Exporters batting for exemption from BoC container tracking system
By Justine Irish D. Tabile, Reporter
EXPORTERS said they are in talks with the Bureau of Customs (BoC) to exempt their cargoes from the Electronic Tracking of Containerized Cargo (E-TRACC) system, saying its shipments are already tracked.
Philippine Exporters Confederation, Inc. President Sergio Ortiz-Luis, Jr. said the organization is in talks with the BoC “towards the exemption of exports from this because most of our logistics providers use GPS (global positioning system),” Mr. Ortiz-Luis told BusinessWorld via Viber.
The exporters’ comments come after the Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI) also flagged the redundancy of E-TRACC.
According to SEIPI President Danilo C. Lachica, the system will also cost exporters P1 million to P2 million on top of the rising logistics costs.
“Plus, there has been no record of export diversion to the domestic market because exporters need to ship these goods; otherwise, they don’t get paid. So E-TRACC is redundant and extra cost and time for exporters,” he added.
Launched in 2020 through Customs Memorandum Order No. 04-2020, E-TRACC enables real-time monitoring of inland movements of containerized goods.
With the use of a GPS-enabled tracking device, the system secures the transport of the goods and prevents diversion and tampering.
In July 2022, the BoC fully implemented E-TRACC on all containers processed with no exceptions.
British Chamber of Commerce of the Philippines Executive Director Chris Nelson told BusinessWorld that the chamber understands why there is a request for the system to be waived for exporters, where cargo diversion is not a concern.
“The issue is obviously for imports … While we haven’t heard particularly of this system from our companies, what I would say is that we support things that strengthen and support legitimate sales,” Mr. Nelson said in a phone interview.
“In that context, we are very strong supporters of the Anti-Agriculture Economic Sabotage Act, although that’s different, it’s about supporting and making sure that genuine imports that support the economy are there,” he added.
He cited the importance of the government to take action against smuggling.
Confederation of Wearable Exporters of the Philippines Executive Director Maritess Jocson-Agoncillo told BusinessWorld that E-TRACC is redundant, noting that the industry has measures in place to track containers.
“The system flow has been efficient … once containers are locked and released from the port of origin,” Ms. Jocson-Agoncillo said via Viber.
“We have not experienced any hijacking, or even attempts, to open containers in transit,” she added.