1 Risk Management Unit | Compliance and Facilitation Directorate | Sri Lanka Customs
Compliance and Facilitation Directorate (C&FD)

Risk Management Unit

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.

Main Functions

  1. Fast Track Documentation Program at Long Room
    • Identification of compliant traders and granting to provide Fast Track Documentation facility at the Long Room through various criteria.
    • Visiting the offices of such identified traders to assess their internal procedures and accounting systems etc.
    • Maintain a fast track consignee list and monitor the compliance of them.
  2. Selection of High Risk Cargo
    • Identification of High Risk Cargo through various analysis and query plans.
    • Timely evaluation and monitoring of the HRC list
    • Update the HRC list frequently
  3. Automated Selectivity Program
    • Identification of Risk Parameters
    • Setting up Risk Levels for each Risk Parameter
    • Determining appropriate Risk Levels for meaningful routing of consignments for Customs examination.
    • Conducting feasibility studies towards proposed functions of the Automated Selectivity Program
    • Collating appropriate test data for test runs
    • Perform test runs
  4. Valuation Database
    • Storing Customs reference values for imported goods
    • Cluster each HS/Item against its Description/Attributes for each of which reference values are stored on the database.
    • Conducting feasibility studies towards proposed functions of the Valuation Database
    • Collating appropriate test data for test runs
    • Perform test runs

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