These Regulations are enacted pursuant to the provisions of the third paragraph of Article 15 of the Forestry Act (hereinafter "Act").

The disposition of the forest products of a state-owned forest (hereinafter briefly "forest products") shall be conducted by the relevant managing administration.

Forest products are divided into two types:
1.Main products, including unrefined, withered, lodging bamboos/trees and the remaining roots of plants and remnant materials.
2.By-products, including barks, pitch, seeds/fruits, fallen twigs, leaves, shrubs/vines, bamboo shoots, grass, fungi and forest products other than the main products.

The managing administration shall conduct disposition of the forest products by way of
1.Direct distribution which is by directly cutting and harvesting the forest products in accordance with the management plan for the state-owned forest business area concerned.
2.Bidding which is by announcing an invitation to bid for the cutting and harvesting of the designated area in accordance with the management plan for the state-owned forest business area concerned.
3.Special approval where disposition by way of bidding is not appropriate.

The managing administration shall prescribe the annual cutting/harvesting plan each year in accordance with the management plan for each state-owned forest business area concerned and submit the same up to the National Principal Authority ("NPA") for approval, announcement and implementation. The same shall govern in case of an adjustment or change of such annual plan.
The annual cutting/harvesting plan provided in the preceding paragraph shall indicate the location of the cutting/harvesting site, the area, tree species and the operation method.
Where it is difficult to restore/reforest the forest land or where cutting and harvesting is likely to frustrate the relevant soil and water conversation, no disposition of the bamboos and trees shall be conducted.
The density of the roadways, operation paths built for conducting disposition of forest products and the operation method shall be properly controlled. Where the forest land area concerned is considerable in size, a separation protective belt area shall be set up.

The National Property Administration shall prescribe the cutting/harvesting plan for each state-owned forest under its administration and management and for each state-owned forest located within the aboriginal reservation land in accordance with the above provisions and the designated purposes of management of such forests.

Prior to conducting the disposition of forest products, the relevant managing administration shall dispatch personnel to conduct an on-site check to identify the location, area, tree species, timber volume, and production conditions and may designate personnel to conduct re-checks.
Thinning cutting for reforestation/cultivation purposes may be exempt from the timber volume check except where the trees harvested from the thinning cutting are valuable for utilization, in which case the relevant managing administration may account the actual timber volume and move the same for utilization.

Except as otherwise provided in the relevant cutting and harvesting contract, no root of the forest products may be cut and harvested.
The roots of plants and remnant materials remained as a result of the disposition shall in principle not be harvested.