Facilitating Trade:
Improving Customs Risk Management Systems
In the OIC Member States
52
procedures, including international transit, use pre-arrival information for early controls with
the AW Selectivity module. Excise declarations are currently processed on paper.
Undervaluation of imports presents a significant risk to the KC. KC has developed an AW
Valuation module for managing lists of specific goods with an additional HS sub-classification of
four extra digits. The sub-classification helps distinguish customs values of specific goods, i.e.
brands, models, used or new, and so on. Currently, there are few thousand codes maintained for
that purpose in the KC. The Monitoring Office also checks declarations and clearance activities
to minimize undervaluation risk.
Post Clearance Audit selects trade operators based on risk analysis. Depending on the level of
risk, the PCA decides to undertake desk audit and/or visit the company, and at the same time,
they are opening a case in the LES. The first activity is always a preparatory task (desk audit)
assigned to each member of the team including the team leader. If the outcome of the
preparatory tasks identifies additional risks, the Head of the PCA can extend the scope of the
controls to include these other/additional risks. Depending on the findings, the audit officers
may prepare an audit report to be shared with the company. When the audit has resulted in the
identification of debt, feedback is sent to the relevant unit for further processing, or a referral if
the scope of the finding exceeds the administrative area of responsibility of Kosovo Customs.
3.2.1.7 Performance measurement in Kosovo CRM
Currently, the RAU is managing approx. 500 active risk profiles (average 3-5 risk indicators) in
the AW. In total, approximately 1200 profiles were applied in the CDPS’s from 2005 till 2017.
The RP includes the automated randomselectivity - 5%of total CD under IM4 procedure (Import
declaration, direct import). Before applying the RP in the AW, the RAU performed tests on CD
historical data in the data warehouse/business intelligence system (DW/BI). The test is
performed for two or more RP in parallel, and the RAUmeasures scoring and performance of RP
and RI before RP is entered in the AW. The efficiency of the risk profiles is given in Figure 16.
Figure 16: Efficiency of the risk profiles in Kosovo Customs
Source: Author’s compilation