IMPOSITION OF ENVIRONMENTAL FEE FOR THE UTILIZATION OF TIMBER RESOURCES

Pursuant to Section 64 of Presidential Decree No. 705 and
Presidential Memorandum Order No. 298 dated June 4, 1990 which directs
the Department of Environment and Natural Resources to adopt reasonable
and necessary measures to regulate the utilization and exploitation of
forest resources and to increase the government share in timber
production towards national sustainable development, the following
guidelines are hereby issued:

SECTION 1.       There shall be imposed an environmental
fee for timber production in natural forests. This fee which shall be
used to offset adverse environmental effects of logging shall apply over
and above the regular forest charges, reforestation deposits, and other
taxes and fees paid by Timber License Agreement holders and other
licensees involved in logging in natural forest, except those found in
duly approved Fishpond Lease Agreements and in private lands where a
different environmental fee assessment scheme apply (Department
Administrative Order No. 121, Series of 1989).

SECTION 2.       The environmental fee on the first and
second group of timber shall be based on log scaling undertaken at the
log landing and/or log pond and shall be assessed based on twenty
percent (20%) of the FOB market price which shall be set every six
months.  For the period July to December 1990, the environmental fee
shall be P500.00 per cubic meter.

SECTION 3.       A Price Monitoring Committee which shall
be responsible for the monitoring of prevailing market prices of logs
and which will advise the Secretary on such matters is hereby created to
be composed of the following:

1)      The two Assistant Secretaries for Field Operations;

2)      One representative – National Economic & Development Authority;

3)      One representative – Department of Trade and Industry; and

4)      One representative – Philippines Wood Products Association.

SECTION 4.       The environmental fee shall be assessed
and collected by the CENRO concerned. Payment of the duly assessed
environmental fee shall henceforth be a prerequisite to the issuance of a
Certificate of Timber Origin.

SECTION 5.       Non-payment of the environmental fee shall be ground for the suspension of a TLA or equivalent timber license/permit.

SECTION 6.       The payment of the environmental
fee notwithstanding, all the other terms and conditions of the TLA or
equivalent timber license/permit remain valid and in effect.

SECTION 7.       This Order takes effect 15 July
1990. All raw timber products assessed and manifested on or after said
date shall be subject to the payment of the environmental fee as imposed
by this Order, which shall remain in force until revoked or amended in
writing.

Adopted: 27 June 1990

(SGD.) LITO MONICO C. LORENZANA
Acting Secretary