BOC exempts AEOs from e-seal requirement

The Bureau of Customs (BOC) has eased cargo monitoring rules for top-tier accredited traders, removing the need for electronic customs seals for qualified firms under its container tracking system.

Under Customs Memorandum Order (CMO) No. 4-2026, authorized economic operators (AEOs) with Level 1 status are now exempted from using electronic customs seals (ECS) under the Electronic Tracking of Containerized Cargo (E-TRACC) System. The policy aims to strengthen incentives for compliant and trusted traders.

The E-TRACC System was designed to monitor container movements in real time using GPS-enabled seals to prevent diversion and tampering during inland transport.

The new order modifies existing provisions under earlier customs rules governing the AEO program, specifically updating sections of CMO 9-2020 and CMO 4-2020 to reflect the exemption for eligible shipments.

It also clarified that the exemption applies to cargo moving to and from free zones, including shipments handled by firms that are both AEO-accredited and registered as business enterprises under investment promotion agencies.

“ECS shall no longer be required for shipments bound to and/or from Free Zones, consigned to or exported by AEOs which are at the same time granted privileges as Registered Business Enterprises (RBEs) by the Investment Promotion Agencies (IPAs) or government entities created by law, in charge of promoting investments,” the order stated.

The BOC clarified that while the tracking seal requirement is lifted for covered shipments, the General Transportation Surety Bond under the Automated Bonds Management System will remain in place for transit cargo.

The AEO program is intended to streamline customs processes by offering faster clearance, reduced inspections, and international recognition for compliant traders, helping lower logistics costs and improve trade efficiency.

BOC earlier issued its AEO Operational Guidelines to encourage more exporters and importers to apply for accreditation, outlining benefit tiers ranging from simplified processing and dedicated help desks to expedited clearance lanes and additional privileges for higher-level members.

The latest policy is set to take effect 15 days after its issuance on 7 April, 2026