MYEG has entered into a collaboration and secured regulatory approval to deploy its blockchain-based customs clearance and processing services for trade flows between the Philippines and China.
The Group, together with its Philippines-incorporated companies, signed agreements for a collaboration with Philippines Bureau of Customs (BOC) and with Cargo Data Exchange Center Inc. (CDEC), paving the way for the Philippines to adopt the digital solution known as Ztrade – a first of its kind Web3 + Artificial Intelligence (AI) link between China and its trading partners – which runs on MYEG’s innovative Zetrix layer-1 blockchain platform.
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.
This groundbreaking 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 as well as potentially other certificates relevant to cross-border trade like food safety, quarantine, and bill of lading, thus enabling all data to be available accurately in near real-time, hence, increasing the efficiency of tariff computation and customs clearance, especially for trade within the Regional Comprehensive Economic Partnership (RCEP).
Leveraging Web3 technologies of blockchain smart contracts and AI, the Ztrade service can overcome the prevailing limitations of conventional technology architecture in providing a reliable and automated method of securely and effectively digitalising trade clearance processing whilst removing the cumbersome retro-verification currently practiced, thus making it hassle-free, seamless, faster and simpler overall.
TS Wong, 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 ASEAN and the RCEP region.”
Meanwhile, BOC Commissioner Bienvenido Y. Rubio said, “This Platform is a blockchain-based application that 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 and is expected to facilitate greater trade through seamless yet highly secure transactions between countries.”
