Enforcement of the Memorandum of Understanding dated June 8, 1973 by and Between the Bureau of Forest Development, Bureau of Internal Revenue, Anti-Smuggling Action Center and Philippine Constabulary Relative to the Seizure and Disposal of Illegally Cut Logs/Timber

June 15, 1973 REVENUE MEMORANDUM CIRCULAR NO. 28-73 SUBJECT : Enforcement of the Memorandum of Understanding dated June 8, 1973 by and Between the Bureau of Forest Development, Bureau of Internal Revenue, Anti-Smuggling Action Center and Philippine Constabulary Relative to the Seizure and Disposal of Illegally Cut Logs/Timber TO : All Revenue Regional Directors, Revenue District Officers, and Others Concerned For the information and guidance of all concerned, there are enclosed herewith and deemed integral parts hereof, copies of the memorandum of understanding referred to above and Presidential Decree No. 54, known as Annexes "All and "B", respectively, inviting special attention to the functions and duties of each office/bureau. To attain the objectives of the said memorandum of understanding, it is hereby directed that all concerned be guided accordingly and give this circular as wide a publicity as possible. aisa dc MISAEL P. VERA Commissioner of Internal Revenue TAN-1601-593-5 MEMORANDUM OF UNDERSTANDING OF SEIZURE AND DISPOSAL OF ILLEGALLY CUT LOGS/TIMBER "ANNEX A" MEMORANDUM OF UNDERSTANDING GENERAL : This Memorandum of Understanding prescribes the objectives, functions and duties of offices/bureaus such as the BFD, BIR, ASAC and PC directly as a team involved in the implementation of Presidential Decree No. 54 dated November 16, 1972. WHEREAS, Martial Law has been declared throughout the Philippines pursuant to Proclamation No. 1081, dated September 21, 1972; WHEREAS, to help attain the objectives of Martial Law it is imperative to protect the natural resources and vital industries of the country from economic saboteurs and opportunity; WHEREAS, Philippine Forest and forest reserves, are among the most vital sources of logging and related industries that must be protected not only by duly constituted authorities but by every citizen from being indiscriminately denuded or destroyed to the detriment of the present and coming generations; WHEREAS, there is need to delineate the functions and duties of offices involved in enforcing Presidential Decree No. 54 NOW, THEREFORE, WE, the undersigned heads of offices/bureaus do hereby come to an understanding to enforce the provisions of Presidential Decree No. 54, series 72 to the letter, that any natural or juridical person who directly or indirectly cuts, gathers, transports, declares, classifies, possesses or exports logs/timber, logs in transit without the following documents in violation of existing forest laws, rules and regulations shall be penalized as herein below indicated: PENALTY First Offense 1 Confiscation of the logs in question 2 Payment of fine to be imposed in accordance with existing rules and regulations; and 3 Suspension of the license and permit to operate for six months during the cutting period; and Second Offense 1 Confiscation of the logs in question 2 Payment of fine to be imposed in accordance with existing laws, rules and regulations; 3 Immediate cancellation of the license and permit to operate; and 4 Arrest and detention of the offenders until ordered released by the President or by his duly authorized representative. Furthermore, the following shall be required: 1 Certificate of origin by Timber Management Officer/scaler concerned, jointly under oath; 2 Auxiliary invoice properly accomplished and signed by licensee holders/agents under oath; 3 Official receipt evidencing payment of forest charges fee, surcharges and penalties; 4 Certificate of authorization as representative of licensee, if signed by Agent, attached with auxiliary invoice, and 5 Number of sawmill permit and the log and lumber dealer permit of the seller, in case of domestic sale, indicated on the phase of auxiliary invoice. FUNCTIONS & DUTIES (Jurisdictional ) P . C . Provincial Commander or Representative 1 Provide physical-protection to any Government team authorized to conduct necessary investigation under these terms of understanding. 2 Impound confiscated logs and put them under custody of nearest PC Command. Issue seizure receipt to log carriers, duly attested by other members. 3 Arrest illegal log carriers and place them under detention with the nearest PC Command, and/or Camp MPC Camp Crame, Quezon City, until ordered released by higher authority, per Presidential Decree No. 54. Bureau of Forest Development The duties incident to the measuring of forest products shall be discharged by the Bureau of Forest Development, under regulations of the Department of Agriculture and Natural Resources. 1 Determine period of cutting and issue order of suspension of license and/or permit for first offense; and immediate cancellation of license and/or permit for second offense, in writing, attested by other members; 2 Spell-out specific forestry violations committed and advise/inform the violators accordingly, in writing; and 3 Perform scaling job. ASAC 1 Provide intelligence reports to law-enforcement agencies; and assist, liaison and coordinate with other agencies like Bureau of Customs, BIR and Bureau of Labor, as the need arises, all apprehension/confiscation activities; 2 Facilitate determination of rightful informants and expedite rewards; 3 Keep records of apprehensions/confiscations as joint anti-smuggling efforts; and 4 Expedite disposal of impounded seized/logs/timber, illegally cut, in accordance with Presidential Directive dated March 22, 1961 as amended by subsequent Presidential Directive dated October 3, 1967. Bureau of Internal Revenue The invoicing and collection of forest charges shall be dens by the Bureau of Internal Revenue under regulations approved by the Secretary of Finance, pursuant to PIUs VXXX, Chapter V (CHARGES ON FOREST PRODUCTS) of the National Internal Revenue Code, as amended by Presidential Decree No. 69. 1 Subscribe and swear to, the auxiliary invoice (BIR Form 14.04) for timber and (BIR Form 14.05) for minor forest products, as accomplished by the licensee that it contains the true and complete statement of the timber basis for payment of forest charges, fees, surcharges and penalties. The PC, BFD, BIR and ASAC as a team shall coordinate their activities in the Regional/Provincial level to implement this Agreement. Effectivity This Memorandum of Understanding shall take effect and become executory after all heads of offices/bureaus shall have affixed their signatures. Done in Manila, Philippines, this 8th day of June, 1973. APPROVED: (SGD) CONRADO P. DIAZ (SGD) PELAGIO A. CRUZ Acting Commissioner Lieut. General, AFP (Ret.) Bureau of Internal Revenue Chairman, ASAC (SGD) JOSE VIADO (SGD) FIDEL V. RAMOS Acting Director Brig. General, AFP Bureau of Forest Development Chief, Philippine Constabulary ANNEX B PRESIDENTIAL DECREE NO. 54 WHEREAS, Martial Law has been declared throughout the Philippines pursuant to Proclamation No. 1081, dated September 21, 1972; WHEREAS, one of the objectives of said Proclamation is the restoration of peace, order and tranquility throughout the country in order to give the peace-loving inhabitants the chance to lead a peaceful, healthy, progressive life, socially, morally, economically and politically; WHEREAS, to attain such objective, it is very necessary to protect the vital industries of the country from economic saboteurs and opportunists; WHEREAS, Philippine forest reserves, being among the most vital sources of logging and related industries connected with the local and international economic life of the nation, must be protected not only by the duly constituted authorities but every citizen from being indiscriminately denuded or destroyed, to the detriment of the present and coming generations; NOW, THEREFORE, I, FERDINAND E. MARCOS, in my capacity as Commander-in-Chief of all the Armed Forces of the Philippines, and pursuant to Proclamation No. 1081, dated September 24, 1972, do hereby order and decree: that any natural or juridical person who directly or indirectly cuts, declares, classifies, possesses or exports logs in violation of existing laws, rules and regulations shall be penalized as follows: 1. Confiscation of the logs in question and payment of fine to be imposed in accordance with existing laws, rules and regulations and suspension of the license and permit to operate for six months during the cutting period, for the first offense. 2. Confiscation of the logs in question and payment of fine to be imposed in accordance with existing laws, rules and regulations; and immediate cancellation of the license and permit to operate; and arrest and detention of the offenders until ordered released by me or by my duly authorized representative, for the second offense. All laws, rules and regulations inconsistent herewith are hereby amended or modified accordingly. This Decree shall take effect immediately. Done in the City of Manila this 16th day of November in the year of our Lord, nineteen hundred and seventy-two. (SGD) FERDINAND E. MARCOS President Republic of the Philippines By the President: (SGD) RONALDO B. ZAMORA Assistant Executive Secretary