In order to help stabilize the foreign exchange rate of the Philippine peso which has been adversely affected by the regional economic crisis and in order to get the optimum value of Philippine hardwood while using imported wood for ordinary construction, this Department in consultation with the Department of Trade and Industry (DTI) is temporarily lifting the ban on lumber exports imposed under DENR Administrative Order No. 19, dated 17 March 1989.

The lifting of the ban is, however, subject to the following conditions:

1. Only TLA - and IFMA-holders with approved Integrated Annual Operations Plan (IAOPs) shall qualify for an export permit;

2. Only KD lumber produced and processed locally shall be allowed for export;

3. A floor price shall be established periodically for the lumber to be exported to get the full value of the wood;

4. To ensure that domestic requirement for lumber is not prejudiced by export, the DENR Regional Offices in coordination with the local DTI will determine the domestic lumber requirement of the Region. A certification to this effect will be issued by the RED which will determine the export allocation of KD lumber per region. Such volume should not affect the requirement of lumber for local consumption.

5. Exportation of the lumber processed by qualified TLA-/IFMA-holders will only be allowed upon satisfactory compliance with all the requirements as shown in Annex A.

6. Lumber exports shall be allowed up to December 31, 1998 only, unless earlier terminated by this Office.

This Order shall take effect fifteen (15) days upon publication in a newspaper of general circulation.

Adopted: 11 Mar. 1998

(SGD.) VICTOR O. RAMOS
Secretary


REQUIREMENTS FOR LUMBER EXPORTATION

I. One-time requirement for an export permit

1. Letter-request for authority to export addressed to the DENR Secretary;

2. Certification of the RED concerned that the export of lumber will not adversely affect the domestic lumber supply within the region;

3. Certified photocopy of Wood processing plant permit;

4. Certified photocopy of Registration as Lumber Dealer;

5. Certified photocopy of valid IAOP issued by the DENR;

6. Certified photocopy of the Certificate of Registration issued by the Securities and Exchange Commission (SEC), (for corporation);

7. Certified photocopy of the Articles of Incorporation and by laws of partnership/association and/or corporation, (for corporation);

8. Certified photocopies of Income Tax Returns for the last three (3) years, (for new applicants);

9. Audited financial statements for the immediate preceding three (3) years, (for corporation);

10.Authorization letter duly approved by the Board of Directors of the Corporation, Partnership and/or Association designating their representative to sign and follow-up documents for and in behalf of the said corporation, partnership and/or association, (for corporation).

II. On a ship-to-ship basis

1. Photocopy of purchase order;

2. Letter of credit issued by the correspondent bank in favor of negotiating bank;

3. Certification of the CENRO concerned as to the volume of log and lumber production of the TLA- and IFMA-holder;

4. Sworn statement authorizing DENR representative(s) to verify submitted information.