Article 31p. 31

NATURAL RESOURCES AND ENVIRONMENTAL LAWS STATUTES and IMPLEMENTING RULES AND REGULATIONS

be

done

by

the

Forest

Management

Bureauunder

regulations approved by the Secretary of Environment

and Natural Resources.

SECTION 69. Mode of Measuring Timber. – 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 roundtimber 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. Charges on Timber Cut in Forestland. –

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. Charges on Firewood, Branches and Other

Recoverable Wood Wastes of Timber. – 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. Charges on Minor Forest Products. – 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. Tax Exemptions of Forest Products Lawfully

Removed under Gratuitous License. – 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. Time, Manner and Place of Payment of

Forest Charges. – 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

© 2018 Compiled by RGL

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