MANILA, Philippines — The Bureau of Customs (BOC) is set to establish an electronic monitoring system, which will track the transit of cargoes within Customs territory, therefore ensuring the proper collection of taxes and duties.
Customs Commissioner Rey Leonardo Guerrero issued Customs Memorandum Order 04-2020, dated Feb. 4, ordering the establishment of the Electronic Tracking of Containerized Cargo (E-TRACC) System, as well as the accreditation of a system service provider.
Guerrero said the system seeks to generate real-time and accurate information on the inland movements of containerized goods using an information and communications technology (ICT)-enabled system to protect the revenues of the government.
The memo covers the transfer of cargo to another container yard, freight station, or warehouse; transit of cargo bound to free zones, inland customs office, depots or terminals; and transit to custom bonded warehouses.
It also covers the export of cargo from free zones; inland customs office, depots or terminals; and transfer of shipments subject to further verification or monitoring.
Under the order, all container vans covered will be affixed with an electronic customs seal before clearance is given to depart from the port of discharge to the port of destination. This device should be uniquely identifiable, reusable and equipped with GPS.
The BOC will also create a software platform where it can monitor and track cargoes that are affixed with the electronic seal.
In line with the establishment of the system, Guerrero also directed the accreditation of a service provider.
The service provider will be tasked to provide a sufficient number of seals at each customs port, provide the necessary hardware and software for the system, and deploy personnel to handle the maintenance of seals.
It will also be in charge of retrieving the electronic customs seal in the port of destination, conduct training of BOC officials, and provide user manuals.
To qualify, the E-TRACC service provider must have the necessary technical and operational track record to deploy, operate and maintain the system.
Guerrero ordered the formation of a committee, which will oversee the accreditation of a service provider.
The accredited service provider will enter into a service level agreement and non-disclosure agreement with the bureau. It will also be required to post a performance bond amounting to P5 million.
“The E-TRACC system service provider shall be given an accreditation status for a period of three consecutive years, and will be renewable every three years thereafter,” the memo read.