Prohibiting the Commercial Importation of Used Clothing and Rags

Senate Office of the forcretary TWENTIETH CONGRESS OF THE ) 25 NOV 17 P2:42 REPUBLIC OF THE PHILIPPINES First Regular Session RECEIVED BY SENATE S. No. 1526 Introduced by Senator Raffy T. Tulfo AN ACT REPEALING REPUBLIC ACT NO. 4635 OR "AN ACT TO SAFEGUARD THE HEALTH OF THE PEOPLE AND MAINTAIN THE DIGNITY OF THE NATION BY DECLARING IT A NATIONAL POLICY TO PROHIBIT THE COMMERCIAL IMPORTATION OF TEXTILE ARTICLES COMMONLY KNOWN AS USED CLOTHING AND RAGS," SETTING NATIONAL POLICIES ON THE COMMERCIAL IMPORTATION OF USED TEXTILES, AND FOR OTHER PURPOSES EXPLANATORY NOTE The concept of the term "Ukay-Ukay" is an age-old tradition that refers to a type of retail business dealing in second-hand clothing, bags, and other accessories which are sold at a cheap price. This type of business originated from when the Salvation Army sent humanitarian assistance by sending imported second hand goods to victims of the calamities in the 1980s. The aforementioned items were then accumulated and bought in bulk by traders who sold the same at low prices to low-income earners, but due to the heightened popularity of the business and vintage clothing, ukay-ukay is now also patronized by the new generation.

To protect the health of the general public, Republic Act No. 4653, also known as "An Act to Safeguard the Health of the People and Maintain the Dignity of the Nation by Declaring it a National Policy to Prohibit the Commercial Importation of Textile Articles Commonly Known as Used Clothing or Rags," was enacted in 1966, thereby making the importation of second-hand clothing illegal. Although products like these remain prohibited, there continues to be a proliferation of the ukay-ukay business. In February 2025, the National Bureau of Investigation (NBI) seized 228 bales of smuggled secondhand clothing worth Php752,400.1 Furthemore, the Operatives of the Criminal Investigation and Detection Group (CIDG) have seized Php46 million worth of smuggled secondhand clothes from Bulacan in the same year.? Consequently, there is a need to repeal the law relating to the sale of imported used clothing by ukay-ukay stores due to the ineffective implementation of the existing ban and to enable the government to properly regulate the industry. However, the "Ukay-Ukay" industry not only has evolved as part of our culture, but has also grown into a revenue-generating industry amounting to P18 billion, 3 creating jobs for many Filipinos. The proposed measure aims to repeal Republic Act No. 4653, legalize and regulate the importation of second-hand clothing used clothing and other goods, thereby legitimizing the underground sector, ensuring its registration, and enabling proper auditing of revenues by the appropriate government agencies. It is for this purpose that the approval of this bill is earnestly sought. RAFFY T. TULFO jag 1 https://www.sunstar.com.ph/cebu/probe-on-ukay-ukay-ongoing#google_vignette 2 https://www.pna.gov.ph/articles/1241468 3https://newsinfo.inquirer.net/1648216/ukay-ukay-market-potential-spurs-move-to-repeal-law-banning-its- import/amp

Senate Bilice of the Beretaup TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES 25 NOV 17 P2:42 First Regular Session RECEIVED BY: SENATE S. No. 1526 Introduced by Senator Raffy T. Tulfo AN ACT REPEALING REPUBLIC ACT NO. 4635 OR "AN ACT TO SAFEGUARD THE HEALTH OF THE PEOPLE AND MAINTAIN THE DIGNITY OF THE NATION BY DECLARING IT A NATIONAL POLICY TO PROHIBIT THE COMMERCIAL IMPORTATION OF TEXTILE ARTICLES COMMONLY KNOWN AS USED CLOTHING AND RAGS," SETTING NATIONAL POLICIES ON THE COMMERCIAL IMPORTATION OF USED TEXTILES, AND FOR OTHER PURPOSES. Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

SECTION 1. Republic Act No. 4653, or "AN ACT TO SAFEGUARD THE HEALTH

OF THE PEOPLE AND MAINTAIN THE DIGNITY OF THE NATION BY DECLARING IT A NATIONAL POLICY TO PROHIBIT THE COMMERCIAL IMPORTATION OF TEXTILE ARTICLES COMMONLY KNOWN AS USED CLOTHING AND RAGS" is hereby repealed.

Sec. 2. No repeal of the Revised Penal Code. - This Act does not in any manner

6 repeal, amend or modify the provisions of the Revised Penal Code, as amended.

Sec. 3. Health standards. - In the interest of public health, the Department of

Health shall determine the health standards and prerequisites for importing and 9 distributing used textile articles commonly known as used clothing and rags.

Sec. 4. Tariffs. - The Tariff Commission, in consultation with the relevant

agencies, shall determine the proper tariff line for used textile articles commonly known as used clothing and rags.

Sec. 5. Disposition of smuggled used textiles. - The Bureau of Customs and the

2 Department of Social Welfare and Development shall determine the disposition of imports of used textiles seized for violations of the Customs Modernization and Tariff 4 Act, as amended, and other applicable laws, rules, and regulations.

Sec. 6. Implementing Rules and Regulations. - The Bureau of Customs, the

6 Tariff Commission, the Department of Health, and the Department of Social Welfare 7 and Development shall issue the rules and regulations necessary for the implementation of this Act.

Sec. 7. Separability Clause. - If any provision of this Act is subsequently

10 declared invalid or unconstitutional, the other provisions hereof which are not affected thereby shall remain in full force and effect.

Sec. 8. Repealing Clause. - All other laws, executive orders, rules and

regulations, or parts thereof inconsistent with any provisions hereof are hereby repealed or modified accordingly.

Sec. 9. Effectivity clause. - This Act shall take effect fifteen (15) days after its

publication in two (2) national newspapers of general circulation. Approved,