Risk Management is the systematic application of management procedures and practices which will provide customs with necessary information to address the risk. The potential for non compliance with relevant statutory requirements and the potential failure to provide an appropriate level of facilitation are key risks which customs administration is faced.
The Sri Lanka Government policy is to promote legitimate international trade in Sri Lanka and there is an increasing emphasis on facilitation of the movement of cargo into and out of the country. therefore customs has to minimize human intervention in its clearance process and procedures and introduced system based controls.
With the fulfillment of above objectives Sri Lanka Customs has established a Risk management unit to use risk managements tools to maintain balance between control and facilitation. Automated selectivity program use risk management tools which also includes risk indicator to analyze and assessment of potential risk. Risk assessment tools drive through automated selectivity programme in the ASYCUDA systems through which import data declared will be analyzed on the basis of identified risk parameters. Depending on the selected risk levels , consignment will be routed through different channels for customs examination.
Valuation database is another important risk assessment tool which is used by customs Administration along with other risk tools to assesses potential risk regarding truth or accuracy of the declared value for imported goods. It enables customs to compare the declared value to the customs reference value in the database. This task can be achieved by establishment of reference valuation database using ASYCUDA system with use of Intelligence software to retrieve and analysis of the data in the system. Establishment of the Valuation database is in the initial stage and expected to be completed within months ahead.
with the objective of facilitating legitimate traders , a fast track documentation program has been introduced by the unit which provide green channel facility for documentary process at Long room. This facilitation process will be enhanced for green channel facility for cargo examination too in time to come.
Application of principles of Risk Management in order to achieve the balance between control and facilitation is the key task of the Risk Management unit.