MYEG to deploy China customs clearance system in collaboration with the Philippines Bureau of Customs
By Digital News Asia July 31, 2023
- Philippines becomes second country after Malaysia to adopt Ztrade
- MYEG will provide installation, training, and customisation requirements
MY E.G. Services Bhd (MYEG) has secured regulatory approval to deploy its Web3, Artificial Intelligence, and blockchain-based customs clearance and processing services for trade flows between the Philippines and China.
MYEG, together with its Philippines-incorporated companies, signed agreements for collaboration with the Philippines Bureau of Customs (BOC) and Cargo Data Exchange Center Inc. (CDEC) to adopt Ztrade —a link between China and its trading partners— which runs on MYEG’s Zetrix layer-1 platform.
TS Wong (pic), Group Managing Director of MYEG, said: “We look forward to expanding this service to other nations as we continue pursuing our objective of deploying this pioneering solution, which leverages the power of Web3 and AI technology across the Association of Southeast Asian Nations (ASEAN) and the Regional Comprehensive Economic Partnership (RCEP) region.”
Meanwhile, BOC Commissioner Bienvenido Y. Rubio said: “This platform will enable the verification of Certificates of Origin for exports to China and vice-versa, using express clearance and tariff exemptions under the RCEP and the ASEAN-China Free Trade Agreement (ACFTA). The proposed use of the Zetrix platform shall be at no cost to the Philippine Government.”
CDEC President Jason Gaw Cheng added: “The Zetrix Platform will increase the global trade competitiveness of the Philippines and improve ease of doing business for our traders and logistics service providers.”
Under the collaboration, MYEG will provide the Ztrade solution in the Philippines including ground installation, training, and assistance with customisation requirements while CDEC, which is a value-added service provider of trade and logistics solutions for the BOC will support the integration of Ztrade to its platform to ensure a seamless experience for users. The agreements remain in effect unless mutually terminated.
This initiative by MYEG follows the signing in March of a partnership between the Group and East Logistic-Link Co, Ltd, a wholly-owned agency of the General Administration of Customs of the People's Republic of China (GACC), to jointly provide a full suite of cross-border trade facilitation services on the Zetrix blockchain platform. This includes the lodgment of certificates of origin with the potential to include other certificates relevant to cross-border trade.
The roll-out of Ztrade in the Philippines also marks the broadening of MYEG's presence as a key enabler of government digitalisation in the archipelago. Since commencing operations in 2017, the Group has gone on to establish itself as a leading provider of e-government services in the Philippines.
Today, the Group provides a variety of services for a wide-range of government agencies including the National Bureau of Investigation, the Securities and Exchange Commission, Bureau of Internal Revenue, Landbank of the Philippines, PhilHealth, Philippines Economic Zone Authority and the Tourism Infrastructure and Enterprise Zone Authority.
Meanwhile, Malaysia, through the Ministry of Investment, Trade and Industry (MITI), announced its support for adopting a blockchain-based single window system for the mutual recognition of digital certificates of origin in April.
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