Question & AnswerQ&A (DENR ADMINISTRATIVE ORDER NO. 98-42)
The basic policy is to reforest denuded forestlands to conserve soil, water, wildlife, and other natural resources, and to expand forest resources for present and future generations. Sustainable management and equitable sharing of benefits from forest resources will be achieved through the Community Based Forest Management (CBFM) strategy.
The CBFM Agreement is a production sharing agreement which grants the participating community the privilege to benefit from sustainable utilization, management, and conservation of forest resources within the CBFM area.
The government shares in the benefits through increased natural resource protection and rehabilitation, forest charges, fees, and other taxes as agreed upon by both parties, and specifically from products harvested from its plantations in accordance with Section 4 of the Order.
They include: 1) Reforestation/forest plantation projects administered or established by DENR; 2) Plantation projects established by Timber License Agreement holders and other permittees in compliance with their permits; 3) Plantations of IFMA, SIFMA, ITP, CBFMA or other tenurial holders that were cancelled for cause; and 4) Other reforestation or plantation projects established with government funds, provided they are within production forests or management zones inside CBFM areas as affirmed by CRMF and AWP.
The government's share is 12.5% of the gross sales from the products or income derived from the utilization of government-owned forest plantations.
The People’s Organization receives 75% of the gross sales and the CBFM Fund receives 12% of the gross sales.
The scaling is jointly conducted by the Community Environment and Natural Resources Office (CENRO) and the People’s Organization (PO). The measured volume determines the basis for the allocation of shares as defined by the order.
The PO must remit to the DENR-CENRO within two months from issuance of the Certificate of Timber Origin, Certificate of Lumber Origin, or Certificate of Conveyance, the government’s 12.5% share and the 12% share for the CBFM Fund. Failure to remit can lead to suspension of harvesting operations.
The CENRO remits the government’s share to the National Treasury and deposits the amount for the CBFM Fund into the designated CBFM Fund account.
The order took effect fifteen (15) days after its publication in a newspaper of general circulation and submission to the UP Law Center.