DTI to stop sale of 'ukay-ukay'

MANILA, Philippines - The Department of Trade and Industry (DTI) announced they will help stop the popular ukay-ukay or the sale of imported second hand clothes because it is against the law.

“We are against the ukay-ukay because it is an illegal activity,” Trade Secretary Gregory L. Domingo said. “They are mostly fly by night operators.”

Domingo said they have never given any licenses and permits to these illegal vendors and that the permits that these people are using were given by the local government units (LGUs).

However, Domingo clarified that because ukay-ukay sells primarily smuggled goods, the issue is more under the Bureau of Customs.

In a separate statement, the Federation of Philippine Industries (FPI) said domestic manufacturers were alarmed by the pronouncement of Customs Commissioner Angelito Alvarez that he is espousing the legalization of ukay-ukay so the government can generate tax revenues from them.

FPI said Alvarez’ statements will just embolden the smugglers of ukay-ukay to continue bringing in used clothes for commercial use despite the expressed prohibition in laws, and also further dissuade investments in the textile and garments industry that is now on the verge of collapse.

Importation of used clothes for commercial purposes is expressly prohibited under RA 4653. The law 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.” Therefore, FPI chairman Jesus L. Arranza said that even if the destination is a special economic zone, it is still prohibited because ecozones are still part and parcel of the Philippines and are only designated as non-customs territory.

“With the pronouncement of Commissioner Alvarez, these smugglers of ukay-ukay might think that legalizing the commercial importation of used clothing no longer needs congressional action to amend the law,” Arranza said.