Amended Implementing Rules and Regulations of Republic Act No. 8048

August 9, 2002

PCA ADMINISTRATIVE ORDER NO. 01-02

AMENDED IMPLEMENTING RULES AND REGULATIONS OF REPUBLIC ACT NO. 8048

Pursuant to Section 7 of Republic Act 8048, otherwise known as the "Coconut Preservation Act of 1995", Administrative Order No. 1, series of 1998, is hereby amended for the guidance and compliance of all concerned.

ARTICLE I

Preliminary Provisions

SECTION 1. Title. — This Rules and Regulations shall be known and cited as the Amended Rules and Regulations implementing Republic Act No. 8048, otherwise known as the "Coconut Preservation Act of 1995".

SECTION 2. Purpose. — This Rules and Regulations is hereby promulgated prescribing procedures and guidelines for the effective implementation of RA 8048, facilitate compliance and achieve the objectives thereof.

SECTION 3. Declaration of Policy. — The State recognizes the role of the coconut industry in nation building and development considering the importance of the coconut industry in the economy, being one of the principal industries and one of the largest income earners of the country, it becomes mandatory for the Government to step-in and regulate the unabated and indiscriminate cutting of the coconut trees. For reasons of national interest, it is hereby declared the policy of the State to provide for the regulation of the cutting of coconut trees as well as to promote the growth of the national industry by embarking on a sustainable and efficient replanting program.

SECTION 4. Definition of Terms. — For the purpose of this Rules and Regulations, the following terms and phrases shall mean:

(a) Coconut Tree — refers to a tall pinnate-leaved palm bearing a large edible fruit called coconut, including those not yet bearing or is no longer bearing fruit.

(b) Replanting Program — refers to the program formulated by the Philippine Coconut Authority (PCA) to replenish the coconut trees permitted to be cut by the PCA.

(c) Permit — refers to the prescribed written authorization of the PCA allowing the cutting of coconut trees issued after compliance with the requirements provided by the Act and this Rules and Regulations.

(d) Economically unproductive farm — refers to a coconut area where the cost of farm production and maintenance is greater than the generated proceeds or income for a period of at least three (3) years.

(e) Senescent Coconut Trees — are coconut trees which are already overage, weak and no longer productive.

(f) Disease Infested Tree — refers to a severely impaired coconut tree due to bacteria, fungus, virus, viroid and other similar microorganisms, and the chances of its survival and being economically productive is nil.

(g) Pest Infested Tree — refers to a coconut tree damaged by rhino beetle, spike moth, caterpillar, and other destructive insects and animals.

(h) Sound Management Practice — refers to procedures and decisions that are scientifically proven; or accepted cultural practice that enhances farm production or productivity.

(i) Sawmill — refers to a wood processing plant or implement operated mechanically and installed in a fixed site or mobile carrier where coconut wood, log or timber is cut, treated, sawn or ripped to lumber, slabs and other wood products of any size or form such as poles, piles, wall wood, board pulp, or other finished coconut wood products.

(j) Lumber dealer — refers to a person or entity duly registered with PCA and engaged in the buying or selling, or both of coconut logs, timber and/or coconut tree lumber.

(k) Lumber Processor — refers to a person or entity engaged in the processing of coconut logs into lumber, slabs and other wood products of any size or form such as poles, piles, wall wood, board pulp, or other finished coconut wood products.

(l) Registration — refers to the registration certificate issued by PCA to coconut sawmills, coconut wood lumber, dealers and processors.

(m) Implementing Rules and Regulations — refer to the rules and regulations promulgated by the PCA including guidelines, circulars, orders and memoranda issued to supplement the same.

SECTION 5. Interpretation. — This Rules and Regulations shall be strictly interpreted to preserve productive coconut trees from unabated and indiscriminate cutting. Nothing in these Rules shall be applied, construed or interpreted to circumvent, or defeat the security of tenure or the rights and benefits of farmers, tenants, farm-lessees, tillers and regular farm workers prescribed by the Comprehensive Agrarian Reform Law (R.A. 6657).

ARTICLE II

Prohibition

SECTION 6. General Rule. — Consistent with the guiding policies, the cutting of coconut trees is hereby prohibited.

SECTION 7. Exception. — Coconut trees may be cut only if the following requisites exist:

(a) There exists a valid ground as enunciated in Section 4 of the Act:

i. When the tree is sixty (60) years old or more;

ii. When the tree is no longer economically productive;

iii. When the tree is severely disease-infected and/or pest-infested;

iv. When the tree is damaged by typhoon or lightning;

v. When the agricultural land devoted to coconut production shall have been approved for conversion into residential, commercial or industrial areas by the Department of Agrarian Reform;

vi. When the land devoted to coconut production shall be converted into other agricultural-related activities pursuant to a conversion duly applied for by the owner and approved by the proper authorities; Provided, that a Permit to Cut shall not be issued by the PCA until after it shall have been verified and certified that for a period of at least three (3) years the majority of the coconut trees have become senescent and economically unproductive or where the coconut is not adaptable to sound management practices on account of geographical location, topography, drainage and other conditions rendering the farm economically unproductive; and

vii. When the tree would cause hazard to life and property.

(b) A valid application has been made and the corresponding application fee of Twenty-five (PhP25.00) pesos for every tree applied for cutting has been paid.

(c) The applicant has already planted the equivalent number of coconut trees applied for cutting as attested by the PCA Agriculturist, the Barangay Chairman and the head of the Small Coconut Farmers Organization (SCFO) or other PCA-reorganized/accredited farmers/non-government organization in the Certification of Field Planting, except when the ground for cutting is conversion of the area into industrial, commercial or residential sites or that the land on which the coconut trees are grown has been converted into other agricultural purposes in accordance with law.

(d) A valid permit to cut has been issued by the PCA or a city or municipal mayor to whom the authority to issue permit to cut has been delegated by the PCA.

 For this purpose, illegal cutting of coconut trees shall include any form of circumvention such as uprooting or felling, poisoning, burning, and the like which lead to their eventual destruction, death or removal.

SECTION 8. Evidence of Dispossession. —

(a) Cutting of coconut trees in tenanted farms in violation of the Rules and Regulations shall be deemed prima facie evidence of dispossession, unlawful ejectment or deprivation of the rights and benefits of the farmer-tenants tillers or regular farm-workers under the Comprehensive Agrarian Reform Law or its Implementing Rules.

(b) Such incidence of dispossession, ejectment or deprivation shall be reported and recommended by the PCA to the Department of Agrarian Reform (DAR) for prioritization in land acquisition and distribution under the Comprehensive Agrarian Reform Law.

(c) The PCA shall further recommend to DAR as a reasonable award in favor of the farmer such amount of income on the part of the farmer, tiller or farm-worker.

ARTICLE III

Standards

SECTION 9. Economical Unproductive. —

(a) Coconut trees are deemed no longer productive if:

i. They have reached the age or condition of senescence which begin at the age of sixty (60) years, and that for the last preceding three (3) calendar years, there has been no substantial improvement or increase in their nut bearing capacity;

ii. Due to senescence as described in the preceding subparagraph, or the non-suitability of the land or area, the yield of the tree is eighteen (18) nuts or less per year.

(b) For conversion to other agricultural uses or other agricultural related activities, it shall be the duty of the authorized PCA Agriculturist to examine, evaluate and verify whether for the period of three (3) calendar years immediately preceding the application, the majority of the trees in the land are senescent and economically unproductive as described in paragraph (a)(i) and (ii) of this Section.

 No permit shall be issued unless all the aforementioned conditions are duly established and certified by the authorized PCA official.

SECTION 10. Farm Productivity. — To determine economic gain as a measure of productivity of a coconut tree or farm, the following shall be deducted:

(a) If the final product is copra:

i. cost of harvesting which includes picking and piling;

ii. cost of loading and hauling; and

iii. cost of processing, which includes husking splitting, scooping, and drying.

(b) If the final product is "buko" or green nuts, the cost items above shall be deducted except cost of processing.

 If the final product is husked nuts, the cost in items a (i) and a (ii) and cost of husking shall be deducted. This Section shall neither apply to nor include secondary crops other than coconut.

SECTION 11. Disease Infestation. —

(a) Disease in coconut trees shall be a ground for cutting only upon certification by the PCA Agriculturist that:

i. He has verified and confirmed that the tree applied for cutting is infested with pest or disease;

ii. The infested trees are no longer capable of rehabilitation thru preventive measures such as application of chemicals or nutrient support; and

iii. The infestation is such that it will spread to other trees or farms.

(b) Infested trees shall be subject to quarantine and shall not be allowed for processing, sale, transport or transshipment;

(c) Quarantined trees shall be disposed of by the owner thru burning under the supervision of the PCA Agriculturist.

SECTION 12. Conversion into Residential, Commercial or Industrial Areas. —

(a) The authority to approve or disapprove conversion of land devoted to coconut production for residential, commercial or industrial use shall be the exclusive jurisdiction of the Secretary of the Department of Agrarian Reform;

(b) Applications for conversion under this Section shall comply strictly with the requirements and procedures of the DAR Administrative Order No. 01, series of 2002 entitled "2002 Comprehensive Rules on Land Use Conversion". In such applications, the PCA shall conduct its own inspection of the area sought to be converted in order to determine the condition of the coconut trees therein and shall thereafter submit its certification to the DAR;

(c) In order to defray the administrative expenses of PCA in rendering said inspection services, the applicant shall pay the PCA the following and shall accrue in favor of the PCA Provincial Office where the application is being made:

i. Filing Fee

(1) One thousand pesos (PhP1,000) for applications involving land with an area less than or equal to five (5) hectares; or

(2) Two thousand pesos (PhP2,000) for applications involving lands with an area larger than five (5) hectares.

ii. Inspection Cost

(1) Ten thousand pesos (PhP10,000) for applications involving lands with an area less than or equal to five (5) hectares;

(2) Fifteen thousand pesos (PhP15,000) for applications involving lands with an area larger than five (5) hectares.

(d) The payment of filing fee and inspection costs shall also apply to applications involving conversion of land devoted to coconut production to other agricultural uses.

SECTION 13. Hazard to Life and Property. —

(a) The coconut trees are situated such that they pose immediate threat, danger or obstruction to:

i. existing houses, homes, animal dwelling, business establishments, buildings;

ii. plazas, playgrounds, promenades and public places frequented by people;

iii. public roads and highways, light of way, ports, dams, irrigation and waterways;

iv. electric and telephone communication lines or installations;

v. other properties of greater value than the coconut tree which poses the threat, danger or obstruction.

(b) Cutting of trees due to the exercise of the power of eminent domain or expropriation, shall be governed by the appropriate laws, regulations and ordinances.

ARTICLE IV

Application For Permit To Cut

SECTION 14. Filing of Application. —

(a) Application for a Permit to Cut coconut trees shall be made in accordance with the PCA prescribed form, stating the specific causes and circumstances therefore.

(b) The applicant shall pay thirty-five pesos (PhP35.00) to defray processing expenses for the application upon filing of the application, in addition to the twenty-five pesos (PhP25.00) paid for every tree applied for cutting which shall accrue to the provincial office where the application was filed.

(c) Application for Permit to Cut coconut trees pursuant to Section 4 (f) of the Act shall not be approved by the PCA unless it is accompanied by a certified true copy of the final conversion order or certification of exemption issued by the DAR and provided that the applicant has secured the equivalent number of seedlings to the coconut trees applied for cutting for distribution to other farmers.

(d) Application for Permit to Cut coconut trees pursuant to Section 4 (f) of the Act shall not be approved unless there is a certification for conversion to other crops issued by the Department of Agriculture and provided that the applicant has secured the equivalent number of seedlings to the coconut trees applied for cutting for distribution to other farmers.

(e) Filing of the application for permit to cut for the same ground/purpose in the same land/area shall only be allowed once at any given time.

(f) Notwithstanding the issuance of the final conversion order or certificate of exemption by the Department of Agrarian Reform or the Department of Agriculture, the cutting of coconut trees in the land approved for conversion or exemption shall at all times be covered by a permit to cut duly applied for by its owner and approved by the PCA.

SECTION 15. Who May Apply. — The following may apply for permit to cut:

(a) Landowner/s or duly authorized representative, in the case of a co-ownership, the controlling majority of the co-owners shall attach the duly notarized written consent to the application; and for corporations, the application shall be accompanied by the duly approved board resolution/s;

(b) Tenant, worker, tiller or farmer provided there shall be a written consent or original copy of the letter of authorization from the owner and must be duly notarized and in the case of a corporation, the duly approved board resolution;

(c) Owner of land/property that is endangered by coconut trees in an adjacent land or farm.

SECTION 16. Where to Apply. — The application shall be filed with the Division Chief or PCA Agriculturist in the PCA Municipal station having responsibility over the area where the trees are situated.

SECTION 17. Supporting Documents. — The application shall be accompanied with the following supporting documents.

(a) Any document which sufficiently identifies the applicant (i.e. Community/Residence Certificates, Voters Ids, Driver's License, Barangay I.D./Certificate);

(b) Proof of ownership of legal possession of affected land (TCTs, OCTs, Tax Declaration, Tenancy/Leasehold Agreement, Transfer Certificate from DAR, notarized Deeds of Conveyance or Mortgage, etc.);

(c) Affidavit that there is no existing encumbrance, lis pendens, third party claimant, mortgage, etc. to the property and that no third party claimant shall be prejudiced by the issuance of permit to cut;

(d) Affidavit of marking and identification of trees;

(e) Other supporting documents/certificates hereinafter required under this Rules and Regulations.

ARTICLE V

Processing of Application

SECTION 18. Notice and Posting Requirements. — The PCA Agriculturist shall cause the posting of the application in the barangay hall and in the site/area subject of application for 15 days and he shall thereafter issue a certificate of posting indicating the time and place of posting. The certificate of posting shall form part of the application. The expenses incurred for the posting shall be borne by the applicant. A copy of the certificate should be given to a representative of the PCA accredited farmers organization within the area.

SECTION 19. Completeness of Application. —

(a) The PCA Agriculturist shall ascertain the completeness of the application on its face and its supporting documents.

(b) Applications failing to comply strictly with the requirements in the preceding article shall not be acted on and shall be returned to the applicant with the corresponding notice stating the reason therefore.

SECTION 20. Verification. — Upon the compliance with preceding sections:

(a) The PCA Agriculturist shall conduct and verify the truth of the information contained in the application and supporting documents and conducts the necessary field and ocular inspection or investigation, as well as the consultations hereinafter required.

(b) The PCA Agriculturist in compliance with Section 7 of this Act shall inform the applicant, farmers or representatives of the organization and the Barangay Chairman of the dates and times set for inspection and invite them to attend as witnesses. Their non-appearances after due notice shall be deemed as a waiver to witness the inspection.

(c) The PCA Agriculturist shall confirm and certify the existence or non-existence of the causes and circumstances to warrant the issuance or non-issuance of a permit.

SECTION 21. Consultations. — Before any final recommendation may be made by the Agriculturist, he must further satisfactory show that:

(a) Consultations have been made with —

i. The farmer-tenants, tillers, regular worker and other lawful occupants occupying or working on the subject farm;

ii. The Barangay Captain;

iii. The Municipal Agrarian Reform Officer/BARC Chairman;

iv. At least one (1) Small Coconut Farmers Organization (SCFO) or other PCA recognized/accredited organization or non-government organization, whichever exists in the locality, representing or promoting the interests of the coconut farmers.

(b) Proof of actual consultation must be in the form of a certification duly signed by the person/organization's representative mentioned in the preceding subparagraph. (Form No. 03-98)

SECTION 22. Report and Recommendation. —

(a) After verification and field investigation, the PCA Agriculturist shall prepare and submit to the Division Chief his report and recommendation, copy furnished the concerned Action Officer of the Region certifying the existence or non-existence of the causes, circumstances and reason which may warrant the issuance or non-issuance of the permit, the location and area of the land, and the number of trees recommended for cutting.

(b) The PCA Agriculturist shall ascertain that the trees recommended for cutting are properly marked and identified.

(c) The affected tenant/tiller/regular farm workers shall be furnished copies of the findings and recommendations.

ARTICLE VI

Protest

SECTION 23. Who May Protest. — An applicant tenant, tiller, regular farm worker or the farmer/non-governmental organization acting for and in their behalf adversely affected by the findings and report of the PCA Agriculturist, may file a written protest with the Division Chief of the PCA Provincial Office within five (5) days from receipt of such findings and report.

SECTION 24. Grounds for Protest.— Protest may be made on any of the following grounds:

(a) Where the findings and the recommendations are not in accordance with the Act or this Rules and Regulations;

(b) Where the findings and the recommendations are attended by fraud, threat or coercion;

(c) Misrepresentation or serious mistakes in the appreciation of facts;

(d) Grave abuse of discretion on the part of the Agriculturist; and

(e) Where the implementation of the recommendation will cause excessive injury and unreasonable damage to the protesting party.

SECTION 25. Hearing. —

(a) The division Chief shall have thirty (30) days from receipt of the protest to immediately notify the parties, hear the protest and resolve the same.

(b) In the hearing, the contending parties shall submit their respective sworn statements and other documentary evidence in support of or in reply to the protest, which shall be the basis for the resolution.

(c) The parties may be assisted by counsel of their own choice, provided that the hearing shall not be bound by the technical rules of procedures and evidence as prescribed by the Rules of Court.

SECTION 26. Appeal. — Any affected party, within ten (10) days from the receipt of the Resolution of the Division Chief, may appeal the same to the concerned PCA Action Officer who shall in turn resolve the appeal within thirty (30) days from receipt hereof. The Resolution of the PCA Action Officer shall be final and executory for the purposes of issuance or non-issuance of permit to cut under the rules.

SECTION 27. Reports. — All protests, appeals, actions and resolutions by the Division Chief and the PCA Action Officer shall be reported to the PCA Administrator with corresponding copies thereof.

ARTICLE VII

Issuance of Permit To Cut

SECTION 28. Approving Authority. — The Permit to Cut may be issued after the review of the recommendations of the PCA Agriculturist that may be adopted or modified by the approving and issuing authorities hereinafter provided:

(a) Division Chief — Application for not more than 1,000 trees or corresponding area not exceeding ten (10) hectares;

(b) PCA Action Officer — Application for more than 1,000 trees up to 2,400 trees or a corresponding area of more than ten (10) hectares but not exceeding 24 hectares;

(c) PCA Administrator or in his absence, the Deputy Administrator for Corporate Services Branch (CSB) — Application for more than 2,400 trees or a corresponding area of 24 hectares.

 To prevent circumvention of the aforementioned approving and issuing authorities, only one (1) permit shall be issued at any given time for a single application for the same purpose/ground covering the same land/area. Hence, no splitting of the permit to cut in the same land/area is allowed.

SECTION 29. Form of Permit to Cut. — The Permit to Cut shall be in serialized form containing, among others, the grounds for its issuance, the number of trees to be cut, the date of cutting, the area or locality, the names of owners/tenants and their addresses and the title of land, or any proof of ownership (OCT, TCT, Tax Declaration, Absolute Deed of Sale, and etc.) (Form No. 05-98)

SECTION 30. Release of Permit to Cut Upon Presentment of Certification. — The permit shall be released to the applicant upon compliance with the following conditions:

(a) Presentation of Certification of Field Planting attesting that the applicant has already planted the equivalent number of trees in replacement of those trees approved for cutting. The Certification of Field planting shall be issued by the PCA Agriculturist and attested by the Barangay Chairman and the Small Coconut Farmers Organizations (SCFO), or PCA recognized/accredited farmers or non-government organization having responsibility over the place where the applicant has planted. The applicant shall have the obligation to exert best efforts to ensure the growth and productivity of the seedlings planted.

(b) In cases of application for permit to cut due to land use conversion or conversion to other agricultural use, presentation of Certificate of Compliance that the applicant has secured the equivalent number of seedlings to the number of trees applied for cutting, ready for distribution to coconut farmers, as verified by the PCA Agriculturist.

(c) Once released to the applicant, the issuing officer shall furnish copies of the permit to the following:

i. Office of the Municipal Treasurer;

ii. Office of the Barangay Chairman;

iii. Department of Agrarian Reform thru the Municipal Agrarian Reform Officer (MARO);

iv. PCA Regional Office; and

v. Tenant, if applicable.

SECTION 31. Date and Time of Cutting. — The recipient of the permit to cut shall inform the PCA Agriculturist or Division Chief of the date and time of cutting and the latter, shall as far as practicable do the necessary spot checking of the actual cutting.

SECTION 32. Delegation of Authority to Grant Permits. —

(a) In conjunction with Section 6 of the Act, the authority to grant permit to cut under this Rules may be delegated to the City or Municipal Mayor as the need arises and shall be initiated under any of the following circumstances:

i. upon the request of the City or Municipal Mayor;

ii. at the discretion of the PCA Administrator; or

iii. upon the endorsement of PCA accredited farmer or non-government organization.

 Provided that in the exercise of such delegated authority, the City or Municipal Mayor shall abide by the mandatory standards and requisites prescribed in this rules which shall be verified and certified by the PCA Agriculturist.

(b) The Administrator may, at any time, recall the herein delegated authority upon showing that the same is being dispensed with contrary to the standards or criteria prescribed in this Rules and Regulations, or with grave abuse of discretion, or for other compelling reasons in the interest of the coconut industry.

ARTICLE VIII

Collection and Remittance

SECTION 33. Payment of Fees. — Payment of fees authorized in the preceding section shall be made to the PCA Division Chief who shall issue the corresponding receipt.

SECTION 34. Remittance. —

(a) All fees herein collected by the Division Chief shall immediately be deposited with the nearest Land Bank of the Philippines branch or other government depository bank in their area of responsibility and shall be remitted to the PCA Regional Office that shall make the proper accounting thereof in accordance with existing COA rules and regulations.

(b) The Regional Office shall hold in trust the share of the fees accruing in favor of the beneficiaries and for the purposes authorized in Section 5 of the Act. Within 3 months from receipt of remittances, the Provincial Offices should prepare the voucher for remittance of the share of fees to the concerned local government unit that shall be coursed through the Municipal treasurer attaching the schedule of the amount to be remitted for the respective barangay concerned. The Regional Offices shall likewise submit a monthly report to the concerned PCA Action Officer indicating the status of collection of fees herein.

(c) All collections allotted for the PCA shall be used to implement its replanting program in the region from where the fees were collected and for the costs of implementation of the Act, subject to the approval by the PCA Administrator of the proposed expenditures.

ARTICLE IX

Program Monitoring

SECTION 35. Responsibility of PCA, LGUs, and Farmers Organizations. —

(a) The PCA through its Action Officers shall be principally responsible for the formulation of specific programs and projects involving regulation of indiscriminate cutting of coconut trees.

(b) In the formation of such programs and in the implementation of this Act, the PCA, through its Action Officers shall consult and enlist the assistance and participation of the Department of the Interior and Local Government (DILG) and other government agencies, the Small Coconut Farmers Organization (SCFOs) and other PCA-accredited farmers/non-government organizations, in conducting nationwide surveys of the cutting of coconut trees and affected areas and establishment of a data base relating thereto.

SECTION 36. Report of Violations. — The PCA Agriculturist and the Small Coconut Farmers Organizations (SCFOs) and other PCA-accredited farmers/non-government organizations shall inquire into all incidents of violations of the Act and these Rules by conducting spot-investigations thereof, and by gathering, receiving, verifying such incidents and reports, including persons involved, and shall immediately inform the City or Municipal Mayor, Barangay Chairman, and the deputized law enforcement agent for their appropriate preventive action. Furthermore, the PCA Agriculturist shall submit a complete report simultaneously to the concerned Division Chief and Action Officer with a copy of such report duly furnished the PCA Administrator.

SECTION 37. Filing of the Complaint. — Any criminal complaint for violations of Sec. 5 of RA 8048 may be initiated by the PCA Agriculturist or its authorized employee, member of the PNP and any person, whether natural or juridical whose rights are adversely affected thereby and has personal knowledge of facts constituting the violation of this Act. It can be commenced by filing a formal sworn complaint before the Office of the Provincial or City Prosecutor, or in the absence thereof, at the Municipal Trial Court of the place where the violation thereof was committed. All private complainants can avail of the assistance of the PCA Action Officers or employees of the PNP Station of the place where the violation was committed in the preparation and filing of the necessary complaint for violation of this Act.

SECTION 38. Transport Clearance. —

(a) For the effective monitoring of the movement and transport of coconut logs or lumber, transporters shall be required to secure necessary transport clearance from the PCA Provincial Office having jurisdiction over the point of origin of coconut logs or lumber. The transport clearance shall also indicate the point of destination of the coconut logs or lumber.

(b) Any transport or movement of coconut logs or lumber shall at all times to be covered by the original copy of the Permit To Cut and Transport Clearance. Duplicate originals, machine or Xerox copies of Permit to Cut or Transport Clearance shall not be valid as proof of compliance with the Act.

ARTICLE X

Registration

SECTION 39. Applicability of PCA Administrative Orders No. 001, Series of 1982 and 1993. —

(a) Pursuant to Section 7 of the Act, the registration of persons and entities dealing with coconut products in accordance with PCA Administrative Orders No. 001, series of 1982 and 1993, shall except as hereinafter provided, be applicable to operators of sawmills, lumberyards, processors and dealers of coconut wood products, provided, however, that registration under this Section shall not be issued to sawmills and lumber processors whose licenses have been withdrawn or cancelled by the Department of Environmental and Natural Resources (DENR).

(b) For purposes of this Rules and Regulations only, the rates of registration fee based on authorized capitalization provided for in PCA Administrative Order No. 001, Series of 1993, are hereby amended as follows:

Less than PhP1,000,000.00	NEW	PhP1,000.00
	RENEWAL	500.00
PhP1,000,000.00 up to	NEW	PhP3,000.00
5,000,000.00	RENEWAL	PhP1,500.00
over PhP5,000,000.00	NEW	PhP5,000.00
	RENEWAL	PhP2,500.00

 For purposes of this Rules and Regulations only, sawmills, and lumberyards, as well as processors and dealers of coconut woods shall register annually with the PCA Provincial Office where they operate or conduct business.

SECTION 40. Annual Registration of Power saws/Chainsaws with the PCA. —

(a) Immediately upon the effectivity of this Rules, all power saws and or chainsaws intended for the cutting of coconut trees shall be individually registered by their owners with any PCA Provincial office, to be renewed by December of each year.

(b) A registration fee of PhP500.00 per unit shall be paid by the owner of the power saw to the PCA Provincial Office where the original registration is filed. A fee of PhP250.00 shall thereafter be charged for renewals. Late payments shall incur a surcharge of 15% per annum.

(c) The Division Chief shall record the serial number of each power saw/chainsaw being registered and issue the corresponding registration receipts and sticker and the latter shall be attached thereto by the owner.

(d) Unregistered power saws/chainsaws used in the cutting and ripping of coconut trees shall be impounded by the PNP and shall be released to their owner only upon payment of the registration fee and a fine of PhP5,000.00 per unit.

(e) Regardless of registration, power saws/chainsaws used in the illegal cutting of coconut trees shall be confiscated in favor of the government pursuant to Section 7 of the Act.

SECTION 41. Coordination with Local Government Units and Other Agencies. —

(a) To update the PCA of the existence, identity and operations of sawmills, lumberyards, processors and dealers of coconut wood products in the area of his jurisdiction, the Division Chief shall from time to time consult with the City or Municipal Mayors or other agencies such as the Department of Trade and Industry — Bureau of Domestic Trade (DTI-BDT), the Securities and Exchange Commission (SEC), the Bureau of Internal Revenue (BIR) and seek such information relevant in the investigation or prosecution of violators of the Act or these Rules.

(b) In the event that the aforementioned persons or entities are found to have violated any provision of the Act or these Rules, the PCA may recommend to the appropriate agencies the cancellation of their registrations and other sanctions authorized by law, charters or municipal ordinances.

ARTICLE XI

Enforcement

SECTION 42. Deputation of Members of the Philippine National Police. —

All members of the Philippine National Police (PNP) and other law enforcement agencies nationwide are hereby deputized to assist in the enforcement of the Act and this Rules and Regulations by investigating, apprehending and causing the prosecution of violators thereof. By this deputation, they may spot-check the cutting, transportation and stockpiling of coconut trees, logs or lumber.

SECTION 43. Deputation of Small Coconut Farmers Organizations (SCFOs) and other PCA-Recognized/Accredited Farmers/Non-Governmental Organization (NGOs). —

Upon their application duly endorsed by the PCA's Action Officer or Division Chief, Members of the Small Coconut Farmers Organizations (SCFOs) and/or other PCA recognized/accredited farmers or non-government organizations may be deputized by the PCA Administrator to assist in the enforcement of the Act and these Rules, particularly in the monitoring, apprehension, confiscation and prosecution aspects of RA 8048 implementation.

SECTION 44. Confiscation. —

(a) Any felled coconut tree or lumber found to be without the required Permit to Cut from the PCA is hereby deemed illegally cut.

(b) The PCA or the PNP and other law enforcement agencies shall confiscate illegally cut coconut trees, logs or lumber, intercept their transportation, impound the vehicles used for the same and issue the necessary receipts therefore.

(c) Vehicles impounded pursuant to the provisions of paragraph (b) above shall be released by the PCA to their owners upon request and showing that the said owners had no complicity in the illegal cutting of coconut trees, logs or lumber confiscated.

SECTION 45. Custodial Disposition. —

(a) The illegally cut coconut trees, logs or lumber and the instruments and tools employed in their cutting as well as in their transportation which are confiscated by the PNP and other law enforcement agencies shall be deposited in the nearest PNP station or detachment or in the nearest barangay or municipal premises.

(b) The confiscated logs or lumber, instruments, tools and vehicles shall be recorded, inventoried and duly receipted for by the proper police officer or the authorized barangay or municipal official. The report of such confiscation and custodial disposition shall be immediately made to the Division Chief of the nearest PCA Provincial Office and to the PNP Station Commander in case the apprehending person is a PNP officer.

(c) To prevent wastage caused by deterioration or rotting during the pendency of litigation and subject to the approval of the public prosecutor or the court before which the case for violation of the Act is pending, the Division Chief may, in coordination with the barangay chairman and the municipal or city mayor concerned, conduct a public auction to sell and dispose of the illegally cut coconut trees, logs or lumber. The Division Chief shall post a written notice of the time and place of the same in three (3) conspicuous public places where the sale is to take place at least fifteen (15) days before the date of auction. The proceeds of the sale shall be deposited in trust with the nearest Land Bank of the Philippines branch for disposition after resolution or judgment in the case. In the event that the offender is found guilty, the proceeds of the sale shall be forfeited in favor of the government thru PCA.

(d) Confiscated coconut lumber which are unclaimed or abandoned for a period of thirty days shall thereafter be summarily disposed of by PCA and the proceeds thereof, if any, shall be used for the implementation of this Act.

ARTICLE XII

Penal Provisions, Forfeiture and Disposition

SECTION 46. Penalties. — The provision on Penalties under Section 8 of the Act is hereby adopted in toto and declared an integral part of this Rules.

SECTION 47. Forfeiture. — Pursuant to Article 45 of the Revised Penal Code, the penalties of imprisonment and fine under Section 8 of the Act shall carry with them the forfeiture of the illegally cut coconut trees, logs or lumber, and the instruments or tools employed in their cutting unless they be the property of a third person not liable for the offense, in favor of the Government.

SECTION 48. Final Disposition. — The illegally cut coconut trees, logs or lumber forfeited in favor of the Government shall be disposed of in accordance with the prioritization set forth in Memorandum Order No. 162, series of 1993 as amended by Memorandum Order No. 284 of the President dated June 5, 1995.

Accordingly, in the event that two (2) or more parties are requesting for disposition, priority shall be given in the following order:

(a) Needy victims of disaster as certified by DSWD;

(b) The DPWH projects related to the restoration of public facilities such as bridges, roads, etc., in times of emergencies, calamities and disasters and pursuant to a Memorandum of Agreement to be entered into between PCA and DPWH;

(c) School building programs of the Department of Education (DepEd) and those undertaken by the Department of National Defense (DND)/AFP Engineering Brigade;

(d) Health centers as may be requested by the Department of Health (DOH) and the local government unit (LGU) concerned;

(e) Public markets as may be requested by the LGU concerned;

(f) Municipal buildings as may be requested by the LGU concerned;

(g) Police stations as may be requested by the PNP and LGU concerned;

(h) AFP camps as may be requested by the DND;

(i) The National Housing Authority (NHA) for the implementation of the housing program for low-salaried government employees and pursuant to a Memorandum of Agreement that may be entered into between PCA and NHA;

(j) LGUs which have jurisdiction over the place where the coconut trees were cut, gathered and/or confiscated; and

(k) Commitments to provincial regional and national projects.

ARTICLE XIII

Repealing Clause

All Administrative Orders, Memoranda, Circulars and other issuances inconsistent with this Rules and Regulations are hereby modified and repealed accordingly.

ARTICLE XIV

Effectivity

This Revised Rules and Regulations shall take effect fifteen (15) days after its publication in two (2) newspapers of national and general circulation.

Issued this 9th day of August 2002, at Quezon City, Philippines.

(SGD.) DANILO M. CORONACIONAdministratorPhilippine Coconut Authority

APPROVED AND CONFIRMED by the PCA Governing Board in its Resolution No. 023-2002.