Legalize and Regulate Ukay-Ukay Imports to Stop Smuggling, and Increase Tax Revenue

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The Issue

Dear Honorable Members of Congress and the Senate, We, the undersigned Filipino citizens, entrepreneurs, workers, and consumers, respectfully petition the Philippine Congress and Senate to review and amend Republic Act No. 4653, which currently prohibits the commercial importation of used clothing into the Philippines.

For many decades, the ukay-ukay industry has become an important part of the Philippine economy and culture. Millions of Filipinos rely on second-hand clothing as an affordable source of quality apparel, while thousands of small entrepreneurs depend on it for their livelihood. However, because the importation of used clothing remains illegal under current law, the industry operates in a legal gray area.

This situation creates several problems: 

1. Loss of Government Revenue Because imports are not legally recognized, the government loses potential customs duties, taxes, and business registrations that could generate billions of pesos in revenue annually.

2. Opportunities for Smuggling and Corruption The prohibition encourages illegal importation and smuggling, which increases corruption risks and deprives the government of legitimate tax income.

3. Impact on Small Businesses and Workers Thousands of Filipino families depend on the ukay-ukay trade for income, from importers and warehouse workers to market vendors and online sellers.

4. Global Practices Many countries—including developed nations—allow and regulate the trade of second-hand clothing. Legal regulation ensures proper taxation, quality standards, and transparency.

5. Environmental Benefits Allowing the legal trade of second-hand clothing promotes sustainability by extending the life cycle of garments and reducing textile waste. In light of these considerations, we respectfully urge the Philippine Congress and Senate to: Review and amend Republic Act No. 4653.

Legalize and regulate the importation of second-hand clothing to help create Jobs, stop smuggling, and increase government tax revenue. Establish proper customs duties and taxation for the industry. Implement health and sanitation standards for imported clothing. Support small entrepreneurs and workers who depend on this trade. Legalizing and regulating the ukay-ukay industry will not only support Filipino livelihoods but will also generate new government revenue and reduce illegal activities in the importation process. 

We respectfully call upon our lawmakers to modernize the law and recognize the economic reality of this long-standing industry. Thank you for your attention to this matter and for your continued service to the Filipino people.

Respectfully,

Francis Saenz

The Decision Makers

Philippine Congress (House of Representatives and Senate)
Philippine Congress (House of Representatives and Senate)

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