75 OG No.

15, 3237 (April 9, 1979)

[ PRESIDENTIAL DECREE NO. 1559, June 11, 1978 ]

WHEREAS, there is need to further strengthen the Code to make it more responsive to present
realities and to the new thrust of government policies and programs on forest development and
conservation and rationalization of the wood industry;
WHEREAS, forest development and wood industry programs should complement, as well as
enhance, the rural development program of the government; and
WHEREAS, there is a need to provide sufficient incentives to encourage and further expand the
participation of the private sector in forest management, protection and development as well as
in wood processing activities within the concept of joint or co-management of the forest
resources;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the
powers vested in me by the Constitution, do hereby amend Presidential Decree No. 705 as
follows:
SECTION 1. Sections 3, 11, 14, 17, 19, 20, 22, 26 and 30 of the said Decree are amended as
follows:
"SEC. 3. Definitions—
"a) Public forest is the mass of lands of the public domain which has not been subject to the
present system of classification for the determination of which lands are needed for forest
purposes and which are not.
"b) Permanent forest or forest reserves refers to those lands of the public domain which have
been the subject of the present system of classification and declared as not needed for forest
purposes.
"c) Alienable or disposable lands refer to those lands of the public domain which have been the
subject of the present system of classification and declared as not needed for forest purposes.
"d) Forest lands includes the public forest, the permanent forest or forest reserves, and forest
reservations.
"e) Grazing land refers to that portion of the public domain which has been set aside, in view of
the suitability of its topography and vegetation, for the raising of livestock.
"f) Mineral lands refer to those lands of the public domain which have been classified as such by
the Secretary of Natural Resources in accordance with prescribed and approved criteria,
guidelines and procedure.
"g) Forest reservations refer to forest lands which have been reserved by the President of the
Philippines for any specific purpose or purposes.
"h) National park refers to a forest land reservation essentially of primitive or wilderness
character which has been withdrawn from settlement or occupancy and set aside as such
exclusively to preserve the scenery, the natural and historic objects and the wild animals or
plants therein, and to provide enjoyment of these features in such a manner as will leave them
unimpaired for future generations.
"i) Game refuge or bird sanctuary refers to a forest land designated for the protection of game
animals, birds and fish and closed to hunting and fishing in order that the excess population
may flow and restock surrounding areas.
"j) Marine park refers to any public offshore are delimited as habitat of rare and unique species
of marine flora and fauna.
"k) Seashore park refers to any public shore area delimited for outdoor recreation, sports
fishing, water skiing and related healthful activities.
"l) Watershed reservation is a forest land reservation established to protect or improve the
conditions of the water yield thereof or reduce sedimentation.
"m) Watershed is a land area drained by a stream or fixed body of water and its tributaries
having a common outlet for surface run-off.
"n) Critical watershed is a drainage area of a river system supporting existing and proposed
hydro-electric power, irrigation works or domestic water facilities needing immediate protection
or rehabilitation.
"o) Mangrove is a term applied to the type of forest occurring on tidal flat along the sea coast,
extending along stream where the water is brackish.
"p) Kaingin refers to a portion of the forest land which is subjected to shifting and/or permanent
slash-and-burn cultivation.
"q) Forest product means timber, pulpwood, firewood, bark, tree top, resin, gum, wood, oil,
honey, beeswax, nipa, rattan, or other forest growth such as grass, shrub, and flowering plant,
the associated water, fish, game, scenic, historical, recreational and geologic resources in forest
lands.
"r) Dipterocarp forest is a forest dominated by trees of the dipterocarp species, such as red
lauan, tanguile, tiaong, white lauan, almon, bagtikan and mayapis of the Philippine mahogany
group, apitong and the yakals.
"s) Pine forest is a forest type predominantly of pine trees.
"t) Industrial tree plantation refers to any forest land extensively planted to tree crops primarily to
supply raw material requirements of existing or proposed wood processing plants and related
industries.
"u) Tree farm refers to any small forest land or tract of land purposely planted to tree crops.
"v) Agro-forestry is a sustainable management for land which increases overall production,
combines agricultural crops, tree crops and forest plants and/or animals simultaneously or
sequentially, and applies management practices which are compatible with the cultural patterns
of the local population.
"w) Multiple-use is the harmonized utilization of the land, soil, water, wildlife, recreation value,
grass and timber of forest lands.
"x) Selective logging is the systematic removal of the nature, over-mature and defective trees in
such manner as to leave adequate number and volume of healthy residual trees of the desired
species necessary to assure a future crop of timber, and forest cover for the protection and
conservation of soil, water and wildlife.
"y) Seed tree system is a silvicultural system characterized by partial clearcutting leaving seed-
trees to regenerate the area.
"z) Healthy residual refers to a sound or slightly injured tree of the commercial species left after
logging.
"aa) Sustained-yield management implies continuous or periodic production of forest products in
a working unit for the purpose of achieving at the earliest practicable time an approximate
balance between growth and harvest or use. This is generally applied to the commercial timber
resources and is also applicable to the water, grass, wildlife, and other renewable resources of
the forest.
"bb) Processing plant is any mechanical setup, device, machine or combination of machines
used for the conversion of logs and other forest raw materials into lumber, veneer, plywood,
fiberboard, blackboard, paper board, pulp, paper or other finished wood products.
"cc) Lease is a privilege granted by the State to a person to occupy and possess, in
consideration of specified rental, any forest land of the public domain in order to undertake any
authorized activity therein.
"dd) License is a privilege granted by the State to a person to utilize forest resources within any
forest land, without any right of occupation and possession over the same, to the exclusion of
others, or establish and operate a wood-processing plant, or conduct any activity involving the
utilization of any forest resources.
"ee) License agreement is a privilege granted by the State to a person to utilize forest resources
within any forest land with the right of possession and occupation thereof to the exclusion of
others, except the government, but with the corresponding obligation to develop, protect and
rehabilitate the same in accordance with the terms and conditions set forth in said agreement.
"ff) Permit is a short-term privilege or authority granted by the State to a person to utilize any
limited forest resources or undertake a limited activity within any forest land without any right of
occupation and possession therein.
"gg) Annual allowable cut is the volume of materials, whether of wood or other forest products,
that is authorized to be cut yearly from a forest.
"hh) Cutting cycle is the number of years between two major harvests in the same working unit
and/or region.
"ii) Forest ecosystem refers to the living and non-living components of a forest and their
interaction.
"jj) Silviculture is the establishment, development, reproduction and care of forest trees.
"kk) Rationalization is the organization of a business or industry using management principles,
systems and procedures to attain stability, efficiency and profitability of operation.
"ll) Forest officer means any official or employee of the Bureau who has been appointed or
delegated by law or by competent authority to execute, implement or enforce the provisions of
this Code, other related laws, as well as their implementing regulations.
"mm) Private right means or refers to titled rights of ownership under existing laws, and in the
case of national minority to rights of possession existing at the time a license is granted under
this Code, which possession may include places of abode and worship, burial grounds, and old
clearings, but exclude productive forest inclusive of logged-over areas, commercial forests and
established plantations of forest trees and trees of economic values.
"nn) Person includes natural as well as juridical person."
"SEC. 11. Manpower and policy development.—The Bureau shall establish and operate an in-
service training center for the purpose of upgrading and training its personnel and new
employees.
"The Bureau shall also set aside adequate funds to enable personnel to obtain specialized
education and training in local or foreign colleges or institutions.
"There shall be established in the College of Forestry, University of the Philippines at Los
Baños, in coordination with the Department of Natural Resources and the wood industry, a
Forestry Development Center which shall conduct basic policy researches in forestry and
develop or help develop an effective machinery for forestry policy formulation and
implementation. To help defray the cost of operating said Center, it is authorized to receive
assistance from the wood industry and other sources."
"SEC. 14. Existing pasture leases in forest lands.—Forest lands which are not reservations and
which are the subject of pasture leases shall be classified as grazing lands and areas covered
by pasture permits shall remain forest lands until otherwise classified under the criteria,
guidelines and methods of classification to be prescribed by the Department Head: Provided,
That the administration, management and disposition of grazing lands shall remain under the
Bureau."
"SEC. 17. Establishment of boundaries of forest lands.—All boundaries between permanent
forests and alienable or disposable lands shall be clearly marked and maintained on the ground,
with infrastructure or roads, or concrete monuments at intervals of not more than five hundred
(500) meters in accordance with established procedures and standards, or any other visible and
practicable signs to insure protection of the forest.
"In all cases of boundary conflicts, reference shall be made to the Philippine Coast and
Geodetic Survey Topo map."
"SEC. 19. Multiple use.—The numerous beneficial uses of the timber, land, soil, water, wildlife,
grass and recreation or aesthetic value of forest lands and grazing lands shall be evaluated and
weighted before allowing their utilization, exploitation, occupation or possession thereof, or the
conduct of any activity therein.
"Only the utilization, exploitation, occupation or possession of any forest lands and grazing
lands, or any activity therein, involving one or more of its resources, which will produce the
optimum benefits to the development and progress of the country and the public welfare,
without impairment or with the least injury to its resources, shall be allowed.
"All forest reservations may be open to development or uses not inconsistent with the principal
objectives of the reservation: Provided, That critical watersheds, national parks and established
experimental forests shall not be subject to commercial logging or grazing operations, and game
refuges, bird sanctuaries, marine and seashore parks shall not be subject to hunting or fishing
and other activities of commercial nature."
"SEC. 20. License agreement, license, lease or permit.—No person may utilize, exploit, occupy,
possess or conduct any activity, within any forest and grazing land, or establish, install, add and
operate any wood or forest products processing plant, unless he had been authorized to do
under a license agreement, license, lease or permit: Provided, That when the national interest
so requires, the President may amend, modify, replace, or rescind any contract, concession,
permit, license, or any other form of privilege granted herein: Provided, further, That upon the
recommendation of the appropriate government agency, the President may, pending the
conduct of appropriate hearing, order the summary suspension of any such contract,
concession, license, permit, lease or privilege granted under this decree for violation of any of
the condition therein such as those pertaining but not limited to reforestation, pollution,
environmental protection, export limitation or such condition as are prescribed by the Minister of
Natural Resources in daily issued regulations.
"SEC. 22. Silvicultural and harvesting system.—In any logging operation in production forests
within forest lands, the proper silvicultural and harvesting system that will promote optimum
sustained yield shall be practiced, to wit:
"a) For dipterocarp forest, selective logging with enrichment or supplemental planting when
necessary.
"b) For pine or mangrove forest, the seed tree system with planting when necessary.
Provided, That subject to the approval of the Department Head, upon recommendation of the
Director, any silvicultural and harvesting system that may be found suitable as a result of
research may be adopted: Provided, further, That no authorized person shall cut, harvest or
gather any timber, pulpwood, or other products of logging unless he plants three times of the
same variety for every tree cut or destroyed by such logging or removal of logs. Any violation of
this provision shall be sufficient ground for the immediate cancellation of the license, agreement,
lease or permit.
"SEC. 26. Annual allowable cut.—The annual allowable cut or harvest of any particular forest
land under a license agreement, license, lease or permit shall be determined on the basis of the
size of the area, the volume and kind of harvestable timber or forest products and healthy
residuals, seed trees and reproduction found therein, and the established cutting cycle and
rotation thereof.
"No person shall cut, harvest and gather any particular timber, pulpwood, firewood and other
forest products unless be has been authorized under Section 20 hereof to do so and the
particular annual allowable cut thereof has been granted.
"In the public interest and in accordance with Section 21 hereof, the Department Head shall
review all existing annual allowable cut and thereupon shall prescribe the level of annual
allowable cut for the common dipterocarp timber, softwood and hardwood timber cutting of
which is not prohibited, pulpwood, firewood and other forest products using as bases the factors
as well as the updated aerial photographs and field inventories of such forest land: Provided,
That pending the completion of such review and appropriate amendment of the annual
allowable cut in existing license agreement, license, lease or permit, existing annual allowable
cut that not sufficiently supports wood or forest products processing plant or that will support
duly approved processing expansion program or new processing projects may be allowed to
continue without change: Provided further, That no additional or adjustment in annual allowable
cut shall be made until after such a review has been made."
"SEC. 30. Rationalization of the wood or forest products industry.—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 iron 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
maybe, and shall submit themselves to other regulations related to their operation.
"The Department Head may cancel, suspend, or phaseout all inefficient, wasteful, uneconomical
or perenially short in raw material wood or forest products processing plants which are not
responsive to the rationalization program of the government."
SEC. 2. Section 32, as amended by Presidential Decree No. 865, is further amended to read as
follows:
"SEC. 32. Log production and processing.—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 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."
SEC. 3. Sections 33, 34, 35, 36, 53, 55, 61, 62, 63, 68, 69, 71 and 76 of the same Decree are
amended to read as follows:
"SEC. 33. Lands to be reforested and/or afforested—Lands to be reforested and/or afforested
are as follows:
"1. Public forest lands—
"a) Bare or grass-covered tracts of forest lands;
"b) Brushlands or tracts of forest lands generally covered with brush, which need to be
developed to increase their productivity;
"c) Open tracts of forest lands interspersed with patches of forest;
"d) Denuded or inadequately timbered areas proclaimed by the President as forest reserves and
reservations as critical watersheds, national parks, game refuge, bird sanctuaries, national
shrines, national historic sites;
"e) Inadequately-stock forest lands within forest concessions;
"f) Portions of areas covered by pasture leases or permits needing immediate reforestation;
"g) River banks, easements, road right-of-ways, deltas, swamps, former river beds, and
beaches.
"2. Private Lands—
"a) Portions of private lands required to be reforested or planted to trees pursuant to
Presidential Decree Nos. 953 and 1153 and other existing laws."
"SEC. 34. Industrial tree plantations, tree farms and Agro-forestry farms.—A lease for a period
of fifty (50) years for the establishment of an industrial tree plantations, tree farm or agro-
forestry farm, may be granted by the Department Head, upon recommendation of the Director,
to any person qualified to develop and exploit natural resources, over timber or forest lands of
the public domain categorized in Section 33 (1) hereof except those under paragraphs (d) and
(g) with a minimum area of one hundred (100) hectares for industrial tree plantations and agro-
forestry farms and ten (10) hectares for tree farms: Provided, That the size of the area that may
be granted under each category shall, in each case, depend upon the capability of the lessee to
develop or convert the area into productive condition within the term of the lease.
"The lease may be granted under such terms and conditions as the Department Head may
prescribe, taking into account, among others, the raw material needs of forest based and other
industries and the maintenance of a wholesome ecological balance.
"Trees and other products raised within the industrial tree plantation, tree farm or agro-forestry
farm belong to the lessee who shall have the right to sell, contract, convey, or dispose of said
planted trees and other products in any manner he sees fit, in accordance with existing laws,
rules and regulations.
"Reforestation projects of the Government, or portion thereof, which, upon field evaluation, are
found to be more suitable for, or can better be developed as industrial tree plantations, tree
farms or agro-forestry farms, in terms of benefits to the Government and the general
surrounding area, may be the subject of a lease under this section."
"SEC. 35. Priority.—Over any suitable area covered by a timber license agreement or permit,
the priority to establish industrial tree plantation, tree farms or agro-forestry farm shall be given
to the holder thereof after the Bureau had determined the suitability of such area and has set
aside the same for the purpose.
"The priority herein granted must, however, be availed of within a reasonable period otherwise
the area shall be declared open to any qualified person and consequently segregated from the
licensee's or permittee's area."
Priority shall also be given to the establishment of communal industrial tree plantations by
barangays, municipalities or cities and provinces.
SEC. 36. Incentives.—To encourage qualified persons to engage in industrial tree plantation,
tree farm and/or agro-forest farm, the following incentives are granted:
"a) Payment of a nominal filing fee of fifty centavos (P0.50) per hectare.
"b) No rental shall be collected during the first five (5) years from the date of the lease; from the
sixth year to the tenth year, the annual rental shall be fifty centavos (P0.50) per hectare; and
thereafter, the annual rental shall be one peso (P1.00) per hectare: Provided, That lessees of
areas long denuded, as certified by the Director and approved by the Department Head, shall
be exempted from the payment of rental for the full term of the lease which shall not exceed
twenty-five (25) years; for the first five (5) year following the renewal of the lease, the annual
rental shall be fifty centavos (P0.50) per hectare; and thereafter, the annual rental shall be one
peso (1.00) per hectare: Provided, further, That notwithstanding the foregoing, no rental shall be
collected from a lessee who, upon verification by the Bureau, substantially meets the schedule
of development of the industrial tree plantation, the tree farm, or agro-forestry farm, as the case
may be, as prescribed in the development plan submitted to, and approved by the Ministry
Head, upon recommendation of the Director;
"c) The forest charges payable by a lessee on the timber and other forest products grown and
cut or gathered in an industrial tree plantation, tree farm, or agro-forestry farm shall only be
twenty-five percent (25%) of the regular forest charges prescribed in the National Internal
Revenue Code;
"d) Exemption from the payment of the percentage tax levied in Title V of the National Internal
Revenue Code when the timber and forest products are sold, bartered or exchanged by the
lessee, whether in their original state or not, as well as exemption from all forms of sales tax,
local and municipal taxes, and from the real property tax under the provisions of Presidential
Decree No. 853;
"e) A lessee shall not be subject to any obligation prescribed in, or arising out of, the provisions
of the National Internal Revenue Code on withholding of tax at source upon interest paid on
borrowings incurred for development and operation of the industrial tree plantation, tree farm, or
agro-forestry farm;
"f) Except when public interest demands, the boundaries of an area covered by an industrial
tree plantation, tree farm, or agro-forestry farm lease, once established on the ground, shall not
be altered or modified;
"g) Amounts expended by a lessee in the development and operation of an industrial tree
plantation, tree farm, or agro-forestry farm prior to the time when the production state is
reached, may, at the option of the lessee, be regarded as ordinary and necessary business
expenses or as capital expenditures;
"h) The Board of Investments shall, notwithstanding its nationality requirement on projects
involving natural resources, classify industrial tree plantations, tree farms and agro-forestry
farms as pioneer areas of investment under its annual priority plan, to be governed by the rules
and regulations of said Board;
"i) Approved industrial tree plantations, tree farms, and agro-forestry farms shall be given priority
in securing credit assistance from the government and government-supported financing
institutions which shall set aside adequate funds for lending to the lessee and/or investor at
reasonable interests rates;
"j) The lessee and its field employees and workers shall be exempted from the provisions of
Presidential Decree No. 1153;
"k) Government institutions administering or financing programs and projects requiring wood
materials shall specify the purchase of, or utilize, manufactured products derived from trees
grown and harvested from industrial tree plantations, tree farms or agro-forestry farms,
whenever possible;
"l) No wood, wood products or wood-derivated products including pulp, paper and paperboard
shall be imported if the same are available in retired quantities and reasonable prices, as may
be certified by the Department Head, from artificial or man-made forests, or local processing
plants manufacturing the same;
"m) No processing plant of whatever nature or type, made of, or utilizing, wood as primary
materials shall be allowed to be established, expanded or integrated, and operated without a
long-term assurance of raw materials source from forest concessions and/or from industrial tree
plantations, tree farms or agro-forestry farms in accordance with Section 30 hereof;
"n) Timber grown and harvested from industrial tree plantations, tree farms and agro-forestry
farms may be exported without restriction in quantity or volume, and if the exporter is the same
person or firm qualified and allowed to export logs under the provisions of this Decree, such
timber from plantations/farms may be exported exclusive of the quantity or volume authorized
under Section 32 hereof: Provided, That the rentals on the forest land and the forest plantation
timber shall have been paid: Provided, further, That the export of the plantation timber shall be
covered by a certificate to export issued by the Department Head on a yearly basis; Provided,
finally, That the Department Head may at any time review the exportation of timber harvested
from the plantations/farms and either reduce or totally suspend the export of such plantation
timber whenever public interest so requires; and
"o) Free technical advice from government foresters and farm technicians.
"The Department Head may provide other incentives in addition to those hereinabove granted to
promote industrial tree plantations, tree farms and agro-forestry farms in special areas such as,
but not limited to, those where there are no roads or where roads are inadequate, or areas with
rough topography and remote areas far from processing plants."
"SEC. 53. Criminal prosecution.—Kaingineros, squatters, cultural minorities and other
occupants who entered into forest lands and grazing lands before May 19, 1975, without permit
or authority, shall not be prosecute: Provided, That they do not increase their clearings:
Provided, further, That they undertake, within two (2) months from notice thereof, the activities
to be imposed upon them by the Bureau in accordance with management plan calculated to
conserve and protect forest resources in the area: Provided, finally, That kaingineros, squatters
cultural minorities and other occupants shall, whenever the best land use of the area so
demands as determined by the Director, be ejected and relocated to the nearest accessible
government resettlement area."
"SEC. 55. Wildlife.—All measures shall be adopted to conserve wildlife. The Director shall
regulate the hunting of wildlife in forest lands in order to maintain an ecological balance of flora
and fauna."
"SEC. 61. Transfers.—Unless authorized by the Department Head, no license, lessee, or
permittee may transfer, exchange, sell or convey his license agreement, license, lease or
permit, or any of his rights or interest therein, or any of his assets used in connection therewith.
"The licensee, leassee or permittee shall be allowed to transfer or convey his license
agreement, license, lease or permit only if the license, lease or permit has been in existence for
at least three (3) years; the licensee, lessee or permittee has not violated any forestry law, rule
or regulation and has been faithfully complying with the terms and conditions of the license
agreement, license, lease or permit; the transferee has all the qualifications and none of the
disqualifications to hold a license agreement, license, lease or permit; there is no evidence that
such transfer or conveyance is being made for purposes of speculation; and the transferee shall
assume all the obligations of the transferor.
"As used in this section, the term "assets" shall not include cattle and other livestocks or animals
raised in grazing lands and forest lands, and planted trees and other products raised in
industrial tree plantations, tree farms and agro-forestry farms."
"SEC. 63. Equity sharing.—Every corporation holding a license agreement, license, lease or
permit to utilize, exploit, occupy or possess any forest land, or conduct any activity therein, or
establish and operate a wood-processing plant, shall within one (1) year after the effectivity of
this amendatory Decree, formulate and submit to the Department Head for approval a plan for
the sale of at least ten percent (10%) of its subscribed capital stock in favor of employees,
laborers and the general public.
"The plan shall be so implemented that the sale of the shares of stock shall be effected by the
corporation not later than the sixth year of its operation, or the first year of the effectivity of this
amendatory Decree, if the corporation has been in operation for more than five (5) years prior to
such effectivity.
"No corporation shall be issued any license agreement, license, lease or permit after the
effectivity of this amendatory Decree, unless it submits such a plan and the same is approved
for implementation within the sixth year of its operation.
"The Department Head shall promulgate the necessary rules and regulations to carry out the
provisions of this section, particularly on the determination of the manner of payment, factors
affecting the selling price, establishment of priorities in the purchase of the shares of stock, and
the preparation of a fund to ensure the financial capability of the deserving employees and
laborers. The industries concerned shall extend all assistance in the promulgation of policies on
the matter, such as the submission of all data and information relative to their operation,
personnel management and asset evaluation."
"SEC. 68. Cutting, gathering and/or collecting timber or other products without license.—Any
person shall cut, gather, collect, or remove timber or other forest products from any forest land,
or timber from alienable or disposable public land or from private land whose title has no
limitation on the disposition of forest products found therein, without any authority under a
license agreement, lease, license or permit, shall be punished with the penalty imposed under
Arts. 309 and 310 of the Revised Penal Code: Provided, That in the case of partnership,
association or corporation, the officers who ordered the cutting, gathering, or collection 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 forest
products so cut, gathered, collected or removed, as well as the machinery, equipment,
implements and tools used therein and the forfeiture of his improvements in the area; Provided,
That timber or forest products cut, gathered, collected or removed from a license area shall be
delivered to the licensee, lessee, or permittee in whose area the forest products were cut,
gathered, collected or removed, free from claims of the illegal cutter, but subject to the payment
of the corresponding forest charges. Should the licensee refuse to accept the products, the
same may be confiscated in favor of the government to be disposed in accordance with law,
regulation or policy on the matter."
SEC. 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 for oat 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 of 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.
"SEC. 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."
"SEC. 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."
SEC. 4. The same Decree is amended by inserting after Section 80 thereof, new sections which
shall read as follows:
SEC. 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.
SEC. 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."
SEC. 5. Appropriation.—The sum of three million pesos is hereby authorized to be appropriated
out of any fund in the National Treasury not otherwise appropriated, for the operation of the
Forestry Development Center for the current fiscal year. Thereafter, the appropriation for said
Center shall be included in the appropriations for the University of the Philippines.
SEC. 6. Repealing Clause.—The Pasture Land Act (C.A. No. 452) and its implementing rules
and regulations and other laws, rules and regulations in conflict with the provisions of this
Decree are repealed.
SEC. 7. This Decree shall take effect immediately.
Done in the City of Manila, this 11th day of June, in the year of Our Lord, nineteen hundred and
seventy-eight.
(Sgd.) FERDINAND E.
MARCOS
President of the Philippines

By the President:

(Sgd.) JACOBO C.
CLAVE
Presidential Executive
Assistant
 Source: Supreme Court E-Library | Date created: March 30, 2015
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