Customs Declaration Processing System Detailed User and ...

DETAILED USER & TECHNICAL REQUIREMENTS FOR CDPS
AND USE-CASE MODELS
Ref: PHASE V
- The principal difference between international/national and local profiling is that international/national
profiles are mandatory for all customs offices whereas local profiles only concern a single customs office
or a small group of offices. However, information from local profiles should be used as part of the
general risk analysis, and where appropriate, upgraded to national status. All profiles should be reviewed
on a regular basis. For security purposes, steps should be taken to identify those authorised to change
profiles, at both levels.
4.3.2 Risk management within the customs authorities
4.3.2.1 The context
- Risk management within customs authorities can be strategic, operational or tactical. It should be
remembered that the risk management process can apply across all of these levels.
- Strategic risk management - by studying comprehensive information, Customs administrations can
identify areas of risk, sift out those of minor importance, and intervene only where experienced and
practical judgement indicates it is necessary. Risk areas in the Customs context can include social issues
(exclusion of drugs, pornography, etc.), import/export prohibitions and restrictions (e.g. CITES), public
health, environment, commercial policy measures (e.g. IPR, GSP), quotas, and duty and tax issues.
- Operational risk management - is the determination of the level of control necessary to deal effectively
with the assessed risk. An example of this is determining the audit controls applied to an importer or
how to deploy limited staff and equipment effectively. Using this approach the customs authority moves
from being a "gatekeeper" checking every movement, to checking only selected movements which
demonstrate the greatest risk.
- Tactical risk management - is used by officers at their workplace in dealing with immediate situations.
Using set procedures combined with intelligence, experience and skill, they decide which movements
require greater controls.
4.3.2.2 Selectivity, Profiling and Targeting
- Selectivity, profiling and targeting are integral parts of risk management. Selectivity criteria for dutiable
goods include the history of the importer, exporter, carrier, agent, etc., the origin and routing of the
goods, and prohibitions or restrictions. Risk indicators are specified selectivity criteria such as: specific
commodity code, country of origin, country whence consigned, licensing indicator, value, trader, level of
compliance, type of means of transport, purpose of the stay in the customs territory, financial
consequences, or financial situation of the trader/person.
- This is the process that will determine whether or not a particular consignment or person needs looking
at more closely. In an automated environment four selectivity filters can be applied, namely
international, national and local profiles and a random selection system.
- The system designer should be aware that for building up a set of profiles the system needs to be flexible
and capable of handling not only simple individual data elements but relatively complicated
combinations of data elements as well. Using combinations allows Customs authority to fine-tune its
targeting capabilities. Thus, Customs authority might, for example, only want to select a particular
commodity if it comes from a particular country and not if it comes from any other country. Annex 3 and
Annex 4 to this document outline the conceptual approach of a selectivity system (see Chapter 8).
- The principal difference between international/national and local profiling is that international/national
profiles are mandatory for all Customs offices whereas local profiles only concern a single Customs
office or a small group of offices. However, information from local profiles should be used as part of the
general risk analysis, and where appropriate, upgraded to national status. All profiles should be reviewed
on a regular basis. For security purposes, steps should be taken to identify those authorised to change
profiles, at both levels. The random selection system uses an algorithm to select a declaration for further
examination by Customs. It is also important for the system to allow for monitoring of the co-ordinated
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