Facilitating Trade:
Improving Customs Risk Management Systems
In the OIC Member States
2
physical intervention for these countries is 7.60%, and 3.40% success rate of physical
inspection.
There is a correlation between full or higher levels of CRM implementation to lower rates of
physical examinations and higher rankings on the World Bank Trading Across Border index.
Turkey has a fully implemented CRM and reports physical interventions of 12.27% and has a
trading across borders ranking of 70.
Nigeria provides a stark contradiction with an advanced stage CRM reported but red lane
interventions at 81.22%and a trading across borders ranking of 181. According to theWB Doing
Business Trading Across Borders 2017 data, the Republic of Albania is the best performer
among the OIC MS and globally ranked on 65th place, but in WB LPI overall score is 2.41, ranked
117 out 160 countries.
In the context of economic development and CRM systems it is interesting to highlight that of
the eight high-income OIC member countries, 7 of them have a fully implemented CRM and the
8th is in the advanced stage. Of the 16 low-income members, 2 have full CRM, 2 advanced, 10 had
achieved medium level performance CRM and 2 had no CRM. As previously stated the path to
full CRM implementation is long and arduous as well as expensive with highly developed
technology and software used to assist customs administrations with their intelligence led risk
profiling and constant monitoring and evaluation of feedback data for refining selectivity. The
higher income countries can afford this investment where lower income countries are restricted
to cheaper and less sophisticated systems such as ASYCUDA or have no system at all.
However, there are many other challenges that are not brought about just by the absence of
budget support or investment. The following key areas for attention by policy makers and the
executives of OIC Customs Administrations will assist with their CRM progress to full
implementation as follows:
 Legal, strategic and other mechanism supporting CRM system – Ensure that Customs
Laws and other allied legislation is alignedwith a variety of international standards such
as the Revised Kyoto Conventions and E-commerce and Cyber Security laws so that
interagency and international information and data exchange can occur as well as
Customs to Trade Cooperation and partnerships existing in the form of trade facilitation
mechanisms such as the Authorized Economic Operator concept.
 Organization and management – Ensure that the framework for CRM to function as a
technical component of the Customs Administration is in place with a CRM Steering
Committee overseeing a CRM Department that integrates intelligence, investigations,
compliance and monitoring analysts to support the day to day customs field operations
as well as strategic and tactical responses. Implementation of appropriate Human
Resource policy and training as well as the Risk Management Cycle is imperative for
management as per the following paragraph.
 Risk Management Cycle – Clear policy direction and application of a methodology that
identifies, analyses, evaluates and prioritizes the risks so that decisions on how best to
mitigate those risks with resources can be made. Strategic decisions to accept risks that
cannot be mitigated on a regular or constant basis are also made.
 Monitor and Review – A concerted effort to monitor and review the application and
effectiveness of the CRM on a constant basis so that risk targeting parameters can be
adjusted and more efficient interventions planned and executed in a timely manner.