WCO news - Data Analysis for effective border management World Customs Organization - WCOOMD ...
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
February 2017 | n° 82 | www.wcoomd.org
WCO news
Data Analysis
for effective border
management
World Customs Organization
SOLUTION
READY
OFFERINGS
SOLUTIONS
PA A R
TRADE FACILITATION SOLUTIONS
ICT CONSULTING
BUSINESS AUTOMATION Pre -Arrival Assessment Report
PORTAL DEVELOPMENT
KNOWLEDGE TRANSFER
CAPACITY BUILDING & TRAINING
VIEW
Single Window Application Platform
MANAGED SERVICES
NARP
National Automotive Repository Portal
info@westblueconsulting.com www.westblueconsulting.com
WCO news N° 82 February 2017
Content
04 Flash info
07 Dossier
16
32 Point of view
Mirror analysis, a
22
34 Focus risk analysis support API-PNR: an overview of
tool for Customs the French system and
46 Panorama administrations the challenges faced
67 Events
46 51
Facilitating trade How the United States
against a backdrop of is transforming its trade
security threats: the processes to compete
Tunisian experience in the global economy
DOSSIER: DATA ANALYSIS POINT OF VIEW FOCUS: ENVIRONMENT
07 The Secretary General of 32 Emerging technologies can 34 Customs and the
the WCO shares his thoughts on transform border management, environment: bringing about a
the importance of data analysis, but agencies must prepare better future for all
the WCO’s theme for 2017
40 Project INAMA:
10 National experiences: implementation progress and first
Canada, Côte d’Ivoire, France, results achieved
New Zealand and Singapore
44 Customs’ role in protecting
26 Developing data analyst the ozone layer and mitigating
skills: how the WCO contributes climate change
to expanding this specialized area
of work
28 Cognitive computing: how
it can help in improving trade
compliance and facilitation
Editor-in-Chief Advertising Editorial note Copyright © World Customs Organization
Grant Busby WCO News is distributed free of charge in English All rights reserved. Requests and enquiries concerning
and in French to Customs administrations, international translation, reproduction and adaptation rights should be
Writer / Editor organizations, non-governmental organizations, the addressed to copyright@wcoomd.org.
Laure Tempier Bernard Bessis business community and other interested readers. Opinions
bernard.bessis@bb-communication.com expressed in WCO News are those of the contributors and Acknowledgements: The Editorial Team wishes to express its
Editorial Assistant Publisher do not necessarily reflect the official views of the World sincere thanks to all who contributed to this publication.
Sylvie Degryse World Customs Organization Customs Organization. Contributions in English or French
Rue du Marché, 30 are welcome but should be submitted no later than 15 April Illustrations: Our thanks also extend to all who provided
Online subscriptions B-1210 Brussels 2017 for consideration. The WCO reserves the right to photos, logos and drawings to illustrate this issue.
http://www.wcoomd.org/en/media/wco- Belgium publish, not to publish, or to edit articles to ensure their
news-magazine/subscriptions.aspx conformity with the magazine’s editorial policy and style. Photo cover: © Mischa Keijser / Cultura Creative
Tel.: +32 (0)2 209 94 41 The WCO Communications Service is available to answer
Fax: +32 (0)2 209 92 62 all requests for subscriptions, submission of contributions, Design: www.inextremis.be - mp5521
communication@wcoomd.org and any other enquiries relating to WCO News. Please email
www.wcoomd.org communication@wcoomd.org.
3
FLASH INFO
A new module in ASYCUDA speeds up
the processing of relief consignments
By Virginie BOHL,
EMERGENCY RELIEF PROJECT MANAGER, THE UNITED
NATIONS OFFICE FOR THE COORDINATION OF
HUMANITARIAN AFFAIRS
IN MAJOR HUMANITARIAN crises, whether
natura l disasters or complex
emergencies, many relief goods are
delayed by Customs. Sometimes these
items are only released months after
their arrival, and, in the worst-case
scenario, may never reach the affected
© USCBP
population.
The reason for such delays is that relief consignments in humanitarian be associated with the relevant Customs
Customs authorities are often not emergencies. procedures prescribed by the national
adequately prepared to process the large Customs law of the affected country (e.g.
amount of relief items that usually arrive Once activated, the module will enable exemption from import duties and/or
in a disaster stricken country within a the automated system to: taxes), enabling completely automated
very short period of time. The case of the processing and release of these goods by
Philippines after Typhoon Haiyan struck • register the organizations potentially Customs authorities without delays.
in November 2013 gives an idea of the involved in UN relief operations in
volumes involved: the country’s Bureau advance, in preparation for potential The system will also enable Customs
of Customs reported that the volume unforeseen emergencies; to get a more accurate overview of
of cargo flights and ships was 10 times incoming relief consignments, and
larger than under normal circumstances. • record the duration of the state of to share this valuable information
emergency and the relief items listed with other national authorities and
ASYCUDA’s new module by the government as priority needs, international actors such as the Global
As a new initiative might help countries including their respective HS codes, Logistics Cluster (the coordination
using t he Automated System for and the requested volume; mechanism responsible for coordination,
Customs Data (ASYCUDA) to better information management, and, where
handle the influx of relief items in an • associate a list of pre-authorized necessary, the logistics service led by the
emergency, the United Nations Office orga nizat ions (U N, inter- United Nations World Food Programme
for the Coordination of Humanitarian governmental organizations (IGOs), (WFP) provision to ensure that an
Affairs (OCHA) and the United Nations non-governmental organizations effective and efficient logistics response
Conference on Trade and Development (NGOs), etc.) with the emergency; takes place in humanitarian emergency
(UNCTAD) jointly explored how to missions).
upgrade the computerized Customs • authorize eligible aid agencies or
management system, developed 35 donors with the possibility to lodge Rolling out the new system
years ago by UNCTAD and used today pre-simplified arrival declarations, The software prototype has been tested,
in more than 95 countries, in order to a nd c le a rly i nd ic ate on t hei r and will be integrated into ASYCUDA
facilitate the processing of international declaration that their shipment systems around the world progressively.
relief consignments in humanitarian contains ‘humanitarian relief’; Procedures and guidelines will be
emergencies. developed and tested in simulation
• recognize these consignments, and exercises to ensure that nationa l
The collaboration resulted in the prioritize their treatment by Customs authorities and shipping agencies are
development of an additional module and other government agencies. comfortable with the system, and are
for the software, called the Automated ready to use the module.
System for Relief Emergenc y Different types of humanitarian relief
Consignments (ASYR EC). As its items such as goods imported for the More information
name suggests, it will automate the benefit of disaster victims or temporary bohl@un.org
prioritization and rapid processing of admission of disaster relief material can
4
WCO news N° 82 February 2017
New global HS standard enters Latest accessions to
WCO instruments
into force
Revised Kyoto Convention
THE NEW EDITION of the WCO Harmonized • The Explanator y Notes which Samoa
System (HS) Nomenclature entered constitute the official interpretation Date of accession: 27 October 2016
into force on 1 January 2017. The of the HS at the international level; 105th Contracting Party
changes in HS 2017 encompass 242
sets of amendments relating to a wide • The Compendium of Classification Benin
range of products and product groups, Opinions which includes a list Date of accession: 5 January 2017
including: of the most significant/difficult 106th Contracting Party
classification decisions taken by the
• fish and fishery products; WCO HS Committee; Nepal
• forestry products; Date of accession: 3 February 2017
• antimalarial products; • The Alphabetical Index which 107th Contracting Party
• substances controlled under the facilitates the location of references
Chemical Weapons Convention; in the HS Nomenclature or in the Harmonized System Convention
• hazardous chemicals controlled Explanatory Notes to any of the
under the Rotterdam Convention; products or articles mentioned therein; Burundi
• persi stent orga n ic pol lut a nt s Date of accession: 18 January 2017
controlled under the Stockholm • The online HS Database which 155th Contracting Party
Convention; includes all HS publications.
• ceramic tiles; More information
• light-emitting diode lamps; Information about progress on the communication@wcoomd.org
• monopods, bipods, and tripods; implementation of HS 2017 and the
• hybrid, plug-in hybrid, and all- acceptance of various HS-related
electric vehicles. recommendations relating to each of
the Contracting Parties is published
The several tools available to WCO on the WCO website in the form of a
Members and to the public to assist matrix.
with the classification of commodities
in the HS Nomenclature have been More information
updated, and are available for purchase hs@wcoomd.org
via the WCO Bookshop: http://wcoomdpublications.org
HS 2017:
242 sets of amendments
Agriculture Chemicals Machinery Other
85 45 35 32
Wood Transport Textiles
22 8 15
5
DOSSIER
Data
Analysis
6
WCO news N° 82 February 2017
Data analysis: seizing
opportunities for effective
border management
By Dr Kunio Mikuriya, A snapshot of the activities undertaken
SECRETARY GENERAL, WORLD CUSTOMS by Customs officers who were awarded
ORGANIZATION
on the occasion of ICD for their
DATA IS GENER ATED by every economic commitment to the data analysis theme
activity, including by the movement reveals the diversity and complexity of
of goods and people. In fact, the the data analysis work being undertaken
convergence of several technologies by Customs administrations. These
is accelerating the generation of data. officers have:
According to experts, the volume of
data continues to double every three • used analysis to better detect cigarette
years as information pours in from smuggling attempts;
digital platforms, wireless sensors,
virtual-reality applications, and billions • undertaken a study on how to enhance
of mobile phones. In addition, data the security deposits on mineral oils
storage capacity has increased, while which are temporarily imported;
its cost has plummeted. Data scientists
now have unprecedented computing • enhanced post-clearance audits by
power at their disposal, and they are determining criteria and setting up
devising algorithms that are ever more profiles to control the movement of
sophisticated. cargo;
Data analysis is not new, companies • exploited historical enforcement-
and governments have been leveraging related data to predict the behaviour
data a na lysis in t heir businesses of traders and passengers;
for years to drive priority‐setting,
decision-ma k i ng , per for ma nce • developed tools that directly support
measurement, budget planning and data analysis activities, such as
forecasting, and operations. Customs databases or systems which enable
already has a substantial amount of Customs-to-Customs exchange of
data at its disposal, beginning with information;
data subm it ted for t he Customs
clearance process. Moreover, thanks to • engaged with other related government
the development of digital technology, agencies to support data exchange;
Customs can tap into data from other
government agencies, commercially • implemented the WCO Time Release
available databases, and open source Study (WCO TRS) for measuring the
i n for m at ion pl at for m s , suc h a s time necessary for the clearance and
digitized global public records and release of goods;
multilingual news sources.
• assessed passenger risk, and assisted
Taking this context into account, I am in the targeting and identification of
convinced that, building on last year’s high risk cargo.
theme “Digital Customs – Progressive
Engagement,” it is imperative that we It is important to recognize the critical
continue to enhance our data analysis value of the work of these officers, and
practices. For this reason, I chose the benefits that can be brought to our
“Data Analysis for Effective Border community through the sharing of
© Mischa Keijser / Cultura Creative
Management” as the WCO’s annual knowledge on the use of data analysis
theme for 2017, which was launched on methods and technologies. On this
the occasion of International Customs last point, I should like to highlight
Day (ICD) on 26 January. the importance that modern analysis
7
DOSSIER
More and more Customs administrations have turned
to data mining and predictive analytics, i.e. the pursuit
of extracting meaning from raw data using specialized
computer systems, or even cognitive technologies
which use advanced algorithms to analyse unstructured
data. Data, used in conjunction with analytics and other
emerging technologies, will, I am quite sure, provide us
with new opportunities to realize our objectives.
tools are playing today. In recent years, databases. The WCO Information and and Trade and the research-focused
we have witnessed the emergence of a Intelligence Centre (I2C) is another PICARD Conference will spend some
whole gamut of new tools, providing new endeavour to show the use of open data, time looking at this issue.
opportunities to get the most value from while supporting intelligence-gathering.
available information. But, it is not only the WCO which will
Customs ad minist rat ions shou ld be focusing its attention on data analysis
More and more Customs administrations make data analysis a strategic priority, during 2017. I have been informed that
have, for example, turned to data mining making use of cutting-edge technology, some regional Customs organizations
and predictive analytics, i.e. the pursuit establishing appropriate automation will also be organizing events around
of extracting meaning from raw data policies, recruiting experts to collect and the data analysis theme, such as the
using specialized computer systems, analyse data, and acting upon the data- Oceania Customs Organisation which
or even cognitive technologies which driven insights. Customs staff also need intends to hold its event in May. I
use advanced algorithms to analyse to progressively develop the appropriate can only encourage initiative, while
unstructured data. Data, used in skills to exploit the potential of data exhorting others to do the same. In
conjunction with analytics and other analysis and information technology addition, throughout the year, the WCO
emerging technologies, will, I am quite (IT) tools. will use every opportunity to enhance
sure, provide us with new opportunities the promotion of its tools that can
to realize our objectives. Needless to say, to optimize the use of contribute to taking the data analysis
data analytics it is important to obtain theme forward, such as:
Key requirements quality data in a timely manner. This
A critical foundation of a successful is one of the key areas for partnerships • the WCO Customs Enforcement
cognitive organization concerned with with business to ensure the timely flow of Network (CEN), which is a global
data analytics is the digitization of precise information. Moreover, there is Customs seizure database;
data. If data cannot be consumed by a a need for border agencies to harmonize
cognitive system, it cannot be analysed the data being shared (using the WCO • the WCO TRS, which is a methodology
effectively. So, digitizing information Data Model) and to develop skills for measuring border agency clearance
and processes and moving data to the pursuant to any IT challenges. Further, times;
cloud or any other easily accessible Customs administrations need to ensure
platform are some of the prerequisites that privacy and confidentiality laws are • the use of mirror analysis, which
for attaining success in the use of data respected, so as to uphold the confidence involves using the Harmonized
analytics. of society while accessing and using such System (HS) Code to compare the
data. imports (or exports) of a country with
Data ana ly tics should be able to the exports (or imports) reported to
access various databases (for example, Methods and tools it by its trading partners, as a means
seizure databases, databases of traders, Data analysis, its key requirements and of detecting gaps in terms of quantity,
valuation databases, etc.) to discover related challenges will be thoroughly weight or value that may reveal
hidden information and patterns. discussed within the WCO during 2017, fraudulent flows or practices;
In other words, automation of the and will appear on the programmes
extraction and analysis of Customs of all major WCO events, such as the • the application of performance
data, including external data, is also of Information Technology Conference measurement to improve Customs
critical importance. One of the benefits and Exhibition, the Global Conference procedures and integrity, including
of Customs-tax and Customs-police on Transit, and the Technology and the use of the techniques presented in
cooperation that the WCO promotes is Innovation Forum. Even the WCO the WCO Performance Measurement
to enlarge Customs’ access to different Knowledge Academy for Customs Contracts Guide;
8
WCO news N° 82 February 2017
© David Plas
• the WCO Data Model, which supports as well as the analysis tools it is using, provider which introduces cognitive
data analysis by improving data including future developments in this computing and explains how it can help
collection and by enabling the sharing field; in improving trade compliance and
of data between government agencies. facilitation.
• Côte d’Ivoire Customs sheds light
Monitoring trends and practices on how it is using mirror analysis to Conclusion
Part of our work in the months ahead support risk analysis; Given its growing importance, the data
will also be to showcase data analysis analysis theme will be further explored
related projects to inspire others, and • Singapore Customs gives us an during meetings of our committees and
to monitor and communicate best overview of its data analysis policy in working groups during the year, and
practices in this domain. I therefore terms of technologies used and staff the WCO will make every effort to use
invite all WCO Members to share how competencies required; all its different communication tools to
they are leveraging the potential of data disseminate the knowledge gained and
to advance and achieve their objectives, • French Customs tells us about the practices shared on these occasions.
and respond to the expectations of data analysis that it applies to the
their traders, transport and logistics movement of airline passengers and In wrapping up, I would like to sincerely
operators, as well as their governments. crew, and to the implementation of thank all the contributors to this dossier
Some have already shared information its Advance Passenger Information/ on data analysis, including all the other
with us in the pages of this magazine: Passenger Na me Record (A PI/ magazine contributors who share their
PNR) programme, including related experiences on various Customs-related
• Canada Border Services Agency challenges. issues with us. Your contributions help
explains how it is reorganizing itself us to ensure that the WCO continues to
around the data it collects, making Last but not least, the magazine also be the centre of Customs expertise, and
data a strategic pillar to build around; includes an article from a Professional a central point for sharing knowledge,
Associate working temporarily at the information and research.
• New Zealand Customs Service briefs WCO Secretariat, who describes how
us on the development of its Single the WCO capacity building programme
Window, which will enable it to enabled her to develop her data analyst
obtain richer and better quality data, skills, and an article from a technology
9
DOSSIER
Data analysis for effective border
management: the Canadian experience
By Charles Slowey, data model with data sets consistent
DIRECTOR GENERAL, GLOBAL BORDER MANAGEMENT AND DATA ANALYTICS,
CANADA BORDER SERVICES AGENCY
with the WCO Data Model standards.
To date, the CBSA has improved data
EFFECTIVE BORDER MANAGEMENT requires of the data in its care, and that the data policy coherence and strategic direction
the identification of people and goods, enables effective border management. through improved communication
and the collection and analysis of among all branches of the CBSA. We
relevant information at the earliest What is data analytics? have focused our dialogue to ensure that
possible point in the travel and trade The term “data analytics” refers to the we are discussing data integrity, data
continuum. The “business” of modern use of information technology to harness management, and how best to automate
border management organizations has statistics, algorithms, and other tools of manual data entry tools. In short, we
evolved, and is now driven by the active mathematics to improve decision-making. have brought the right people together to
use of advanced data. It includes traditional analytics that is ensure that we are having conversations
often referred to as business intelligence on how to use data the “right way.”
Customs organizations collect and hold (e.g. “what happened?”) and predictive
vast amounts of data on travellers and analytics (e.g. “what will or could The second pillar, Business Intelligence,
goods. As a result, we must embrace happen?”). The CBSA recognized that it involves building an integrated data
an organizationa l culture that is could not fulfil its core mandate without warehouse that draws on key data from
equally driven by sound principles of data to drive our priority‐setting, decision- multiple sources, including operational
information management so that we making, performance measurement, systems, as well as f inancial and
may truly take advantage of the large budget planning, and operations. Key to human resources data. Early on, the
amounts of data in our care. By adopting this was a shift in culture. Agency was able to complete high-level
progressive approaches, such as data business requirements for an integrated
analytics, to collect and successfully Our traditiona l met hods saw us overview of the CBSA’s operational,
exploit data to drive decision-making, accepting information through “stove financial and human resources data.
we can strengthen our capacity to pipes” that were in turn analysed in We also developed a visualization pilot
protect our citizenry, improve border siloes aligned to our various business to improve situational awareness of what
services, and generate revenue for our lines. However, as today’s world is data was available. Going forward, we
governments. increasingly interconnected, it became hope to use data to effectively inform
clear that we needed to link our diverse decision-making on where to deploy
Turning our “raw data” into information data sets and take an enterprise approach
enables ev idence-based decision- to i nformat ion ma nagement. By
making, and allows border management connecting our data holdings, we could
organizations to invest resources in a way position ourselves to better contribute
that supports high priority services. In to global security, and facilitate the free
the case of Customs organizations, this flow of persons and goods. An internal
can include advanced risk assessment culture shift is underway at the CBSA
techniques, better resource utilization, to see data as a corporate resource that
and more complete reporting on overall can be used across all of the Agency’s
performance to the public. business lines.
In order to take advantage of the Toward a data-driven decision-making
information under its stewardship, process
the Canada Border Services Agency By recognizing that we are a “data-
(CBSA) has developed a strategy for rich” organization, with significant data
data analytics, including establishing systems, the CBSA’s Data Analytics
a centralized governance structure, to Strategy became the guiding framework
drive investments in three key areas: to increase the value of these data holdings.
data governance; business intelligence; Our strategy focuses on three pillars.
and advanced analytics. The framework
is designed to allow the Agency to derive The first pillar, Data Governance,
increased value from its data. At the core includes establishing a Data Governance
of this strategy is the recognition that the Centre, launching data stewardship, and
CBSA respects the privacy and security implementing an enterprise business
10WCO news N° 82 February 2017
officers and technology in response to development and implementation of a Expected outcomes
real-time shifts in operational needs. data analytics strategy. By integrating data analytics into our
regular operations, we expect to see
The third pillar, Advanced Analytics, Using these building blocks, any marked effectiveness and efficiency
includes expanding operational analytics Customs administration can develop a gains in a number of areas. We expect
capacity, exploring the potential of tailored plan for data analytics, which to be more capable of predicting traffic
predictive analytics, visualization, and will allow it to derive value from the volumes in real time to help inform the
other advanced tools. Under this pillar, vast amounts of data that we as border deployment of human and technology
the CBSA launched an eManifest project, management organizations collect. From resources. In addition, we are improving
in cooperation with the WCO, to set in the CBSA’s experience, these include: the identification of non-compliance,
place a standard data model for use across and, therefore, hope to generate increased
jurisdictions. This enabled us to apply • appointing an executive champion revenue from trade verification. We are
advanced risk assessment to pre-arrival who understands the value of data also refining risk scenarios to improve
commercial information. We have also in decision-making, and who has the targeting operations.
used predictive analytics and models to authority to make it accessible;
determine patterns and anomalies in • establishing formal data governance to Finally, by providing more comprehensive
existing datasets. This included applying ensure relevant, accurate, and timely and accurate performance reporting
data analysis technologies to examine data is available, thereby increasing of the Agency’s programmes, we are
patterns of trade fraud, targeting models, confidence in data; positioning ourselves to deliver better
and to improve resource allocation. • developing teams that understand results for Canadians. We cannot expect
data and technology; to modernize our business overnight,
Building blocks of data analytics • a lways respect ing privac y a nd but we can certainly take the right steps
Canada’s experience in placing data- sensitive information. today, so that we can be effective partners
driven analysis at the forefront of decision- in the global economy of tomorrow. The
making required a comprehensive shift in The concept of “privacy by design” is CBSA views this culture shift, towards
thinking towards using data as a valuable essential to the development of policies increased use of analytics grounded
corporate asset to further effective border that hope to benefit from the use of in a sound information management
management. data analytics. In Canada, as we build policy, as foundational to our overall
capabilities from the ground up, we modernization efforts, including a more
While there may not be a standard always consider privacy implications open government.
“one-size-fits-all” blueprint for all and legislative requirements.
countries to adopt when looking to take
advantage of the information under More information
their management, we believe there are CBSA Data Analytics inbox
key building blocks to the successful CBSA.Data_Analytics-Analytique_Donnees.ASFC@cbsa-asfc.gc.ca
© Geralt
11DOSSIER
Border management modernization
in New Zealand forges ahead
By Murray Young, client codes to importers, exporters and
CHIEF INFORMATION OFFICER, NEW ZEALAND CUSTOMS SERVICE overseas suppliers, and to organizations
or individuals who wanted to submit
The New Zealand Customs Service is getting closer to messages to the system. These were
applied for on forms that were generally
completing a major modernization project, called the faxed or emailed to NZCS for data entry.
Joint Border Management System. The system has two key Allowing supplier codes to be issued
online has been hugely beneficial for
components: the development and implementation of the traders using the TSW. It has reduced
what previously took up to one business
New Zealand Trade Single Window; and advanced risk day to issue, down to a matter of
minutes. We no longer hear ‘stories’ of
and intelligence capability, including new tools to provide someone trying to get a supplier code
late on a Friday, but having to wait until
sophisticated data mining, risk rating, and pattern analysis. Monday for it to be sorted out. Letting
industry get on with their business,
I N FE BRUA RY 2 015, t he New Z ea la nd food safety, biosecurity and Customs and allowing it the freedom to manage
Customs Ser vice (NZCS) updated purposes. certain information in the TSW has been
WCO News readers on the progress of hugely popular and efficient.
the (NZD) $104.1 million Joint Border I can tell you good progress has been
Management System (JBMS) project, made since 2015, with three areas of the The ‘flip side’ for Customs is what was
which it is undertaking in partnership JBMS project completed or substantially previously a manual process is now
with New Zealand ’s Ministr y for completed. largely dealt with through the TSW,
Primary Industries (MPI) – responsible allowing officers to focus on more high
for managing the biosecurity risks posed Allowing industry the freedom to value work, and for future costs associated
by cargo, craft, passengers and mail manage certain information with manual processing to be avoided.
items, including risks associated with In July 2015, further functionality to
imported food. the TSW was added, to allow brokers to R& I a na ly tics toolset a nd data
register and manage some of their own repository upgraded
At the time of the update, a significant and their clients’ information, and for A further milestone was reached in
proportion of the Trade Single Window supplier codes to be issued through the November 2015, when a significant
(TSW) initiative had been delivered for TSW. Before this addition, NZCS issued upg rade to our of f line risk a nd
Prior to the Trade Single Window, meeting border requirements for goods and craft involved
dealing with multiple agencies and a third party to process transactions
Third party
Customs
Pre-TSW: gateway
Different
information sets Industry parties
Email, fax &
Insufficient data for a range of MPI
full risk assessment e-message Biosecurity system
standards
Supported by MPI
manual screening
MPI data
entry
Overseas Govt MPI
agencies Food Safety system
12WCO news N° 82 February 2017
intelligence (R&I) analytics toolset and this, we have built a predictive model, Hong Kong, China, and the United
data repository to support its use was i n consu ltat ion w it h Aust ra l ia’s States. Collaboration with such agencies
deployed. This technology has enabled Depar t ment of Immigration a nd to stop illicit drugs and other contraband
a joint border analytics team to be Border Protection, centred on air cargo pre-border has been paying dividends,
established (November 2016), which data. While early results are promising, with many notable methamphetamine
consists of Customs and two fellow time and more data is needed to prove seizures in particular. A big part of the
border agencies, Immigration New it. As our capability and capacity success has come from information
Zealand and the MPI respectively. grows, further predictive models will sharing, and NZCS staff being on the
be developed, including models for ground in other countries to assist with
Establishing a joint tea m a l lows revenue risk and other drugs. operations and intelligence gathering.
t he agencies to share t he cost of
specia list resources a nd leverage More investment in the area of data This better CBM approach is also at the
the R&I capability and tools of the ana ly tics is certainly required to forefront of how remaining real time
three agencies, to gain new insights build from our current state, but it R&I tools, to be delivered as part of
into border risk through the use of is the tools, and understanding from the JBMS project, will be implemented.
analytics and data sharing. the JBMS project, that have given us a While progress on implementation
good head start. of these tools was slowed to focus on
Literally millions of border transactions completing the TSW, it has allowed us
are now being interrogated to identify Coordinated border management and to re-think some design aspects, and
patterns in data that represent border R&I tools implementation in general. For example,
risk. A good proportion of that data is Another example of the push in New the tools will now be available to all New
being generated through the TSW, which Zealand for better coordinated border Zealand’s border agencies to use, and
uses electronic craft and cargo reporting, management (CBM) is that it should they have also been designed for the
and clearance messages based on Version be driven by intelligence-led risk mobility platform used by frontline staff.
3.2 of the WCO Data Model (WDM3). management. This intelligence-led
approach underpins what NZCS and It is now our expectation that these
The available data will grow with the its fellow border agencies do in an tools will be deployed over two years,
completion of the last major release ever-changing border environment. as a series of smaller projects once the
of the TSW in early 2017, which will But, the collaboration is not just completed TSW has gone live. What will
include new ‘lodgement’ types, the limited to gathering intelligence, as in be delivered includes:
term used to describe the different sets many locations, New Zealand’s border
of information required (see diagram). agencies have co-located staff, and are • a new alert engine for risk assessment;
The quality of data will increase even sharing resources more than ever. • a mitigation/workflow engine;
further once the use of WDM3 message • an entity management tool;
sets by traders to submit information The new way of working is not just • an addressing system;
becomes mandatory. confined to the New Zealand border. • a federated search tool to search
Closer ties have been established with unstructured data;
Initially, NZCS has decided to target many Customs administrations around • a geospatial information system.
methamphetamine smugglers. For the world, including Australia, Canada,
The Trade Single Window has
streamlined border clearance
Border Agency
systems
TSW
Customs
Industry parties One Receive
electronic MPI Import Biosecurity
Registration message Validate MPI Import Food
& standard
Lodgements Transfer Maritime NZ
Connection
Port Health Officers
options
Respond
Other Agencies over time
13DOSSIER
The completed Trade Single Window
Industry TSW Border Agencies
Registrations Registrations
Web User Interface
Customs
MPI
Lodgements Lodgements
Import Declaration Maritime NZ
Port Health
Export Declaration Officers (MoH)
Receive
Excise
Validate
Inward Cargo Report
Advanced Notice of Transfer
Direct Connection
Arrival
Advanced Notice of
Departure
Outward Cargo Report Update
Cargo Report Export Other Govt Agencies
Notify
(information sharing)
I am confident that these real time a port or airline store, if they have not In keeping with the approach taken prior
tools will add huge value, and lead to been cleared already; to the release of any functionality in the
positive outcomes and interventions at JBMS project, NZCS has worked very
the border. • Electronic messages for industry to closely with industry during the various
report ship arrivals and departures. phases. We have done rigorous testing
Single Window component prioritized As a result, New Zealand Ministry of with a select group of traders to ensure it
Our TSW has been prioritized. A key Health officers will be able to access works well for them, and to flush out any
reason behind this decision is that, if we the TSW to provide instructions to unexpected issues ahead of our ‘go-live.’
want to maximize our R&I tools that ships about approvals to berth, and After the completed system is in place,
are still to be implemented, we need Maritime New Zealand will also get we will then consult with industry on
two years of rich TSW data, based on the fuller electronic data to manage its mandatory dates for all traders to adopt
WDM3. We felt that it was important to safety and billing functions; the WDM3 message sets.
get the information flowing first, so that
the tools could do their job once they had • Industry will be able to submit excise So, it is a busy time for us here at
been implemented. NZCS believes the lodgements directly into the TSW for NZCS, as we prepare to mark another
richer WDM3 data will provide us with the first time, with minimal Customs milestone with the completion of our
much better insight into border risk, and interaction. This will improve the TSW. It has not been easy at times, but
lead to more targeted interventions. efficiency of the excise declaration it is definitely worth it. And, given that
process; border modernization never really ends,
In terms of the TSW, right now we are I am excited to see where the next major
making final preparations to launch the • Extending the ‘trader self-service’ developments in border management
completed system (for goods and craft) in capability introduced in March 2015, will take us.
just a matter of weeks. As denoted in the which allows brokers and traders to
illustrative diagram, the completed TSW manage how their staff use the system; For more information on New Zealand’s
features four new lodgements. It also has TSW, please have a look at a presentation
increased functionality across the system. • Providing officers with full access to we prepared for New Zealand Parliament
transactions in the TSW, so that they representatives in December 2016:
The remaining TSW functionality will can help traders with any issues that https://vimeo.com/195691917.
deliver the following: they might have with their messages.
• The Inward Cargo Report (the most
complex message set) that includes More information
the ability to electronically request www.customs.govt.nz/features/jointbordermanagement/Pages/default.aspx
approval to move consignments out of Robert Lake, Counsellor, New Zealand Embassy in Belgium: robert.lake@customs.govt.nz
14NEW
TECH
TO
DETECT
NEW-GEN
NII SCANNERS
TO BE UNVEILED
AT WCO IT FORUM
NUCTECH COMPANY LIMITED 7-9 JUNE
BEIJING · CHINA
Tel: +8610 50980999 Fax: +8610 62788896
TBILISI, GEORGIA
E-mail: info@nuctech.com
Follow us on: www.nuctech.com twitter.com/NuctechCoLtdDOSSIER
© Richard Kaby
Mirror analysis, a risk analysis support tool
for Customs administrations
By Roger-Claver Victorien
World Bank (WB) and the International Risk analysis
Gnogoue,
FINANCIAL SERVICES DIRECTOR, CÔTE D’IVOIRE
Monetary Fund (IMF) – is founded on C u s t om s a c t ion h a s h a d t o b e
CUSTOMS six projects. rationalized in response to increased
volumes of trade in recent years.
TWENTY-FIRST CENTURY CHALLENGES place Its enforcement and anti-smuggling Pre-clearance audits, which verif y
demands upon Customs administrations initiative forms part of the reform the nature and value of goods before
throughout the world, particularly in process under Project 4. To reduce importers or their representatives
developing countries. Customs services supply chain risks in matters of security take possession of them, have had to
must, therefore, be effective and efficient and non-compliance with prevailing be appropriately combined with post
if they are to meet their revenue and trade laws and regulations, Côte d’Ivoire clearance audits (PCAs), which are
facilitation targets, the achievement of Customs has put a series of modern carried out after goods are released or
which requires substantial investment in work ing methods and techniques cleared at the border, the aim being to
reforms, modernization, and continued in place to improve and develop its control less but better.
improvement. risk management, and inspection,
i nve s t i g a t i on a n d e n fo rc e m e nt Pre-clearance audit, carried out by
Côte d’Ivoire Customs is aware of capabilities. It has, in particular, frontline services, involves a selection
these challenges, and has introduced a established a control and selectivity of operations with a potentially high
range of reforms to ensure its thorough system based on risk analysis, and has risk of fraud. Côte d’Ivoire Customs,
modernization. It is now an exemplary, introduced a simplified report procedure with technical assistance from the
up-to-date and high-performing service. which computerizes declaration control IMF Regional Technical Assistance
The modernization programme driven reports, thus creating a database of Centre in West Africa (AFRITAC),
by its development partners – the Customs offences. has introduced a risk analysis-based
16WCO news N° 82 February 2017
The pursuit of data quality is
essential for a mirror analysis.
control and selectiv it y system to Customs administrations Using the results of a mirror analysis
ensure this process. The system’s must ensure this quality by The findings of any mirror analysis
performance over the previous 12 lead to assumptions of fraud which
months was assessed in late 2015: 20% collecting data from various must then be verified by investigations
of transactions covering around 70% sources, particularly foreign in the field or, failing that, in-depth
of recognized fraud findings were document reviews. They point Customs
audited. Historically, less than 10% of Customs administrations, administrations towards possible fraud,
declarations audited led to a finding port authorities, exporting and make it possible to avoid sometimes
of fraud. cumbersome and costly investigations
countries, and businesses. that may prove inconclusive and
PCAs, carried out by second-line fruitless.
services, are designed to ensure that
completed Customs operations have Côte d’Ivoire Customs issued 2,420
been properly conducted. This involves fraud reports in 2015. The offences
an in-depth analysis, both of declarations most commonly recorded by frontline
and of the attached import documents, services are false values, false goods and
and may cover the three financial years false weight declarations, which alone
preceding the audit. While sectors of account for 83.68% of total offences. The
activity and operators to be audited The first case concerns a product that will principal offences identified by second-
may be selected on the basis of a risk be identified as tariff subheading “X1,” line services are false value declarations
analysis, new methods are increasingly which is mainly imported from an Asian (29.83%), undeclared imports (17.23%),
recommended by the WCO, including country. The 2014 import value declared and false goods declarations (7.32%).
mirror analysis. for this subheading in the SYDAM is
127.24 billion CFA francs, compared to a The results of controls are recorded in the
By definition, mirror analysis is a mirror value of 211.3 billion CFA francs, simplified report, allowing operations
decision support tool designed to study i.e. a negative difference of 84.10 billion to be audited and control officers to
differences in a country’s foreign trade. CFA francs. In addition, the prices be assessed. To ensure that Customs
To that end, it analyses both import declared at the Customs barrier are well controls are increasingly effective, the
and export statistics. This technique is below international prices (209 CFA statistical services that conduct mirror
used to develop the capacity of Customs francs/kg). Two particular operators analyses must also cultivate close
administrations to identify possible declare prices, which are significantly relations with Customs control services,
irregularities, such as under-valuations, atypical compared to average imports and targeted products and origins must
incorrect classifications (tariff slippage), of the same product. be regularly monitored during Customs
false declarations of origin, etc. In other clearance operations or PCAs.
words, the magnitude of the differences The second concerns product “X2”.
may point Customs administrations to While one country may have declared In addition, the results of mirror analyses
fraudulent flows most commonly used exports of this product to Côte d’Ivoire, allow Customs statistics to be corrected.
over a period of time. the 2014 national Customs statistics Statistical asymmetries are a very serious
show a weak f low of such goods that issue since they affect the reliability
Some results of mirror analyses and year. This product attracted a tariff of of the trade balance, the balance of
their interpretation 20%. By contrast, a product in another payments, and national accounts.
Mirror analysis has been used in Côte subheading taxed at a lower rate, i.e. Data reconciliation is necessary to
d’Ivoire to study 2014 data, the most 10%, which will be referred to as “Y2,” improve the quality of the foreign trade
recent complete data available in the accounted for a considerably greater statistics that Customs administrations
United Nations Commodity Trade number of declarations over the same are responsible for compiling in many
Statistics Database (UN COMTRADE). period. In this particular case, this countries.
This exercise highlighted significant could represent a tariff slippage, leading
disparities between data taken from to the avoidance of a proportion of the Data quality and mirror analysis in
our SYDAM WORLD computerized Customs duties. perspective
Customs clearance system and data The pursuit of data quality is essential
stored in the UN database. These The challenge is all the more significant for a m i r ror a na ly sis . Cu stoms
differences involve several products, because the introduction in 2015 of administrations must ensure this
and are more substantial for Asian the common external tariff of the quality by collecting data from various
countries. Our attention was drawn to Economic Community of West African sources, particularly foreign Customs
two particular cases. Because of their States (ECOWAS) brought about a administrations, port authorities,
sensitive nature, information regarding 35% increase in the Customs duties on exporting countries, and businesses.
Harmonized System (HS) headings or product X2, which could lead to greater
the source countries of the products revenue losses if corrective measures are Many data accuracy problems have been
involved will not be disclosed. not put in place. highlighted repeatedly during mirror
17DOSSIER
analyses. These may be goods classification errors
TRACABILITY by the country of origin, time lags between export
SECURITY and import declarations, the “misallocation”
of imports to a third country, or exchange rate
volatility. These problems can be resolved largely
through Customs cooperation.
CUSTOMS
The WCO has drafted a model agreement on
bilateral administrative assistance in traditional
areas such as valuation, classification, and origin
EDI HUB of goods, thus facilitating Customs cooperation
TRAINING which is essential to any mirror analysis. In
response to the differences identified by these
analyses, a Customs administration must organize
meetings with the administrations of the countries
concerned in order to reconcile its data. This will
allow goods to be monitored and traced from
their place of production to the country of final
destination.
AT THE HEART It should be noted here that, under the Trade
OF DEMATERIALISATION Support and Regional Integration Programme
(PACIR), the European Union (EU) undertook
to foster regional integration in the West African
Economic and Monetary Union (WAEMU) by
interconnecting Customs computer systems. This
project includes a data exchange protocol enabling
goods transit operations to be managed more
effectively.
It is also essential to ensure close cooperation
between Customs administrations and businesses,
COACHING in particular to initiate a dialogue on data
reliability. The implementation of an authorized
SOFTWARE economic operator (AEO) programme may
be beneficial in this respect. In Côte d’Ivoire, a
public-private partnership between Côte d’Ivoire
Customs and the private sector was developed
through the Observatoire pour la Célérité des
Opérations de Dédouanement (OCOD)*, a body
set up to streamline Customs clearance processes.
PERFORMANCE
This cooperation, which has already produced
INTERNATIONAL useful results (particularly two studies of Customs
Agence Linéal - 03 20 41 40 76
release times, trade facilitation measures and
appeals against Customs decisions), could
represent a starting point for greater dialogue
on data quality with certain trusted traders. In
addition, the WCO’s decision to dedicate 2017
to data analysis under the slogan “Data Analysis
for Effective Border Management” is another
A GALAXY OF SKILLS opportunity to promote dialogue on the quality
and use of Customs data.
FOR A UNIVERSE OF SERVICES
*Observatory for the Speed of Customs Clearance
Operations
More information
gnogoue_roger@yahoo.fr
18WCO news N° 82 February 2017
© Singapore Customs
Data analysis in risk management:
Singapore Customs’ perspective
By Singapore Customs
Data collection data against the relevant supporting
AS A PARTNER of business and a guardian Data collection is the first step in trade documents received.
of trade, Singapore Customs strives to the data analysis process. Singapore
strike a fine balance between making Customs obtains data from multiple data A long w it h a na lysi ng h istor ica l
sure sufficient controls are in place sources. Such sources of data include data, Singapore Customs ‘scans the
to interdict illicit trade, and ensuring information from Customs declarations, environment’ to identify evolving trends
that legitimate trade continues to flow other domestic agencies, commercially and patterns, assesses their impact, and
unhindered. This requires Singapore available databases, and open source responds to threats and opportunities
Customs to be adept at data analysis, information platforms. Information is posed by them.
which strengthens enforcement and also obtained from intelligence sources,
boosts compliance by the trading of local origin and via international Tools and methodologies
community. collaborative efforts such as feeds from Wit h t he adva ncements i n data
the WCO Regional Intelligence Liaison analytics, i.e. the pursuit of extracting
Accurate prof iling and targeting Office (RILO). meaning from raw data using specialized
enhance the effectiveness of Singapore computer systems, Singapore Customs
Customs’ compliance checks. This The collected data, which may be in a has endeavoured to strengthen its data
also sends a clear message to would-be structured or unstructured form, may analytics capabilities by progressing
smugglers that despite the huge volume not be fed into the same risk engine. from descriptive analytics to the use of
of goods crossing the country’s borders, Some of the data that has been collected predictive analytics.
Singapore Customs remains highly is used to substantiate an analysis.
capable in detecting illegitimate or It is also important to ascertain the De sc r ipt ive a na ly t ic s u se s d at a
fraudulent transactions. reliability and validity of collected data, aggregation and data mining to provide
which Singapore Customs does through insight into the past and answers
various means, including verifying the the question: “What has happened?”
19DOSSIER
Data analysis
n
io
ct
lle
co
Predictive analytics, on the other lower than the historical norm.
es
a
gi
at
lo
D
hand, uses statistical models In addition, shipment details
do
ho
and forecast techniques to were found to be inconsistent
et
g
in
m
understand the future and w i t h a n i m p o r t e r ’s p a s t
et
&
rg
ls
y
ta
o
answers the question: “What bu si ness ac t iv it ies. T hese
nc
To
ed
te
as
pe
could happen?” irregularities were assessed to
-b
om
sk
fit the risk profile of historical
fc
Ri
af
st
To make sense of the data that cases involving similar modus
g
in
it collects, Singapore Customs operandi, providing off icers
ld
ui
B
leverages its data warehouse where with enough just cause to target
voluminous collected data is stored, the shipment for inspection, which
such as shipment clearance times and led to the detection of duty-unpaid
declaration-related information. Using cigarettes.
data extraction tools, officers piece
together information from different The two critical factors Building staff competency
data sources, and establish relationships Singapore Customs has a dedicated team
and links. Through this approach, the contributing to the success doing threat assessment on shipments
officers are able to observe deviations, of data analytics are the soft and producing reports on evolving trends
and identify specific trends and patterns and patterns. The team comprises officers
in the trading environment. knowledge of Singapore who are trained in diverse disciplines
Customs officers, as well as such as engineering, economics and
Singapore Customs has a lso social sciences. At the organizational
implemented an anomaly-detection the hard elements of data level, all Singapore Customs officers are
business intelligence (BI) tool to flag analytics tools. taught to apply risk assessment in various
shipments whose details fall out of the aspects of Customs' work. The officers are
norm. On a real-time basis, the tool also subject to job rotations every 3 to 5
risk-scores Customs declarations based years, enabling them to broaden their
on pre-defined criteria and historical knowledge and experience, and build
datasets in order to identify anomalies. up their risk assessment capabilities as
a whole.
Apart from identifying shipments that
are out of the norm, Singapore Customs computers to find hidden insights The ‘sof t k nowledge’ acquired by
also analyses the similarities in Customs without being explicitly programmed Singapore Customs officers from data
declarations. Customs declarations to look for them, in order to further analysis is critical in decision-making.
which exhibit extreme similarities could develop Customs’ predictive capabilities Such knowledge is strongly associated
be an indicator of rampant incorrect in targeting. with officers’ domain knowledge and
declarations. experience. As such, the two critical
Risk-based targeting factors contributing to the success of
As there are continual developments By a na lyzing data, such as data data analytics are the soft knowledge
in the area of data analytics, Customs on historical shipment trends and of Singapore Customs officers, as well
officers are required to keep abreast modus operandi (MO), Singapore as the hard elements of data analytics
of new technologies, and constantly Customs officers are able to triangulate tools.
upgrade their knowledge. Singapore irregularities that could, for example,
Customs also actively engages other suggest non-compliance, and use the Singapore Customs officers performing
government agencies and Customs results to target suspicious shipments data a na lysis a re prov ided w it h
administrations to learn about their for inspection. The outcome of these comprehensive training so that they
experiences and best practices in the inspections also enriches the risk understand the rules and underlying
application of data analytics for fraud profiling capabilities of Singapore theories of data. They are also given
detection, as well as developments in Customs. hands-on experience in the enforcement
data analytics capabilities. and compliance aspects of Customs’
To illustrate: in a case involving the work. Regular joint training sessions
Moving forward, Singapore Customs detection of duty-unpaid cigarettes, with other Customs administrations
is exploring ‘machine learning,’ i.e. a Singapore Customs officers, through and other domestic agencies are also
method of data analysis that automates data analysis, observed that the weight conducted to enhance the officers’
analytical model building and allows of goods declared in a declaration was competencies in data analytics.
20You can also read
