Facilitating Trade:
Improving Customs Risk Management Systems
In the OIC Member States
6
systematizationwas to document the current status of CRM systems in the OIC countries
and develop benchmarking criteria to compare global trends with OIC MS.
 Data analysis is the third stage of the conductedmethodology of the study that includes
analyzing by different statistical tools as descriptive statistics to compare different
variables and correlation analysis to find the influence of different aspects of CRM
development in OIC MS with trade costs, country rankings related to trade facilitation
and Gross Domestic Product (GDP) per capita.
 Field visit case studies. This stage includes field visits to three countries from each
geographic region of OIC conducting detailed face-to-face interviews with
representatives from relevant departments in customs administration. The objectives
of this stage are to identify the major steps that are necessary to achieve an efficient and
effective CRM in these countries. The results from these case studies are used to draw a
series of conclusions and recommendations to identify best practice and opportunities
for further improvement of CRM across the OIC member states.
1.2 The Sections of the Study
The second chapter of the Study introduces the Conceptual Framework around the Customs
Risk Management (CRM), its evolution and adaptation to the specific needs of CAs that operate
in a dynamic international trading environment. It must be stated at this point that the design
of the CRM conceptual framework requires the commitment simplifying processes of the senior
customs management at the strategic level, which is a prerequisite for the successful operational
and tactical application of any risk management. The Conceptual Framework considers the
external and internal context in which the CRM activities are managed. The focus of this section
is on the goals, objectives, strategies, scope, and parameters of the CRM. External factors, such
as the legal, economic and cultural environment and internal factors, such as organization
structures, objectives, strategies, and capabilities of the CRM are part of interest as well. The
framework also explains the risk management policy such as alignment of the CRM objectives
with any law enforcement strategies, the definition of roles and responsibilities, resource
allocation and CRM performance measurement.
In the third section Global Trends and Best Practices are presented the global trends and
practices related to the Customs Risk Management objectives, the organizational aspects,
operational structure, and legislative reform necessary to enforce customs control. This section
also includes the results from the analysis of empirical data related to trade costs compared with
global averages, OIC MS average and different groups of countries that already have
implemented different policy measures associated with CRM. In this chapter, three non-OIC
cases are described, and the benchmark criteria are used for comparison with the global trends
in OIC MS.
The fourth section of the Study describes the results from the analysis of the OIC Member States’
CRM data and information collected. In this chapter the following analysis is presented:
 the stage of Implementation of CRM for Each OIC Member State according to responses
from the survey and available data analyzed;
 comparative analysis of CRM related to the implementation status of CRM, post-
clearance audit, collaboration with other Government's agencies;
 comparative study of CRM standards, international agreements, and membership in
international organizations;
 CRM performances according to the economic development of the OIC MS, coverage of
the CRM cycle; and