SEC. 19.
Multiple use.—The numerous beneficial uses of the timber, land,
soil, water, wildlife, recreation value and grass of forest lands shall
be evaluated and weighted before allowing the utilization, exploitation,
occupation or possession thereof, or the conduct of any activity
therein.
Only the utilization, exploitation, occupation or
possession of any forest land, or any activity therein, involving one or
more of its resources, which will produce the optimum benefits to the
development and progress of the country and the public welfare, without
impairment or with the least injury to its other resources, shall be
allowed.
All forest reservations may be open to uses not
inconsistent with the principal objectives of the reservation: Provided,
That critical watersheds and national parks shall not be subject to
logging operations.
License agreement, license, lease or permit.
SEC. 20. License agreement, license, lease or permit.—
No person may utilize, exploit, occupy, possess or conduct any activity
within any forest land, or establish and operate any
wood-processing plant, unless he has been authorized to do so
under a license agreement, lease, license, or permit.
Sustained yield.
SEC. 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
Silvicultural and harvesting systems.
SEC. 22. Silvicultural and harvesting systems.—In
any logging operations in production forests within forest lands, the
proper silvicultural and harvesting systems that will promote optimum
sustained yield shall be practised.
For dipterocarp forest, selective logging shall be
practised.
For pine forest, the seed tree system with planting when
necessary shall be practised.
For other types of forest, the silvicultural and harvesting
system that will be found suitable by research shall be applied.
Meanwhile, a system based on observation and practices abroad may be
adopted initially.
Any practised system are subject to modification or changes based
on research findings.
Timber inventory.
SEC. 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 per cent (100%) timber inventory thereon has been achieved.
Required inventory prior to timber utilization in forest lands.
SEC. 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.
Cutting cycle.
SEC. 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 indiptero-carp area, and seed trees and reproduction in
pine area.
Annual allowable cut.
SEC. 26. Annual allowable cut.—The annual
allowable cut of any particular forest land shall be determined on the
basis of the established rotation and cutting cycle thereof, and the
volume and kind of harvestable timber and healthy residuals, seed trees
and reproduction found therein.
Duration of license agreement or license to harvest timber in forest lands.
SEC. 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 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 of 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.
Size of forest concessions.
SEC. 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
Incentives to the wood industry.
SEC. 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.
The President of the Philippines,
upon the recommendations of the National Economic Development Authority
and the Department Head, may establish wood industry import-export
centers in selected locations: Provided, That logs imported for
such centers shall be subject to such precaution as may be imposed by
the Bureau, in collaboration with proper government agencies, to prevent
the introduction of pests, insects and/or diseases detrimental to the
forests.
Rationalization of the wood industry.
SEC. 30. Rationalization of the wood industry.—While
establishment of wood-processing plants shall be encouraged, their
locations and operations shall be regulated in order to rationalize the
industry. No new processing plant shall be established unless adequate
raw material is available on a sustained-yield basis in the area where
the raw materials well come from.
Henceforth, all processing plants existing or to be
established shall obtain operating licenses from the Bureau of Forest
Development in accordance with Section 20 hereof, and shall submit
themselves to other regulations related to their operation.
The
Department Head may cancel, suspend, or phase-out all uneconomical
wood-processing plants which are not responsive to the rationalization
program of the government.
Wood wastes, weed trees and residues.
SEC. 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.
Log production and processing.
SEC. 32. Log production and processing.—Unless
otherwise decreed by the President, upon recommendation of the National
Economic Development Authority, the entire production of logs by all
licensees shall, beginning January 1, 1976, be processed locally.
A licensee who has no processing plant may, subject to the
approval of the Director, enter into a contract with a wood processor
for the processing of his logs. Wood processors shall accept for
processing only logs cut by, or purchased from, licensees of good
standing at the time of the cutting of logs.
C.
REFORESTATION
Forest lands to be reforested.
SEC. 33. Forest lands to be reforested.—The
following shall be reforested and covered with suitable and sufficient
trees, to wit:
Bare or grass-covered tracts of forest lands with at least
fifty per cent (50%) slope;
Bare or grass-covered tracts of forest lands with less than
fifty per cent (50%) slope, but with soil so highly erodible as to make
grass cover inadequate for soil erosion control;
Brushlands or tracts of forest lands generally
covered with brush, which need to be developed to in crease their
productivity;
Open tracts of forest lands with slopes or gradients generally
exceeding fifty per cent (50%), interspersed with patches of forest
each of which is less than two hundred fifty (250) hectares in area;
Denuded or inadequately-timbered areas proclaimed by the
President as forest reserves and reservations as critical watersheds,
national parks, game refuge, bird sanctuaries, national shrines,
national historic sites;
Inadequately-stocked forest lands within forest concessions;
Portions of areas covered by pasture leases or permits having a
slope of at least fifty per cent (50%); and
River banks, easements, road rights of ways, deltas, swamps,
former river beds, and beaches.
Industrial Tree Plantations and Tree Farms.
SEC. 34. Industrial Tree Plantations and Tree Farms.—
A lease for a period of twenty-five (25) years, renewable for another
period not exceeding twenty-five (25) years, for the establishment of an
industrial tree plantation or a tree farm may be granted by the
Department Head upon recommendation of the Director to any person
qualified to develop and exploit natural resources, over timber or
forest lands of the public domain categorized in Section 33 hereof, with
a minimum area of One Thousand (1,000) hectares for industrial tree
plantation and One Hundred (100) hectares for tree farm; Provided,
That the size of the area that may be granted under each category shall
in each case depend upon the capacity of the lessee to develop or
convert the area into productive condition within the term of the lease;
Provided, Further, That no lease shall be granted within
critical watersheds.
Scattered areas of less than One Hundred (100) hectares each
may be leased for the establishment of tree farms to different qualified
person upon a showing that if developed as an integrated unit these
areas can be economically exploited: Provided, That it shall be a
condition of the lease that such persons organize themselves into a
cooperative to ensure the orderly management thereof.
The lease
may be granted under such terms and conditions as the Department Head
may prescribe, taking into account, among others, the raw material needs
of forest-based industries and the maintenance of a wholesome
ecological balance.
Reforestation projects of the Government, or
portions thereof which, upon field evaluation, are found to be more
suitable for, or can be better developed as, industrial tree
plantations or tree farms in terms of benefits to the Government and the
general surrounding area, may be the subject of the lease under this
section.
Priority.
SEC. 35. Priority.—Over any suitable area covered
by a timber license agreement, or a pasture lease agreement or permit,
the priority to establish industrial forest plantation or tree farm
shall be given to the holder thereof.
The priority herein granted must, however, be availed of
within a reasonable period to be determined by the Department Head,
otherwise, the area shall be declared open to any qualified person and
consequently segregated from the holder's area.
Incentives.
SEC. 36. Incentives.—To
encourage qualified persons to engage in industrial tree plantation
and/or tree farming the following incentives are granted:
Payment of a nominal filing fee of fifty centavos (P0.50) per
hectare;
No rental shall be collected during the first five (5) years
from the date of the lease; from the sixth year to the tenth year, the
annual rental shall be fifty centavos (P0.50) per hectare; and
thereafter, the annual rental shall be one peso (P1.00) per hectare: Provided,
That lessees of areas long denuded as certified by the Director and
approved by the Department Head, shall be exempted from the payment of
rental for the full term of the lease which shall not exceed twenty-five
(25) years; for the first five (5) years following the renewal of the
lease, the annual rental shall be fifty centavos (P0.50) per hectare;
and thereafter, the annual rental shall be one peso (P1.00) per hectare.
The lessee shall pay forest charges on the timber and other
forest products grown and cut or gathered in an industrial tree
plantation or tree farm equivalent to six percent (6%) current market
value thereof;
Sale at cost of seedlings and free technical advice and
assistance to persons who will develop their privately-owned lands into
industrial tree plantation or tree farm;
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;
The Board of Investments shall, notwithstanding its nationality
requirement on projects involving natural resources, classify
industrial tree plantations and tree farms as pioneer areas of
investment under its annual priority plan, to be governed by the rules
and regulations of said Board. A lessee of an industrial tree plantation
or tree farm may either apply to the Board of Investments for the tax
and other benefits thereunder, or avail of the following benefits:
Amounts expended by a lessee in the development and
operation of an industrial tree plantation or tree farm prior to the
time when the production state is reached, may, at the
option of said lessee, be regarded as ordinary and necessary business
expenses or as capital expenditures; and
Deduction from an investor's taxable income for
the year, of an annual investment allowance equivalent to thirty-three
and one-third per cent (33-1/3%) of his actual investment during the
year in an enterprise engaged in industrial tree plantation or tree
farm: Provided, That such investment shall not be withdrawn
for a period of at least ten (10) years from the date of
investment: Provided, Further, That should the investment be
withdrawn within such period, a tax equivalent to double the
amount of the total income tax rebate resulting from the
investment allowance shall be payable as a lump sum in
addition to the income tax due from the tax payer for the year the
investment was withdrawn.
Except when public interest demands the alteration or
modification, the boundaries of an area covered by an industrial tree
plantation or tree farm lease, once established on the ground, shall not
be altered or modified; and
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 interests paid on borrowing
incurred for development and operation of the industrial tree plantation
or tree farm.
The Department Head may provide other incentives in addition to
those hereinabove granted to promote industrial tree plantations and
tree farms in special areas such as, but not limited to, those where
there are no roads or where roads are inadequate, or areas with rough
topography and remote areas far from processing plants.
All
amounts collected under this section shall accrue to a special deposit
of the Bureau to be used for reforestation of critical watersheds or
degraded areas and other development activities, over and above the
general appropriation of the said Bureau.
D.
FOREST PROTECTION
Protection of all resources.
SEC. 37. Protection of all resources.—All
measures shall be taken to protect the forest resources from
destruction, impairment and depletion.
Control of concession area.
SEC. 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.
Regulation of timber utilization in all other classes of lands and of wood-processing plants.
SEC. 39. Regulation of timber utilization in all
other classes of lands and of wood-processing plants.—The
utilization of timber in alienable and disposable lands, private lands,
civil reservations, 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.
Timber inventory in other lands containing standing or felled timber.
SEC. 40. Timber inventory in other lands containing
standing or felled timber.—The Bureau shall conduct a one hundred
per cent (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 reservations, and all other
lands, including those under the jurisdiction of other government
agencies, shall be allowed unless a one hundred per cent (100%) timber
inventory has been conducted thereon.
Sworn timber inventory reports.
SEC. 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.
Participation in the development of alienable and disposable lands and civil reservations.
SEC. 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
delination and development of such areas in accordance with the
management plan of the appropriate government agency by exercising
jurisdiction over the same.
The extent of participation shall be based on the amount of
timber which may be harvested therefrom.
Swamplands and mangrove forests.
SEC. 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 free
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.
Visitorial power.
SEC. 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 operation of any
holder of a license agreement, license, lease, or permit, and its
subsidiary or affiliated companies, to determine compliance with the
terms and conditions thereof, this Code and pertinent laws, policies,
rules and regulations.
Authority of forest officers.
SEC. 45. Authority of forest officers.—When in
the performance of their official duties, forest officers, or other
government officials or employees duly authorized by the Department Head
or Director, shall have free entry into areas covered by a license
agreement, license, lease or permit.
Forest officers are authorized to administer oath and take
acknowledgment in official matters connected with the functions of their
office, and to take testimony in official investigations conducted
under the authority of this Code and the implementing rules and
regulations.
Scaling stations.
SEC. 46. Scaling stations.—In
collaboration with appropriate government agencies, the Bureau shall
establish control or scaling stations at suitably located outlets of
timber and other forest products to insure that they were legally cut or
harvested.
Mining operations.
SEC. 47. Mining operations.—Mining operations in
forest lands shall be regulated and conducted with due regard to
protection, development and utilization of other surface resources.
Location, prospecting, exploration, utilization or
exploitation of mineral resources in forest reservations shall be
governed by Mining laws, rules and regulations. No location,
prospecting, exploration, utilization, or exploitation of mineral
resources inside forest concessions shall be allowed unless proper
notice has been served upon the licensees thereof and the prior approval
of the Director, secured.
Mine tailings and other pollutants
affecting the health and safety of the people, water, fish, vegetation,
animal life and other surface resources, shall be filtered in silt traps
or other filtration devices and only clean exhausts and liquids shall
be released therefrom.
Surface-mined areas shall be restored to
as near its former natural configuration or as approved by the Director
prior to its abandonment by the mining concern.
Mineral Reservations.
SEC. 48. Mineral Reservations.—Mineral
reservations which are not the subject of mining operations or where
mining operations have been suspended for more than five (5) years shall
be placed under forest management by the Bureau.
Mineral reservations where mining operations have been
terminated due to the exhaustion of its minerals shall revert to the
category of forest land, unless otherwise reserved for other purposes.
Roads and other infrastructure.
SEC. 49. Roads and other infrastructure.—Roads and other
infrastructure in forest lands shall be constructed with the least
impairment to the resource values thereof.
Government agencies
undertaking the construction of roads, bridges, communications, and
other infrastructure and installations inside forest land, shall
coordinate with the Bureau, especially if it will involve the
utilization or destruction of timber and/or other forest resources, or
watershed disturbance therein, in order to adopt measures to avoid or
reduce damage or injury to the forest resource values.
They shall
likewise extend assistance in the planning and establishment of roads,
wharves, piers, port facilities, and other infrastructure in locations
designated as wood-processing centers or for the convenience of
wood-based industries.
In order to coincide and conform to
government plans, programs, standards, and specifications, holders of
license agreements, license, leases and permits shall not undertake road
or infrastructure construction or installation in forest lands without
the prior approval of the Director, or in alienable and disposable
lands, civil reservations and other government lands, without the
approval of the government agencies having administrative
jurisdiction over the same.
All roads and infrastructure
constructed by holders of license agreements, licenses, leases and
permits belong to the State and the use and administration thereof shall
be transferred to the government immediately upon the expiration or
termination thereof. Prior thereto the Bureau may authorize the public
use thereof, if it will not be detrimental to forest conservation
measures.
Where roads are utilized by more than one commercial
forest user, the Bureau shall prescribe the terms and conditions of
joint use including the equitable sharing of construction and/or
maintenance costs, and of the use of these roads by other parties and
the collection of such fees as may be deemed necessary.
Logging roads.
SEC. 50. Logging roads.—There shall be no
indiscriminate construction of logging roads.
Such roads shall be strategically located and their widths
regulated so as to minimize clear-cutting, unnecessary damage or injury
to healthy residuals, and erosion. Their construction must not only
serve the transportation need of the logger but, most importantly, the
requirement to save as many healthy residuals as possible during cutting
and hauling operations.
Management of occupancy in forest lands.
SEC. 51. Management of occupancy in forest lands.—
Forest occupancy shall henceforth be managed. The Bureau shall study,
determine and define which lands may be the subject of occupancy and
prescribed therein, an agro-forestry development program.
Occupants shall undertake measures to prevent and protect
forest resources.
Any occupancy in forest land which will result
in sedimentation, erosion, reduction in water yield and impairment of
other resources to the detriment of community and public interest shall
not be allowed.
In areas above 50% in slope, occupation shall be
conditioned upon the planting of desirable trees thereon and/or
adoption of other conservation measures.
SEC. 52. Census of kaingineros, squatters, cultural
minorities and other occupants and residents in forest lands.—
Henceforth, no person shall enter into forest lands and cultivate the
same without lease or permit.
A complete census of kaingineros, squatters, cultural
minorities and other occupants and residents in forest lands with or
without authority or permits from the government, showing the extent of
their respective occupation and resulting damage, or impairment of
forest resources, shall be conducted.
The Bureau may call upon
other agencies of the government and holders of license agreement,
license, lease and permits over forest lands to participate in the
census.
Criminal Prosecution.
SEC. 53. Criminal Prosecution.—Kaingineros,
squatters, cultural minorities and other occupants who entered into
forest lands before the effectivity of this Code, without permits or
authority, shall not be prosecuted: Provided, That they do not
increase their clearings: Provided, Further, That they undertake,
within two (2) months from notice thereof, the activities which will be
imposed upon them by the Bureau in accordance with a management plan
calculated to conserve and protect forest resources.
E. SPECIAL USES
Pasture in forest lands.
SEC. 54. Pasture
in forest lands.—No forest land 50% in slope or over may be
utilized for pasture purposes.
Forest lands which are being
utilized for pasture shall be maintained with sufficient grass cover to
protect soil, water and other forest resources.
If grass cover
is insufficient, the same shall be supplemented with trees or such
vegetative cover as may be deemed necessary.
The size of forest lands that may be allowed for pasture and other special uses shall be
determined by rules and regulations, any provision of law to the
contrary notwithstanding.
Wildlife.
SEC. 55. Wildlife.—Wildlife
may be destroyed, killed, consumed, caton or otherwise disposed of,
without the necessity of permit, for the protection of life, health,
safety and property and the convenience of the people.
However,
the Director may regulate the killing and destruction of wildlife in
forest lands in order to maintain an ecological balance of flora and
fauna.
Recreation.
SEC. 56. Recreation.—The Bureau shall, in
the preparation of multiple-use management plans, identify and provide
for the protection of scenic areas in all forest lands which are
potentially valuable for recreation and tourism, and plan for the
development and protection of such areas to attract visitors thereto and
meet increasing demands therefor.
The construction and operation
of necessary facilities to accommodate outdoor recreation shall be done
by the Bureau with 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 whatever funds may be appropriated for such
purposes.
Other special uses of forest lands.
SEC. 57. Other special uses of forest lands.—Forest
lands may be leased for a period not exceeding twenty-five (25) years,
renewable upon the expiration thereof for a similar period, or held
under permit, for the establishment of sawmills, lumber yards, timber
depots, logging camps, rights-of-way, or for the construction
of sanatoria, bathing establishments, camps, salt works, or other
beneficial purposes which do not in any way impair the forest resources
therein.
F. QUALIFICATIONS
SEC. 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 wood-processing plants, shall be diffused to as
many qualified and deserving applicants as possible.
Citizenship.
SEC. 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.
Financial and technical capability.
SEC. 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 maximize
utilization, but also to practice forest protection, conservation and
development measures to insure the perpetuation of said forest in
productive condition.
Transfers.
SEC. 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 he has not violated any forestry law, rule or regulation; 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 or conveyance is being made for purposes of speculation; and
the transferee shall assume all the obligations of the transferor.
The transferor shall forever be barred from acquiring another license
agreement, license, lease or permit.
Service contracts.
SEC. 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.
Equity sharing.
SEC. 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 preparation of fund to ensure the financial 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 operations, personnel management, and asset evaluation.
G. REGULATORY FEES
Charges, fees and bonds.
SEC. 64. Charges,
fees and bonds.—The Department Head, upon recommendation of the
Director, shall fix the amount of charges, rentals, bonds and fees for
the different kinds of utilization, exploitation, occupation,
possession, or activity inside forest lands, the filing and processing
of applications therefor, the issuance and renewal of license
agreements, licenses, leases and permits, and for other services; Provided,
That all fees and charges presently being collected under existing laws
and regulations shall continue to be imposed and collected until
otherwise provided, Provided, Further, That timber taken and
removed from private lands for commercial purposes shall be exempt from
the payment of forest charges.
Authority of Department Head to impose other fees.
SEC. 65. Authority of Department Head to impose other
fees.—In addition to the fees and charges imposed under existing
laws, rules and regulations, the Department Head is hereby authorized,
upon recommendation of the Director and in consultation with
representatives of the industries affected, to impose other fees for
forest protection, management, reforestation, and development, the
proceeds of which shall accrue into a special deposit of the Bureau as
its revolving fund for the aforementioned purposes.
Collection and Disbursement.
SEC. 66. Collection and Disbursement.—The
collection of the charges and fees above-mentioned shall be the
responsibility of the Director or his authorized representative. The
Director shall remit his monthly collection of fees and charges
mentioned in Section 64 to the Treasurer of the Philippines within the
first ten (10) days of the succeeding month; Provided, That the
proceeds of the collection of the fees imposed under Section 65 and the
special deposit heretofore required of licensees shall be constituted
into a revolving fund for such purposes and be deposited in the
Philippine National Bank, as a special deposit of the Bureau. The
Budget Commissioner and the National Treasurer shall effect the
quarterly releases out of the collection accruing to the general fund
upon request of the Director on the basis of a consolidated annual
budget of a work program approved by the Department Head and the
President.
In the case of the special deposit revolving fund, withdrawals
therefrom shall be effected by the Department Head on the basis of a
consolidated annual budget prepared by the Director of a work program
for the specific purposes mentioned in Section 65.
Basis of Assessment.
SEC. 67. Basis of Assessment.—Tree measurement
shall be the basis for assessing government charges and other fees on
timber cut and removed from forest lands, alienable or disposable lands,
and civil reservations; Provided, That until such time as the
mechanics of tree measurement shall have been developed and promulgated
in rules and regulations, the present scaling method provided for in the
National Internal Revenue Code shall be used.
The Director may, with the approval of the Department Head,
prescribe a new method of assessment of forest products and collection
of charges thereon based upon the result of production cost and market
studies undertaken by the Bureau; Provided, That such charges
shall not be lower than those now imposed.
CHAPTER
IV—CRIMINAL OFFENSES AND PENALTIES
Cutting, gathering and/or collecting timber or other products without license.
SEC. 68. Cutting,
gathering and/or collecting timber or other products without license.—Any
person who shall cut, gather, collect, or remove timber or other forest
products from any forest land, or timber from alienable and disposable
public lands, or from private lands, without any authority under a
license agreement, lease, license or permit, shall be guilty of
qualified theft as defined and punished under Articles 309 and 310 of
the Revised Penal Code; Provided, That in the case of
partnership, association or corporation, the officers who ordered the
cutting, gathering or collecting shall be liable and if such officers
are aliens, they shall, in addition to the penalty, be deported without
further proceedings on the part of the Commission on Immigration and
Deportation.
The Court shall further order the confiscation in
favor of the government of the timber or forest products to cut,
gathered, collected or removed, and the machinery, equipment, implements
and tools used therein, and the forfeiture of his improvements in the
area.
The same penalty plus cancellation of his license
agreement, lease, license or permit and perpetual disqualification from
acquiring any such privilege shall be imposed upon any licensee, lessee,
or permittee who cuts timber from the licensed or leased area of
another, without prejudice to whatever civil action the latter may bring
against the offender.
Unlawful occupation or destruction of forest lands.
SEC. 69. Unlawful occupation or destruction of
forest lands.—Any person who enters and occupies or possesses, or
makes kaingin for his own private use or for others any forest land
without authority under a license agreement, lease, license or permit,
or in any manner destroys such forest land or part thereof, or causes
any damage to the timber stand and other products and forest growths
found therein, or who assists, aids or abets any other person to do so,
or sets a fire, or negligently permits a fire to be set in any forest
land 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 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 restoration of the occupied area as
determined by the Bureau.
The Court shall further order the eviction of the offender
from the land and 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.
Pasturing Livestock.
SEC. 70. 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.
Illegal occupation of national parks system and recreation areas and vandalism therein.
SEC. 71. 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 two hundred
(P200.00) pesos or more than five hundred (P500.00) 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
for the restoration of the damage; Provided, Further, That any
person who, without proper permit shall hunt, capture or kill any kind
of bird, fish or wild animal life within any 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
of 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 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
the fine collected shall accrue to such municipality or city for the
development of local parks.
Destruction of wildlife resources.
SEC. 72. 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.
Survey by unauthorized person.
SEC. 73. Survey by unauthorized person.—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 forest lands, whether covered by a license agreement, lease,
license, or permit, or not, and conduct or undertake a survey for
whatever purpose.
Misclassification and survey by government official or employee.
SEC. 74. Misclassification and survey by government
official or employee.—Any public officer or employee who knowingly
surveys, classifies, or recommends the release of forest lands as
alienable and disposable lands contrary to the criteria and standards
established in this Code, or the rules and regulations promulgated
hereunder, shall, after an appropriate administrative proceeding, be
dismissed from the service with prejudice to re-employment, and upon
conviction by a court of competent jurisdiction suffer an imprisonment
of not less than one (1) year and a fine of not less than one thousand
(P1,000.00) pesos. The survey, classification or release of forest lands
shall be null and void.
Tax declaration on real property.
SEC. 75. Tax declaration on real property.—Imprisonment
for a period of not less than two (2) nor more than four (4) years and
perpetual disqualification from holding an elective or appointive
office, shall be imposed upon any public officer or employee who shall
issue a tax declaration on real property without a certification from
the Director of Forest Development and the Director of Lands or their
duly designated representatives that the area declared for taxation is
alienable and disposable lands, unless the property is titled or has
been occupied and possessed by members of the national cultural
minorities prior to July 4, 1955.
Coercion and influence.
SEC. 76. Coercion and influence.—Any person who
coerces, influences, abets or persuades the public officer or employee
referred to in the two preceding sections to commit any of the acts
mentioned therein shall suffer imprisonment of not less than one (1)
year and pay a fine of five hundred (P500.00) pesos for every hectare or
a fraction thereof so improperly surveyed, classified or released.
Unlawful possession of implements and devices used by forest officers.
SEC. 77. Unlawful possession of implements
and devices used by forest officers.—Imprisonment for a period of
not less than two (2) nor more than four (4) years and a fine of not
less than one thousand pesos (P1,000.00), nor more than ten thousand
(P10,000.00) pesos in addition to the confiscation of such implements
and devices, and the automatic cancellation of the license agreement,
lease, license or permit, if the offender is a holder thereof, shall be
imposed upon any person who shall, without authority from the Director
or his authorized representative, make, manufacture, or has in his
possession any government marking, hatchet or other marking implement,
or any market, poster, or other devices officially used by officers of
the Bureau for the marking or identification of timber or other
products, or any duplicate, counterfeit, or imitation thereof, or make
or apply a government mark on timber or any other forest products by
means of any authentic or counterfeit device, or alter, deface, or
remove government marks or signs, from trees, logs, stumps, firewoods or
other forest products, or destroy, deface, remove or disfigure any such
mark, sign, poster or warning notices set by the Bureau to designate
the boundaries of cutting areas, municipal or city forest or pasture,
classified timber land, forest reserve, and areas under the national
park system or to make any false mark or imitation of any mark or sigh
herein indicated; Provided, That if the offender is a
corporation, partnership or association, the officers and directors
thereof shall be liable.
Payment, collection and remittance of forest charges.
SEC. 78. Payment, collection and remittance of
forest charges.—Any person who fails to pay the amount due and
payable under the provisions of this Code, the National Internal Revenue
Code, or the rules and regulations promulgated thereunder, shall be
liable to the payment of a surcharge of twenty-five per centum (25%) of
the amount due and payable.
Any person who fails or refuses to remit to the proper
authorities said forest charges collectible pursuant to the provisions
of this Code or the National Internal Revenue Code, or who delays,
obstructs or prevents the same, or who orders, causes or effects the
transfer or diversion of the funds for purposes other than those
specified in this Code, for each such offense shall, upon conviction, be
punished by a fine of not exceeding one hundred thousand pesos
(P100,000.00) and/or imprisonment for a period of not exceeding six (6)
years in the discretion of the Court. If the offender is a government
official or employee, he shall, in addition, be dismissed from the
service with prejudice to reinstatement and with disqualification from
holding any elective or appointive office.
If the offender is a
corporation, partnership or association, the officers and directors
thereof shall be liable.
Sale of wood products.
SEC. 79. Sale of wood products.—No person shall
sell or offer for sale any log, lumber, plywood or other manufactured
wood products in the international or domestic market unless he complies
with grading rules established or to be established by the Government.
Failure 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, sawmill, or other license or permit authorizing the
manufacture or sale of such products for a period of not less than two
(2) years.
A duly accredited representative of the Bureau shall
certify to the compliance by the licensees with grading rules.
Every
dealer in lumber and other building materials covered by this Code
shall issue an invoice for each sale of such material and such invoice
shall state that the kind, standard and size of material sold to each
purchaser is exactly the same as described in the invoice. Any
violation of this Section shall be sufficient ground for the suspension
of the dealer's license for a period of not less than two (2) years and,
in addition thereto, the dealer shall be punished for each such offense
by a fine of not less than two hundred pesos (P200.00) or the total
value of the invoice, whichever is greater.
Arrest, Institution of criminal actions.
SEC. 80. Arrest, Institution of
criminal actions.—A forest officer or employee of the Bureau shall
arrest even without warrant any person who has committed or is
committing in his presence any of the offenses defined in this Chapter.
He shall also seize and confiscate, in favor of the Government, the
tools, and equipment used in committing the offense, and the forest
products cut, gathered or taken by the offender in the process of
committing the offense. The arresting forest officer or employee shall
thereafter deliver within six (6) hours from the time of arrest and
seizure, the offender and the confiscated forest products, tools and
equipment to, and file the proper complaint with, the appropriate
official designated by law to conduct preliminary investigations and
file informations in court.
If the arrest and seizure are made in the forests, far from
the authorities designated by law to conduct preliminary investigations,
the delivery to, and filing of the complaint with, the latter shall be
done within a reasonable time sufficient for ordinary travel from the
place of arrest to the place of delivery. The seized products, materials
and equipment shall be immediately disposed of in accordance with
forestry administrative orders promulgated by the Department Head.
The Department Head may deputize any member or unit of the Philippine
Constabulary, police agency, barangay or barrio official, or any
qualified person to protect the forest and exercise the power or
authority provided for in the preceding paragraph.
Reports and
complaints regarding the commission of any of the offenses defined in
this Chapter, not committed in the presence of any forest officer or
employee, or any of the deputized officers or officials, shall
immediately be investigated by the forest officer assigned in the area
where the offense was allegedly committed, who shall thereupon receive
the evidence supporting the report or complaint.
If there is prima
facie evidence to support the complaint or report, the
investigating forest officer shall file the necessary complaint with the
appropriate official authorized by law to conduct a preliminary
investigation of criminal cases and file an information in Court.
SPECIAL CLAUSES
Separability Clause.
SEC. 81. Separability
Clause.—Should any provision herein be subsequently declared
unconstitutional, the same shall not affect the validity or the legality
of the other provisions.
Repealing Clause.
SEC. 82. 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.
Date of Effectivity.
SEC. 83. Date of Effectivity.—This Code shall
take effect immediately upon promulgation.
Done in the City of Manila, this 19th day of May, in the year
of Our Lord, nineteen hundred and seventy-five.
(Sgd.)
FERDINAND E. MARCOS
President
Republic of the Philippines
By the President:
(Sgd.)
ALEJANDRO MELCHOR
Executive Secretary
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
