Creation of Subtitle H Under Chapter III of the Revised Forestry Code
- Incorporated Sections 68 to 76 of the Forestry Code placed under a new subtitle: Subtitle H.
- Subtitle H focuses on Utilization and Management of forest resources.
Charges on Timber Cut in Forestland
- Forest charges imposed at 25% of the actual FOB market price per cubic meter for timber cut from forestland, applicable to all timber groups (first to fourth).
- For pulpwood and matchwood, forest charges are set at 10% of the FOB market price.
Charges on Firewood, Branches, and Recoverable Wood Wastes
- A fixed forest charge of P10.00 per cubic meter applies to firewood, branches, and recoverable wood wastes used for finished products.
- Cutting of mangrove species for these purposes is prohibited.
- Firewood may only come from third or fourth group wood, except by joint authorization of DENR and Department of Agriculture Secretaries allowing first and second group wood removal from lands better suited for agriculture.
Exemption and Charges on Minor Forest Products
- Forest products not covered under previous sections are exempt from forest charges.
- Exception for rattan, gums and resins, beeswax, guta-percha, almaciga resin, and bamboo, which are subject to a 10% charge based on FOB market price.
Implementation and Determination of Forest Charges and Market Prices
- Forest charge rates become effective upon approval of the Act.
- Publication requirements: Official Gazette or two national newspapers and postings in DENR field offices.
- The Secretary of Environment and Natural Resources shall determine the actual FOB market price annually through a committee comprising representatives from DENR, NEDA, DTI, BIR, and the wood/furniture industry and consumer sectors.
- The committee formulates guidelines considering production costs, timber species and grading, government share, reforestation, taxes, risks, and reasonable profit margins for domestic and export markets.
- Forest charges apply to timber and forest products gathered from public forestlands, alienable and disposable lands, and private lands.
- Collected forest charges substitute administrative charges on environment and other fees.
- Trees from industrial plantations and private lands under approved applications are exempt from forest charges.
Repeal and Renumbering of Provisions
- Section 73 of the Forestry Code (formerly Section 235 of NIRC) repealed.
- Renumbering of several sections to maintain consistency in the Forestry Code; Sections 68 to 83 are renumbered to Sections 77 to 92.
Effectivity of the Act
- The Act takes effect 15 days after publication in a newspaper of general circulation.