Exporters’ exemption from E-TRACC under study

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The Eletronic Tracking of Containerized Cargo System allows the Bureau of Customs to track, monitor, and audit the location and condition of cargoes, as well as obtain real-time alarms on diversion and tampering of cargoes. Photo from BOC.
  • Exporters’ exemption from the Electronic Tracking of Containerized Cargo is under study
  • The Department of Trade and Industry will work with the Department of Finance and the Bureau of Customs to look at the exemption
  • PHILEXPORT and the Customs Bonded Warehouse Operators Confederation had called for suspension of the policy on exports, claiming it is unnecessary and causes shipment delays and higher costs
  • They said export shipments are destined for specific markets and are unlikely to be diverted

Exporters’ exemption from the Electronic Tracking of Containerized Cargo (E-TRACC) system is being studied by the Department of Trade and Industry together with the Department of Finance (DOF) and the Bureau of Customs (BOC).

This was one of the issues discussed during the joint meeting of the Economic Development Group and the Inter-Agency Committee on Inflation and Market Outlook on June 28 chaired by the Office of Special Assistant to the President for Investment and Economic Affairs Secretary Frederick Go, according to the DOF.

The Philippine Exporters Confederation, Inc. and the Customs Bonded Warehouse Operators Confederation, Inc. in position papers 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.

They said they deem “unnecessary and unreasonable” the implementation of E-TRACC for exports as, among others, export cargoes are destined for specific markets and not likely to be diverted.

READ: Port users seek suspension of E-TRACC implementation on exports

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. – Roumina Pablo

READ: BOC issues E-TRACC rules on import, export cargoes for CBWs