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The Bureau of Customs-Port of Clark is drafting a proposal on transsorting rules for air freight amid expansion of air express cargo operators in Clark, Pampanga
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Transsorting is a specialized form of transshipment
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BOC-Clark Bonds Division assistant chief Chris David Demaro said the agency is in talks with Clark’s air express cargo operators for their recommendations on the proposed order
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The proposed order will be endorsed to the BOC Central Office for review and approval
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It is eyed for signing before the start of operations of UPS’s new hub in September
The Bureau of Customs-Port of Clark (BOC-Clark) is drafting a proposed Customs Memorandum Order (CMO) on transsorting rules for air freight, responding to the expanding hub operations of air express cargo operators (AECO) Federal Express (FedEx) and United Parcel Service (UPS) in Clark, Pampanga — developments that are effectively transforming Clark into a premier sorting hub in Asia.
BOC-Clark Bonds Division Assistant Chief Chris David Demaro announced this during the recent 4th Central Luzon Transport and Trade Conference and Exhibit 2026, noting that the proposed CMO will be endorsed to the BOC Central Office for review and approval, with signing eyed before UPS’s new hub begins operations in September 2026.
What is transsorting?
Transsorting — defined under CMO 09-2021 as the “unloading, sortation, and reloading of goods in one continuous process within the same port of entry” — is a specialized, value-added form of transshipment. Unlike direct transshipment, which simply transfers cargo from one conveyance to another, transsorting adds an intermediate step: cargo is offloaded, sorted or deconsolidated, then reloaded onto separate outbound vessels or aircraft. It is most commonly used in air express shipments, less-than-truckload operations, and courier networks.
CMO No. 15-2022, which took effect in June 2022, formally recognizes transsorting as a specialized type of transshipment and provides BOC rules for processing transshipment goods and accrediting transhippers.
“This rapid infrastructure growth underscores an urgent necessity for us to proactively draft and implement comprehensive rules and procedures on transsorting,” Demaro said, referring to FedEx and UPS’s hub expansions. “This strategic initiative directly advances our collective mission to make Clark a highly competitive, agile, and world-class gateway for international trade.”
BOC-Clark is currently in active consultations with Clark’s AECOs to gather recommendations on the proposed CMO, covering rules and procedures, risk analysis, fees, localization for Clark’s specific context, and digitalization of the process.
The initiative is part of BOC-Clark’s broader stakeholder engagement through its local Customs Industry Consultative and Advisory Council — a consultative body that works with industry groups to advance customs reform and address emerging trade issues.
In a related move, BOC-Clark last year approved a request allowing FedEx to use commercial flights to augment its dedicated air carrier network — a recognition that growing cargo volumes require greater flexibility. Under CMO 09-2021, AECOs are required to operate a dedicated air carrier, but commercial flights may be used to meet time-sensitive delivery commitments with prior approval from the commissioner.
FedEx broke ground on May 18 for the expansion of its Clark gateway facility, targeted to begin operations in 2028. UPS’s new Clark hub is set to launch in September 2026 with new flights from Clark International Airport (CRK).
These developments align with broader infrastructure investments positioning CRK as a future-ready logistics gateway. The Luzon International Premiere Airport Development Corp., CRK’s operator, is allocating 30 hectares for a proposed Cargo City within the Clark Freeport Zone. The Bases Conversion and Development Authority (BCDA) is constructing new aprons and taxiways at CRK, expected to be completed by 2030, and last April awarded a ₱206.9-million contract for the design of CRK’s second runway.
READ: Clark airport operator allots 30 hectares for Cargo City
The government is also developing Clark Aviation Capital — a 2,367-hectare aviation-focused business hub on government-owned land surrounding CRK — designed to serve as a global center for aviation, logistics, commerce, and sustainable urban development, and to attract both local and foreign investment. — Roumina Pablo
