March 19, 2003
DAR OPINION NO. 03-03
Atty. Victor L. Reyes
Senior Assistant-Vice President
JAMAICA Realty and Marketing Corporation
2nd Floor, DMG Bldg.,
Peñafrancia Ave., Naga City
Dear Atty. Reyes:
This refers to your letter-request for clarification dated 11 February 2002 where you posed the following issue:
"Whether the exemption clearance which reacts as follows, "Order is hereby issued EXEMPTING the abovementioned landholding from CARP coverage pursuant to DOJ Opinion No. 44, series of 1990 as implemented by DAR Administrative Order No. 6, series of 1994", granted by the DAR for landholdings reclassified before June 18, 1988 (sic) has the same nature and effect as conversion clearance issued to landholding reclassified after June 18, 1988 (sic)."
Item II, 2nd paragraph of DAR Administrative Order No. 06, series of 1994 (Guidelines for the Issuance of Exemption Clearance Based on Sec. 3 (c) of R.A. No. 6657 and the Department of Justice (DOJ) Opinion No. 44, series of 1990) provides, that:
"The Department of Justice Opinion No. 44, series of 1990 has ruled that with respect to the conversion of agricultural lands covered by R.A. No. 6657 to non-agricultural uses, the authority of the DAR to approve such conversion may be exercised from the date of its effectivity, on June 15, 1988. Thus, all lands are already classified as commercial, industrial or residential before 15 June 1988 no longer need any conversion clearance." (emphasis supplied)
Section 3.4 of DAR Administrative Order No. 1, series of 2002 (2002 Comprehensive Land Use Conversion) further provides:
"Section 3. Applicability of Rules. — These guidelines shall apply to all applications for conversion, from agricultural to non-agricultural uses or to another agricultural use, such as:
xxx xxx xxx
3.4. Conversion of agricultural lands or areas that have been reclassified by the LGU or by way of a Presidential Proclamation, to residential, commercial, industrial, or other non-agricultural uses on or after the effectivity of R.A. No. 6657 on 15 June 1988, pursuant to Section 20 of R.A. No. 7160, and other pertinent laws and regulations, and are to be converted to such uses. However, for those reclassified prior to 15 June 1988, the guidelines in securing an exemption clearance from the DAR shall apply." (emphasis supplied)
Given the above, we submit that, on one hand, exemption clearance/order issued pursuant to DOJ Opinion No. 44, series of 1990 differs from a conversion order/clearance. Said exemption clearance or order stems from a petition/application filed pursuant to the requirements, rules, conditions and procedures laid down under DAR Administrative Order No. 06, series of 1994, while a conversion clearance or order is based on an application filed pursuant to the requirements, rules, conditions and procedures detailed under DAR Administrative Order No. 01, series of 2002. Section 23 of DAR Administrative Order No. 01, series of 2002 enumerates the effects of approval of Conversion which are not necessarily the effects of an approval of Exemption pursuant to DOJ 44 or Section 3 (c) of R.A. No. 6657:
"SEC. 34. Effects of Approval of Conversion. — The approval of an application for conversion shall have, but shall not be limited to, the following effects:
34.1 It shall be limited to the specific use of the land authorized in the conversion order;
34.2 It shall be subject to the schedule indicated in the detailed site development plan and work and financial plan, but in no case shall the period of development extend beyond five (5) years from issuance of the conversion order except as authorized by the Secretary or the approving official on meritorious grounds . . . . .
34.3 The conditions thereof shall be binding upon successors-in-interest of the property;
34.4 The applicant shall allow duly authorized representatives of DAR free and unhampered access to the property subject of the conversion order in order to monitor compliance with the terms and conditions thereof;
34.5 The use authorized in the order of conversion shall be annotated on the title of the subject property; and
34.6 It shall be without prejudice to ancestral domain claims of indigenous peoples, if any, pursuant to Republic Act No. 8371 or the "Indigenous Peoples Rights Act".
On the other hand, exemption from CARP coverage pursuant to DOJ Opinion No. 44, series of 1990 as implemented by DAR Administrative Order No. 6, series of 1994 may be deemed to partake, in effect, of the nature of a conversion of agricultural lands to non-agricultural use since said lands reclassified as non-agricultural prior to 15 June 1988 are no longer deemed agricultural and covered by CARP pursuant to DOJ Opinion No. 44, series of 1990 and Sections 3 (c) and 4 of R.A. No. 6657. In both instances, said exemption and conversion exempt or remove the lands subject thereof from CARP coverage except that in the case of conversion, if a conversion order is revoked or withdrawn, the lands subject thereof shall revert to the status of agricultural lands and shall be subject to CARP coverage as circumstances may warrant (Section 49, DAR Administrative Order No. 1, series of 2002).
It should be stressed, however, that in order that an exemption clearance/order may be deemed as of the same nature and effect as a conversion clearance/order, said exemption order or clearance should have been issued on the basis of a duly filed application for exemption and approved on the merits by the DAR Secretary pursuant to the provisions of DAR Administrative Order No. 6, series of 1994, since exemption is not automatic.
Moreover, it bears noting that aforesaid exemption does not include or contemplate exemption orders or clearances issued not in pursuance of DOJ 44 or Section 3 (c) of R.A. No. 6657 in relation to DAR Administrative Order No. 6, series of 1994 such as those exempted pursuant to DAR Administrative Order No. 13, series of 1990 (Section 10, R.A. No. 6657 as amended), DAR Administrative Order No. 9, series of 1993 (Livestock, Poultry and Swine) and DAR Administrative Order No. 3, series of 1995 (Fishponds and Prawn Farms). The lands under the latter-enumerated exemptions may revert to agricultural if they are no longer actually, directly and exclusively used for the purpose for which they were exempted. Thus, they would still necessitate a conversion clearance should they later be converted to other non-agricultural uses such as residential, commercial or industrial.
On the other hand, in the case of reclassified lands duly exempted pursuant to DOJ 44, series of 1990 and Section 3 (c) of R.A. No. 6657 in relation to DAR Administrative Order No. 6, series of 1994, it is explicit in the abovequoted provisions of DAR rules and regulations on exemption/conversion that they no longer need any conversion clearance. An exemption order to that effect suffices. EIAHcC
We hope to have clarified the matter.
Very truly yours,
(SGD.) RICARDO S. ARLANZA
Undersecretary for Policy, Planning and Legal Affairs Office