Policy, purpose, and import rationale
- The government’s policy is to sustainably manage the country’s forest resources and rationalize the development of wood-based industries to continuously provide the wood supply needed for economic growth (Section 1).
- The Order sets objectives to ensure uninterrupted supply of affordable finished wood materials for the domestic market (Section 2).
- The Order authorizes importation as a stop-gap measure until local supply from natural and plantation forests can adequately meet local needs toward economic growth, and to augment indigenous sources by utilizing existing wood processing plant capacities (Section 2).
- The Order aims to enable wood-based industries, including furniture and other downstream wood products export industries, to generate employment and earn foreign exchange (Section 2).
- The regulations implement a mechanism to monitor importation, entry, processing, and disposition of imported wood materials in coordination with Bureau of Customs (BOC) and Bureau of Plant Industry (BPI)–Plant Quarantine Office (BPI-PQO) (preamble).
- The Order aligns with a Memorandum of Agreement between the Philippine Wood Producers Association (PWPA) and DENR on wood industry rationalization and development (preamble).
Covered wood materials and eligible importers
- The regulations govern the entry and disposition of imported wood materials, specifically: logs, lumber, veneer, plywood, other wood based panels, poles and piles, pulpwood, and wood chips (preamble; Sections 3–7).
- A person may import wood materials only if qualified under Section 3 and subject to the required registration/authority steps (Section 3).
- A holder of a Timber License Agreement (TLA), Industrial Forest Management Agreement (IFMA), Wood Processing Plant Permit (WPP), or Certificate of Registration (CR) as a wood furniture manufacturer, agent, contractor, or dealer (for logs/poles and piles/lumber) issued by DENR may import (Section 3).
- Before availing import privilege, a holder of TLA, IFMA, and/or WPP must first have current local Log, commercial Poles and Piles, and/or Lumber Dealer’s permit recorded/registered with PWPA, and then or subsequently have it stamped by the Office of the Regional Executive Director (RED) as a valid Authority to Import (Section 3).
- An existing wood furniture manufacturer/agent/contractor/dealer without TLA, IFMA, or WPP must first secure the registration requirements under Section 8 before importing (Section 3).
Ports of entry and required entry/discharge steps
- Until the Secretary of Environment and Natural Resources designates other ports, entry is limited to the ports listed below (Section 4).
- For Luzon, the listed ports are: Poro Point, San Fernando, La Union; Sta-Ana, Cagayan; Mariveles, Bataan; Legaspi City; South Harbor, Manila; Batangas City (Section 4).
- For the Visayas, the listed ports are: Iloilo City; Cebu City; Bacolod City (Section 4).
- For Mindanao, the listed ports are: Cagayan City; Butuan City; Davao City; Zamboanga City; Parang, Maguindanao; General Santos City (Section 4).
Customs/BPI-PQO documentation and phytosanitary requirements
- Entry and discharge of imported wood materials must follow BOC requirements and procedures and BPI-PQO requirements and procedures (Section 5).
- The Customs District Collector or authorized agents must require the importer or representative to submit a copy of the Authority to Import (stamped permit under Section 3) or a DENR Certificate of Registration validly issued under Section 8 (Section 5).
- The Plant Quarantine Officer must require the carrier owner/agent (or the importer/representative) to submit the Phytosanitary Certificate issued by the country of origin as a vital document for the issuance of the inspection report (Section 5).
- Qualified DENR-designated technical personnel must be made available to BOC and/or BPI-PQO when officially requested by the latter (Section 5).
- For moving goods out of the port of entry to the point of destination, the Authority to Import or Certificate of Registration and BOC clearance are sufficient documents (Section 6).
Transport, destination reporting, and transport limits
- At arrival at the point of destination, the importer or authorized representative must provide the CENRO concerned with photostatic copies of:
(1) the Authority to Import or Certificate of Registration;
(2) the Phytosanitary Certificate indicating the kind of quarantine treatment requested and/or applied, if any;
(3) the Bill of lading; and
(4) the Summary of the Packing List (Section 6). - One week after the end of each month, the CENRO concerned through its Regional Office (RENRO) must submit to the Director of Forest Management Bureau (FMB) a monthly report on importation of the above wood materials, furnishing PWPA a copy (Section 6).
Storage, processing, disposition, and movement conditions
- The importer who is qualified under Section 3 may dispose of imported wood materials or processed/finished wood products (Section 7).
- Transport from the storage area or mill site to points of consignment or sales within defined areas allowed under existing regulations or within the region itself must be accompanied with pertinent sales invoice and/or delivery receipts only (Section 7).
- Transport of wood materials outside the defined area or region must be accompanied, in addition to the sales invoice and/or delivery receipts, with:
- photocopies of the Phytosanitary Certificate and the corresponding inspection Report of the Quarantine Officer;
- the Bill of lading; and
- the Summary of the Packing List duly authenticated by the CENRO concerned and/or authorized representatives (Section 7).
Registration requirements for agents, contractors, dealers
- An application for a Certificate of Registration to Import Wood Materials for an agent, contractor, or dealer is considered duly filed only if the following basic documents accompany the application (Section 8.1).
Documents required for registration applications
- The application must include an authenticated photostatic copy of registration as a single proprietorship, partnership, or corporation from the Department of Trade and Industry and/or the Securities and Exchange Commission (Section 8.1(a)).
- The application must include an authenticated photostatic copy of a written agreement or contract between the agent/contractor/dealer and the local principal authorizing procurement, sale, or supply of imported wood materials for at least one (1) year (Section 8.1(b)).
- The application must include a copy of a sale/supply contract between the agent/contractor/dealer and the foreign exporter for at least one (1) year, duly authenticated by the Philippine commercial attache/embassy at the country of origin (Section 8.1(c)).
- The application must include a certificate from PWPA that the type/kind and volume of the wood material(s) the applicant intends to import within the current year are well within the importation rationalization program of total “allowable capacity measure” (Section 8.1(d)).
Fees, bonds, and validity
- For every application for new or renewal of a Certificate of Registration, the following are collected:
- Application Fee: P500.00 (Section 8.2(a))
- Registration Fee: P400.00 (Section 8.2(b))
- Cash Bond: P10,000.00; if surety bond is used, the cash bond increases by at least 25% (Section 8.2(c)).
- A Certificate of Registration issued under this Order is valid for a period not exceeding one (1) year, and is renewable for a similar period upon application and compliance with existing DENR rules and regulations (Section 8.2 on Validity).
Duties of registered agents, contractors, dealers
- A holder of a Certificate of Registration must display the Certificate within the establishment premises exposed to public view (Section 8.3(a)).
- The holder must submit a monthly report to DENR not later than the fifth (5th) day of the succeeding month, including:
(b.1) Balance of previous months;
(b.2) Purchase(s) made during the month under report;
(b.3) Total volume/quantity handled;
(b.4) Volume processed/sold; and
(b.5) Balance at end of the month (Section 8.3(b)). - The holder must provide from the RED concerned (or authorized representative) the required written authority to import before disposing through sales the imported wood materials (Section 8.3(c)).
- The holder must allow authorized DENR personnel to inspect premises where imported wood materials are stored and to examine records on withdrawals or disposition (Section 8.3(d)).
- The holder must provide other related information required by the Secretary or authorized representative (Section 8.3(e)).
Defined terms
- “Agent” means a person authorized in writing by another person to act for and in behalf of the principal for production, procurement, sale, or other means of disposal of imported wood materials (Section 8.4(a)).
- “Contractor” means a person who enters into a written contract or agreement with another for whom he undertakes to produce, procure, furnish, or sell imported wood materials (Section 8.4(b)).
- “Commercial poles and piles” means large stakes or pieces of timber for foundation or harbor works (Section 8.4(c)).
- “Dealer” means a person, for himself or on commission, who sells or offers for sale imported wood materials (Section 8.4(d)).
Forest quarantine coordination committee
- The DENR must create a DENR Forest Quarantine Coordinating Committee (DFQCC) (Section 9).
- The FMB Director acts as chairman and the ERDB Director acts as co-chairman to represent DENR (Section 9).
- The Committee must formulate and monitor implementation of a joint DENR–Department of Agriculture Administrative Order defining forest quarantine procedures and conditions for the importation of wood materials (Section 9).
Penalties and consequences for prohibited entry
- A person found possessing imported wood materials that entered the country contrary to this Order is penalized in addition to penalties under existing laws, rules, and regulations (Section 10).
- The penalties include immediate suspension and/or cancellation of the person’s permits or certificate (Section 10).
- The penalties include confiscation of the imported wood materials and/or finished wood products derived therefrom (Section 10).
- The penalties include forfeiture of the required bond (Section 10).
Repeal, separability, and final effectivity
- This Order repeals DAO No. 94-17, DAO No. 97-08, and DAO No. 97-35, and all existing orders, circulars, and instructions inconsistent with this Order (Section 11).
- If any provision is declared void and illegal, the remaining provisions remain in full force and effect (Section 12).
- The Order’s effectivity is immediate upon acknowledgment by the UP Law Center and after publication in 15 days from the date of at least two (2) newspaper of general circulation (Section 13).
- The Order is signed by ANTONIO H. CERILLES, Secretary of DENR (signature block).