THE Bureau of Customs (BOC) has adopted a digital platform to streamline the processing of tax and duty exemptions in its bid to digitalize and modernize its administrative processes.
Customs Commissioner Ariel F. Nepomuceno issued Customs Memorandum Order (CMO) 07-2025 to implement and use the Enhanced Tax Exemption System Lite (e-TES Lite) of the Department of Finance (DOF).
The e-TES Lite is a database management system developed by the DOF’s Revenue Office for the electronic processing of tax and duty exemption applications.
The BOC said the platform is part of efforts to ‘better serve the public and streamline customs operations,’ as it enables online monitoring of Tax Exempt Indorsements (TEIs) from approval to utilization at the ports and to ensure quick and efficient access to TEIs through QR code scanning.
TEIs are signed DOF documents confirming the exemption from taxes or duties for a specific shipment, authorizing the BOC to release the goods.
Only authorized BOC personnel with official @customs.gov.ph e-mail accounts will be given access to the platform, which will be granted by the system administrator from the DOF.
Each transaction will be tracked through a unique Tax Exemption System (TES) number and, upon approval, a Tax Exempt Certificate (TEC) number generated in BOC’s E2M System for formal goods declarations.
An endorser from the BOC’s Tax Exempt Division (TED) will review, endorse or reject TEIs with discrepancies, while the chief from TED will approve or disapprove the TEIs.
Once the TEI is approved, importers may request the generation of a TEC number in the BOC’s E2M System for goods declaration under the formal entry process.
The endorser will initiate the generation and encode the TEC number in the e-TES Lite.
The BOC’s Management Information Systems and Technology Group will issue a memorandum detailing the schedule of the system’s nationwide rollout and conduct training sessions for all concerned personnel.
Moreover, the CMO warns that unauthorized access, credential sharing or failure to comply with its provisions will constitute administrative or criminal liability.
Nepomuceno, since assuming his post as BOC commissioner, has been pushing for the full digitalization of customs processes to curb smuggling and corruption within the Bureau.
Among these are fully digitalizing import entry submissions, assessments and release processes to minimize tampering and improve transparency.
This includes expanded use of scanning technologies, CCTV monitoring, and surveillance. The initiative is expected to roll out within one to one-and-a-half years.