Philexport Cebu | export services, market reports, training for Philippine exporters

The exporters of Cebu, the second largest group in the country, applauded President Benigno S. C. Aquino, III for the signing and issuance of Executive Order No. 23, otherwise known as the “Total Log Ban” directive. Finally, we have a leadership that is serious about fighting illegal logging and putting a stop at the wanton destruction and denudation of our forest resources, an industry leader was heard saying. That shows political will and guts, the same source added.

E.O. No. 23 entitled “Declaring a moratorium on the cutting and harvesting of timber in the natural and residual forests and creating the anti-illegal logging task force” was issued in the light of widespread flooding and landslides in Mindanao, Easter Visayas and Bicol where scores of inhabitants either died or were displaced.

The creative industries of Cebu, comprising of furniture, gifts, toys, home décor, fashion accessories, who use wood and wooden materials for their export products somehow voiced their fears that if the implementing guidelines are ambiguous the ban could lead to:

• an immediate increase in the cost of raw materials due to a perceived shortage of supply
• harassment and extortion activities at check points even if the logs are sourced from legitimate sources
• multi-dimensional interpretations of its provisions and add unnecessary layers of bureaucracy to the industry

Cebu exporters who generally contribute around 10% to the nation’s total exports are asking the government to:

1. make clear that all existing forestry agreements and contracts, under the ITP (Industrial Tree Plantation) project such as the IFMA (Integrated Forest Management Agreements, SIFMA (Socialized Integrated Forest Management Agreements), CBFMA (Community-based Forest Management Agreements) and PFDA (Private Forest Development Agreement) shall continue to be valid and respected. All these are covered under the Mandatory List of the IPP (Investment Priorities Plan) particularly PD No. 705 or the Revised Forestry Code of the Philippines;
   
   
2. specify clearly land classification i.e. standard and natural or residual forest since EO 23 provides that forestry agreements shall be cancelled if permit holders engage in logging activities in ANY natural or residual forest or abet the commission of the same, although previous policies allow the harvesting in residual forests covered by forestry agreements if these forests are not located in protected areas, watershed reservations or areas above 1,000 meters above sea level and slopes above 50 percent;
   
   
3. clarify whether or not the moratorium will be applied prospectively to new holders of forestry agreements as retroactive application of the logging ban on any natural or residual forest would result in the termination of many existing forestry agreements and contracts, and holders of these contracts are still guided by old policies. They are just about to reap the fruits of the IFMA (a 25-year agreement), which may not happen if EO 23 is not implemented appropriately.

Exporters belonging to the “creative industries” of Cebu, who are all slowly recovering from the dire effects of the 2-year global recession, are strongly appealing to President Benigno S.C. Aquino, III, to DENR Secretary Ramon Paje, DILG Secretary Jesse Robredo and to all the other authorities named to help the task force in implementing the log ban to be cognizant and appreciative of their concerns.