Providing For The Exploration, Exploitation, Utilization And Conservation Of Coral Resources

Case Overview and Summary

PRESIDENTIAL DECREE No. 1219

PROVIDING FOR THE EXPLORATION, EXPLOITATION, UTILIZATION AND CONSERVATION OF CORAL RESOURCES

- Declaration of Policy (Section 2): Promote and regulate the exploration, exploitation, utilization and conservation of coral resources in Philippine territorial waters and marine economic zone, and ensure protection of these resources.

- Definitions (Section 3):
• Person: Natural or juridical person.
• Coral: Small anemone-like organisms belonging to Phylum coelenterata, including:
    • Precious coral: Rigid axis of compact calcareous or horny spicules, belonging to genus Corallium (e.g., red, pink, white corals). (Section 3.b.i)
    • Semi-precious coral: Thorny, horny axis, such as Antipatharians (e.g., black corals). (Section 3.b.ii)
    • Ordinary coral: All kinds of coral other than precious and semi-precious corals. (Section 3.b.iii)
• Exploration: Preliminary surveys and random sampling within a concession area. (Section 3.c)
• Exploitation: Actual extraction, gathering and collection in accordance with acceptable practices. (Section 3.d)
• Utilization: Operations involved in manufacture, processing or conversion of raw corals into finished products. (Section 3.e)
• Conservation: Complete preservation or limited harvesting of coral resources in a way that does not adversely affect sustained productivity of marine ecosystems. (Section 3.f)
• Concessionaire: Person to whom a concession has been granted or awarded under this Decree. (Section 3.g)
• Finished Products: Processed and manufactured coral articles of trade and commerce in a form that may be immediately utilized by the end-user or consumer (e.g., jewelries, decorative articles). (Section 3.h)

- Implementing Agency (Section 4): Secretary of Natural Resources has jurisdiction and responsibility for implementation.

- Ordinary Coral (Section 5): Gathering, harvesting, collecting and/or exporting of ordinary coral is prohibited, unless certain species in selected areas are excluded from prohibition upon recommendation and subject to conditions imposed by Secretary of Natural Resources.

- Special Permit (Section 6): Secretary of Natural Resources may issue special permit to any person or institution to gather limited quantities of any coral for scientific or educational purposes.

- Concession (Section 7): Exploration, exploitation and utilization of precious and semi-precious coral resources may be made only upon award of a concession by Secretary of Natural Resources.

- Concessionaire (Section 8):
• Must be a Filipino citizen or corporation/partnership with at least 70% Filipino ownership or control. (Section 8)
• May enter into service contract with foreigner or foreign-owned entity to conduct operations under awarded concession. (Section 8)
• Vessels used must be of Philippine registry, or obtain clearance/permit for foreign vessels. (Section 8)
• Concession for precious coral awarded to applicant with technical and financial capability to set up processing plant in Philippines. (Section 8)

- Export of Precious and Semi-Precious Coral (Section 9): Exportation of precious and semi-precious coral is prohibited, unless first processed and manufactured into finished products in the Philippines.

- Rules and Regulations (Section 10): Secretary of Natural Resources shall promulgate rules and regulations to implement this Decree.

- Penalties (Section 11):
• Gathering precious or semi-precious corals without concession: Imprisonment of not less than 60 days or more than 6 years, or fine of not less than ₱6,000, or both, at court's discretion. (Section 11)
• Gathering, harvesting, collecting and/or exporting ordinary corals in violation of Section 5, or exporting precious and semi-precious corals in violation of Section 9: Imprisonment of not less than 30 days or more than 3 years, or fine of not less than ₱3,000, or both, at court's discretion. (Section 11)
• Penalties are without prejudice to confiscation by the Government of illegally gathered corals, vessel, gear and paraphernalia used, including attempted illegal exportation. (Section 11)

- Repealing Clause (Section 12): All laws, executive orders and regulations inconsistent with this Decree are repealed or modified accordingly.

- Transitory Provisions (Section 13): All possessors of existing coral stocks gathered prior to effectivity of this Decree are required to submit a sworn statement indicating quantity, kind, state (raw or processed) and location of such stock to Secretary of Natural Resources within 1 month, subject to verification.

- Effectivity (Section 14): This Decree shall take effect upon its approval.