Bureau of Local Government Finance Opinion

March 3, 1998 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION 1st Indorsement Respectfully returned, thru the Municipal Treasurer of Alicia, Zamboanga del Sur, to the Municipal Mayor thereat. This refers to the letter dated February 3, 1998 of Director Teresita M. Mistal, Bureau of Local Government Development, Department of the Interior and Local Government, seeking clarification and advice on the interpretation of Sections 289, 290 and 291 of the Local Government Code of 1991 (RA 7160), in reaction to the letter of that Office dated January 6, 1998, inquiring if the Seven Seas Marine Products, occupying a certain area in Barangay Poblacion which is operating as a buying station of live exportable fish is under the term "utilization of national wealth." In connection therewith, reference may be made to Article 386(b) of the Implementing Rules and Regulations (IRR) implementing Section 289 of the Local Government Code and Section 131(r), same Code, which read as follows: "ART. 386(b). The term national wealth shall mean all natural resources situated within the Philippine territorial jurisdiction including lands of public domain, waters, minerals, coal, petroleum, mineral oils, potential energy forces, gas and oil deposits, forest products, wildlife, flora and fauna, fishery and aquatic resources and all quarry products." (Emphasis supplied) HICSaD "SEC. 131(r) "Municipal Waters" includes not only streams, lakes, and tidal waters within the municipality, not being the subject of private ownership and not comprised within the national parks, public forest, timber lands, forest reserves or fishery reserves, but also marine waters included between two lines drawn perpendicularly to the general coastline from points where the boundary lines of the municipality or city touch the sea at low tide and a third line parallel with the general coastline and fifteen (15) kilometers from it. Where two (2) municipalities are so situated on the opposite shores that there is less than fifteen (15) kilometers of marine waters between them, the third line shall be equally distant from opposite shores of the respective municipalities;" It is averred that the Seven Seas Marine Products has been operating a buying station of live exportable fish and also occupies a certain area of sea water in barangay Poblacion for preserving the live fishes it buys until the scheduled dates of transporting them abroad. Clearly, the company buys the fishes and preserves them in the municipal waters of that municipality before exporting, hence, is not engaged in the utilization of national wealth particularly aquatic resources. The municipality of Alicia may therefore collect reasonable fee for the use of its waters and the tax on the exportation of fish, if the municipality has a duly enacted Tax Ordinance for the purpose. Viewed in the light of the foregoing, it is apparent that the municipality has nothing to share with barangay Poblacion in relation to the utilization of national wealth for lack of legal basis. Enclosed for your information and guidance is a xerox copy of BLGF Memorandum Circular No. 21-93 dated May 14, 1993 bearing on the Share of Local Government Units in the proceeds from the development and utilization of the national wealth. TIDcEH (SGD.) LORINDA M. CARLOS Executive Director