Facilitating Trade:
Improving Customs Risk Management Systems
In the OIC Member States
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It will be necessary to design AEO validation processes and quality accreditation procedures
that offer incentives to businesses to ensure that they see a benefit to their investment in good
security systems and practices. Enhanced AEO incentives will need to be devised covering inter
alia fast-track customs clearance; reduced guarantees; simplified procedures; reduced rates of
examination, etc.
Policy Option 7: Develop/update Customs Business Strategy to focus on foreseeable
issues; To fully benefit from the Business Strategy, the goals and objectives should be
accompanied by tangible KPIs to enable periodic assessments of the progress being made and
to take corrective actions if necessary. Specific training in defining KPIs according to the
management position of the intended users should be provided, eventually making use of the
WCO mechanism. Once an updated Business Strategy document should be endorsed and
published, it should serve as a useful reference tool supporting every-day decision-making by
all top-level and middle-level managers in Customs. To ensure its usefulness it has to be
regularly reviewed and updated (governed according to best practices). As an output of the
Strategy, an Action Plan must be developed with objectives, resource allocation (human,
technical and budget impact), KPIs, their starting value and desirable value to achieve the
strategic objectives. Deadline, the timeframe for review and evaluation of the progress must also
be addressed in the Action Plan. The Action Plan produced must tend to focus on documenting
existing functional responsibilities rather than articulating a clear strategic vision for the future.
In many Customs administrations, there is a lack of planning on multi-annual strategy - the
objectives and the development.
Policy Option 8: Develop a comprehensive CRM strategy that supports the Intelligence
and risk assessment approach; CAs still need to develop and implement a CRM specific
Strategy to introduce an integrated approach to CRM and targeting based on WCO Risk
Management Framework. The strategy should identify major risk management framework
targets with plannedmaturity levels to be achieved for the certainmilestones. That will facilitate
the implementation of the WCO SAFE initiatives for Supply Chain Security.
Policy Option 9: Develop appropriate KPIs that are linked to the CA vision, goals,
objectives and KPAs; Review the CA information and statistical and collection methodology to
identify areas where enhanced information would be beneficial. It is also necessary to define the
strategic key performance areas that are linked to the administration ’s vision, goals, objectives,
and performance indicators. Assessment of the performances information is available on the TF
(clearance times, processing times, the contribution of other border management agencies, etc.);
CAs must ensure input from the senior managers and key stakeholders to determine and
develop performance indicators, and analysis methodologies.
6.2.2 Organization and Management
Policy Option 1: Repositioning the CRM higher in the CAs organizational structure;
CRM functions should ideally be centralized in one dedicated functional entity, such as a
department, focusing on all cross-functional departments and possible risks.
Policy Option 2: Establish a Risk Management Committee. Risk Management Committee is
collectively responsible for the preparation of the Risk Management Strategy, implementation
of the risk management concepts and the strategic review of the overall risks. The Risk
Management Committee oversees the risk management process and ensures its full integration
in all areas of customs work. It should hold regular monthly meetings at which the effectiveness
of each risk management element is assessed to identify problems and recommend appropriate
improvements. By suggesting adequate corrections, it will ensure the correct balance between