‘Ukay-ukay’ entry pushed

MANILA, Philippines—With ukay-ukay (used clothing) shops doing brisk business in many cities, two lawmakers have revived moves to legalize their importation.

INQUIRER FILE PHOTO

Repealing the law against the commercial importation of used clothes and other items could generate taxes for the government and create more jobs,  according to Cagayan de Oro Rep. Rufus Rodriguez and his brother, Abante Mindanao Rep. Maximo Rodriguez.

The Rodriguez siblings recently filed a bill that would repeal Republic Act No. 4653 and allow the importation of used clothing and other items and set the tax rates for them.

Customs officials had broached a similar idea in 2010, but business groups objected to it, saying it would kill the local textile and garments industry.

Ukay-ukay are sold at very low prices.

In their bill, the two lawmakers noted that despite a law against the importation of used clothing, customs officials estimate that some 1,000 containers of these items enter the country illegally every year.  Since the items are not taxed, the government loses money on them.

Should the trade become legal and taxable, the government could earn as much as P700 million a year, the siblings said, adding that their bill would propose a 35 percent ad valorem tax on used clothing and a 40 percent ad valorem tax on other second-hand items. Leila B. Salaverria

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