SENATOR Raffy Tulfo has proposed to legalize and regulate the importation of “ukay-ukay” or imported second-hand garments and goods which already evolved as part of the Filipino culture.
Tulfo filed Senate Bill (SB) 1778 that seeks to repeal Republic Act (RA) 4635, which prohibits the commercial importation of used clothing and rags.
Although the “ukay-ukay” business is deemed illegal pursuant to the aforesaid law, there has been a proliferation of the “ukay-ukay” business because of the ineffective implementation of the applicable law banning it. “The ‘ukay-ukay’ industry has evolved as part of Filipino culture. It goes without saying that the revenue-generating industry has generated jobs for our fellow Filipinos. However, it must be regulated by the proper government agencies to ensure its compliance with applicable laws,” read the bill’s explanatory note.
“Pursuant to the proposed bill, the P18 billion industry will no longer be an underground enterprise since it will be duly registered and its revenues audited for accountability by the proper government agencies,” it added.
It can be noted that prior to filing SB 1778 Tulfo had raised the idea of legalizing the commercial importation of “ukay-ukay” last year as he noted the failure of the Bureau of Customs (BOC) to control its influx in the country.
He then lamented that small-time sellers are obliged to pay taxes while the importers are not paying their duties with the BOC.
In filing the measure, Tulfo stressed the need to investigate the BOC and the Export Processing Zones Authority (Epza) to ensure that “ukay-ukay” will not be smuggled and misdeclared as used rags that are free of taxes and duties. To stop smuggling, he said that all locators in Epzas should have factories with proper machinery to process raw products/materials that will be re-exported and in turn generate money for the government.
Previous Customs investigation found that certain locators inside economic zones, like Bataan, Laguna, Cavite, Cagayan, Baguio, Clark and Subic Freeport zones, use their privilege to import raw materials tax free to smuggle used clothing in the guise of scrap fabric. These locators then sell the used clothing to dealers who then supply local “ukay-ukay” business owners. Tulfo likewise stressed the need to further consult the Department of Trade and Industry, the local garment manufacturers, and other stakeholders for their inputs to further improve his proposed law. (PR)