Thursday, May 14, 2026
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Customs, LTO launch digital system to curb vehicle smuggling

The Bureau of Customs and the Land Transportation Office (LTO) inaugurated a new digitalized platform Monday designed to streamline motor vehicle importation and eliminate smuggling through real-time data integration.

The Electronic Certificate Payment System, or ECPS, integrates the submission, validation and transmission of vehicle data into a single automated workflow.

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Department of Transportation Secretary Banoy Lopez said the initiative follows a directive from President Ferdinand Marcos Jr. to adopt a whole-of-government approach to digitalization.

“Through this initiative and program, we can say that the process for our vehicles will be eased. The President repeatedly says we need a whole-of-government approach for digitalization,” Lopez said during the inauguration.

The system ensures that only tax-compliant and validated information is transmitted to the Land Transportation Office for registration.

Lopez said the program is a significant help to the Department of Transportation and the Land Transportation Office because it will allow authorities to stop vehicle smuggling.

Bureau of Customs Commissioner Ariel Nepomuceno said the system serves as a deterrent by closing historical gaps in the importation process.

“This is good news and bad news. Good news for those who want the country to be spared from the abuses of smugglers, especially those who enjoy the lapses and the gaps in the systems before. But bad news to the smugglers because it will be very difficult to almost impossible now to do smuggling of vehicles,” Nepomuceno said.

Land Transportation Office assistant secretary Markus Lacanilao said the ECPS allows both agencies to rely on shared and verifiable records. Assistant Secretary Lacanilao explained that when a vehicle is presented for registration, the documentation must correspond to a legitimate recorded importation, which strengthens the integrity of the registration process.

The Chamber of Automotive Manufacturers in the Philippines and the Association of Vehicle Importers and Distributors Inc described the platform as a “game changer” for the industry.

The groups said the streamlined solutions facilitate the efficient conduct of business within the automotive sector.

Officials anticipate a high success rate in capturing duties that were previously lost to illicit trade. Total importation efficiency is expected to rise by several percent as manual verification is phased out.

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