Revised Forestry Code of the Philippines

Section 69

except as hereinbelow provided, all timber shall be measured and manifested in the round or squared, before being sawn or manufactured. The volume of all round timber shall e ascertained by multiplying the area of the small end by the length of the log, the diameter of the log to be measured exclusive of the bark; but if the end of a log is irregular the average diameter shall be used; and in order to ascertain the volume of a log more than eight meters long, the diameter of the middle of said log, or the average of the diameters at both ends thereof shall be used as basis. If a log in the round cut under license, is measured and manifested by forest officers, the Director of the Forest Management Bureau in this respect, an appeal shall lie to his Department head, whose decision shall be final. The manifest of timber cut by licensees operating sawmills in or near the forest shall be attested by forest officers whenever practicable. The volume of squared timber shall be ascertained by multiplying the average of the cross section measured by the length, to which forty per centum shall be added for loss in squaring: Provided, however, that if squared timber cut under license is measured and manifested by forest officers, the Director of the Forest Management Bureau shall make due allowance for rot, cavities, or other natural defects; but from any decision of the Director of the Forest Management Bureau in this respect, an appeal shall lie to his Ministry Head, whose decision shall be final. The privilege of manifesting timber after squaring shall however, be granted only to licensees who have squared their logs in the forests with the ax and intend to take it to the market in this form. If sawn or otherwise manufactured timber is found which has not been manifested in accordance with the provisions hereof, the corresponding forest charges shall be assessed ontwice the volume of the actual contents of such sawn or manufactured timber.

Section 70

There shall be collected charges on each cubic meter of timber cut in forestland, whether belonging to the first, second, third or fourth group, twenty-five percent (25%) of the actual FOB market price based on species and grading: Provided, however, That, in the case of pulpwood and matchwood cut in forestland, forest charges on each cubic meter shall be ten percent (10%) of the actual FOB market price.

Section 71

Except for all mangrove species whose cutting shall be banned, there shall be collected forest charges on each cubic meter of firewood cut in forestland, branches and other recoverable wood wastes of timber, such as timber ends, tops and stumps, when used as raw materials for the manufacture of finished products, Ten pesos (P10.00). Only third or fourth group wood can be taken for firewood. However, if jointly authorized by the Secretaries of both the Departments of Environment and Natural Resources, and Agriculture, first and second group woods may be removed for firewood purposes from land which is more valuable for agricultural than for forest purposes.

Section 72

All other forest products of forestland which are not covered by the preceding sections shall be exempt from any of all forest charges, except rattan, gums and resins, beeswax, guta-percha, almaciga resin and bamboo which shall be charged at ten percent (10%) of the actual FOB market price.

Section 73

Effectivity and Application of Forest Charges and Determination of Market Price of Forest Products. – The rates of forest charges provided for in Sections 70, 71 and 72 hereof shall be effective upon approval of this Act. The new rates shall be published in the Official Gazette or in two (2) newspapers of national circulation and shall also be posted in conspicuous places in the different Department of Environment and Natural Resources field offices. The actual FOB market price of forest products shall be justly determined once a year by the Secretary of Environment and Natural Resources: Provided, That he shall cause the creation of a committee to be composed of representatives of the Department of Environment and Natural Resources, the National Economic and Development Authority, the Department of Trade and Industry, the Bureau of Internal Revenue and the wood and furniture industry and consumers sectors which shall formulate the criteria and/or guidelines in the determination of the actual FOB market price to be used as the basis for the assessment of the ad valorem tax, taking into consideration production cost (developing cost, contingencies and miscellaneous cost), species and grade of timber, government share, reforestation, tariff duties, taxes, risk involved and a reasonable margin of profit for domestic and export market prices for wood and wood products. These forest charges shall be applied to naturally growing timber and forest products gathered within public forestlands, alienable and disposable lands and private lands. Forest charges collected shall be in lieu of the administrative charge on environment and other fees and charges imposed thereon: Provided, That planted trees and other forest products harvested from industrial tree plantations and private lands covered by existing tiller or by approved land application are exempted from payment of forest charges.

Section 74

No charges shall be collected on forest products removed in conformity with the terms of a gratuitous license of the Forest Management Bureau and in compliance with the law and the regulations of such Bureau.

Section 75

Tax Exemption of Trees and Products Removed from Public Lands Under a Tree Farm Lease. – No charges shall be collected on trees and products removed from public lands planted to ipil-ipil and/or falcata under a tree farm lease with the Government.

Section 76

The charges on forest products herein imposed shall be payable at the time of the removal from or utilization of the same within the concession area. Before removing any forest product subject to forest charges, the person liable to the said tax shall file, in duplicate, a return setting forth the quantity, volume and the specie of the forest product to be removed and pay the forest charges due thereon to the revenue district officer, collection agent, or duly authorized treasurer of the municipality of the place where the timber concession is located or where the forest products were gathered and removed, except as hereinbelow provided. With the approval of the Director, lumber may be removed from a sawmill situated on a licensed citing area upon the giving of a bond conditioned upon the monthly payment of the charges due on the output of such mill. He may also authorize the shipment of forest products under auxiliary invoices without the prepayment of charges in special cases where the prepayment of the charges at the point of origin would result in undue hardship, if the owner or concessionaire shall first file a bond with the Forest Management Bureau in the form and amount and with such sureties as the Director may require, conditioned upon the payment of the forest charges at the point of destination or at such time and place as the Director may direct. However, if any forest products are removed, the Director of the Forest Management Bureau or his duly authorized representatives shall first be notified of such removal on a form prescribed for the purpose to be filed with the revenue district officer of the place where the concession is located or where the forest products were gathered and removed. It shall be the duty of every licensee to make a true and complete return in duplicate setting forth the quantity, volume and the specie of the forest product removed during each calendar quarter, or the balance, if any, in cases where payment are made upon removal, and pay the taxes due thereon within twenty days after the end of each quarter to the revenue district officer, collection agent, or duly authorized treasurer of the municipality of the place where the timber concession is located or where the forest products were gathered and removed. In case the taxes are not paid within the period prescribed above, there shall be added thereto a surcharge of twenty-five per centum, the increment to be a part of the tax and the entire unpaid amount shall be subject to interest at the rate of twenty per centum per annum. Where a false or fraudulent return is made, there shall be added to the taxes a surcharge of fifty per centum of their amount, and the entire unpaid amount shall be subject to interest at the rate of twenty per centum per annum. The amounts so added shall be collected in the same manner and as part of the taxes, as the case may be. Section 77 (68). Cutting, Gathering and/or collecting Timber or Other Forest Products Without License. — Any person who shall cut, gather, collect, remove timber or other forest products from any forest land, or timber from alienable or disposable public land, or from private land, without any authority, or possess timber or other forest products without the legal documents as required under existing forest laws and regulations, shall be punished with the penalties imposed under Articles 309 and 310 of the Revised Penal Code: Provided, That in the case of partnerships, associations, or corporations, the officers who ordered the cutting, gathering, collection or possession shall be liable, and if such officers are aliens, they shall, in addition to the penalty, be deported without further proceedings on the part of the Commission on Immigration and Deportation. The court shall further order the confiscation in favor of the government of the timber or any forest products cut, gathered, collected, removed, or possessed, as well as the machinery, equipment, implements and tools illegally used in the area where the timber or forest products are found. (Amending Section 68 of P.D. No. 705 As Amended (Forestry Code of the Philippines), Executive Order No. 277, [July 25, 1987]) Section 77-A (68-A).Administrative Authority of the Department Head or His Duly Authorized Representative to Order Confiscation. — In all cases of violations of this Code or other forest laws, rules and regulations, the Department Head or his duly authorized representative, may order the confiscation of any forest products illegally cut, gathered, removed, or possessed or abandoned, and all conveyances used either by land, water or air in the commission of the offense and to dispose of the same in accordance with pertinent laws, regulations or policies on the matter. Section 77-B (68-B).Rewards to Informants. — Any person who shall provide any information leading to the apprehension and conviction of any offender for any violation of this Code or other forest laws, rules and regulations, or confiscation of forest products shall be given a reward in the amount of twenty per centum (20%) of the proceeds of the confiscated forest products. (Amending Section 68 of P.D. No. 705 As Amended (Forestry Code of the Philippines), Executive Order No. 277, [July 25, 1987]) See IRR of Sec 77-B (68-B) here Section 78 (69). Unlawful occupation or destruction of forest lands and grazing lands. — Any person who enters and occupies or possesses, or makes kaingin for his own private use or for others, any forest land or grazing land without authority under a license agreement, lease, license or permit, or in any manner destroys such forest land or grazing land or part thereof, or causes any damage to the timber stand and other products and forest growth found therein, or who assists, aids or abets any other person to do so, or sets a fire, or negligently permits a fire to be set in any forest land or grazing land, or refuses to vacate the area when ordered to do so, pursuant to the provisions of Section 53 hereof shall, upon conviction, be fined in an amount of not less than five hundred pesos (P500.00), nor more than twenty thousand pesos (P20,000.00) and imprisoned for not less than six (6) months nor more than two (2) years for each such offense, and be liable to the payment to ten (10) times the rental fees and other charges which would have accrued had the occupation and use of the land been authorized under a license agreement, lease, license or permit: Provided, That in the case of an offender found guilty of making kaingin, the penalty shall be imprisonment for not less than two (2) nor more than four (4) years and a fine equal to eight (8) times the regular forest charges due on the forest products destroyed, without prejudice to the payment of the full cost of production of the occupied area as determined by the Bureau: Provided, further, That the maximum of the penalty prescribed herein shall be imposed upon the offender who repeats the same offense and double the maximum of the penalty upon the offender who commits the same offense for the third time. In all cases the Court shall further order the eviction of the offender from the land and the forfeiture to the government of all improvements made and all vehicles, domestic animals and equipment of any kind used in the commission of the offense. If not suitable for use by the Bureau, said vehicles, domestic animals, equipment and improvements shall be sold at public auction, the proceeds of which shall accrue to the Development Fund of the Bureau. In case the offender is a government official or employee, he shall, in addition to the above penalties be deemed automatically dismissed from office and permanently disqualified from holding any elective or appointive position. (Amending P.D. No. 705 (Revised Forestry Code of the Philippines), Presidential Decree No. 1559, [June 11, 1978]) Section 79 (70). Pasturing Livestock. Imprisonment for not less than six (6) months nor more than two (2) years and a fine equal to ten (10) times the regular rentals due, in addition to the confiscation of such livestock and all improvement introduced in the area in favor of the government, shall be imposed upon any person, who shall, without authority under a lease or permit, graze or cause to graze livestock in forest lands, grazing lands and alienable and disposable lands which have not as yet been disposed of in accordance with the Public Land Act; Provided, That in case the offender is a corporation, partnership or association, the officers and directors thereof shall be liable. Section 80 (71). Illegal occupation of national parks system and recreation areas and vandalism therein. — Any person who, shall, without permit, occupy for any length of time any portion of the national parks system or shall, in any manner cut, destroy, damage or remove timber or any species of vegetation or forest cover and other natural resources found therein, or shall mutilate, deface or destroy objects of natural beauty or of scenic value within areas in the national parks system, shall be fined not less than five hundred (P500.00) pesos or more than twenty thousand (P20,000.00) pesos exclusive of the value of the thing damaged: Provided, That if the area requires rehabilitation or restoration as determined by the Director, the offender shall also be required to restore or compensate or the restoration of the damage: Provided, further, That any person who, without proper permit shall hunt, capture or kill any kind of bird, fish or wild animal life within the area in the national parks system shall be subject to the same penalty: Provided, finally, That the Court shall order eviction of the offender from the land and the forfeiture in favor of the government of all timber or any species or vegetation and other natural resources collected or removed, and any construction or improvement made thereon by the offender. If the offender is an association or corporation, the president or manager shall be directly responsible and liable for the act of his employees or laborers. In the event that an official or employee of a city or municipal government is primarily responsible for detecting and convicting the violator of the provisions of this section, fifty per centum (50%) of the fine collected shall accrue to such municipality or city for the development of local parks. (Amending P.D. No. 705 (Revised Forestry Code of the Philippines), Presidential Decree No. 1559, [June 11, 1978]) Section 81 (72). Destruction of wildlife resources. Any person violating the provisions of Section 55 of this Code, or the regulations promulgated thereunder, shall be fined not less than one hundred (P100.00) pesos for each such violation and in addition shall be denied a permit for a period of three (3) years from the date of the violation. Section 82 (73). Survey by unauthorized person. Imprisonment for not less than two (2) nor more than four (4) years, in addition to the confiscation of the implements used in the violation of this section including the cancellation of the license, if any, shall be imposed upon any person who shall, without permit to survey from the Director, enter any forest lands, whether covered by a license agreement, lease, license, or permit, or not, and conduct or undertake a survey for whatever purpose. Section 83 (74). Misclassification and survey by government official or employee. Any public officer or employee who knowingly surveys, classifies, or recommends the release of forest lands as alienable and disposable lands contrary to the criteria and standards established in this Code, or the rules and regulations promulgated hereunder, shall, after an appropriate administrative proceeding, be dismissed from the service with prejudice to re-employment, and upon conviction by a court of competent jurisdiction, suffer an imprisonment of not less than one (1) year and a fine of not less than one thousand, (P1,000.00) pesos. The survey, classification or release of forest lands shall be null and void. Section 84 (75). Tax declaration on real property. Imprisonment for a period of not less than two (2) nor more than four (4) years and perpetual disqualification from holding an elective or appointive office, shall be imposed upon any public officer or employee who shall issue a tax declaration on real property without a certification from the Director of Forest Development and the Director of Lands or their duly designated representatives that the area declared for taxation is alienable and disposable lands, unless the property is titled or has been occupied and possessed by members of the national cultural minorities prior to July 4, 1955. Section 85 (76). Coercion and influence. — Any person who coerces, influences, abets or persuades the public officer or employee referred to in Sections 74 and 75 commit any of the acts mentioned therein shall suffer imprisonment of not less than one (1) year and pay a fine of five hundred (P500.00) pesos for every hectare or a fraction thereof so improperly surveyed, classified or released. In all other cases, any person who coerces, influences, abets or persuades the public officer or employee by using power and influence in deciding any pending case or matter in his favor shall be punished by a fine of not more than five thousand pesos (P5,000.00) and imprisonment of not less than one (1) year. (Amending P.D. No. 705 (Revised Forestry Code of the Philippines), Presidential Decree No. 1559, [June 11, 1978]) Section 86 (77). Unlawful possession of implements and devices used by forest officers. Imprisonment for a period of not less than (2) nor more than four (4) years and a fine of not less than one thousand pesos (P1,000.00), nor more than ten thousand (P10,000.00) pesos in addition to the confiscation of such implements and devices, and the automatic cancellation of the license agreement, lease, license or permit, if the offender is a holder thereof, shall be imposed upon any person who shall, without authority from the Director or his authorized representative, make, manufacture, or has in his possession any government marking, hatchet or other marking implement, or any marker, poster, or other devices officially used by officers of the Bureau for the marking or identification of timber or other products, or any duplicate, counterfeit, or imitation thereof, or make or apply a government mark on timber or any other forest products by means of any authentic or counterfeit device, or alter, deface, or remove government marks or signs, from trees, logs, stumps, firewoods or other forest products, or destroy, deface, remove or disfigure any such mark, sign, poster or warning notices set by the Bureau to designate the boundaries of cutting areas, municipal or city forest or pasture, classified timber land, forest reserve, and areas under the national park system or to make any false mark or imitation of any mark or sign herein indicated; Provided, That if the offender is a corporation, partnership or association, the officers and directors thereof shall be liable. Section 87 (78). Payment, collection and remittance of forest charges. Any person who fails to pay the amount due and payable under the provisions of this Code, the National Internal Revenue Code, or the rules and regulations promulgated thereunder, shall be liable to the payment of a surcharge of twenty-five per centum (25%) of the amount due and payable. Any person who fails or refuses to remit to the proper authorities said forest charges collectible pursuant to the provisions of this Code or the National Internal Revenue Code, or who delays, obstructs or prevents the same, or who orders, causes or effects the transfer or diversion of the funds for purposes other than those specified in this Code, for each such offense shall, upon conviction, be punished by a fine of not exceeding one hundred thousand pesos (P100,000.00) and/or imprisonment for a period of not exceeding six (6) years in the discretion of the Court. If the offender is a government official or employee, he shall, in addition, be dismissed from the service with prejudice to reinstatement and with disqualification from holding any elective or appointive office. If the offender is a corporation, partnership or association, the officers and directors thereof shall be liable. Section 88 (79). Sale of wood products. No person shall sell or offer for sale any log, lumber, plywood or other manufactured wood products in the international or domestic market unless he complies with grading rules and established or to be established by the Government. Failure to adhere to the established grading rules and standards, or any act of falsification of the volume of logs, lumber, or other forest products shall be a sufficient cause for the suspension of the export, sawmill, or other license or permit authorizing the manufacture or sale of such products for a period of not less than two (2) years. A duly accredited representative of the Bureau shall certify to the compliance by the licensees with grading rules. Every dealer in lumber and other building material covered by this Code shall issue an invoice for each sale of such material and such invoice shall state that the kind, standard and size of material sold to each purchaser in exactly the same as described in the invoice. Any violation of this Section shall be sufficient ground for the suspension of the dealer's license for a period of not less than two (2) years and, in addition thereto, the dealer shall be punished for each such offense by a fine of not less than two hundred pesos (P200.00) or the total value of the invoice, whichever is greater. Section 89 (80).Arrest: institution of criminal actions. — A forest officer or employee of the Bureau or any personnel of the Philippine Constabulary/Integrated National Police shall arrest even without warrant any person who has committed or is committing in his presence any of the offenses defined in this Chapter. He shall also seize and confiscate, in favor of the Government, the tools and equipment used in committing the offense, and the forest products cut, gathered or taken by the offender in the process of committing the offense. The arresting forest officer or employee shall thereafter deliver within six (6) hours from the time of arrest and seizure, the offender and the confiscated forest products, tools and equipment and file the proper complaint with, the appropriate official designated by law to conduct preliminary investigation and file information in Court. If the arrest and seizure are made in the forest, far from the authorities designated by law to conduct preliminary investigations, the delivery to, and filing of the complaint with, the latter shall be done within a reasonable time sufficient to the place of delivery. The seized products, materials and equipment shall be immediately disposed of in accordance with forestry administrative orders promulgated by the Department Head. The Department Head may deputized any agency, barangay or barrio official, or any qualified person to protect the forest and exercise the power or authority provided for in the preceding paragraph. Reports and complaints regarding the commission of any of the offenses defined in this Chapter, not committed in the presence of any forest officer or employee, or any personnel of the Philippine Constabulary/Integrated National Police or any of the deputized officers or officials, shall immediately be investigated by the forest officer assigned in the area or any personnel of the Philippine Constabulary/Integrated National Police where the offense was allegedly committed, who shall thereupon receive the evidence supporting the report or complaint. If there is a prima facie evidence to support the complaint or report, the investigating forest officer and/or members of the Philippine Constabulary/Integrated National Police shall file the necessary complaint with the appropriate official authorized by law to conduct a preliminary investigation of criminal case and file an information in Court. (Amending Section 80 of P.D. No. 705 As Amended (Revised Forestry Code of the Philippine), Presidential Decree No. 1775, [January 14, 1981]) Section 89-A (80-A). The Armed Forces of the Philippines shall organize a special force in every region to help enforce the provisions of this act under such rules and regulations as may be agreed upon by the Secretaries of National Defense and Natural Resources. (Amending P.D. No. 705 (Revised Forestry Code of the Philippines), Presidential Decree No. 1559, [June 11, 1978]) Section 89-B (80-B). Administrative authority of the Director to impose fines. — In all cases of violations of this Code and other forest laws, rules and regulations where fine is the principal penalty, the Director is hereby authorized to impose administratively the penalty consisting of the fine. (Amending P.D. No. 705 (Revised Forestry Code of the Philippines), Presidential Decree No. 1559, [June 11, 1978]) SPECIAL CLAUSES Section 90 (81). Separability Clause. Should any provision herein be subsequently declared unconstitutional, the same shall not affect the validity or the legality of the other provisions. Section 91 (82). Repealing Clause. Presidential Decree Nos. 330, and 389, C.A. No. 452, R.A. No. 4715 and all laws, orders, rules and regulations or any part thereof which are inconsistent herewith are hereby repealed or amended accordingly. Section 92 (83). Date of Effectivity. This Code shall take effect immediately upon promulgation. Done in the City of Manila, this 19th day of May, in the year of Our Lord, nineteen hundred and seventy-five. Laws on Conservation, Mines, and Land Use Management