National Forestry Act 1984 Part V — Royalty and premium

Royalty payable to State Authority

s 61

Royalty shall be payable to the State Authority in respect of all forest produce taken at the rates laid down in the royalty rate list as published in the Gazette by the State Authority.

Power to remit, commute or waive royalty

s 62

(1) Notwithstanding section 61, the State Authority may reduce, commute or waive any royalty in respect of, or exempt from royalty, any forest produce or class of forest produce taken. (2) Subject to any contrary direction by the State Authority, the Director may reduce, commute or waive any royalty in respect of, or exempt from royalty,— (a) any forest produce or class of forest produce for the following purposes: (i) for scientific, or other non-commercial purposes; (ii) to encourage the utilization of various dimensions and species of forest produce having little or no market demand and which would otherwise be uneconomical to take; (iii) to encourage the taking of forest produce damaged by fire, pest, disease or other causes; (iv) for the construction of forest roads or any work of public utility; (b) any forest produce or class of forest produce taken from any State land or alienated land by any aborigine for— (i) the construction and repair of temporary huts on any land lawfully occupied by such aborigine; (ii) the maintenance of his fishing stakes and landing places; (iii) fuelwood or other domestic purposes; or (iv) the construction or maintenance of any work for the common benefit of the aborigines.

Failure to cut and remove forest produce

s 63

(1) Where any forest produce required under the licence to be cut and removed is not cut before the expiry of the licence, or is not removed within thirty days upon the expiry of the licence, or is damaged or destroyed by reason of the operations conducted in or about the licence area, the Director may issue an assessment against the licensee thereof in an amount up to three times the royalty, premium, cess and other charges and any such forest produce which has been cut but not removed shall become the property of the State Authority free from all encumbrances, notwithstanding that royalty, premium, cess or other charges have been paid with respect to such forest produce to the State Authority. (2) An assessment under subsection (1) shall be based upon an inspection of the licence area by a forest officer made within three months, or such longer period as the Director may allow, of the expiry of the licence. (3) Any person aggrieved by an assessment made under subsection (1) may, within thirty days of the service of the assessment upon him, appeal to the State Authority whose decision shall be final. Chapter 2—Marking of Forest Produce

Director to maintain register of property marks

s 64

The Director shall maintain a register of all property marks and the register shall contain— (a) particulars of each property mark registered; (b) the name of the licensee concerned; and (c) a description of the licence and the licence area.

Licensee to mark forest produce

s 65

(1) Unless otherwise prescribed, a licensee shall cause to be marked all forest produce taken from the licence area in accordance with any rules. (2) Any forest produce not marked as required by subsection (1) shall, until the contrary is proved, be deemed to be the property of the State Authority. Chapter 3—Measurement of Forest Produce

Place of measurement of forest produce removed from licence area

s 66

(1) All forest produce in respect of which royalty, premium, cess or other charges are payable to the State Authority shall be measured by a forest officer prior to its removal from the licence area upon which it is taken or, if the licence under which it is taken provides otherwise, then such measurement shall be made at the place and time specified in the licence. (2) Where it is provided in the licence that the forest produce shall be measured at a place outside the licence area, the Director may specify the route by which the forest produce shall be transported to such place for the purpose of measurement. (3) Notwithstanding subsection (1) or (2), the Director may, at any time, specify a place or time for the measurement, or prescribe a route for the transportation, of forest produce other than the place, time or route specified in subsection (1) or (2). (4) Any person— (a) who removes any forest produce from a licence area in contravention of subsection (1); (b) who, in transporting any forest produce from a licence area to a place of measurement specified by the Director under subsection (3), without reasonable excuse, use a route different from that prescribed by the Director under subsection (2) or (3); or (c) who, without reasonable excuse, removes any forest produce from a licence area to a place other than a place for the measurement of such forest produce as specified by the Director under subsection (3), shall be guilty of an offence and shall on conviction be liable to a fine not exceeding *fifty thousand ringgit or to imprisonment for a term not exceeding **five years or to both such fine and imprisonment.

Place of measurement of forest produce removed from alienated land and mining land

s 67

(1) Any forest produce removed from any— (a) alienated land; (b) reserved land (c) mining land; or (d) land held under a temporary occupation licence, shall, if royalty is payable on such forest produce, be taken to a place specified in the removal licence or to such place as the Director may specify, for the measurement of such produce. (2) Any person who contravenes subsection (1) shall be guilty of an offence and shall on conviction be liable to a fine not exceeding *fifty thousand ringgit or to imprisonment for a term not exceeding **five years or to both such fine and imprisonment. Chapter 4—Possession of Forest Produce Removal pass

s 68

(1) No person shall have in his possession, custody or control any forest produce unless he is in possession of a removal pass for the removal of such forest produce. (2) Such removal pass shall be made available for inspection by any forest officer. (3) Subsection (1) shall not apply to any forest produce situate upon— (a) a licence area; (b) an area specified in a use permit; (c) any alienated land; (d) any land held under a temporary occupation licence; (e) any mining land; or (f) any reserved land, from which it is taken prior to its removal from such area or land, or to any forest produce in transit along a route specified under subsection 66(2) or (3). (4) Any person who contravenes subsection (1) or (2) shall be guilty of an offence and shall on conviction be liable— (a) if the offence is under subsection (1), to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding five years or to both; (b) if the offence is under subsection (2), to a fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding three years or to both. *NOTE—Previously “five thousand ringgit” –see the National Forestry (Amendment) Act 1993 [Act A864]. **NOTE—Previously “two years” –see the National Forestry (Amendment) Act 1993 [Act A864].

Conversion plant operator required to have removal pass and record of measurement

s 69

(1) No person shall engage in converting any forest produce or have in his control or charge a conversion plant unless he is in possession of a removal pass and a record of measurement in respect of all forest produce converted or being or about to be converted or being in or about the conversion plant or other premises under his charge or control. (2) Such removal pass and record of measurement shall be made available for inspection by any forest officer. (3) Any person who contravenes subsection (1) or (2) shall be guilty of an offence and shall on conviction be liable— (a) if the offence is under subsection (1), to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding five years or to both; (b) if the offence is under subsection (2), to a fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding three years or to both.

Issuance and form of removal pass

s 70

(1) A removal pass may only be issued by the Director or by a forest officer authorized by the Director to issue the same. (2) Every removal pass shall be in Form 8. (3) In the case of a forest produce on which no royalty is payable to the State Authority, the licence, minor licence, use permit or removal licence under which such forest produce is taken or removed, shall be deemed to constitute a removal pass for the purpose of this Chapter.

Exemption

s 71

Subject to any rules, the Director may exempt any person from any of the provisions of this Chapter where— (a) the conversion plant under the charge or control of such person is situate within or adjacent to the licence area; (b) the Director considers it more expedient to measure the forest produce after conversion; or (c) the Director is satisfied that such exemption would not cause any loss of royalty or other revenue to the State Authority. Chapter 5—Payment of Royalty, Premium, Cess and Other Charges Payable to the State Authority

Royalty, etc., payable when assessed

s 72

(1) Royalty, premium, cess and other charges payable to the State Authority under this Act shall be due and payable to the State Authority when assessed and shall be deemed to have been assessed when the assessment is signed and served on the person from whom payment is due. (2) Unless the Director directs otherwise, an assessment in respect of forest produce shall be issued and served together with each record of measurement. (3) The Director may, within six months of the issue of any assessment under this Act, issue a reassessment which shall be of the same effect as an original assessment.

Title to forest produce

s 73

Notwithstanding anything contained in this Act, ownership to any forest produce shall not pass to any person unless— (a) all royalty, premium, cess and other charges payable in respect of the licence and forest produce have been paid to the State Authority; and (b) a removal pass has been issued in respect of such forest produce.

Forest produce vests in the State Authority if royalty, etc., unpaid

s 74

If royalty, premium, cess or other charges payable to the State Authority in respect of any forest produce is not paid to the State within the time specified by the Director, ownership to such forest produce shall vest in the State Authority free from all encumbrances.

Deposit to secure payment

s 75

(1) Before any licence, minor licence or use permit is issued, the applicant shall deposit such sum of money as may be determined by the authority issuing the same as security for the due observance of the provisions of the licence, minor licence or use permit, as the case may be, and for the payment of any or all sums payable to the State Authority. (2) Such authority may require the deposit to be in any of the following forms: (a) cash; (b) valid written guarantee of a licensed commercial bank; (c) a combination of (a) and (b). (3) The Director may, whenever he considers it necessary to do so, require the licensee or the holder of the use permit or minor licence, as the case may be, to forthwith deposit an additional sum of money, or provide a new deposit to replace the deposit previously made.