Customs Regulatory Control Study Guide
3. Part 2: Customs Compliance Management
3.4. Case Studies in Risk Management Implementation
The case studies below have been adapted from the WCO Customs Risk Management Compendium and provide a snapshot of the experience of two Customs administrations as they modified their systems and processes and incorporated a Risk Management Framework to underpin their core functions.
Case study 1 – Risk Management ImplementationJamaica Customs Agency (JCA) |
The Jamaica Customs Agency (JCA) has implemented a proactive risk management process. It established a Risk Management Unit responsible for:
n Implementing risk management plans and processes.
n Gathering and collating information; identifying, analysing and reporting areas of risk.
n Developing targets and profiles.
n Establishing and maintaining a risk management database.
n Monitoring the application of risk management remedies across the Agency.
The JCA formulated an Agency Risk Management Policy (2014) to ensure that practices are aligned with the RKC and other international benchmark guidelines, such as the WCO’s SAFE Framework and the Revised Arusha Declaration.
The table below compares the JCA’s previous Customs controls with its current risk-based approach and includes lessons learned.
|
Previous Approach |
Risk-based Approach |
|
100% examinations conducted |
Focus on high-risk areas, with minimal intervention in low-risk areas Increased focus on post-transaction compliance assessment Balance between regulatory control and trade facilitation |
|
Lack of coordination and structure within operating environment – “fragmented” |
Strategic and holistic approach Centralised risk management coordination |
|
Focus on identifying noncompliance |
Focus on identifying both compliance and noncompliance Focus on assessing the integrity of trader systems and procedure |
|
Lack of formal feedback mechanism, limited incentives for compliance |
Consultative, cooperative approach Rewards for recognized compliant traders Dual enforcement/client service focus |
|
Unilateral approach & inflexible procedures |
Simplification of procedures with appeal mechanisms |
|
Limited automation & IT integration |
Information management focus Pre-arrival import clearance Greater integration of systems Intelligence driven |
Through the application of risk management techniques and modern practices supported by improved Information Communication Technology (ICT), the implementation of the Automated System for Customs Data (ASYCUDA World) in 2016 centralized the JCA’s operations and created a coordinated approach to risk management across border regulatory agencies.
Implementing a risk management framework has delivered measurable improvements across every dimension of the JCA’s operations — for traders, passengers, and the Agency itself:
|
Improved trader compliance with laws and regulations |
|
Speedy clearance/processing for legitimate traders and passengers |
|
Approximately eighty (80%) of commercial cargo is released from JCA controls within 24hrs |
|
Establishment of recognition programmes for compliant traders e.g., Authorised Economic Operators (AEO) |
|
Greater transparency in the Agency’s decision-making process |
|
Improved cooperation between traders and the JCA |
|
Improved agency efficiency and stakeholder satisfaction |
|
Better coordinated activities with other border regulatory agencies |
|
Improved risk identification, targeting and selectivity |
|
Key lesson Transitioning from a ‘gatekeeper’ model to a risk-based approach — supported by ASYCUDA World and aligned with the RKC and SAFE Framework — delivered measurable improvements in compliance, clearance speed, and cooperation with the trading community. |