Pursuant to the provisions of Executive Order No. 263, and Department Administrative Order No. 96-29, and in order to rationalize the utilization of forest products within areas covered by Community-Based Forest Management Program (CBFM), the following guidelines are hereby promulgated:

Section 1.       Basic Principle . - The CBFM aims to promote the socio-economic upliftment of forest communities and at the same time, achieving sustainable development/management of forest resources. It recognizes that responsible and efficient resource utilization by organized and empowered local communities based on sound ecological and economic principles can result to sustainable management of forest lands and resources. This recognition is manifested in the granting of resource-use rights to peoples' organizations under the CBFM program otherwise known as Resource Use Permit (RUP).

Section 2.       Objectives . - The granting of resource-use permit to peoples' organization shall have the following objectives:

a.         To provide the basis for the community to access and benefit from forest resources in a sustainable manner.

b.         To help the community generate start-up capital needed to finance and establish livelihood and other development activities in the area.

c.         To empower peoples' organizations under the CBFM program as effective partners in the protection, conservation, development and rehabilitation alongside the concept of sustainable development.

Section 3.       Scope and Coverage . - Utilization of naturally grown and/or planted forest resources shall be covered by Resource Use Permit (RUP). RUP may be issued to holders of tenurial instruments under the CBFM program of DENR who intend to harvest/utilize forest products for commercial use, provided that they have an affirmed Community Resources Management Framework (CRMF) and Annual Work Plan (AWP).

Section 4.       Requirements for the Utilization of Forest Resources . - The requirements for forest resource utilization are the following:

a.         Affirmed CRMF	c.         ECC
b.         Affirmed AWP	d.         RUP

In the case of timber resource extraction, the following additional conditions shall govern:

4.1       Area of natural forest. - Harvesting of timber within the natural forest should be confined only in areas identified as production forest in accordance with the CRMF. Extraction of forest products outside of the identified zone shall be strictly prohibited. Cutting will not be allowed along gullies, steep slopes, river channels and other identified critical areas.

4.2       Stand volume after harvesting. - Where cutting is allowed in the residual forest, the average stand volume after harvesting these areas should not be less than eighty (80) cubic meters per hectare.

Section 5.       Procedures . -

a.         The PO with the assistance of a registered professional forester and the PMO/site coordinator concerned shall prepare and submit the AWP to the CENRO at least three (3) months prior to the commencement of planned annual operations.

b.         The CENRO shall cause the validation of the AWP, particularly the information on inventories of areas where harvesting of forest products shall be undertaken, following existing guidelines.

c.         The CENRO shall affirm the AWP and issue the RUP within sixty (60) calendar days from the submission of the AWP.

d.         In case where the CENRO functions are assumed by higher authorities, the authority concerned shall issue the RUP accordingly.

Section 6.       Safeguards . - In order to ensure that the harvesting of forest products will be done in the most economical and ecological manner, the following safeguards shall be observed:

A.        Responsibilities of DENR .  A nationwide scheme establishing the Forest Stock Monitoring System (FSMS) in tandem with local Multi-sectoral Forest Protection Council (MFPC) shall be operationalized in coordination with the field offices to facilitate the monitoring of harvesting activities.

1.         Region. The Regional office shall maintain an updated list of peoples' organization with RUPs within their jurisdiction. They shall, on a semi-annual basis, monitor, in coordination with the PENRO, CENRO, and/or LGUs and MFPCs, the progress of the activities by the community particularly the extraction of forest products, the marketing strategies, the intended use of the proceeds particularly in livelihood activities.

2.         PENRO. The PENRO shall likewise maintain an updated records of all peoples' organization granted with RUP in its jurisdiction. They shall monitor on a regular basis and in coordination with the CENRO, the community, LGUs and other concerned groups the status of the implementation of the RUP and the intended activities as stipulated in the annual work plan.

3.         CENRO. The CENRO shall maintain an updated records of all communities with affirmed RUP within its jurisdiction. Through a project management officer, whom the CENRO shall designate as the link between the DENR and the community, activities of the community pertaining to the implementation of the AWP and the RUP shall be closely monitored and supervised. The PMO shall, as much as possible immerse with the community and maintain a record of daily harvest and balances. He/She shall likewise monitor the establishment and development of the livelihood component of the AWP. As PMO he/she shall be accountable to the CENRO. Furthermore, other units of the CENRO shall provide the needed assistance to the community.

B.        Responsibilities of the Community . Apart from the responsibilities of the peoples' organization as stipulated in the CBFM agreement, POs granted with RUP shall have the following specific responsibilities:

1.         Develop and implement equitable benefit-sharing arrangements among its members.

2.         Refrain from the use of heavy equipment such as bulldozers and the like and as much as possible must employ labor intensive methods of harvesting.

3.         Be transparent and promote participatory management particularly in the handling of records of transactions and finances.

4.         Develop and implement mechanisms for the rehabilitation and development of areas subjected to harvesting operations.

5.         Pay forest charges on timber other than those harvested in plantations as well as other fees and charges required by the DENR.

6.         Submit monthly report to the CENRO, through the assigned PMO, as to the progress of the activities and cooperate with the monitoring team that the DENR may send from time to time to determine compliance of the POs to the agreement.

Section 7.       Marketing of Products . - The RUP shall serve as the permit to sell the logs, lumber and other forest products.

The Natural Resources Development Corporation (NRDC) shall assist in the processing, marketing and disposition of forest products through a mutually agreeable arrangement with the concerned POs.

In order to maximize the profit that could be generated and to increase value added, the community shall be encouraged and assisted to further develop and upgrade their materials into higher value finished products.

Section 8.       Penal Provision . - Violations of any of the provisions of this Order shall be penalized in accordance with existing laws and regulations.

Section 9.       Separability Clause . - Should any of the provisions of this Order be subsequently or otherwise revised, modified or repealed accordingly, the same shall not affect the validity or legality of the other provisions so far as they could stand independently of the provisions so revised, modified or repealed.

Section 10.    Effectivity Clause. - This Order shall take effect fifteen (15) days after its publication in a newspaper of general circulation.

Adopted: 14 Mar. 2000

(SGD.) ANTONIO H. CERILLES
Secretary