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The Philippine Economic Zone Authority welcomes the Bureau of Customs’ exemption of qualified exporters from the implementation of the Electronic Tracking of Containerized Cargo System, saying it marks a significant step toward reducing cost of doing business and streamlining export processes
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At the same time, PEZA hopes BOC will expand the exemption for 100% export-oriented electronic companies
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PEZA said the exemption comes at a critical time as the export sector manages global supply chain shifts and rising logistics costs
The Philippine Economic Zone Authority (PEZA) welcomes the Bureau of Customs’ (BOC) exemption of qualified exporters from the implementation of the Electronic Tracking of Containerized Cargo (E-TRACC) System, saying it marks a significant step toward reducing cost of doing business and streamlining export processes.
“We thank Commissioner Nepomuceno for this move and we welcome this development most especially at a time when ongoing tensions in the Middle East are exerting pressure not only on global oil prices but also on trade flows and economic stability,” PEZA director general Tereso Panga said in a statement.
Customs commissioner Ariel Nepomuceno on March 30 signed Customs Memorandum Order (CMO) No. 04-2026, which exempts Authorized Economic Operator (AEO) Level 1 members that are also registered with investment promotion agencies such as PEZA from the implementation of the E-TRACC System.
READ: BOC exempts Level 1 AEO members from e-TRACC system
Apart from AEO members, PEZA hopes BOC will expand the exemption for 100% export-oriented electronic companies.
Since the E-TRACC System’s roll out in 2020, PEZA and its registered business enterprises (RBEs) have consistently advocated for the removal of the E-TRACC requirement for outbound cargo, citing it as a redundant cost and an administrative bottleneck.
PEZA noted that the system, which requires the use of GPS-enabled customs electronic seal (CES) for tracking for cargo containers, has posed additional costs and potential delays in the movement of outbound goods.
PEZA said the exemption comes at a critical time as the export sector manages global supply chain shifts and rising logistics costs.
By eliminating E-TRACC fees and the time required for ECS arming/disarming, will allow PEZA-RBEs to streamline their inbound and outbound containerized cargo processes from zones to ports and vice versa.
PEZA noted that the focus remains on making the Philippines a more attractive destination for foreign direct investment (FDI).
“The exemption marks a transition from heavy-handed physical regulation to a more sophisticated, data-driven partnership that protects government revenue while aggressively promoting export growth,” PEZA noted.
“We are removing the ‘friction’ from our supply chains to ensure the Philippines’ competitiveness for trade and investments,” Panga emphasized. “We are effectively rolling out the red carpet for our investors. This is the brand of service we’ve promised since day one—no red tape, only red-carpet treatment, made stronger by our partnership with BOC,” he added.
PEZA said it remains committed to working closely with BOC in securing the seamless implementation of CMO No. 04-2026, ensuring that its benefits are felt immediately across all economic zones nationwide pursuant to the trade and investment facilitation objectives by both agencies.
Aside from PEZA, the Philippine Exporters Confederation, Inc. and Customs Bonded Warehouse Operators Confederation, Inc. have also 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 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.
