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The Bureau of Customs is exempting Level 1 accredited members of its Authorized Economic Operator Program from the implementation of the Electronic Tracking of Containerized Cargo System
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The exemption under Customs Memorandum Order (CMO) No. 04-2026 signed March 30 is “to provide an attractive incentive program” for companies accredited under the AEO Program
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Shipments bound to and/or from freeport zones consigned to or exported by AEOs that are at the same time registered business enterprises of investment promotion agencies no longer require an electronic customs seal
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Posting of the general transport surety bond under BOC’s Automated Bonds Management System for transit containerized shipments will continue
The Bureau of Customs (BOC) is exempting Level 1 accredited members of its Authorized Economic Operator (AEO) Program from the implementation of the Electronic Tracking of Containerized Cargo (E-TRACC) System.
The exemption under Customs Memorandum Order (CMO) No. 04-2026 signed March 30 is “to provide an attractive incentive program” for companies accredited under the AEO Program.
Prior to the issuance of CMO No. 04-2026, the Philippine Exporters Confederation, Inc. said Customs commissioner Ariel Nepomuceno announced the exemption policy during an Export Development Council Executive Committee meeting on April 1.
READ: BOC to exempt exporters from e-TRACC system
PHILEXPORT earlier recommended the suspension of implementation of the E-TRACC System on exports, saying it is unnecessary and will cause shipment delays and bump up costs.
CMO No. 04-2026 amends CMO No. 09-2020, adding a new subsection that provides that the electronic customs seal (ECS) under the E-TRACC System will no longer be required for shipments bound to and/or from freeport zones that are consigned to or exported by AEOs, which are at the same time granted privileges as registered business enterprises by investment promotion agencies or government entities in charge of promoting investments.
The exemption covers air and sea cargoes.
CMO No. 09-2020 provides the guidelines for the pilot implementation of the AEO program for importers and exporters.
READ: BOC launches AEO operational guidelines
CMO No. 04-20256 also amends CMO No. 04-2020 to state that shipments bound to and/or from Free zones consigned to or exported by AEOs that are at the same time an RBE no longer require an ECS.
Posting of the general transport surety bond under BOC’s Automated Bonds Management System for transit containerized shipments will, however, continue.
As of December 2025, AEO members include Toyota Motors Philippines Corp., Panasonic Manufacturing Corp., Coca-Cola Europacific Aboitiz Philippines, Inc.; Sony Philippines, Inc.; Brother Industries (Phils.), Inc.; and I.E. Medica, Inc.
Launched in December 2019, the AEO Program represents a customs-to-business partnership that seeks to enhance international supply chain security and facilitate movement of legitimate goods. It is in compliance with the country’s commitment to the World Customs Organization’s SAFE Framework of Standards to Secure and Facilitate Global Trade.
BOC’s AEO Program currently only covers importers and exporters.
READ: BOC moves to broaden AEO Program with WCO support
E-TRACC, meanwhile, is a web-based system launched in 2020 that tracks the inland movement of containerized cargoes during transit and transfer to other customs territories and facilities. It allows BOC to track, monitor, and audit the location and condition of cargoes, as well as obtain real-time alarms on diversion and tampering of cargoes.
Under CMO No. 04-2020, which established the E-TRACC System, an ECS is required during the transfer of cargo to a container yard/container freight station or other customs facilities and warehouses; transit of cargo bound for Free Zones, inland customs office, depots, or terminals; transit to customs bonded warehouses; export of cargo from Free Zones, inland customs office, depots or terminals, and CBWs to port of loading; and transfer of shipments subject to further verification and/or monitoring.
All container vans covered by CMO 04-2020 should be affixed with an ECS before being cleared to depart from the starting point or point of discharge for the voyage to the end point or point of destination.
Except when warranted under CMO 04-2020, customs cargo clearance must be fully completed before any shipment can be sealed with an ECS.— Roumina Pablo
