Registration & Compliance Steps
Legal and Regulatory Compliance is critical to operating an ethical and profitable agarwood venture. Because Aquilaria species are endangered and regulated globally, failure to comply can lead to seizure, legal penalties, or loss of market access.
To operate in the agarwood industry, plantations must be DENR-registered, CITES-compliant, and environmentally cleared. Proper documentation enables legal harvest, processing, and international export, securing both market access and investor confidence.
Step 1: Business Registration (SEC).
- Registering your Agarwood production business is legally required and strategically important for the long-term success, credibility, and profitability of your operations.
- Sales Invoice and Local Transport Permit (LPT) will reflect your registered business name to maintain documentation consistency.
- Without a registered business, you cannot legally trade, transport, or export agarwood.
Step 2: Purchase Certified Agarwood Seedlings.
- Buy Certified & DNA-Sequenced Agarwood (Bari) Seedlings(Medium or Small size).
- Strict ONE STOCK POLICY is enforced for seedling inventory.
- No support will be provided for plantations using seedlings from non-accredited sources.
Step 3: Digital Traceability (Blockchain)
- Digital traceability is a technology-driven system that ensures transparency, authenticity, and sustainability in the Agarwood industry. It allows every step of the Agarwood supply chain—from plantation to final product—to be tracked and verified using blockchain, RFID tagging, QR codes, and smart contracts.
- History documentation from planting to harvest are requisites in applying for CITES Export Clearance.
Step 4: Obtain a Clearance from Environmental Bureau.
- Either a Certificate of Non-Coverage (CNC) or an Environmental Compliance Certificate (ECC)—is critical for any agarwood production as Agricultural Plantation, clearing the ownership of the property for plantation. This clearance ensures that your operations are environmentally sound, legally compliant, and eligible for permits and expansion.
- File your CNC/ECC with the Environmental Management Bureau (EMB) in your regional DENR office.
- With Certified True Copy of Land Title (TCT) / CLOA
- With Lease Contract (if applicable)
- With Site Development Plan (SDP) from a licensed Architect/Engineer
Step 5: Apply for a Wildlife Culture Permit (WCuP)
- To legally cultivate and commercially trade agarwood (Aquilaria malaccensis), you must apply for a Wildlife Culture Permit (WCuP) from the DENR Regional Field Office, as mandated by RA 9147 (Wildlife Act).
Step 6: Agarwood Inoculation & Harvesting Timeline
- 3rd Year: Initial random inoculation testing using DLSU-developed inoculum technology.
- 4th/5th Year: First harvest of random inoculated trees.
Step 7: Product Testing & Market Entry
- To submit Agarwood (Chips) products to the Bureau of Philippine Standards (BPS) for quality testing — a critical step for building buyer trust and commanding premium pricing.
- Testing results will be shared with potential buyers for pricing considerations.
Step 8: CITES Export clearance
- CITES Export Clearance is a regulatory requirement for trading wildlife and plant species listed under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). This process is managed by the Biodiversity Management Bureau (BMB) of the Department of Environment and Natural Resources (DENR).
- To legally export Agarwood or any product derived from Aquilaria spp., CITES Export Clearance and Product Export Clearance are mandatory.