Article 30p. 30

NATURAL RESOURCES AND ENVIRONMENTAL LAWS STATUTES and IMPLEMENTING RULES AND REGULATIONS

The licensee, lessee 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 (Amending P.D. No. 705

(Revised Forestry Code of the Philippines), Presidential

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

Section 62. Service contracts. The Department Head,

may

in

the

national interest, allow forest products

licensees, lessees, or permittees to enter into service

contracts for financial, technical, management, or other

forms of assistance, in consideration of a fee, with any

foreign

person

or

entity

for

the

exploration,

development, exploitation or utilization of the forest

resources, covered by their license agreements, licenses,

leases or permits. Existing valid and binding service

contracts for financial, technical, management or other

forms of assistance are hereby recognized as such.

Section 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.

(Amending

P.D.

No.

705

(Revised

Forestry Code of the Philippines), Presidential Decree

No. 1559, [June 11, 1978])

G. REGULATORY FEES

Section 64. Charges, fees and bonds. The Department

Head, upon recommendation of the Director, shall fix

the amount of charges, rental, bonds and fees for the

different kinds of utilization, exploitation, occupation,

possession, or activity inside forest lands, the filing and

processing of applications therefor, the issuance and

renewal

of license agreements, licenses, leases and

permits, and for other services; Provided, That all fees

and charges presently being collected under existing

laws and regulations shall continue to be imposed and

collected until otherwise provided; Provided, further,

That timber taken and removed from private lands for

commercial purposes shall be exempt from the payment

of forest charges.

Section 65. Authority of Department Head to impose

other fees. In addition to the fees and charges imposed

under

existing

laws,

rules

and

regulations,

the

Department

Head

is

hereby

authorized,

upon

recommendation of the Director and in consultation

with representatives of the industries affected, to impose

other

fees

for

forest

protection,

management,

reforestation, and development, the proceeds of which

shall accrue into a special deposit of the Bureau as its

revolving fund for the aforementioned purposes.

Section 66. Collection and Disbursement. The collection

of the charges and fees above-mentioned shall be the

responsibility

of

the

Director

or

his

authorized

representative. The Director shall remit his monthly

collection of fees and charges mentioned in Section 64

to the Treasurer of the Philippines within the first ten (10)

days

of

the

succeeding month; Provided, That the

proceeds of the collection of the fees imposed under

Section 65 and the special deposit heretofore required of

licensees shall be constituted into a revolving fund for

such

purposes

and

be deposited in the Philippine

National Bank, as a special deposit of the Bureau. The

Budget Commissioner and the National Treasurer shall

effect

the

quarterly

releases

out

of

the

collection

accruing

to the general fund upon request of the

Director on the basis of a consolidated annual budget of

a work program approved by the Department Head and

the President.

In

the

case

of

the

special

deposit revolving fund,

withdrawals

therefrom

shall

be

effected

by

the

Department Head on the basis of a consolidated annual

budget prepared by the Director of a work program for

the specific purposes mentioned in Section 65.

Section 67. Basis of Assessment. Tree measurement shall

be the basis for assessing government charges and

other fees on timber cut and removed from forest lands,

alienable or disposable lands, and the civil reservations;

Provided, That until such time as the mechanics of tree

measurement

shall

have

been

developed

and

promulgated

in

rules

and

regulations,

the

present

scaling method provided for in the National Internal

Revenue Code shall be used.

The Director may, with the approval of the Department

Head, prescribe a new method of assessment of forest

products and collection of charges thereon based upon

the

result

of

production

cost

and

market

studies

undertaken by the Bureau; Provided, That such charges

shall not be lower than those now imposed.

H. UTILIZATION AND MANAGEMENT

(Incorporating Sections 230 to 238 and 297 of the NIRC

of 1977 into P.D. No. 705, Republic Act No. 7161 , [October

10, 1991])

SECTION 68. Measuring of Forest Products and Invoicing

and Collection of Charges Thereon. – The duties incident

to the measuring of forest products shall be discharged

by the Forest Management Bureau under regulations of

the Department of Environment and Natural Resources.

The invoicing and collection of the charges thereon shall

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