Law Summary
Manpower and Policy Development
- Establishment of an in-service training center by the Bureau for personnel upgrading.
- Provision of funds for specialized education and training locally and abroad.
- Creation of a Forestry Development Center at the University of the Philippines at Los Baños for research and policy development.
- The Forestry Development Center may receive assistance from the wood industry and other sources.
Existing Pasture Leases in Forest Lands
- Forest lands under pasture leases classified as grazing lands; areas under pasture permits remain forest lands until reclassified.
- Management and disposition of grazing lands remain under the Bureau.
Establishment of Boundaries of Forest Lands
- Boundaries between permanent forests and alienable lands must be clearly marked and maintained with physical markers every 500 meters.
- Conflicts on boundaries are to be resolved referencing official Philippine Coast and Geodetic Survey Topo maps.
Multiple-Use Principle
- Forest lands' various resources and uses must be evaluated to optimize benefits without impairing resources.
- Certain reservations like critical watersheds, national parks, and sanctuaries are protected from commercial logging, grazing, hunting, and fishing.
Authorization and Regulation of Utilization of Forest Lands
- Activities within forest and grazing lands require authorization via license agreement, license, lease, or permit.
- The President can modify or rescind privileges for national interest.
- Possible summary suspension of privileges for violations relating to reforestation, pollution, environmental protection, or export limits.
Silvicultural and Harvesting Systems
- Production forest logging must use silvicultural systems promoting sustained yield.
- Selective logging with enrichment planting in dipterocarp forests.
- Seed tree system with planting for pine or mangrove forests.
- Any cutting requires planting threefold of the same variety for trees cut.
- Violation results in immediate cancellation of privileges.
Annual Allowable Cut
- Determined based on area size, volume and kind of harvestable forest products, residuals, seed trees, and cutting cycles.
- Cutting without authorization or beyond allowable cut is prohibited.
- Department Head must review and prescribe annual allowable cuts using updated field data.
- Temporary continuation of existing allowable cuts is permitted pending review.
Rationalization of the Wood or Forest Products Industry
- Expansion and establishment of processing plants encouraged but regulated for sustainability.
- Environmental considerations and assured sustained raw material supply are requirements.
- Long-term raw material source assurance required from concessions or plantations.
- Processors without concessions or lease areas must adopt schemes other than log supply contracts for raw materials.
- Operating permits and compliance with regulations are mandatory.
- Cancellation or suspension of inefficient or unsustainable processing plants authorized.
Log Production and Processing
- All timber production must be locally processed starting 1976 unless otherwise directed.
- Log exports limited to 25% of national allowable cut, subject to conditions relating to viable processing plants or approved projects.
- Licensees without processing plants must adopt processing schemes in coordination with wood processors.
Reforestation and Afforestation
- Lands requiring reforestation include bare lands, brushlands, denuded areas, inadequately stocked concessions, areas needing immediate reforestation, and certain public lands like river banks and swamps.
- Portions of private lands required to be reforested under other laws.
Industrial Tree Plantations, Tree Farms, and Agro-Forestry Farms
- Leases granted for up to 50 years over classified lands (excluding certain protected areas).
- Minimum area requirements: 100 hectares for industrial plantations and agro-forestry farms; 10 hectares for tree farms.
- Leases depend on lessee's capability and ecological considerations.
- Lessees own trees and forest products and may sell or dispose of them.
- Government reforestation projects may be leased as plantations or farms.
Priority in Establishment of Plantations
- Holders of timber licenses have priority to set up plantations or farms if areas are suitable.
- Priority must be exercised within a reasonable time or areas opened to others.
- Communal plantations by local governments are prioritized.
Incentives for Industrial Tree Plantations and Farms
- Nominal filing and graduated rental fees with possible exemptions for denuded lands.
- Reduced forest charges to 25% of regular rates.
- Exemptions from various taxes including sales and real property taxes.
- No withholding tax on interest for borrowings related to operations.
- Boundaries once established generally cannot be altered except for public interest.
- Development expenses may be deductible.
- Classified as pioneer investment areas for government assistance.
- Priority in credit assistance with favorable terms.
- Exemption from certain labor law provisions.
- Government programs encouraged to use plantation-grown wood products.
- Import restrictions on wood products if locally available.
- Export of plantation-grown timber allowed without quantity restrictions, subject to payment and certification.
- The Department Head may regulate export levels.
- Free technical assistance from government forestry experts.
Criminal Prosecution Exemptions
- Kaingineros, squatters, cultural minorities, and other occupants before a cutoff date are not prosecuted if they do not expand clearings and comply with conservation activities.
- Eviction and relocation occur if best land use requires.
Wildlife Conservation
- Measures mandated for wildlife conservation.
- The Director regulates hunting to maintain ecological balance.
Restrictions on Assignment and Transfer of Rights
- Transfers of licenses, leases, or permits require Department Head approval and must meet conditions like no prior violations and assumption of obligations.
- Assets excluded from transfer include livestock and planted forest products.
Equity Sharing for Corporations
- Corporations with forest-related licenses must plan to sell at least 10% of their capital stock to employees, laborers, and the general public within specified periods.
- Submission and approval of the plan is a prerequisite for license issuance or renewal.
- Rules to be promulgated on sale procedures, pricing, priorities, and financial support for employees.
Penalties for Illegal Cutting and Harvesting
- Unauthorized cutting, gathering, or removal of timber incurs penalties under the Revised Penal Code.
- Officers of corporations ordering illegal cutting are liable, with alien officers subject to deportation.
- Confiscation of illegally harvested products, tools, and improvements follows conviction.
Penalties for Unlawful Occupation and Destruction
- Occupation or destruction without authorization leads to fines (€500-€20,000), imprisonment (6 months to 4 years depending on offense), and payment of multiples of rental fees or charges.
- Repeat offenses increase penalties.
- Eviction and forfeiture of improvements and equipment ordered.
- Government officials committing offenses are dismissed and disqualified from office.
Protection of National Parks and Recreational Areas
- Unauthorized occupation or damage in national parks penalized with fines and restoration orders.
- Hunting without a permit within parks is similarly penalized.
- Eviction and forfeiture of improvements and collected natural resources enforced.
- Corporate officers responsible for employees’ acts are personally liable.
- Half of fines may accrue to local governments responsible for enforcement.
Coercion and Influence
- Penalties imposed on persons who coerce or influence public officers to improperly classify or release land or decide cases in their favor.
- Fines and imprisonment prescribed, with specific penalties for land-related offences.
Enforcement by Armed Forces and Administrative Authority
- Armed Forces to organize regional special forces to enforce forestry laws under agreed procedures.
- The Director has authority to impose fines administratively for violations where fines are principal penalties.
Appropriations and Repealing Clauses
- Initial funding for Forestry Development Center appropriated.
- Conflicting laws, including the Pasture Land Act and related regulations, repealed.
Effectivity
- The Decree takes effect immediately upon promulgation.