Facilitating Trade:
Improving Customs Risk Management Systems
In the OIC Member States
5
Figure 1: Global supply chain and the role of Customs Administrations
Author’s compilation
“The United Nations Conference on Trade and Development (UNCTAD) estimates that the
average customs transaction involves 20-30 different parties, 40 documents, 200 data elements
(30 of which are repeated at least 30 times) and the re-keying of 60-70% of all data at least once.
With the lowering of tariffs across the globe, the cost of complying with customs formalities has
been reported to exceed in many instances the cost of duties to be paid. In the modern business
environment of just-in-time production and delivery, traders need a fast and predictable release
of goods.3 ” It is clear that the OIC MS average is below the average from theWorld for trade costs
and time regarding border and documentary compliance (see section - Conceptual
Framework).
1.1 The Methodology of the Study
The methodology used in this Study is conducted in following stages:
 Desk research was conducted a literature review, including a review of the relevant
literature as well as the works, documents, and experience of relevant international and
regional organizations. The objectives of the conducted desk research were to review
trends in CRM experiences globally, locate and analyze CRM systems in three non-OIC
countries to develop three case studies related to their CRM and develop lessons learned
and critical success factors/challenges arising from the implementation of CRM in
different countries.
 Data collection and systematization as the second stage of the methodology covered
creation and dissemination of the survey to the OIC member states, but also collection,
systematization and analyzing of the statistical data from internationally available
databases as World Economic Forum’s Enabling Trade Index (ETI); Organization for
Economic Co-operation and Development’s (OECD) Trade Facilitation Indicators (TFIs);
World Bank Logistics performance index. The objective of the data collection and
3 9th WTO Ministerial Conference, Bali, 2013, Briefing note: Trade facilitation — Cutting “red tape” at the border,
(last check: September, 2017)