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The Bureau of Customs issued rules aimed to simplify the electronic customs seal arming procedures for export shipments covering customs bonded warehouses under its Electronic Tracking of Containerized Cargoes System
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The new rules under Assessment and Operations Coordinating Group Memo No. 98-2026 are in line with the implementation of Customs Memorandum Order No. 04-2020, which established the E-TRACC System
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Authorized to handle ECS arming are the warehousemen and other authorized BOC personnel, E-TRACC service provider, and authorized representative from the CBW operator’s accredited member-exporter
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To request for the arming/sealing of the ECS, the CBW operator should submit a request at least three days prior to the stuffing of cargoes into container/s
The Bureau of Customs (BOC) has issued rules aimed to simplify the electronic seal arming procedures for export shipments covering customs bonded warehouses (CBWs) under its Electronic Tracking of Containerized Cargoes (E-TRACC) System.
The new rules under Assessment and Operations Coordinating Group (AOCG) Memo No. 98-2026 are pursuant to the implementation of Customs Memorandum Order (CMO) No. 04-2020, which established the E-TRACC System, in particular Section 10.9 on the sealing of export cargo using the electronic customs seal (ECS).
E-TRACC 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.
The ECS is a GPS (global positioning system)-enabled sealing device or lock that physically secures a cargo and provides real-time information on its location.
Under AOCG Memo No. 98-2026, to request for an ECS, the CBW must book through the ECS/GPS Export Device requisition on the E-TRACC System website (https://www.ecms.ph). Delivery of actual ECS must be undertaken by the E-TRACC service provider, Ascent Solutions Philippines Inc., within 24 hours after the booking. Any ECS not used after two days must be returned and surrendered by the warehouseman/CBW to the E-TRACC service provider. The module for CBW must be able to indicate the authorized personnel who will undertake the actual ECS arming process.
In the interest of expediting the ECS arming process, the following personnel are authorized for arming ECS:
- Warehousemen and other authorized BOC personnel
- E-TRACC service provider
- Authorized representative from the CBW operator’s accredited member-exporter
The assigned warehousemen and other authorized BOC personnel are the main responsible officers in the ECS arming process. In the absence of the BOC personnel during the ECS arming, however, the CBW may opt for the services of other authorized personnel.
To request for the arming/sealing of the ECS, the CBW operator should submit a request at least three days prior to the stuffing of cargoes into container/s through an official communication to the assigned warehouseman. Any request beyond office hours or holidays are considered overtime and the requesting CBW must pay appropriate overtime pay, transportation and meals, in accordance with Civil Service Rules and Regulations.
In case the assigned warehousemen or authorized BOC personnel are unable to be physically present during the E-TRACC arming/sealing procedure, the CBW may opt to choose the services of other authorized personnel.
The CBW must submit a request for a schedule of ECS arming in the E-TRACC CBW Trip Booking System (https://www.ecms.ph/E-TRACC/Login). Requests for E-TRACC service provider’s arming must be made at least 24 hours before the actual ECS arming.
Any BOC employee duly authorized in writing by the BOC district collector of the port having jurisdiction over the CBW may initiate the arming of the ECS. In the absence of the warehouseman, storekeeper or account officers of the BOC, other customs personnel may be authorized.
The authorization by the district collector will be valid for six months and may be renewed after expiry. The district collector has the discretion to remove or add any BOC employee for the effective implementation of AOCG Memo No. 98-2026.
In case of accredited CBW operators, members/exporters should execute an affidavit of undertaking designating an authorized officer to perform the arming/sealing of containers and holding the officer as well as the exporter/CBW accountable to the BOC for violations committed in the implementation of the E-TRACC System. Authorized representative/s must comply with the E-TRACC System procedures as set forth under existing customs rules and regulations. Such authorizations should be submitted to the port and registered into the booking system of E-TRACC.
Only those authorized personnel are allowed to affix/seal the ECS, even without the presence and supervision of the assigned warehouseman or BOC personnel, provided that the E-TRACC procedures as set forth under CMO No. 04-2020 are duly complied with. The E-TRACC service provider should ensure the training of the authorized personnel for this purpose.
Warehousing performance bond posted by the CBWs must accommodate the liabilities that may answer for any damage resulting from any infractions and/or violations of the undertaking made by the exporter/CBW or any of its personnel. The performance bond is without prejudice to civil, criminal and/or administrative liabilities that the BOC may impose under existing customs rules and regulations.
The performance bond is a requirement for the operation of a CBW.
In lieu of a separate warehousing performance bond, the general warehousing bond (GWB) posted by the CBW operator will serve as the security to answer any duties, taxes, and other liabilities arising from damages, infractions, or violations of the warehousing undertaking committed by the operator, its personnel or staff. The reliance on the GWB is without prejudice to any civil, criminal, or administrative liabilities that the BOC may impose under the Customs Modernization and Tariff Act and other existing customs rules and regulations.
Last June, AOCG also said it is deploying the new Automated Track-Trace-Transfer System (AT3S) ECS, which features improved accuracy and reliability, as part of its objective to update and improve the current condition of its E-TRACC System. The roll out schedule began in June and will continue until July.
Last May, BOC issued CMO No. 04-2026, which exempts Authorized Economic Operator (AEO) Program Level 1 members that are at the same time registered with investment promotion agencies from implementation of the E-TRACC System. It is intended as “an attractive incentive” for companies accredited under the AEO Program.— Roumina Pablo
