Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Fifteenth Congress
Second Regular Session

HOUSE BILL NO.. 5188

Introduced by Honorable REYNALDO V. UMALI

EXPLANATORY NOTE

Republic Act No.4653, entitled “An Act To Saf-guard 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” prohibits the commercial importation of textile articles
which are commonly known as used clothing and rags due to
sanitary and hygienic concerns, and also to maintain the dignity
of the nation. However, despite the existence of such law, the
selling of imported used clothing and apparel or relief clothes at a
cheaper price in the “ukayukay” market continues to proliferate
in the country. The booming ‘ukay-ukay” phenomenon also
threatens to stifle the local garments industry. Thus, the
imperative need to legalize the importation of used clothes in
order to generate revenue through the collection of import duties
and taxes.

This bill, therefore, seeks to regulate the commercial
importation of used clothing by imposing limitations that will
protect the health of the people and the welfare of local textile
manufacturers.

‘The proposed measure shall impose ad-valorem duties and
taxes and require that importation of used clothing be entered


through a customs house at a port of entry. Upon payment of
import duties along with other taxes and charges, the Bureau of
Customs shall release to the importers or consignees the
imported used clothing ready for sale in the local market.

The proposed bill likewise seeks to regulate and monitor
donations of used clothing to ensure that these articles are
exclusively and entirel the intended beneficiaries and do not

find their way in the open market.

In view of the foregoing, the passage of this bill is earnestly
sought.

Vv. UMALI


Republic of the Philippines

HOUSE OF REPRESENTATIVES
Quezon City, Metre Manila

Fifteenth Congress
Second Regular Session

HOUSE BILL NO. _ 5183

Introduced by Honorable REYNALDO V. UMALI

AN ACT

REGULATING THE COMMERCIAL IMPORTATION OF USED
CLOTHING, REPEALING FOR THE PURPOSE REPUBLIC ACT
NO. 4653, ENTITLED “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 the House of Representatives of
the Philippines in Congress assembled:

SECTION 1. | Short Title. - This Act shall be known as
the “Used Clothing Regulation Act.”

SEC. 2. Declaration of Policy. — It is the policy of the
State to promote the right of the health of the people and protect
the rights of workers and promote their welfare. Towards this
end, the State shali impose regulatory measures in the
commercial importation of used clothing.

SEC. 3. Importation of Used Clothing. - The commercial
importation of used clothing from any foreign country into the


Philippines, shall be allowed subject to payment of import duties
and taxes upon each importation.

There shall be levied, collected and paid on every
commercial importation of used clothing an ad valorem tax duty
equivalent to thirty percent (30%j based on the total value of the
goods: Provided, That the rate of the duty herein imposed shall be
subject to periodic investigation by the Tariff Commission and
may be revised by the President of the Philippines upon
recommendation of the National Economic and Development

Authority (NEDA).

An ad valorem tax equivalent to thirty percent (30%) based
on the total value of the goods used by the Bureau of Customs in
determining tariff and customs duties, shall be levied and
collected. Such tax shall be paid by the importer prior to the
release of such goods from customs custody.

For purposes of this Act, the term “used clothing’ refers to
second-hand apparel, materials, merchandise or other similar
items which includes, but not limited to, the following:

a Clothing;

b. Clothing accessories;

c. Travelling rugs and blankets;

d. Household linen and furnishing articles of textile

materials;

e. Footwear and headgear of any material.


SEC. 4. Exemption and Limitation. - The importations of
used clothing for the sole use of victims of natural calamities and
disasters caused by typhoon, fleod, volcanic eruption, famine,
conflagration and similar catastrephe shall be exempt from the
imposition of the taxes and duties subject to the following
conditions: :

a) The cargo or packing is clearly and visibly labeled as

“Donation” and “Not For Re-Sale;”

b) The recipient is a government agency, local government
unit, private cause-oriented group or non-governmental
organization (NGO} duly accredited by Department of
Social Welfare (DSWD); and

c) The consignee is the DSWD.

SEC. 5. Health Certification. - All importations under
this Act shall be released from the custody of the Bureau of
Customs subject to the prior inspection and issuance of health
and safety certification from the Department of Health (DOH).

SEC 6. Penal Provisions. — Any importer or consignee
found violating or causing another to violate any provision of this
Act or its implementing rules and regulations shall, upon
conviction thereof, be penalized as follows:

a. For failure to pay customs duties and taxes on
importations with an imposable duty of Two hundred
thousand pesos (P200,000.00} or less, the penalty
shall be imprisonment from six (6) months to six (6)


years or fine of not less than Five hundred thousand
pesos (P 500,000.00) but not more than One Million
pesos (P1,000,000.00), or both imprisonment and
fine, at the discretion of the court.

b. For failure to pay customs duties and taxes on
importations with an imposable duty of Two hundred
thousand pesos (P 200,000.00} but not exceeding One
Million pesos (P1,000,000.00), the penalty shall be
imprisonment from six (6) years to twelve (12) years or
fine of One Million pesos (P1,000,000.00) but not move
than Two Million pesos (P2,000,000.00), or both
imprisonment and fine, at the discretion of the court.

c. For failure to pay customs duties and taxes on
importations with an imposable duty of One Million
pesos (P1,000,000.00) and above, the penalty shall be
life imprisonment and fine of Two Million pesos
(P2,000,000.00) but not more than Three Million pesos
(P 3,000,000.00).

d. For importations which shall violate Sections 4 and 5
of this Act, the penalty shall be imprisonment of not
less than six (6) months to two (2) years or fine of One
hundred thousand pesos {P100,000.00) but not more
than Five hundred thousand pesos (P500,000.00), or
both imprisonment and fine, at the discretion of the
court. In case the violation is committed by


associations, partnerships, corporations or any
juridical person, the penalty shall be imposed on the
president, partner, general manager, treasurer and

employees responsible for the violation.

The used clothing imported in violation of this Act
shall be forfeited in favor of the government in accordance with

existing laws, rules and regulations.

Sec. 7. Implementing Rules and Regulations. — The
Secretary of Finance shall, in coordination with the DSWD and
DOH, promulgate rules and regulations for the effective
implementation of this Act and shall regularly monitor strict

compliance therewith.

SEC. 8. Repealing Clause. - Republic Act No. 4653,
entitled “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.
All other laws, decrees, orders, issuances, rules and regulations
which are inconsistent with the provisions of this Act are hereby
repealed, amended or modified accordingly.

SEC. 9. Separability Clause. — if, for any reason, any
provision of this Act, or any part thereof, is declared invalid or
unconstitutional, all other sections or provisions not affected

thereby shall remain in force and effect.


SEC. 10. 2ffectivity. — This Act shall take effect
fifteen (15} days after publication in the Official Gazette and in
two (2) newspapers of national circulation.

Approved,