This paper provides the legal and institutional context of MFPC as a supplement to the original paper of the same title (Cruz and Tapia, 2005). Specifically, the legal and institutional framework of legitimate harvesting and transport of timber resources are described. Information on the process of authorising and monitoring timber harvesting operations and how the relevant laws and regulations are enforced are covered. The paper also explores the likely impacts of MFPC actions on the life and welfare of upland communities whose livelihoods could be adversely affected if illegal logging stops.