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The Philippine Exporters Confederation welcomed Customs commissioner Ariel Nepomuceno’s announcement that exporters will be exempt from the implementation of the Electronic Tracking of Containerized Cargo (E-TRACC) System
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The announcement was shared by Nepomuceno during the Export Development Council Executive Committee meeting on April 1
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Nepomuceno has yet to sign the customs order implementing the exemption
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PHILEXPORT president Sergio Ortiz-Luis Jr. said the exemption will help ease the burden on exporters already grappling with high fuel prices, supply chain disruptions, and increased compliance requirement
The Philippine Exporters Confederation (PHILEXPORT) welcomed Customs commissioner Ariel Nepomuceno’s announcement that certain segments of the export industry will be exempt from the implementation of the Electronic Tracking of Containerized Cargo (E-TRACC) System.
Exemption will apply to exporters that are Authorized Economic Operator-accredited and those registered with investment promotion agencies.
The announcement was shared by Nepomuceno during the Export Development Council Executive Committee meeting on April 1, PHILEXPORT said in a statement.
PHILEXPORT noted though that Nepomuceno has yet to sign the customs order implementing the exemption.
Confederation president Sergio Ortiz-Luis Jr. said the exemption will help ease the burden on exporters already grappling with high fuel prices, supply chain disruptions, and increased compliance requirements.
“We appreciate the government’s responsiveness to our concerns. The exemption from E-TRACC allows exporters to focus on fulfilling orders efficiently without the added layer of cost and administrative complexity that could hamper our delivery timelines,” Ortiz-Luis said.
He noted that while PHILEXPORT supports the broader objectives of transparency and trade facilitation, policies must be calibrated to avoid unintended consequences on key economic drivers.
“Exporters operate on tight schedules and margins. Any additional requirement that affects turnaround time or increases costs can erode our competitiveness in the global market. This exemption is a step in the right direction toward balancing regulation with economic growth,” he added.
Ortiz-Luis also underscored the importance of continued dialogue between government and industry stakeholders to ensure that future initiatives are both effective and inclusive.
“We remain committed to working with authorities in crafting solutions that enhance trade efficiency while protecting the interests of exporters. A collaborative approach is crucial to sustaining the country’s export momentum and supporting job creation,” he said.
PHILEXPORT and the Customs Bonded Warehouse Operators Confederation, Inc. in position papers submitted to BOC in 2022 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.
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.
Under Customs Memorandum Order (CMO) No. 04-2020, which established the E-TRACC System, an electronic customs seal (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.
