Revised Forestry Code of the Philippines

Section 29

Incentives to the wood industry. The Department Head, in collaboration with other government agencies and the wood industry associations and other private entities in the country, shall evolve incentives for the establishment of an integrated wood industry in designated wood industry centers and/or economic area. The President of the Philippines, upon the recommendations of the National Economic Development Authority and the Department Head, may establish wood industry import-export centers in selected locations: Provided, That logs imported for such centers shall be subject to such precaution as may be imposed by the Bureau, in collaboration with proper government agencies, to prevent the introduction of pests, insects and/or diseases detrimental to the forests.

Section 30

While the expansion and integration of existing wood or forest products processing plants, as well as the establishment of new processing plants shall be encouraged, their locations and operations shall be regulated in order to rationalize the whole industry. No expansion or integration of existing processing plant nor establishment of new processing plant shall be allowed unless environmental considerations are taken into account and adequate raw material supply on a sustained-yield basis is assured. A long-term assurance of raw material source from forest concessions and/or from industrial tree plantations, tree farms or agro-forest farms whose annual allowable cut and/or whose harvest is deemed sufficient to meet the requirement of such processing plant shall govern, among others, the grant of the privilege to establish, install additional capacity or operate a processing plant. Henceforth within one year from the date of this law, as a condition to exercise of the privileges granted them under a license agreement, license, lease or permit, wood or forest products processors without forest concessions or areas that may be developed into industrial tree plantations, tree farms or agro-forest farms and licensees, lessees or permittees without processing plants shall jointly adopt any feasible scheme or schemes, other than log supply contract, for the approval of the Department Head: Provided, That no license agreement, license, lease or permit, including processing plant permit, shall be granted or renewed unless said scheme or schemes are submitted to, and approved by, the Department Head. All processing plants existing, to be expanded, to be integrated or to be established shall obtain operating permits, licenses and/or approval from the Bureau or the Department, as the case may be, and shall submit themselves to other regulations related to their operation. The Department Head may cancel, suspend, or phaseout all inefficient, wasteful, uneconomical or perennially short in raw material wood or forest products processing plants which are not responsive to the rationalization program of the government. (Amending P.D. No. 705 (Revised Forestry Code of the Philippines), Presidential Decree No. 1559, [June 11, 1978])

Section 31

Wood wastes, weed trees and residues. Timber licensees shall be encouraged and assisted to gather and save the wood wastes and weed trees in their concessions, and those with processing plants, the wood residues thereof, for utilization and conversion into wood by-products and derivatives.

Section 32

Unless otherwise directed by the President, upon recommendation of the Department Head, the entire production of logs by all timber licensees shall, beginning January 1, 1976 be processed locally: Provided, That the following conditions must be complied with by those who apply be allowed to export a portion of their log production to be determined by the Department Head such that the total log export of these timber licensees shall not exceed twenty-five percent (25%) of the total national allowable cut: 1) Timber licensees with existing viable processing plants or 2) Timber licensees with processing projects duly approved by the Department Head or "3) Timber licensees who have acquired viable processing machinery and equipment which will be installed and will become operational in accordance with the schedule approved by the Department Head; and 4) Timber licensees whose log export support, or are in line with, government-approved trade agreement; Provided, further, That no person shall be given a permit to export if he has not complied with the requirements on replanting and reforestation. Provided, That the President may, upon recommendation of the Department Head, whenever the export price of logs falls to unreasonably low level or whenever public interest so requires, cancel log exportation or reduce the maximum allowable proportion for log exports. All timber licensees who have no processing plant and who have no plan to establish the same shall, jointly with wood processors, adopt a scheme or schemes for the processing of the log production in accordance with Section 30 hereof. (Amending P.D. No. 705 (Revised Forestry Code of the Philippines), Presidential Decree No. 1559, [June 11, 1978])