MANILA, Philippines - The Bureau of Customs seized P22 million worth of used clothing and other garments allegedly smuggled into the country.
The BOC intercepted almost 2,800 bales of comforters and used clothes, mostly branded apparel from the United States, in nine separate warehouse units in Baguio City.
The used clothing, which reportedly entered the Subic and Clark Freeport zones and the Cavite Export Processing Zone, were misdeclared as scrap fabric intended for the manufacture and subsequent export as rags.
An investigation by the BOC’s Intelligence Group found that certain locators inside economic zones use their privilege to import raw materials tax-free to smuggle used clothing in the guise of scrap fabric. These locators then sell the used clothing dealers who then supply local ‘ukay-ukay’ business owners.
The importation of used clothing is prohibited under Section 2530 of the Tariffs and Customs Code of the Philippines and Republic Act 4653 to health and economic reasons. This law has been in effect since 1966.
Export manufacturing enterprises registered with the Philippine Economic Zone Authority (PEZA) and located at PEZA Zones are allowed tax-free and duty-free importation of raw materials, capital equipment, machineries and spare parts. They are also exempted from paying wharfage dues and export tax, impost or fees.