Malaysian digital services company MY E.G. Services Berhad (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.

MYEG said in a statement on Thursday that the group, together with its Philippines-incorporated companies, signed agreements for a collaboration with Philippines Bureau of Customs (BOC) and Cargo Data Exchange Center Inc. (CDEC).

This paves 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, MYEG said the Ztrade service can overcome the prevailing limitations of conventional technology architecture in providing a reliable and automated method of securely and effectively digitalizing trade clearance processing whilst removing the cumbersome retro-verification currently practiced, thus making it hassle-free, seamless, faster and simpler overall.

It is noted that Malaysia, through the Ministry of Investment, Trade and Industry (MITI), had in April announced its support for the adoption of a blockchain-based single window system for the mutual recognition of digital certificates of origin to improve trade facilitation and reduce technical barriers for more efficient and secure processing of goods originating from Malaysia to China.

“At MYEG, we are pleased that the advantages of deploying a Web3 + AI-based solution i.e. Ztrade in offering faster, 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,

“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 Association of Southeast Asian Nations (ASEAN) and the RCEP region,” said TS Wong, Group Managing Director of MYEG.

Meanwhile, BOC Commissioner Bienvenido Y. Rubio said that 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).

He said that 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.

CDEC President Jason Gaw Cheng added that the Zetrix platform will increase the global trade competitiveness of the Philippines and improve ease of doing business for the country’s traders and logistics service providers.

According to the statement, the roll-out of Ztrade in the Philippines also marks the broadening of MYEG’s presence as a key enabler of government digitalization 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.

The group currently 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.

Developed by MYEG, Zetrix is a layer-1 public blockchain that facilitates smart contracts and delivers privacy, security and scalability.

Zetrix’s cryptographic infrastructure can be introduced to multiple industries to connect governments, businesses and their citizens to a global blockchain-based economy.

The cross-border and cross-chain integration with China enables Zetrix to serve as a blockchain gateway that facilitates global trade by deploying critical building blocks for Web3 services such as blockchain-based identifiers (BID) and verifiable credentials (VC).

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