Customs control and risk management system on the example of the Ukrainian customs

Abstract

Customs control and application of Risk Management System in the context of the Ukrainian Customs are outlined in this article.2 In particular, it discloses the base principles and architecture of the Risk Management System and some practical aspects of its application. Customs control, based on the application of the Risk Management System, may be automated, manual, or a combination of the two, with preference given to automated and combined customs control. On this basis, author's approach to understanding the essence of the Risk Management System and its place in Customs control is presented. The scheme of Customs control implementation using Risk Management System is presented in the given research too. At the same time, this article deals with the matters of use of pre-arrival information to provide risk analysis and assessment. The author recognizes the crucial role of the Risk Management System in the context of Customs violations prevention and ensuring national Customs security. A significant part of the research is devoted to an Automated Risk Analysis and Management System (ARAMS) and its role in Customs control. The paper also provides an analytical review of key efficiency indicators of the Risk Management System and Customs control. Special attention is paid to the analysis of the selectivity indicators of ARAMS (electronic risk profiles) and their trends. The analytical review presented also contains data on the structure of proceeding electronic risk profiles, their orientation depending on the direction of movement, as well as the orientation of the proceeding risk profiles towards the certain risk areas. Finally, the author concludes that an urgent task and a vector of further institutional development of the Ukrainian Customs system in general involves a reasonable balance between the fiscal and law enforcement functions of Customs and Customs control.