Question & AnswerQ&A (LETTER OF INSTRUCTIONS NO. 357)
The main purpose is to implement the log export ban, including the temporary limited and selective exportation of logs, and to rationalize the wood industry in the Philippines without causing unnecessary economic dislocation.
The Department of Natural Resources (DNR) is the lead agency for formulating the integrated program, in coordination with the Board of Investments (BOI) and the National Economic and Development Authority (NEDA).
The PITC is authorized to handle the exportation of processed wood products for companies in the wood industry that lack expertise in export marketing. This includes negotiating contracts, acquiring shipping facilities, establishing depots abroad, and arranging financing for export commitments.
All government housing and housing-loan-granting institutions such as the National Housing Corporation (NHC), Government Service Insurance System (GSIS), and Social Security System (SSS) are required to ensure that at least 30% of the cost of all housing projects consist of wood components.
The Central Bank shall decrease the reserve requirements of banks that extend inventory financing of wood products, up to 20% of the necessary reserve requirements, to encourage such financing.
The Department of Public Works, Transportation and Communications (DPWTC), the Department of Public Highways (DPH), and the Philippine Ports Authority (PPA) are tasked with planning, constructing, or completing necessary roads, ports, and other infrastructure to enhance the wood processing industry.
They have exclusive joint responsibility to formulate and implement an orderly and efficient system to regulate the authorized exportation of logs.
The Department of Natural Resources, through the Bureau of Forest Development, in coordination with the Department of Local Government and Community Development and the Department of Labor, shall design a special assistance program for displaced workers and employees of the wood industry.
The Maritime Industry Authority is tasked to promote and develop the establishment of shipbuilding firms to serve the logging and wood industries in the Philippines.
The Philippine National Bank (PNB) will set aside funds for financing wood product inventory requirements, the Central Bank will reduce reserve requirements for banks extending inventory financing, and the Department of Finance will actively seek foreign loans to meet additional financial needs of the wood industry.