MY E.G. Services Berhad (MYEG) has joined forces with the Philippines Bureau of Customs (BOC) to deploy the blockchain-based customs clearance and processing services, facilitating trade flows between the Philippines and China.
The collaboration involves MYEG’s Philippine-incorporated companies, as well as Cargo Data Exchange Center Inc. (CDEC). MYEG is a one-stop provider of e-government solutions and payment services.
The digital solution, known as Ztrade, operates on MYEG’s Zetrix layer-1 blockchain platform, integrating Web3 technology and artificial intelligence (AI). This groundbreaking platform aims to enhance the trade relationship between the Philippines and China, as China remains the largest import and export trade partner of the Philippines.
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“At MYEG, we are pleased that the advantages of deploying a Web3 + AI based solution, which is Ztrade in offering secure, more intelligent, and more cost-effective processing of cross-border trades are now also being recognised in the Philippines, besides in Malaysia and China,” said TS Wong, group managing director of MYEG.
Verification of Certificates of Origin
Wong is also Forbes Malaysia’s 48th Richest Man.
In 2022, China became the largest supplier of imported goods to the Philippines, accounting for 20.6% of total imports that year. In return, the Philippines exported goods worth $10.97 billion to China in 2021. The Zetrix Platform will enable the verification of Certificates of Origin for exports between the two countries, streamlining transactions and facilitating tariff exemptions under trade agreements like the Regional Comprehensive Economic Partnership (RCEP) and the ASEAN-China Free Trade Agreement (ACFTA).
The collaboration involves MYEG providing the Ztrade solution in the Philippines, along with ground installation, training, and customization support. CDEC, a valued trade and logistics solutions provider for BOC, will assist in integrating Ztrade into its platform to ensure a seamless user experience. The agreements will remain in effect unless mutually terminated.
Zetrix platform
Earlier, MYEG had partnered with East Logistic-Link Co., Ltd., an agency of the General Administration of Customs of China, to offer cross-border trade facilitation services on the Zetrix platform. This includes lodgment of certificates of origin and potentially other certificates relevant to cross-border trade, streamlining tariff computation, and customs clearance efficiency, especially within the RCEP.
The Ztrade service, leveraging blockchain smart contracts and AI, overcomes the limitations of traditional technology, offering a reliable and automated method for secure and efficient digitalization of trade clearance processing. It eliminates the need for cumbersome retro-verification, making trade hassle-free, seamless, faster, and simpler.
The deployment of Ztrade in the Philippines aligns with Malaysia’s support for a blockchain-based single window system, which facilitates the mutual recognition of digital certificates of origin, improving trade facilitation and reducing technical barriers for more efficient and secure processing of goods from Malaysia to China.
The deployment of the Zetrix Platform by MYEG in collaboration with the Philippines Bureau of Customs signals a significant step forward in streamlining trade flows between the Philippines and China. By leveraging cutting-edge blockchain and AI technologies, the Ztrade service aims to revolutionize customs clearance and foster greater trade relations between the two nations.
In photo: (Clockwise) – Enrique Y. Gonzalez (MYEG Philippines Inc), TS Wong (MY E.G. Services Berhad), Jason Gaw Cheng
(CDEC), President Ferdinand Marcos Jr., and Sec. Alfredo Pascual (Department of Trade and Industry) at the signing of the memorandum agreement in Petaling, Malaysia.