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Facilitating Trade:

Improving Customs Risk Management Systems

In the OIC Member States

219

Legislation framework for

cooperation between

border agencies

GDP per Capita

0.357

Low

Cost to export:

Documentary compliance

(USD)

Time to export: Documentary compliance (hours)

0.757

Strong

Cost to export: Border

compliance (USD)

Cost to import: Border compliance (USD)

0.694

Strong

Source: Author’s compilation

The results from this analysis between the CRM variables and other analyzed variables are as

following:

LE IT System

. According to the correlation analysis based on Pearson's correlation

coefficient, customs administrations that have comprehensive LE IT system also use

integrated CRM system and more extensive coverage of the whole CRM cycle (strong

correlation between these variables). Additionally, to this, there is a strong negative

correlation (-0.604) between having LE IT system and having CRM embedded into the

CDPS which indicate and prove the previous results that having LE IT system require

integrated CRM system. There is a negative correlation between LE IT system with total

time to export (-0.271), so CAs using more comprehensive LE IT system have less time

to export. This analysis also shows that having LE IT system has a low negative

correlation (-0.368) with the participation of customs revenue in total tax revenue

collected in the country. This is expected because of revenue oriented administrations

focus more on the revenue side and less on security side (as a basis of LE IT system).

CAs with strong CRM policy and strategic governance has implemented LE IT system

(medium correlation of 0.410). LE IT system is also related to the higher ranking of

logistics performance index. Related to UN trade facilitation score, there is a medium

correlation (0.471) which means that CAs with integrated LE IT system have a better

UN Trade facilitation score, associated with CRM (0.300), pre-arrival processing (0.378)

and AEO (0.333).

CRM Cycle coverage

. Correlation analysis related to the coverage of the CRM cycle

indicate that CAs with CRM policy and strategic governance have more extensive

coverage of CRM cycle (0,558). Additionally, having in place integrated CRM system

allows better coverage of the whole CRM cycle (0.492). There is also low, but negative

correlation with: Time to export: Documentary compliance (hours), Total Costs to

Export (USD), Trading Across Border Ranking, Logistics performance index and Total

Time to Export (hours). Extensive coverage of CRM cycle brings fewer costs for traders

and higher logistics performance index and trading across the border ranking. The

analysis when it comes to GDP per capita (0.371) show that more coverage of CRM cycle

is directly related to higher GDP per capita.

Integrated CRM system

. According to this analysis, CAs that has an integrated CRM

system has a strong positive correlation with following stages of CRM cycle: Risk

Identification (0,551), Risk Analysis (0,551), and Evaluation of outcomes/feedback

(0,626). It is important to emphasize that the most critical feature of an integrated

system CRM system is enabling CRM more effective and efficient in the evaluation of

outcomes and feedback. There is a high negative correlation (-0,864) with CRM module

embedded into CDPS, that is expected and logical. Integrated CRM system is correlated

with CRM Policy and strategic governance (0.330), CAs with stronger CRM Policy and

strategic governance are using integrated CRM system. OIC MS CAs with integrated CRM