PEZA backs E-TRACC exemption for exporters

The Philippine Economic Zone Authority welcomed the Bureau of Customs’ decision to exempt qualified exporters from the Electronic Tracking of Containerized Cargo system, saying the move could help cut logistics costs and speed up export processing.

BOC Commissioner Ariel F. Nepomuceno announced during the Export Development Council Executive Committee meeting on April 1 that he had signed Customs Memorandum Order No. 04-2026, which grants the exemption to Authorized Economic Operators with Level 1 benefits.

The order covers qualified exporters registered with investment promotion agencies, including PEZA-registered business enterprises that have Authorized Economic Operator Level 1 status.

The E-TRACC system requires the use of GPS-enabled electronic customs seals to monitor the movement of containerized cargo.

The BOC established the system in 2020 to track containerized goods and strengthen customs monitoring.

PEZA said it and its registered business enterprises had sought the removal of the E-TRACC requirement for outbound cargo, citing added costs and administrative delays.

PEZA also said it hopes the exemption will be expanded beyond Authorized Economic Operators to include 100% export-oriented electronics companies.

“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 O. Panga said.

PEZA said the exemption removes E-TRACC fees and the time needed for seal arming and disarming.

The agency said this would help PEZA-registered companies streamline the movement of inbound and outbound containerized cargo between economic zones and ports.

The exemption comes as exporters deal with supply chain shifts and higher logistics costs.

“We are removing the ‘friction’ from our supply chains to ensure the Philippines’ competitiveness for trade and investments,” Panga said.

“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 would work with the BOC to implement the order across economic zones nationwide.