Maturity in the Implementation of Risk Management - Customs General Administration

The Mongolia Business Plus Initiative Project (BPI) conducted a comprehensive assessment of the Customs General Administration's risk management maturity in 2012. The assessment aimed to identify areas of improvement and provide recommendations for enhancing the risk management framework. The assessment revealed that the Customs General Administration has made significant progress in implementing risk management practices. The Post Clearance Audit (PCA) process, which involves verifying the accuracy of customs declarations, has been established as a key component of the risk management framework. The PCA process has been instrumental in identifying and addressing discrepancies in customs declarations, thereby reducing the risk of revenue loss and improving compliance with customs regulations. The assessment also highlighted the importance of involving local risk management personnel in the risk management process. The Customs General Administration has designated local risk management personnel to oversee the implementation of risk management strategies and ensure that they are aligned with the organization's overall objectives. These personnel have received training on risk management principles and practices, enabling them to effectively identify and mitigate risks. The trade community has also been actively involved in the risk management process, with many traders and brokers participating in the Customs General Administration's risk management initiatives. The assessment noted that the trade community has been receptive to the risk management strategies implemented by the Customs General Administration, with many traders and brokers expressing a willingness to cooperate with the organization's risk management efforts. The assessment also examined the reports generated by the Customs System, which is a computer system used to control customs operations, including filing, payment of duties, and clearance control. The reports provide valuable insights into customs clearance processes and have been instrumental in identifying areas of improvement. The assessment noted that the reports are comprehensive and provide detailed information on customs clearance processes, enabling the Customs General Administration to make informed decisions on risk management strategies. The assessment concluded that the Customs General Administration has made significant progress in implementing risk management practices, but there are still areas for improvement. The organization has identified several recommendations for enhancing the risk management framework, including the development of a risk management policy, the establishment of a risk management committee, and the provision of training to local risk management personnel. The implementation of these recommendations is expected to further enhance the efficiency and effectiveness of customs clearance processes and reduce the risk of revenue loss and non-compliance with customs regulations.