ADMINISTRATIVE ORDER NO.

01

DATE: August 29, 1995

IMPLEMENTING RULES AND REGULATIONS OF REPUBLIC ACT NO. 8048

Article I - PRELIMINARY PROVISIONS

Section 1. Title - This Rules and Regulations is promulgated by the Philippine

Coconut Authority pursuant to Section 7 of Republic Act No. 8048, entitled AN ACT
PROVIDING FOR THE REGULATION OF THE CUTTING OF COCONUT TREES, ITS
REPLENISHMENT, PROVIDING PENALTIES THEREFOR AND FOR OTHER PURPOSES,
otherwise known as the "Coconut Preservation Act of 1995."

Section 2. Guiding Policy - To prevent the imminent collapse of the coconut industry
and to promote the general welfare of the coconut farmers and the Filipino people:

(a) It becomes mandatory for government to step in and regulate the unabated and
indiscriminate cutting of coconut trees; and

(b) The state, in cooperation with the private sector, shall embark on a sustainable
and efficient replanting program to replenish the dwindling number of coconut trees,
complemented by coconut-based farm productivity and livelihood enterprises to
increase farm income.

Section 3. Definition of Terms - In addition to Section 3 of the Act, the following

terms and phrases shall mean:

(a) "Disease infested" refers to a severely impaired trees due to bacteria, fungus, or
virus, viriod and the chances of its survival and being economically productive is nil;

(b) "Pest infested" refers to a tree severely damaged by rhino beetle, spike month,
caterpillar and other destructive insects and animals;

(c) "Sound management practice" refers to procedures and decisions which are
scientifically proven, or accepted cultural practice that enhances farm production or
productivity;

(d) "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 into lumber, slabs and other wood products of any size
or form such as poles, piles wall wood, boards, pulp, or other finished coconut wood
product;

(e) "lumber dealer" refers to a person or entity engaged in the buying or selling, or
both, of coconut logs, timber and/or coconut tree lumber;

(f) "Registration" refers to the registration certificate issued by PCA to coconut wood
sawmills, coconut wood/lumber dealers/traders/processors;

(g) "Implementing Rules and Regulations" refers to the rules and regulations
promulgated by PCA including guidelines, circulars, orders and memoranda issued to
supplement the same.

Section 4. Interpretation - This Rules shall be strictly interpreted to preserve

productive coconut trees from unabated and indiscriminate cutting. Nothing in this
Rules shall be applied, constructed or interpreted to circumvent, or defeat the
security of tenure of 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 5. Exception - Consistent with the guiding policies, the cutting of coconut
trees shall be prohibited except for the causes and circumstances enumerated in
Section 4 of the Act, and only upon the issuance of a permit by the PCA or its duly
delegated representatives.

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

Section 6. Evidence of Dispossession - (a) Cutting of coconut trees in tenanted farms

in violation of this Rules shall be deemed prime 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) Suck incident of dispossession, ejectment or deprivation shall be reported and

recommended by 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 recommended to DAR as a reasonable award in favor of the
farmer such amount of income foregone or disturbance compensation to be paid by a
landowner who violates this Rules resulting to the loss of income on the part of the
farmer, tiller or farm worker.

Article III - STANDARDS

Section 7. Economically Unproductive - (a) Coconut trees are deemed no longer

productive if:

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

ii. Due to senescence as described in the preceding subparagraph, of the non-

suitability of the land of area, the yield of the tree is eighteen (18) nuts or less per
year.

(b) For conversion, 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 8. Cost of Production - To determine the 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 filing;
ii) cost of loading and hauling; and iii) cost of processing, which includes husking,
splitting, scooping, and drying.

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

c) 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 9. Disease Infestation - (a) Disease in coconut trees shall be a ground for
cutting only upon certification by the PCA Agriculturist that:

i. An epidemiological study has been conducted confirming and identifying the

disease;

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

iii. The infestation is such that it will spread and infect 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 10. 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 DAR Administrative Order No. 12, Series of 1994,
entitled "Consolidated and Revised Rules and Regulations Governing Conversion of
Agricultural Land to Non-Agricultural Uses".

Section 11. Hazard to Life and Property - (a) The coconut trees must 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 frequently by people;

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

iv. electric, telephone, communication lines or installations;

v. other properties whose value or use in greater than the coconut trees which pose
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 ordinances.

Article IV - APPLICATION FOR

PERMIT TO CUT

Section 12. Filling of Application - Application to cut coconut trees shall be filed in
writing in accordance with the form prescribed by the PCA, stating the specific
causes and circumstances therefor.

Section 13. Who May Apply - The following may apply for a permit to cut:

(a) Landowner or duly authorized representative

(b) Tenant, tiller, farm worker with the consent of the owner

(c) Owner of land/property that is endangered by coconut tree/s in an adjacent or

farm
Section 14. Where to Apply - (a) The application shall be filed with the Provincial
Coconut Development Manager in the PCA Provincial Office or the Agriculturist in the
PCA Municipal station nearest the area where the trees are situated.

(b) If the application involves not more than five (5) trees, it may be filed with the
Barangay Chairman who shall forthwith notify the PCA Agriculturist of such
application.

Section 15. Supporting Documents - The application shall accompanied with the
following supporting documents:

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

(b) Proof of ownership or legal possession of the affected land (TCTs, Tax
Declaration, Tenancy/Leasehold Agreement, Transfer Certificate from DAR Notarized
Deeds of conveyance or Mortgage, etc.)

(c) Other supporting documents/certificates hereinafter required under this Rules.

Article V - PROCESSING OF APPLICATION

Section 16. 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 no and shall be return to the applicant with the
corresponding notice stating the reasons therefor.

Section 17. Verification - (a) After ascertaining the completeness of the application,
the PCA officer concerned shall verify the truth of the information contained therein,
and conduct the necessary field and ocular inspection or investigation, as well as the
consultations hereinafter required.

(b) The PCA Agriculturist shall inform the applicant, farmers or representatives of
their organization and the Barangay Chairman of the date and time of inspection and
invite them to attend as witnesses. Their non-appearance 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 18. Consultations - Before any final recommendation may be made by the
PCA Agriculturist, he must further satisfactorily show that:

(a) Consultations have been made with -

i. the farmer-tenants, tillers and regular workers occupying or working on the

affected farm;

ii. the Barangay Chairman, and the municipal Agrarian Reform Officer, in case of
conversion to other uses; and

iii. at least one (1) PCA recognized/accredited farmer's organization or Non-

Government Organization, whichever is existing in the locality, representing and
promoting the interest of coconut farmers.

(b) Proof of actual consultation must be shown in the form of a certification duly
signed by the persons/organization representatives mentioned in the preceding
subparagraph.
Section 19. Report and Recommendation - (a) After the verification and field
investigation, the PCA Agriculturist shall prepare and submit to the Provincial coconut
Development Manager his full Findings and Recommendations certifying Coconut
Development Manager his full Findings and Recommendations certifying the
existence or non-existence of the causes, circumstances and reasons 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 recommended for cutting are
properly marked and identified.

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

Article VI - PROTEST

Section 20. Who May Protest - An applicant, tenant, tiller, regular farm worker, or
the farmer/non-governmental organization acting for an in their behalf adversely
affected by the findings and recommendations of the PCA Agriculturist, may file a
written protest with the Provincial Manager of the PCA Provincial Office within five (5)
days from receipt of such findings and recommendations.

Section 21. Grounds for Protest - A protest may be made on any of the following
grounds: (a) Where the findings and recommendations are not in accordance with
the Act or this Rules;

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

(c) Misrepresentation or serious mistake 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 22. Hearing - (a) The PCA Provincial Manager 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 basic for the resolution.

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

Section 23. Appeal - Any affected party may within ten (10) days from receipt of the
Resolution of the Provincial Manager appeal the same to the Regional Manger who
shall in turn resolve the appeal within thirty (30) days from receipt thereof. The
Resolution of the Regional Manager shall be final executory for purposes of issuance
or non-issuance of the permit to cut under this Rules.

Section 24. Reports - All protest, appeals, actions and resolutions by the Provincial
and Regional Managers shall be reported to the PCA Administrator with
corresponding certified copies thereof.

Article VII - ISSUANCE OF PERMIT TO CUT

Section 25. Approving Authority - The Permit To Cut may be issued after review of
the recommendations of the PCA Agriculturist which may be adopted or modified by
the approving and issuing authorities hereinafter provided:

(a) PCA Provincial Manager - not more than 1,000 of trees or a corresponding area
not exceeding ten (10) hectares;

(b) PCA Regional Manager - more than 1,000 trees up to 2,400 trees or a
corresponding area of more than ten (10) hectares but not exceeding twenty four
(24) hectares;

(c) PCA Administrator - more than 2,400 trees or a corresponding area of twenty-
four (24) hectares.

To prevent circumvention of the aforementioned approving and issuing authorities,

only one (1) permit shall be issued at given time for a single application.

Section 26. Form of Permit to cut - The Permit to Cut shall be in a serialized form
containing, among others, the grounds for its issuance, the number of trees to be
cut, the area or locality, the names of owners/tenants and their addresses.

Section 27. Release of Permit - (a) The Permit shall be released to the applicant
upon his payment to PCA of Twenty-Five Pesos (25.00) for every tree approved for
cutting.

(b) 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); and

iv. PCA Regional Office

v. Tenant, it applicable.

Section 28. Date and Time Of Cutting - The recipient of the Permit To Cut shall
inform the PCA Agriculturist or Provincial Manager of the date and time when the
actual cutting will take place. The PCA Agriculturist or Provincial Manager shall as far
as practicable do the necessary spot-checking of the land cutting.

Section 29. Delegation Of Authority To Grant Permits To Cut - In conjunction with

Section 6 of the Act, the authority to grant permits to cut under this Rules any be
delegated to the City of Municipal mayor as the need arises and shall be initiated
under any of the following circumstances:

(a) upon the request of the City or Municipal mayor;

(b) at the discretion of the PCA Administrator; or

(c) upon the endorsement of a PCA-accredited farmer or non-government

organization.

Provided that in the exercise of such delegated of such authority, the City or
Municipal Mayors shall abide by the standards or criteria in this Rules which, in the
absence of a local municipal agriculturist, shall be verified and certified by the PCA
Agriculturist.

Article VII - COLLECTION AND REMITTANCE

Section 30. Payment of Fees - Payment of the fees authorized in the preceding shall
be made to the PCA Provincial Collection and Disbursement Officer who shall issue
the corresponding receipt.

Section 31. Remittance - (a) All fees collected shall be remitted on a weekly basis to
the PCA Regional Office which shall make the proper accounting thereof.

(b) The Regional Office shall in turn distribute on a monthly basis the allocation of
the fees to the beneficiaries for the purposes authorized in Section 5 of the Act.

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

Article IX - EXEMPTIONS FROM PERMIT

AND FEES

Section 32. Grounds For Exemption - Coconut trees which are qualified for cutting
under the circumstances provided in Section 4 of the Act shall be exempt from the
requirements of permit to cut and application fees, as follows:

(a) Those posing imminent hazard to life or property under Section 14 Article III of
this Rules, provided that the person ordering or initiating the cutting shall
immediately report the cutting to the nearest PCA office;

(b) Those intended for domestics and household use by the landowner, farmer, or
tenant, not exceeding five (5) trees, not for sale, and not for transport beyond the
barangay where they are cut;

(c) Those situated in residential lots or public parks, planted purely for ornamental
purposes, and not devoted to coconut production.

Provided that, except in cases falling under subparagraph (a) above, applications in
accordance with Section 12 Article IV of this Rules shall be filed for monitoring
purposes.

Article X - PROGRAM MONITORING

Section 33. Responsibility of PCA, LGUs, and Farmers Organizations - (a) The PCA
shall be principally responsible in formulating specific programs and projects
involving the regulation of indiscriminate cutting of coconut trees.

(b) If the formulation of such programs, the PCA shall and enlist the assistance and
participation of the Department of the Interior and Local Government (DILG) and
other government agencies. PCA-accredited farmers organizations as well as other
non-government organizations, in conducting nationwide surveys of the cutting of
coconut trees affected areas, and the establishment of a data base relating thereto.

Section 34. Report of Violations - The PCA Agriculturist shall inquire into all incidents
of violations of the Act and this 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 PCA Provincial and Regional Managers with a copy of such
report duly furnished the PCE Administrator.

Section 35. Systems Monitoring - For efficient and uniform implementation and
coordination, the PCA shall devise such monitoring systems and forms, and for this
purpose allocate and disburse the necessary funds.
Article XI - REGISTRATION

Section 36. 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 and by-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 license have
been withdrawn or cancelled by the Department of environment and Natural
Resources (DENR).

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

Less than P1,000,000.00 NEW P1,000.00

RENEWAL 500.00

Over P1,000,000.00 up to NEW 3,000.00

P5,000,000.00 RENEWAL 1,500.00

Over P5,000,000.00 NEW 5,000.00

RENEWAL 2,500.00

Section 37. 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
PCA Provincial Manager 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), and the
Bureau of Internal Revenue (BIR), and seek such information relevant in the
investigation or prosecution of violations of the Act or this Rules.

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

Article XII - ENFORCEMENT

Section 38. Deputation of Members of the Philippine national Police - All members of
the Philippine National Police (PNP) are hereby deputized to assist in the enforcement
of the Act and this Rules by investigating, apprehending, and causing the prosecution
of violators thereof. By this deputation, they spot-check the cutting, transportation,
and stocking of coconut trees, logs or lumber.

Section 39. Confiscation - The PNP shall confiscate illegally cut coconut trees, logs or
lumber, intercept their transportation, impound the vehicles used for the same, and
issue the necessary receipts therefor.

Section 40. Custodial Disposition - (a) The illegally cut coconut trees, logs or lumber,
and the instruments and tool employed in their cutting as well as in their
transportation which are confiscated by the PNP shall be deposited in the nearest
PNP station or detachment, or in the nearest barangay or municipal premises.

(b) The deposit shall be inventoried and duly receipt 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 nearest PCA Provincial Office
and to the PNP Station Commander in case the apprehending person is a PNP officer.

Section 41. Progress Report By PNP On Investigations and Dispositions - The PNP
shall inform the CPA Provincial Manager of the progress of its investigations. The
Provincial Manager shall in turn furnish copies thereof to the PCA Administrator thru
the Regional Manager.

Article XIII - PENAL PROVISIONS, FORFEITURE

AND DISPOSITION

Section 42. Penalties - The provision on Penalties under Section 8 of the Act is
hereby adopted in too and declared an integral part of this Rules.

Section 43. 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 in favor of the Government 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.

Section 44. 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 disasters as certified by the Department of Social Welfare and
Development (DSWD);

(b) The Department of Public Works and Highways (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, Culture and Sports
(DECS) 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 any 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 XIV - REPEALING CLAUSE

All Administrative Orders, Memoranda, Circulars and other issuance's insistent with
this Rules and Regulations are hereby modified and repealed accordingly.

Article XV - EFFECTIVITY

This Rules and Regulations shall take effect immediately after their publication in two
(2) newspapers of national and general circulation.

ISSUED this 29th day of August 1995 at Quezon City.