Republic of the Philippines 1.

9) Foreshore land - a string of land margining a body of water, the part of a seashore between the low-water
DEPARTMENT OF AGRICULTURE line usually at the seaward margin of a low tide terrace and the upper limit of wave wash at high tide usually
Office of the Secretary marked by a beach scarp or berm.
Elliptical Road, Diliman, Quezon City
1.10) Vegetated with mangrove species - an intertidal area of one (1) hectare or more with at least ten (10)
23 February 2000 percent mangrove crown cover in each hectare (i.e., when the sun is directly overhead at high noon, the
shadows case by mangrove species cover at least ten [10] percent of the area).
FISHERIES ADMINISTRATIVE)
ORDER NO. 197 : 1.11) Suitable for fishpond purposes - meeting all accepted criteria on elevation, soil type, soil depth, topography
Series of 2000 ) and water supply required for successful fishpond development.

SUBJECT: Rules and regulations governing the lease of public lands for fishpond development. 1.12) Undeveloped fishpond area  - areas not enclosed by dikes; or enclosed by dikes without functional water
control structures; or those enclosed by dikes with functional water control structures but the water level
Pursuant to the provisions of Sections 3, 6, 12, 13, 45, 46, 50, 55, 57, 65 and 107 of Republic Act No. 8550, required for production on a commercial scale cannot be maintained either by high tides or by pumping; or a
otherwise known as the Philippine Fisheries Code of 1998, and Section 4 of Republic Act No. 7881, the following larger area enclosed only with a simple perimeter dike which has not been subdivided, which may or may not be
rules and regulations governing the lease of public lands for fishpond development purposes are hereby vegetated with mangrove species and is not producing on a commercial scale.
promulgated:
1.13) Developed fishpond - area are enclosed by dikes with functional water control structures not vegetated
SECTION 1. Definition of terms and phrases. - For purposes of this Order, the following terms and phrases shall with mangrove species and producing on a commercial scale; but not a fully developed fishpond.
mean:
1.14) Fully developed fishpond - a clean, leveled area enclosed with dikes at least one foot higher than the
1.1) Fishpond Lease - an agreement entered into by and between the Secretary of Agriculture and qualified highest flood water level in the locality and strong enough to resist water pressure at the highest flood tide;
fishpond applicant for the use of public land for fishpond development purposes for a period of twenty-five (25) consists of at least a nursery pond, a transition pond, a rearing pond, or a combination of any or all of said classes
years. of ponds and a function water control system and producing in a commercial scale.
1.2) Permanent improvement - improvements introduced in the fishpond area which cannot be 1.15) Commercial-scale producing fishpond - a fully developed fishpond producing not less than 1000 kilograms
separated/removed therefrom without causing damage thereto. of fish per hectare per year.
1.3) Temporary improvement - improvements introduced in the fishpond area which can be removed/separated 1.16) Person - natural or judicial entities such as individuals, associations, partnerships, cooperatives or
therefrom without causing damage thereto or diminish the usefulness thereof. corporations.
1.4) Fishpond - a land-based facility enclosed with earthen, stone or concrete material to impound water for the 1.17) Fisherfolk - people directly or personally and physically engaged in taking and/or culturing and processing
growing of fish. fishery and/or aquatic resources.
1.5)  Fish - includes not only finfish but also mollusks, crustaceans, echinoderms, marine mammals, and all other 1.18) Fisherfolk cooperative - a duly registered association of fisherfolk with a common bond of interest, who
species of the aquatic flora and fauna. have voluntarily joined together to achieve a lawful common social or economic end, making equitable
1.6) Occupied - actual or constructive possession over the fishpond area. contribution to the capital requirement and accepting a fair share of the risks and benefits of the undertakings in
accordance with universally accepted cooperative principles.
1.7) Unoccupied - not occupied by any person, or is occupied by a person disqualified to acquire or enter upon it,
or by a person who, being qualified to occupy or use it, refuses or fails to exercise his preferential right thereto. 1.19) Fisherfolk organization - an organized group, association, federation, alliance or an institution of fisherfolk
which has at least fifteen (15) members, a set of officers, a constitution and by-laws, an organizational structure
1.8) Mangroves/tidal swamps/marshes - a community of intertidal plants including all species of trees, shrubs, and a program of action.
vines and herbs found on coasts, swamps, or border of swamps.

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1.20) Small and medium enterprise - any business activity or enterprise engaged in industry, agribusiness and/or c) Fisherfolk cooperatives/associations and small and medium enterprises duly organized or registered under the
services, whether single proprietorship, cooperative, partnership or corporation whose total assets, inclusive of laws of the Philippines.
those arising from loans but exclusive of the land on which the particular business entity's office, plant and
equipment are situated, must have value falling under the following categories: SECTION 4. Preference in the disposition of Public Lands for fishpond purposes. - Upon the effectivity of
Republic Act No. 8550, FLAs may be issued for public lands that may be declared available for fishpond
Micro : less than P 1,500,001 development primarily to qualified fisherfolk cooperatives/associations. Provided, however, that in cases of
existing FLAs, the current lessees shall be given priority upon its expiration and shall be entitled to an extension
Small : P 1,500,001 - P15,000,000 of another twenty-five (25) years in the utilization of their respective leased areas. Thereafter, such FLAs shall be
Medium : P15,000,001 - P60,000,000 granted to any Filipino citizen with preference primarily to qualified fisherfolk cooperatives/associations as well
as small and medium enterprises as defined under Republic Act No. 8289.
1.21)  Environmental Compliance Certificate - a permit issued by the President or his duly authorized
representative certifying that the new fishpond development will not bring about unacceptable environmental SECTION 5. Size of fishpond. - The area of fishpond to be leased shall be governed by the following:
impact and that the proponent has complied with the requirements of EIS system. a) An individual may be allowed to lease an area of not exceeding fifty (50) hectares;
1.22) Department - Department of Agriculture b) Husband and wife living together may be granted an aggregate area not exceeding fifty (50) hectares;
1.23) Secretary - Secretary of Agriculture Provided, however, that husband and wife living separately by virtue of a decree of legal separation may apply
for an area not exceeding fifty (50) hectares each;
1.24)  Bureau  - Bureau of Fisheries and Aquatic Resources
c) A corporation, association or cooperative may be granted an area not exceeding two hundred fifty (250)
1.25) Director  - Director of Fisheries and Aquatic Resources hectares;

1.26) Regional Office  - BFAR Regional Office d) Any branch of the government, person or association who will engage in fishpond development for scientific,
research or educational purposes may be granted an area of not exceeding ten (10) hectares through a
1.27)  Regional Director - BFAR Regional Director gratuitous permit.
1.28) Authorized representatives - include the BFAR Regional Director or other officials of the regional office SECTION 6. Period of lease. - The lease shall be for a period of twenty-five (25) years, renewable for another
designated by the Regional Director and other officials and employees of the BFAR or the Office of the Secretary twenty-five (25) years subject to Sec. 4 of this Order, the terms and conditions of the lease and other existing
duly designated by the Director or the Secretary. fishery laws, rules and regulations.
1.29) Resource rent - the difference between the value of the products produced from harvesting a publicly SECTION 7. Preemptive rights of heirs. - In case of the death of the lessee, his spouse and/or children as legal
owned resource less the cost of producing it, where const includes the normal return to capital and normal heirs, provided they are qualified, shall have preemptive rights to the unexpired term of his Fishpond Lease
return to labor. Agreement, upon filing of a fishpond application within ninety (90) days from the death of the lessee subject to
the same terms and conditions as originally provided therein.
SECTION 2. Lease of public lands for fishpond development. - A Fishpond Lease Agreement (FLA) must be
secured by a person who shall occupy or use any portion of the public lands declared by the Secretary of SECTION 8. Initial requirements in the filing of fishpond application. - The initial requirements for the filing of
Environment and Natural Resources as available for fishpond purposes and released to the Bureau for its fishpond lease application are as follows:
management and disposition in accordance with the provisions of this Order.
a) Four (4) copies of the sketch plan of the area released for fishpond purposes with its technical description as
SECTION 3. Persons who may apply for lease. - The following persons may apply for fishpond lease: extracted from the Land Classification Map of the Forest Management Bureau;
a) Citizens of the Philippines who are at least twenty-one years of age; b) In case the area applied for fishpond development is within the alienable and disposable land under the
jurisdiction of the Land Management Bureau, the comment of that Office must first be secured to the effect that
b) Corporations duly incorporated and registered under the laws of the Philippines at least sixty per centum
(60%) of the capital stock or interest of which belongs to citizens of the Philippines; and it interposes no objection to the issuance of a fishpond lease over the area;

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c) In case of a juridical person, two (2) certified true copies of Articles of Incorporation or Association duly e) Certification issued by the BFAR Regional Director to the effect that the area applied for is not subleased to
approved by government agencies concerned, the primary purpose of which is to engage in fishpond any other person/s; and
development;
f) Environmental Compliance Certificate from the DENR.
d) Certificate of bank deposit issued by any Banking Institution showing that the applicant has an initial capital in
cash of P10,000.00 per hectare or fraction thereof and/or its equivalent assets; SECTION 13. Terms and conditions of the fishpond lease. -

e) An affidavit declaring that the initial capital deposited in the Bank shall be used exclusively for the a) The fishpond area covered by the lease shall be confined within the perimeter of the parcel of land described
development of the area; and therein and shall be utilized by the LESSEE for fishpond purposes only.

f) Certification from the DENR that the area is available for fishpond development. b) The area subject of the lease is public land to the best knowledge and belief of the parties therein, and
accordingly, the LESSOR shall not be responsible for any loss occasioned by legal award of the area to any
SECTION 9. Application fee. - A non-refundable application fee of One Thousand (P1,000.00) pesos shall be paid claimant recognized by the Courts.
to the Bureau or its Regional Offices upon filing of the application which shall be remitted to the National
Fisheries Research and Development Institute (NFRDI). c) The fishpond covered by the lease shall be constructed as not to interfere with the free navigation of any
stream, river, migration paths, lakes or bays flowing through or adjoining the fishpens, fish cages, fish traps and
SECTION 10. When application is considered filed. - An application for lease shall be considered filed on the date fishponds or to impede the flow and ebb of the tide to and from the area. Any construction made in violation
and time the original thereof is actually received in the Bureau of its Regional Offices where the area is located. hereof shall be removed upon order of the Department, thru BFAR, in coordination with the other government
Applications with incomplete initial requirements shall not processed. agencies concerned at the expense of the LESSEE, or occupants thereof, whenever applicable.

SECTION 11. Priority right of application. - In determining the priority of applications, the following rules shall be d) Annual rentals shall be set at levels that reflect resource rent accruing from the utilization of resources and
observed: shall be determined by the Department thru BFAR. Failure to pay the annual rentals on the date the same are
due shall subject the LESSEE to the corresponding surcharges as provided for in the regulations. For failure to pay
a) When two or more applications are filed for the same area which is unoccupied or unimproved, the first the annual rentals and surcharges for two (2) consecutive years without justifiable cause, the lease shall be
applicant shall have the right of preference thereto. cancelled or terminated, and the bond therein forfeited in favor of the government without prejudice to any
b) Between an applicant for and a bona fide occupant of an area available for fishpond purposes, the latter shall action the government may take to recover rentals due including surcharges.
have the right of preference to the said area, in which case, the actual occupant if qualified shall be advised by e) The LESSEE must introduce improvements in the area within One Hundred Eighty (180) days from the date of
the Director to file a fishpond application within thirty (30) days from his receipt of a notice to that effect. If the issuance of the lease, otherwise the same shall be cancelled. The area leased shall be developed and producing
occupant is not qualified under the law to apply for the land, or loses his rights for failure or refusal to present on a commercial scale within three (3) years from the approval of the FLA; Provided, however, that all areas not
his fishpond application within the time granted above, he shall be required to vacate the premises. fully producing within five (5) years from the date of approval of the lease shall automatically revert to the public
SECTION 12. Final requirements for the issuance of a lease. - A fishpond lease may be issued in favor of an domain for reforestation.
applicant upon submission of the following: f) The leasehold rights of the LESSEE may be transferred covering all or any portion of the fishpond area herein
a) Twelve (12) copies of the survey plan of the area duly approved by the Director of Lands or Regional Director granted to another party subject to the prior written approval of the LESSOR, provided that the duration of the
of Lands, or if under cadastral survey, the same shall be certified by the Bureau of Lands; lease shall be for the unexpired period of the original lease.

b) Duly accomplished fishpond lease contract form duly acknowledged before a Notary Public; g) The leasehold rights of the LESSEE may be assigned to any financial institution to secure a loan for the
development of the area covered by the lease subject to the prior written approval of the LESSOR.
c) Certifications issued by the BFAR Regional Director and the Regional Trial Court in the judicial district where
the area applied for is located to the effect that the same is not involved in any pending administrative and SECTION 15. Surcharges for default of payment of rentals. - Non-payment of annual rental when it becomes due
judicial case, respectively; and payable shall be subject to a surcharge in accordance with the following schedules:

d) Payment of cash bond deposit and initial rental; Rentals paid from February 1 to March 31 ................................. 10%

Rental paid from April 1 to June 30 ............................................ 15%

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Rental paid from July 1 to September 30 .................................... 20% g) Occupying or introducing improvements in the area applied for without a fishpond lease agreement; and

Rental paid from October 1 to December 31 .............................. 25% h) When public interest so requires.

Rental paid after one (1) year ..................................................... 40% SECTION 20. Conditions on assignment/transfer of leasehold rights and interests. - The assignment/transfer
may be allowed under the following conditions:
SECTION 16. Cash Bond Deposit. - Before a lease is issued, the applicant shall, as a guaranty of good faith in filing
the application and for the satisfactory compliance with the existing fishery laws, rules and regulations a) The assignor/transferor has held the lease for a period of not less than three (3) years from the approval
promulgated thereunder and of the terms and conditions of the lease, be required to deposit a cash bond with thereof;
the Bureau or its Regional Offices. The cash bond shall be at the rate of One Hundred (P100.00) pesos per
hectare or fraction thereof: Provided, however, that after five (5) years and the LESSEE shall have fully developed b) The area subject of the proposed assignment/transfer has been developed and producing in commercial scale,
the area and made producing in commercial scale and has satisfactorily complied with all the requirements and except when the area has been abandoned by the lessee-assignor due to the enforcement of the assignment by
the terms and conditions of the lease, the Director, may credit same for payment of annual rentals. the assignee-bank;

SECTION 17. Incentives. - Fishpond Lease Agreement holders are mandated to execute within six (6) months c) The assignor/transferor has not violated any provisions of the fishery laws, rules and regulations relative to
from the effectivity of the Order, an incentive plan with their regular fishpond or prawn farm workers or fishpond development including the terms and conditions of the lease;
fishpond or prawn farm workers' organization, if any, whereby seven point five percent (7.5%) of their net profit d) The assignee/transferee is qualified to hold the lease pursuant to the provisions of this Order;
before tax from the operation of the fishpond or prawn farms are distributed within sixty (60) days at the end of
the fiscal year as compensation to regular and other pond workers in such ponds over and above the e) The area subject of the assignment/transfer is not involved in any administrative or judicial case; and
compensation they currently receive.
f) The transferee shall enjoy only the privilege to hold the lease for the unexpired period thereof and shall
In order to safeguard the rights of the regular fishpond or prawn farm workers under the incentive plan, the assume the obligations of the transferor relative to the said lease.
books of the fishpond or prawn farm owners shall be subject to periodic audit or inspection by certified public
accountants chosen by the workers. SECTION 21. Requirements on assignment/transfer of leasehold rights. - The assignee/transferee shall submit
the following requirements;
SECTION 18. Annual report on fishpond development, operation and production. - Within ten (10) days after six
(6) months from the approval of the lease and every one (1) year thereafter, the LESSEE shall submit to the a) An application form duly accomplished;
Director through the Regional Director concerned, an annual report under oath relative to the fishpond b) Original/duplicate copy of the Deed of Assignment/Transfer of Leasehold Rights and Interests and Assumption
development, operation and production, including the species and volume thereof, for statistical and evaluation of Obligations;
purposes. Said report shall be in a prescribed form duly verified and certified to by the Regional Director
concerned or his duly authorized representative. c) Certified true copies of original official receipts of updated payment of rentals;

SECTION 19. Grounds for the rejection of application for lease. - An application for lease shall be rejected on d) Payment of assignment/transfer fee in the amount of ten (P10) pesos per hectare or fraction thereof, but in
any of the following grounds: no case shall it be less than One Hundred (P100.00) pesos;

a) Lack/loss of interest of the applicant; e) Payment of application fee of P1,000.00;

b) Applicant is not qualified; f) Posting of required cash bond deposit;

c) Failure to comply with any of the requirements of Section 11 of this Order within sixty (60) days from the g) Latest report of improvements duly inspected and verified by the Regional Director or his duly authorized
receipt of Notice of Compliance; representative;

d) Death of the individual applicant; h) Twelve (12) copies of the survey plan of the area under his/her name duly approved by the Director of Lands
or Regional Director of Lands.
e) Dissolution of juridical person;
i) Fishpond lease contract form duly accomplished and acknowledged before a Notary Public;
f) Fraudulent, false or misleading statements or information in the application;

4
j) Certification issued by the BFAR Regional Director and Regional Trial Court in the judicial district where the a) Any person illegally occupying or introducing improvements in areas released for fishpond development
area applied for is located to the effect that the same is not involved in any pending administrative and judicial without a lease, prior to the effectivity of this Order, shall be penalized through forfeiture of all the
case, respectively; and improvements introduced thereon in favor of the government and shall vacate the area immediately. Provided,
however, that if the person occupying the said area is an applicant, he shall be charged double the ordinary
k) Affidavit and certification executed and issued by the applicant and BFAR Regional Director respectively, to the rental charges.
effect that the area applied for is not subleased to any person/s.
b) Upon failure or refusal to pay the charges herein mentioned, the said applicant shall be liable for prosecution
SECTION 22. Grounds for cancellation/termination of lease. - A lease shall be cancelled or terminated on any of and upon conviction shall suffer the penalty which is a fine of from Five Thousand (P5,000.00) pesos or
the following grounds: imprisonment from six (6) months to four (4) years or both such fine and imprisonment in the discretion of the
a) Violation of existing fishery laws, rules and regulations and other applicable laws; Court.

b) Death of the lessee, subject to the rights of legal heirs under Section 7 of this Order; SECTION 26. Administrative and Court Action. -

c) Dissolution of juridical person; a) The Secretary, the Director or their duly authorized representative may take action either administrative or
judicial, as may be necessary and proper to carry into effect the provisions of this Order.
d) Fraudulent, false or misleading statements or information in the application and/or other documents
submitted prior to or after the issuance of the lease; b) Adverse Claim or Protest. - Any person who has an adverse claim or protest over the area which is the subject
of applications for a twenty-five (25) year fishpond lease agreement shall file his claim or protest with the Bureau
e) Failure to submit the yearly reports; within thirty (30) days from knowledge thereof, otherwise such claim or protest shall not be entertained.

f) Failure to pay the rentals and surcharges for two (2) consecutive years; SECTION 27. Repealing clause. - Fisheries Administrative Order No. 60, as amended, Fisheries Administrative
Order No. 125 and existing fishery rules and regulations which are inconsistent with the provisions of this Order
g) Development of the area other than for fishpond purposes; are hereby repealed or modified accordingly.
h) Failure to comply with the rules and regulations, terms and conditions of the lease; SECTION 28. Effectivity.- This Administrative Order shall take effect fifteen (15) days after its publication in the
Official Gazette and/or in two (2) newspapers of general circulation.
i) Sublease of the area or any portion thereof;

j) LESSEE has acquired citizenship in another country during the existence of the FLA; and  

(SGD.) EDGARDO J. ANGARA
k) Failure of the LESSEE to provide facilities that will minimize environmental pollution, i.e., settling ponds,
reservoirs. Secretary

SECTION 23. Disposition of improvements. - When the lease had been cancelled or terminated and the RECOMMENDED BY
leasehold rights therein had not been assigned to any government financing institution, the existing
improvements on the area subject of said lease shall be considered automatically forfeited in favor of the (SGD.) MALCOLM I. SARMIENTO, JR.
government which shall be disposed of by the Bureau pursuant to applicable laws, rules and regulations on the Director, Bureau of Fisheries and Aquatic Resources
matter.
(SGD.) CESAR M. DRILON, JR.
SECTION 24. Abandoned, undeveloped or underutilized fishponds. - Fishpond areas covered by an existing FLA Undersecretary for Fisheries and concurrently
which have been determined jointly by DA, DENR and LGUs concerned as abandoned, undeveloped or Chairman, NFARMC
underutilized portions after five (5) years from the issuance of the FLA, can be reverted to their original
mangrove state and that necessary steps should be made to restore such areas to their original mangrove state. _____________________________________________________________________________________

SECTION 25. Unlawful use or occupation of public lands released for fishpond purposes. - Legal Aspects about fishpond, ownership, rights and limitations on Fishpond lease Agreement or Aquaculture
Stewardship Contract in the Philippines

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March 30, 2014
Tax declaration is not mandatory to have it issued to FLA holder's  name. In cases where tax declaration is 
issued, the Local Government Unit  unit concerned, city or municipal assessor will be collecting the annual
My knowledge about the technical and legal aspect of fishpond acquisition, ownership, possession and the likes property tax.
were very limited until I was given the opportunity to handle a fishpond account involving several issues to be To know more about requirements, qualifications, limitations and everything you want to know regarding
resolved. It's a very challenging task! Intensive research was done in every detail on legal and technical side and fishpond lease application, please copy paste to your browser the link below:
even up to business registration. I attended seminars and further consulted private counsel, legal counsels of
government agencies in direct control of fishpond concerns at regional level. To them, I am so grateful for
imparting their knowledge to me and answer my queries passionately.
http://www.bfar.da.gov.ph/pages/legislation/FAO/FAO%20197-1%20(1).pdf  or

http://www.bfar.da.gov.ph/LAW?fi=342
One of the most relevant seminar I have attended was the orientation sponsored by Bureau of Fisheries and
Aquatic Resources Region 7 (BFAR 7) regarding Fisheries Administrative Order (FAO 197-1) held at JJ's
Restaurant, Tagbilaran City, Philippines last March 14, 2013.  This administrative order took effect in January
2013 superseding FAO 197. The main objective of the seminar was for public awareness. It was well attended by A mere occupation of fishpond does not constitute ownership. If fishpond operator occupying an area who  is
fishpond operators in the province of Bohol. holding a piece of contract particularly known as Fishpond Lease Agreement (FLA) or ASC, his right is limited only
to what is specified in the contract. Upon expiry of the lease contract, rights are also terminated unless renewed.

It's a fact that majority of attendees of the above-mentioned seminar are operating with expired FLA's (Fishpond
May I share with you the basic information on fishpond legalities in the Philippines that the public must know. Lease Agreement) for so many reasons. Some said they they cannot proceed with their application because they
There are two classification of fishpond areas: have difficulty In documentary compliance associated with the financial problems of operators. Whatever stories
behind, reasonable or unreasonable, pay your annual rentals, renew FLA's prior to its expiry date to avoid
penalties, because the law excuses no one. 
1. Privately owned fishpond which means that the property has a certificate of land title of that particular area.
An owner can exercise his right to use, dispose or sell, lease to third parties, mortgage or assign his property. In To operate fishpond under lease, getting a valid FLA/ASC does not end there. All types of business must register
the Philippines, only very few has a title over their fishpond. Like any other real estate property, titled fishponds to government agencies to operate legally. You have to register your business name with DTI for individual,
are subject to annual property tax payable to local government unit. Take note, tax declaration of fishpond does Cooperative Development Authority for fisherfolk / cooperative and SEC for partnership and corporation. You
not constitute absolute ownership. must also register with SSS, Phil-HEALTH and PAG-IBIG. Secure business permit from city or municipal hall where
your business is located. Within 30 days from the approval of your business name registration, you have to
2. Public or government owned fishpond areas which are occupied by fishpond operators or register your business with BIR, secure your TIN and Certificate of Registration and register your books of
cooperatives/fisherfolk under Fishpond Lease Agreement (FLA) or Aquaculture Stewardship Contract (ASC) accounts. You must familiarize your BIR tax obligations, tax exemption including local government taxes. Know
respectively. FLA or ASC is both lease contract between an Individual/partnership/corporation or fisherfolk also your reportorial requirements to Government Agencies. Fishpond Annual Production Report must be
respectively and the Philippine Government. Maximum lease term for FLA is 25 years and renewable for another submitted to provincial or regional's office where fishpond is located. For corporation & partnership, submit
25 years not exceeding 50 years. While ASC is up to 10 years renewable for another 10 years. An individual is annual reports to Securities and Exchange Commission (SEC).  For cooperatives, submit reports to Cooperative
entitled to lease an area at a maximum of 25 hectares and 50 hectares for partnership/corporation and Development Authority.  As law abiding citizens, we should not forget to pay our taxes.   Unprocessed
fisherfolk/association. Subleasing of the area is prohibited as one of the provision of the lease contract. If this is agricultural products are exempted from sales tax but income derived from agriculture is subject to income
the nature of possession of the fishpond operator, fishpond areas can not be sold but may transfer their right if tax except for cooperatives because they have distinct tax privilege.   Since manpower is vital in your operation,
their FLA is in force or has not expired. Annual rental rate is at P1,000.00 /hectare for year 2013, take good care of the people who work for you by paying them at least a minimum wage, deduct from their
P1,100.00/hectare for the year 2014, P1,200.00/hectare for year 2015, P1,300.00/hectare for year 2016, payroll their SSS PHILHEALTH and Pag-ibig contributions and remit them including the employer's
P1,400.00/hectare for year 2017, and P1,500.00 /hectare for year 2018 and succeeding years unless increased counterpart. Because we  are not experts on everything, consult the people with authority which I always do
based on research studies. Rent is payable to BFAR. Local government may charge also an assessment on the especially on legal matters.
area leased areas especially when Fishpond owners has acquired tax declaration. Tax Declaration issued to
fishpond lessees or occupants does not constitute ownership.  Fishpond operators with expired FLA'S or ASC's  should renew it ASAP before any other qualified parties would.

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Those who apply first, are given the preferential right.  Fishpond areas with expired FLA's are open to any Transfer of rights does not involve taxes similar to titled fishponds but there are transfer charges to be settled
qualified applicants.  Don't just ignore your expired FLA or ASC, you might just wake up one morning and get with BFAR. Transferees/Assignees must make sure you follow the BFAR documentation requirement to effect the
evicted in a fishpond you are claiming  because another legal lessee is taking over your fishpond. transfer. Above all, you must consider the unexpired portion of lease must be long enough for you to enjoy the
fishpond use and the price you pay must be fair enough in relation to its expiry period and renewability.
APPLICATION FEES & OTHER CASH REQUIREMENT
RENTAL FEES: annual rental rate is P1,500.00 per hectare payable one year in advance  upon acceptance of To brokers or sales person,  always apply due diligence.  If land title is verified from Register of deeds, FLA or ASC
application is verified from BFAR.  It is more appropriate to check FLA or ASC at the BFAR PROVINCIAL FISHERIES OFFICE
APPLICATION FEE:  P2,000.00 where fishpond is located.
Cash Bond: P500.00 per hectare
Bank Certificate for Fishpond development:  P5,000.00 per hectare

Should you need assistance regarding application/business registration or other real estate requirement like
 Updates: selling or buying all types of real estate properties, please feel free to communicate with me.

___________________________________________________________________________________
One of the final requirements is ENVIRONMENTAL CERTIFICATE OF COMPLIANCE (ECC)  for fishponds developed
from 1982 onwards or CERTIFICATE ON NON-COVERAGE (CNC) for fishpond developed prior to 1982.

Based on actual experience, no one can apply on any fishpond area even if it has been expired for long time until
2. FISHPOND LEASING1
there is CANCELLATION ORDER and ORDER OF FINALITY.
Presidential Decree No. 704 provided for the disposition and lease of public lands for fishpond purposes
Other Issues: to qualified person or persons subject to various conditions. For this purpose different procedures in
securing lease agreements will be discussed as well as the various requirements:
If  a lessee (FLA holder) dies, leased fishpond area does not form part of the estate therefore
this not subject to estate tax.   1. Procedure in censuring 25-year fishpond lease agreement
2. Procedure in converting existing 10-year fishpond lease agreements into 25-year fishpond
Buying & Selling Fishpond: lease agreements, and
3. Procedure in the transfer and issuance of 25-year lease agreement.

To fishpond sellers:  If you possess the fishpond with title, you can dispose your property anytime by way of 2.1 Procedure in Securing 25-year Fishpond Lease Agreement
DEED OF ABSOLUTE SALE. To sellers holding a piece of contract as in FLA, you cannot sell the fishpond but you
may transfer your right if you still have a valid right by way of DEED OF ASSIGNMENT or WAIVER OF RIGHTS. A 2.1.1 Who are qualified to apply
valid right means your lease contract is in active status, rental is updated, the lease term is not terminated by
any cause. Please note that death of an individual lessee terminates the contract. But the legal heirs, spouse and The following are qualified to lease public forest lands for fishpond purposes:
children, have the preemptive right to apply for lease on the unexpired portion of the FLA within 90 days from
the death of the lessee.
1. Citizens of the Philippines
2. Duly organized corporations, associations and cooperatives, 60% of the capital stock of which
belongs to the citizens of the Philippines and registered with the Securities and Exchange
To the buyers:  Buying fishpond with title, go through the normal way of buying real estate properties by paying Commission.
the capital gains tax (CGT), documentary stamp tax (DST) and transfer fee. Normally, CGT & DST are for seller's
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account but this could be passed on to the buyer depending on the agreed terms by both the buyer and seller.  General Information Series, Vol. 1, No. 2, BFAR

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2.1.2 Filing of applications to lease public forest lands for fishpond purposes (for new areas) Upon recommendation of the Chairman, L.C. Committee, the corresponding letter-certification on the
availability or non-availability of the area for fishpond purposes shall be made to the Bureau of Fisheries
A duly accomplished fishpond application (Appendix A) with the Bureau of Fisheries and Aquatic and Aquatic Resources.
Resources or with the Regional Office where the area is located, together with the following:
2.1.5 Investigation and inspection of the area duly certified as available for fishpond purposes
1. Application fee of   5.00 either in cash, check or postal money order, payable to the Director of
Fisheries and Aquatic Resources. If the area is certified as available for fishpond purposes by the Ministry of Natural Resources, the
2. Two (2) copies of a correct sketch of the area, preferably extracted from the L.C. Map (of the Director of Fisheries and Aquatic Resources INSTRUCTS the Regional Director concerned to conduct
Bureau of Forest Development) or Board of Technical Surveys Map, clearly indicating therein the necessary investigation and inspection of the area, in accordance with the procedure prescribed for
the approximate location and boundaries. these purposes. Note: If the area is involved in any conflict or court case, the same shall be thoroughly
3. Proof or evidence (in bank certification form) of the initial available capital in cash, equivalent investigated. All subsequent action on the application shall be deferred until the final resolution of the
to 1/5; of the total amount needed to fully develop the area, based at   1,000.00 per hectare or conflict or case.

A statement of assets and properties certified by the Provincial/ City Treasurer/Assessor, or a financial 2.1.6 Requirements for the issuance of a 25-year fishpond lease agreement
statement from which may be derived the required initial capital for the development of the area.
After proper evaluation of the report, the applicant is advised in writing of the approval or disapproval of
4. Initial Environmental Examination (Appendix B). the application. If the application is recommended for approval, the applicant is required to comply with
5. Affidavit manifesting that the amount in bank deposit and/or the value of assets and properties the following requirements:
or networth of the financial statement submitted will be exclusively used for the development of
the area. 1. Payment of the corresponding annual rental and cash bond deposit.
6. In case of corporation, association or cooperatives, two (2) xerox copies of Articles of 2. Submission of a project feasibility study for areas 25.0 has and above or a project feasibility
Incorporation and By-Laws duly registered and approved by the Securities and Exchange questionnaire for areas less than 25.0 has.
Commission. 3. Submission of twelve (12) copies (white print) of the approved survey plan of the area.
4. Submission of a certification issued by the Regional Office concerned, certifying that the area
2.1.3 Referral of applications to Land Classification Committee (Bureau of Forest Development) is not involved in an administrative case or judicial case.

A duly filed fishpond application shall be referred to the Land Classification Committee (Bureau of 2.1.7 Evaluation of the project feasibility study
Forest Development, as Chairman) by the Bureau of Fisheries and Aquatic Resources for the
necessary survey and classification as to the availability of the area for fishpond development, together The project feasibility study shall be reviewed and evaluated by the Fishpond Evaluation Committee as
with the following: to the financial capacity of the applicant and the technical viability of the project study. If applicant is
found financially capable and the project study is technically and financially viable, the Evaluation
1. A duplicate/xerox copy of the fishpond application. Committee recommends to the Director of Fisheries and Aquatic Resources, the approval of the Project
2. One (1) duplicate/xerox copy of the sketch of the area. Feasibility study.
Note: The application and the sketch of the area are transmitted to the Composite Land
Classification Team of the Forestry Regional Office, who will undertake the survey, 2.1.8 Preparation and submission of 25-year fishpond lease
classification and zonification of the area in accordance with the prescribed criteria of
classification. After proper identification and classification, the Land Classification Committee, Upon full compliance with the requirements by the applicant, 25-year fishpond lease agreement is
through its Secretariat, submits the survey report with its comment and recommendation. prepared and subsequently forwarded to the Ministry of Natural Resources by the Director of Fisheries
and Aquatic Resources, recommending approval.
After the evaluation and review of the survey report, the Land Classification Committee
recommends to the Ministry of Natural Resources for the certification as to the availability or 2.1.9 Approval of 25-year fishpond lease agreement
non-availability of the area for fishpond development (Dept. Order No. 3).
Upon approval, the 25-year fishpond lease agreement is returned by the Ministry of Natural Resources
2.1.4 Certification of availability of the area for fishpond purposes by the Secretary of Natural to the Bureau of Fisheries and Aquatic Resources, who in turn advises the lessee of its approval. The
Resources. original and another copy of the 25-year lease agreement are sent to the lessee.

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2.2 Additional Information - 10% of the total project
1) For 25.0 hectares and less
cost
2.2.1 Size of fishpond area
For more than 25.0 hectares but not exceeding - 15% of the total project
2)
The area of fishpond subject of lease shall not exceed the following: 50.0 has. cost

- 20% of the total project

a) For individual - Fifty (50)hectares 3) For more than 50.0 has.
cost.
For corporation or
b) - Five Hundred (500) hectares
association
The applicant is also required to submit a sworn letter of undertaking stating that such bank deposit will
be exclusively used for the development of the areas.

2.2.2 Rentals, cash bond, surcharges and other fees

2.2.4 Obligation of fishpond lessee

The following annual rentals, surcharges, cash bond and other fees shall be paid to the Bureau of
Fisheries and Aquatic Resources or his authorized representative on the date they are due: Aside from the terms and conditions embodied in the lease agreement, a fishpond lessee is under
obligation to:

Initial annual -  6.00 per hectare or fraction thereof for the first year;   7.00
1. Submit a semi-annual report to the Director of Fisheries and Aquatic Resources on the
rental per hectare or fraction thereof for the second year; and an development, operation and production of the area.
increase of   1.60 per hectare or fraction thereof for the 2. Develop 50% of the area and be made producing in commercial scale within three (3) years;
and the remaining portion of the area shall be developed and be made producing in
succeeding years, but not to exceed   10.00 per year.
commercial scale within five (5) years, both periods to begin from the date of the execution of
the lease agreement.
Cash bond -  10.00 per hectare or fraction thereof. 3. Pay regularly the annual rentals.
4. Pay the surcharges, if any.
Annual rentals not paid on the date they are due, are subject to 5. Assume responsibility of any and all acts of his agents, employees and laborers in the
Surcharges - development and operation of the area.
the following surcharges:

Rental paid from Feb. 1 to March 31 - 10% 2.2.5 Procedure in converting existing 10-year fishpond lease agreements into 25-year fishpond
lease agreements
Rental paid from April 1 to June 30 - 15%
2.2.5.1 Who are authorized to request for conversion
Rental paid from July 1 to Sept. 30 - 20%
Holders of existing 10-year fishpond lease agreements may request for its conversion into a 25-year
Rental paid from Oct. 1 to Dec. 31 - 25% lease agreements; and

Rental paid after one year - 40%

Actual occupants of fishpond areas by virtue of expired yearly permits who are regularly paying the
rentals therefore, are under obligation to secure 25-year fishpond lease agreement for the area.

2.2.3 When equity is required (per Project Feasibility Study)

2.2.5.2 Filing of a duly accomplished fishpond application (under oath)

When equity is needed as indicated in a project feasibility study, the following shall be shown and
A duly accomplished fishpond application shall be filed with the Bureau of Fisheries and Aquatic
submitted in a certification as having deposited in any bank:
Resources or with the Regional Office concerned, together with the following:

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 1. Application fee of   5.00 either in cash, check or postal money order payable to the Director of 3. Deed of waiver or quitclaim.
Fisheries and Aquatic Resources.
2. Full payment of all rentals and other obligations due. Original or xerox copies of official receipts 2.2.6.2 Filing of duly accomplished fishpond application (under oath)
for such payments for three (3) consecutive years, including the present year should be
submitted.
A duly accomplished fishpond application shall be filed with the Bureau of Fisheries and Aquatic
3. Project feasibility study (only for undeveloped portion).
Resources or with the Regional Office concerned together with the following:
4. Twelve (12) copies (white print) of the approved survey plan of the area.
5. Recent report of improvements certified by the Regional Director concerned or his authorized
representative. The report shall show that 50% of the area had been developed if the permit or 1. Application fee of   5.00 either in cash, check or postal money order payable to the Director of
lease had been held for three (3) years, and the whole area should be fully developed if held Fisheries and Aquatic Resources
for five (5) years or more. 2. Up-dating of all rentals due the area
6. Certification issued by the Regional Director concerned certifying that the area is not involved 3. Cash bond deposit in the name of the transferee
in any administrative case or conflict. 4. Transfer fee
7. Certification issued by the Clerk of Court (CFI) of the Province/City, certifying that the area is 5. Recent improvements report (certification form) duly certified by the Fisheries Regional
not involved in any judicial case. Director or his authorized representatives
6. Submission of twelve (12) copies (white print) of the survey plan of the area, prepared by a
2.2.5.3 Processing of application and evaluation of project feasibility study Licensed Private Land Surveyor (Geodetic Engineer) and duly approved by the Director of
Lands or Regional Lands Director
7. Submission of certification from the Fisheries Regional Director and from the Clerk of Court,
Upon full compliance with the regulatory requirements, the Project Feasibility Study is referred to the CFI, as to whether or not the area is involved in any administrative or judicial case
Fishpond Evaluation Committee for proper evaluation as to the financial capability of the applicant and 8. Project Study or Feasibility Study if the area is not developed.
the viability of the project study.
2.2.6.3 Processing of application and evaluation of project feasibility study
If the applicant is found financially qualified and the project study is technically viable, the Evaluation
Committee recommends approval to the Office of the Director.
Upon full compliance with the regulatory requirements, the project feasibility study is referred to the
Fishpond Evaluation Committee for proper evaluation as to the financial capability of the applicant and
2.2.5.4 Preparation and submission of 25-year fishpond lease agreement for approval the viability of the project study.

After the preparation of the 25-year fishpond lease agreement, the Director of Fisheries and Aquatic If the applicant is found financially qualified and the project study is technically viable, the Evaluation
Resources forwards the same to the Ministry of Natural Resources for his approval. Committee recommends approval to the Office of the Director.

2.2.5.5 Approval of 25-year fishpond lease agreement 2.2.6.4 Preparation and submission of 25-year fishpond lease agreement for approval

Upon approval the 25-year fishpond lease agreement is returned by the Ministry of Natural Resources After the preparation of the 25-year fishpond lease agreement, the Director of Fisheries and Aquatic
to the Bureau of Fisheries and Aquatic Resources, which in turn advises the lessee of its approval. The Resources forwards the same to the Ministry of Natural Resources, recommending approval.
original and another copy of the lease agreement are sent to the lessee.
2.2.6.5 Approval of 25-year fishpond lease agreement
2.2.6 Procedure in the transfer and issuance of 25-year lease agreement
Upon approval the 25-year fishpond lease agreement is returned to the Ministry of Natural Resources to
2.2.6.1 Who are authorized to apply for transfer the Bureau of Fisheries and Aquatic Resources which in turn advises the lessee of its approval. The
original and another copy of the lease agreement are sent to the lessee.
Transferee who is a holder of either one of the following documents:

1. Deed of Sale
2. Deed of Assumption of leasehold rights and interests of the fishpond area from the
Development Bank of the Philippines
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