BOC eyes E-TRACC application in airports

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  • The Bureau of Customs is looking to implement the Electronic Tracking of Containerized Cargo System in all airports of entry
  • Stakeholders’ comments on the proposal are welcome until September 2
  • An online public consultation will also be conducted on September 2

The Bureau of Customs (BOC) is seeking to implement the Electronic Tracking of Containerized Cargo (E-TRACC) System in all airports of entry and soliciting comments from stakeholders on the proposal.

In an invitation posted on its website, BOC said position papers on the proposed customs memorandum order are welcome until September 2. Stakeholders are invited to join an online public consultation also on September 2.

The proposed CMO provides procedures for using GPS-enabled tracking devices to monitor in real time movement and location of transit goods for import/export. Specifically it covers monitoring of inland movement of goods shipped through air using an information and communications technology-enabled system.

BOC said the proposed order will supplement CMO 04-2020, which established the E-TRACC System, and further implements Customs Administrative Order 15-2019 (rules and regulations on customs transit of goods in customs territories) in relation to relevant sections of Republic Act No. 10863 (Customs Modernization and Tariff Act).

READ: BOC orders e-tracking of cargoes in transit

E-TRACC is a web-based system launched by BOC last year to track 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 04-2020, an electronic customs seal (ECS) is required during transfer of cargo to a container yard/container freight station or other customs facilities and warehouses (CFW); transit of cargo bound for free zones, inland customs office, depots, or terminals; transit to customs bonded warehouses (CBW); export of cargofrom free zones, inland customs office, depots or terminals, and CBWs to port ofloading; and transfer of shipments for further verification and/or monitoring.

The ECS is a GPS-enabled sealing device or lock that can physically secure a cargo and provide real-time information on its location.

Under the proposed CMO, the provisions of CMO 04-2020 will govern implementation of the E-TRACC System in airports of entry.

An ECS will be required to be affixed to the delivery van for the following movement of bonded goods:

  • Transit from the airport of discharge to free zones or CBW
  • Transit from the airport of discharge to another collection district
  • Transit from free zones or CBWs to the airport as port of loading for exportation
  • Cargo movement to and from one CFW to another CFW, provided that, movement within five kilometers radius to and from the airport (e.g. CFW to Cargohaus, Inc., TMW or to CFW for express shipment) will be subject to continuous customs underguarding until received
  • Transit by land from domestic airport to CBW or free zone and vice versa

The following cargo movement will be subjected to continuous customs underguarding until received:

  • Aircraft to CFW within the airport perimeter and vice versa (e.g. PairCargo, PSI, DHL)
  • Aircraft to Central Mail Exchange Center and vice versa, unless it’s for transit from the airport of discharge to another collection district
  • Aircraft to registered CBW as in flight catering center and vice versa (e.g. PAL In Flight Catering Center, Macro Asia Catering)
  • Aircraft to airport baggage carousel
  • CFW to aircraft for domestic transfer and vice versa

Transfer of cargo subject to customs underguarding will be covered by a transfer note, also known as boat note, which will accompany the transfer of cargo to a CBW and serves as proof of delivery or receipt of the article at its intended destination, duly acknowledged on its face by the customs official stationed there.

Customs cargo clearance must be fully completed in order for all shipments to be loaded into the carrier (aluminum van, delivery van, etc.) and for said carrier to be sealed with the ECS.

Transfer/transit cargo without an affixed ECS may not be opened by any customs officer without approval of the district/sub-port collector at the port of delivery in coordination with the district/sub-port collector of the port where the cargo was approved for transfer/transit.

The proposed fees to be collected by the E-TRACC System service provider are:

  • P500 – within 10-kilometer (km) radius from port of discharge
  • P700 – beyond 10 km radius from port of discharge

For multiple destination and multiple air waybills, the fee structure will be determined upon system activation.

E-TRACC is gradually being implemented across various sea ports and destinations, and is already in place for shipments from the Port of Manila and Manila International Container Port going to the Philippine Economic Zone Authority economic zones and other Freeports; from other ports such as Davao and Subic and the sub-port of Mariveles, Bataan; and for inter-island shipments. – Roumina Pablo