Tulfo

Tulfo urges legalization of ‘ukay ukay’

February 3, 2023 Camille P. Balagtas 193 views

SENATOR Raffy Tulfo has filed a bill to legalize and regulate the importation of “ukay-ukay” or imported second-hand garments and goods, which have already evolved as part of Filipino culture.

Tulfo filed Senate Bill (SB) No. 1778 repealing Republic Act (RA) No. 4635, which prohibits the commercial importation of used clothing and rags.

Although “ukay-ukay” business is deemed illegal according to the said law, there has been a proliferation of the “ukay-ukay” business because of the ineffective implementation of the applicable law banning it.

He further noted that the revenue-generating industry had provided jobs for many Filipinos, and as such, it must be regulated by the appropriate government agencies to ensure its compliance with applicable laws.

“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,” Tulfo said in the explanatory note to the bill.

It can be noted that before filing SB 1778, Tulfo 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.

Tulfo 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 Bureau of Customs (BOC) and the Philippine Economic Zone 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 (DTI), the local garment manufacturers, and other stakeholders for their inputs to further improve his proposed bill.