REPUBLIC ACT 9003 January 26, 2001

AN ACT PROVIDING FOR AN ECOLOGICAL SOLID WASTE

MANAGEMENT PROGRAM, CREATING THE NECESSARY
INSTITUTIONAL MECHANISMS AND INCENTIVES, DECLARING
CERTAIN ACTS PROHIBITED AND PROVIDING PENALTIES,
APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representative of the

Philippines in Congress assembled:

CHAPTER I
BASIC POLICIES

Article 1
General Provisions

Section 1. Short Title - This Act shall be known as the "Ecological Solid
Waste Management Act of 2000."

Section 2. Declaration of Policies - It is hereby declared the policy of the

State to adopt a systematic, comprehensive and ecological solid waste
management program which shall:

(a) Ensure the protection of the public health and

environment;

(b) Utilize environmentally-sound methods that maximize the

utilization of valuable resources and encourage resource
conservation and recovery;

(c) Set guidelines and targets for solid waste avoidance and
volume reduction through source reduction and waste
minimization measures, including composting, recycling, re-
use, recovery, green charcoal process, and others, before
collection, treatment and disposal in appropriate and
environmentally sound solid waste management facilities in
accordance with ecologically sustainable development
principles;

(d) Ensure the proper segregation, collection, transport,

storage, treatment and disposal of solid waste through the
formulation and adoption of the best environmental practice
in ecological waste management excluding incineration;
 (e) Promote national research and development programs for
improved solid waste management and resource
conservation techniques, more effective institutional
arrangement and indigenous and improved methods of waste
reduction, collection, separation and recovery;

(f) Encourage greater private sector participation in solid

waste management;

(g) Retain primary enforcement and responsibility of solid

waste management with local government units while
establishing a cooperative effort among the national
government, other local government units, non- government
organizations, and the private sector;

(h) Encourage cooperation and self-regulation among waste

generators through the application of market-based
instruments;

(i) Institutionalize public participation in the development and

implementation of national and local integrated,
comprehensive, and ecological waste management
programs; and

(j) Strength the integration of ecological solid waste

management and resource conservation and recovery topics
into the academic curricula of formal and non-formal
education in order to promote environmental awareness and
action among the citizenry.

Article 2
Definition of Terms

Section 3. Definition of Terms - For the purposes of this Act:

(a) Agricultural waste shall refer to waste generated from

planting or harvesting of crops, trimming or pruning of plants
and wastes or run-off materials from farms or fields;

(b) Bulky wastes shall refer to waste materials which cannot

be appropriately placed in separate containers because of
either its bulky size, shape or other physical attributes. These
include large worn-out or broken household, commercial, and
industrial items such as furniture, lamps, bookcases, filing
cabinets, and other similar items;
(c) Bureau shall refer to the Environmental Management
Bureau;

(d) Buy-back center shall refer to a recycling center that

purchases of otherwise accepts recyclable materials from the
public for the purpose of recycling such materials;

(e) Collection shall refer to the act of removing solid waste

from the source or from a communal storage point;

(f) Composting shall refer to the controlled decomposition of

organic matter by micro-organisms, mainly bacteria and
fungi, into a humus-like product;

(g) Consumer electronics shall refer to special waste that

includes worn-out, broken, and other discarded items such as
radios, stereos, and TV sets;

(h) Controlled dump shall refer to a disposal site at which

solid waste is deposited in accordance with the minimum
prescribed standards of site operation;

(i) Department shall refer to the Department of Environment

and Natural Resources;

(j) Disposal shall refer to the discharge, deposit, dumping,

spilling, leaking or placing of any solid waste into or in an
land;

(k) Disposal site shall refer to a site where solid waste is

finally discharged and deposited;

(l) Ecological solid waste management shall refer to the

systematic administration of activities which provide for
segregation at source, segregated transportation, storage,
transfer, processing, treatment, and disposal of solid waste
and all other waste management activities which do not harm
the environment;

(m) Environmentally acceptable shall refer to the quality of

being re-usable, biodegradable or compostable, recyclable
and not toxic or hazardous to the environment;

(n) Generation shall refer to the act or process of producing

solid waste;
(o) Generator shall refer to a person, natural or juridical, who
last uses a material and makes it available for disposal or
recycling;

(p) Hazardous waste shall refer to solid waste management

or combination of solid waste which because of its quantity,
concentration or physical, chemical or infectious
characteristics may:

(1) cause, or significantly contribute to an increase in

mortality or an increase in serious irreversible, or
incapacitating reversible, illness; or

(2) pose a substantial present or potential hazard to

human health or the environment when improperly
treated, stored, transported, or disposed of, or
otherwise managed;

(q) Leachate shall refer to the liquid produced when waste

undergo decomposition, and when water percolate through
solid waste undergoing decomposition. It is contaminated
liquid that contains dissolved and suspended materials;

(r) Materials recovery facility - includes a solid waste transfer

station or sorting station, drop-off center, a composting
facility, and a recycling facility;

(s) Municipal waste shall refer to wastes produced from

activities within local government units which include a
combination of domestic, commercial, institutional and
industrial wastes and street litters;

(t) Open dump shall refer to a disposal area wherein the solid
wastes are indiscriminately thrown or disposed of without due
planning and consideration for environmental and Health
standards;

(u) Opportunity to recycle shall refer to the act of providing a

place for collecting source-separated recyclable material,
located either at a disposal site or at another location more
convenient to the population being served, and collection at
least once a month of source-separated recyclable material
from collection service customers and to providing a public
education and promotion program that gives notice to each
person of the opportunity to recycle and encourage source
separation of recyclable material;

(v) Person(s) shall refer to any being, natural or judicial,

susceptible of rights and obligations, or of being the subject
of legal relations;

(w) Post-consumer material shall refer only to those materials

or products generated by a business or consumer which have
served their intended end use, and which have been
separated or diverted from solid waste for the purpose of
being collected, processed and used as a raw material in the
manufacturing of recycled product, excluding materials and
by-products generated from, and by-products generated
from, and commonly used within an original manufacturing
process, such as mill scrap;

(x) Receptacles shall refer to individual containers used for

the source separation and the collection of recyclable
materials;

(y) Recovered material shall refer to material and by products

that have been recovered or diverted from solid waste for the
purpose of being collected, processed and used as a raw
material in the manufacture of a recycled product;

(z) Recyclable material shall refer to any waste material

retrieved from the waste stream and free from contamination
that can still be converted into suitable beneficial use or for
other purposes, including, but not limited to, newspaper,
ferrous scrap metal, non-ferrous scrap metal, used oil,
corrugated cardboard, aluminum, glass, office paper, tin cans
and other materials as may be determined by the
Commission;

(aa) Recycled material shall refer to post-consumer material

that has been recycled and returned to the economy;

(bb) Recycling shall refer to the treating of used or waste

materials through a process of making them suitable for
beneficial use and for other purposes, and includes any
process by which solid waste materials are transformed into
new products in such a manner that the original product may
lose their identity, and which maybe used as raw materials for
the production of other goods or services: Provided, That the
collection, segregation and re-use of previously used
packaging material shall be deemed recycling under this Act;

(cc) Resource conversation shall refer to the reduction of the

amount of solid waste that are generated or the reduction of
overall resource consumption, and utilization of recovered
resources;

(dd) Resources recovery shall refer to the collection,

extraction or recovery of recyclable materials from the waste
stream for the purpose of recycling, generating energy or
producing a product suitable for beneficial use: Provided,
That such resource recovery facilities exclude incineration;

(ee) Re-use shall refer to the process of recovering materials

intended for the same or different purpose without the
alteration of physical and chemical characteristics;

(ff) Sanitary landfill shall refer to a waste disposal site

designed, constructed, operated and maintained in a manner
that exerts engineering control over significant potential
environment impacts arising from the development and
operation of the facility;

(gg) Schedule of Compliance shall refer to an enforceable

sequence of actions or operations to be accomplished within
a stipulated time frame leading to compliance with a
limitation, prohibition or standard set forth in this Act or any
rule of regulation issued pursuant thereto;

(hh) Secretary landfill shall refer to the Secretary of the

Department of Environment and Natural Resources;

(ii) Segregation shall refer to a solid waste management

practice of separating different materials found in solid waste
in order to promote recycling and re-use of resources and to
reduce the volume of waste for collection and disposal;

(jj) Segregation at source shall refer to a solid waste

management practice of separating, at the point of origin,
different materials found in solid waste in order to promote
recycling and re-use of resources and to reduce the volume
of waste for collection and disposal;

(kk) Solid waste shall refer to all discarded household,

commercial waste, non-hazardous institutional and industrial
waste, street sweepings, construction debris, agricultural
waste, and other non-hazardous/non-toxic solid waste.

Unless specifically noted otherwise, the term "solid waste" as

used in this Act shall not include:

(1) Waste identified or listed as hazardous waste of a

solid, liquid, contained gaseous or semisolid form
which may cause or contribute to an increase in
mortality or in serious or incapacitating reversible
illness, or acute/chronic effect on the health of persons
and other organisms;

(2) Infectious waste from hospitals such as equipment,

instruments, utensils, and fomites of a disposable
nature from patients who are suspected to have or
have been diagnosed as having communicable
diseases and must therefore be isolated as required
by public health agencies, laboratory wastes such as
pathological specimens (i.e. all tissues, specimens of
blood elements, excreta, and secretions obtained from
patients or laboratory animals) and disposable fomites
that may harbor or transmit pathogenic organisms, and
surgical operating room pathologic materials from
outpatient areas and emergency rooms; and

(3) Waste resulting from mining activities, including

contaminated soil and debris.

(ll) Solid waste management shall refer to the discipline

associated with the control of generation, storage, collection,
transfer and transport, processing, and disposal of solid
wastes in a manner that is in accord with the best principles
of public health, economics, engineering, conservation,
aesthetics, and other environmental considerations, and that
is also responsive to public attitudes;

(mm) Solid waste management facility shall refer to any

resource recovery system or component thereof; any system,
program, or facility for resource conservation; any facility for
the collection, source separation, storage, transportation,
transfer, processing, treatment, or disposal of solid waste;

(nn) Source reduction shall refer to the reduction of solid

waste before it enters the solid waste stream by methods
such as product design, materials substitution, materials re-
use and packaging restrictions;

(oo) Source separation shall refer to the sorting of solid waste

into some or all of its component parts at the point of
generation;

(pp) Special wastes shall refer to household hazardous

wastes such as paints, thinners, household batteries, lead-
acid batteries, spray canisters and the like. These include
wastes from residential and commercial sources that
comprise of bulky wastes, consumer electronics, white
goods, yard wastes that are collected separately, batteries,
oil, and tires. These wastes are usually handled separately
from other residential and commercial wastes;

(qq) Storage shall refer to the interim containment of solid

wastes after generation and prior to collection for ultimate
recovery or disposal;

(rr) Transfer stations shall refer to those facilities utilized to

receive solid wastes, temporarily store, separate, convert, or
otherwise process the materials in the solid wastes, or to
transfer the solid wastes directly from smaller to larger
vehicles for transport. This term does not include any of the
following:

(1) a facility whose principal function is to receive,

store, separate, convert or otherwise process in
accordance with national minimum standards, manure;

(2) a facility, whose principal function is to receive,

store, convert, or otherwise process wastes which
have already been separated for re-use and are
intended for disposals, and

(3) the operations premises of a duly licensed solid

waste handling operator who is receives, stores,
transfers, or otherwise processes wastes as an activity
incidental to the conduct of a refuse collection and
disposal business.

(ss) Waste diversion shall refer to activities which reduce or

eliminate the amount of solid waste from waste disposal
facilities;
 (tt) White goods shall refer to large worn-out or broken
household, commercial, and industrial appliances such as
stoves, refrigerators, dishwashers, and clothes washers and
dryers collected separately. White goods ate usually
dismantled for the recovery of specific materials (e.g., copper,
aluminum, etc.);(uu) Yard waste shall refer to wood, small or
chipped branches, leaves, grass clippings, garden debris,
vegetable residue that is recognized as part of a plant or
vegetable and other materials identified by the Commission.

CHAPTER II
INSTITUTIONAL MECHANISM

Section 4. National Solid Waste Management Commission - There is

hereby established a National Solid Waste Management Commission,
hereinafter referred to as the Commission, under the Office of the
President. The Commissioner shall be composed of fourteen (14)
members from the government sector and three members from the private
sector. The government sector shall be represented by the heads of the
following agencies in their ex officio capacity:

(1) Department of Environment and Natural Resources

(DENR);

(2) Department of the Interior and Local Government (DILG);

(3) Department of Science and Technology (DOST);

(4) Department of Public Works and Highways (DPWH);

(5) Department of Health (DOH);

(6) Department of Trade and Industry (DTI);

(7) Department of Agriculture (DA);

(8) Metro Manila Development Authority (MMDA);

(9) League of provincial governors;

(10) League of city mayors;

(11) League of municipal mayors;

(12) Association of barangay councils;

 (13) Technical Education and Skills Development Authority
(TESDA); and

(14) Philippine Information Agency.

The private sector shall be represented by the following:

(a) A representative from nongovernment organizations

(NGOs) whose principal purpose is to promote recycling and
the protection of air and water quality;

(b) A representative from the recycling industry; and

(c) A representative from the manufacturing or packaging

industry;

The Commission may, from time to time, call on any other concerned
agencies or sectors as it may deem necessary.

Provided, That representatives from the NGOs, recycling and

manufacturing or packaging industries shall be nominated through a
process designed by themselves and shall be appointed by the President
for a term of three (3) years.

Provided, further, That the Secretaries of the member agencies of the

Commission shall formulate action plans for their respective agencies to
complement the National Solid Waste Management Framework.

The Department Secretary and a private sector representative of the

Commission shall serve as chairman and vice chairman, respectively. The
private sector representatives of the Commission shall be appointed on the
basis of their integrity, high decree of professionalism and having
distinguished themselves in environmental and resource management. The
members of the Commission shall serve and continue to hold office until
their successors shall have been appointed and qualified. Should a
member of the Commission fail to complete his/her term, the unexpired
portion of the term. Finally, the members shall be entitled to reasonable
traveling expenses and honoraria.

The Department, through the Environmental Management Bureau, shall

provide secretariat support to the Commission. The Secretariat shall be
headed by an executive director who shall be nominated by the members
of the Commission and appointed by the chairman.

Section 5. Powers and Functions of the Commission - The Commission

shall oversee the implementation of solid waste management plans and
prescribe policies to achieve the objectives of this Act. The Commission
shall undertake the following activities.

(a) Prepare the national solid waste management framework;

(b) Approve local solid waste management plans in

accordance with its rules and regulations;

(c) Review and monitor the implementation of local solid

waste management plans;

(d) Coordinate the operation of local solid waste management

boards in the provincial and city/municipal levels;

(e) To the maximum extent feasible, utilizing existing

resources, assist provincial, city and municipal solid waste
management plans;

(f) Develop a model provincial, city and municipal solid waste

management plan that will establish prototypes of the content
and format which provinces, cities and municipalities may use
in meeting the requirements of the National Solid Waste
Management Framework;

(g) Adopt a program to provide technical and other capability

building assistance and support to local government units in
the development and implementation of source reduction
programs;

(h) Develop and implement a program to assist local

government units in the identification of markets for materials
that are diverted from disposal facilities through re-use,
recycling, and composting, and other environment-friendly
methods;

(i) Develop a mechanism for the imposition of sanctions for

the violations environmental rules and regulations;

(j) Manage the Solid Waste Management Fund;

(k) Develop and prescribe procedures for the issuance of

appropriate permits and clearances.
(l) Review the incentives scheme for effective solid waste
management, for purpose of ensuring relevance and
efficiency in achieving the objectives of this Act;

(m) Formulate the necessary education promotion and

information campaign strategies;

(n) Establish, after notice and hearing of the parties

concerned, standards, criteria, guidelines, and formula that
are fair, equitable and reasonable, in establishing tipping
charges and rates that the proponent will charge in the
operation and management of solid waste management
facilities and technologies.

(o) Develop safety nets and alternative livelihood programs

for small recyclers and other sectors that will be affected as a
result of the construction and/or operation of solid waste
management recycling plant or facility.

(p) Formulate and update a list of non-environmentally

acceptable materials in accordance with the provisions of this
Act. For this purpose, it shall be necessary that proper
consultation be conducted by the Commission with all
concerned industries to ensure a list that is based on
technological and economic viability.

(q) Encourage private sector initiatives, community

participation and investments resource recovery-based
livelihood programs for local communities.

(r) Encourage all local government agencies and all local

government units to patronize products manufactured using
recycled and recyclable materials;

(s) Propose and adopt regulations requiring the source

separation and post separation collection, segregated
collection, processing, marketing and sale of organic and
designated recyclable material generated in each local
government unit; and

(t) Study and review of the following:

(i) Standards, criteria and guidelines for promulgation

and implementation of an integrated national solid
waste management framework; and
 (ii) Criteria and guidelines for siting, design, operation
and maintenance of solid waste management facilities.

Section 6. Meetings - The Commission shall meet at least once a month.

The presence of at least a majority of the members shall constitute a
quorum. The chairman, or in his absence the vice-chairman, shall be the
presiding officer. In the absence of the heads of the agencies mentioned in
Sec. 4 of this Act, they may designate permanent representatives to attend
the meetings.

Section 7. The National Ecology Center - There shall be established a

National Ecology Center under the Commission which shall provide
consulting, information, training, and networking services for the
implementation of the provisions of this Act.

In this regard, it shall perform the following functions:

(a) Facilitate training and education in integrated ecological

solid waste management;

(b) Establish and manage a solid waste management

information data base, in coordination with the DTI and other
concerned agencies:

(1) on solid waste generation and management

techniques as well as the management, technical and
operational approaches to resource recovery; and

(2) of processors/recyclers, the list of materials being

recycled or bought by them and their respective prices;

(c) Promote the development of a recycling market through

the establishment of a national recycling network that will
enhance the opportunity to recycle;

(d) Provide or facilitate expert assistance in pilot modeling of

solid waste management facilities; and

(e) Develop, test, and disseminate model waste minimization

and reduction auditing procedures for evaluating options.

The National Ecology Center shall be headed by the director of the Bureau
in his ex officio capacity. It shall maintain a multi-sectoral, multi-disciplinary
pool of experts including those from the academe, inventors, practicing
professionals, business and industry, youth , women and other concerned
sectors, who shall be screened according to qualifications set by the
Commission.

Section 8. Role of the Departmen. - For the furtherance of the objectives

of this Act, the Department shall have the following functions:

(a) Chair the Commission created pursuant to this Act;

(b) Prepare an annual National Solid Waste Management

Status Report;

(c) Prepare and distribute information, education and

communication materials on solid waste management;

(d) Establish methods and other parameters for the

measurement of waste reduction, collection and disposal;

(e) Provide technical and other capability building assistance

and support to the LGUs in the development and
implementation of local solid waste management plans and
programs;

(f) Recommend policies to eliminate barriers to waste

reduction programs;

(g) Exercise visitorial and enforcement powers to ensure

strict compliance with this Act;

(h) Perform such other powers and functions necessary to

achieve the objectives of this Act; and

(i) Issue rules and regulations to effectively implement the

provisions of this Act.

Section 9. Visitorial Powers of the Department. - The Department or its

duly authorized representative shall have access to, and the right to copy
therefrom, the records required to be maintained pursuant to the provisions
of this Act. The Secretary or the duly authorized representative shall
likewise have the right to enter the premises of any generator, recycler or
manufacturer, or other facilities any time to question any employee or
investigate any fact, condition or matter which may be necessary to
determine any violation, or which may aid in the effective enforcement of
this Act and its implementing rules and regulations. This Section shall not
apply to private dwelling places unless the visitorial power is otherwise
judicially authorized.
Section 10. Role of LGUs in Solid Waste Management - Pursuant to the
relevant provisions of R.A. No. 7160, otherwise known as the Local
government code, the LGUs shall be primarily responsible for the
implementation and enforcement of the provisions of this Act within their
respective jurisdictions.

Segregation and collection of solid waste shall be conducted at the

barangay level specifically for biodegradable, compostable and reusable
wastes: Provided, That the collection of non-recyclable materials and
special wastes shall be the responsibility of the municipality or city.

Section 11. Provincial Solid Waste Management Board - A Provincial Solid

Waste Management board shall be established in every province, to be
chaired by the governor. Its members shall include:

(a) All the mayors of its component cities and municipalities;

(b) One (1) representative from the Sangguniang

Panlalawigan to be represented by the chairperson of either
the Committees on Environment or Health or their equivalent
committees, to be nominated by the presiding officer;

(c) The provincial health and/or general services officers,

whichever may be recommended by the governor;

(d) The provincial environment and natural resources officer;

(e) The provincial engineer;

(f) Congressional representatives from each congressional

district within the province;

(g) A representative from the NGO sector whose principal

purpose is to promote recycling and the protection of air and
water quality;

(h) A representative from the recycling industry;

(i) A representative from the manufacturing or packaging

industry; and

(j) A representative of each concerned government agency

possessing relevant technical and marketing expertise as
may be determined by the board.
The Provincial Solid Waste Management Board may, from time to time, call
on any other concerned agencies or sectors as it may deem necessary.

Provided, That representatives from the NGOs, recycling and

manufacturing or packaging industries shall be selected through a process
designed by themselves and shall be endorsed by the government agency
of representatives of the Board: Provided, further, that in the Province of
Palawan, the Board shall be chaired by the chairman of the Palawan
Council for Sustainable Development, pursuant to Republic Act No. 7611.

In the case of Metro Manila, the Board shall be chaired by the chairperson
of the MMDA and its members shall include:

(i) all mayors of its component cities and municipalities;

(ii) a representative from the NGO sector whose principal

purpose is to promote recycling and the protection of air and
water quality;

(iii) a representative from the recycling industry; and

(iv) a representative from the manufacturing or packaging

industry.

The Board may, from time to time, call on any other concerned agencies or
sectors as it may deem necessary.

Provided, That representatives from the NGOs, recycling and

manufacturing or packaging industries shall be selected through a process
designed by themselves and shall be endorsed by the government agency
representatives of the Board.

The Provincial Solid Waste Management Board shall have the following
functions and responsibilities:

(1) Develop a provincial solid waste management plan from

the submitted solid waste management plans of the
respective city and municipal solid waste management
boards herein created. It shall review and integrate the
submitted plans of all its component cities and municipalities
and ensure that the various plan complement each other, and
have the requisite components. The Provincial Solid Waste
Management Plan shall be submitted to the Commission for
approval.
The Provincial Plans shall reflect the general program of
action and initiatives of the provincial government and
implementing a solid waste management program that would
support the various initiatives of its component cities and
municipalities.

(2) Provide the necessary logistical and operational support

to its component cities and municipalities in consonance with
subsection (f) of Sec.17 of the Local Government Code;

(3) Recommend measures and safeguards against pollution

and for the preservation of the natural ecosystem;

(4) Recommend measures to generate resources, funding

and implementation of project and activities as specified in
the duly approved solid waste management plans;

(5) Identify areas within its jurisdiction which have common

solid waste management problems and are appropriate units
are planning local solid waste management services in
accordance with Section 41 hereof;

(6) Coordinate the efforts of the component cities and

municipalities in the implementation of the Provincial Solid
Waste Management Plan;

(7) Develop an appropriate incentive scheme as an integral

component of the Provincial Solid Waste Management Plan;

(8) Convene joint meetings of the provincial, city and

municipal solid waste management boards at least every
quarter for purposes of integrating, synchronizing, monitoring
and evaluating the development and implementation of its
provincial solid waste management plan;

(9) Represent any of its component city or municipality in

coordinating its resource and operational requirements with
agencies of the national government;

(10) Oversee the implementation of the Provincial Solid

Waste Management Plant;

(11) Review every two (2) years or as the need arises the
Provincial Solid Waste Management Plan for purposes of
ensuring its sustainability, viability, effectiveness and
 relevance in relation to local and international development in
the field of solid waste management; and

(12) Allow for the clustering of LGUs for the solution of

common solid waste management problems.

Section 12. City and Municipal Solid Waste Management Board - Each
city or municipality shall form a City or Municipal Waste Management
Board that shall prepare, submit and implement a plan for the safe and
sanitary management of solid waste generated in areas under in
geographic and political coverage.

The City or Municipal Solid Waste Management Board shall be composed

of the city or municipal mayor as head with the following as members:

a) One (1) representative of Sangguniang Panlungsod or the

Sangguniang Bayan, preferably chairpersons of either the
Committees on Environment or Health, who will be
designated by the presiding officer;

b) President of the Association of Barangay Councils in the

municipality or city;

c) Chairperson of the Sangguniang Kabataan Federation;

d) A representative from NGOs whose principal purpose is to

promote recycling and the protection of air and water quality;

e) A representative from the recycling industry;

f) A representative from the manufacturing or packaging

industry; and

g) A representative of each concerned government agency

possessing relevant technical and marketing expertise as
may be determined by the Board.

The City or Municipal Solid Waste Management Board may, from time to
time, call on any concerned agencies or sectors as it may deem necessary.

Provided, That representatives from NGOs, recycling and manufacturing or

packaging industries shall be selected through a process designed by
themselves and shall be endorsed by the government agency
representatives of the Board.
The City and Municipal Solid Waste Management Boards shall have the
following duties and responsibilities:

(1) Develop the City or Municipal Solid Waste Management

Plan that shall ensure the long-term management of solid
waste, as well as integrate the various solid waste
management plans and strategies of the barangays in its
area of jurisdiction. In the development of the Solid Waste
Management Plan, it shall conduct consultations with the
various sectors of the community;

(2) Adopt measures to promote and ensure the viability and

effective implementation of solid waste management
programs in its component barangays;

(3) Monitor the implementation of the City or Municipal Solid

Waste Management Plan through its various political
subdivisions and in cooperation with the private sector and
the NGOs;

(4) Adopt specific revenue-generating measures to promote

the viability of its Solid Waste Management Plan;

(5) Convene regular meetings for purposes of planning and

coordinating the implementation of the solid waste
management plans of the respective component barangays;

(6) Oversee the implementation of the City or Municipal Solid

Waste Management Plan;

(7) Review every two (2) years or as the need arises the City
or Municipal Solid Waste Management Plan for purposes of
ensuring its sustainability, viability, effectiveness and
relevance in relation to local and international developments
in the field of solid waste management;

(8) Develop the specific mechanics and guidelines for the

implementation of the City or Municipal Solid Waste
Management Plan;

(9) Recommended to appropriate local government

authorities specific measures or proposals for franchise or
build-operate-transfer agreements with duly recognized
institutions, pursuant to R.A.6957, to provide either exclusive
or non-exclusive authority for the collection, transfer, storage,
processing, recycling or disposal of municipal solid waste.
 The proposals shall take into consideration appropriate
government rules and regulations on contracts, franchise and
build-operate-transfer agreements;

(10) Provide the necessary logistical and operational support

to its component cities and municipalities in consonance with
subsection (f) of Sec. 17 of the Local Government Code;

(11) Recommended measures and safeguards against

pollution and for the preservation of the natural ecosystem;
and

(12) Coordinates the efforts of its components barangays in

the implementation of the city or municipal Solid Waste
Management Plan.

Section13. Establishment of Multi-Purpose Environment Cooperatives or

Association in Every LGU - Multi-purpose cooperatives and associations
that shall undertake activities to promote the implementation and/ or
directly undertake projects in compliance with the provisions of this Act
shall be encouraged and promoted in every LGU.

CHAPTER III
COMPREHENSIVE SOLID WASTE MANAGEMENT

Article 1
General Provisions

Section 14. National Solid Waste Management Status Report - The

Department, in coordination with the DOH and other concerned agencies,
shall within six (6) months after the effectivity of this Act, prepare a National
Solid Waste Management Status Report which shall be used as a basis in
formulating the National Solid Waste Management Framework provided in
Sec. 15 of this Act. The concerned agencies shall submit to the
Department relevant data necessary for the completion of the said report
within three (3) months following the effectivity of this Act. The said report
shall include, but shall not be limited to, the following:

(a) Inventory of existing solid waste facilities;

(b) General waste characterization, taking into account the

type, quantity of waste generated and estimation of volume
and type of waste for reduction and recycling;

(c) Projection of waste generation;

 (d) The varying regional geologic, hydrologic, climatic, and
other factors vital in the implementation of solid waste
practices to ensure the reasonable protection of:

(1) the quality of surface and groundwater from

leachate contamination;

(2) the quality of surface waters from surface run-off

contamination; and

(3) ambient air quality.

(e) Population density, distribution and projected growth;

(f) The political, economic, organizational, financial and

management problems affecting comprehensive solid waste
management;

(g) Systems and techniques of waste reduction, re-use and

recycling;

(h) Available markets for recyclable materials;

(i) Estimated cost of collecting, storing, transporting,

marketing and disposal of wastes and recyclable materials;
and

(j) Pertinent qualitative and quantitative information

concerning the extent of solid waste management problems
and solid waste management activities undertaken by local
government units and the waste generators.

Provided, That the Department, in consultation with concerned agencies,

shall review, update and publish a National Solid Waste Management
Status Report every two (2) years or as the need arises.

Section 15. National Solid Waste Management Framework - Within six (6)
months from the completion of the national solid waste management status
report under Sec. 14 of this Act, the Commission created under Sec. 4 of
this Act shall, with public participation, formulate and implement a National
Solid Waste Management Framework. Such framework shall consider and
include:
(a) Analysis and evaluation of the current state, trends,
projections of solid waste management on the national,
provincial and municipal levels;

(b) Identification of critical solid waste facilities and local

government units which will need closer monitoring and/or
regulation;

(c) Characteristics and conditions of collection, storage,

processing, disposal, operating methods, techniques and
practices, location of facilities where such operating methods,
techniques and practices are conducted, taking into account
the nature of the waste;

(d) Waste diversion goal pursuant to Sec. 20 of this Act;

(e) Schedule for the closure and/or upgrading of open and

controlled dumps pursuant to Sec. 37 of this Act;

(f) Methods of closing or upgrading open dumps for purposes

of eliminating potential health hazards;

(g) The profile of sources, including industrial, commercial,

domestic, and other sources;

(h) Practical applications of environmentally sound

techniques of water minimization such as, but not limited to,
resource conservation, segregation at source, recycling,
resource recovery, including waste-to-energy generation, re-
use and composting;

(i) A technical and economic description of the level of

performance that can be attained by various available solid
waste management practices which provide for the protection
of public health and the environment;

(j) Appropriate solid waste facilities and conservation

systems;

(k) Recycling programs for the recyclable materials, such as

but not limited to glass, paper, plastic and metal;

(l) Venues for public participation from all sectors at all

phases/stages of the waste management program/project;
 (m) Information and education campaign strategies;

(n) A description of levels of performance and appropriate

methods and degrees of control that provide, at the minimum,
for protection of public health and welfare through:

(1) Protection of the quality of groundwater and

surface waters from leachate and run-off
contamination;

(2) Disease and epidemic prevention and control;

(3) Prevention and control of offensive odor; and

(4) Safety and aesthetics.

(o) Minimum criteria to be used by the local government units

to define ecological solid waste management practices. As
much as practicable, such guidelines shall also include
minimum information for use in deciding the adequate
location, design and construction of facilities associated with
solid waste management practices, including the
consideration of regional, geographic, demographic and
climatic factors; and

(p) The method and procedure for the phaseout and the
eventual closure within eighteen (18) months from the
effectivity of this Act in case of existing open dumps and/or
sanitary landfills located within an aquifer, groundwater
reservoir or watershed area.

Section 16. Local Government Solid Waste Management Plans - The

province, city or municipality, through its local solid waste management
boards, shall prepare its respective 10-year solid waste management plans
consistent with the national solid waste management framework: Provided,
That the waste management plan shall be for the re-use, recycling and
composting of wastes generated in their respective
jurisdictions: Provided, further, That the solid waste management plan of
the LGU shall ensure the efficient management of solid waste generated
within its jurisdiction. The plan shall place primary emphasis on
implementation of all feasible re-use, recycling, and composting programs
while identifying the amount of landfill and transformation capacity that will
be needed for solid waste which cannot be re-used, recycled, or
composted. The plan shall contain all the components provided in Sec. 17
of this Act and a timetable for the implementation of the solid waste
management program in accordance with the National Framework and
pursuant to the provisions of this Act: Provided, finally, That it shall be
reviewed and updated every year by the provincial, city or municipal solid
waste management board.

For LGUs which have considered solid waste management alternatives to

comply with Sec. 37 of this Act, but are unable to utilize such alternatives,
a timetable or schedule of compliance specifying the remedial measure
and eventual compliance shall be included in the plan.

All local government solid waste management plans shall be subjected to

the approval of the Commission. The plan shall be consistent with the
national framework and in accordance with the provisions of this Act and of
the policies set by the Commission; Provided, That in the province of
Palawan, the local government solid waste management plan shall be
approved by the Palawan Council for Sustainable Development, pursuant
to R.A. No. 7611.

Section 17. The Components of the Local Government Solid Waste

Management Plan - The solid waste management plan shall include, but
not limited to, the following components:

(a) City or Municipal Profile - The plan shall indicate the

following background information on the city or municipality
and its component barangays, covering important highlights
of the distinct geographic and other conditions:

(1) Estimated population of each barangay within the

city or municipality and population project for a 10-year
period;

(2) Illustration or map of the city/municipality, indicating

locations of residential, commercial, and industrial
centers, and agricultural area, as well as dump,
landfills and other solid waste facilities. The illustration
shall indicate as well, the proposed sites for disposal
and other solid waste facilities;

(3) Estimated solid waste generation and projection by

source, such as residential, market, commercial,
industrial, construction/ demolition, street
waste,agricultural, agro-industrial, institutional, other
waste; and

(4) Inventory of existing waste disposal and other solid

waste facilities and capacities.
(b) Waste characterization - For the initial source reduction
and recycling element of a local waste management plan, the
LGU waste characterization component shall identify the
constituent materials which comprise the solid waste
generated within the jurisdiction of the LGU. The information
shall be representative of the solid waste generated and
disposed of within the area. The constituent materials shall
be identified by volume, percentage in weight or its volumetric
equivalent, material type, and source of generation which
includes residential, commercial, industrial, governmental, or
other materials. Future revisions of waste characterization
studies shall identify the constituent materials which comprise
the solid waste disposed of at permitted disposal facilities.

(c) Collection and Transfer - The plan shall take into account
the geographic subdivisions to define the coverage of the
solid waste collection area in every barangay. The barangay
shall be responsible for ensuring that a 100% collection
efficiency from residential, commercial, industrial and
agricultural sources, where necessary within its area of
coverage, is achieved. Toward this end, the plan shall define
and identify the specific strategies and activities to be
undertaken by its component barangays, taking into account
the following concerns:

(1) Availability and provision of properly designed

containers or receptacles in selected collection points
for the temporary storage of solid waste while awaiting
collection and transfer to processing sites or to final
disposal sites;

(2) Segregation of different types of solid waste for re-

use, recycling and composting;

(3) Hauling and transfer of solid waste from source or

collection points to processing sites or final disposal
sites;

(4) Issuance and enforcement of ordinances to

effectively implement a collection system in the
barangay; and

(5) Provision of properly trained officers and workers to

handle solid waste disposal.
The plan shall define and specify the methods and systems
for the transfer of solid waste from specific collection points to
solid waste management facilities.

(d) Processing - The Plan shall define the methods and the
facilities required to process the solid waste, including the
use of intermediate treatment facilities for composting,
recycling, conversion and other waste processing systems.
Other appropriate waste processing technologies may also
be considered provided that such technologies conform with
internationally-acceptable and other standards set in other
standards set in other laws and regulations.

(e) Source reduction - The source reduction component shall

include a program and implementation schedule which shows
the methods by which the LGU will, in combination with the
recycling and composting components, reduce a sufficient
amount of solid waste disposed of in accordance with the
diversion requirements of Sec. 20.

The source reduction component shall describe the following:

(1) strategies in reducing the volume of solid waste

generated at source;

(2) measures for implementing such strategies and the

resources necessary to carry out such activities;

(3) other appropriate waste reduction technologies that

may also be considered, provided that such
technologies conform with the standards set pursuant
to this Act;

(4) the types of wastes to be reduced pursuant to Sec.

15 of this Act;

(5) the methods that the LGU will use to determine the
categories of solid wastes to be diverted from disposal
at a disposal facility through re-use, recycling and
composting; and

(6) new facilities and expansion of existing facilities

which will be needed to implement re-use, recycling
and composting.
The LGU source reduction component shall include the
evaluation and identification of rate structures and fees for
the purpose of reducing the amount of waste generated, an
other source reduction strategies, including but not limited to,
programs and economic incentives provided under Sec. 46 of
this Act to reduce the use of non-recyclable materials,
replace disposable materials and products with reusable
materials and products, reduce packaging, and increase the
efficiency of the use of paper, cardboard, glass, metal, and
other materials. The waste reduction activities of the
community shall also take into account, among others, local
capability, economic viability, technical requirements, social
concerns' disposition of residual waste and environmental
impact: Provided, That, projection of future facilities needed
and estimated cost shall be incorporated in the plan.

(f) Recycling - The recycling component shall include a

program and implementation schedule which shows the
methods by which the LGU shall, in combination with source
reduction and composting components, reduce a sufficient
amount of solid waste disposed of in accordance with the
diversion requirements set in Sec .20.

The LGU recycling component shall describe the following:

(1) The types of materials to be recycled under the

programs;

(2) The methods for determining the categories of solid

wastes to be diverted from disposal at a disposal
facility through recycling; and

(3) New facilities and expansion of existing facilities

needed to implement the recycling component.

The LGU recycling component shall described methods for

developing the markets for recycled materials, including, but
not limited to, an evaluation of the feasibility of procurement
preferences for the purchase of recycled products. Each LGU
may determine and grant a price preference to encourage the
purchase of recycled products.

The five-year strategy for collecting, processing, marketing

and selling the designated recyclable materials shall take into
account persons engaged in the business of recycling or
persons otherwise providing recycling services before the
effectivity of this Act. Such strategy may be base upon the
results of the waste composition analysis performed pursuant
to this Section or information obtained in the course of past
collection of solid waste by the local government unit, and
may include recommendations with respect to increasing the
number of materials designated for recycling pursuant to this
Act.

The LGU recycling component shall evaluate industrial,

commercial, residential, agricultural, governmental and other
curbside, mobile, drop-off and buy-back recycling programs,
manual and automated materials recovery facilities, zoning,
building code changes and rate structures which encourage
recycling of materials. The Solid Waste Management Plan
shall indicate the specific measures to be undertaken to meet
the waste diversion specified under Sec. 20 of this Act.

Recommended revisions to the building ordinances, requiring

newly-constructed buildings and buildings undergoing
specified alterations to contain storage space, devices or
mechanisms that facilitate source separation and storage of
designated recyclable materials to enable the local
government unit to efficiently collect, process, market and sell
the designated materials. Such recommendations shall
include, but shall not be limited to separate chutes to facilitate
source separation in multi-family dwellings, storage areas
that conform to fire and safety code regulations, and
specialized storage containers.

The Solid Waste Management Plan shall indicate the specific

measures to be undertaken to meet the recycling goals
pursuant to the objectives of this Act.

(g) Composting - The composting component shall include a

program and implementation schedule which shows the
methods by which the LGU shall, in combination with the
source reduction and recycling components, reduce a
sufficient amount of solid waste disposed of within its
jurisdiction to comply with the diversion requirements of Sec.
20 hereof.

The LGU composting component shall describe the following:

(1) The types of materials which will be composted

under the programs;
 (2) The methods for determining the categories of solid
wastes to be diverted from disposal at a disposal
facility through composting; and

(3) New facilities, and expansion of existing facilities

needed to implement the composting component.

The LGU composting component shall describe methods for

developing the markets for composted materials, including,
but not limited to, an evaluation of the feasibility of
procurement preferences for the purchase of composted
products. Each LGU may determine and grant a price
preference to encourage the purchase of composted
products.

(h) Solid waste facility capacity and final disposal - The solid
waste facility component shall include, but shall not be limited
to, a projection of the amount of disposal capacity needed to
accommodate the solid waste generated, reduced by the
following:

(1) Implementation of source reduction, recycling and

composting programs required in this Section or
through implementation of other waste diversion
activities pursuant to Sec. 20 of this Act;

(2) Any permitted disposal facility which will be

available during the 10-year planning period; and

(3) All disposal capacity which has been secured

through an agreement with another LGU, or through
an agreement with a solid waste enterprise.

The plan shall identify existing and proposed disposal sites

and waste management facilities in the city or municipality or
in other areas. The plan shall specify the strategies for the
efficient disposal of waste through existing disposal facilities
and the identification of prospective sites for future use. The
selection and development of disposal sites shall be made on
the basis of internationally accepted standards and on the
guidelines set in Sec. 41 and 42 of this Act.

Strategies shall be included to improve said existing sites to

reduce adverse impact on health and the environment, and to
extent life span and capacity. The plan shall clearly define
projections for future disposal site requirements and the
estimated cost for these efforts.

Open dump sites shall not be allowed as final disposal sites.

If an open dump site is existing within the city or municipality,
the plan shall make provisions for its closure or eventual
phase out within the period specified under the framework
and pursuant to the provisions under Sec. 37 of this Act. As
an alternative, sanitary landfill sites shall be developed and
operated as a final disposal site for solid and, eventually,
residual wastes of a municipality or city or a cluster of
municipality and/or cities. Sanitary landfills shall be designed
and operated in accordance with the guidelines set under
Secs. 40 and 41 of this Act.

(i) Education and public information - The education and

public information component shall describe how the LGU will
educate and inform its citizens about the source reduction,
recycling and composting programs.

The plan shall make provisions to ensure that information on

waste collection services, solid waste management and
related health and environmental concerns are widely
disseminated among the public. This shall be undertaken
through the print and broadcast media and other government
agencies in the municipality. The DECS and the Commission
on Higher Education shall ensure that waste management
shall be incorporated in the curriculum of primary, secondary
and college students.

(j) Special Waste - The special waste component shall

include existing waste handling and disposal practices for
special wastes or household hazardous wastes, and the
identification of current and proposed programs to ensure the
proper handling, re-use, and long-term disposal of special
wastes;

(k) Resource requirement and funding - The funding

component includes identification and description of project
costs, revenues, and revenue sources the LGU will use to
implement all components of the LGU solid waste
management plan;

The plan shall likewise indicate specific projects, activities,

equipment and technological requirements for which outside
sourcing of funds or materials may be necessary to carry out
 the specific components of the plan. It shall define the
specific uses for its resource requirement s and indicate its
costs. The plan shall likewise indicate how the province, city
or municipality intends to generate the funds for the
acquisition of its resource requirements. It shall also indicate
if certain resource requirements are being or will be sourced
from fees, grants, donations, local funding and other means.
This will serve as basis for the determination and assessment
of incentives which may be extended to the province, city or
municipality as provided for in Sec. 45 of this Act.

(l) Privatization of solid waste management projects - The

plan shall likewise indicate specific measures to promote the
participation of the private sector in the management of solid
wastes, particularly in the generation and development of the
essential technologies for solid waste management. Specific
projects or component activities of the plan which may be
offered as private sector investment activity shall be identified
and promoted as such. Appropriate incentives for private
sector involvement in solid waste management shall likewise
be established and provided for in the plan, in consonance
with Sec. 45 hereof and other existing laws, policies and
regulations; and

(m) Incentive programs - A program providing for incentives,

cash or otherwise, which shall encourage the participation of
concerned sectors shall likewise be included in the plan.

Section 18. Owner and Operator - Responsibility for compliance with the
standards in this Act shall rest with the owner and/or operator. If
specifically designated, the operator is considered to have primary
responsibility for compliance; however, this does not relieve the owner of
the duty to take all reasonable steps to assure compliance with these
standards and any assigned conditions. When the title to a disposal is
transferred to another person, the new owner shall be notified by the
previous owner of the existence of these standards and of the conditions
assigned to assure compliance.

Section 19. Waste characterization - The Department in coordination with

the LGUs, shall be responsible for the establishment of the guidelines for
the accurate characterization of wastes including determination of whether
or not wastes will be compatible with containment features and other
wastes, and whether or not wastes are required to be managed as
hazardous wastes under R.A. 6969, otherwise known as the Toxic
Substance and Hazardous and Nuclear Wastes Control Act.
Section 20. Establishing Mandatory Solid Waste Diversion - Each LGU
plan shall include an implementation schedule which shows that within five
(5) years after the effectivity of this Act, the LGU shall divert at least 25% of
all solid waste from waste disposal facilities through re-use, recycling and
composting activities and other resource recovery activities; Provided, That
the waste diversion goals shall be increased every three (3) years
thereafter; Provided, further, That nothing in this Section prohibits a local
government unit from implementing re-use, recycling, and composting
activities designed to exceed the goal.

Article 2
Segregation of Wastes

Section 21. Mandatory Segregation of Solid Wastes - The LGUs shall

evaluate alternative roles for the public and private sectors in providing
collection services, type of collection system, or combination of systems,
that best meet their needs: Provided, That segregation of wastes shall
primarily be conducted at the source, to include household, institutional,
industrial, commercial and agricultural sources: Provided, further; That
wastes shall be segregated into the categories provided in Sec. 22 of this
Act.

For premises containing six (6) or more residential units, the local
government unit shall promulgate regulations requiring the owner or person
in charge of such premises to:

(a) provide for the residents a designated area and

containers in which to accumulate source separated
recyclable materials to be collected by the municipality or
private center; and

(b) notify the occupants of each buildings of the requirements

of this Act and the regulations promulgated pursuant thereto.

Section 22. Requirements for the Segregation and Storage of Solid

Waste - The following shall be the minimum standards and requirements
for segregation and storage of solid waste pending collection:

(a) There shall be a separate container for each type of waste

from all sources: Provided, That in the case of bulky waste, it
will suffice that the same be collected and placed in a
separate designated area; and

(b) The solid waste container depending on its use shall be

properly marked or identified for on-site collection as
"compostable", "non-recyclable", "recyclable" or "special
 waste", or any other classification as may be determined by
the Commission.

Article 3
Collection and Transport of Solid Wastes

Section 23. Requirements for Collection of Solid Wastes - The following

shall be the minimum standards and requirements for the collection of solid
waste:

(a) All collectors and other personnel directly dealing with

collection of solid waste shall be equipped with personal
protective equipment to protect them from the hazards of
handling wastes;

(b) Necessary training shall be given to the collectors and

personnel to ensure that the solid wastes are handled
properly and in accordance with the guidelines pursuant to
this Act; and

(c) Collection of solid waste shall be done in a manner which

prevents damage to the container and spillage or scattering
of solid waste within the collection vicinity.

Section 24. Requirements for the Transport of Solid Waste - The use of
separate collection schedules and/or separate trucks or haulers shall be
required for specific types of wastes. Otherwise, vehicles used for the
collection and transport of solid wastes shall have the appropriate
compartments to facilitate efficient storing of sorted wastes while in transit.

Vehicles shall be designed to consider road size, condition and capacity to

ensure the sage and efficient collection and transport of solid wastes.

The waste compartment shall have a cover to ensure the containment of

solid wastes while in transit.

For the purpose of identification, vehicles shall bear the body number, the
name, and the telephone number of the contractor/agency collecting solid
waste.

Section 25. Guidelines for Transfer Stations - Transfer stations shall be

designed and operated for efficient waste handling capacity and in
compliance with environmental standards and guidelines set pursuant to
this Act and other regulations: Provided, That no waste shall be stored in
such station beyond twenty-four (24) hours.
The siting of the transfer station shall consider the land use plan, proximity
to collection area, and accessibility of haul routes to disposal facility. The
design shall give primary consideration to size and space sufficiency in
order to accommodate the waste for storage and vehicles for loading and
unloading of wastes.

Article 4
Recycling Program

Section 26. Inventory of Existing Markets for Recyclable Materials - The

DTI shall within six (6) months from the effectivity of this Act and in
cooperation with the Department, the DILG and other concerned agencies
and sectors, publish a study of existing markets for processing and
purchasing recyclable materials and the potential steps necessary to
expand these markets. Such study shall include, but not be limited to, an
inventory of existing markets for recyclable materials, product standards for
recyclable and recycled materials, and a proposal, developed in
conjunction with the appropriate agencies, to stimulate the demand for the
production of products containing post consumer and recovered materials.

Section 27. Requirement for Eco-Labeling - The DTI shall formulate and
implement a coding system for packaging materials and products to
facilitate waste and recycling and re-use.

Section 28. Reclamation Programs and Buy-back Centers for Recyclables

and Toxics - The National Ecology Center shall assist LGUs in establishing
and implementing deposit or reclamation programs in coordination with
manufacturers, recyclers and generators to provide separate collection
systems or convenient drop-off locations for recyclable materials and
particularly for separated toxic components of the waste stream like dry cell
batteries and tires to ensure that they are not incinerated or disposed of in
a landfill. Upon effectivity of this Act, toxic materials present in the waste
stream should be separated at source, collected separately and further
screened and sent to appropriate hazardous waste treatment and disposal
plants, consistent with the provisions of R.A. No. 6969.

Section 29. Non-Environmentally Acceptable Products - Within one (1)

year from the effectivity of this Act, the Commission shall, after public
notice and hearing, prepare a list of nonenvironmentally acceptable
products as defined in this Act that shall be prohibited according to a
schedule that shall be prepared by the Commission: Provided, however,
That non-environmentally acceptable products shall not be prohibited
unless the Commission first finds that there are alternatives available which
are available to consumers at no more than ten percent (10%) greater cost
than the disposable product.
Notwithstanding any other provisions to the contrary, this section shall not
apply to:

(a) Packaging used at hospitals, nursing homes or other

medical facilities; and

(b) Any packaging which is not environmentally acceptable,

but for which there is no commercially available alternatives
as determined by the Commission.

The Commission shall annually review and update the list of prohibited
non-environmentally acceptable products.

Section 30. Prohibition on the Use of Non-Environmentally Acceptable

Packaging - No person owning, operating or conducting a commercial
establishment in the country shall sell or convey at retail or possess with
the intent to sell or convey at retail any products that are placed, wrapped
or packaged in or on packaging which is not environmentally acceptable
packaging: Provided, That the Commission shall determine a phaseout
period after proper consultation and hearing with the stakeholders or with
the sectors concerned. The presence in the commercial establishment of
non-environmentally acceptable packaging shall constitute a rebuttable
presumption of intent to sell or convey the same at retail to customers.

Any person who is a manufacturer, broker or warehouse operator engaging

in the distribution or transportation of commercial products within the
country shall file a report with the concerned local government within one
(1) year from the effectivity of this Act, and annually thereafter, a listing of
any products in packaging which is not environmentally acceptable. The
Commission shall prescribe the form of such report in its regulations.

A violation of this Section shall be sufficient grounds for the revocation,

suspension, denial or non-renewal of any license for the establishment in
which the violation occurs.

Section 31. Recycling Market Development - The Commission together

with the National Ecology Center, the DTI and the Department of Finance
shall establish procedures, standards and strategies to market recyclable
materials and develop the local market for recycle goods, including but not
limited to:

(a) measures providing economic incentives and assistance

including loans and grants for the establishment of privately-
owned facilities to manufacture finished products from post-
consumer materials;
 (b) guarantees by the national and local governments to
purchase a percentage of the output of the facility; and

(c) maintaining a list of prospective buyers, establishing

contact with prospective buyers and reviewing and making
any necessary changes in collecting or processing the
materials to improve their marketability.

In order to encourage establishments of new facilities to produce goods

from post-consumer and recovered materials generated within local
government units, and to conserve energy by reducing materials
transportation, whenever appropriate, each local government unit may
arranged for long-term contracts to purchase a substantial share of the
product output of a proposed facility which will be based in the jurisdiction
of the local government unit if such facility will manufacture such finished
products form post-consumer and recovered materials.

Section 32. Establishment of LGU Materials Recovery Facility. - There

shall be established a Materials Recovery Facility (MRF) in every barangay
or cluster of barangays. The facility shall be established in a barangay-
owned or -leased land or any suitable open space to be determined by the
barangay through its Sanggunian. For this purpose, the barangay or cluster
of barangays shall allocate a certain parcel of land for the MRF. The MRF
shall receive mixed waste for final sorting, segregation, composting, and
recycling. The resulting residual wastes shall be transferred to a long term
storage or disposal facility or sanitary landfill.

Section 33. Guidelines for Establishment of Materials Recovery Facility -

Materials recovery facilities shall be designed to receive, sort, process and
store compostable and recyclable material efficiently and in an
environmentally sound manner. The facility shall address the following
considerations:

(a) The building and/or land layout and equipment must be

designed to accommodate efficient and safe materials
processing, movement, and storage; and

(b) The building must be designed to allow efficient and safe

external access and to accommodate internal flow.

Article 5
Composting

Section 34. Inventory of Markets of Composts - Within six (6) months after
the effectivity of this Act, the DA shall publish an inventory of existing
markets and demands for composts. Said inventory shall thereafter be
updated and published annually: Provided, That the composting of
agricultural wastes and other compostable materials, including but not
limited to garden wastes, shall be encouraged.

Section 35. Guidelines for Compost Quality - Compost products intended

to be distributed commercially shall conform with the standards for organic
fertilizers set by the DA. The DA shall assist the compost producers to
ensure that the compost products conform to such standards.

Article 6
Waste Management Facilities

Section 36. Inventory of Waste Disposal Facilities - Within six (6) months
from the effectivity of this Act, the Department, in cooperation with the
DOH, DILG and other concerned agencies, shall publish an inventory of all
solid waste disposal facilities or sites in the country.

Section 37. Prohibition Against the Use of Open Dumps for Solid Waste -
No open dumps shall be established and operated, nor any practice or
disposal of solid waste by any person, including LGUs, which constitutes
the use of open dumps for solid wastes, be allowed after the effectivity of
this Acts: Provided, That within three (3) years after the effectivity of this
Act, every LGU shall convert its open dumps into controlled dumps, in
accordance with the guidelines set in Sec. 41 of this Act: Provided, further,
That no controlled dumps shall be allowed five (5) years following the
effectivity of this Act.

Section 38. Permit for Solid Waste Management Facility Construction and
Expansion - No person shall commence operation, including site
preparation and construction of a new solid waste management facility or
the expansion of an existing facility until said person obtains an
Environment Compliance Certificate (ECC) from the Department pursuant
to P.D. 1586 and other permits and clearances form concerned agencies.

Section 39. Guidelines for Controlled Dumps - The following shall be the
minimum considerations for the establishments of controlled dumps:

(a) Regular inert cover;

(b) Surface water and peripheral site drainage control;

(c) Provision for aerobic and anaerobic decomposition;

(d) Restriction of waste deposition to small working areas;

 (e) Fence, including provisions for litter control;

(f) Basic record-keeping;

(g) Provision of maintained access road;

(h) Controlled waste picking and trading;

(i) Post-closure site cover and vegetation; and

(j) Hydro geological siting.

Section 40. Criteria for Siting a Sanitary Landfill - The following shall be
the minimum criteria for the siting of sanitary landfills:

(a) The site selected must be consistent with the overall land
use plan of the LGU;

(b) The site must be accessible from major roadways or

thoroughfares;

(c) The site should have an adequate quantity of earth cover

material that is easily handled and compacted;

(d) The site must be chosen with regard for the sensitivities of
the community's residents;

(e) The site must be located in an area where the landfill's

operation will not detrimentally affect environmentally
sensitive resources such as aquifer, groundwater reservoir or
watershed area;

(f) The site should be large enough to accommodate the

community's wastes for a period of five (5) years during which
people must internalize the value of environmentally sound
and sustainable solid waste disposal;

(g) The site chosen should facilitate developing a landfill that

will satisfy budgetary constraints, including site development,
operation for many years, closure, post-closure care and
possible remediation costs;

(h) Operating plans must include provisions for coordinating

with recycling and resource recovery projects; and
 (i) Designation of a separate containment area for household
hazardous wastes.

Section 41. Criteria for Establishment of Sanitary Landfill - The following

shall be the minimum criteria for the establishment of sanitary landfills:

(a) Liners - a system of clay layers and/or geosynthethic

membranes used to contain leachate and reduce or prevent
contaminant flow to groundwater;

(b) Leachate collection and treatment system - installation of

pipes at the low areas of the liner to collect leachate for
storage and eventual treatment and discharge;

(c) Gas control and recovery system - a series of vertical

wells or horizontal trenches containing permeable materials
and perforated piping placed in the landfill to collect gas for
treatment or productive use as an energy source;

(d) Groundwater monitoring well system - wells placed at an

appropriate location and depth for taking water that are
representative of ground water quality;

(e) Cover - two (2) forms of cover consisting of soil and

geosynthetic materials to protect the waste from long-term
contact with the environment:

(i) a daily cover placed over the waste at the close of

each day's operations, and;

(ii) a final cover, or cap, which is the material placed

over the completed landfill to control infiltration of
water, gas emission to the atmosphere, and erosion.

(f) Closure procedure with the objectives of establishing low

maintenance cover systems and final cover that minimizes
the infiltration of precipitation into the waste. Installation of the
final cover must be completed within six (6) months of the last
receipt of waste;

(g) Post-closure care procedure - During this period, the

landfill owner shall be responsible for providing for the
general upkeep of the landfill, maintaining all of the landfill's
environmental protection features, operating monitoring
equipment, remediating groundwater should it become
 contaminated and controlling landfill gas migration or
emission.

Section 42. Operating Criteria for Sanitary Landfills - In the operation of a

sanitary land fill, each site operator shall maintain the following minimum
operating equipments:

(a) Disposal site records of, but not limited to:

(1) Records of weights or volumes accepted in a form

and manner approved by the Department. Such
records shall be submitted to the Department upon
request, accurate to within ten percent (10%) and
adequate for overall planning purposes and
forecasting the rate of site filling;

(2) Records of excavations which may affect the safe

and proper operation of the site or cause damage to
adjoining properties;

(3) Daily log book or file of the following information:

fires, landslides, earthquake damage, unusual and
sudden settlement, injury and property damage,
accidents, explosions, receipts or rejection of
unpermitted wastes, flooding and other unusual
occurrences;

(4) Record of personnel training; and

(5) Copy of written notification to the Department, local

health agency, and fire authority of names, addresses
and telephone numbers of the operator or responsible
party of the site;

(b) Water quality monitoring of surface and ground waters

and effluent, and gas emissions;

(c) Documentation of approvals, determinations and other

requirements by the Department;

(d) Signs:

(1) Each point of access from a public road shall be

posted with an easily visible sigh indicating the facility
 name and other pertinent information as required by
the Department;

(2) If the site is open to the public, there shall be an

easily visible sign at the primary entrance of the site
indicating the name of the site operator, the operator's
telephone number, and hours of operation; an easily
visible sign at an appropriate point shall indicate the
schedule of changes and the general types of
materials which will either be accepted or not;

(3) If the site is open to the public, there shall be an

easily visible road sign and/or traffic control measures
which direct traffic to the active face and other areas
where wastes or recyclable materials will be
deposited; and

(4) Additional signs and/or measures may be required

at a disposal site by the Department to protect
personnel and public health and safety;

(e) Monitoring of quality of surface, ground and effluent

waters, and gas emissions;

(f) The site shall be designed to discourage unauthorized

access by persons and vehicles by using a perimeter barrier
or topographic constraints. Areas within the site where open
storage, or pounding of hazardous materials occurs shall be
separately fenced or otherwise secured as determined by the
Department. The Department may also require that other
areas of the site be fenced to create an appropriate level of
security;

(g) Roads within the permitted facility boundary shall be

designed to minimize the generation of dust and the tracking
of material onto adjacent public roads. Such roads shall be
kept in safe condition and maintained such that vehicle
access and unloading can be conducted during inclement
weather;

(h) Sanitary facilities consisting of adequate number of toilets

and handwashing facilities, shall be available to personnel at
or in the immediate vicinity of the site;
(i) Safe and adequate drinking water supply for the site
personnel shall be available;

(j) The site shall have communication facilities available to

site personnel to allow quick response to emergencies;

(k) Where operations are conducted during hours of

darkness, the site and/or equipment shall be equipped with
adequate lighting as approved by the Department to ensure
safety and to monitor the effectiveness of operations;

(l) Operating and maintenance personnel shall wear and use

appropriate safety equipment as required by the Department;

(m) Personnel assigned to operate the site shall be

adequately trained in subject pertinent to the site operation
and maintenance, hazardous materials recognition and
screening, and heavy equipment operations, with emphasis
on safety, health, environmental controls and emergency
procedures. A record of such training shall be placed in the
operating record;

(n) The site operator shall provide adequate supervision of a

sufficient number of qualified personnel to ensure proper
operation of the site in compliance with all applicable laws,
regulations, permit conditions and other requirements. The
operator shall notify the Department and local health agency
in writing of the names, addresses, and telephone number of
the operator or responsible party. A copy of the written
notification shall be placed in the operation record;

(o) Any disposal site open to the public shall have an

attendant present during public operating hours or the site
shall be inspected by the operator on a regularly scheduled
basis, as determined by the Department;

(p) Unloading of solid wastes shall be confined to a small

area as possible to accommodate the number of vehicles
using the area without resulting in traffic, personnel, or public
safety hazards. Waste materials shall normally be deposited
at the toe of the fill, or as otherwise approved by the
Department;

(q) Solid waste shall be spread and compacted in layers with

repeated passages of the landfill equipment to minimize voids
within the cell and maximize compaction. The loose layer
 shall not exceed a depth approximately two feet before
compaction. Spreading and compacting shall be
accomplished as rapidly as practicable, unless otherwise
approved by the Department;

(r) Covered surfaces of the disposal area shall be graded to

promote lateral runoff of precipitation and to prevent
pounding. Grades shall be established of sufficient slopes to
account for future settlement of the fill surface. Other effective
maintenance methods may be allowed by the Department;
and

(s) Cover material or native material unsuitable for cover,

stockpiled on the site for use or removal, shall be placed so
as not to cause problems or interfere with unloading,
spreading, compacting, access, safety drainage, or other
operations.

Article 7
Local Government Solid Waste Management

Section 43. Guidelines for Identification of Common Solid Waste

Management Problems - For purposes of encouraging and facilitating the
development of local government plans for solid waste management, the
Commission shall, as soon as practicable but not later than six (6) months
from the effectivity of this Act, publish guidelines for the identification of
those areas which have common solid waste management problems and
are appropriate units for clustered solid waste management services. The
guidelines shall be based on the following:

(a) the size and location of areas which should be included;

(b) the volume of solid waste which would be generated;

(c) the available means of coordinating local government

planning between and among the LGUs and for the
integration of such with the national plan; and

(d) possible lifespan of the disposal facilities.

Section 44. Establishment of Common Waste Treatment and Disposal

Facilities - Pursuant to Sec. 33 of R.A.7160, otherwise known as the Local
Government Code, all provinces, cities, municipalities and barangays,
through appropriate ordinances, are hereby mandated to consolidate, or
coordinate their efforts, services, and resources for purposes of jointly
addressing common solid waste management problems and/or
establishing common waste disposal facilities.

The Department, the Commission and local solid waste management

boards shall provide technical and marketing assistance to the LGUs.

CHAPTER IV
INCENTIVES

Section 45. Incentives. -

(a) Rewards, monetary or otherwise, shall be provided to

individuals, private organizations and entitles, including non-
government organizations, that have undertaken outstanding
and innovative projects, technologies, processes and
techniques or activities in re-use, recycling and reduction.
Said rewards shall be sourced from the Fund herein created.

(b) An incentive scheme is hereby provided for the purpose of

encouraging LGUs, enterprises, or private entities, including
NGOs, to develop or undertake an effective solid waste
management, or actively participate in any program geared
towards the promotion thereof as provided for in this Act.

(1) Fiscal Incentives. - Consistent with the provisions of E.O. 226,

otherwise known as the Omnibus Investments Code, the following tax
incentives shall be granted:

(a) Tax and Duty Exemption on Imported Capital Equipment

and Vehicles - Within ten (10) years upon effectively of this
Act, LGUs, enterprises or private entities shall enjoy tax and
duty free importation of machinery, equipment, vehicles and
spare parts used for collection, transportation, segregation,
recycling, re-use and composing of solid wastes: Provided,
That the importation of such machinery, equipment, vehicle
and spare parts shall comply with the following conditions:

(i) They are not manufactured domestically in sufficient

quantity, of comparable quality and at reasonable
prices;

(ii) They are reasonably needed and will be used

actually, directly and exclusively for the above
mentioned activities;
 (iii) The approval of the Board of Investment (BOI) of
the DTI for the importation of such machinery,
equipment, vehicle and spare parts.

Provided, further, That the sale, transfer or disposition of

such machinery, equipment, vehicle and spare parts, without
prior approval of the (BOI), within five (5) years from the date
of acquisition shall be prohibited, otherwise, the LGU
concerned, enterprise or private entities and the vendee,
transferee, or assignee shall be solidarily liable to pay twice
the amount of tax and duty exemption given it.

(b) Tax Credit on Domestic Equipment - Within ten (10) years

from the effectivity of this Act, a tax credit equivalent to 50%
of the value of the national internal revenue taxes and
customs duties that would have been waived on the
machinery, equipment, vehicle and spare parts, had these
items been imported shall be given to enterprises, private
entities, including NGOs, subject to the same conditions and
prohibition cited in the preceding paragraph.

(c) Tax and Duty Exemption of Donations, Legacies and Gift -

All legacies, gifts and donations to LGUs, enterprises or
private entities, including NGOs, for the support and
maintenance of the program for effective solid waste
management shall be exempt from all internal revenue taxes
and customs duties, and shall be deductible in full from the
gross income of the donor for income tax purposes.

(2) Non-Fiscal Incentives. - LGUs, enterprises or private entities availing of

tax incentives under this Act shall also be entitled to applicable non-fiscal
incentives provided for under E.O. 226, otherwise known as the Omnibus
Investments Code.

The Commission shall provide incentives to businesses and industries that

are engaged in the recycling of wastes and which are registered with the
Commission and have been issued ECCs in accordance with the
guidelines established by the Commission. Such incentives shall include
simplified procedures for the importation of equipment, spare parts, new
materials, and supplies, and for the export of processed products.

(3) Financial Assistance Program. - Government financial institutions such

as the Development Bank of the Philippines (DBP), Landbank of the
Philippines (LBP), Government Service Insurance System (GSIS), and
such other government institutions providing financial services shall, in
accordance with and to the extent allowed by the enabling provisions of
their respective charters or applicable laws, accord high priority to extend
financial services to individuals, enterprises, or private entities engaged in
solid waste management.

(4) Extension of Grants to LGUs. - Provinces, cities and municipalities

whose solid waste management plans have been duly approved by the
Commission or who have been commended by the Commission for
adopting innovative solid waste management programs may be entitled to
receive grants for the purpose of developing their technical capacities
toward actively participating in the program for effectively and sustainable
solid waste management.

(5) Incentives to Host LGUs. - Local government units who host common
waste management facilities shall be entitled to incentives.

CHAPTER V
FINANCING SOLID WASTE MANAGEMENT

Section 46. Solid Waste Management Fund - There is hereby created, as

a special account in the National Treasury, a Solid Waste Management
Fund to be administered by the Commission. Such fund shall be sourced
from the following:

(a) Fines and penalties imposed, proceeds of permits and

licenses issued by the Department under this Act, donations,
endowments, grants and contributions from domestic and
foreign sources; and

(b) Amounts specifically appropriated for the Fund under the

annual General Appropriations Act;

The Fund shall be used to finance the following:

(1) products, facilities, technologies and processes to

enhance proper solid waste management;

(2) awards and incentives;

(3) research programs;

(4) information, education, communication and

monitoring activities;

(5) technical assistance; and

 (6) capability building activities.

LGUs are entitled to avail of the Fund on the basis of their approved solid
waste management plan. Specific criteria for the availment of the Fund
shall be prepared by the Commission.

The fines collected under Sec. 49 shall be allocated to the LGU where the
fined prohibited acts are committed in order to finance the solid waste
management of said LGU. Such allocation shall be based on a sharing
scheme between the Fund and the LGU concerned.

In no case, however, shall the Fund be used for the creation of positions or
payment of salaries and wages.

Section 47. Authority to Collect Solid Waste Management Fees - The local
government unit shall impose fees in amounts sufficient to pay the costs of
preparing, adopting, and implementing a solid waste management plan
prepared pursuant to this Act. The fees shall be based on the following
minimum factors:

(a) types of solid waste;

(b) amount/volume of waste; and

(c) distance of the transfer station to the waste management

facility.

The fees shall be used to pay the actual costs incurred by the LGU in
collecting the local fees. In determining the amounts of the fees, an LGU
shall include only those costs directly related to the adoption and
implementation of the plan and the setting and collection of the local fees.

CHAPTER VI
PENAL PROVISIONS

Section 48. Prohibited Acts - The following acts are prohibited:

(1) Littering, throwing, dumping of waste matters in public

places, such as roads, sidewalks, canals, esteros or parks,
and establishment, or causing or permitting the same;

(2) Undertaking activities or operating, collecting or

transporting equipment in violation of sanitation operation and
other requirements or permits set forth in established
pursuant;
(3) The open burning of solid waste;

(4) Causing or permitting the collection of non-segregated or

unsorted wastes;

(5) Squatting in open dumps and landfills;

(6) Open dumping, burying of biodegradable or non-

biodegradable materials in flood prone areas;

(7) Unauthorized removal of recyclable material intended for

collection by authorized persons;

(8) The mixing of source-separated recyclable material with

other solid waste in any vehicle, box, container or receptacle
used in solid waste collection or disposal;

(9) Establishment or operation of open dumps as enjoined in

this Act, or closure of said dumps in violation of Sec. 37;

(10) The manufacture, distribution or use of non-

environmentally acceptable packaging materials;

(11) Importation of consumer products packaged in non-

environmentally acceptable materials;

(12) Importation of toxic wastes misrepresented as

"recyclable" or "with recyclable content";

(13) Transport and dumplog in bulk of collected domestic,

industrial, commercial, and institutional wastes in areas other
than centers or facilities prescribe under this Act;

(14) Site preparation, construction, expansion or operation of

waste management facilities without an Environmental
Compliance Certificate required pursuant to Presidential
Decree No. 1586 and this Act and not conforming with the
land use plan of the LGU;

(15) The construction of any establishment within two

hundred (200) meters from open dumps or controlled dumps,
or sanitary landfill; and
 (16) The construction or operation of landfills or any waste
disposal facility on any aquifer, groundwater reservoir, or
watershed area and or any portions thereof.

Section 49. Fines and Penalties -

(a) Any person who violates Sec. 48 paragraph (1) shall,

upon conviction, be punished with a fine of not less than
Three hundred pesos (P300.00) but not more than One
thousand pesos (P1,000.00) or render community service for
not less than one (1) day to not more than fifteen (15) days to
an LGU where such prohibited acts are committed, or both;

(b) Any person who violates Sec. 48, pars. (2) and (3), shall,
upon conviction be punished with a fine of not less than
Three hundred pesos (P300.00) but not more than One
thousand pesos (P1,000.00) or imprisonment of not less than
one (1) day but to not more than fifteen (15) days, or both;

(c) Any person who violates Sec. 48, pars. (4), (5), (6) and (7)
shall, upon conviction, be punished with a fine of not less
than One thousand pesos (P1,000.00) but not more than
Three thousand pesos (P3,000.00) or imprisonment of not
less than fifteen (15) day but to not more than six (6) months,
or both;

(d) Any person who violates Sec. 48, pars (8), (9), (10) and
(11) for the first time shall, upon conviction, pay a fine of Five
hundred thousand pesos (P500,000.00) plus and amount not
less than five percent (5%) but not more than ten percent
(10%) of his net annual income during the previous year.

The additional penalty of imprisonment of a minimum period

of one (1) year but not to exceed three (3) years at the
discretion of the court, shall be imposed for second or
subsequent violations of Sec. 48, pars. (9) and (10).

(e) Any person who violates Sec. 48, pars. (12) and (13)
shall, upon conviction, be punished with a fine not less than
Ten thousand pesos (P10,000.00) but not more than Two
hundred thousand pesos (P200,000.00) or imprisonment of
not less than thirty (30) days but not more than three (3)
years, or both;

(f) Any person who violates Sec. 48, pars. (14), (15) and (16)
shall, upon conviction, be punished with a fine not less than
 One hundred thousand pesos (P100,000.00) but not more
than One million pesos (P1,000,000.00), or imprisonment not
less than one (1) year but not more than six (6) years, or
both.

If the offense is committed by a corporation, partnership, or other juridical

identity duly recognized in accordance with the law, the chief executive
officer, president, general manager, managing partner or such other
officer-in-charge shall be liable for the commission of the offense penalized
under this Act.

If the offender is an alien, he shall, after service of the sentence prescribed

above, be deported without further administrative proceedings.

The fines herein prescribed shall be increased by at lest ten (10%) percent
every three (3) years to compensate for inflation and to maintain the
deterrent functions of such fines.

Section 50. Administrative Sanctions - Local government officials and

officials of government agencies concerned who fail to comply with and
enforce rules and regulations promulgated relative to this Act shall be
charged administratively in accordance with R.A. 7160 and other existing
laws, rules and regulations

CHAPTER VII
MISCELLANEOUS PROVISIONS

Section 51. Mandatory Public Hearings - Mandatory public hearings for

national framework and local government solid waste management plans
shall be undertaken by the Commission and the respective Boards in
accordance with process to be formulated in the implementing rules and
regulations.

Section 52. Citizens Suits - For the purposes of enforcing the provisions of
this Act or its implementing rules and regulations, any citizen may file an
appropriate civil, criminal or administrative action in the proper
courts/bodies against:

(a) Any person who violates or fails to comply with the

provisions of this Act its implementing rules and regulations;
or

(b) The Department or other implementing agencies with

respect to orders, rules and regulations issued inconsistent
with this Act; and/or
 (c) Any public officer who willfully or grossly neglects the
performance of an act specifically enjoined as a duty by this
Act or its implementing rules and regulations; or abuses his
authority in the performance of his duty; or, in any many
improperly performs his duties under this Act or its
implementing rules and regulations; Provided, however, That
no suit can be filed until after thirty-day (30) notice has been
given to the public officer and the alleged violator concerned
and no appropriate action has been taken thereon.

The Court shall exempt such action from the payment of filing fees and
statements likewise, upon prima facie showing of the non-enforcement or
violation complained of, exempt the plaintiff from the filing of an injunction
bond for the issuance of preliminary injunction.

In the event that the citizen should prevail, the Court shall award
reasonable attorney's fees, moral damages and litigation costs as
appropriate.

Section 53. Suits and Strategic Legal Action Against Public Participation
(SLAPP) and the Enforcement of this Act - Where a suit is brought against
a person who filed an action as provided in Sec. 52 of this Act, or against
any person, institution or government agency that implements this Act, it
shall be the duty of the investigating prosecutor or the Court, as the case
may be, to immediately make a determination not exceeding thirty (30)
days whether said legal action has been filed to harass, vex, exert undue
pressure or stifle such legal recourses of the person complaining of or
enforcing the provisions of this Act. Upon determination thereof, evidence
warranting the same, the Court shall dismiss the complaint and award the
attorney's fees and double damages.

This provision shall also apply and benefit public officers who are sued for
acts committed in their official capacity, there being no grave abuse of
authority, and done in the course of enforcing this Act.

Section 54. Research on Solid Waste Management - The Department

after consultations with the cooperating agencies, shall encourage,
cooperate with, and render financial and other assistance to appropriate
government agencies and private agencies, institutions and individuals in
the conduct and promotion researches, experiments, and other studies on
solid waste management, particularly those relating to:

>
 (a) adverse health effects of the release into the environment
of materials present in solid wastes, and methods to eliminate
said effects;

(b) the operation and financing of solid waste disposal

programs;

(c) the planning, implementing and operation of resource

recovery and resource conservation systems;

(d) the production of usable forms of recovered resources,

including fuel from solid waste;

(e) the development and application of new and improved

methods of collecting and disposing of solid waste and
processing and recovering materials and energy from solid
waste;

(f) improvements in land disposal practices for solid waste

(including sludge); and

(g) development of new uses of recovered resources and

identification of existing or potential markets of recovered
resources.

In carrying out solid waste researches and studies, the Secretary of the
Department or the authorized representative may make grants or enter into
contracts with government agencies, nongovernment organizations and
private persons.

Section 55. Public Education and Information - The Commission shall, in

coordination with DECS, TESDA, CHED, DILG and PIA, conduct a
continuing education and information campaign on solid waste
management, such education and information program shall:

(a) Aim to develop public awareness of the ill-effects of and

the community based solutions to the solid waste problem;

(b) Concentrate on activities which are feasible and which will

have the greatest impact on the solid waste problem of the
country, like resource conservation and recovery, recycling,
segregation at source, re-use, reduction, and composing of
solid waste; and
 (c) Encourage the general public, accredited NGOs and
people's organizations to publicity endorse and patronize
environmentally acceptable products and packaging
materials.

Section 56. Environmental Education in the Formal and Nonformal

Sectors - The national government, through the DECS and in coordination
with concerned government agencies, NGOs and private institutions, shall
strengthen the integration of environmental concerns in school curricula at
all levels, with particular emphasis on the theory and practice of waste
management principles like waste minimization, specifically resource
conservation and recovery, segregation at source, reduction, recycling, re-
use,and composing, in order to promote environmental awareness and
action among the citizenry.

Section 57. Business and Industry Role - The Commission shall

encourage commercial and industrial establishments, through appropriate
incentives other than tax incentives to initiate, participate and invest in
integrated ecological solid waste management projects to manufacture
environment-friendly products, to introduce develop and adopt innovative
processes that shall recycle and re-use materials, conserve raw materials
and energy, reduce waste, and prevent pollution and to undertake
community activities to promote and propagate effective solid waste
management practices.

Section 58. Appropriations - For the initial operating expenses of the

Commission and the National Ecology Center as well as the expensed of
the local government units to carry out the mandate of this Act, the amount
of Twenty million pesos (P20,000,000.00) is hereby appropriated from the
Organizational Adjustment Fund on the year this Act is approved.
Thereafter, it shall submit to the Department of Budget and Management
its proposed budget for inclusion in the General Appropriations Act.

Section 59. Implementing Rules and Regulations (IRR) - The Department,

in coordination with the Committees on Environment and Ecology of the
Senate and House of Representative, respectively, the representatives of
the Leagues of Provinces, Cities, Municipalities and Barangay Councils,
the MMDA and other concerned agencies, shall promulgate the
implementing rules and regulations of this Act, within one (1) year after its
enactment: Provided, That rules and regulations issued by other
government agencies and instrumentalities for the prevention and/or
abatement of the solid waste management problem not inconsistent with
this Act shall supplement the rules and regulations issued by the
Department, pursuant to the provisions of this Act.
The draft of the IRR shall be published and be the subject of public
consultation with affected sectors. It shall be submitted to the Committee
on Environment Ecology of the Senate and House of Representatives,
respectively, for review before approved by the Secretary.

Section 60. Joint Congressional Oversight Committee - There is hereby

created a Joint Congressional Oversight Committee to monitor the
implementation of the Act and to oversee the functions of the Commission.
The Committee shall be composed of five (5) Senators and five (5)
Representatives to be appointed by the Senate President and Speaker of
the House of Representatives, respectively. The Oversight Committee shall
be co-chaired by a Senator and a Representative designated by the
Senate President and the Speaker of the House of Representatives,
respectively.

Section 61. Abolition of the Presidential Task Force On Waste

Management and the Project Management Office on Solid Waste
Management - The Presidential Task Force on Waste Management which
was created by virtue of Memorandum Circular No. 39 dated November 2,
1987, as amended by Memorandum Circular No. 39A and 88 is hereby
abolished.

Further, pursuant to Administrative Order No. 90 dated October 19, 1992,

the Project Management Office on Solid Waste Management is likewise
hereby abolished. Consequently their powers and functions shall be
absorbed by the Commission pursuant to the provisions of this Act.

Section 62. Transitory Provision - Pending the establishment of the

framework under Sec. 15 hereof, plans under Sec. 16 and promulgation of
the IRR under Sec. 59 of this Act, existing laws, regulations, programs and
projects on solid waste management shall

be enforced: Provided, That for specific undertaking, the same may be

revised in the interim in accordance with the intentions of this Act.

Section 63. Report to Congress - The Commission shall report to

Congress not later than March 30 of every year following the approval of
this Act, giving a detailed account of its accomplishments and progress on
solid waste management during the year and make the necessary
recommendations in areas where there is need for legislative action.

Section 64. Separability Clause - If any provision of this Act or the

application of such provision to any person or circumstances is declared
unconstitutional, the remainder of the Act or the application of such
provision to other persons or circumstances shall not be affected by such
declaration.

Section 65. Repealing Clause - All laws, decrees, issuances, rules and
regulations or parts thereof inconsistent with the provisions of this Act are
hereby repealed or modified accordingly.

Section 66. Effectivity - This Act shall take effect fifteen (15) days after its
publication in at least two (2) newspapers of general circulation.

Approved: January 26, 2001

(Sgd.)

GLORIA MACAPAGAL-ARROYO
President of the Philippines
 MALACAÑANG
Manila

PRESIDENTIAL DECREE No. 704 May 16, 1974

REVISING AND CONSOLIDATING ALL LAWS AND DECREES AFFECTING

FISHING AND FISHERIES

WHEREAS, fish is one of the major and cheapest sources of protein in the diet of the
Filipino people;

WHEREAS, 2.2 million Filipinos depend directly on the fishery industry for their
livelihood;

WHEREAS, the Philippines continues to import fish and fishery products in substantial
quantities because of the insufficiency of domestic production; lawphi1.net

WHEREAS, there is a compelling need to increase the production of fish to bring down
its price to a level which will be within the reach of our people, and at the same time
insure the continuity of out fishery resources in productive condition through wise
utilization and proper conservation; lawphi1.net

WHEREAS, the vast fishery resources of the Philippines have remained largely
untapped due to unnecessary constraints brought by existing laws and regulations and
by the failure to provide an integrated development program for the industry; and

WHEREAS, there is an urgent need to revise and consolidate all laws and decrees
affecting fishing and fisheries to make them even more responsive to the needs of the
fishery industry.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by

virtue of the powers vested in me by the Constitution, do hereby decree as part of the
law of the land the following:

Section 1. Title. This Decree shall be known as the fisheries Decree of 1975.

CHAPTER 1
DECLARATION OF POLICY DEFINITION OF TERMS

Section 2. Declaration of Policy. It is hereby declared the policy of the State to

accelerate and promote the integrated development of the fishery industry and to keep
the fishery resources of the country in optimum productive condition through proper
conservation and protection.

The government shall promote and encourage the organization of, provide assistance
to, and help integrate the activities of, persons, associations, cooperatives and
corporations engaged in the industry so that the nation may achieve the maximum
economic utilization of its fishery resources. In this connection, the fishery industry shall
be considered as preferred area of investment.

The government shall also encourage and promote the exportation of fish and
fishery/aquatic products to enable the fishery industry to contribute positively to the
development and growth of the national economy.

The private sector's privilege to utilize a fishery resource shall be exercised or continued
to be exercised only under the basic concept that the grantee, license or permittee
thereof shall not only be a privileged beneficiary of the State, but also an active
participant and partner of the government in the conservation and development of the
fishery resources of the country.

Section 3. Definition of Terms. As used in this Decree, the following terms are defined
as follows:

a) Bureau Means the Bureau of Fisheries and Aquatic Resources.

b) Closed season. Refers to the period during which fishing is prohibited in a

specified area or areas in Philippine waters, or to the period during which the
catching or gathering of specified species of fish or fishery/aquatic products or
the use of specified fishing gears to catch or gather fish or fishery/aquatic product
is prohibited.

c) Commercial fishing Fishing for commercial purposes in waters more than

seven fathoms deep with the use of fishing boats more than three gross tons.

d) Electro fishing Means the use of electricity generated by dry-cell batteries,

electric generators or other sources of electric power to kill, stupefy, disable or
render unconscious fish or fishery/aquatic products in both fresh and salt water
areas.

e) Family-size fishpond An area of fishpond that permits the efficient use of labor
and capital resources of a family to produce an income sufficient to meet a
family's need for food, clothing, shelter, health and education with reasonable
reserves to absorb yearly fluctuation in income.

f) Fish and fishery/aquatic products Fish includes all fishes and other aquatic
animals, such as crustaceans (crabs, prawns, shrimps and lobsters), mollusks
(clams, mussles, scallops, oysters, snails and other shellfish). Fishery/aquatic
products include all other products of aquatic living resources in any form.

g) Fishing boat Includes all boats, such as bancas, sailboats, motor boats or any
other type of watercraft, whether licensed or not, used for fishing purposes:
Provided, That any such boat used for the purpose of transporting the fish in the
course of fishing operations shall be considered as a fishing boat.

h) Fish corral or "baclad" Means a stationary weir or trap devised to intercept and
capture fish, consisting of rows of stakes of bamboo, palma brava or other
materials fenced with split bamboo mattings or wire nettings with one or more
enclosures usually with easy entrance but difficult exit, and with or without
leaders to direct the fish to the catching chambers or purse.

i) Fish pen means fish enclosure made of closely-woven bamboo screens or

nets, or other materials attached to poles staked to the water bottom for the
purpose of growing and/or culture of fish to various sizes in both fresh and salt
water areas.

j) Fishery Is the business of catching, taking, handling, marketing and preserving

fish or other fishery/aquatic products; the fishing grounds; and the right to fish or
take such products therefrom.

k) Fishery industry Includes fish produces, fish processors, fish traders, both
wholesalers and retailers, and owners of refrigerating and cold storage plants
serving the industry.

l) Fishing with the use of explosives Means the use of dynamite, other
explosives, or chemical compound that contains combustible elements or
ingredients that, upon ignition by friction, concussion, percussion, or detonation
of all or parts of the compound, kill, stupefy, disable or render unconscious any
fish or fishery/aquatic product. It shall also refer to the use of any other
substance and/or device that causes explosion capable of producing the said
harmful effects on fish or fishery/aquatic products.

m) Fishing with the use of obnoxious or poisonous substance Means the use of
any substance, plants, extracts or juice thereof, chemicals, whether in raw or
processed form, harmful or harmless to human beings, which kill, stupefy,
disable, or render unconscious fish or fishery/aquatic products.

n) Fully developed fishpond A clean, leveled area enclosed with dikes at least
one foot higher than the highest flood water level in the locality and strong
enough to resist water pressure at the highest flood tide, and consisting at least
of a nursery pond, a transition pond, a rearing pond, or a combination of any or
all of said classes of ponds, and water control system.

o) Municipal and/or small-scale fishing Fishing utilizing fishing boats of the three
gross tons or less, or using gear not requiring the use of boats.

p) Municipal waters Include not only streams, lakes, and tidal waters included
within the municipality not being the subject of private ownership, and not
 comprised within national parks, public forests, timber lands, forest reserves, or
fishery reserves, but also marine waters included between two lines drawn
perpendicular to the general coastline from points where the boundary lines of
the municipality touch the sea at low tide and a third line parallel with the general
coastline and three nautical miles from such coastline. Where two municipalities
are so situated on the opposite shores that there is less than six nautical miles of
marine waters between them, the third line shall be a line equi-distant from the
opposite shores of the respective municipalities.

Disputes regarding jurisdiction over fresh water lakes not included within the
limits of a municipality or freshwater or tidal streams forming boundaries between
municipalities, shall be referred by the councils of the municipalities concerned to
the provincial board.

q) Persons Include juridical entities such as associations, partnerships,

cooperatives or corporations.

r) Philippine waters Include all bodies of water within Philippine territory, such as
rivers, streams, creeks, brooks, ponds, swamps, lagoons, gulfs, bays and seas
and other bodies of water now existing, or which may hereafter exist in the
provinces, cities, and municipalities, municipal districts, and barrios; and the sea
or fresh water around, between and connecting each of the islands of the
Philippine archipelago, irrespective of its depth, breadth, length and dimension,
and all other belonging to the Philippines by historic or legal title, including the
territorial sea, the seabed, the insular shelves and other submarine areas over
which the Philippines has sovereignty or jurisdiction.

s) Refrigerating and cold storage plants Consist of a set of refrigerating

machinery housed in a building with cold storage compartments, for making ice
and freezing and storing fish and fishery/aquatic products exclusively for the
fishery industry.

t) Secretary Means the Secretary of natural Resources.

CHAPTER II
THE BUREAU OF FISHERIES AND AQUATIC RESOURCES

Section 4. Jurisdiction of the Bureau. The Bureau shall have jurisdiction and
responsibility in the management, conversation, development, protection, utilization and
disposition of all fishery and aquatic resources of the country except municipal waters
which shall be under the municipal or city government concerned: Provided, That, fish
pens and seaweed culture in municipal centers shall be under the jurisdiction of the
Bureau: Provided, further, That all municipal or city ordinances and resolutions affecting
fishing and fisheries and any disposition thereunder shall be submitted to the Secretary
for appropriate action and shall have full force and effect only upon his approval. The
Bureau shall also have the authority to regulate and supervise the production, capture
and gathering of fish and fishery/aquatic products.

The Bureau shall prepare and implement, upon approval of the Fishery Industry
Development council, a Fishery Industry Development Program.

Section 5. Supervision and Control. The Bureau shall be directly under the control and
supervision of the Secretary of Natural Resources.

Section 6. Review. All actions decisions of the Director of Fisheries and Aquatic
Resources are subject to review, motu proprio or upon appeal of any person aggrieved
thereby, by the Secretary whose decision shall be final and executory after the lapse of
thirty (30) days from receipt by the aggrieved party of said decision, unless appealed to
the President in accordance with the Executive Order No. 19, series of 1966. The
decision of the Secretary may not be reviewed by the courts except through the special
civil action of certiorari and prohibition.

Section 7. Rules and Regulations. The Secretary shall, upon recommendation of the
Director, promulgate rules and regulations to implement effectively the provisions of the
Code, Such rules and regulations shall, unless otherwise herein provided. take effect
fifteen (15) days after its publication in the Official Gazette and/or two newspapers of
general circulation.

Section 8. Technical Assistance and Training Program. The Bureau shall undertake or
arrange special technical assistance and training programs for the enhancement of the
fishery industry and provide assistance to fishery educational institutions in their
research and instructional activities, and in connection therewith to maintain and
operate fishing boats.

Section 9. Research and Demonstration Service. The Bureau shall conduct research
and studies regarding fish and fishery/aquatic products; establish fish hatcheries,
nurseries and demonstration fishponds; conduct experiment and demonstration
services on fish capture and gathering fishery/aquatic products, and the culture and
processing thereof; conduct oceanographic and limnological surveys; and dissiminate
the result of such research, studies and surveys.

Section 10. Fish landing points. The Bureau shall determine and designate fish landing
points where all commercial fishing boats shall land and unload their catch: Provided,
That all fish landing points established prior to the effectivity of this Decree shall be
considered authorized fish landing points: Provided, further, That any fish landing point
may, if circumstances so warrant, he closed.

Section 11. New Divisions in the Bureau. To carry out efficiently its functions under this
Decree, the following new divisions are hereby created in the Bureau: Legal Division,
Fisheries Conservation and Enforcement Division, Fisheries Extension Division,
Fisheries Utilization Division, Fisheries Engineering Division and Fisheries Training
Division: Provided, That the new divisions shall be staffed by the Director from qualified
personnel of the Bureau as first priority, and proposals for additional necessary
personnel shall be included in the Bureau's appropriation for the succeeding year.

CHAPTER III
THE FISHERY INDUSTRY DEVELOPMENT COUNCIL

Section 12. Creation and Membership of the Council. To implement the policy
enunciated in Section Two of this Decree, there is hereby created a Fishery Industry
Development Council, hereinafter referred to as the Council, which shall be composed
of the following:

Secretary of Natural Resources Chairman

Secretary of Agriculture Member
Secretary of National Defense Member
Secretary of Trade Member
Secretary of Public Works, Member
Transportation and Communications
Governor of the Central Bank of The Member
Philippines
Chairman of the Development Bank Member
of the Philippines
President of the Philippine National Member
Bank
Chairman of the Board of Member
Investments
Director of Fisheries and Aquatic Member and
Resources Executive
Officer
A representative of the inland Member
fisheries associations
A representative of the marine Member
fisheries associations

The two representatives from the private sector shall be appointed for a term of two (2)
years by the Secretary upon the recommendation of the Director.
Upon the effectivity of this Decree, the Council shall be constituted. The Council shall
meet at least once a month: Provided, That the Chairman may convene the Council in
special meetings to consider urgent matters. If the Chairman cannot attend any
meeting, the members present shall select from among themselves a temporary
presiding officer. If any of the members shall not be able to attend any meeting of the
Council, he shall send a duly authorized representative to exercise his powers and
perform his functions.

The Council shall adopt rules and regulations necessary to govern its proceedings.

The Executive Officer shall charged with the duty of implementing the policies and
guidelines established by the Council.

Section 13. Function of the Council. The Council shall formulate and establish
comprehensive policy guidelines for the management, protection, conservation and
utilization of the fishery/aquatic resources of the country and for the creation of a
healthy investment climate for the development o the fishery industry. It shall collect
data and information from member agencies and the private sector for the formulation of
policy guidelines.

Section 14. Council Secretariat and its Director. The Council shall have a secretariat
which shall furnish the necessary administration, secretarial and other service support
to the Council. The secretariat shall be under the support to the Council. The secretariat
shall be under the direction and supervision of a Secretariat Director who shall be
appointed, and whose compensation shall be fixed, by the Chairman of the Council. The
personnel of the Secretariat shall be appointed, and their compensation fixed, by the
Chairman upon recommendation of the Secretariat Director.

Section 15. Role of Member-Agencies. A. The Central Bank of the Philippines, through
the Monetary Board, shall be primarily responsible for seeking ways and means of
financing the requirements of the Program in all its aspects. For this Purpose, it shall, in
addition to its present powers and functions, undertake the following activities:

1. Coordinate the policies, programs and activities of all banks and

financial institutions relating to the grant or extension of credit to persons,
associations, cooperatives, and corporations engaged in the fishery
industry;

2. Facilitate the grant of preferential rates in the rediscounting of papers

involving loans for the fishery industry; and

3. Facilitate the grant of concessionary rate of interest on loans for the

development of the fishery industry upon certification by the Director of
Fisheries and Aquatic Resources.
B. The Department of National Defense, principally through the Philippine Coast
Guard shall extend all assistance, including personnel and equipment, as may be
necessary in the enforcement of fishery laws, rules and regulations to help attain
the aims and objectives of this Decree.

C. The Department of Agriculture shall:

1. Undertake soil sampling and provide or help provide fertilizers for fish
farming purposes; and

2. Perform such other functions as may be imposed upon it by law or

requested by the Council in the acceleration of fish farming and/or in the
furtherance of the objectives of this Decree.

D. The Department of Trade shall:

1. Plan and prepare such measures as may be necessary to promote

exports of fish and fishery/aquatic products; and

2. Perform such other functions as may be imposed upon it by law or

requested by the Council in furtherance of the objectives of this Decree.

E. The Department of Public Works, Transportation and Communications shall;

1. Upon request of the Council, undertake site survey and investigation,

draw plans for, and construct, infrastructure facilities for the fishery
industry; and

2. Perform such other functions as may be imposed upon it by law or

requested by the Council in furtherance of the objectives of this Decree.

F. The private sector of the fishery industry shall direct their collective efforts
towards a more active cooperation and coordination with government agencies to
attain the objectives of this Decree.

It shall:

1. Assume the primary responsibility of accelerating the development of

the industry;

2. Conduct research and experiments in cooperation with government

agencies;

3. Allow implementing agencies of the government access to such

statistical data and information as would be necessary in the formulation
of sound policies; and
 4. Take active participation, in collaboration with the Bureau and other
government agencies, in technical manpower training by giving on-the-job
training opportunities to fisheries apprentices, trainees and volunteers.

CHAPTER IV
UTILIZATION AND EXPLOITATION OF FISHERY/AQUATIC RESOURCES

Section 16. License, lease and permit. No person shall exploit, occupy, produce,
culture, capture or gather fish, or fry or fingerling of any species of fish, or
fishery/aquatic products, or engage in any fishery activity in Philippine or municipal
waters without a license, lease or permit: Provided, That when due to destruction
wrought upon fishponds, fishpens or fish nurseries, by typhoons, floods and other
fortuitous events, or due to speculation, monopolistic and other pernicious practices
which tend to create an artificial shortage of fry and/or fingerling, the supply of fish and
fishery/aquatic products can reasonably be expected to fall below the usual demand
therefor and the price thereof, to increase, the Secretary, upon recommendation of the
Director, is hereby authorized to fix a fair and reasonable price for fry and fingerling of
any species of fish, and in so doing and when necessary, fix different price levels for
various areas or regions taking into account such variable factors as availability,
accessibility to transportation facilities, packing and crating, and to regulate the
movement, shipment and transporting of such fry and fingerling: Provided, further, That
the price so fixed shall guarantee the gatherers of fry a just and equitable return for their
labor: Provided, finally, That any administrative order issued by the Secretary to
implement the foregoing shall take effect immediately, the provisions of Section 7 hereof
to the contrary notwithstanding.

Section 17. Commercial fishing boat license and other licenses. No person shall
operate a commercial fishing boat, pearl fishing boat or fishing boat for scientific,
research or educational, purposes, or engage in any fishery activity, or seek
employment as a fisherman without first securing a license from the Bureau: Provided,
That no such special permit shall be required of a fishing boat engaged in scientific,
research or educational purposes within Philippine waters pursuant to an international
agreement of which the Philippines is a signatory, and which agreement defines the
status, privileges and obligations of said boat and its crew and the non-Filipino officials
of the international agency under which said boat operates: Provided, further, That the
members of the crew of a fishing boat used for commercial fishing, including but not
limited to duly licensed and/or authorized patrons, marine engineers, radio operators
and cooks, shall be considered as fisherman: Provided, furthermore, That the
commercial fishing boat license herein authorized to be granted shall allow the license
to operate only in Philippine waters seven (7) or more fathoms deep subject to the
conditions that may be stated therein and the rules and regulations that may, from time
to time, be promulgated by the Secretary: Provided, finally, That baby trawls using
fishing boats of three (3) gross tons or less may operate in areas four (4) fathoms deep
or more if authorized by existing municipal ordinances duly approved by the Secretary.
The Philippine Coast Guard shall perform all functions pertaining to the registration,
documentation, inspection and manning of all types of fishing boats plying Philippine
waters except those hereinabove vested in the Bureau of Fisheries and Aquatic
Resources: Provided, That a fishing boat may, upon inspection and verification by the
Maritime Safety Division and Naval Architecture and Engineering Section of the
Philippines Coast Guard that the fishing boat is seaworthy and fit for operations, be
accepted for registration, documentation, and licensing purposes: Provided, further,
That the coastwise license shall not be required of fishing boats.

Every boat of Philippine registry of 10 gross tons more but less than 500 tons, which is
operated exclusively as a fishing boat for catching and transporting fish in the territorial
waters of the Philippines may be operated at least by one licensed deck officer and one
licensed engine officer, the qualifications of who shall be prescribed by the Philippine
Coast Guard, which qualifications may, considering that the fishing boat will not
transport passengers and/or cargo, be less than those required of similar officers
employed in vessels engaged in the coastwise trade.

Any provision of law to the contrary notwithstanding all finishing boats shall be provided
with adequate medical supplies and life-saving devices to be determined by the
Philippine Coast Guard: Provided, That a fishing boat twenty (20) gross tons or more
shall have in its employ a person qualified as a First Aider duly certified by a
government physician.

Section 18. Permit for importation or exportation of fish or fishery/aquatic products. No

person shall import or export any fish or fishery/aquatic product, whether adult or young,
fry or fish eggs, for propagation or for other purposes, without first securing a permit
therefor and paying the inspection and other fees: Provided, That exportation of fry,
except "bangus" fry exportation of which is totally banned, shall be allowed only after
the requirement of the domestic fishing industry are met: Provided, further, That no
other inspection fee shall be imposed and collected by any other government office or
agency.

Section 19. Development of the Fish Meal Industry. To maximize the utilization of fish
and fishery products and to complement the development of the animal industry, steps
shall be taken to promote the production of fish meal.

A. DEEP-SEA OR OFFSHORE FISHING

Section 20. Persons eligible for commercial fishing boat license. No commercial fishing
boat license shall be issued except to citizens of the Philippines or to associations or
corporations duly registered in the Philippines, at least sixty per cent (60%) of the
capital stock of which is owned by Filipino citizens. No person to whom a license has
been issued shall sell, transfer, or assign, directly or indirectly, his stock or interest
therein to any person not qualified to hold a license, and any such transfer, sale or
assignment shall be null and void and shall not be registered in the books of the
association or corporation.
For purposes of commercial fishing, fishing boats owned by citizens of the Philippines
and corporations or associations qualified under this section, may be issued certificates
of Philippine registry and such other documents as are necessary for fishing operations,
any provision of law to the contrary notwithstanding: Provided, That the certificate of
Philippine registry shall be valid only as long as the fishing boat is engaged in, or used
for, fishing operations. For the purpose of this section, fishing operation include the
transportation of the fish caught.

Section 21. Charter contracts, lease or lease-purchase agreements and contracts for
assistance. Citizens of the Philippines and qualified corporations or associations
engaged in commercial fishing may, subject to the approval of the Secretary, enter into
charter contracts, lease or lease-purchase agreements of fishing boats, or contracts for
financial, technical or other forms of assistance with any foreign person, corporation or
entity for the production, storage, marketing and processing of fish and fishery/aquatic
products: Provided, That the foreign crew members of the foreign fishing boat who shall
not exceed seventy-five per cent (75%) of the complement of the boat, may be issued
fishermen's license subject to security clearance by the Philippine Coast Guard and to
the rules, regulations and guidelines to be promulgated by the Council: Provided,
further, That it shall be a condition in all charter contracts, lease or lease-purchase
agreements that Filipino seamen and fishermen shall be given instruction and training
by the foregoing crew members in the operation of the fishing boat and the use of
fishing gears and after two years shall replace all foreign crew members.

Charter contracts, lease or lease-purchase agreement and contacts for financial,

technical or other forms of assistance with any foreign person, corporation or entity,
shall be subject to the guidance promulgated by the Council and the approval of the
Secretary: Provided, That payments under such contracts or agreements shall be made
in kind, i.e., in export items of fish and/or fishery/aquatic products.

Section 22. Operation of radio communication facilities on board fishing boats. Any
employee on board a fishing boat capable of operating radio transceivers may be
authorized by the Radio control Office to operate such transceivers during fishing
operations without the necessity of qualifying in the examination prescribed by existing
laws and regulations: Provided, That the Radio Control Office shall give practical
examinations to persons with sufficient experience and knowledge of radio telephone
and/or telegraphy, for the purpose of qualifying them as radio operators on board fishing
boats only.

No franchise shall be required for the installation and operation of radio transceivers on
board fishing boats and in their home-based stations: Provided, That the radio Control
Office shall, upon application, issue a permit and assign a pre-set frequency to a
qualified applicant for the installation and operation of radio transceivers on board his
fishing boats and home-based stations subject to the rules and regulations prescribed
by said office and consistent with the requirements of national security: Provided,
Further, That the Philippine coast Guard shall be informed by the Radio Control Office
of the pre-set radio frequencies assigned to fishing boat operators.
B. INLAND FISHERIES

Section 23. Disposition of Public Lands for Fishponds. Upon the effectivity of the
Decree, no public lands suitable for fishpond purposes shall be disposed by sale:
Provided, That only fishpond sales patent already processed and approved on or before
November 9, 1972, shall be given due course subject to the condition that such
application covers a fully developed fishpond not exceeding twenty-four (24) hectares.

Section 24. Lease of Fishponds. Public lands available for fishpond development
including those earmarked for family-size fishponds and not yet leased prior to
November 9, 1972 shall be leased only to qualified persons, associations, cooperatives
or corporations, subject to the following conditions:

1. The lease shall be for a period of twenty-five (25) years, renewable for another
twenty-five (25) years.

2. Fifty per cent (50%) of the area leased shall be developed and be producing in
commercial scale within three (3) years and the remaining portion shall be
developed and be producing in commercial scale within five (5) years, both
periods to begin from the execution of the lease contract;

3. All areas not fully developed within five (5) years from the date of execution of
the lease contract shall automatically revert to the public domain for disposition
by the Bureau. Provided, That a lessee who failed to develop the area or any
portion thereof shall not be permitted to re-apply for said or any portion thereof or
any public land under this Decree; and

4. No portion of the lease shall be sub-leased.

Section 25. Size of Fishponds. The area of fishponds leased under the preceding
section shall not exceed the following:

1. For individuals fifty hectares; and

2. For associations and corporations five hundred hectares.

Provided, That, if circumstances so warrant, a larger area may, with the approval
of the Secretary, be leased to qualified applicants.

Section 26. Construction and Development of Family-Size Fishponds. For the purpose
of accelerating the development of fishponds, the Bureau, subject to the approval of the
Secretary, shall identify and set aside public lands which shall be subdivided into family-
size fishponds and leased in accordance with guidelines established by the Council.

Section 27. License to Operate Fishpens. No person shall construct and/or operate a
fishpen without first securing a license from the Bureau, any license or permit issued by
the major of the municipality claiming jurisdiction over the area in which the fish pen will
be constructed to the contrary notwithstanding. The License shall be for a period of five
(5) years renewable for another five (5) years.

The maximum area that can be licensed for a fish pen shall be ten (10) hectares in the
case of an individual and fifty (50) hectares in the case of an association, partnership,
cooperative or corporation.

Section 28. No obstruction to navigation. Nothing in the foregoing sections shall be

construed as permitting the lessee or licensee to undertake any construction which will
obstruct the free navigation in any stream or lake flowing through or adjoining the fish
pen or fishpond, or impede the flow and ebb of the tide to and from the area. Any
constructions made in violation hereof shall be removed upon order of the Secretary.

C. MUNICIPAL FISHERIES

Section 29. Grant of Fishery Privileges. A municipal or city council, conformably with an
ordinance duly approved by the Secretary pursuant to section 4 hereof may:

(a) grant to the highest qualified bidder the exclusive privilege of constructing and
operating fish corrals, oyster culture beds or of gathering "bangus" fry, or the fry
of other species, in municipal waters for a period not exceeding five (5) years:
Provided, That in the zoning and classification of municipal waters for purposes
of awarding, through public bidding, areas for the construction or operation of fish
corrals, oyster culture beds or the gathering of fry, the municipal or city council
shall set aside not more than one-fifth (1/5) of the area earmarked for the
gathering of fry, as may be designated by the Bureau, as government "bangus"
fry reservation: Provided, Further, That no fish corral shall be constructed within
two hundred (200) meters of another fish corral in marine fisheries, or one
hundred (100) meters in fresh water fisheries, unless they belong to the same
licensee, but in no case shall the distance be less than sixty (60) meters, except
in waters less than two (2) meters deep at low tide, or unless previously
approved by the Secretary;

(b) authorize the issuance to qualified persons of license for the operation of
fishing boats three (3) gross tons or less, or for the privilege of fishing in
municipal waters with nets, traps or other fishing gear: Provided, That it shall be
beyond the power of the municipal or city council to impose a license for the
privilege of gathering marine mollusca or the shells thereof, for pearling boats
and pearl divers, or for prospecting, collecting, or gathering sponges or other
aquatic products, or for the culture of fishery/aquatic products: Provided, further,
That a licensee under this paragraph shall not operate within two hundred (200)
meters of any fish corral but in no case within sixty (60) meters of said corral. The
municipality or city council (60) meters of said corral. The municipality or city
council shall furnish the Bureau, for statistical purposes, on forms which shall be
 furnished by the Bureau, such information and data on fishery matters as are
reflected in such forms.

Section 30. Municipality concessions and leases concerning fisheries. No lease or

concession granted by a municipal or city council under authority of an ordinance
approved pursuant to section 4 hereof, concerning fishing or fisheries in streams, lakes,
rivers, in land and/or municipal waters, shall be valid and enforceable unless the
Secretary, upon recommendation of the Director, approves the same.

CHAPTER V
RESERVE FISHERIES AND FISH SANCTUARIES

Section 31. Fishing areas reserved for exclusive use of government. Upon the
recommendation of the Director, the Secretary may designate by fishery administrative
order, area or areas in the Philippine waters as fishery reservation for the exclusive use
of the Government or of any of its political subdivisions, agencies or instrumentalities, or
of the inhabitants of any municipality, or for the culture of fish and other aquatic animals
for educational, research and scientific purposes.

Section 32. Fish refuges and sanctuaries. Upon the recommendation of the Director,
the Secretary may set aside and establish fish refuges and sanctuaries to be
administered in the manner to be prescribed by him. All streams, ponds, and waters
within game refuges, bird sanctuaries, national parks, botanical gardens, communal
forests and communal pastures are hereby declared fish refuges and sanctuaries.

CHAPTER VI
PROHIBITION AND PENALTIES

Section 33. Illegal fishing, dealing in illegally caught fish or fishery/aquatic products. It
shall be unlawful for any person to catch, take or gather or cause to be caught, taken or
gathered fish or fishery/aquatic products in Philippine waters with the use of explosives,
obnoxious or poisonous substance, or by the use of electricity as defined in paragraphs
(1), (m) and (d), respectively, of Section 3 hereof: Provided, That the Secretary may,
upon recommendation of the Director and subject to such safeguards and conditions he
deems necessary, allow for research, educational or scientific purposes only, the use of
explosives, obnoxious or poisonous substance or electricity to catch, take or gather fish
or fishery/aquatic products in specified area: Provided, further, That the use of
chemicals to eradicate predators in fishponds in accordance with accepted scientific
fishery practices without causing deleterious effects in neighboring waters shall not be
construed as the use of obnoxious or poisonous substance within the meaning of this
section: Provided, finally, That the use of mechanical bombs for killing whales,
crocodiles, sharks or other large dangerous fishes, may be allowed, subject to the
approval of the Secretary.
It shall, likewise, be unlawful for any person knowingly to possess, deal in, sell or in any
manner dispose of, for profit, any fish or fishery/aquatic products which have been
illegally caught, taken or gathered.

The discovery or dynamite, other explosives and chemical compounds containing

combustible elements, or obnoxious or poisonous substance, or requirement or device
for electric fishing in any fishing boat or in the possession of a fisherman shall constitute
a presumption that the same were used for fishing in violation of this Decree, and the
discovery in any fishing boat of fish caught or killed by the cause of explosives,
obnoxious or poisonous substance or by electricity shall constitute a presumption that
the owner, operator or fisherman were fishing with the use of explosives, obnoxious or
poisonous substance or by electricity.

Section 34. Fishing with fine-mesh nets. It shall be unlawful for any person to fish with
nets with mesh smaller than that which may be fixed by rules and regulations
promulgated conformably with the provisions of section 7 hereof: Provided, That this
prohibition in the use of fine-mesh nets shall not apply to the gathering of fry, glass cells
and elvers and such species which by their very nature are small but already mature.

Section 35. Trawl fishing in waters seven fathoms deep or less. Subject to the
provisions of Section 17 hereof, no person shall operate trawls in waters seven fathoms
deep or less.

Section 36. Ban on exportation of Bangus Fry. It shall be unlawful for any person to
export "bangus" fry.

Section 37. Pollution of waters. It shall be unlawful to place, cause to be placed,

discharge or deposit, or cause to be discharged or deposited, or to pass or place where
it can pass into Philippine waters, petroleum, acid, coal, or oil tar, lampback, aniline,
asphalt, bitumen, or residuary products of petroleum or carbonaceous material or
substance, mollasses, mining and mill tailings, or any refuse, liquid or solid, from any
refinery, gas house, tannery, distillery, chemical works, sugar central, mill or factory of
any kind, or any sawdust, shavings, slabs, edgings, or any factory refuse or any
substance or material deleterious to fish or fishery/aquatic life.

Section 38. Penalties. (a) For illegal fishing and dealing in illegally caught fish or
fishery/aquatic products. Violation of Section 33 hereof shall be punished as follows:

(1) By imprisonment from ten (10) to twelve (12) years, if explosives are
used: Provided, That if the explosion results 1) in physical injury to any
person, the penalty shall be imprisonment from twelve (12) to twenty (20)
years, or 2) in the loss of human life, then the penalty shall be
imprisonment from twenty (20) years to life, or death;

(2) By imprisonment from eight (8) to ten (10) years, if obnoxious or

poisonous substances are used: Provided, That if the use of such
 substances results 1) in physical injury to any person, the penalty shall be
imprisonment from ten (10) to twelve (12) years, or 2) in the loss of human
life, then the penalty shall be imprisonment from twenty (20) years to life
or death;

(3) By imprisonment from two (2) to four (4) years, if electricity is used;
and

(4) By imprisonment from two (2) to six (6) years for dealing in illegally
caught fish or fishery/aquatic products.

(b) Trawl fishing. Violation of section 35 hereof shall be punished by a fine not
exceeding one thousand pesos (P1,000.00) or imprisonment for a period not
exceeding one (1) year, or both fine and imprisonment, in the discretion of the
Court.

(c) Exportation of "bangus" fry. Violation of section 36 shall be punished by a fine

of not less than one thousand pesos (P1,000.00) nor more than five thousand
pesos (P5,000.00) or by imprisonment for not less than one (1) year nor more
than five (5) years, or both such fine and imprisonment, in the discretion of the
Court.

(d) Other violations. Violation of any other provision of this Decree, or of any rule
or regulation already existing, or which may be promulgated pursuant to this
Decree, shall subject the offender to fine of from five hundred pesos (P500.00) to
five thousand pesos (P5,000.00) or imprisonment from six (6) months to four (4)
years, or both such fine and imprisonment, in the discretion of the Court:
Provided, That the Director of Fisheries and Aquatic Resources is hereby
empowered to impose upon the offender an administrative fine of not more than
five thousand (P5,000.00) or to cancel his permit or license, in the discretion of
the Director: Provided, further, That the Director, or his duly authorized
representative, and law enforcement agents are hereby empowered to impound
with the assistance of the Philippine Coast Guard, if necessary, the fishing boat
including the dynamite, blasting caps and other explosives, obnoxious or
poisonous substances, and apparatus used in electric fishing, and other
apparatus used in illegal fishing, pending the termination of the criminal case by
competent courts: Provided; finally, That any person who unlawfully obstructs or
delays the inspection and/or movement of fish and fishery/aquatic products when
such inspection and/or movement is authorized under this Decree, shall be
subject to a fine of not more than two thousand pesos (P2,000.00) or
imprisonment of not more than two (2) years, or both such fine and
imprisonment, in the discretion of the Court.

Any public official, who enforces an ordinance, resolution, rule and/or regulation
concerning fishing and fisheries not previously approved by the Secretary, shall
be criminally prosecuted and, upon conviction, shall suffer the penalty of not
 more than five (5) years imprisonment or a fine of not more than ten thousand
pesos (P10,000.00) or both such fine and imprisonment, in the discretion of the
Court.

Action on any violation mentioned in this Chapter shall be taken if the Secretary
so decides.

Section 39. Seizure proceedings. Any foreign fishing boat illegally engaged in fishing
within Philippine waters shall be summarily confiscated administratively, including its
catch and fishing equipment, without prejudice to any civil or criminal action that may be
taken against its owners and/or operators.

Section 40. Persons authorized to enforce this Decree and fisheries rules and
regulations. Members of the Philippine Coast Guard, Philippine Constabulary, local
police force, government law enforcement agencies and other competent government
employees duly designated in writing by the Secretary, are hereby made deputies of
said Secretary in the enforcement of this Decree and fisheries rules and regulations.

Section 41. Compromise. With the approval of the Secretary, the Director may, at any
stage of the proceeding, compromise any case arising under any provision of the
Decree, subject to the following schedule of administrative fines:

a) Vessels entering fishery reserve or closed areas. Any vessel, licensed or

unlicensed, entering a fishery reserve or a declared closed area for the purpose
of fishing shall be fined in a sum not exceeding five thousand pesos (P5,000.00).

b) Vessels fishing or continuing to fish after the expiration of the license. A vessel
continuing to fish within sixty (60) days from the date of expiration of the license
shall pay the ordinary annual license fee in full. A vessel fishing or continuing to
fish without having produced the renewal of the license therefor shall be fined in
a sum not exceeding fifty pesos (P50.00) for every month the license remains
unrenewed.

c) Vessel employing unlicensed fishermen. A vessel found employing unlicensed

fishermen shall be fined in a sum of not less than fifty pesos (P50.00) nor more
than one hundred pesos (P100.00) for each fishermen and for each month such
fishermen is employed.

d) Obstruction of fishery officers. The owner, master or operator of any fishing

boat, whether licensed or not, who obstructs or hinders, or causes to be
obstructed or hindered, any fishery officer from boarding such boat to enable said
officer to perform his duty shall be fined in an amount not exceeding five hundred
pesos (P500.00). In addition, the license of the fishing boat may be cancelled.
 e) Failure to submit required reports. The owner, master or operator of a fishing
boat who fails to submit a required report within thirty (30) days after due date
shall be fined in an amount not exceeding five pesos (P5.00).

g) Transfer of ownership or lease of fishing boat to be reported. Any owner of a

fishing boat who fails to notify the Director of the sale or lease of the boat to
another person within ten (10) days after the sale or lease, shall be fined in an
amount not exceeding two hundred pesos (P200.00).

h) Vessel engaging in fishing without license. The owner, master or operator of a

fishing boat engaging in fishing operations without a license shall be fined in an
amount not exceeding one thousand pesos (P1,000.00) for each month or
fraction thereof of operation.

i) Other violations. Other violations may be compromised: Provided, That the fine
shall not be less than fifty per cent (50%) of the fine originally imposed for the
violation.

CHAPTER VII
GENERAL PROVISIONS

Section 41. The Fisheries Loan and Guarantee fund. There is hereby created the
Fisheries Loan an Guarantee Fund which shall be administered by the Central Bank of
the Philippines. The fund shall, through the financial institutions mentioned in Section 42
hereof, be available for lending to qualified borrowers to finance the development of the
fishery industry.

The Fund shall also guarantee eighty-five per cent (85%) of the losses which may be
suffered by the lending institution in case of default by the borrower, with the remaining
fifteen per cent (15%) of such losses being absorbed by the lending institution.

Section 42. Loans to the Fishery Industry. The Development Bank of the Philippines,
the Philippine National Bank, and the Philippine Veterans Bank and other government-
owned or controlled banking or financial institutions and rural banks shall make loans
available to eligible borrowers as their respective charters and articles of incorporation
and by-laws provide and policies of the Central Bank of the Philippines allow: Provided,
That projects of veterans and their qualified heirs within the purview of the Program
shall be funded by the Philippine Veterans Bank, with priority to family-size fishponds:
Provided, further, That the Development Bank of the Philippines, the Philippine National
Bank, and the Philippine Veterans Bank and other government-owned or controlled
banking of financial institutions and rural banks dealing with medium and long-term
loans shall:

a) Grant loans for the development, rehabilitation and maintenance of fishponds,

fishpens and acquisitions of fishing boats and fishing equipment;
 b) Extend loan for production, handling, processing and marketing, including the
establishment and operation of refrigerating plants and cold storage facilities;

c) Grant loans to leaseholders of public lands for the development of fishponds:

Provided, that the duration of the lease contract shall be longer than the period of
repayment of the loan.

All loans shall be extended under supervised credit as prescribed by Republic

Act Numbered Sixty-three hundred and ninety or other laws, or under project
supervision.

Section 43. Financing of Municipal and/or Small-Scale fishing. Municipal and/or small-
scale fisherman who are members of a cooperative may avail of financing from any fund
administered by the Central Bank or from rural banks under a supervised credit
scheme. Such loan may cover the acquisition and/or repair of bancas, engines and
fishing equipment.

Section 44. Establishment and Operation of Refrigerating and Cold-Storage

Plants. Any provision of law to the contrary notwithstanding, any person, association,
cooperative or corporation may establish and operate subject to the guidelines
established by the Council and the approval of the Secretary, refrigerating and cold
storage plants which shall serve the fishing industry exclusively.

Section 45. Exemption of Fisherman from Operation of the Blue Sunday Law and the
Eight-Hour Labor Law. Fishermen on board fishing boats engaged in fishing operations
are hereby exempted from the provisions of the Blue Sunday Law and the Eight-Hour
Labor Law.

Section 46. Auditor. The Chairman, Commission on Audit, shall act as the ex-officio
auditor of the Fishery Industry Development Council and the Bureau of Fisheries and
Aquatic Resources. The provisions Section 584 of the Revised Administrative Code, as
amended by Presidential Decree No. 61, shall apply to the office of the representative of
the said Chairman in the Council and the Bureau.

Section 47. Receipts of Bureau automatically appropriated for certain purposes. In

addition to the amount appropriated for the Bureau in the annual general appropriations
act/decree, all fees collected pursuant to this Decree and the rules and regulations
promulgated by virtue of this Decree and other laws, bonds that may be forfeited, fines,
proceeds from the sale of fish and fishery/aquatic products raised in fish farms,
experimental and demonstration stations, rentals from fishponds and receipts from other
sources except the proceeds of the sale of assets of the Bureau, will be released by the
President upon recommendation of the Secretary annually and made available to the
Bureau for the conservation and development of fishery/aquatic resources, construction
of permanent improvement including offices and other buildings and acquisition of sites,
promotion and development of the fishing industry, operation and maintenance of
experimental fishery stations, and for salaries and wages of necessary personnel.
Section 48. Appropriation. The sum of twenty-one million pesos (P21,000,000.00), one
million pesos (P1,000,000.00) of which shall be for the operational expenses of the
Fishery Industry Development Council for the current fiscal year and the remaining
balance to constitute the Fisheries Loan and Guarantee Fund, is hereby authorized to
be appropriated out any funds in the National Treasury not otherwise appropriated.

Section 49. Repealing Clause. Presidential Decrees Nos. 43, 534 and 553, Act No.
4003, as amended, Republic Acts No. 428, as amended, 3048, 3512, and 3586, and all
Decrees, Acts, Executive Orders, rules, regulations or parts thereof inconsistent with the
provisions of this Decree are hereby repealed or modified accordingly.

Section 50. Separability Clause. The provisions of this Decree are hereby declared to
be separable and, if any clause, sentence, provision or section of this Decree or
application thereof to any person or circumstances should for any reason be held
invalid, such invalidity shall not affect the other provisions or application of this Decree.

Section 51. Effectivity. This Decree shall take effect upon promulgation.

Done in the City of Manila, this 16th day of May, in the year of Our Lord, nineteen
hundred and seventy-five.
 MALACAÑANG
Manila

PRESIDENTIAL DECREE No. 705 May 19, 1975

REVISING PRESIDENTIAL DECREE NO. 389, OTHERWISE KNOWN AS THE FORESTRY

REFORM CODE OF THE PHILIPPINES

WHEREAS, proper classification, management and utilization of the lands of the public domain to
maximize their productivity to meet the demands of our increasing population is urgently needed;

WHEREAS, to achieve the above purpose, it is necessary to reassess the multiple uses of forest
lands and resources before allowing any utilization thereof to optimize the benefits that can be
derived therefrom;

WHEREAS, it is also imperative to place emphasis not only on the utilization thereof but more so on
the protection, rehabilitation and development of forest lands, in order to ensure the continuity of
their productive condition;

WHEREAS, the present laws and regulations governing forest lands are not responsive enough to
support re-oriented government programs, projects and efforts on the proper classification and
delimitation of the lands of the public domain, and the management, utilization, protection,
rehabilitation, and development of forest lands;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the

powers in me vested by the Constitution, do hereby revise Presidential Decree No. 389 to read as
follows:

Section 1. Title of this Code. This decree shall be known as the "Revised Forestry Code of the
Philippines."

Section 2. Policies. The State hereby adopts the following policies:

(a) The multiple uses of forest lands shall be oriented to the development and progress
requirements of the country, the advancement of science and technology, and the public
welfare;

(b) Land classification and survey shall be systematized and hastened;

(c) The establishment of wood-processing plants shall be encouraged and rationalized; and

(d) The protection, development and rehabilitation of forest lands shall be emphasized so as
to ensure their continuity in productive condition.

Section 3. Definitions.

(a) Public forest is the mass of lands of the public domain which has not been the subject of
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 refer to those lands of the public domain which have
been the subject of the present system of classification and determined to be needed for
forest purposes.

(c) Alienable and 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 include 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 parks refers to any off-shore area inhabited by 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 and irrigation works needing immediate rehabilitation as it is being
subjected to a fast denudation causing accelerated erosion and destructive floods. It is
closed from logging until it is fully rehabilitated.

(o) Mangrove is a term applied to the type of forest occurring on tidal flat along the sea coast,
extending along streams where the water is brackish.
(p) Kaingin is a portion of the forest land, whether occupied or not, which is subjected to
shifting and/or permanent slash-and-burn cultivation having little or no provision to prevent
soil erosion.

(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, tengile, tiaong, white lauan, almon, bagtikan and mayapis of the Philippine mahogany
group, apitong and the yakals.

(s) Pine forest is a forest composed of the Benguet Pine in the Mountain Provinces or the
Mindoro pine in Mindoro and Zambales provinces.

(t) Industrial tree plantation is any tract of forest land purposely and extensively planted to
timber crops primarily to supply the raw material requirements of existing or proposed
processing plants and related industries.

(u) Tree farm refers to any tract of forest land purposely and extensively planted to trees of
economic value for their fruits, flowers, leaves, barks, or extractives, but not for the wood
thereof.

(v) Multiple-use is the harmonized utilization of the numerous beneficial uses of the land, soil,
water, wildlife, recreation value, grass and timber of forest lands.

(w) Selective logging means the systematic removal of the mature, 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 and water.

(x) Seed tree system is partial clearcutting with seed trees left to regenerate the area.

(y) Healthy residual is a sound or slightly injured tree of the commercial species left after
logging.

(z) Sustained-yield management implies continuous or periodic production of forest products

in a working unit with the aid 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.

(aa) Processing plant is any mechanical set-up, machine or combination of machine used for
the processing of logs and other forest raw materials into lumber, veneer, plywood,
wallboard, block-board, paper board, pulp, paper or other finished wood products.

(bb) Lease is a privilege granted by the State to a person to occupy and possess, in
consideration of a specified rental, any forest land of the public domain in order to undertake
any authorized activity therein.
 (cc) License is a privilege granted by the State to a person to utilize forest resources as in
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.

(dd) 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.

(ee) 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 with any forest land without any
right of occupation and possession therein.

(ff) Annual allowable cut is the volume of materials, whether of wood or other forest products,
that is authorized to be cut regularly from the forest.

(gg) Cutting cycle is the number of years between major harvests in the same working unit
and/or region, within a rotation.

(hh) Ecosystem means the ecological community considered together with non-living factors
and its environment as a unit.

(ii) Silviculture is the establishment, development reproduction and care of forest trees.

(jj) Rationalization is the organization of a business or industry using scientific business

management principles and simplified procedures to obtain greater efficiency of operation.

(kk) Forest officer means any official or employee of the Bureau who, by the nature of his
appointment or the function of the position to which he is appointed, is 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.

(ll) Primitive tribe is a group of endemic tribe living primitively as a distinct portion of a people
from a common ancestor.

(mm) Private right means or refers to titled rights of ownership under existing laws, and in the
case of primitive tribes, 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 excludes production forest inclusive of logged-over areas, commercial
forests and established plantations of forest trees and trees of economic value.

(nn) Person includes natural as well as juridical person.

CHAPTER I
ORGANIZATION AND JURISDICTION OF THE BUREAU

Section 4. Creation of, and merger of all forestry agencies into, the Bureau of Forest
Development. For the purpose of implementing the provisions of this Code, the Bureau of Forestry,
the Reforestation Administration, the Southern Cebu Reforestation Development Project, and the
Parks and Wildlife Office, including applicable appropriations, records, equipment, property and such
personnel as may be necessary, are hereby merged into a single agency to be known as the Bureau
of Forest Development, hereinafter referred to as the Bureau.

Section 5. Jurisdiction of Bureau. The Bureau shall have jurisdiction and authority over all forest
land, grazing lands, and all forest reservations including watershed reservations presently
administered by other government agencies or instrumentalities.

It shall be responsible for the protection, development, management, regeneration, and reforestation
of forest lands; the regulation and supervision of the operation of licensees, lessees and permittees
for the taking or use of forest products therefrom or the occupancy or use thereof; the
implementation of multiple use and sustained yield management in forest lands; the protection,
development and preservation of national parks, marine parks, game refuges and wildlife; the
implementation of measures and programs to prevent kaingin and managed occupancy of forest and
grazing lands; in collaboration with other bureaus, the effective, efficient and economic classification
of lands of the public domain; and the enforcement of forestry, reforestation, parks, game and
wildlife laws, rules, and regulations.

The Bureau shall regulate the establishment and operation of sawmills, veneer and plywood mills
and other wood processing plants and conduct studies of domestic and world markets of forest
products.

Section 6. Director and Assistant Director and their qualifications. The Bureau shall be headed by a
Director, who shall be assisted by one or more Assistant Directors. The Director and Assistant
Directors shall be appointed by the President.

No person shall be appointed Director or Assistant Director of the Bureau unless he is a natural born
citizen of the Philippines, at least 30 years of age, a holder of at least a Bachelor's Degree in
Forestry or its equivalent, and a registered forester.

Section 7. Supervision and Control. The Bureau shall be directly under the control and supervision
of the Secretary of the Department of Natural Resources, hereinafter referred to as the Department
Head.

Section 8. Review. All actions and decisions of the Director are subject to review, motu propio or
upon appeal of any person aggrieved thereby, by the Department Head whose decision shall be final
and executory after the lapse of thirty (30) days from receipt by the aggrieved party of said decision,
unless appealed to the President in accordance with the Executive Order No. 19, series of 1966.
The Decision of the Department Head may not be reviewed by the courts except through a special
civil action for certiorari or prohibition.

Section 9. Rules and Regulations. The Department Head, upon the recommendation of the Director
of Forest Development, shall promulgate the rules and regulations necessary to implement
effectively the provisions of this Code.

Section 10. Creation of Functional Divisions, and Regional and District Offices. All positions in the
merged agencies are considered vacant. Present occupants may be appointed in accordance with a
staffing pattern or plan of organization to be prepared by the Director and approved by the
Department Head. Any appointee who fails to report for duty in accordance with the approved plan
within thirty (30) days upon receipt of notification shall be deemed to have declined the appointment,
in which case the position may be filed by any other qualified applicant.
For the efficient and effective implementation of the program of the Bureau, the following divisions
and sections are hereby created, to wit:

Divisions Sections
Planning and Evaluation Program Planning;
Performance Evaluation;
Forest Economics;
Management Analysis
Data & Information.
Administrative Division Personnel;
Budget;
Accounting;
Information;
General Services.
Legal Division
Reforestation and Cooperative Planting;
Afforestation Division Planting Stock
Production;
Plantation Management.
Timber Management Forest Surveys, Data &
Division Mapping;
Sulviculture;
Timber Inventory &
Photo-Interpretation;
Timber Management
Plans;
Land Classification.
Utilization Division Timber Operations;
Land Uses;
Utilization.
Forest Protection and Forest Protection;
Infrastructure Forest Occupancy
Management;
Watershed Management;
Infrastructure.
Parks, Wildlife Division Parks Management;
Recreation Management;
Wildlife Management;
Range Management.
Security and Intelligence Division
Forest Development Technical Training;
Training Center Non-Technical Training.
The Department Head may, upon recommendation of the Director, reorganize or create such other
divisions, sections of units as may be deemed necessary and to appoint the personnel there:
Provided, That an employee appointed or designated as officer-in-charge of a newly created
division, section or unit, or to an existing vacant position with a higher salary, shall receive, from the
date of such appointment or designation until he is replaced or reverted to his original position, the
salary corresponding to the position temporarily held by him.

There shall be created at least eleven regional offices. In each region, there shall be as many forest
districts as may be necessary, in accordance with the extent of forest area, established work loads,
need for forest protection, fire prevention and other factors, the provisions of any law to the contrary
notwithstanding: Provided, That the boundaries of such districts shall follow, whenever possible,
natural boundaries of watersheds under the river-basin concept of management.

Section 11. Manpower 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 special education and
training in local or foreign colleges or institutions.

Section 12. Performance Evaluation. The Bureau shall devise a system, to be approved by the
Department Head, to evaluate the performance of its employees. The system shall measure
accomplishment in quantity and quality of performance as related to the funded program of work
assigned to each organizational unit. There shall be included a system of periodic inspection of
district offices by the regional offices and the regional and district offices by the Central Office in both
functional fields and in the overall assessment of how each administrative unit has implemented the
laws, regulations, policies, programs, and practices relevant to such unit. The evaluation system
shall provide the information necessary for annual progress reports and determination of employee
training civil service awards and transfer or disciplinary action.

CHAPTER II
CLASSIFICATION AND SURVEY

Section 13. System of Land Classification. The Department Head shall study, devise, determine and
prescribe the criteria, guidelines and methods for the proper and accurate classification and survey
of all lands of the public domain into agricultural, industrial or commercial, residential, resettlement,
mineral, timber or forest, and grazing lands, and into such other classes as now or may hereafter be
provided by law, rules and regulations.

In the meantime, the Department Head shall simplify through inter-bureau action the present system
of determining which of the unclassified lands of the public domain are needed for forest purposes
and declare them as permanent forest to form part of the forest reserves. He shall decree those
classified and determined not to be needed for forest purposes as alienable and disposable lands,
the administrative jurisdiction and management of which shall be transferred to the Bureau of Lands:
Provided, That mangrove and other swamps not needed for shore protection and suitable for
fishpond purposes shall be released to, and be placed under the administrative jurisdiction and
management of, the Bureau of Fisheries and Aquatic Resources. Those still to be classified under
the Present system shall continue to remain as part of the public forest.

Section 14. Existing Pasture Leases and Permits in Forest Lands. Forest lands which have been
the subject of pasture leases and permits shall remain classified as forest lands until classified as
grazing lands 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.

Section 15. Topography. No land of the public domain eighteen per cent (18%) in slope or over shall
be classified as alienable and disposable, nor any forest land fifty per cent (50%) in slope or over, as
grazing land.

Lands eighteen per cent (18%) in slope or over which have already been declared as alienable and
disposable shall be reverted to the classification of forest lands by the Department Head, to form
part of the forest reserves, unless they are already covered by existing titles or approved public land
application, or actually occupied openly, continuously, adversely and publicly for a period of not less
than thirty (30) years as of the effectivity of this Code, where the occupant is qualified for a free
patent under the Public Land Act: Provided, That said lands, which are not yet part of a well-
established communities, shall be kept in a vegetative condition sufficient to prevent erosion and
adverse effects on the lowlands and streams: Provided, further, That when public interest so
requires, steps shall be taken to expropriate, cancel defective titles, reject public land application, or
eject occupants thereof.

Section 16. Areas needed for forest purposes. The following lands, even if they are below eighteen
per cent (18%) in slope, are needed for forest purposes, and may not, therefore, be classified as
alienable and disposable land, to wit:

1. Areas less than 250 hectares which are far from, or are not contiguous with, any certified
alienable and disposable land;

2. Isolated patches of forest of at least five (5) hectares with rocky terrain, or which protect a
spring for communal use;

3. Areas which have already been reforested;

4. Areas within forest concessions which are timbered or have good residual stocking to
support an existing, or approved to be established, wood processing plant;

5. Ridge tops and plateaus regardless of size found within, or surrounded wholly or partly by,
forest lands where headwaters emanate;

6. Appropriately located road-rights-or-way;

7. Twenty-meter strips of land along the edge of the normal high waterline of rivers and
streams with channels of at least five (5) meters wide;

8. Strips of mangrove or swamplands at least twenty (20) meters wide, along shorelines
facing oceans, lakes, and other bodies of water, and strips of land at least twenty (20) meters
wide facing lakes;

9. Areas needed for other purposes, such as national parks, national historical sites, game
refuges and wildlife sanctuaries, forest station sites, and others of public interest; and

10. Areas previously proclaimed by the President as forest reserves, national parks, game
refuge, bird sanctuaries, national shrines, national historic sites:
Provided, That in case an area falling under any of the foregoing categories shall have been titled in
favor of any person, steps shall be taken, if public interest so requires, to have said title cancelled or
amended, or the titled area expropriated.

Section 17. Establishment of boundaries of forest lands. All boundaries between permanent forests
and alienable and 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.

Section 18. Reservations in forest lands and off-shore areas. The President of the Philippines may
establish within any lands of the public domain, forest reserve and forest reservation for the national
park system, for preservation as critical watersheds, or for any other purpose, and modify
boundaries of existing ones. The Department Head may reserve and establish any portion of the
public forest or forest reserve as site or experimental forest for use of the Forest Research Institute.

When public interest so requires, any off-shore area needed for the preservation and protection of its
educational, scientific, historical, ecological and recreational values including the marine life found
therein, shall be established as marine parks.

CHAPTER III
UTILIZATION AND MANAGEMENT

Section 19. Multiple use. The numerous beneficial uses of the timber, land, soil, water, wildlife,
recreation value and grass of forest lands shall be evaluated and weighted before allowing the
utilization, exploitation, occupation or possession thereof, or the conduct of any activity therein.

Only the utilization, exploitation, occupation or possession of any forest land, or any activity therein,
involving one or more or 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
other resources, shall be allowed.

All forest reservations may be open to uses not inconsistent with the principal objectives of the
reservation: Provided, That critical watersheds and national parks shall not be subject to logging
operations.

Section 20. License agreement, license, lease or permit. No person may utilize, exploit, occupy,
possess or conduct any activity within any forest land, or establish and operate any wood-processing
plant, unless he has been authorized to do so under a license agreement, lease, license, or permit.

Section 21. Sustained yield. All measures shall be taken to achieve an approximate balance
between growth and harvest or use of forest products in forest lands.

A. TIMBER

Section 22. Silvicultural and harvesting systems. In any logging operations in production forests
within forest lands, the proper silvicultural and harvesting systems that will promote optimum
sustained yield shall be practised.

(a) For dipterocarp forest, selective logging shall be practised.

 (b) For pine forest, the seed tree system with planting when necessary shall be practised.

(c) For other types of forest, the silvicultural and harvesting system that will be found suitable
by research shall be applied. Meanwhile, a system based on observation and practices
abroad may be adopted initially.

Any practised system are subject to modification or changes based on research findings.

Section 23. Timber inventory. The Bureau shall conduct a program of progressive inventories of the
harvestable timber and young trees in all forest lands, whether covered by any license agreement,
license, lease or permit, or not, until a one hundred per cent (100%) timber inventory thereon has
been achieved.

Section 24. Required inventory prior to timber utilization in forest lands. No harvest of timber in any
forest land shall be allowed unless it has been the subject of at least a five per cent (5%) timber
inventory, or any statistically sound timber estimate, made not earlier than five (5) years prior to the
issuance of a license agreement or license allowing such utilization.

Section 25. Cutting cycle. The Bureau shall apply scientific cutting cycle and rotation in all forest
lands, giving particular consideration to the age, volume and kind of healthy residual trees which
may be left undisturbed and undamaged for future harvest and forest cover indipterocarp area, and
seed trees and reproduction in pine area.

Section 26. Annual allowable cut. The annual allowable cut of any particular forest land shall be
determined on the basis of the established rotation and cutting cycle thereof, and the volume and
kind of harvestable timber and healthy residuals, seed trees and reproduction found therein.

Section 27. Duration of license agreement or license to harvest timber in forest lands. The duration
of the privilege to harvest timber in any particular forest land under a license agreement or license
shall be fixed and determined in accordance with the annual allowable cut therein, the established
cutting cycle thereof, the yield capacity of harvestable timber, and the capacity of healthy residuals
for a second growth.

The privilege shall automatically terminate, even before the expiration of the license agreement of
license, the moment the harvestable timber have been utilized without leaving any logged-over area
capable of commercial utilization.

The maximum period of any privilege to harvest timber is twenty-five (25) years, renewable for a
period, not exceeding twenty-five (25) years, necessary to utilize all the remaining commercial
quantity or harvestable timber either from the unlogged or logged-over area.

It shall be a condition for the continued privilege to harvest timber under any license or license
agreement that the licensee shall reforest all the areas which shall be determined by the Bureau.

Section 28. Size of forest concessions. Forest lands shall not be held in perpetuity.

The size of the forest lands which may be the subject of timber utilization shall be limited to that
which a person may effectively utilize and develop for a period of fifty (50) years, considering the
cutting cycle, the past performance of the applicant and his capacity not only to utilize but, more
importantly, to protect and manage the whole area, and the requirements of processing plants
existing or to be installed in the region.
Forest concessions which had been the subject of consolidations shall be reviewed and re-evaluated
for the effective implementation of protection, reforestation and management thereof under the
multiple use and sustained yield concepts, and for the processing locally of the timber resources
therefrom.

B. WOOD-PROCESSING

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. Rationalization of the wood industry. While establishment of wood-processing plants
shall be encouraged, their locations and operations shall be regulated in order to rationalize the
industry. No new processing plant shall be established unless adequate raw material is available on
a sustained-yield basis in the area where the raw materials will come from.

The Department Head may cancel, suspend, or phase-out all uneconomical wood-processing plants
which are not responsive to the rationalization program of the government.

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. Log production and processing. Unless otherwise decreed by the President, upon
recommendation of the National Economic Development Authority, the entire production of logs by
all licensees shall, beginning January 1, 1976, be processed locally.

A licensee who has no processing plant may, subject to the approval of the Director, enter into a
contract with a wood processor for the processing of his logs. Wood processors shall accept for
processing only logs cut by, or purchased from, licensees of good standing at the time of the cutting
of logs.

C. REFORESTATION

Section 33. Forest lands to be reforested. The following shall be reforested and covered with
suitable and sufficient trees, to wit:

(a) Bare or grass-covered tracts of forest lands with at least fifty per cent (50%) slope;

(b) Bare or grass-covered tracts of forest lands with less than fifty per cent (50%) slope, but
with soil so highly erodible as to make grass cover inadequate for soil erosion control;
 (c) Brushlands or tracts of forest lands generally covered with brush, which need to be
developed to increase their productivity;

(d) Open tracts of forest lands with slopes or gradients generally exceeding fifty per cent
(50%), interspersed with patches of forest each of which is less than two hundred fifty (250)
hectares in area;

(e) 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;

(f) Inadequately-stocked forest lands within forest concessions;

(g) Portions of areas covered by pasture leases or permits having a slope of at least fifty per
cent (50%); and

(h) River banks, easements, road rights-of-ways, deltas, swamps, former river beds, and
beaches.

Section 34. Industrial Tree Plantations and Tree Farms. A lease for a period of twenty-five (25)
years, renewable for another period not exceeding twenty-five (25) years, for the establishment of an
industrial tree plantation or a tree 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 hereof, with a minimum
area of One Thousand (1,000) hectares for industrial tree plantation and One Hundred (100)
hectares for tree farm; Provided, That the size of the area that may be granted under each category
shall in each case depend upon the capacity of the lessee to develop or convert the area into
productive condition within the term of the lease; Provided, further, That no lease shall be granted
within critical watersheds.

Scattered areas of less than One Hundred (100) hectares each may be leased for the establishment
of tree farms to different qualified persons upon a showing that if developed as an integrated unit
these areas can be economically exploited: Provided, That it shall be a condition of the lease that
such persons organize themselves into a cooperative to ensure the orderly management thereof.

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 industries and the
maintenance of a wholesome ecological balance.

Reforestation projects of the Government, or portions thereof which, upon field evaluation, are found
to be more suitable for, or can be better developed as, industrial tree plantations or tree farms in
terms of benefits to the Government and the general surrounding area, may be the subject of the
lease under this section.

Section 35. Priority. Over any suitable area covered by a timber license agreement, or a pasture
lease agreement or permit, the priority to establish industrial forest plantation or tree farm shall be
given to the holder thereof.

The priority herein granted must, however, be availed of within a reasonable period to be determined
by the Department Head, otherwise, the area shall be declared open to any qualified person and
consequently segregated from the holder's area.
Section 36. Incentives. To encourage qualified persons to engage in industrial tree plantation and/or
tree farming, 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) 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 peso (P1.00) per hectare.

(c) The lessee shall pay forest charges on the timber and other forest products grown and
cut or gathered in an industrial tree plantation or tree farm equivalent to six percent (6%)
current market value thereof;

(d) Sale at cost of seedlings and free technical advice and assistance to persons who will
develop their privately-owned lands into industrial tree plantation or tree farm;

(e) 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;

(f) The Board of Investments shall, notwithstanding its nationality requirement on projects
involving natural resources, classify industrial tree plantations and tree farms as pioneer
areas of investment under its annual priority plan, to be governed by the rules and
regulations of said Board. A lessee of an industrial tree plantation or tree farm may either
apply to the Board of Investments for the tax and other benefits thereunder, or avail of the
following benefits:

1. Amounts expended by a lessee in the development and operation of an industrial

tree plantation or tree farm prior to the time when the production state is reached,
may, at the option of said lessee, be regarded as ordinary and necessary business
expenses or as capital expenditures; and

2. Deduction from an investor's taxable income for the year, of an annual investment
allowance equivalent to thirty-three and one-third per cent (33-1/3%) of his actual
investment during the year in an enterprise engaged in industrial tree plantation or
tree farm: Provided, That such investment shall not be withdrawn for a period of at
least ten (10) years from the date of investment: Provided, further, That should the
investment be withdrawn within such period, a tax equivalent to double the amount of
the total income tax rebate resulting from the investment allowance shall be payable
as a lump sum in addition to the income tax due from the taxpayer for the year the
investment was withdrawn.

(g) Except when public interest demands the alteration or modification, the boundaries of an
area covered by an industrial tree plantation or tree farm lease, once established on the
ground, shall not be altered or modified; and
 (h) 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
interests paid on borrowings incurred for development and operation of the industrial tree
plantation or tree farm.

The Department Head may provide other incentives in addition to those hereinabove granted to
promote industrial tree plantation and tree 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.

All amounts collected under this section shall accrue to a special deposit of the Bureau to be used
for reforestation of critical watersheds or degraded areas and other development activities, over and
above the general appropriation of the said Bureau.

D. FOREST PROTECTION

Section 37. Protection of all resources. All measures shall be taken to protect the forest resources
from destruction, impairment and depletion.

Section 38. Control of concession area. In order to achieve the effective protection of the forest
lands and the resources thereof from illegal entry, unlawful occupation, kaingin, fire, insect
infestation, theft, and other forms of forest destruction, the utilization of timber therein shall not be
allowed except through license agreements under which the holders thereof shall have the exclusive
privilege to cut all the allowable harvestable timber in their respective concessions, and the
additional right of occupation, possession, and control over the same, to the exclusive of all others,
except the government, but with the corresponding obligation to adopt all the protection and
conservation measures to ensure the continuity of the productive condition of said areas,
conformably with multiple use and sustained yield management.

If the holder of a license agreement over a forest area expressly or impliedly waives the privilege to
utilize any softwood, hardwood or mangrove species therein, a license may be issued to another
person for the harvest thereof without any right of possession or occupation over the areas where
they are found, but he shall, likewise, adopt protection and conservation measures consistent with
those adopted by the license agreement holder in the said areas.

Section 39. Regulation of timber utilization in all other classes of lands and of wood-processing
plants. The utilization of timber in alienable and disposable lands, private lands, civil reservations,
and all lands containing standing or felled timber, including those under the jurisdiction of other
government agencies, and the establishment and operation of saw-mills and other wood-processing
plants, shall be regulated in order to prevent them from being used as shelters for excessive and
unauthorized harvests in forest lands, and shall not therefore be allowed except through a license
agreement, license, lease or permit.

Section 40. Timber inventory in other lands containing standing or felled timber. The Bureau shall
conduct a one hundred per cent (100%) timber inventory in alienable and disposable lands and civil
reservations immediately upon classification or reservation thereof.

No harvest of standing or felled timber in alienable and disposable lands, private lands, civil
reservation, and all other lands, including those under the jurisdiction of other government agencies,
shall be allowed unless a one hundred per cent (100%) timber inventory has been conducted
thereon.
Section 41. Sworn timber inventory reports. All reports on timber inventories of forest lands,
alienable and disposable lands, private lands, civil reservations, and all lands containing standing or
felled timber must be subscribed and sworn to by all the forest officers who conducted the same.

Section 42. Participation in the development of alienable and disposable lands and civil
reservations. The privilege to harvest timber in alienable and disposable lands and civil reservations
shall be given to those who can best help in the delineation and development of such areas in
accordance with the management plan of the appropriate government exercising jurisdiction over the
same.

The extent of participation shall be based on the amount of timber which may be harvested
therefrom.

Section 43. Swamplands and mangrove forests. Strips of mangrove forest bordering numerous
islands which protect the shoreline, the shoreline roads, and even coastal communities from the
destructive force of the sea during high winds and typhoons, shall be maintained and shall not be
alienated. Such strips must be kept from artificial obstruction so that flood water will flow unimpeded
to the sea to avoid flooding or inundation of cultivated areas in the upstream.

All mangrove swamps set aside for coast-protection purposes shall not be subject to clear-cutting
operation.

Mangrove and other swamps released to the Bureau of Fisheries and Aquatic Resources for
fishpond purposes which are not utilized, or which have been abandoned for five (5) years from the
date of such release shall revert to the category of forest land.

Section 44. Visitorial power. The Department Head may, by himself or thru the Director or any
qualified person duly designated by the Department Head, investigate, inspect and examine records,
books and other documents relating to the operation of any holder of a license agreement, license,
lease, or permit, and its subsidiary or affiliated companies, to determine compliance with the terms
and conditions thereof, this Code and pertinent laws, policies, rules and regulations.

Section 45. Authority of forest officers. When in the performance of their official duties, forest
officers, or other government officials or employees duly authorized by the Department Head or
Director, shall have free entry into areas covered by a license agreement, license, lease or permit.

Forest officers are authorized to administer oath and take acknowledgment in official matters
connected with the functions of their office, and to take testimony in official investigations conducted
under the authority of this Code and the implementing rules and regulations.

Section 46. Scaling stations. In collaboration with appropriate government agencies, the Bureau
shall establish control or scaling stations at suitably located outlets of timber and other forest
products to insure that they were legally cut or harvested.

Section 47. Mining operations. Mining operations in forest lands shall be regulated and conducted
with due regard to protection, development and utilization of other surface resources.

Location, prospecting, exploration, utilization or exploitation of mineral resources in forest

reservations shall be governed by Mining laws, rules and regulations. No location, prospecting,
exploration, utilization, or exploitation of mineral resources inside forest concessions shall be
allowed unless proper notice has been served upon the licensees thereof and the prior approval of
the Director, secured.

Mine tailings and other pollutants affecting the health and safety of the people, water, fish,
vegetation, animal life and other surface resources, shall be filtered in silt traps or other filtration
devices and only clean exhausts and liquids shall be released therefrom.

Surface-mined areas shall be restored to as near its former natural configuration or as approved by
the Director prior to its abandonment by the mining concern.

Section 48. Mineral Reservations. Mineral reservations which are not the subject of mining
operations or where operations have been suspended for more than five (5) years shall be placed
under forest management by the Bureau.

Mineral reservations where mining operations have been terminated due to the exhaustion of its
minerals shall revert to the category of forest land, unless otherwise reserved for other purposes.

Section 49. Roads and other infrastructure. Roads and other infrastructure in forest lands shall be
constructed with the least impairment to the resource values thereof.

Government agencies undertaking the construction of roads, bridges, communications, and other
infrastructure and installations inside forest lands, shall coordinate with the Bureau, especially if it
will involve the utilization or destruction of timber and/or other forest resources, or watershed
disturbance therein, in order to adopt measures to avoid or reduce damage or injury to the forest
resource values.

They shall likewise extend assistance in the planning and establishment of roads, wharves, piers,
port facilities, and other infrastructure in locations designated as wood-processing centers or for the
convenience of wood-based industries.

In order to coincide and conform to government plans, programs, standards, and specifications,
holders of license agreements, licenses, leases and permits shall not undertake road or
infrastructure construction or installation in forest lands without the prior approval of the Director, or
in alienable and disposable lands, civil reservations and other government lands, without the
approval of the government agencies having administrative jurisdiction over the same.

All roads and infrastructure constructed by holders of license agreements, licenses, leases and
permits belong to the State and the use and administration thereof shall be transferred to the
government immediately upon the expiration or termination thereof. Prior thereto the Bureau may
authorize the public use thereof, if it will not be detrimental to forest conservation measures.

Where roads are utilized by more than one commercial forest user, the Bureau shall prescribe the
terms and conditions of joint use including the equitable sharing of construction and/or maintenance
costs, and of the use of these roads by other parties and the collection of such fees as may be
deemed necessary.

Section 50. Logging roads. There shall be indiscriminate construction of logging roads.

Such roads shall be strategically located and their widths regulated so as to minimize clear-cutting,
unnecessary damage or injury to healthy residuals, and erosion. Their construction must not only
serve the transportation need of the logger but, most importantly, the requirement to save as many
healthy residuals as possible during cutting and hauling operations.

Section 51. Management of occupancy in forest lands. Forest occupancy shall henceforth be
managed. The Bureau shall study, determine and define which lands may be the subject of
occupancy and prescribed therein, an agro-forestry development program.

Occupants shall undertake measures to prevent and protect forest resources.

Any occupancy in forest land which will result in sedimentation, erosion, reduction in water yield and
impairment of other resources to the detriment of community and public interest shall not be allowed.

In areas above 50% in slope, occupation shall be conditioned upon the planting of desirable trees
thereon and/or adoption of other conservation measures.

Section 52. Census of kaingineros, squatters, cultural minorities and other occupants and residents
in forest lands. Henceforth, no person shall enter into forest lands and cultivate the same without
lease or permit.

A complete census of kaingineros, squatters, cultural minorities and other occupants and residents
in forest lands with or without authority or permits from the government, showing the extent of their
respective occupation and resulting damage, or impairment of forest resources, shall be conducted.

The Bureau may call upon other agencies of the government and holders of license agreement,
license, lease and permits over forest lands to participate in the census.

Section 53. Criminal Prosecution. Kaingineros, squatters, cultural minorities and other occupants
who entered into forest lands before the effectivity of this Code, without permits or authority, shall not
be prosecuted: Provided, That they do not increase their clearings: Provided, further, That they
undertake, within two (2) months from the notice thereof, the activities which will be imposed upon
them by the Bureau in accordance with a management plan calculated to conserve and protect
forest resources.

E. SPECIAL USES

Section 54. Pasture in forest lands. No forest land 50% in slope or over may be utilized for pasture
purposes.

Forest lands which are being utilized for pasture shall be maintained with sufficient grass cover to
protect soil, water and other forest resources.

If grass cover is insufficient, the same shall be supplemented with trees or such vegetative cover as
may be deemed necessary.

The size of forest lands that may be allowed for pasture and other special uses shall be determined
by rules and regulations, any provision of law to the contrary notwithstanding.

Section 55. Wildlife. Wildlife may be destroyed, killed, consumed, eaten or otherwise disposed of,
without the necessity of permit, for the protection of life, health, safety and property, and the
convenience of the people.
However, the Director may regulate the killing and destruction of wildlife in forest lands in order to
maintain an ecological balance of flora and fauna.

Section 56. Recreation. The Bureau shall, in the preparation of multiple-use management plans,
identify and provide for the protection of scenic areas in all forest lands which are potentially
valuable for recreation and tourism, and plan for the development and protection of such areas to
attract visitors thereto and meet increasing demands therefor.

The construction and operation of necessary facilities to accommodate outdoor recreation shall be
done by the Bureau with the use of funds derived from rentals and fees for the operation and use of
recreational facilities by private persons or operators, in addition to whatever funds may be
appropriated for such purposes.

Section 57. Other special uses of forest lands. Forest lands may be leased for a period not
exceeding twenty-five (25) years, renewable upon the expiration thereof for a similar period, or held
under permit, for the establishment of sawmills, lumber yards, timber depots, logging camps, rights-
of-way, or for the construction of sanatoria, bathing establishments, camps, salt works, or other
beneficial purposes which do not in any way impair the forest resources therein.

F. QUALIFICATIONS

Section 58. Diffusion of benefits. The privilege to utilize, exploit, occupy, or possess forest lands, or
to conduct any activity therein, or to establish and operate wood-processing plants, shall be diffused
to as many qualified and deserving applicants as possible.

Section 59. Citizenship. In the evaluation of applications of corporations, increased Filipino equity
and participation beyond the 60% constitutional limitation shall be encouraged. All other factors
being equal, the applicant with more Filipino equity and participation shall be preferred.

Section 60. Financial and technical capability. No license agreement, license, lease or permit over
forest lands shall be issued to an applicant unless he proves satisfactorily that he has the financial
resources and technical capability not only to minimize utilization, but also to practice forest
protection, conservation and development measures to insure the perpetuation of said forest in
productive condition.

Section 61. Transfers. Unless authorized by the Department Head, no licensee, lessee, or permittee
may transfer, exchange, sell or convey his license agreement, license, lease or permit, or any of his
rights or interests therein, or any of his assets used in connection therewith.

The licensee, lessee, or permittee shall be allowed to transfer or convey his license agreement,
license, lease or permit only if he has not violated any forestry law, rule or regulation; 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.

The transferor shall forever be barred from acquiring another license agreement, license, lease or
permit.

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 Code, formulate
and submit to the Department Head for approval a plan for the sale of at least twenty percent (20%)
of its subscribed capital stock in favor of its employees and laborers.

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 Code,
if the corporation has been in operation for more than 5 years prior to such effectivity.

No corporation shall be issued any license agreement, license, lease or permit after the effectivity of
this Code, 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
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.

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.

CHAPTER IV
CRIMINAL OFFENSES AND PENALTIES

Section 68. Cutting, gathering and/or collecting timber or other products without license. Any person
who shall cut, gather, collect, or remove timber or other forest products from any forest land, or
timber from alienable and disposable public lands, or from private lands, without any authority under
a license agreement, lease, license or permit, shall be guilty of qualified theft as defined and
punished under Articles 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 collecting
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 to cut, gathered, collected or removed, and the machinery, equipment, implements and
tools used therein, and the forfeiture of his improvements in the area.

The same penalty plus cancellation of his license agreement, lease, license or permit and perpetual
disqualification from acquiring any such privilege shall be imposed upon any licensee, lessee, or
permittee who cuts timber from the licensed or leased area of another, without prejudice to whatever
civil action the latter may bring against the offender.

Section 69. Unlawful occupation or destruction of forest lands. Any person who enters and occupies
or possesses, or makes kaingin for his own private use or for others any forest land without authority
under a license agreement, lease, license or permit, or in any manner destroys such forest land or
part thereof, or causes any damage to the timber stand and other products and forest growths 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 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 been 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
imprisoned for not less than two (2) nor more than (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 restoration of the occupied area as determined by the Bureau.

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 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.

Section 70. Pasturing Livestock. Imprisonment for not less than six (6) months nor more than two
(2) years and a fine equal to ten (10) times the regular rentals due, in addition to the confiscation of
such livestock and all improvement introduced in the area in favor of the government, shall be
imposed upon any person, who shall, without authority under a lease or permit, graze or cause to
graze livestock in forest lands, grazing lands and alienable and disposable lands which have not as
yet been disposed of in accordance with the Public Land Act; Provided, That in case the offender is
a corporation, partnership or association, the officers and directors thereof shall be liable.

Section 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 two hundred (P200.00) pesos or more than five hundred (P500.00) 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 for 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 any 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 of 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 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.

Section 72. Destruction of wildlife resources. Any person violating the provisions of Section 55 of
this Code, or the regulations promulgated thereunder, shall be fined not less than one hundred
(P100.00) pesos for each such violation and in addition shall be denied a permit for a period of three
(3) years from the date of the violation.

Section 73. Survey by unauthorized person. Imprisonment for not less than two (2) nor more than
four (4) years, in addition to the confiscation of the implements used in the violation of this section
including the cancellation of the license, if any, shall be imposed upon any person who shall, without
permit to survey from the Director, enter any forest lands, whether covered by a license agreement,
lease, license, or permit, or not, and conduct or undertake a survey for whatever purpose.
Section 74. Misclassification and survey by government official or employee. Any public officer or
employee who knowingly surveys, classifies, or recommends the release of forest lands as alienable
and disposable lands contrary to the criteria and standards established in this Code, or the rules and
regulations promulgated hereunder, shall, after an appropriate administrative proceeding, be
dismissed from the service with prejudice to re-employment, and upon conviction by a court of
competent jurisdiction, suffer an imprisonment of not less than one (1) year and a fine of not less
than one thousand, (P1,000.00) pesos. The survey, classification or release of forest lands shall be
null and void.

Section 75. Tax declaration on real property. Imprisonment for a period of not less than two (2) nor
more than four (4) years and perpetual disqualification from holding an elective or appointive office,
shall be imposed upon any public officer or employee who shall issue a tax declaration on real
property without a certification from the Director of Forest Development and the Director of Lands or
their duly designated representatives that the area declared for taxation is alienable and disposable
lands, unless the property is titled or has been occupied and possessed by members of the national
cultural minorities prior to July 4, 1955.

Section 76. Coercion and influence. Any person who coerces, influences, abets or persuades the
public officer or employee referred to in the two preceding sections to 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.

Section 77. Unlawful possession of implements and devices used by forest officers. Imprisonment
for a period of not less than (2) nor more than four (4) years and a fine of not less than one thousand
pesos (P1,000.00), nor more than ten thousand (P10,000.00) pesos in addition to the confiscation of
such implements and devices, and the automatic cancellation of the license agreement, lease,
license or permit, if the offender is a holder thereof, shall be imposed upon any person who shall,
without authority from the Director or his authorized representative, make, manufacture, or has in his
possession any government marking, hatchet or other marking implement, or any marker, poster, or
other devices officially used by officers of the Bureau for the marking or identification of timber or
other products, or any duplicate, counterfeit, or imitation thereof, or make or apply a government
mark on timber or any other forest products by means of any authentic or counterfeit device, or alter,
deface, or remove government marks or signs, from trees, logs, stumps, firewoods or other forest
products, or destroy, deface, remove or disfigure any such mark, sign, poster or warning notices set
by the Bureau to designate the boundaries of cutting areas, municipal or city forest or pasture,
classified timber land, forest reserve, and areas under the national park system or to make any false
mark or imitation of any mark or sign herein indicated; Provided, That if the offender is a corporation,
partnership or association, the officers and directors thereof shall be liable.

Section 78. Payment, collection and remittance of forest charges. Any person who fails to pay the
amount due and payable under the provisions of this Code, the National Internal Revenue Code, or
the rules and regulations promulgated thereunder, shall be liable to the payment of a surcharge of
twenty-five per centum (25%) of the amount due and payable.

Any person who fails or refuses to remit to the proper authorities said forest charges collectible
pursuant to the provisions of this Code or the National Internal Revenue Code, or who delays,
obstructs or prevents the same, or who orders, causes or effects the transfer or diversion of the
funds for purposes other than those specified in this Code, for each such offense shall, upon
conviction, be punished by a fine of not exceeding one hundred thousand pesos (P100,000.00)
and/or imprisonment for a period of not exceeding six (6) years in the discretion of the Court. If the
offender is a government official or employee, he shall, in addition, be dismissed from the service
with prejudice to reinstatement and with disqualification from holding any elective or appointive
office.

If the offender is a corporation, partnership or association, the officers and directors thereof shall be
liable.

Section 79. Sale of wood products. No person shall sell or offer for sale any log, lumber, plywood or
other manufactured wood products in the international or domestic market unless he complies with
grading rules and established or to be established by the Government.

Failure to adhere to the established grading rules and standards, or any act of falsification of the
volume of logs, lumber, or other forest products shall be a sufficient cause for the suspension of the
export, sawmill, or other license or permit authorizing the manufacture or sale of such products for a
period of not less than two (2) years.

A duly accredited representative of the Bureau shall certify to the compliance by the licensees with
grading rules.

Every dealer in lumber and other building material covered by this Code shall issue an invoice for
each sale of such material and such invoice shall state that the kind, standard and size of material
sold to each purchaser in exactly the same as described in the invoice. Any violation of this Section
shall be sufficient ground for the suspension of the dealer's license for a period of not less than two
(2) years and, in addition thereto, the dealer shall be punished for each such offense by a fine of not
less than two hundred pesos (P200.00) or the total value of the invoice, whichever is greater.

Section 80. Arrest; Institution of criminal actions. A forest officer or employee of the Bureau shall
arrest even without warrant any person who has committed or is committing in his presence any of
the offenses defined in this Chapter. He shall also seize and confiscate, in favor of the Government,
the tools and equipment used in committing the offense, and the forest products cut, gathered or
taken by the offender in the process of committing the offense. The arresting forest officer or
employee shall thereafter deliver within six (6) hours from the time of arrest and seizure, the offender
and the confiscated forest products, tools and equipment to, and file the proper complaint with, the
appropriate official designated by law to conduct preliminary investigations and file informations in
court.

If the arrest and seizure are made in the forests, far from the authorities designated by law to
conduct preliminary investigations, the delivery to, and filing of the complaint with, the latter shall be
done within a reasonable time sufficient for ordinary travel from the place of arrest to the place of
delivery. The seized products, materials and equipment shall be immediately disposed of in
accordance with forestry administrative orders promulgated by the Department Head.

The Department Head may deputize any member or unit of the Philippine Constabulary, police
agency, barangay or barrio official, or any qualified person to protect the forest and exercise the
power or authority provided for in the preceding paragraph.

Reports and complaints regarding the commission of any of the offenses defined in this Chapter, not
committed in the presence of any forest officer or employee, or any of the deputized officers or
officials, shall immediately be investigated by the forest officer assigned in the area where the
offense was allegedly committed, who shall thereupon receive the evidence supporting the report or
complaint.
If there is prima facie evidence to support the complaint or report, the investigating forest officer shall
file the necessary complaint with the appropriate official authorized by law to conduct a preliminary
investigation of criminal cases and file an information in Court.

SPECIAL CLAUSES

Section 81. Separability Clause. Should any provision herein be subsequently declared
unconstitutional, the same shall not affect the validity or the legality of the other provisions.

Section 82. Repealing Clause. Presidential Decree Nos. 330, and 389, C.A. No. 452, R.A. No. 4715
and all laws, orders, rules and regulations or any part thereof which are inconsistent herewith are
hereby repealed or amended accordingly.

Section 83. Date of Effectivity. This Code shall take effect immediately upon promulgation.

Done in the City of Manila, this 19th day of May, in the year of Our Lord, nineteen hundred and
seventy-five.