Legalizing 'ukay-ukay' raised in Senate as Raffy Tulfo questions untaxed used clothes sold in market

At least two senators on Tuesday raised the possibility of legalizing the commercial importation of "ukay-ukay" or secondhand clothes after Senator Raffy Tulfo said small-time sellers are obliged to pay taxes while the importers are not paying their duties with the Bureau of Customs (BOC).

During the hearing of the Senate Ways and Means Committee, Tulfo said he has received complaints from a blogger and an online seller who were both visited by agents of the Bureau of Internal Revenues (BIR) to inquire about their tax payments.

Tulfo said the tax-collecting agencies should go after the big fish instead.

Although he said he has nothing against small-time "ukay-ukay" sellers, Tulfo said the importation of these goods for commercial sale is prohibited under the law.

"'Di po ba ang ukay-ukay ay bawal po 'yan? Nasa batas po natin 'yan. Dapat po hindi tayo nagbebenta ng mga ukay-ukay dahil ang mga ukay-ukay po ay 'yan ay mga secondhand dapat po donations yan dumidiretso yan sa DSWD (Department of Social Welfare and Development). Di ho ba tama? [Do] you agree with me?" Tulfo asked.

Customs Deputy Commissioner Edward James Buco agreed that the importation of used clothes is prohibited but he explained that even the Department of Social Welfare and Development (DSWD) also has this policy not to receive "ukay-ukay" clothes.

Tulfo then grilled Buco over the rampant importation of the goods despite the national policy against it.

"So why in the heck tumingin ka sa kaliwa't kanan. Sa Luzon, Visayas, Mindanao nagkakalat ang mga ukay-ukay? So ano po ang ginagawa ng Bureau of Customs? Bakit nakalusot itong mga ukay-ukay?" he asked.

The Customs official tried to explain that they are implementing measures against smuggling of used clothes but the smugglers are becoming "more innovative."

Tulfo, however, disagreed with Buco.

"I dont think so. Sorry, Mr. Buco. Gumala lang po kayo diyan sa mga kanto, sa mga kalye. Diyan sa Divisora, Baclaran, kahit saang sulok ngayon marami na ang ukay-ukay. Ano ba kayo bulag? I'm sorry for the word again," the senator said.

"Ang pinag-uusapan po natin dito hindi ginagawa ata ng Bureau of Customs ang kanilang trabaho... Siguro po 'yung mga maliliit huwag na ho nating hulihin. Siguro sitahin lang saan galing ito? Sino ang nagparating nito? Sino ang importer? Sino ang consignee? etcetera. Eh palagay ko po hindi na tinatanong dahil ang consignee ay 'friendship' na," Tulfo went on.

Buco said they have already seized several shipments of used clothes and they already filed cases against those involved, but Tulfo insisted that these secondhand textiles are still "rampant" in the market.

The Customs official also vowed to intensify the bureau's efforts against the smuggling of used clothes.

Senator Sherwin Gatchalian, who presided over the hearing as chairman of the panel, said he was not aware of the law prohibiting the importation of secondhand clothes.

Republic Act 4653 prohibits the commercial importation of textile articles, usually used clothing and rags.

Gatchalian recalled his time as mayor of Valenzuela City where he saw small "ukay-ukay" shops.

Gatchalian suggested to the BOC to cooperate with the local government units in implementing the policy because most people are not aware of the law.

"The local governments might not be informed that this type of operations [is] not within the bounds of the law," he said.

At this point, Tulfo suggested legalizing commercial importation if the BOC can no longer prohibit it.

"Siguro since hindi kayang kontrolin ng Bureau of Customs 'yung pagpasok ng ukay-ukay, siguro we have to come up with the system na, I don't know, legalize ukay-ukay," he said.

"Dahil sa ngayon wala pong binabayad na buwis ang ukay-ukay, tama [o] mali? Di 'ba wala po ni singkong duling? So kung wala siyang binabayad na singkong duling na buwis eh bakit po nagbebenta sya't pinagkakitaan? Siguro it's about time to revisit kung 'di niyo po kayang pigilan," he went on.

Gatchalian also agreed to revisit the law, explaining that the government cannot blame the small-time "ukay-ukay" sellers as they might not be aware that this is illegal and most of them are even paying for their business permits.

"It's about time to revisit this law. Like I said, we cannot fault the retailers for selling ukay-ukay because I don't think that they know it's illegal," Gatchalian said.

Gatchalian asked the BOC to give their comments on their proposal and specify the provisions of RA 4653 that should be revisited. —KBK, GMA News