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Three accredited members of the Bureau of Customs’ Authorized Economic Operator Program have been exempted from the implementation of the Electronic Tracking of Containerized Cargoes System
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These are: Brother Industries Philippines Inc., Panasonic Manufacturing Philippines Corp., and Mitsubishi Motors Philippines Corp.
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Customs Memorandum Order No. 04-2026 exempts AEO Level 1 members that are at the same time registered with investment promotion agencies
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The exemption is intended as “an attractive incentive” for companies accredited under the AEO Program
Three accredited members of the Bureau of Customs’ (BOC) Authorized Economic Operator (AEO) Program have been exempted from the implementation of the Electronic Tracking of Containerized Cargoes (E-TRACC) System.
This is in line with Customs Memorandum Order (CMO) No. 04-2026, which exempts AEO 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.
The three companies are: Brother Industries Philippines Inc., Panasonic Manufacturing Philippines Corp., and Mitsubishi Motors Philippines Corp., according to AOCG (Assessment and Operations Coordinating Group) Memo No. 70-2026 dated April 27.
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.
READ: PEZA lauds exemption of exporters from BOC’s E-TRACC
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.
CMO No. 04-2026 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 a Registered Business Enterprise 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.
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.
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.
The Philippine Exporters Confederation, Inc. 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.
The Philippine Economic Zone Authority (PEZA) also earlier welcomed the exemption, saying it marks a significant step toward reducing cost of doing business and streamlining export processes.
Apart from AEO members though, PEZA hopes BOC will expand the exemption for 100% export-oriented electronic companies.— Roumina Pablo
