Archives For Customs

Arg-aduana

A customs fraud that allegedly allowed a criminal network to steal millions from Argentina’s government looks eerily similar to how some of Venezuela’s private businesses and corrupt government officials have also benefitted from that Andean nation’s efforts to manipulate currency values.

Argentine authorities conducted 23 simultaneous search warrants and arrested 10 individuals accused of defrauding the state by more than $300 million between 2012 and 2015, according to a July 11 press release by Argentina’s Security Minister.

The scheme was rooted in the difference between the dollar’s official value against the Argentine peso and its informal black market price. Authorities claim that 55 front companies were used to falsify Anticipated Sworn Declarations of Importation (Declaraciones Juradas Anticipadas de Importación – DJAI). These documents allowed import companies to buy dollars from the government at a subsidized price in order to buy foreign goods. Argentina’s previous administration artificially boosted the value of a peso, so an official dollar was worth much less than on the black market. But under the scheme, DJAIs were produced for goods that were never imported and with the sole purpose of buying cheaper official dollars, before selling them at a much higher price on the black market exchange.

The investigation, initiated last year after an official complaint from the director of Argentina’s customs agency, focuses on a network of textile companies owned by members of Buenos Aires’ Korean community, according to Infobae.

Infobae, which described the well-structured network integrated by professional accountants as a “mafia,” notes that not a single official has been charged for corruption, even though the official press release admits that bribes were paid.

The scheme currently investigated in Argentina illustrates how organized crime can profit from government monetary policy, as well as a good dose of corruption.

The sum involved may appear large, but other regional country’s losses to such frauds are measured in percentages of the gross domestic product and reach the highest levels. In Guatemala, for example, corruption reached as high as the president, who was directly leading and benefitting from a vast customs fraud, according to government investigators prosecuting the case.

Argentina’s case, however, appears to have more similarities to Venezuela. Indeed, the latter’s government control of currency exchange rates and the sale of dollars was exploited to embezzle as much as $70 billion in a decade, reported The New York Times. And following a regional pattern, corruption stood as a primary factor enabling these frauds.

Source: InsightCrime.org and WCO IRIS Portal

A Hong Kong woman was caught late last month crossing the border into the mainland with an impressive 102 iPhones taped to her body — apparently, Shenzhen customs officers became a wee bit suspicious after noticing the woman’s unusually bulky clothing and strange stride.

They ordered her to take a walk through the X-ray scanner, which promptly sounded its alarm. A check revealed not only more than a hundred iPhones, but also 15 Tissot watches that were taped around her chest. In total, the smuggled items weighed about 20 kilograms, according to an Oriental Daily.

WCO Transit GuidelinesYes, the info junkie I am – this is what I was really after! The WCO chose to delay the real stuff. The WCO has published its Transit Guidelines, and a substantial compendium its is. Click here to access/download the file (5,4MB)! The WCO Secretary General, Kunio Mikuriya, has noted the possibility of developing a separate publication on transit encompassing national or regional best practices.

At the recent conference on transit, particular attention was given to the difficulties faced by landlocked developing countries.  During a special session on the issue, the United Nations Office of the High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States (UN-OHRLLS), several concrete suggestions were made on how to turn land-lockedness into land-linkedness.  The Director General of Paraguay Customs indicated that trade transactions in his country incur 30% additional costs due to Paraguay’s geographical limitations.  The Representative from UN-OHRLLS confirmed that on average, LLDCs bear up to 40 % additional costs on trade transactions.  The investment being made in hard infrastructure, such as roads, rail infrastructure, intermodal logistical hubs and dry inland ports, remains one of the main priorities in order to improve the situation.  Participants confirmed the need for harmonization and simplification of border control procedures, as well as the promotion of ICT for the management of transit systems.  This is of significant importance to LLDCs in Africa of which there are eight!.

Representatives from  several of Africa’s Regional Economic Communities present at the Conference, such as the Common Market for Eastern and Southern Africa (COMESA) and the Economic Community of West African States (ECOWAS), also highlighted the need to ensure that establishment functioning legal frameworks are in place to address the main challenges of regional transit regimes.

The use of existing information and communication technology (ICT) solutions was also raised at the Conference.  Today, numerous technologies are available to secure the movement of goods, such as electronic Customs seals which are actively used on containers transported from China to Europe and have proved to be reliable and efficient.  The regional electronic tracking system used for goods transiting between Uganda, Kenya and Rwanda was also mentioned as a successful project resulting from cooperation between neighbouring Customs administrations.  The Representative from ECOWAS informed participants that work has started to connect the IT systems of ECOWAS Members.  Regarding the challenges related to interconnectivity, the benefits of global implementation of the WCO Data Model were pointed out.

Railway transport is playing an increasingly important role in moving goods between countries in Eurasia, as explained by the Representatives from China and Russia Customs as well as the Representative from the Intergovernmental Organisation for International Carriage by Rail (OTIF).  It was pointed out that block trains now bring goods from China to Europe through Russia and Central Asian countries within a fortnight; four times faster than via maritime routes.  It is worth nothing that in the absence of a global instrument regulating the movement of trains across borders, which would obviously be of benefit to transit operations, bilateral agreements are the norm.

Transit systems, such as the European Union’s New Computerised Transit System (NCTS), the Convention on International Transport of Goods Under Cover of TIR Carnets (TIR Convention) and relatively new transit facilitation initiatives in the Eurasian Economic Union (EEU) and the Central Asia Regional Economic Cooperation (CAREC), were also discussed in detail.  Turkey, a user of two transit systems – NCTS and TIR – highlighted the importance of digitalization of the transit processes and explained its involvement in the e-TIR project aimed at providing an exchange platform for all actors (Customs authorities, holders and guarantee chains) involved in the TIR system.  In this regard, Turkey has participated in two pilot projects with two neighbouring countries, namely Georgia and Iran. Source: the WCO

Vietnam-Ivory

Vietnamese authorities have seized nearly three tonnes of ivory hidden among boxes of fruit, officials said on Sunday, the latest haul to spotlight the country’s key role in the global wildlife smuggling trade.

Police in the central province of Thanh Hoa found 2.7 tonnes of tusks inside cartons on the back of a truck that was on its way to Hanoi, according to their website.

“This is the largest seizure of smuggled ivory ever in Thanh Hoa province,” the report said.State media said the elephant tusks originated from South Africa.

The truck driver claimed he was unaware of what he was transporting, according to a report in state-controlled Tuoi Tre newspaper.

The global trade in elephant ivory, with rare exceptions, has been outlawed since 1989 after populations of the African giants dropped from millions in the mid-20th century to around 600,000 by the end of the 1980s.

There are now believed to be some 415,000, with 30,000 illegally killed each year. Prices for a kilogramme of ivory can reach as high as US$1,100 (Dh4,040).

Vietnam outlawed the ivory trade in 1992 but the country remains a top market for ivory products prized locally for decorative purposes, or in traditional medicine despite having no proven medicinal qualities.

Weak law enforcement in the communist country has allowed a black market to flourish, and Vietnam is also a busy thoroughfare for tusks trafficked from Africa destined for other parts of Asia, mainly China.

Last October, Vietnam customs authorities discovered about 3.5 tonnes of elephant tusks at Cat Lai port in Ho Chi Minh city, all in crates of wood, including a hefty two-tonne haul packed into a single shipment.

In 2015, 2.2 tonnes of tusks, originating from Mozambique, were discovered and seized northern Hai Phong port.

And last week authorities in Hong Kong seized 7.2 tonnes of ivory, the largest haul in the city for three decades.

While low level couriers are sometimes arrested across Asia very few wildlife trafficking kingpins are brought to justice. Source: The National

Customs officers in Hong Kong seized 7.2 tons of ivory from a shipping container arriving from Malaysia on July 4.

The seizure was made at the Kwai Chung Customhouse Cargo Examination Compound, and once its weight is confirmed, the haul could become a record seizure – the largest ever recorded in the Elephant Trade Information System (ETIS) database – narrowly surpassing the 7.138 tons seized in Singapore in 2002.

According to a government media release, the consignment was declared as “frozen fish” and the tusks hidden beneath frozen fish cartons.

The massive seizure underlines both Malaysia’s and Hong Kong’s role as key smuggling hubs in the international trafficking of ivory. Three people – a man and two women were arrested in connection with the seizure.

The ETIS database is managed by the NGO TRAFFIC on behalf of Parties to the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). It contains tens of thousands of elephant-product seizure records dating back to 1989.

Under CITES guidelines, any seizure of 500kg or more is considered indicative of the involvement of organized crime. All parties making such large-scale seizures are obliged to examine them forensically as part of follow-up investigations.

Dr Yannick Kuehl, TRAFFIC’s Regional Director for East Asia, said, “No doubt Hong Kong’s geographic location coupled with the currently relatively lenient penalties in place for anyone convicted of wildlife crime are reasons behind the shipment coming through the port. The case for increasing penalties has never been stronger.”

Hong Kong is currently reviewing its legislation regarding wildlife crime and the Legislative Council is currently debating plans to phase out the territory’s domestic ivory trade over the next five years, a timescale that is out of step with neighboring mainland China which intends to end its domestic ivory trade by the end of 2017. Source: Maritime Executive/TRAFFIC/HongKong Government – Photo’s: Alex Hofford/WildAid.

WCO Photo competetion winner 2017

Congratulations to Kyrgyzstan – a worthy winner considering the environmental elements. To view all the other entrants click here!

Source: WCO

Fighting BEPs in Africa

Thanks to Peter Draper and team for this policy briefing and discussion documents on Country-by-Country reporting.

Multinational enterprises (MNEs) can shift profits away from jurisdictions with comparatively high tax rates to jurisdictions with lower to no tax rates, and so avoid paying their fair share of taxes without breaking any single jurisdiction’s laws. This is in part possible owing to the restricted exchange of information between national tax authorities, which limits these authorities’ capacity to conduct accurate MNE audits.

The implementation package on Country-by-Country Reporting for Action 13 of the BEPS project, published on 8 June 2015, foresees that tax authorities will automatically exchange key indicators (such as profits, taxes paid, employees and assets of each entity) of Multinational Enterprise Groups with each other, therewith allowing tax authorities to make risk assessments as to the transfer pricing arrangements and BEPS-related risks, which may then serve as a basis for initiating a tax audit.  OECD Automatic Exchange portal.

By creating standard reporting templates and model legislation to collect MNEs’ relevant business information, Action 13 of the Organisation for Economic Co-operation and Development (OECD)/G20 Base Erosion and Profit Shifting Action Plan – Transfer Pricing Documentation and Country-By-Country Reporting – is seen as part of the solution to addressing MNE tax evasion. While representing a substantial step forward, the proposed set of recommendations has a limited scope and is technically onerous to implement in poor developing countries, where revenue authorities are severely resource-constrained. These issues are reviewed in relation to African resource mobilisation needs, and with an eye to the 2020 review of country-by-country reporting (CbCR) implementation.

To view/download the policy paper click here!

To view/download the discussion paper click here!

Source: Tutwa Consulting Newsletter June 2017

IMGP0749

The WCO Private Sector Consultative Group (PSCG) met for the 41st time at the WCO headquarters on 3 and 4 July 2017. The meeting was chaired by Mr. John Mein from PROCOMEX and attended by representatives from 17 of the 21 PSCG members – AAEI, BMW, CATERPILLAR, E-BAY, FIATA, FONASBA, FONTERRA, GEA, HAIER, HUAWEI, IATA, ICC, IFCBA, MICROSOFT, OPORA, PROCOMEX and SAAFF.

During their two-day meeting, the PSCG discussed a number of very topical matters and developments, including current threats of protectionism to free trade, the state of trade facilitation and the implementation of the WTO TFA agreement and e-commerce. WCO members also attended part of the meeting and presented current WCO work programmes, including the upcoming review of the Revised Kyoto Convention and encouraged PSCG members to take an active role in this review work. The Secretary General, Kunio Mikuriya, also addressed the PSCG on its first day on issues relating to the current state of international trade.

Following the PSCG meeting, a dialogue between Policy Commission and PSCG members including Trade Observers was held to discuss current challenges with regard to free trade and globalization.  During break-out groups representatives from both the Customs administrations and private sector discussed the current problem landscape and what the international Customs community can do in collaboration with the private sector to support economic and social development and growth through the application of trade facilitation principles and measures. Source: WCO

airport

Currently, New Zealand Customs can stop anyone at the border and demand access to any of their digital devices.

A new law means Customs will no longer be able to demand that people entering the country hand over the passwords to their devices without reasonable cause.

Currently, Customs can stop anyone at the border and demand access to any of their digital devices.

But ACT leader and sole-MP David Seymour has secured a change to this in the new Customs and Excise Bill, which is soon to have its second reading. Officers will need to have “reasonable suspicion” or belief of offending. There will be no appeal process.

Figures obtained by TVNZ showed that more than 1300 have been digitally “strip searched” since 2013.

New Zealanders were the most commonly searched, followed by people from China.

“Unrestricted power to demand people’s passwords and search their files is an affront to civil liberties, and it will inevitably lead to violations of privacy,” Seymour said.

“Customs practices are simply out of touch with modern reality. In the past, people would only pack a suitcase with a few paper documents, but younger generations often travel with all their personal files. Meanwhile, if a genuine criminal is determined to keep incriminating files, they’ll do it on cloud storage, not on their personal device.

“This will prevent countless New Zealanders and visitors from facing intrusive and unjustified searches.

“Customs’ powers to examine and access electronic devices will be restricted through a two-stage search threshold. This means that Customs will only be able to search a device if they have a reasonable suspicion or belief of offending under the Act,” Customs Minister Nicky Wagner said.

“We have addressed concerns raised by the public during consultation around Customs’ powers to search e-devices at the border.

“The new search powers strike a balance between protecting privacy and ensuring that Customs can continue to protect our borders.” Source: Stuff (New Zealand)

WCO Photo Competition 2017

The winner of this year’s WCO Photo Competition will be announced this Saturday, 7 July 2017. To see the submissions of all this year’s entrants, please click here! See if you can identify the winner. Source: WCO

smoother1

Researchers at Sandia National Laboratories have developed new glass scintillators to detect suspicious nuclear material at borders and ports. The new scintillators are cheap, effective and more stable than the current scintillators in use.

Scintillators, which produce bright light when struck by radiation, are used extensively by the US Government in homeland security as radiation detectors. By observing the amount of light produced, and how quickly, the source of radiation may be identified.

Dr Patrick Feng, who led the Defense Nuclear Nonproliferation project, began to develop new types of scintillators in 2010, in order to “strengthen national security by improving the cost-to-performance ratio of radiation detectors”. To improve this ratio, he had to “bridge the gap” between effective scintillators made from expensive materials, and affordable but far less effective models.

Although there are many types of scintillator available, the best-performing scintillators are made from trans-stilbene. This crystallised form of a molecule allows border security tell the difference between gamma rays, which appear naturally everywhere, and neutrons, which are often associated with threatening materials such as plutonium and uranium, by producing a bright light in response.

The gold standard scintillator material for the past 40 years has been the crystalline form of a molecule called trans-stilbene, despite intense research to develop a replacement. Trans-stilbene is highly effective at differentiating between two types of radiation: gamma rays, which are ubiquitous in the environment, and neutrons, which emanate almost exclusively from controlled threat materials such as plutonium or uranium. Trans-stilbene is very sensitive to these materials, producing a bright light in response to their presence.

These crystals, however, are too fragile and expensive (around S1,000 per cubic inch)  to be used in the field, and instead, security personnel will tend to use plastic-based scintillators, which can be moulded into large shapes but are ineffective at differentiating between different types of radiation or detecting weak sources.

In order to find a good alternative, Dr Feng and his team at Sandia National Laboratories in Livermore, CA, began to experiment with organic glass components, which are capable of discriminating between different types of radiation.

Tests demonstrated that scintillators made with organic glass performed even better than the trans-stilbene scintillators in radiation detection tests.

The researchers were able to improve their design further when they drew a parallel between the behaviour of LEDs, which produce light when electrical energy is applied, and scintillators, which respond to radioactive sources. They found that adding fluorine, which is used in some LEDs, into the scintillator components helped stabilise them. This allowed for the organic glass to be melted down and cast into large blocks without becoming cloudy or crystallising upon cooling.

The result was an indefinitely stable scintillator able to differentiate between non-threatening radioactive sources, such as those used in medical treatments, and those which could constitute threats. The organic glass components are cheap and easy to manufacture, and do not degrade over time.

Next, the researchers will cast a large prototype for field testing, and hopefully demonstrate that the scintillator can withstand environmental wear and tear, for instance, due to the humidity of ports where checks are carried out. They also hope to adjust the scintillator to distinguish between safe sources of gamma radiation, and those which could be used to make “dirty bombs”. Source: Sandia Laboratory

Customs and Border Protection is analyzing the distance between travelers’ eyes and the width of their foreheads to better track international travelers.

This week the agency began using facial recognition technology at Bush Intercontinental Airport on one daily flight departing Houston for Tokyo.

“The use of biometrics is approaching an almost everyday type of experience,” said Henry Harteveldt, founder of San Francisco-based Atmosphere Research Group, a travel industry research company. “It’s much more common now than it was 10 to 20 years ago.”

Similar technology is increasingly used everywhere. For instance, fingerprints are used to unlock phones and access secure banking information. Facebook can automatically recognize and tag friends in photos. And a variety of airport entities, ranging from airlines to the Transportation Security Administration, also are using biometric data to enhance security and expedite traveling.

Some still question the reliability of facial recognition technology, but it has evolved over the years and continues improving.

Delta and JetBlue recently announced collaborations with Customs and Border Protection to integrate facial recognition technology as part of the boarding process. And Customs began piloting its own facial recognition technology in June 2016 at Hartsfield-Jackson Atlanta International Airport. The technology then was rolled out at Washington Dulles International Airport in May 2017, and seven additional airports will receive the technology in the next several months.

Customs “sees potential for the technology to transform the travel process provided privacy issues can be addressed,” an agency spokesperson said in an email.

“The use of biometrics to confirm identity from the beginning to the end of travel has the potential to reduce the frequency travelers have to present travel documents throughout the airport.”

Currently, the system takes pictures of individual travelers right before they board an international flight. That photo is then compared with a flight-specific photo gallery Customs and Border Protection created using travel documents passengers provided to the airline.

Officials say capturing this type of biometric information will ensure travelers aren’t lying about their identity. And the agency spokesperson emphasized that Customs worked closely with its privacy office. If the photo captured at boarding is matched to a U.S. passport, the photo of that traveler – having been confirmed as a U.S. citizen – is discarded after a short period of time.

“I don’t think there’s going to be any resistance by consumers to this,” Harteveldt said, “provided they’re given very clear explanations about what information is being collected, why it’s being collected and a high-level understanding of the safeguards that will be taken to keep their biometrics data safe and secure.”

 Opinions vary on whether capturing such data from departing travelers will boost security or hurt airlines’ on-time performance. But the point is moot. Laws requiring exit control have been on the books for many years.

“It is already required by law, and it has taken way too long to implement an effective exit technology,” said Andrew Arthur, resident fellow in law and policy at the Center for Immigration Studies, a Washington, D.C.-based think tank that pushes for stricter immigration controls.

He said monitoring foreign travelers as they leave the U.S. helps enforce immigration laws. And if visitors enter the country legally but officials later realize they pose a threat, this exit system will tell officials if they are still in the U.S.

Harteveldt, however, said passport and visa information is already collected when travelers leave the country. He doesn’t believe biometrics are needed.”I’m just not sure it adds a lot of value to the exit process,” he said.

But compared with fingerprint technology, Harteveldt said facial scanning can be faster and cleaner. There’s no need to touch anything. Customs officers at Bush Intercontinental began taking the fingerprints of some departing international travelers in 2015.

Anthony Roman, president of global investigation and risk management firm Roman & Associates, said the best type of security is layered and uses cross-verification, such as a Customs and Border Protection officer checking passports, fingerprinting machines and facial recognition technology.

As for the latter, he said developers claim to have solved problems found in the older facial recognition technology. These past problems included false readings caused by a shadow on the face, blinking at the wrong time or even grimacing. Algorithms were also slow at processing the data.

The new technology is supposed to be faster and more accurate. “Whether that’s true or not, time will tell,” Roman said.

Arthur is still waiting to see that facial recognition technology is as reliable as fingerprinting. He wants to know the number of false positives and if facial recognition technology is affected by haircuts, beards or glasses.

They both agree, however, that the vigilance is warranted.

“Our technology needs to keep evolving,” Roman said. “We need to keep changing what we’re doing. It makes it more difficult for the insurgents to create long-term research and development projects to overcome existing technology.” Source: Houston Chronicle

WCO News June 2017

The WCO has published the 83rd edition of WCO News, the Organization’s flagship magazine aimed at the Customs community, which provides a selection of informative articles that touch the international Customs and trade landscape.

This edition features a special dossier on the use of collective action to fight corruption and how it can apply in the Customs context, and includes both country-specific experiences as well as the views of Customs’ partners.

It also puts a spotlight, in its focus section, on the WCO Mercator Programme, the capacity building programme designed by the WCO to assist governments in implementing the Customs trade facilitation measures outlined in the WTO Agreement on Trade Facilitation.

Other highlights include articles on the implementation of a new standard to ensure that men and women receive equal pay for equal work, enhanced control of light aviation in West Africa, the use of basic mathematics to fight corruption and bad practices, and much more.

The magazine is published and distributed free of charge three times a year, in February, June and October, and is available online or in paper format. Source: WCO

Copy of Enhancing Images

At least 30 representatives of the Southern African Customs Union (SACU) recently met in Maseru – capital of the ‘Mountain Kingdom’ – Lesotho, to undertake a 5-day training workshop on the WCO Data Model, between 29 May to 2 June.

The training formed part of capacity building support to Member States to implement IT connectivity and information exchange between SACU Customs Administration. The training was facilitated by WCO Data Model Expert, Mr Carl Wilbers from South African Revenue Service (SARS) and GEFEG.FX software tool Expert, Mr. Martin Krusch from GEFEG, Germany.

The recent ratification of Annex E to the SACU agreement – on the use of Customs-2-Customs (C-2-C) Data Exchange between member states – paves the way for participating countries to exchange data within the terms of the agreement on the basis of the GNC Utility Block, also greed to by the respective member states. It also coincides with recent work on the establishment of a SACU Unique Consignment Reference (UCR) which must be implemented by the SACU countries in all export and transit data exchanges between themselves, respectively.

Just recently, in May 2017, the heads of SACU Customs administrations were presented a prototype demonstration of data exchange between the respective systems of the South African Revenue Service and the Swaziland Revenue Authority.

The WCO Data Model provides a maximum framework of standardized and harmonized sets of data and standard electronic messages (XML and EDIFACT) to be submitted by Trade for Cross-Border Regulatory Agencies such as Customs to accomplish formalities for the arrival, departure, transit and release of goods, means of transport and persons in international cross border trade.

The course was extremely comprehensive, providing SACU customs users the full spectrum of the power and capability which the GEFEG.FX software tool brings to the WCO’s Data Model. GEFEG is also the de facto Customs data modelling and data mapping tool for several customs and border authorities worldwide. It significantly enhances what was once very tedious work and simplifies the process of mapping data, ensuring that the user maintains alignment and consistency with the most up-to-date version of WCO data model. One of the more significant capabilities of the GEFEG.FX software is its reporting and publishing capability. For examples of this please visit the CITES electronic permitting toolkit and the EU Customs Data Model webpages, respectively. Pretty awesome indeed!

Users had the opportunity of mapping the SACU agreed data fields both manually as well as using the tool. The SACU group was able to add additional enhancements to its agreed data model, providing an added benefit of the work session.

big_data

Historically, a customs officer’s “intuition” backed up by his/her knowledge and experience served as the means for effective risk management. In the old days (20 years ago and back) there wasn’t any need for all this ‘Big Data’ mumbo jumbo as the customs officer learnt his/her skill through painful, but real-life experience, often under bad and inhospitable conditions.

Today we are a lot more softer. The age of technology has superseded, rightly or wrongly, the human brain. Nonetheless, governments thrive on their big-spend technology budgets to ensure the safety of their economies and supply chains.

No less, the big multinational corporations whose ‘in-house’ business is no longer confined by national boundaries or continents are responsible for the generation of huge amounts of data which need to extend  to the limits of their operations. When the products of such business are required to traverse national boundaries and continents,  their logistics and transport intermediaries, financiers, and insurers become themselves tied up in the vicious cycle of data generation and transfer, also spanning national boundaries to ensure those products arrive at their intended destinations – intact, in time and fit for purpose. Hence we have what as become known as the international supply chain.

It does not end there. Besides the Customs authorities, what about the myriad of other government regulatory authorities who themselves have a plethora of forms and information requirements which must be administered and approved prior to departure and upon arrival of goods at their destination.

Inefficiencies along the supply chain culminate in delays with added cost which dictates the viability for sale and use of the product during delivery. These may constitute what is called non-tariff barriers (or NTBs) which negatively impact the suppliers credibility in international trade.

The bulk of this information is nowadays digitised in some for or other. It is obviously not all standardised and structured which makes it difficult to align, compare or assimilate. For Customs it poses a significant opportunity to tap into and utilise for verification or risk management purposes.

The term ‘Big Data’ embraces a broad category of data or datasets that, in order to be fully exploited, require advanced technologies to be used in parallel. Many big data applications have the potential to optimize organizations’ performance, (and here we have it) the optimal allocation of human or financial resources in a manner that maximizes outputs.

At this point, let me introduce one of the latest WCO research papers – “Implications of Big Data for Customs – How It Can Support Risk Management Capabilities” by Yotaro Okazaki.

The purpose of this paper is to discuss the implications of the aforementioned big data for Customs, particularly in terms of risk management. To ensure that better informed and smarter decisions are taken, some Customs administrations have already embarked on big data initiatives, leveraging the power of analytics, ensuring the quality of data (regarding cargos, shipments and conveyances), and widening the scope of data they could use for analytical purposes. This paper illustrates these initiatives based on the information shared by five Customs administrations: Canada Border Services Agency (CBSA); Customs and Excise Department, Hong Kong, China (‘Hong Kong China Customs); New Zealand Customs Service (‘New Zealand Customs’); Her Majesty’s Revenue and Customs (HMRC), the United Kingdom; and U.S. Customs and Border Protection (USCBP). Source: WCO