FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES. )
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES

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

House Bill No. 341 i
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) Commissioner Angelito Alvarez 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.

Alvarez also questions the fact that a law is in place banning the
importation of second hand apparel but why is it that when we have a calamity,
here comes a letter from the Department of Social Welfare and Development
requesting that we give these to typhoon victims?” he said. “Isn't it that you are
more vulnerable to diseases if there is a calamity or a typhoon?”

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 translate to jobs for 20,000 people.

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

c

RUFYS B. RO! UEZ

MAXIMO B-: RODRIGUEZ, JR.


FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES

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

House Bill No, 34114

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 Republic Act No. 4653 is hereby expressly repealed by this Act.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 | ad val. 35%

|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,