The Bureau of Customs (BOC) has moved to exempt exporters from the Electronic Tracking of Containerized Cargo (E-TRACC) system, facilitate VAT exemptions on imports directly attributable to export activities, and strictly enforce the 90-day container dwell time rule to boost the competitiveness of the export sector.
The Export Development Council (EDC) Executive Committee chaired by Trade and Industry (DTI) and the Philippine Exporters Confederation, Inc. (PHILEXPORT) launded the BOC under the leadership of Commissioner Ariel Nepomuceno for its decisive reforms that ease trade frictions and strengthen the competitiveness of Philippine exporters.
The E-TRACC exemption will benefit Authorized Economic Operators (AEOs) that are also Registered Business Enterprises (RBEs). This reform, formalized through a Customs Memorandum Order, ensures smoother cargo movement to and from Free Zones and strengthens the incentive framework for AEOs.
The lifting of this requirement effectively removed a key source of delays and costs, responding to exporters’ call for practical solutions to low hanging trade barriers.
“We appreciate the BOC’s responsiveness to our concerns. The exemption from E-TRACC allows these exporters to focus on fulfilling orders efficiently without the added layer of cost and administrative complexity that could hamper delivery timelines,” Mr. Sergio R. Ortiz-Luis Jr., President of PHILEXPORT said. “But we also hope that the rest of the exporters can be covered, since their goods are outbound anyway and should be compliant with their buyers’ requirements.”
Likewise, Dr. Dan Lachica, Private Sector Chair of the EDC Networking Committee on Trade Policy and Procedure Simplification and President of the Semiconductor and Electronics Industries in the Philippines, Inc. (SEIPI), is also grateful to the reforms implemented within BOC.
“On behalf of the semiconductor and electronics industry, SEIPI appreciates BOC for exempting exporters and importers from ETRACC and for facilitating the AEO approval process.”
VAT exemption
In addition, the EDC also welcomed the issuance of Assessment and Operations Coordinating Group (AOCG) Memo No. 188-2025, which directs all ports to recognize the Export-Oriented Enterprise (EOE) Certificates issued by the DTI-Export Marketing Bureau (EMB) and clarifies operational issues pertaining to the said certificates.
The issuance provided clarity and consistency across all ports in the implementation of Republic Act No. 12066, otherwise known as the CREATE MORE Act.
The EOE Certificates grants exporters with at least 70 percent export sales to avail of VAT exemptions on imports directly attributable to its export activities without the need for a Tax Exemption Indorsement (TEI) from the Department of Finance (DOF). This reduces regulatory burden and enhances exporters’ operational efficiency.
Container dwell time
Equally important is the BOC’s strict enforcement of the 90-day container dwell time rule under Customs Administrative Order No. 8-2019. By proactively preventing port congestion and ensuring the timely disposition of overstaying containers, the BOC has addressed another critical friction point that has long hampered trade facilitation.
The EDC has also expressed its strong support to BOC’s digitalization agenda. By modernizing systems and reducing unnecessary regulatory hurdles, the BOC is laying the groundwork for a customs administration that is both efficient and credible, one that enables rather than constraints the growth of Philippine exports.
EDC said these measures directly address long-standing operational bottlenecks, marking a significant step toward building a modernized, credible, and digitalized customs administration that actively supports national economic growth.
DTI Secretary Ma. Cristina A. Roque emphasized the importance of sustaining momentum. “In times of global crisis, we must fast-track reforms that ease the burden on businesses. The BOC’s proactive measures are crucial to sustaining the gains of Philippine exports, ensuring that our exporters remain resilient and competitive even amidst supply chain disruptions and market uncertainties.”
In times of global crisis, sustaining the gains of Philippine exports requires bold and immediate action. The EDC underscores that fast-tracking regulatory reforms is essential to ease the burden on businesses and assist them as they navigate supply chain disruptions and market uncertainties. The BOC’s proactive measures show how government regulation can transform into a true enabler of competitiveness and resilience, helping exporters not only weather current challenges but also secure long-term growth.
