Section 12
of Forest Rules 1969 Reprinted 1995
Section 12
(1)
All forest produce cut, sawn, converted, collected or removed under any licence or licence agreement shall be liable to royalty at the rates prescribed in Part A Schedule II.
(2)
The Chief Conservator or any forest officer authorised by him in this behalf may wholly or partially exempt any forest produce from royalty or remit any royalty already paid on any forest produce –
(a)
where such forest produce has not been removed from the area to which the licence or licence agreement refers and has been declared by a forest officer not below the rank of Forest Ranger to be unsaleable or of inferior quality by reasons of its condition or situation;
(b)
where such forest produce has been or will be processed in any sawmill or veneer, plywood or other mill established in Sabah;
Provided that any remission granted shall not result in the payment of a lesser rate than that prescribed for the particular category of timber in Schedule II;
(c)
for any other reason, with the approval of the Minister of Finance.
(3)
With the general or special approval of the Minister of Finance the Chief
Conservator may impose any fee, premium, cess and other charges in addition to, or in lieu of, royalty for the right to take forest produce under a licence or a licence agreement.