Facilitating Trade:
Improving Customs Risk Management Systems
In the OIC Member States
9
etc. Trade facilitation has been added to Customs objectives in recent years, and CAs are
increasingly taking over security role such as underpinning the WCO SAFE framework of
standards. CAs has two primary roles: revenue collection and security of their citizens related
to health, environment, products consumption, intellectual property rights, etc.
The variety of risks CAs is managing evolves accordingly provides an overview of types
of customs risks in five distinctive areas from revenue collection, public health, environmental
protection, fight against terrorism and fair competition.
Table 1: Origin of risks for different customs objectives
Revenue
Collection
Public
Health
Environmental
Protection
Fight Against
Terrorism
Fair
Competition
Non-declared goods ✔ ✔ ✔ ✔
Proper Tariff Classification ✔ ✔ ✔ ✔
Proper Valuation ✔ ✔
Proper Country of Origin ✔ ✔
Trade Policy Measures ✔ ✔ ✔
Proper Customs Procedures ✔ ✔ ✔
Intellectual Property Rights
(IPR)
✔
✔
Trade Agreements Compliance ✔ ✔
Money Laundering ✔
Environmental Crime ✔ ✔
Smuggling
Drugs and Precursors ✔
Weapons of Mass
Destruction
✔ ✔ ✔
Firearms ✔ ✔
CITES ✔
Nuclear and Radioactive
Materials
✔ ✔
High Customs Duty Goods ✔ ✔ ✔
Author’s compilation
2.1.3 Sources of Information for CRM
A risk-based approach relies on the collection, evaluation, and analysis of information in
different forms, of different types, and from different sources. Information supports decision
making at the different levels of a CRM approach4 : information is evaluated at strategic, tactical
and operational level. Table 2 shows the evaluation of the information on the strategic, tactical
and operational level.
4 Bocij P., Greasley A.: Business Information Systems: Technology, Development and Management for the e-Business, 3nd
Edition, Pearson education Limited, 2006, page 19-20.