The situation
GALCO is a cargo handling company offering customs bonded warehousing, import and export cargo handling, customs brokerage, freight forwarding and ground handling. Its main bonded warehouse is at Mactan-Cebu International Airport, and since 2025 it has also operated a customs facility warehouse at Clark International Airport. Its airline clients include Turkish Airlines and EVA Air, and it holds TSA accreditation and EU RA3 validation.
PSI was the first customs bonded warehouse in the NAIA complex and has operated at the airport since 1982, across about five hectares. Its services include e-transit cargo and mail handling, cold storage and dangerous goods handling. Its airline clients include KLM, FedEx and Cebu Pacific.
DRS was founded in 2019 inside the GALCO and PSI group to develop warehouse management systems and business applications, and it supports these systems under commercial agreements. The airlines named here are clients of GALCO and PSI, not of DRS.
The challenge
Bonded warehouses hold goods on which duties have not yet been paid, so every movement is subject to customs rules. The inventory must be accurate at all times, available to the Bureau of Customs and traceable to each compartment, across operations that never close.
The systems had to serve cargo operations with different sites, cargo types and airline clients, and keep running as the operations expanded to new facilities.
What we built
- Recording of cargo as it is received into bonded and non-bonded storage
- Tracking of goods by location, compartment and status, using a coding system
- Support for releases and withdrawals, with the records each one requires
- Inventory records and books of accounts accessible to the Bureau of Customs
- Production of the annual stock inventory report and other required records
- Operational reporting for warehouse management
- Ongoing support and changes as the operations added facilities
The rules it runs under
Customs Administrative Order 01-2022 requires every customs bonded warehouse to keep a computer-based inventory system for bonded goods that the Bureau of Customs can access, to maintain principal books of accounts for goods delivered and withdrawn, to track goods by compartment using a coding system acceptable to the Bureau, and to submit an annual stock inventory report. In a bonded warehouse, an inventory error is a regulatory exposure, not an inconvenience.
Source: Bureau of Customs, Customs Administrative Order 01-2022
What it proves
- DRS builds software for operations where downtime and errors have real consequences.
- DRS works within regulatory rules and builds them into the system.
- DRS supports systems over years, not weeks.
- DRS understands operations, not only technology.
