PD 705 (REVISED FORESTRY CODE) BY: JEREMIAH N.

CABALLERO (JMC LAW – 2ND YEAR)

PD 705 (REVISED FORESTRY CODE)

A. PRELIMINARY

1. Governing Law

The law governing the management and utilization of Forest Lands is PD 705 known as Revised Forestry Code
of the Philippines which was issued on May 19, 1975. The law places emphasis not only on the utilization of forest
resources but more so on the protection, rehabilitation and development of forest lands, in order to ensure the
continuity of their productive condition.

2. Definition of Terms

Term Definition
Public Forest It 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.
Permanent Forest It refers to those lands of the public domain which have been the subject of the present
or Forest Reserves system of classification and declared as not needed for the forest purposes.
Forest It refers to forest lands which have been reserved by the President of the Philippines for
Reservations any specific purpose or purposes.
Forest Lands It includes the public forest, permanent forest or forest reserves, and forest reservations
Watershed It is a land area drained by a stream or fixed body of water and its tributaries having a
common outlet for surface run-off.
Watershed It is a forest land reservation established to protect or improve the conditions of the water
Reservation yield thereof or reduce sedimentation.
Mangrove It 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.
Kaingin It 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
erosion.
Industrial Tree It is any tract of forest land purposely and extensively planted to timber crops primarily to
Plantation supply the raw material requirements of existing proposed processing plants and related
industries.
Selective Logging It 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.
Licecnse It is a privilege granted by the State to a person to utilize forest resources within any forest
Agreement 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.
Permit It 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.

B. ORGANIZATIONAL STRUCTURE

1. DENR; Mandate

DENR shall be primarily responsible for the implementation of the State Policy which is the conservation,
management, development, and proper use of the country’s environment and natural resources for the welfare of
the present and future generations of Filipinos.

In Ysmael VS Deputy Executive Secretary (1990) , in sustaining the cancellation of petitioner’s timber license
agreement, the courts will not interfere in matters which are addressed to the sound discretion of government
agencies entrusted with the regulation of activities coming under the special technical knowledge and training of
such agencies.

In Sunville Timber Products Inc. VS Abad (1992), the DENR should be allowed to rile in the first instance on any
controversy coming under its express powers before the courts of justice may intervene.
PD 705 (REVISED FORESTRY CODE) BY: JEREMIAH N. CABALLERO (JMC LAW – 2ND YEAR)

2. Forest Management Bureau (FMB)

The Forest Management Bureau is headed by a Director and assisted by one or more Assistant Directors. The
Director and Assistant Director are appointed by the President.

FMB is directly under the control of DENR Secretary. Upon the recommendation of the FMB, the DENR Secretary
shall promulgate rules and regulations necessary to implement PD 705.

All actions and decisions of the FMB Director are subject to review, motu proprio or upon appeal of any aggrieved
person, by the DENR Secretary whose decision shall be final and executory after the lapse of 30 days from receipt
by the aggrieved party of said decision, unless appealed to the President. The decision of the DENR Secretary may
not be reviewed by the Courts except through a special civil action for certiorari and prohibition.

3. Jurisdiction

Sec. 5 of PD 705: FMB shall have jurisdiction and authority over all forest land, grazing lands, and all forest
reservation including watershed reservations presently administered by the other government agencies or
instrumentalities.

In Republic VS CA and Bernabe (1987), forest lands are within the exclusive jurisdiction of FMB and beyond the
power and jurisdiction of the Courts to register under the Torrens System.

In Lagua VS Cusi (1988), PD 705 does not vest any power in the FMB to determine whether or not the closure of a
logging road is legal or illegal and to make such determination a pre- requisite before an action for damages may
be maintained. This should properly be threshed out in a judicial proceeding. Not every activity made inside a forest
area is subject to the jurisdiction of the FMB.

C. CLASSIFICATION AND SURVEYS

1. Classification

Sec. 13 of PD 705: The DENR Secretary shall determine 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
declare 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 LMB.

i. Concept of Forests and Forest Lands

In Heirs of Amunategui VS Director of Forestry (1983) , a forested area classified as forest land of the public
domain does not lose such classification simply because loggers or settlers may have stripped it of its forest
cover. The classification is descriptive of its legal nature or status and does not have to be descriptive of what
the land actually looks like.

Public forests or forests reserves are not capable of private appropriation.

ii. Topography

Sec. 15 of PD 705:
GR - No land of the public domain 18% in slope or over shall be classified as A&D, nor any forest land 50% in
slope or over as grazing land. Lands 18% in slope or over which have already been declared as A&D shall be
reverted to the classification of forest lands by the DENR Secretary, to form part of the forest reserves
XPN - Unless they were already covered by existing titles or approved public land applications, or actually
openly, continuously, adversely and publicly for a period of not less than 30 years as of the effectivity of the
Code, where the occupant is qualified for a free patent under CA 141.

Note: For purposes of registration, RA 8371 (IPRA) expressly converts ancestral land (private) into public
agricultural land which may be disposed by the State, regardless of whether or not the land has a slope of 18%
or over.

iii. Mangrove Swamps Are in the Category of Forest Lands

Mangrove swamps or Manglares are within the public forest lands of the Philippines. In Director of Forestry VS
Villareal (1989), the Director of Lands has no authority to dispose the same under the Public Land Act. It is the
Director of FMB who has the authority to determine whether forest land is more valuable for agricultural rather
than forestry uses.
PD 705 (REVISED FORESTRY CODE) BY: JEREMIAH N. CABALLERO (JMC LAW – 2ND YEAR)

In Republic VS CA and Carantes (1987), forest lands or forest reserves are not capable of private appropriation
and possession thereof, no matter how long, cannot convert them into private property, unless such lands are
reclassified and considered disposable and alienable by the Director of FMB, but even then, possession of the
land by the applicants prior to the reclassification of the land as A&D cannot be credited as part of the 30-year
requirement under Sec. 48(b) of CA 141.

However, in Malabanan VS Republic (2009), the law does not require that the land subject of registration should
have been A&D during the entire period of possession, or since June 12, 1945. It is sufficient that the land is
already A&D at the time the application for registration for registration is filed so as to entitle the possessor of
registration.

2. Reservations in Forest Lands and Off- Shore Areas

The DENR Secretary 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.

In International Hardwood VS UP (1991), the President reserved for UP a land of the public domain. RA 3990 was
later on enacted for the same purpose and it ceded and transferred full ownership to UP. However, the reservation
is within the area covered by petitioner’s timber license. [Issue: has UP the authority to collect forest charges or to
supervise the operation by the petitioner of the timber concession affected by the Act?]. Yes. When the Republic
ceded and transferred the property to UP, it completely removed said land from the public domain and it has been
removed and segregated from the public forest. The property became a private property of UP. However, petitioner
as licensee may continue to cut, collect, and remove timber until its concession expires, but the forest charges or
royalties shall now be paid to UP.

D. UTILIZATION AND MANAGEMENT

1. Multiple use

Sec. 19 of PD 705: Only the utilization, exploitation, occupation or possession of any forest lands and grazing lands,
or any activity therein, involving one or more of its resources, which will produce the optimum benefits to the
development and progress of the country and the public welfare, without impairment or with the least injury to its
resources, shall be allowed.

i. Principle of Inter- Generational Responsibility

In Oposa VS Factoran (1993), every generation has a responsibility to the next to preserve that rhythm and
harmony for the full enjoyment of a balanced and healthful ecology.

ii. A Timber License Is Not a Contract But a Mere Privilege Which Does not Create Irrevocable Rights

A Timber License is an instrument by which the State regulates the utilization and disposition of forest resources
to the end that the public welfare is promoted. A timber license is not a contract, within the purview of due
process clause; it is only a license or a privilege, which can be validly withdrawn whenever dictated by public
interest or welfare. The granting of license does not create irrevocable rights, neither is it property or property
rights.

E. TIMBER

1. Duration License Agreement or License to Harvest Timber in Forest Lands

Sec. 27 of PD 705: 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 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 25 years, renewable for not exceeding 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 agreement that the licensee
shall reforest all the areas which shall be determined by the Bureau.
 PD 705 (REVISED FORESTRY CODE) BY: JEREMIAH N. CABALLERO (JMC LAW – 2ND YEAR)

2. Size of Forest Concessions

Sec. 28 of PD 705: The size of the forest lands which may be the subject of timer utilization shall be limited to that
which a person may effectively utilize and develop for a period of 50 years.

F. REFORESTATION

1. Industrial Tree Plantations and Tree Farms

Sec. 34 of PD 705: A lease for a period of 25 years and renewable for another period not exceeding 25 years, for
the establishment of an industrial tree plantation (100 hectares min. area) or a tree farm (10 hectares
min. area) may be granted by the DENR to any qualified person qualified to develop and exploit natural resources,
over timber or forest lands of the public domain.

In Provident Tree Farms, Inc. VS Batario (1994) , the enforcement of the importation ban under Sec. 36 of PD 705
is within the exclusive realm of the Bureau of Customs, and direct recourse of petitioner to the RTC to compel the
Commissioner of Customs to enforce the ban is devoid of any legal basis.

G. FOREST PROTECTION

1. Swamplands and Mangrove Forests

All mangrove swamps set aside for coast protection purposes shall not be subject to clear- cutting operation.
Mangrove and other swamps released to the BFAR which are not utilized, or which have been abandoned for 5 years
from the date of such release, shall revert to the category of forestland.

2. Authority of Forest Officers

Sec. 45 of PD 705: When in the performance of their official duties, forest officers, or other government officials or
employees duly authorized by the Secretary or Director, shall have free entry into areas covered by a license
agreement, license, lease, or permit.
3. Mineral Reservations

Sec. 48 of PD 705: Mineral reservations which are not the subject of mining operations or where operations have
been suspended for more than 5 years shall be placed under forest management by the Bureau. Mineral
reservations where mining operations have been terminated due to exhaustion of its mineral shall revert to the
category of forest land, unless otherwise reserved for other purposes.

H. SPECIAL USES

Sec. 54 of PD 705: No forestland 50% in slope or over may be utilized for pasture purposes.

Sec. 56 of PD 705: 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.

I. QUALIFICATIONS

1. Diffusion of Benefits

Sec. 59 of PD 705: In the evaluation of applications for 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.

2. Service Contracts

Sec. 62 of PD 705: The Secretary 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 for
a fee, with any foreign person or entity for the exploitation, development, exploitation or utilization of the forest
resources, covered by their license agreements, licenses, leases, or permits.
PD 705 (REVISED FORESTRY CODE) BY: JEREMIAH N. CABALLERO (JMC LAW – 2ND YEAR)

J. CRIMINAL OFFENSES AND PENALTIES

1. Cutting, Gathering and/or Collecting Timber or Other Products Without License

2 Offenses Under Sec. 68 of PD 705 as amended by EO 277

Offense 1: Cutting, gathering, collecting, and Offense 2: Possession of timber or other forest
removing timber or forest products from any forest products without the legal documents required under
land, or timber from A&D public land, or from private existing forest laws and regulations.
land without authority.
Defense: Raise legality of acts by presenting the Defense: Good faith is not a defense, since violation of
authorization issued by DENR. this law is a mala prohibita and the commission of the
prohibited act is the crime itself, regardless of intent.
Person liable: In case of partnership, association, or corporations, the officers who ordered the cutting, gathering,
collecting, and possession shall be liable, and if such officers are aliens, they shall in addition to the penalty, be
deported without further proceeding.
The Court shall further order the confiscation in favor of the government of the timber or any forest products,
cut, gathered, collected, removed or possessed as well as the machinery, equipment, implements, and tools
illegally used in the area where the timber or forest products are found.

In Taopa VS People (2008), a violation of Sec. 68 (77) of PD 705, as amended, is punished as qualified theft.

In Mustang Lumber VS CA (1996), while lumber is not specifically mentioned in Sec. 68, it is nonetheless included
in the term “timber”. While “timber” is included in the forest products as defined in Sec. 3(q) of PD 705, the lumber
is found in Sec. 3(aa) in the definition of “processing plant”. This simply means that lumber is a processed log or
forest raw material, or timber.

Under Sec. 68-A of PD 705, as amended by EO 277, the DENR Secretary or his duly authorized representative has
jurisdiction to order the confiscation and disposition of all conveyances – by land, water or air – used in illegally
cutting, gathering, removing, possessing or abandoning forest products.

In Omongan VS Omipon (1995), the confiscation proceedings under AO 59 is different from the confiscation under
the RPC, which is an additional penalty imposed in the event of conviction.

2. Unlawful Occupation or Destruction of Forest Lands

Sec. 69 of PD 705:
Punishable Act – any person who [1] enters, occupies, possesses, or makes kaingin for his own private use or for
others any forest land without authority or [2] in any manner destroys such forest land or part thereof, or [3] causes
any damage to timber stand and other products and forest growths found therein.

The Court shall further order the eviction of the offender from the land and the forfeiture of the government of all
improvements made and all vehicles, domestic animals and equipment of any kind used in the commission of the
offense.

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 disqualifies from holding any elective or appointive position.

3. Pasturing Livestock

Sec. 70 of PD 705: imprisonment, fine, and confiscation of livestock and all improvement in favor of the government
shall be imposed upon any person, without the authority under a lease or permit, graze, or cause to graze livestock
in forest lands, grazing lands, and A&D lands which have not as yet been disposed under CA 141. In case the
offender is a corporation, partnership, or association, the officers and directors thereof shall be liable.

4. Illegal Occupation of National Parks System and Recreation Areas and Vandalism Therein

Sec. 85 of PD 705:
Punishable act – [1] any person, without permit, occupy for any length of time any portion of the national park
system or shall, in any manner, cut, destroy, damage, or remove timber or any species of vegetation of forest cover
and other natural resources found therein, or shall mutilate, deface or destroy objects of natural beauty or of scenic
value within areas of national parks. [2] Any person who, without proper permit shall hunt, capture, or kill any kind
of bird, fish, or wild animal life within any area of national park system.
PD 705 (REVISED FORESTRY CODE) BY: JEREMIAH N. CABALLERO (JMC LAW – 2ND YEAR)

5. Survey by Unauthorized Persons

Sec. 73 pf PD 705: Any person who shall, without permit to survey from 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.

6. Misclassification and Survey by Government Official or Employee

Sec. 74 of PD 705: any public officer or employee who knowingly surveys, classifies, or recommends the release of
the forest lands as A&D contrary to the criteria and standards established in this code, or the IRR promulgated.

The survey, classification or release of forest lands shall be null and void.

7. Arrest; Institution of Criminal Action

A forest officer or employee of the FMB shall arrest even without warrant any person who has committed or is
committing in his presence any offenses defined in this code.

In Mustanf Lumber VS CA (1996), the seizure of petitioner’s truck and its cargo consisting of lauan and almaciga
lumber which were not accompanied with the required invoices and transporting documents is valid, as it is made
on a moving vehicle.
In Factoran VS CA (1999), forest products and other items seized and confiscated upon authority of the DENR
secretary by virtue of a legal process is deemed to be in custodia legis and beyonf the reach of replevin.