Tereso O. Panga, director general of the Philippine Economic Zone Authority (PEZA), has called for the expansion of the Electronic Tracking of Containerized Cargo (E-TRACC) System exemption to include 100 percent export-oriented electronic companies.
Customs Memorandum Order (CMO) No. 04-2026, issued by Customs Commissioner Ariel F. Nepomuceno, exempting exporters registered with Investment Promotion Agencies (IPAs) such as PEZA for their RBEs’ Authorized Economic Operators (AEOs) with Level 1 benefit.
Panga expressed hope that the CMO extends to other non AEOs electronics firms that export 100 percent of their products.
The E-TRACC System, which requires the use of GPS-enabled Customs Electronic Seal (CES) tracking for cargo containers, has posed additional costs and potential delays in the movement of outbound goods.
The PEZA has reaffirmed its full support by the decision of BOC to exempt qualified exporters from the E-TRACC, marking a significant step toward reducing the cost of doing business and streamlining export processes.
“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,” said DG Panga.
Since the system’s roll out in 2020, PEZA and its registered business enterprises (RBEs) have consistently advocated for the removal of the E-TRACC requirement for outbound cargo, citing it as a redundant cost and an administrative bottleneck. 
DG Panga and his team meeting with BOC Commissioner Ariel Nepomuceno
Competitiveness
The exemption comes at a critical time as the export sector manages global supply chain shifts and rising logistics costs. By eliminating E-TRACC fees and the time required for seal arming/disarming, will allow PEZA-registered business enterprises to streamline their inbound and outbound containerized cargo processes from zones to ports and vice versa.
The focus remains on making the Philippines a more attractive destination for Foreign Direct Investment. The exemption marks a transition from heavy-handed physical regulation to a more sophisticated, data-driven partnership that protects government revenue while aggressively promoting export growth.
“We are removing the ‘friction’ from our supply chains to ensure the Philippines’ competitiveness for trade and investments,” DG Panga emphasized. “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.”
