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SIXTEENTH CONGRESS ) fs RECEIVED a
REPUBLIC OF THE PHILIPPINES ) ype Q4 MAR 204 \
First Regular Session ) { —EphPy |

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HOUSE OF REPRESENTATIVES
Introduced by Representative Rufus B. Rodriguez anid“
Representative Maximo B. Rodriquez, Jr. i:

House Bill No, 4055

EXPLANATORY NOTE

Sec 1 of Republic Act No, 4653 states that, “It shall be unlawful for any person,
association or corporation to introduce into any point in the Philippines textile articles
commonly known as used clothing and rags...”

However, despite this clear provision of the law, Bureau of Customs (BOC) has
estimated that 1,000 container vans of used garments arrive in the country every year.
These used garments enter the country illegally and are therefore not taxed which means
loss of profit for the government, He further stated that if importation of used garments is
finally allowed, it could earn the country an estimated P700 million in taxes and duties
annually.

The BOC also questions the fact that a law is in place banning the importation of
second hand apparel but every time there is a calamity, a letter from the Department of
Social Welfare and Development comes requesting that these items be given to typhoon
victims.

Aside from these, the ukay-ukay business has helped create jobs for thousands of
Filipinos. If you assume that there are 5,000 outlets and for each outlet there are four
persons, that translates to jobs for 20,000 people.

In view of the foregoing, immediate passage of this bill is eamestly requested.

‘

RUFUS B. RODI E:

wun lrms JR.


SIXTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriquez and
Representative Maximo B. Rodriguez, Jr.

House Bill No, 4055

AN ACT
LEGALIZING THE IMPORTATION OF SECOND-HAND OR USED CLOTHING AND RAGS
INTO THE PHILIPPINES, REPEALING, FOR THAT PURPOSE, REPUBLIC ACT 4653,
OTHERWISE 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 AND RAGS”

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

SECTION 1. Republic Act No. 4653 is hereby expressly repealed by this Act.

SEC. 2, It is hereby mandated that used clothing and other apparel shall be taxed at the
following rates:

Clothing, clothing accessories, traveling rugs and blankets, household linen and
furnishing articles of textile materials, footwear and headgear of any material,
showing signs of appreciable wear and imported in bulk, bales, sacks or similar
bulk packings

‘A. Clothing | adval. 36%
B. Others ad val. 40%

SEC. 3. Separability Clause. - If any provision or part hereof, is held invalid or
unconstitutional, the remainder of the law or the provisions not otherwise affected shall
remain valid and subsisting.

SEC. 4. Repealing Clause. — Any law, presidential decree or issuance, executive order,
letter of instruction, administrative order, rule or regulation contrary to or inconsistent with the
provisions of the Act is hereby repealed, modified, or amended accordingly

SEC. 5. Effectivity Clause. - This Act shall take effect fifteen (15) days after its publication
in at least two (2) newspapers of general circulation

Approved,