P22-M smuggled ‘ukay-ukay’ seized in Baguio

Rappler.com

This is AI generated summarization, which may have errors. For context, always refer to the full article.

P22-M smuggled ‘ukay-ukay’ seized in Baguio
Erring ‘ukay-ukay’ importers take advantage of freeport zones to evade tax duties, says the Bureau of Customs

MANILA, Philippines – At least 2,800 bundles of used foreign garments, commonly known as “ukay-ukay,” were seized in Baguio City on Tuesday, September 2, following an intelligence report that they were smuggled as scrap fabric to evade import duties.

The ukay-ukay bundles, mostly branded apparel from US and Canada with an estimated worth of P22 million ($503,084*), came from 9 different warehouses in Baguio City, said Bonifacio De Castro, District Collector of the Bureau of Customs (BOC) in San Fernando, La Union.

De Castro said the items are believed to have entered the country through locators at the Subic and Clark freeport zones, including the Cavite Export Processing Zone in Rosario.

“Certain locators inside economic zones use their privilege to import raw materials tax-free to smuggle used clothing in the guise of scrap fabric,” said De Castro, citing information from the BOC’s intelligence group.

Ukay-ukay stores are widespread in the Philippines despite an embargo on importing of used clothing for commercial purposes since 1966. (READ: The unviersity of ukay)

“We need to ensure that legitimate stakeholders in the local garments industry are protected from unscrupulous and illegal importations of clothing,” said De Castro.

The BOC is preparing cases against the importers and traders for violating Republic Act 4653, a law prohibiting commercial importation of textile artcles commonly known as usd clothing and rags. 

Garment smuggling has caused profit loss among local garment makers, as ukay-ukay traders using the freeport zones do not pay taxes and duties.

“What makes this situation worse is that we have found evidence that certain locators granted fiscal privileges by our government have abused these perks,” said De Castro.

Last month, a Customs employee was arrested for allegedly facilitating the release of container vans with used clothing from Hong Kong and US in exchange for an initial payment of P1 million ($22,867). – Mick Basa/Rappler.com

*$1=P43.73

Add a comment

Sort by

There are no comments yet. Add your comment to start the conversation.

Summarize this article with AI

How does this make you feel?

Loading
Download the Rappler App!