Risk management is divided into three main principles as follows:
1. Risk Management has 3 types of risk such as:
- Risks which impact to revenue such as notification value, tariff code/rate and invoice regime;
- Risks which are impacted by trade facilities such as an individual or legal entity international trade agreements;
- Risks that impact to social protection such as drugs, illegal imports of goods and equipment.
2. There are three levels of risk assessment using the ASYCUDA System which is divided into risk values from 0 to 100 and has three colors to indicate each level:
- Level 1 is green and ranged from 0-30 with the lowest possible risk;
- Level 2 is yellow and ranged from 31-70 with a medium possible risk which is required certification and/or inspection;
- Level 3 is red and ranged from 71-100 with the highest risk which must provide verification documents and inspection.
3. The risk management cycle and databases are comprised of 6 steps: data collection, data summary, data analysis, define range and risk levels, and risk assessment and notification to apply and implement in borders. For example, the first step is to collect data from various trade reports and information from internal/external sources. The sixth step is to introduce the use of risky goods in different colors according to the Specific Duties Team of the Customs Department.
Further information of Department of Customs’ Risk Management Guidance, No 09045/DOC, dated 13 November 2019
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