Article 26p. 26

NATURAL RESOURCES AND ENVIRONMENTAL LAWS STATUTES and IMPLEMENTING RULES AND REGULATIONS

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])

C. REFORESTATION

Section 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.

(Amending P.D. No. 705 (Revised Forestry Code of the

Philippines), Presidential Decree No. 1559, [June 11, 1978])

Section 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. (Amending P.D. No. 705 (Revised

Forestry Code of the Philippines), Presidential Decree

No. 1559, [June 11, 1978])

Section 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. (Amending P.D.

No.

705 (Revised Forestry Code of the Philippines),

Presidential Decree No. 1559, [June 11, 1978])

Section 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 (1.00) 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) years 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

pesos

(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;

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