WHEREAS, the Government has adopted the policy of requiring
the entire production of logs by all timber licensees to be processed
locally beginning January 1, 1976, to maximize the potentials of our
timber resources;
WHEREAS, the full implementation of the aforesaid policy may
adversely affect the country's balance of payments, employment and the
stability of the industry; and
WHEREAS, there is a need to reconcile this policy with the
realities of conditions presently obtaining in our wood industry;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers vested in me by the Constitution,
do hereby amended Section 32 of Presidential Decree No. 705, as follows:
"SEC. 32. Log Production and Processing.—Unless
otherwise decreed by the President, upon recommendation of the
National Economic and Development Authority, the entire production of
logs by all timber licensees shall, beginning January 1, 1976, be
processed locally: Provided, That the following may
be allowed to export a portion of their log production
to be determined by the Secretary of Natural Resources such
that the aggregate log export shall not exceed 25% of the total
allowable cut:
"1. Timber licensees with viable processing plants;
"2. Timber licensees with processing projects duly
approved by the Secretary of Natural Resources;
"3. Timber licensees who have acquired processing machinery and
equipment, provided that these will be in operation within two
(2) years from the date of the effectivity of this Decree; and
"4. Timber licensees whose log exports support, or arc in line
with, government-approved trade agreements
Provided, further, That the above licensees are operating
or will operate within log-excess and log-balanced areas: Provided,
finally, That the President of the Philippines may, upon
recommendation of the Secretary of Natural Resources whenever the export
price of logs fall to unreasonably low level or whenever public
interest so requires, cancel log exportation, or reduce the maximum
allowable proportion for log exports."
"All timber licensees who have no processing plant must, subject
to the approval of the Bureau of Forest Development, enter into a
contract with a local 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."
This Decree shall take effect upon its promulgation.
Done in
the City of Manila, this 29th day of December, in the year of Our Lord,
nineteen hundred and seventy-five.
(Sgd.)
FERDINAND E. MARCOS
President
Republic of the Philippines
By the President:
(Sgd.)
JACOBO C. CLAVE
Presidential Executive Assistant