Pursuant to the pertinent provisions of PD 705, as amended, Executive Order No. 192 and in line with the rationalization of the Forest-based Industry, the policy banning the exportation of logs, lumber, and boules from natural forests, and the policy allowing export of finished and semi-finished products are hereby affirmed and maintained; subject however, to pertinent provisions, to be interpreted as follows:

SECTION 1.       Basic Policy and Objectives - It is the policy of the State to promote, develop, and expand the forest resource-based industries.  This shall be achieved through the following:

1.1       Rationalizing the Forest Industry in order to encourage more investments in the development, efficient and productive utilization of forest resources; and

1.2       Allowing the exportation of logs, lumber, and boules produced from tree plantations and finished and semi-finished products produced to provide incentives to the private sector to engage in the development of tree plantations.

SECTION 2.       Definition of Terms - For the purpose of this Order, the following terms shall mean:

2.1       Boule - unedged lumber produced from a log which has been sawn without passing through the edger and stickered back into its approximate original form.

2.2       Export - the process of sale and shipment of goods and services to a foreign entity.

2.3       Finished Wood Products - products derived from the manufacture or conversion of forest products into forms which can be readily used without further processing, or end-products ready for use without need of further manufacturing such as, but not limited to, doors, door jambs, picture frames, tool handles, wooden shoes, mouldings, toothpicks, chopsticks, boxes, plywood, toys, drawers, sides, decorative articles, floor parquets, pallets (assembled) and other similar products.

2.4       Knock-down Finished or Semi-finished Wood Products - end products that have components or parts which are taken apart for ease in packing, handling and transporting to the market or the end-user such as, but not limited to, cabinets, tables, chairs, and other similar wood products.

2.5       Lumber - solid wood not further manufactured other than sawing, resawing, kiln-drying, and passing lengthwise through a standard planing machine, edged and trimmed and has not been subjected to further pre-finishing.

2.6       Private Forest Development Agreement (PFDA) - is an agreement entered into by and between the DENR and a private land owner or his duly authorized representative for the establishment and development of forest plantation within his private property.

2.7       Semi-finished Products - whole-end products that require final stages of manufacture and/or assembly such as, but not limited to, window components, table tops, veneer and other similar products.

SECTION 3.       Scope and Coverage - The following wood products are allowed for exportation:

3.1       Round logs, lumber, and boules regardless of species produced from:

3.1.1 tree plantations and contract reforestation areas designated as timber production sites, except government-owned reforestation projects; and

3.1.2 trees planted in privately-owned lands covered by a Private Forest Development Agreement pursuant to DENR Administrative Order No. 16, Series of 1992.

3.2       Finished Wood Products;

3.3       Semi-Finished Wood Products;

3.4       Knock-Down Finished or Semi-Finished Wood Products.

SECTION 4.       Effectivity - This Circular shall take effect immediately upon acknowledgment by the U.P. Law Center and fifteen days after its publication in a newspaper of national circulation.

Adopted: 30 Sept. 1993

(Sgd.) ANGEL C. ALCALA
Secretary