YES

Problem 1: 

(VAR v_NonEmpty:S f:S x:S y:S ys:S)
(RULES
app(app(app(filtersub,ffalse),f:S),app(app(cons,y:S),ys:S)) -> app(app(filter,f:S),ys:S)
app(app(app(filtersub,ttrue),f:S),app(app(cons,y:S),ys:S)) -> app(app(cons,y:S),app(app(filter,f:S),ys:S))
app(app(filter,f:S),app(app(cons,y:S),ys:S)) -> app(app(app(filtersub,app(f:S,y:S)),f:S),app(app(cons,y:S),ys:S))
app(app(filter,f:S),nil) -> nil
app(app(neq,app(s,x:S)),app(s,y:S)) -> app(app(neq,x:S),y:S)
app(app(neq,app(s,x:S)),0) -> ttrue
app(app(neq,0),app(s,y:S)) -> ttrue
app(app(neq,0),0) -> ffalse
nonzero -> app(filter,app(neq,0))
)

Problem 1: 

Innermost Equivalent Processor:
-> Rules:
 app(app(app(filtersub,ffalse),f:S),app(app(cons,y:S),ys:S)) -> app(app(filter,f:S),ys:S)
 app(app(app(filtersub,ttrue),f:S),app(app(cons,y:S),ys:S)) -> app(app(cons,y:S),app(app(filter,f:S),ys:S))
 app(app(filter,f:S),app(app(cons,y:S),ys:S)) -> app(app(app(filtersub,app(f:S,y:S)),f:S),app(app(cons,y:S),ys:S))
 app(app(filter,f:S),nil) -> nil
 app(app(neq,app(s,x:S)),app(s,y:S)) -> app(app(neq,x:S),y:S)
 app(app(neq,app(s,x:S)),0) -> ttrue
 app(app(neq,0),app(s,y:S)) -> ttrue
 app(app(neq,0),0) -> ffalse
 nonzero -> app(filter,app(neq,0))
-> The term rewriting system is non-overlaping or locally confluent overlay system. Therefore, innermost termination implies termination.
 

Problem 1: 

Dependency Pairs Processor:
-> Pairs:
 APP(app(app(filtersub,ffalse),f:S),app(app(cons,y:S),ys:S)) -> APP(app(filter,f:S),ys:S)
 APP(app(app(filtersub,ttrue),f:S),app(app(cons,y:S),ys:S)) -> APP(app(cons,y:S),app(app(filter,f:S),ys:S))
 APP(app(app(filtersub,ttrue),f:S),app(app(cons,y:S),ys:S)) -> APP(app(filter,f:S),ys:S)
 APP(app(filter,f:S),app(app(cons,y:S),ys:S)) -> APP(app(app(filtersub,app(f:S,y:S)),f:S),app(app(cons,y:S),ys:S))
 APP(app(filter,f:S),app(app(cons,y:S),ys:S)) -> APP(app(filtersub,app(f:S,y:S)),f:S)
 APP(app(filter,f:S),app(app(cons,y:S),ys:S)) -> APP(filtersub,app(f:S,y:S))
 APP(app(filter,f:S),app(app(cons,y:S),ys:S)) -> APP(f:S,y:S)
 APP(app(neq,app(s,x:S)),app(s,y:S)) -> APP(app(neq,x:S),y:S)
-> Rules:
 app(app(app(filtersub,ffalse),f:S),app(app(cons,y:S),ys:S)) -> app(app(filter,f:S),ys:S)
 app(app(app(filtersub,ttrue),f:S),app(app(cons,y:S),ys:S)) -> app(app(cons,y:S),app(app(filter,f:S),ys:S))
 app(app(filter,f:S),app(app(cons,y:S),ys:S)) -> app(app(app(filtersub,app(f:S,y:S)),f:S),app(app(cons,y:S),ys:S))
 app(app(filter,f:S),nil) -> nil
 app(app(neq,app(s,x:S)),app(s,y:S)) -> app(app(neq,x:S),y:S)
 app(app(neq,app(s,x:S)),0) -> ttrue
 app(app(neq,0),app(s,y:S)) -> ttrue
 app(app(neq,0),0) -> ffalse
 nonzero -> app(filter,app(neq,0))

Problem 1: 

SCC Processor:
-> Pairs:
 APP(app(app(filtersub,ffalse),f:S),app(app(cons,y:S),ys:S)) -> APP(app(filter,f:S),ys:S)
 APP(app(app(filtersub,ttrue),f:S),app(app(cons,y:S),ys:S)) -> APP(app(cons,y:S),app(app(filter,f:S),ys:S))
 APP(app(app(filtersub,ttrue),f:S),app(app(cons,y:S),ys:S)) -> APP(app(filter,f:S),ys:S)
 APP(app(filter,f:S),app(app(cons,y:S),ys:S)) -> APP(app(app(filtersub,app(f:S,y:S)),f:S),app(app(cons,y:S),ys:S))
 APP(app(filter,f:S),app(app(cons,y:S),ys:S)) -> APP(app(filtersub,app(f:S,y:S)),f:S)
 APP(app(filter,f:S),app(app(cons,y:S),ys:S)) -> APP(filtersub,app(f:S,y:S))
 APP(app(filter,f:S),app(app(cons,y:S),ys:S)) -> APP(f:S,y:S)
 APP(app(neq,app(s,x:S)),app(s,y:S)) -> APP(app(neq,x:S),y:S)
-> Rules:
 app(app(app(filtersub,ffalse),f:S),app(app(cons,y:S),ys:S)) -> app(app(filter,f:S),ys:S)
 app(app(app(filtersub,ttrue),f:S),app(app(cons,y:S),ys:S)) -> app(app(cons,y:S),app(app(filter,f:S),ys:S))
 app(app(filter,f:S),app(app(cons,y:S),ys:S)) -> app(app(app(filtersub,app(f:S,y:S)),f:S),app(app(cons,y:S),ys:S))
 app(app(filter,f:S),nil) -> nil
 app(app(neq,app(s,x:S)),app(s,y:S)) -> app(app(neq,x:S),y:S)
 app(app(neq,app(s,x:S)),0) -> ttrue
 app(app(neq,0),app(s,y:S)) -> ttrue
 app(app(neq,0),0) -> ffalse
 nonzero -> app(filter,app(neq,0))
->Strongly Connected Components:
->->Cycle:
->->-> Pairs:
 APP(app(neq,app(s,x:S)),app(s,y:S)) -> APP(app(neq,x:S),y:S)
->->-> Rules:
 app(app(app(filtersub,ffalse),f:S),app(app(cons,y:S),ys:S)) -> app(app(filter,f:S),ys:S)
 app(app(app(filtersub,ttrue),f:S),app(app(cons,y:S),ys:S)) -> app(app(cons,y:S),app(app(filter,f:S),ys:S))
 app(app(filter,f:S),app(app(cons,y:S),ys:S)) -> app(app(app(filtersub,app(f:S,y:S)),f:S),app(app(cons,y:S),ys:S))
 app(app(filter,f:S),nil) -> nil
 app(app(neq,app(s,x:S)),app(s,y:S)) -> app(app(neq,x:S),y:S)
 app(app(neq,app(s,x:S)),0) -> ttrue
 app(app(neq,0),app(s,y:S)) -> ttrue
 app(app(neq,0),0) -> ffalse
 nonzero -> app(filter,app(neq,0))
->->Cycle:
->->-> Pairs:
 APP(app(app(filtersub,ffalse),f:S),app(app(cons,y:S),ys:S)) -> APP(app(filter,f:S),ys:S)
 APP(app(app(filtersub,ttrue),f:S),app(app(cons,y:S),ys:S)) -> APP(app(filter,f:S),ys:S)
 APP(app(filter,f:S),app(app(cons,y:S),ys:S)) -> APP(app(app(filtersub,app(f:S,y:S)),f:S),app(app(cons,y:S),ys:S))
 APP(app(filter,f:S),app(app(cons,y:S),ys:S)) -> APP(f:S,y:S)
->->-> Rules:
 app(app(app(filtersub,ffalse),f:S),app(app(cons,y:S),ys:S)) -> app(app(filter,f:S),ys:S)
 app(app(app(filtersub,ttrue),f:S),app(app(cons,y:S),ys:S)) -> app(app(cons,y:S),app(app(filter,f:S),ys:S))
 app(app(filter,f:S),app(app(cons,y:S),ys:S)) -> app(app(app(filtersub,app(f:S,y:S)),f:S),app(app(cons,y:S),ys:S))
 app(app(filter,f:S),nil) -> nil
 app(app(neq,app(s,x:S)),app(s,y:S)) -> app(app(neq,x:S),y:S)
 app(app(neq,app(s,x:S)),0) -> ttrue
 app(app(neq,0),app(s,y:S)) -> ttrue
 app(app(neq,0),0) -> ffalse
 nonzero -> app(filter,app(neq,0))


The problem is decomposed in 2 subproblems.

Problem 1.1: 

Subterm Processor:
-> Pairs:
 APP(app(neq,app(s,x:S)),app(s,y:S)) -> APP(app(neq,x:S),y:S)
-> Rules:
 app(app(app(filtersub,ffalse),f:S),app(app(cons,y:S),ys:S)) -> app(app(filter,f:S),ys:S)
 app(app(app(filtersub,ttrue),f:S),app(app(cons,y:S),ys:S)) -> app(app(cons,y:S),app(app(filter,f:S),ys:S))
 app(app(filter,f:S),app(app(cons,y:S),ys:S)) -> app(app(app(filtersub,app(f:S,y:S)),f:S),app(app(cons,y:S),ys:S))
 app(app(filter,f:S),nil) -> nil
 app(app(neq,app(s,x:S)),app(s,y:S)) -> app(app(neq,x:S),y:S)
 app(app(neq,app(s,x:S)),0) -> ttrue
 app(app(neq,0),app(s,y:S)) -> ttrue
 app(app(neq,0),0) -> ffalse
 nonzero -> app(filter,app(neq,0))
->Projection:
 pi(APP) = 2

Problem 1.1: 

SCC Processor:
-> Pairs:
 Empty
-> Rules:
 app(app(app(filtersub,ffalse),f:S),app(app(cons,y:S),ys:S)) -> app(app(filter,f:S),ys:S)
 app(app(app(filtersub,ttrue),f:S),app(app(cons,y:S),ys:S)) -> app(app(cons,y:S),app(app(filter,f:S),ys:S))
 app(app(filter,f:S),app(app(cons,y:S),ys:S)) -> app(app(app(filtersub,app(f:S,y:S)),f:S),app(app(cons,y:S),ys:S))
 app(app(filter,f:S),nil) -> nil
 app(app(neq,app(s,x:S)),app(s,y:S)) -> app(app(neq,x:S),y:S)
 app(app(neq,app(s,x:S)),0) -> ttrue
 app(app(neq,0),app(s,y:S)) -> ttrue
 app(app(neq,0),0) -> ffalse
 nonzero -> app(filter,app(neq,0))
->Strongly Connected Components:
 There is no strongly connected component

The problem is finite.

Problem 1.2: 

Subterm Processor:
-> Pairs:
 APP(app(app(filtersub,ffalse),f:S),app(app(cons,y:S),ys:S)) -> APP(app(filter,f:S),ys:S)
 APP(app(app(filtersub,ttrue),f:S),app(app(cons,y:S),ys:S)) -> APP(app(filter,f:S),ys:S)
 APP(app(filter,f:S),app(app(cons,y:S),ys:S)) -> APP(app(app(filtersub,app(f:S,y:S)),f:S),app(app(cons,y:S),ys:S))
 APP(app(filter,f:S),app(app(cons,y:S),ys:S)) -> APP(f:S,y:S)
-> Rules:
 app(app(app(filtersub,ffalse),f:S),app(app(cons,y:S),ys:S)) -> app(app(filter,f:S),ys:S)
 app(app(app(filtersub,ttrue),f:S),app(app(cons,y:S),ys:S)) -> app(app(cons,y:S),app(app(filter,f:S),ys:S))
 app(app(filter,f:S),app(app(cons,y:S),ys:S)) -> app(app(app(filtersub,app(f:S,y:S)),f:S),app(app(cons,y:S),ys:S))
 app(app(filter,f:S),nil) -> nil
 app(app(neq,app(s,x:S)),app(s,y:S)) -> app(app(neq,x:S),y:S)
 app(app(neq,app(s,x:S)),0) -> ttrue
 app(app(neq,0),app(s,y:S)) -> ttrue
 app(app(neq,0),0) -> ffalse
 nonzero -> app(filter,app(neq,0))
->Projection:
 pi(APP) = 2

Problem 1.2: 

SCC Processor:
-> Pairs:
 APP(app(filter,f:S),app(app(cons,y:S),ys:S)) -> APP(app(app(filtersub,app(f:S,y:S)),f:S),app(app(cons,y:S),ys:S))
-> Rules:
 app(app(app(filtersub,ffalse),f:S),app(app(cons,y:S),ys:S)) -> app(app(filter,f:S),ys:S)
 app(app(app(filtersub,ttrue),f:S),app(app(cons,y:S),ys:S)) -> app(app(cons,y:S),app(app(filter,f:S),ys:S))
 app(app(filter,f:S),app(app(cons,y:S),ys:S)) -> app(app(app(filtersub,app(f:S,y:S)),f:S),app(app(cons,y:S),ys:S))
 app(app(filter,f:S),nil) -> nil
 app(app(neq,app(s,x:S)),app(s,y:S)) -> app(app(neq,x:S),y:S)
 app(app(neq,app(s,x:S)),0) -> ttrue
 app(app(neq,0),app(s,y:S)) -> ttrue
 app(app(neq,0),0) -> ffalse
 nonzero -> app(filter,app(neq,0))
->Strongly Connected Components:
 There is no strongly connected component

The problem is finite.