Risk management in Customs procedures

The measure in the WTO context: The concept of risk management in Customs procedures can be considered under Article VIII of GATT 1994 (Fees and Formalities connected with Importation and Exportation). In particular, paragraph 1(c) recognizes “the need for minimizing the incidence and complexity of import and export formalities and for decreasing and simplifying import and export documentation requirements”. WTO members consider the introduction of risk management techniques in Customs procedures as a means to expedite clearance of goods. The WTO reference document for this topic is TN/TF/W/43 (see latest revisions under Expedited/ Simplified Release and Clearance of Goods.

A common characteristic of Customs work is the high volume of transactions and the impossibility of checking all of them. Customs administrations therefore face the challenge of facilitating the movement of legitimate passengers and cargo while applying controls to detect Customs fraud and other offences.

Customs services find themselves increasingly under pressure from national governments and international organizations to facilitate the clearance of legitimate passengers and cargo while also responding to increase in transactional crime and terrorism. These competing interests mean that it is necessary to find a balance between facilitation and control.

Customs controls should ensure that the movement of vessels, vehicles, aircraft, goods and persons across international borders occurs within the framework of laws, regulations and procedures that comprise the Customs clearance process. Many Customs administrations use risk analysis to determine which persons, goods, and means of transport should be examined and to what extend.

Risk analysis and risk assessment are analytical processes that are used to determine which risks are the most serious and should have priority for being treated or having corrective action taken.

Inspection selectivity programmes make use of risk profiles, which have been established in a process of risk analysis and assessment. Risk profiles encompass various indicators, such as; type of good, know trader and compliance records of traders, value of goods and applicable duties, destination and origin countries, mode of transport and routes and are built based on characteristics displayed by unlawful consignments (or offending passengers).

These profiles then drive inspection selectivity programmes, through which data declared will be analyzed on the basis of the identified risk parameters and

consignments, and depending on the selected risk level, goods and persons are routed through different channels of Customs control:

- Green Channel =Immediate release without examination

- Yellow Channel =Documentary check

- Red Channel=Physical examination on of goods and documents

- Blue Channel=Examination at a later stage (post audit)

Risk management techniques are a useful means to ensure enforcement, security and trade facilitation at the same time. By selectively categorizing goods and passengers for verification a more rapid release and clearance can be achieved. Consignments and persons considered as ‘low-risk’ based on the risk profile attract minimal attention and intervention from Customs and can be processed quickly. Furthermore it enables Customs staff to concentrate their efforts and resources on fewer consignments.

Date: 2015-12-24; view: 1166