KARACHI: Deputy Director, Directorate of Reforms and Automation (Customs) Rizwan Mahmood says WCO has dedicated 2017 to promote the use of data analysis under the slogan “Data Analysis for Effective Border Management.” Data Analysis is defined as “a process of inspecting, cleansing, transforming, and modeling data with the goal of discovering useful information, suggesting conclusions, and supporting decision-making.” Collecting and analyzing data is becoming extremely important in Customs modernization process. Multifarious data is available with Customs which includes data of Customs clearances, data obtained from other departments and data available from open sources.
Since the international trade and number of travelers have exponentially increased, therefore big data is being produced by these trade transactions and itineraries. About 90% of the world’s cargo is transported in maritime containers, but only 2% is physically inspected by Customs authorities, opening the possibility for illicit activities. Today, it is widely believed that the only viable way to control containerized cargo is through information-based risk analysis. In this way, it becomes possible to target high-risk shipments and proceed with physical checks, only where needed.
With the sheer volume of goods being imported and exported, Customs are dealing with a mass amount of Customs declarations and are unable to review every declaration for clearance, therefore, they rely on the data that is available with them. With the effect of the e-Customs decision in moving towards a paperless environment, most countries have moved towards the electronic use of providing their import and export declarations. Customs are relying heavily on import / export information to identify trends, track shipments, detect errors, and identify non-compliance of the movement of goods in real time. This information all begins with data. Having access to import / export data provides insight into the physical flow of goods being shipped from source to destination which in turn allows Customs to perform various in-depth analyses.
Customs authorities face a number of challenges in supervising the cross border movement of goods to ensure all regulatory requirements are met while also ensuring that clearance times are kept to a minimum to prevent the backlog of goods entering into the country.
By bringing all the data together from the entire logistic chain, Customs can obtain accurate pictures enabling them to identify trends understanding who does what along the chain. Data from trusted traders such as Authorised Economic Operators (AEO) can be treated as reliable data, allowing goods to be cleared immediately without inspection. Identifying trends can warn Customs authorities of suspicious activities which can lead to the detection of fraud, smuggled goods and counterfeit products. Doing this manually is time consuming and can result in errors. Advanced ‘data analytics’ such as ‘predictive analytics’ can enable Customs to risk rank import and export transactions and create risk scores in real time, eliminating trustworthy traders while predicating and preventing fraudulent shipments.
Keeping in view the technological advancements, Customs authorities are increasingly using the substantial amount of Customs data at their disposal in order to make their controls more effective and reveal gaps. This has been further strengthened by the WCO’s initiative using various tools, studies and guidance.
