Facilitating Trade:
Improving Customs Risk Management Systems
In the OIC Member States
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 Selection process. The selection process starts with the identification of potential
subjects for PCA. In most of the cases, the company is the primary entity used for
auditing in the PCA process. In some of the cases, CA uses other entities as transporters,
declarants or vehicles and persons. The selection process is based on risk assessment,
identified risk areas related to PCA (valuation, tariff, origin, etc.) and periodic analysis
of entities based on the possible risk that is identified. The selection process of the
entities that will be part of the PCA is based on risk profiles developed on intelligence,
trade trends, and high-risk priority areas defined in the previous step. The New Zealand
CRM Department to implement the right selection process has close collaboration with
other departments dealing with valuation, tariff and non-tariff measures, intelligence,
and investigation that have information about specific entities as a potential subject for
PCA.
 Planning PCA for the specific entity is the second step conducted in the process. The PCA
department starts with the research to define the possible non-compliance activities of
the audited entity having in mind risk areas and risk profiles from the previous step.
This step of the process is part of the preparation of customs auditor to focus his control
on the most critical aspects of the work of audited subject. The outcome of this step is
the clear PCA checklist that will be used as a guide in the next step of the process.
 Conducting PCA is the third step in the process of auditing based on collaborative and
cooperative relationship. The process is conducted based on the prepared plan and
focusing control on auditee’s records and other supporting documentation in addition
to interviewing critical persons in the company. The auditor makes verification of all
critical documents to determine the accuracy, correctness, and authenticity compared
with customs declarations based on accounting books, and all documents being kept by
the auditee.
 Conclusions, reporting, and feedback is the last step conducted as a part of the PCA
process. The auditing team prepares a final report presenting the results from the PCA.
This report is not used only as a recommendation for future steps and repeat audits, but
also as a feedback to the CRM to be used for the improvement of risk profiles.
3.2.2.8 NZCS CRM use of IT
Joint Border Management System (JBMS) is supporting the overall CRM cycle. Integration of the
business intelligence and datamining allow further enhancement of the CRM functionalities. The
system has two components – the Trade Single Window (TSW) and additional risk and
intelligence capability. Customs and MPI have finalized the phased implementation of these
components in 2015/16. The progressive rollout of functionality enables the successive phases
of JBMS to be tested systematically before the functionalities are integrated, mitigating the risks
that are inherent in any major IT modernization programme. The remaining related to CRM
functionalities delivered in JBMS’s final major release was built and entered a testing phase in
2015/16. Testing progressed slower than was originally planned, resulting in a delay in its
implementation. As a result, Customs and MPI decided in late 2015 to decouple the Risk and
Intelligence tools from the next release to focus on completing TSW – due to the benefits it
provides to industry and the fact that existing risk and intelligence tools meet current business
requirements for risk management57.
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