DENR Administrative Order No. 2021-06 Revised Regulations Governing the Entry and Disposition of Imported Wood Products

Website: http:/www.denr.gov.ph / E-mail: web@denrgov.ph Republic of the Philippines Department of Environment and Natural Resources Visayas Avenue, Diliman, Quezon City —— ————e — DENR Administrative Order APR 21 2621 No. 2021- 06 SUBJECT : REVISED REGULATIONS GOVERNING THE ENTRY AND DISPOSITION OF IMPORTED WOOD PRODUCTS Pursuant to Presidential Decree No. 705, series of 1975, as amended, Presidential Decree No. 1433, s. 1978, and Executive Order No. 192 dated June 10, 1987, Republic Act No. 9147 or the Wildlife Resources Conservation and Protection Act, and in order to provide a mechanism to effectively monitor the importation, entry, and disposition of imported wood products, alongside with the existing import guidelines and procedures of the Bureau of Customs (BOC) and the Department of Agriculture-Bureau of Plant Industry’s National Plant Quarantine Services Division (BPI-NPQSD), and DENR policy on wood industry rationalization and development, the following regulations and guidelines are hereby promulgated for the guidance of all concerned. Section 1. Declaration of Policy. It is the policy of the state to sustainably manage the country’s forest resources to rationalize the development of the wood-based industries in order to continuously provide the wood supply needs of the country and facilitate international trade towards economic growth. Section 2. Objectives. The general objective of this Order is to rationalize the requirements and procedures of the importation of wood products into the country, specifically, it aims to: 1. Import wood materials, as a stop-gap measure to ensure a continuous supply of wood raw materials, until such time that local supply from tree plantations can adequately meet the local needs; 2. To augment local sources in order to utilize existing wood processing plant capacities; and Enable wood-based industries including the furniture and other downstream wood industries to generate employment and income. » Section 3. Scope and Coverage. This guideline only covers the entry and disposition of imported wood products with its corresponding tariff codes, shown in the table below: AHTN No. Code Imported Wood Products 44.01 Fuel wood, in logs, in billets, in twigs, in faggots or in similar forms; wood in chips or particles; sawdust and wood waste and scrap, whether or not agglomerated in logs, briquettes, pellets or similar forms 44.02 Wood charcoal (including shell or nut charcoal), whether or not agglomerated 44.03 Wood in the rough, whether or not stripped of bark or sapwood, or roughly squared 44.04 Hoopwood; split poles; piles, pickets and stakes of wood, pointed but not sawn lengthwise; wooden sticks, roughly trimmed but not turned, bent or otherwise worked, suitable for the manufacture of walking-sticks, umbrellas, tool handles or the like; chipwood and the like Let’s Go Green!!! 44.05 Wood wool; wood flour 44.06 Railway or tramway sleepers (cross-ties) of wood. 44.07 Wood sawn or chipped lengthwise, sliced or peeled, whether or not planed, sanded or end-jointed, of a thickness exceeding 6mm 44.08 Sheets for veneering (including those obtained by slicing laminated wood), for plywood or for similar laminated wood and other wood, sawn lengthwise, sliced or peeled, whether or not planed, sanded, spliced or end-jointed, of a thickness not exceeding 6mm 44.09 Wood (including strips and friezes for parquet flooring, not assembled) continuously shaped (tongued, grooved, rebated, chamfered, \-jointed, beaded, moulded, rounded or the like) along any of its edges, ends or faces, whether or not planed, sanded or end-jointed 44.10 Particle board, oriented strand board (OSB), and similar board (e.g., waferboard) of wood or other ligneous materials, whether or not agglomerated with resins or other organic binding substances 44.11 Fiberboard of wood or other ligneous materials, whether or not bonded with resins or other organic substances. Medium Density Fiberboard (MDF) 44.12 Plywood, veneered panels and similar laminated wood, blockboard, laminboard and battenboard 44.13 Densified wood, in blocks, plates, strips or profile shapes 47.01 Mechanical wood pulp 47.02 Chemical wood pulp, dissolving grades 47.03 Chemical wood pulp, soda or sulphate, other than dissolving grades. 47.04 Chemical wood pulp, sulphite, other than dissolving grades 47.05 Wood pulp obtained by a combination of mechanical and chemical pulping processes Imported wood products which are not covered by the above-cited tariff classifications shall not be regulated under this policy. Section 4. Definition of Terms. For purposes of this Order, the following terms shall be construed to mean as defined hereunder: a) Agent - a person authorized in writing to act for and on behalf of the principal, for the production, procurement, sale or other means of disposal of imported wood materials. Page 2 of 9 b) d) j) k) 0) ASEAN Harmonized Tariff Nomenclature (AHTN) — refers to the 8-digit nomenclature, consisting of the latest version of the Harmonized Commodity Description and Coding System of the World Customs Organization and the amendments thereto, with the addition of the seventh and eighth digits (referred as the ASEAN subheadings) and commodity description for tariff purposes. It is a tariff code that classifies commodities being imported and exported. Authority to Import/ Certificate of Registration (CoR) to Import Wood Materials— is a document issued by the concerned DENR Regional Executive Director certifying that the entity indicated thereof is authorized to import foreign wood materials into the country (attached as Annex A). Bill of Lading—is a transport document as a contract of carriage between involved parties for the right to deliver and/or claim goods at the port of destination. Commercial poles and piles - large pieces of timber for foundation or harbor works. Contractor - a person who enters into a written contract or agreement with another for whom he undertakes to produce, procure, furnish or sell imported wood materials. Convention on International Trade in Endangered Species (CITES) of Wild Fauna and Flora - a treaty regulating the international trade of fauna and flora listed in its Appendices. Dealer - a person, who, for himself or on commission, sells or offers for sale imported wood materials. Importation — an act of transporting into the country foreign wood products listed under Section 3 hereof for commercial and/or other purposes. Packing List — is an itemized list of goods providing the quantity, description and weight of the freight packaged. Plant Quarantine Service Certificate (PQSC) - is a document issued by the Bureau of Plant Industry (BPI) for those commodities that have been processed to the point where they do not remain capable of being infested with quarantine pests. Phytosanitary Certificate (PC) — an official paper document or its official electronic equivalent, consistent with the model certificates of the IPPC, attesting that a consignment meets phytosanitary import requirements. It is issued by the legal authority from the country of origin to show that the transported wood products have been treated and free from harmful pests and diseases. Port of Entry — shall refer to the first port of call of a foreign carrier into the country designated as such by applicable laws. Purchase Order — official declaration of receiving an order that contains the details about the transaction, parties taking part in it, the type of products involved, and the date of the transaction. Sanitary and Phytosanitary Import Clearance (SPSIC) - is a document issued prior to importation by the BPI to ensure the products being imported meets standard to protect human, animal or plant life or health, and to prevent the spread of pests or diseases among animals or plants. Such document also prescribes the condition to be complied by the importer for the maintenance of quality and suitability of product for the intended purposes. Page 3 of 9 Section 5. Who may Import Wood Materials. A holder of tenure instrument, Wood Processing Plant (WPP) Permit or Certificate of Registration (CoR) as Wood Furniture Manufacturer, Agent, Contractor, or Dealer of logs/poles and piles/lumber issued by the DENR, may import wood materials; provided, that before availing the privilege to import, the holder of the tenure and/or WPP Permit shall have his current Logs, commercial Poles and Piles, and/or Lumber Dealer’s Permit stamped by the Office of the Regional Executive Director (RED) concerned as a VALID AUTHORITY to import wood materials; provided further, that a wood furniture manufacturer, agent, contractor, or dealer not a holder of tenure or WPP Permit shall first secure the registration requirements specified under Section 11 herein. Section 6. Authorized Ports of Entry. Until such time that the Secretary of Environment and Natural Resources has designated other ports, the following shall be the authorized entry points of imported wood materials: |. For Luzon, the ports of: Poro Point, San Fernando, La Union Sta. Ana, Cagayan Mariveles, Bataan Subic Bay Port Legaspi City South Harbor, Manila North Harbor, Manila Batangas City 2. For the Visayas, the ports of: Iloilo City Cebu City Bacolod City Dumaguete City 3. For Mindanao, the ports of: Cagayan De Oro City Butuan City Bislig, Surigao del Sur Davao City Zamboanga City Parang, Maguindanao General Santos City Section 7. Entry and Discharge Requirements for Imported Wood Products. The entry and discharge of imported wood materials shall be in accordance with the requirements and procedures of the BOC and BPI-NPQSD; provided, that the Customs District Collector or his authorized agents shall require the importer or his authorized representatives to submit a copy of the Authority to Import (currently stamped Log, Commercial Poles and Piles or Lumber Dealer’s Permit) pursuant to Section 5 hereof or a Certificate of Registration validly issued by the DENR pursuant to Section | 1 hereof, and the Plant Quarantine Officer concerned shall require the owner or agent of the carrier, or said importer or his authorized representatives to submit the Phytosanitary Certificate pertaining to the imported wood materials issued by the country of origin as vital document in the issuance of inspection report; provided further that in the absence of a DENR Port Integrated Clearing Office (PICO), the service of qualified DENR-designated technical personnel shall be made available to BOC and/or BPI-NPQSD, when officially requested by the latter. Provided finally, that in the case of imported wood products from tree species listed under CITES, the importer or his shall representatives shall be required to present to the Custom Officer and Page 4 of 9 DENR Monitoring Team/Wildlife Traffic Monitoring Unit (WTMU) assigned at the port of entry, the CITES Export/Re-Export Permit issued by the CITES Management Authority of the country of origin and the CITES Import Permit issued by the DENR-Biodiversity Management Bureau. Section 8. Transport Documents for Imported Wood Products. The copies of the following documents shall be sufficient to accompany the movement or transport of imported wood materials from the port of entry to the point of destination: (1) Authority to Import or a Certificate of Registration to Import wood materials; (2) Sanitary and Phytosanitary Import Clearance (SPSIC) or Plant Quarantine Service Certificate (PQSC) issued by the BPI and/or Phytosanitary Certificate, whichever is applicable, issued by the country of origin indicating therein the kind of quarantine treatment requested and/or applied, if any; (3) Import Entry & Internal Revenue Declaration (BOC IEIRD Form 236); (4) Commercial Invoice; (5) Bill of Lading (BL); (6) Packing List; and (8) CITES Import Permit, if applicable. Section 9. Schedule of Report Submission. The following schedule of report submission shall be as follows: CENRO to PENRO Monthly report, on or before the 7" day of the ensuing month PENRO to Regional Office Monthly Report, on or before the 10" day of the ensuing month Regional Office to FMB Quarterly Report (with monthly breakdown), on or before the end of the month after the reference quarter Ex. First Quarter — April 30 The Regional Offices shall prepare the quarterly report with monthly breakdown using the prescribed electronic spreadsheet format. The electronic copy shall be submitted by the Regional Offices through the irrespective official email address to the Office of the Undersecretary for Field Operations copy furnished the Forest Management Bureau (FMB). Whenever a deadline falls on a weekend or on public holiday, report submission shall be due immediately following the next working day. The quarterly report on importation shall be properly analyzed and consolidated by the Regional Office prior its submission to FMB. Section 10. Storage, Processing and Disposition of Imported Wood Products. The storage, processing and disposition of imported wood materials and reportorial procedures required thereof shall be as follows: The importer who is qualified under Section 5 hereof may dispose of the imported wood materials or the processed or finished wood products; provided, that their transport from the storage area or mill site to any point of consignments or sales within a given defined areas allowed under existing regulations or within the region itself shall be accompanied with pertinent sales invoice and/or delivery receipts only. Provided further, that the transport of said wood materials outside the defined area or region shall be accompanied, in addition to the corresponding sales invoice and/or delivery receipts, with photocopies of the Phytosanitary Certificate and corresponding inspection Report of the Quarantine Officer concerned, Bill of Lading, and the Summary of Packing List duly authenticated by the CENRO/Implementing PENRO concerned or the Page 5 of 9 Regional Executive Director in the case of DENR-NCR and/or his authorized representatives. Section 11. Registration Requirements of Agents, Contractors, and Dealers of Imported Wood Materials. 11.1 Registration Requirements. In order that an application may be considered as duly filed, the following basic documents shall accompany the application of an Agent, Contractor, or a Dealer for a Certificate of Registration to Import Wood Materials: a) Authenticated copy of registration as cooperative, single proprietorship, partnership or corporation from the Cooperative Development Authority, Department of Trade and Industry (DTI) and/or Securities and Exchange Commission (SEC); b) Electronic copy of Purchase Order between the foreign supplier and the Agent, Contractor or Dealer for the procurement, sell or supply wood materials to be imported; and c) List of specific species of wood and its scientific names for imported products belonging to AHTN Code No. 44.03 and 44.07. The processing and issuance of Certificate of Registration to Import Wood Materials/Products is attached as Annex B. 11.2 Fees and Bonds. For every application for a new or renewal of a Certificate of Registration issued in consonance herewith, the following shall be collected: a) Application/Registration fee -P3,000.00 b) Cash Bond-P 12,000.00 (In case of surety bond, 50% of the bond deposit shall be posted in CASH and the balance in the form of surety bond. Provided that the face value of the surety bond shall be increased by 25%). 11.3 Validity. A Certificate of Registration issued in consonance with this Order shall be valid for a period not exceeding one (1) year, subject to renewal for a similar period upon application and proper compliance with existing DENR rules and regulations. 11.4 Responsibility of Registered Agents, Contractors or Dealers, Holder of Certificates of Registration shall be as follows: a) Display the Certificate of Registration at a conspicuous place within the establishment’s premises exposed to public view; b) Submit to the DENR, through CENRO/Implementing PENRO concerned or Regional Office in the case of DENR-NCR, a monthly report on imported wood materials not later than the fifth (Sth) day of the succeeding month to include, among others, the following information: b.1) Balance of previous months; b.2) Purchase(s) made during the month under report; b.3) Total volume/quantity handled; b.4) Volume processed/sold; and b.5) Balance at the end of the month. c) Provide the required Certificate of Registration from the RED concerned or his authorized representative to import before disposing through sales the imported wood materials; d) Allow authorized DENR personnel to inspect the premises where the imported wood materials are stored and to examine records concerning withdrawals or disposition of same; and Page 6 of 9 e) Provide such other related information as may be required by the Secretary or his authorized representative. Section 12. Penalty Clause. A person found to have in his possession imported wood materials which have entered the country contrary to the provisions of this Order shall be penalized by the immediate suspension and/or cancellation of his permit or certificate, the confiscation of the imported wood materials and/or finished wood products derived therefrom, without prejudice to the filing of appropriate charges subject to applicable laws, rules and regulations. Section 13. Separability Clause. Should any provision or part of this Order be declared void and/ or unconstitutional, those provisions not affected thereby, shall remain in full force and effect. Section 14. Repealing Clause. All provisions of DENR Administrative Order (DAO) No. 1999 46, DAO No. 2000-14, DAO No. 2000-20, DAO 2001-22 and all circulars, orders, memoranda, and issuances inconsistent herewith are amended or repealed accordingly. Section 15. Effectivity Clause. This Order shall take effect fifteen (15) days after publication in a newspaper of general circulation and upon submission to the Office of the National Administrative Register (ONAR) of the UP Law Center. ———T ROY A. CIMATU Secretary NE REPUBLIC OF THE ERIeINES sa DEPARTMENT < oF Ee NVIRONMENT IAN Publication: The Manila Times } rm May 4, 2021 Acknowledgement: U.P. Law Center May 4, 2021 Page 7 of 9 ANNEX A. Certificate of Registration as Importer/Dealer of Imported Wood Products <MEy Sy gS ve Republic of the Philippines SZ Department of Environment and Natural Resources ames NATIONAL CAPITAL REGION “tee National Ecology Center, East Avenue, Diliman, Quezon City CERTIFICATE OF REGISTRATION Registration No. This is to certify that, Mr/Mrs. a Filipino citizen of that has been registered (Proprietor) (Office Address) in this Office as IMPORTER/DEALER OF WOOD MATERIALS ————— Pursuant to the pertinent provision of PD No. 705, as amended, and in accordance with the provision of DAO No. 99-46 and the regulations promulgated thereto, and subject to the Terms and Conditions enmmersted at the back of permit, and such other additional regulation which may hereinafter prescnbed. The registrant has purchase order(s) with the following: SUPPLIER VOLUME (CUM) The place of its/his/her business operation is in . This Certificate of Registration is non negotiable and non-transferable and, unless sooner terminated, will expire on . Issued on at Quezon City, Philippines. Regional Executive Director Forestry Bond Application/Oath Fee: Registration Fee: (Cash): OR-No.: OR-No.: OR.No.: Date: Date : Date: Page 8 of 9 ANNEX B. Processing and Issuance of Certificate of Registration to Import Wood Materials/Products CLIENT Prepare and submit to CENRO duly accomplished application form and complete supporting document & CENRO nehnite Provide copy of Evaluate the application and its CLIENT for approved CoR to supporting document and endorse to submission of CLIENT PENRO lacking document within five (5) working days Retumto | Return the CENRO for | approved CoR to submission of | CENRO lacking 7... document | PENRO! Implementing [| ~~~ >>>> >> PENRO Evaluate the application and its supporting document and endorse to RED within five (5) working days Regional Executive Director (RED) Within ten (10) working days If to be returned Page 9 of 9