &orestry +ode of the hilippines)5

SE+%'$# 6) olicies) 2 %he State hereby adopts the folloing policies0

a7 %he multiple uses of forest lands shall be oriented to the development and progress re8uirements of the country,the advancement of science and technology, and the public elfare;

b7 9and classification and survey shall be systematized and hastened;

c7 %he establishment of ood!processing plants shall be encouraged and rationalized; and

d7 %he protection, development and rehabilitation of forest lands shall be emphasized so as to ensure their continuityin productive condition)

SE+%'$# -) (efinitions) 2

a7 ublic forest is the mass of lands of the public domain hich has not been the sub"ect of the present system ofclassification for the determination of hich lands are needed for forest purposes and hich are not)

b7 ermanent forest or forest reserves refers to those lands of the public domain hich have been the sub"ect of thepresent system of classification and declared as not needed for forest purposes)

c7 Alienable and disposable lands refer to those lands of the public domain hich have been the sub"ect of thepresent system of classification and declared as not needed for forest purposes)

d7 &orest lands includes the public forest, the permanent forest or forest reserves, and forest reservations)

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e7 :razing land refers to that portion of the public domain hich has been set aside, in vie of the suitability of itstopography and vegetation, for the raising of livestoc3)

f7 *ineral lands refer to those lands of the public domain hich have been classified as such by the Secretary of#atural Resources in accordance ith prescribed and approved criteria, guidelines and procedure)

g7 &orest reservations refer to forest lands hich have been reserved by the resident of the hilippines for anyspecific purpose or purposes)

h7 #ational par3 refers to a forest land reservation essentially of primitive or ilderness character hich has been ithdran from settlement or occupancy and set aside as such exclusively to preserve the scenery, the natural andhistoric ob"ects and the ild animals or plants therein, and to provide en"oyment of those features in such a manneras ill leave them unimpaired for future generations)

i7 :ame refuge or bird sanctuary refers to a forest land designated for the protection of game animals, birds and fishand closed to hunting and fishing in order that the excess population may flo and restoc3 surrounding areas)

 "7 *arine par3 refers to any public offshore area delimited as habitat of rare and uni8ue species of marine flora andfauna)

37 Seashore par3 refers to any public shore area delimited for outdoor recreation, sports fishing, ater s3iing andrelated healthful activities)

l7 Watershed reservation is a forest land reservation established to protect or improve the conditions of the ateryield thereof or reduce sedimentation)

m7 Watershed is a land area drained by a stream or fixed body of ater and its tributaries having a common outlet forsurface run!off)

n7 +ritical atershed is a drainage area of a river system supporting existing and proposed hydro!electric poer,irrigation or3s or domestic ater facilities needing immediate protection or rehabilitation)

o7 *angrove is a term implied to the type of forest occurring on tidal flat along the sea coast, extending along stream here the ater is brac3ish)

p7 aingin refers to a portion of the forest land hich is sub"ected to shifting and

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u7 %ree farm refers to any small forest land or tract of land purposely planted to tree crops)

v7 Agro!forestry is a sustainable management for land hich increases overall production, combines agriculturecrops, tree crops and forest plants and

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 ""7 Silviculture is the establishment, development, reproduction and care of forest trees)

337 Rationalization is the organization of a business or industry using management principles, systems andprocedures to attain stability, efficiency and profitability of operation)

ll7 &orest officer means any official or employee of the =ureau ho has been appointed or delegated by la or bycompetent authority to execute, implement or enforce the provisions of this +ode, other related las, as ell as theirimplementing regulations)

mm7 rivate right means or refers to titled rights of onership under existing las, and in the case of national minorityto rights of possession existing at the time a license is granted under this +ode, hich possession may includeplaces of abode and orship, burial grounds, and old clearings, but exclude productive forest inclusive of logged!overareas, commercial forests and established plantations of the forest trees and trees of economic values)

nn7 erson includes natural as ell as "uridical person)

CHAPTER I

Org!"#$"%! !& '(r")&"*$"%! %+ $- (r-(

SE+%'$# >) +reation of, and *erger of all &orestry Agencies into, the =ureau of &orest (evelopment) 2 &or thepurpose of implementing the provisions of this +ode, the =ureau of &orestry, the Reforestation Administration, theSouthern +ebu Reforestation (evelopment ro"ect, and the ar3s and Wildlife $ffice, including applicableappropriations, records, e8uipment, property and such personnel as may be necessary, are hereby merged into asingle agency to be 3non as the =ureau of &orest (evelopment, hereinafter referred to as the =ureau)

SE+%'$# ?) @urisdiction of =ureau) 2 %he =ureau shall have "urisdiction and authority over all forest land, grazinglands, and all forest reservations including atershed reservations presently administered by other governmentagencies or instrumentalities)

't 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 ta3ing or use of forestproducts therefrom or the occupancy or use thereof; the implementation of multiple use and sustained yieldmanagement in forest lands; the protection, development and preservation of national par3s, marine par3s, gamerefuges and ildlife; the implementation of measures and programs to prevent 3aingin and managed occupancy offorest and grazing lands; in collaboration ith other bureaus, the effective, efficient and economic classification oflands of the public domain; and the enforcement of forestry, reforestation, par3s, game and ildlife las, rules, andregulations)

%he =ureau shall regulate the establishment and operation of samills, veneer and plyood mills and other oodprocessing plants and conduct studies of domestic and orld mar3ets of forest products)

SE+%'$# ) (irector and Assistant (irector and their Bualifications) 2 %he =ureau shall be headed by a (irector, ho shall be assisted by one or more Assistant (irectors) %he (irector and Assistant (irectors shall be appointed bythe resident)

#o person shall be appointed (irector or Assistant (irector of the =ureau unless he is a natural born citizen of thehilippines, at least -C years of age, a holder of at least a =achelorDs (egree in &orestry or its e8uivalent, and aregistered forester)

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SE+%'$# ) Supervision and +ontrol) 2 %he =ureau shall be directly under the control and supervision of theSecretary of the (epartment of #atural Resources, hereinafter referred to as the (epartment Head)

SE+%'$# .) Revie) 2 All actions and decisions of the (irector are sub"ect to revie, motu propio or upon appeal ofany person aggrieved thereby, by the (epartment Head hose decision shall be final and executory after the lapse ofthirty F-C7 days from receipt by the aggrieved party of said decision, unless appealed to the resident in accordance

 ith the

(ivisions Sections

lanning and Evaluation(ivision

rogram lanning;erformance Evaluation;&orest Economics;*anagement Analysis(ata and 'nformation)

Administrative (ivision ersonnel;=udget;Accounting;

'nformation;:eneral Services)

9egal (ivision

Reforestation andAfforestation (ivision

+ooperative lanting;lanting Stoc3 roduction;lantation *anagement)

%imber *anagement (ivision &orest Surveys, (ata and*apping;Sulviculture;%imber 'nventory andhoto!'nterpretation;

%imber *anagement lans;9and +lassification)

Gtilization (ivision %imber $perations;9and Gses;Gtilization)

&orest rotection and'nfrastructure

&orest rotection;&orest $ccupancy*anagement;Watershed *anagement;'nfrastructure)

ar3s, Range and Wildlife(ivision

ar3s *anagement;Recreation *anagement;Wildlife *anagement;Range *anagement)

Security and 'ntelligence(ivision

&orest (evelopment%raining +enter

%echnical %raining;#on!%echnical %raining)

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Executive $rder #o) 1/, series of 1/) %he (ecision of the (epartment Head may not be revieed by the courtsexcept through a special civil action for certiorari or prohibition)

SE+%'$# /) Rules and Regulations) 2 %he (epartment Head, upon the recommendation of the (irector of &orest(evelopment, shall promulgate the rules and regulations necessary to implement effectively the provisions of this+ode)

SE+%'$# 1C) +reation of &unctional (ivisions, and Regional and (istrict $ffices) 2 All positions in the mergedagencies are considered vacant) resent occupants may be appointed in accordance ith a staffing pattern or planof organization to be prepared by the (irector and approved by the (epartment Head) Any appointee ho fails toreport for duty in accordance ith the approved plan ithin thirty F-C7 days upon receipt of notification shall bedeemed to have declined the appointment, in hich case the position may be filed by any other 8ualified applicant)

&or the efficient and effective implementation of the program of the =ureau, the folloing divisions and sections arehereby created, to it0

%he (epartment Head may, upon recommendation of the (irector, reorganize or create such other divisions, sectionsof units as may be deemed necessary and to appoint the personnel thereto0 rovided, %hat an employee appointedor designated as officer!in!charge of a nely created division, section or unit, or to an existing vacant position ith ahigher salary, shall receive, from the date of such appointment or designation until he is replaced or reverted to hisoriginal position, the salary corresponding to the position temporarily held by him)

%here shall be created at least eleven regional offices) 'n each region, there shall be as many forest districts as maybe necessary, in accordance ith the extent of forest area, established or3loads, need for forest protection, fireprevention and other factors, the provisions of any la to the contrary notithstanding0 rovided, %hat the boundariesof such districts shall follo, henever possible, natural boundaries of atersheds under the river!basin concept ofmanagement)

SE+%'$# 11) *anpoer and olicy (evelopment) 2 %he =ureau shall establish and operate an in!service training

center for the purpose of upgrading and training its personnel and ne employees)

%he =ureau shall also set aside ade8uate funds to enable personnel to obtain specialized education and training inlocal or foreign colleges or institutions)

%here shall be established in the +ollege of &orestry, Gniversity of the hilippines at 9os =aos, in coordination iththe (epartment of #atural Resources and the ood industry, a &orestry (evelopment +enter hich shall conductbasic policy researches in forestry and develop or help develop an effective machinery for forestry policy formulationand implementation) %o help defray the cost of operating said +enter, it is authorized to receive assistance from the

 ood industry and other sources)

SE+%'$# 16) erformance Evaluation) 2 %he =ureau shall devise a system, to be approved by the (epartment

Head, to evaluate the performance of its employees) %he system shall measure accomplishment in 8uantity and8uality of performance as related to the funded program of or3 assigned to each organizational unit) %here shall beincluded a system of periodic inspection of district offices by the regional offices and the regional and district officesby the +entral $ffice in both functional fields and in the overall assessment of ho each administrative unit hasimplemented the las, regulations, policies, programs, and practices relevant to such unit) %he evaluation systemshall provide the information necessary for annual progress reports and determination of employee training, civilservice aards and transfer or disciplinary action)

CHAPTER II

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C/))"+"*$"%! !& S(r-1

SE+%'$# 1-) System of 9and +lassification) 2 %he (epartment Head shall study, devise, determine and prescribethe criteria, guidelines and methods for the proper and accurate classification and survey of all lands of the publicdomain into agricultural, industrial or commercial, residential, resettlement, mineral, timber or forest, and grazinglands, and into such other classes as no or may hereafter be provided by la, rules and regulations)

'n the meantime, the (epartment Head shall simplify through inter!bureau action the present system of determining hich of the unclassified lands of the public domain are needed for forest purposes and declare them as permanentforest to form part of the forest reserves) He shall declare those classified and determined not to be needed for forestpurposes as alienable and disposable lands, the administrative "urisdiction and management of hich shall betransferred to the =ureau of 9ands0 rovided, %hat mangrove and other samps not needed for shore protection andsuitable for fishpond purposes shall be released to, and be placed under the administrative "urisdiction andmanagement of, the =ureau of &isheries and A8uatic Resources) %hose still to be classified under the resentsystem shall continue to remain as part of the public forest)

SE+%'$# 1>) Existing asture 9eases in &orest 9ands) 2 &orest lands hich are not reservations and hich are thesub"ect of pasture leases shall be classified as grazing lands and areas covered by pasture permits shall remainforest lands until otherise classified under the criteria, guidelines and methods of classification to be prescribed bythe (epartment Head0 rovided, %hat the administration, management and disposition of grazing lands shall remainunder the =ureau)

SE+%'$# 1?) %opography) 2 #o land of the public domain eighteen per cent F1.I7 in slope or over shall be classifiedas alienable and disposable, nor any forest land fifty per cent F?CI7 in slope or over, as grazing land)

9ands eighteen per cent F1.I7 in slope or over hich have already been declared as alienable and disposable shallbe reverted to the classification of forest lands by the (epartment Head, to form part of the forest reserves, unlessthey are already covered by existing titles or approved public land application, or actually occupied openly,continuously, adversely and publicly for a period of not less than thirty F-C7 years as of the effectivity of this +ode,

 here the occupant is 8ualified for a free patent under the ublic 9and Act0 rovided, %hat said lands, hich are notyet part of a ell!established communities, shall be 3ept in a vegetative condition sufficient to prevent erosion andadverse effects on the lolands and streams0 rovided, &urther, %hat hen public interest so re8uires, steps shall beta3en to expropriate, cancel defective titles, re"ect public land application, or e"ect occupants thereof)

SE+%'$# 1) Areas #eeded for &orest urposes) 2 %he folloing lands, even if they are belo eighteen per centF1.I7 in slope, are needed for forest purposes, and may not, therefore, be classified as alienable and disposableland, to it0

17 Areas less than 6?C hectares hich are far from, or are not contiguous ith, any certified alienable and disposableland;

67 'solated patches of forest of at least five F?7 hectares ith roc3y terrain, or hich protect a spring for communaluse;

-7 Areas hich have already been reforested;

>7 Areas ithin forest concessions hich are timbered or have good residual stoc3ing to support an existing, orapproved to be established, ood processing plant;

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?7 Ridge tops and plateaus regardless of size found ithin, or surrounded holly or partly by, forest lands hereheadaters emanate;

7 Appropriately located road!rights!or!ay;

7 %enty!meter strips of land along the edge of the normal high aterline of rivers and streams ith channels of atleast five F?7 meters ide;

.7 Strips of mangrove or samplands at least tenty F6C7 meters ide, along shorelines facing oceans, la3es, andother bodies of ater, and strips of land at least tenty F6C7 meters ide facing la3es;

/7 Areas needed for other purposes, such as national par3s, national historical sites, game refuges and ildlifesanctuaries, forest station sites, and others of public interest; and

1C7 Areas previously proclaimed by the resident as forest reserves, national par3s, game refuge, bird sanctuaries,national shrines, national historic sites0

rovided, %hat in case an area falling under any of the foregoing categories shall have been titled in favor of anyperson, steps shall be ta3en, if public interest so re8uires, to have said title cancelled or amended, or the titled areaexpropriated)

SE+%'$# 1) Establishment of boundaries of forest lands) 2 All boundaries beteen permanent forests and alienableor disposable lands shall be clearly mar3ed and maintained on the ground, ith infrastructure or roads, or concretemonuments at intervals of not more than five hundred F?CC7 meters in accordance ith established procedures andstandards, or any other visible and practicable signs to insure protection of the forest)

'n all cases of boundary conflicts, reference shall be made to the hilippine +oast and :eodetic Survey %opo map)

SE+%'$# 1.) Reservations in &orest 9ands and $ff!Shore Areas) 2 %he resident of the hilippines may establish

 ithin any lands of the public domain, forest reserve and forest reservation for the national par3 system, forpreservation as critical atersheds, or for any other purpose, and modify boundaries of existing ones) %he(epartment Head may reserve and establish any portion of the public forest or forest reserve as site or experimentalforest for use of the &orest Research 'nstitute)

When public interest so re8uires, any off!shore area needed for the preservation and protection of its educational,scientific, historical, ecological and recreational values including the marine life found therein, shall be established asmarine par3s)

CHAPTER III

2$"/"#$"%! !& M!g--!$

SE+%'$# 1/) *ultiple Gse) 2 %he numerous beneficial uses of the timber, land, soil, ater, ildlife, grass andrecreation or aesthetic value of forest lands and grazing lands shall be evaluated and eighted before alloing theirutilization, exploitation, occupation or possession thereof, or the conduct of any activity therein)

$nly the utilization, exploitation, occupation or possession of any forest lands and grazing lands, or any activitytherein, involving one or more of its resources, hich ill produce the optimum benefits to the development and

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progress of the country and the public elfare, ithout impairment or ith the least in"ury to its resources, shall bealloed)

All forest reservations may be open to development or uses not inconsistent ith the principal ob"ectives of thereservation) rovided, %hat critical atersheds, national par3s and established experimental forests shall not besub"ect to commercial logging or grazing operations, and game refuges, bird sanctuaries, marine and seashore par3s

shall not be sub"ect to hunting or fishing and other activities of commercial nature)

SE+%'$# 6C) 9icense Agreement, 9icense, 9ease or ermit) 2 #o person may utilize, exploit, occupy, possess orconduct any activity ithin any forest and grazing land, or establish, install, add and operate any ood or forestproducts processing plant, unless he had been authorized to do under a license agreement, license, lease or permit0rovided, %hat hen the national interest so re8uires, the resident may amend, modify, replace, or rescind anycontract, concession, permit, license, or any other form of privilege granted herein0 rovided, further, %hat upon therecommendation of the appropriate government agency, the resident may, pending the conduct of appropriatehearing, order the summary suspension of any such contract, concession, license, permit, lease or privilege grantedunder this decree for violation of any of the condition therein such as those pertaining but not limited to reforestation,pollution, environmental protection, export limitation or such condition as are prescribed by the *inister of #aturalResources in daily issued regulations)

SE+%'$# 61) Sustained Jield) 2 All measures shall be ta3en to achieve an approximate balance beteen grothand harvest or use of forest products in forest lands)

A. TIMER

SE+%'$# 66) Silvicultural and Harvesting System) 2 'n any logging operation in production forests ithin forestlands, the proper silvicultural and harvesting system that ill promote optimum sustained yield shall be practiced, to

 it0

a7 &or dipterocarp forest, selective logging ith enrichment or supplemental planting hen necessary)

b7 &or pine mangrove forest, the seed tree system ith planting hen necessary) rovided, %hat sub"ect to theapproval of the (epartment Head, upon recommendation of the (irector, any silvicultural and harvesting system thatmay be found suitable as a result of research may be adopted0 rovided, further, %hat no authorized person shall cut,harvest or gather any timber, pulpood, or other products of logging unless he plants three times of the same varietyfor every tree cut or destroyed by such logging or removal of logs) Any violation of this provision shall be sufficientground for the immediate cancellation of the license, agreement, lease or permit)

SE+%'$# 6-) %imber 'nventory) 2 %he =ureau shall conduct a program of progressive inventories of the harvestabletimber and young trees in all forest lands, hether covered by any license agreement, license, lease or permit, or not,until a one hundred per cent F1CCI7 timber inventory thereon has been achieved)

SE+%'$# 6>) Re8uired 'nventory rior to %imber Gtilization in &orest 9ands) ! #o harvest of timber in any forest landshall be alloed unless it has been the sub"ect of at least a five per cent F?I7 timber inventory, or any statisticallysound timber estimate, made not earlier than five F?7 years prior to the issuance of a license agreement or licensealloing such utilization)

SE+%'$# 6?) +utting +ycle) 2 %he =ureau shall apply scientific cutting cycle and rotation in all forest lands, givingparticular consideration to the age, volume and 3ind of healthy residual trees hich may be left undisturbed andundamaged for future harvest and forest cover indipterocarp area, and seed trees and reproduction in pine area)

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SE+%'$# 6) Annual Alloable +ut) 2 %he annual alloable cut or harvest of any particular forest land under alicense agreement, license, lease or permit shall be determined on the basis of the size of the area, the volume and3ind of harvestable timber or, forest products and healthy residuals, seed trees and reproduction found therein, andthe established cutting cycle and rotation thereof)

#o person shall cut, harvest and gather any particular timber, pulpood, fireood and other forest products unless he

has been authorized under Section 6C hereof to do so and the particular annual alloable cut thereof has beengranted)

'n the public interest and in accordance ith Section 61 hereof, the (epartment Head shall revie all existing annualalloable cut and thereupon shall prescribe the level of annual alloable cut for the common dipterocarp timber,softood and hardood timber cutting of hich is not prohibited, pulpood, fireood and other forest products usingas bases the factors as ell as the updated aerial photographs and field inventories of such forest land0 rovided,%hat pending the completion of such revie and appropriate amendment of the annual alloable cut in existinglicense agreement, license, lease or permit, existing annual alloable cut that not sufficiently supports ood or forestproducts processing plant or that ill support duly approved processing expansion program or ne processingpro"ects may be alloed to continue ithout change0 rovided, further, %hat no additional or ad"ustment in annualalloable cut shall be made until after such a revie has been made)

SE+%'$# 6) (uration of 9icense Agreement or 9icense to Harvest %imber in &orest 9ands) 2 %he duration of theprivilege to harvest timber in any particular forest land under a license agreement or license shall be fixed anddetermined in accordance ith the annual alloable cut therein, the established cutting cycle thereof, the yieldcapacity of harvestable timber, and the capacity of healthy residuals for a second groth)

%he privilege shall automatically terminate, even before the expiration of the license agreement of license, themoment the harvestable timber have been utilized ithout leaving any logged!over area capable of commercialutilization)

%he maximum period of any privilege to harvest timber is tenty!five F6?7 years, reneable for a period, notexceeding tenty!five F6?7 years, necessary to utilize all the remaining commercial 8uantity or harvestable timbereither from the unlogged or logged!over area)

't shall be a condition for the continued privilege to harvest timber under any license or license agreement that thelicensee shall reforest all the areas hich shall be determined by the =ureau)

SE+%'$# 6.) Size of &orest +oncessions) 2 &orest lands shall not be held in perpetuity)

%he size of the forest lands hich may be the sub"ect of timber utilization shall be limited to that hich a person mayeffectively utilize and develop for a period of fifty F?C7 years, considering the cutting cycle, the past performance ofthe applicant and his capacity not only to utilize but, more importantly, to protect and manage the hole area, and there8uirements of processing plants existing or to be installed in the region)

&orest concessions hich had been the sub"ect of consolidations shall be revieed and re!evaluated for the effectiveimplementation of protection, reforestation and management thereof under the multiple use and sustained yieldconcepts, and for the processing locally of the timber resources therefrom)

. WOOD4PROCESSING

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67 %imber licensees ith processing pro"ects duly approved by the (epartment Head or

-7 %imber licensees ho have ac8uired viable processing machinery and e8uipment hich ill be installed and illbecome operational in accordance ith the schedule approved by the (epartment Head; and

>7 %imber licensees hose log expert support or are in line ith, government!approved trade agreement0

rovided, further, %hat no person shall be given a permit to export if he has not complied ith the re8uirements onreplanting and reforestation) rovided, %hat the resident may, upon recommendation of the (epartment Head,

 henever the export price of logs falls to unreasonably lo level or henever public interest so re8uires, cancel logexportation or reduce the maximum alloable proportion for log exports)

All timber licensees ho have no processing plant and ho have no plan to establish the same shall, "ointly ith ood processors, adopt a scheme, or schemes for the processing of the log production in accordance ith Section-C hereof)

C. REFORESTATION

SE+%'$# --) 9ands to be Reforested and) 'ndustrial %ree lantations, %ree &arms and Agro!forestry &arms) 2 A lease for a period of fifty F?C7years for the establishment of an industrial tree plantations, tree farm or agro!forestry farm, may be granted by the(epartment Head, upon recommendation of the (irector, to any person 8ualified to develop and exploit naturalresources, over timber or forest lands of the public domain categorized in Section -- F17 hereof except those underparagraphs Fd7 and Fg7 ith a minimum area of one hundred F1CC7 hectares for industrial tree plantations and agro!forestry farms and ten F1C7 hectares for tree farms0 rovided, %hat the size of the area that may be granted under

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each category shall, in each case, depend upon the capability of the lessee to develop or convert the area intoproductive condition ithin the term of the lease)

%he lease may be granted under such terms and conditions as the (epartment Head may prescribe, ta3ing intoaccount, among others, the ra material needs of forest based and other industries and the maintenance of a

 holesome ecological balance)

%rees and other products raised ithin the industrial tree plantation, tree farm or agro!forestry farm belong to thelessee ho shall have the right to sell, contract, convey, or dispose of said planted trees and other products in anymanner he sees fit, in accordance ith existing las, rules and regulations)

Reforestation pro"ects of the :overnment, or portion thereof, hich, upon field evaluation, are found to be moresuitable for, or can better be developed as industrial tree plantations, tree farms or agro!forestry farms, in terms ofbenefits to the :overnment and the general surrounding area, may be the sub"ect of a lease under this section)

SE+%'$# -?) riority) 2 $ver any suitable area covered by a timber license agreement or permit, the priority toestablish industrial tree plantation, tree farms or agro!forestry farm shall be given to the holder thereof after the=ureau had determined the suitability of such and has set aside the same for the purpose)

%he priority herein granted must, hoever, be availed of ithin a reasonable period otherise the area shall bedeclared open to any 8ualified person and conse8uently segregated from the licenseeDs or permitteeDs area)

riority shall also be given to the establishment of communal industries tree plantations by barangays, municipalitiesor cities and provinces)

SE+%'$# -) 'ncentives) 2 %o encourage 8ualified persons to engage in industrial tree plantation and

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e7 A lessee shall not be sub"ect to any obligation prescribed in, or arising out of, the provisions of the #ational 'nternalRevenue +ode on ithholding of tax at source upon interest paid on borroing incurred for development andoperation of the industrial tree plantation, tree farms, or agro!forestry farm;

f7 Except hen public interest demands, the boundaries of an area covered by an industrial tree plantation, tree farm,or agro!forestry farm lease, once establish on the ground, shall not be altered or modified;

g7 Amounts expended by a lessee in the development and operation of an industrial tree plantation, tree farm, oragro!forestry farm prior to the time hen the production state is reached, may, at the option of the lessee, beregarded as ordinary and necessary business or as capital expenditures;

h7 %he =oard of 'nvestments shall, notithstanding its nationality re8uirement on pro"ects involving natural resources,classify industrial tree plantations, tree farms and agro!forestry farms as pioneer areas of investment under its annualpriority plan, to be governed by the rules and regulations of said =oard;

'n addition to the incentives under this section, private landoners ho engage in tree farming on areas fifty hectaresor belo by planting their lands ith 'pil!'pil and other fast!groing trees shall be exempt from the inventoryre8uirement and other re8uirements before harvest as provided in this (ecree for lessees of forest lands of the publicdomain0 rovided, %hat the transport of trees cut shall be accompanied by the corresponding certificate of origin dulyissued by the authorized forest officer;

i7 Approved industrial tree plantations, tree farms, and agro!forestry farms shall be given priority in securing creditassistance from the government and government!supported financing institutions hich shall set aside ade8uatefunds for lending to the lessee and

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o7 &ree technical advice from government foresters and farm technicians)

%he (epartment Head may provide other incentives in addition to those hereinabove granted to promote industrialtree plantations, tree farms and agro!forestry farms in special areas such as, but not limited to, those here there areno roads or here roads are inade8uate, or areas ith rough topography and remote areas far from processingplants)

SE+%'$# -) rotection of all Resources) 2 All measures shall be ta3en to protect the forest resources fromdestruction, impairment and depletion)

SE+%'$# -.) +ontrol of +oncession Area) 2 'n order to achieve the effective protection of the forest lands and theresources thereof from illegal entry, unlaful occupation, 3aingin, fire, insect infestation, theft, and other forms offorest destruction, the utilization of timber therein shall not be alloed except through license agreements under

 hich the holders thereof shall have the exclusive privilege to cut all the alloable harvestable timber in theirrespective concessions, and the additional right of occupation, possession, and control over the same, to theexclusive of all others, except the government, but ith the corresponding obligation to adopt all the protection andconservation measures to ensure the continuity of the productive condition of said areas, conformably ith multipleuse and sustained yield management)

'f the holder of a license agreement over a forest area expressly or impliedly aives the privilege to utilize anysoftood, hardood or mangrove species therein, a license may be issued to another person for the harvest thereof

 ithout any right of possession or occupation over the areas here they are found, but he shall, li3eise, adoptprotection and conservation measures consistent ith those adopted by the license agreement holder in the saidareas)

SE+%'$# -/) Regulation of %imber Gtilization in all $ther +lasses of 9ands and of Wood!rocessing lants) 2 %heutilization of timber in alienable and disposable lands, private lands, civil reservations, and all lands containingstanding or felled timber, including those under the "urisdiction of other government agencies, and the establishmentand operation of sa!mills and other ood!processing plants, shall be regulated in order to prevent them from beingused as shelters for excessive and unauthorized harvests in forest lands, and shall not therefore be alloed exceptthrough a license agreement, license, lease or permit)

SE+%'$# >C) %imber 'nventory in $ther 9ands +ontaining Standing or &elled %imber) 2 %he =ureau shall conduct aone hundred per cent F1CCI7 timber inventory in alienable and disposable lands and civil reservations immediatelyupon classification or reservation thereof)

#o harvest of standing or felled timber in alienable and disposable lands, private lands, civil reservations, and allother lands, including those under the "urisdiction of other government agencies, shall be alloed unless a onehundred per cent F1CCI7 timber inventory has been conducted thereon)

SE+%'$# >1) Sorn %imber 'nventory Reports) 2 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 besubscribed and sorn to by all the forest officers ho conducted the same)

SE+%'$# >6) articipation in the (evelopment of Alienable and (isposable 9ands and +ivil Reservations) 2 %heprivilege to harvest timber in alienable and disposable lands and civil reservations shall be given to those ho canbest help in the delineation and development of such areas in accordance ith the management plan of theappropriate government agency exercising "urisdiction over the same)

%he extent of participation shall be based on the amount of timber hich may be harvested therefrom)

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SE+%'$# >-) Samplands and *angrove &orests) 2 Strips of mangrove forest bordering numerous islands hichprotect the shoreline, the shoreline roads, and even coastal communities from the destructive force of the sea duringhigh inds and typhoons, shall be maintained and shall not be alienated) Such strips must be 3ept free from artificialobstruction so that flood ater ill flo unimpeded to the sea to avoid flooding or inundation of cultivated areas in theupstream)

All mangrove samps set aside for coast!protection purposes shall not be sub"ect to clear!cutting operation)

*angrove and other samps released to the =ureau of &isheries and A8uatic Resources for fishpond purposes hich are not utilized, or hich have been abandoned for five F?7 years from the date of such release shall revert tothe category of forest land)

SE+%'$# >>) Kisitorial oer) 2 %he (epartment Head may, by himself or thru the (irector or any 8ualified personduly designated by the (epartment Head, investigate, inspect and examine records, boo3s and other documentsrelating to the operation of any holder of a license agreement, license, lease, or permit, and its subsidiary or affiliatedcompanies, to determine compliance ith the terms and conditions thereof, this +ode and pertinent las, policies,rules and regulations)

SE+%'$# >?) Authority of &orest $fficers) 2 When in the performance of their official duties, forest officers, or othergovernment officials or employees duly authorized by the (epartment Head or (irector, shall have free entry intoareas covered by a license agreement, license, lease or permit)

&orest officers are authorized to administer oath and ta3e ac3noledgment in official matters connected ith thefunctions of their office, and to ta3e testimony in official investigations conducted under the authority of this +ode andthe implementing rules and regulations)

SE+%'$# >) Scaling Stations) 2 'n collaboration ith appropriate government agencies, the =ureau shall establishcontrol or scaling stations at suitably located outlets of timber and other forest products to insure that they erelegally cut or harvested)

SE+%'$# >) *ining $perations) 2 *ining operations in forest lands shall be regulated and conducted ith dueregard to protection, development and utilization of other surface resources)

9ocation, prospecting, exploration, utilization or exploitation of mineral resources in forest reservations shall begoverned by *ining las, rules and regulations) #o location, prospecting, exploration, utilization, or exploitation ofmineral resources inside forest concessions shall be alloed unless proper notice has been served upon thelicensees thereof and the prior approval of the (irector, secured)

*ine tailings and other pollutants affecting the health and safety of the people, ater, fish, vegetation, animal life andother surface resources, shall be filtered in silt traps or other filtration devices and only clean exhausts and li8uidsshall be released therefrom)

Surface!mined areas shall be restored to as near its former natural configuration or as approved by the (irector priorto its abandonment by the mining concern)

SE+%'$# >.) *ineral Reservations) 2 *ineral reservations hich are not the sub"ect of mining operations or heremining operations have been suspended for more than five F?7 years shall be placed under forest management bythe =ureau)

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*ineral reservations here mining operations have been terminated due to the exhaustion of its minerals shall revertto the category of forest land, unless otherise reserved for other purposes)

SE+%'$# >/) Roads and $ther 'nfrastructure) 2 Roads and other infrastructure in forest lands shall be constructed ith the least impairment to the resource values thereof)

:overnment agencies underta3ing the construction of roads, bridges, communications, and other infrastructure andinstallations inside forest lands, shall coordinate ith the =ureau, especially if it ill involve the utilization ordestruction of timber and

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SE+%'$# ?6) +ensus of aingineros, S8uatters, +ultural *inorities and other $ccupants and Residents in &orest9ands) 2 Henceforth, no person shall enter into forest lands and cultivate the same ithout lease or permit)

A complete census of 3aingineros, s8uatters, cultural minorities and other occupants and residents in forest lands ith or ithout authority or permits from the government, shoing the extent of their respective occupation andresulting damage, or impairment of forest resources, shall be conducted)

%he =ureau may call upon other agencies of the government and holders of license agreement, license, lease andpermits over forest lands to participate in the census)

SE+%'$# ?-) +riminal rosecution) 2 aingineros, s8uatters, cultural minorities and other occupants ho enteredinto forest lands and grazing lands before *ay 1/, 1/?, ithout permit or authority, shall not be prosecuted0rovided, %hat they do not increase their clearings0 rovided, further, %hat they underta3e, ithin to F67 months fromnotice thereof, the activities to be imposed upon them by the =ureau in accordance ith management plan calculatedto conserve and protect forest resources in the area0 rovided, finally, %hat 3aingineros, s8uatters, cultural minoritiesand other occupants shall henever the best land use of the area so demands as determined by the (irector, bee"ected and relocated to the nearest accessible government resettlement area)

E. SPECIAL 2SES

SE+%'$# ?>) asture in &orest 9ands) 2 #o forest land ?CI in slope or over may be utilized for pasture purposes)

&orest lands hich are being utilized for pasture shall be maintained ith sufficient grass cover to protect soil, aterand other forest resources)

'f grass cover is insufficient, the same shall be supplemented ith trees or such vegetative cover as may be deemednecessary)

%he size of forest lands that may be alloed for pasture and other special uses shall be determined by rules and

regulations, any provision of la to the contrary notithstanding)

SE+%'$# ??) Wildlife) 2 All measures shall be adopted to conserve ildlife) %he (irector shall regulate the hunting of ildlife in forest lands in order to maintain an ecological balance of flora and fauna)

SE+%'$# ?) Recreation) 2 %he =ureau shall, in the preparation of multiple!use management plans, identify andprovide for the protection of scenic areas in all forest lands hich are potentially valuable for recreation and tourism,and plan for the development and protection of such areas to attract visitors thereto and meet increasing demandstherefor)

%he construction and operation of necessary facilities to accommodate outdoor recreation shall be done by the=ureau ith the use of funds derived from rentals and fees for the operation and use of recreational facilities by

private persons or operators, in addition to hatever funds may be appropriated for such purposes)

SE+%'$# ?) $ther Special Gses of &orest 9ands) 2 &orest lands may be leased for a period not exceeding tenty!five F6?7 years, reneable upon the expiration thereof for a similar period, or held under permit, for the establishmentof samills, lumber yards, timber depots, logging camps, rights!of!ay, or for the construction of sanatoria, bathingestablishments, camps, salt or3s, or other beneficial purposes hich do not in any ay impair the forest resourcestherein)

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F. 2ALIFICATIONS

SE+%'$# ?.) (iffusion of =enefits) 2 %he privilege to utilize, exploit, occupy, or possess forest lands, or to conductany activity therein, or to establish and operate ood!processing plants, shall be diffused to as many 8ualified anddeserving applicants as possible)

SE+%'$# ?/) +itizenship) 2 'n the evaluation of applications of corporations, increased &ilipino e8uity andparticipation beyond the CI constitutional limitation shall be encouraged) All other factors being e8ual, the applicant

 ith more &ilipino e8uity and participation shall be preferred)

SE+%'$# C) &inancial and %echnical +apability) 2 #o license agreement, license, lease or permit over forest landsshall be issued to an applicant unless he proves satisfactorily that he has the financial resources and technicalcapability not only to minimize utilization, but also to practice forest protection, conservation and developmentmeasures to insure the perpetuation of said forest in productive condition)

SE+%'$# 1) %ransfers) 2 Gnless authorized by the (epartment Head, no licensee, lessee, or permittee maytransfer, exchange, sell or convey his license agreement, license, lease or permit, or any of his rights or intereststherein, or any of his assets used in connection thereith)

%he licensee, lessee or permittee shall be alloed to transfer or convey his license agreement, license, lease orpermit only if the license, lease or permit has been in existence for at least three F-7 years; the licensee, lessee orpermittee has not violated any forestry la, rule or regulation and has been faithfully complying ith the terms andconditions of the license agreement, license, lease or permit0 the transferee has all the 8ualifications and none of thedis8ualifications to hold a license agreement, license, lease or permit; there is no evidence that such transfer orconveyance is being made for purposes of speculation; and the transferee shall assume all the obligations of thetransferor)

As used in this section, the term 4assets5 shall not include cattle and other livestoc3s or animals raised in grazinglands and forest lands, and planted trees and other products raised in industrial tree plantations, tree farms and agro!

forestry farms)

SE+%'$# 6) Service +ontracts) 2 %he (epartment Head, may in the national interest, allo forest productslicensees, lessees, or permittees to enter into service contracts for financial, technical, management, or other formsof assistance, in consideration of a fee, ith 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 arehereby recognized as such)

SE+%'$# -) E8uity Sharing) 2 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 ood!processing plant, shall ithin one F17 year after the effectivity of this amendatory (ecree, formulate and submit to the

(epartment Head for approval a plan for the sale of at least ten percent F1CI7 of its subscribed capital stoc3 in favorof employees, laborers and the general public)

%he plan shall be so implemented that the sale of the shares of stoc3s shall be effected by the corporation not laterthan the sixth year of its operation, or the first year of effectivity of the amendatory (ecree, if the corporation hasbeen in operation for more than five F?7 years prior to such effectivity)

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#o corporation shall be issued any license agreement, license, lease or permit after the effectivity of this amendatory(ecree, unless it submits such a plan and the same is approved for implementation ithin the sixth year of itsoperation)

%he (epartment Head shall promulgate the necessary rules and regulations to carry out the provisions of thissection, particularly on the determination of the manner of payment, factors affecting the selling price, establishment

of priorities in the purchase of the shares of stoc3, and the preparation of a fund to ensure the financial capability ofthe deserving employees and laborers) %he industries concerned shall extend all assistance in the promulgation ofpolicies on the matter, such as the submission of all data and information relative to their operation, personnelmanagement and asset evaluation)

G. REG2LATORY FEES

SE+%'$# >) +harges, &ees and =onds) 2 %he (epartment Head, upon recommendation of the (irector, shall fix theamount of charges, rentals, bonds and fees for the different 3inds of utilization, exploitation, occupation, possession,or activity inside forest lands, the filing and processing of applications therefor, the issuance and reneal of licenseagreements, licenses, leases and permits, and for other services; rovided, %hat all fees and charges presentlybeing collected under existing las and regulations shall continue to be imposed and collected until otheriseprovided; rovided, &urther, %hat timber ta3en and removed from private lands for commercial purposes shall beexempt from the payment of forest charges)

SE+%'$# ?) Authority of (epartment Head to 'mpose $ther &ees) 2 'n addition to the fees and charges imposedunder existing las, rules and regulations, the (epartment Head is hereby authorized, upon recommendation of the(irector and in consultation ith representatives of the industries affected, to impose other fees for forest protection,management, reforestation, and development, the proceeds of hich shall accrue into a special deposit of the=ureau as its revolving fund for the aforementioned purposes)

SE+%'$# ) +ollection and (isbursement) 2 %he collection of the charges and fees above!mentioned shall be theresponsibility of the (irector or his authorized representative) %he (irector shall remit his monthly collection of feesand charges mentioned in Section > to the %reasurer of the hilippines ithin the first ten F1C7 days of thesucceeding month; rovided, %hat the proceeds of the collection of the fees imposed under Section ? and thespecial deposit heretofore re8uired of licensees shall be constituted into a revolving fund for such purposes and bedeposited in the hilippine #ational =an3, as a special deposit of the =ureau) %he =udget +ommissioner and the#ational %reasurer shall effect the 8uarterly releases out of the collection accruing to the general fund upon re8uestof the (irector on the basis of a consolidated annual budget of a or3 program approved by the (epartment Headand the resident)

'n the case of the special deposit revolving fund, ithdraals therefrom shall be effected by the (epartment Head onthe basis of a consolidated annual budget prepared by the (irector of a or3 program for the specific purposesmentioned in Section ?)

SE+%'$# ) =asis of Assessment) 2 %ree measurement shall be the basis for assessing government charges andother fees on timber cut and removed from forest lands, alienable or disposable lands, and the civil reservations;rovided, %hat until such time as the mechanics of tree measurement shall have been developed and promulgated inrules and regulations, the present scaling method provided for in the #ational 'nternal Revenue +ode shall be used)

%he (irector may, ith the approval of the (epartment Head, prescribe a ne method of assessment of forestproducts and collection of charges thereon based upon the result of production cost and mar3et studies underta3enby the =ureau; rovided, %hat such charges shall not be loer than those no imposed)

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H. 2TILI6ATION AND MANAGEMENT

SE+%'$# .) *easuring of &orest roducts and 'nvoicing and +ollection of +harges %hereon) 2 %he duties incidentto the measuring of forest products shall be discharged by the &orest *anagement =ureau under regulations of the(epartment of Environment and #atural Resources) %he invoicing and collection of the charges thereon shall bedone by the &orest *anagement =ureau under regulations approved by the Secretary of Environment and #atural

Resources)

SE+%'$# /) *ode of *easuring %imber) 2 except as hereinbelo provided, all timber shall be measured andmanifested in the round or s8uared, before being san or manufactured) %he volume of all round timber shall eascertained by multiplying the area of the small end by the length of the log, the diameter of the log to be measuredexclusive of the bar3; but if the end of a log is irregular the average diameter shall be used; and in order to ascertainthe volume of a log more than eight meters long, the diameter of the middle of said log, or the average of thediameters at both ends thereof shall be used as basis) 'f a log in the round cut under license, is measured andmanifested by forest officers, the (irector of the &orest *anagement =ureau in this respect, an appeal shall lie to his(epartment head, hose decision shall be final) %he manifest of timber cut by licensees operating samills in ornear the forest shall be attested by forest officers henever practicable)

%he volume of s8uared timber shall be ascertained by multiplying the average of the cross section measured by thelength, to hich forty per centum shall be added for loss in s8uaring0 rovided, hoever, that if s8uared timber cutunder license is measured and manifested by forest officers, the (irector of the &orest *anagement =ureau shallma3e due alloance for rot, cavities, or other natural defects; but from any decision of the (irector of the &orest*anagement =ureau in this respect, an appeal shall lie to his *inistry Head, hose decision shall be final) %heprivilege of manifesting timber after s8uaring shall hoever, be granted only to licensees ho have s8uared their logsin the forests ith the ax and intend to ta3e it to the mar3et in this form)

'f san or otherise manufactured timber is found hich has not been manifested in accordance ith the provisionshereof, the corresponding forest charges shall be assessed on tice the volume of the actual contents of such sanor manufactured timber)

SE+%'$# C) +harges on %imber +ut in &orestland) 2 %here shall be collected charges on each cubic meter oftimber cut in forestland, hether belonging to the first, second, third or fourth group, tenty!five percent F6?I7 of theactual &$= mar3et price based on species and grading0 rovided, hoever, %hat, in the case of pulpood andmatchood cut in forestland, forest charges on each cubic meter shall be ten percent F1CI7 of the actual &$=mar3et price)

SE+%'$# 1) +harges on &ireood, =ranches and $ther Recoverable Wood Wastes of %imber) 2 Except for allmangrove species hose cutting shall be banned, there shall be collected forest charges on each cubic meter offireood cut in forestland, branches and other recoverable ood astes of timber, such as timber ends, tops andstumps, hen used as ra materials for the manufacture of finished products, %en pesos F1C)CC7)

$nly third or fourth group ood can be ta3en for fireood) Hoever, if "ointly authorized by the Secretaries of boththe (epartments of Environment and #atural Resources, and Agriculture, first and second group oods may beremoved for fireood purposes from land hich is more valuable for agricultural than for forest purposes)

SE+%'$# 6) +harges on *inor &orest roducts) 2 All other forest products of forestland hich are not covered bythe preceding sections shall be exempt from any of all forest charges, except rattan, gums and resins, beesax,guta!percha, almaciga resin and bamboo hich shall be charged at ten percent F1CI7 of the actual &$= mar3etprice)

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SE+%'$# -) Effectivity and Application of &orest +harges and (etermination of *ar3et rice of &orest roducts) 2%he rates of forest charges provided for in Sections C, 1 and 6 hereof shall be effective upon approval of this Act)%he ne rates shall be published in the $fficial :azette or in to F67 nespapers of national circulation and shall alsobe posted in conspicuous places in the different (epartment of Environment and #atural Resources field offices)

%he actual &$= mar3et price of forest products shall be "ustly determined once a year by the Secretary of

Environment and #atural Resources0 rovided, %hat he shall cause the creation of a committee to be composed ofrepresentatives of the (epartment of Environment and #atural Resources, the #ational Economic and (evelopmentAuthority, the (epartment of %rade and 'ndustry, the =ureau of 'nternal Revenue and the ood and furniture industryand consumers sectors hich shall formulate the criteria and

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due thereon ithin tenty days after the end of each 8uarter to the revenue district officer, collection agent, or dulyauthorized treasurer of the municipality of the place here the timber concession is located or here the forestproducts ere gathered and removed)

'n case the taxes are not paid ithin the period prescribed above, there shall be added thereto a surcharge of tenty!five per centum, the increment to be a part of the tax and the entire unpaid amount shall be sub"ect to interest at the

rate of tenty per centum per annum) Where a false or fraudulent return is made, there shall be added to the taxes asurcharge of fifty per centum of their amount, and the entire unpaid amount shall be sub"ect to interest at the rate oftenty per centum per annum) %he amounts so added shall be collected in the same manner and as part of thetaxes, as the case may be)

CHAPTER IV

Cr""!/ O++-!)-) !& P-!/$"-)

SE+%'$# ) +utting, :athering and

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not less than to F67 nor more than four F>7 years and a fine e8ual to eight F.7 times the regular forest charges due onthe forest products destroyed, ithout pre"udice to the payment of the full cost of production of the occupied area asdetermined by the =ureau0 rovided, further, %hat the maximum of the penalty prescribed herein shall be imposedupon the offender ho repeats the same offense and ho commits the same offense and double the maximum of thepenalty upon the offender ho commits the same offense for the third time)

'n all cases the +ourt shall further order the eviction of the offender from the land and the forfeiture to the governmentof all improvements made and all vehicles, domestic animals and e8uipment of any 3ind used in the commission ofthe offense) 'f not suitable for use by the =ureau, said vehicles, domestic animals, e8uipment and improvementsshall be sold at public auction, the proceeds of hich shall accrue to the (evelopment &und of the =ureau)

'n case the offender is a government official or employee, he shall, in addition to the above penalties be deemedautomatically dismissed from office and permanently dis8ualified form holding any elective or appointive position)

SE+%'$# /) asturing 9ivestoc3) 2 'mprisonment for not less than six F7 months nor more than to F67 years and afine e8ual to ten F1C7 times the regular rentals due, in addition to the confiscation of such livestoc3 and allimprovement introduced in the area in favor of the government, shall be imposed upon any person, ho shall, ithoutauthority under a lease or permit, graze or cause to graze livestoc3 in forest lands, grazing lands and alienable anddisposable lands hich have not as yet been disposed of in accordance ith the ublic 9and Act; rovided, %hat incase the offender is a corporation, partnership or association, the officers and directors thereof shall be liable)

SE+%'$# .C) 'llegal $ccupation of #ational ar3s System and Recreation Areas and Kandalism 2 %herein) Anyperson ho, shall, ithout permit, occupy for any length of time any portion of the national par3s system or shall, inany manner cut, destroy, damage or remove timber or any species of vegetation or forest cover and other naturalresources found therein, or shall mutilate, deface or destroy ob"ects of natural beauty or of scenic value ithin areasin the national par3s system, shall be fined not less than five hundred F?CC)CC7 pesos or more than tenty thousandF6C,CCC)CC7 pesos exclusive of the value of the thing damaged) rovided, %hat if the area re8uires rehabilitation orrestoration as determined by the (irector, the offender shall also be re8uired to restore or compensate or therestoration of the damage0 rovided, further, %hat any person ho, ithout proper permit shall hurt, capture or 3ill any3ind of bird, fish or ild animal life ithin the area in the national par3s system shall be sub"ect to the same penalty)rovided, finally, %hat the +ourt shall order eviction of the offender from the land and the forfeiture in favor of thegovernment of all timber or any species or vegetation and other natural resources collected or removed, and anyconstruction or improvement made thereon by the offender) 'f the offender is an association or corporation, thepresident or manager shall be directly responsible and liable for the act of his employees or laborers)

'n the event that an official or employee of a city or municipal government is primarily responsible for detecting andconvicting the violator of the provisions of this section, fifty per centum F?CI7 of the fine collected shall accrue tosuch municipality or city for the development of local par3s)

SE+%'$# .1) (estruction of Wildlife Resources) 2 Any person violating the provisions of Section ?? of this +ode, orthe regulations promulgated thereunder, shall be fined not less than one hundred F1CC)CC7 pesos for each such

violation and in addition shall be denied a permit for a period of three F-7 years from the date of the violation)

SE+%'$# .6) Survey by Gnauthorized erson) 2 'mprisonment for not less than to F67 nor more than four F>7 years,in addition to the confiscation of the implements used in the violation of this section including the cancellation of thelicense, if any, shall be imposed upon any person ho shall, ithout permit to survey from the (irector, enter anyforest lands, hether covered by a license agreement, lease, license, or permit, or not, and conduct or underta3e asurvey for hatever purpose)

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SE+%'$# .-) *isclassification and Survey by :overnment $fficial or Employee) 2 Any public officer or employee ho 3noingly surveys, classifies, or recommends the release of forest lands as alienable and disposable landscontrary to the criteria and standards established in this +ode, or the rules and regulations promulgated hereunder,shall, after an appropriate administrative proceeding, be dismissed from the service ith pre"udice to re!employment,and upon conviction by a court of competent "urisdiction, suffer an imprisonment of not less than one F17 year and afine of not less than one thousand, F1,CCC)CC7 pesos) %he survey, classification or release of forest lands shall be

null and void)

SE+%'$# .>) %ax (eclaration on Real roperty) 2 'mprisonment for a period of not less than to F67 nor more thanfour F>7 years and perpetual dis8ualification from holding an elective or appointive office, shall be imposed upon anypublic officer or employee ho shall issue a tax declaration on real property ithout a certification from the (irector of&orest (evelopment and the (irector of 9ands or their duly designated representatives that the area declared fortaxation is alienable and disposable lands, unless the property is titled or has been occupied and possessed bymembers of the national cultural minorities prior to @uly >, 1/??)

SE+%'$# .?) +oercion and 'nfluence) 2 Any person ho coerces, influences, abets or persuades the public officer oremployee referred to in Sections > and ? commit any of the acts mentioned therein shall suffer imprisonment of notless than one F17 year and pay a fine of five hundred F?CC)CC7 pesos for every hectare or a fraction thereof so

improperly surveyed, classified or released)

'n all other cases, any person ho coerces, influences, abets or persuades the public officer or employee by usingpoer and influence in deciding any pending case or matter in his favor shall be punished by a fine of not more thanfive thousand pesos F?,CCC)CC7 and imprisonment of not less than one F17 year)

SE+%'$# .) Gnlaful ossession of 'mplements and (evices Gsed by &orest $fficers) 2 'mprisonment for a periodof not less than F67 nor more than four F>7 years and a fine of not less than one thousand pesos F1,CCC)CC7, normore than ten thousand F1C,CCC)CC7 pesos in addition to the confiscation of such implements and devices, and theautomatic cancellation of the license agreement, lease, license or permit, if the offender is a holder thereof, shall beimposed upon any person ho shall, ithout authority from the (irector or his authorized representative, ma3e,manufacture, or has in his possession any government mar3ing, hatchet or other mar3ing implement, or any mar3er,poster, or other devices officially used by officers of the =ureau for the mar3ing or identification of timber or otherproducts, or any duplicate, counterfeit, or imitation thereof, or ma3e or apply a government mar3 on timber or anyother forest products by means of any authentic or counterfeit device, or alter, deface, or remove government mar3sor signs, from trees, logs, stumps, fireoods or other forest products, or destroy, deface, remove or disfigure anysuch mar3, sign, poster or arning notices set by the =ureau to designate the boundaries of cutting areas, municipalor city forest or pasture, classified timber land, forest reserve, and areas under the national par3 system or to ma3eany false mar3 or imitation of any mar3 or sign herein indicated; rovided, %hat if the offender is a corporation,partnership or association, the officers and directors thereof shall be liable)

SE+%'$# .) ayment, +ollection and Remittance of &orest +harges) 2 Any person ho fails to pay the amount dueand payable under the provisions of this +ode, the #ational 'nternal Revenue +ode, or the rules and regulationspromulgated thereunder, shall be liable to the payment of a surcharge of tenty!five per centum F6?I7 of the amountdue and payable)

Any person ho fails or refuses to remit to the proper authorities said forest charges collectible pursuant to theprovisions of this +ode or the #ational 'nternal Revenue +ode, or ho delays, obstructs or prevents the same, or

 ho orders, causes or effects the transfer or diversion of the funds for purposes other than those specified in this+ode, for each such offense shall, upon conviction, be punished by a fine of not exceeding one hundred thousandpesos F1CC,CCC)CC7 and

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the offender is a government official or employee, he shall, in addition, be dismissed from the service ith pre"udiceto reinstatement and ith dis8ualification from holding any elective or appointive office)

'f the offender is a corporation, partnership or association, the officers and directors thereof shall be liable)

SE+%'$# ..) Sale of Wood roducts) 2 #o person shall sell or offer for sale any log, lumber, plyood or othermanufactured ood products in the international or domestic mar3et unless he complies ith grading rules andestablished or to be established by the :overnment)

&ailure to adhere to the established grading rules and standards, or any act of falsification of the volume of logs,lumber, or other forest products shall be a sufficient cause for the suspension of the export, samill, or other licenseor permit authorizing the manufacture or sale of such products for a period of not less than to F67 years)

A duly accredited representative of the =ureau shall certify to the compliance by the licensees ith grading rules)

Every dealer in lumber and other building material covered by this +ode shall issue an invoice for each sale of suchmaterial and such invoice shall state that the 3ind, standard and size of material sold to each purchaser in exactly the

same as described in the invoice) Any violation of this Section shall be sufficient ground for the suspension of thedealerDs license for a period of not less than to F67 years and, in addition thereto, the dealer shall be punished foreach such offense by a fine of not less than to hundred pesos F6CC)CC7 or the total value of the invoice, hicheveris greater)

SE+%'$# ./) Arrest0 'nstitution of +riminal Actions) 2 A forest officer or employee of the =ureau or any personnel ofthe hilippine +onstabulary

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SE+%'$# ./!A) %he Armed &orces of the hilippines shall organize a special force in every region to help enforcethe provisions of this Act under such rules and regulations as may be agreed upon by the Secretaries of #ational(efense and #atural Resources)

SE+%'$# ./!=) Administrative Authority of the (irector to 'mpose &ines) 2 'n all cases of violations of this +ode andother forest las, rules and regulations here fine is the principal penalty, the (irector is hereby authorized to impose

administratively the penalty consisting of the fine)

SPECIAL CLA2SE

SE+%'$# /C) Separability +lause) 2 Should any provision herein be subse8uently declared unconstitutional, thesame shall not affect the validity or the legality of the other provisions)

SE+%'$# /1) Repealing +lause) 2 residential (ecree #os) --C, and -./, +)A) #o) >?6, R)A) #o) >1? and all las,orders, rules and regulations or any part thereof hich are inconsistent hereith are hereby repealed or amendedaccordingly)

SE+%'$# /6) (ate of Effectivity) 2 %his +ode shall ta3e effect immediately upon promulgation)

($#E in the +ity of *anila, this 1/th day of *ay, in the year of $ur 9ord, #ineteen Hundred and Seventy!&ive)