Risk Analysis for Single Window Application REGIONAL SEMINAR “ELECTRONIC SINGLE WINDOW: MODELS AND EXPERIENCES” Antigua, Guatemala March 29th, 15:35 – 16:05hrs

Risk Analysis Discussion This module will analyze outcome and results of single window as a trade facilitation tool to reduce transactional costs as well as a centre for information and risk analysis. Panelist: Chris Thibedeau, VP World Wide Customs, Regulatory and Law Enforcement, GreenLine Systems Commentators: Maria Ortega Monllor, Tenerife Customs Naden Vencatachellum, Mauritius Revenue Authority

Risk Management Should be Endorsed By All Single Window Agencies Systematically implementing risk management at strategic, operational, and tactical levels ensures that border administrations best deploy resources to protect their citizens from threats to health, safety, and security, while simultaneously supporting economic growth by maintaining efficient and predictable cross border transit times. This leads to operational synergies and complementary reforms that can be implemented jointly or in parallel by all administrations involved in the cross border movement of goods and people.

Problems That Will Be Encountered By Not Using Risk Management Approaches Historically, many customs administrations have used risk adverse approaches requiring a full inspection of all shipments, conveyances, crews and passengers. Costly in resources as it applies the same degree of intensity to all threats Constrained in that it forces a lower degree of inspection intensity overall due to a uniform treatment of all cargo and passengers Creates a high incidence of officer errors due to higher workloads Realizes fewer enforcement results Encourages normally law-adhering entities to circumvent the system to hasten the cross-border transit of their goods Creates opportunities for criminals to circumvent and avoid interdiction by making customs reactions predictable Slows the supply chain Hinders economic growth Does not scale Fails ultimately to achieve efficient, secure border management

Technology is the Enabler The WCO SAFE Framework of Standards to Secure and Facilitate Global Trade specifically mentions that customs administrations should develop or procure automated risk management systems. Based on international best practices, risk assessment systems use standard data sets and strategic intelligence to support identification of high-risk shipments and travelers. Adopting an automated risk assessment system is a significant step towards successfully adopting risk management practices strategically, operationally, and tactically. Border control processes that use risk assessment systems help ensure that customs resources are always focused on the highest risk shipments and people in real time.

Automated Risk Assessment Systems Automated risk assessment systems process electronic pre-arrival data in an analytical workflow to identify the shipments or passengers of most interest. Low risk shipments and passengers are facilitated and high risk ones are set aside for additional scrutiny. These systems are a powerful component of an effective risk management program. Global economies use these systems to focus their efforts on the highest risk people and goods while facilitating low risk persons and shipments.

Automated Risk Assessment Systems: Features Electronic acceptance of documents Interfaces for creating user defined risk rules Pre-developed rules based on international standards Grouping of rules based on certain threat types User interfaces to display relevant data and rule hits Case management Archiving Entity based statistics Exam findings capture Lookouts and watch-lists for intelligence driven operations Query functionality for tactical identification of shipments, Dynamic rule tuning to aid in timely updates to the system and the ability to create and update qualitative (officer intuition) and quantitative (statistical analysis) rule sets The ability to adapt to new methodologies

Example Screen Shot for Discussion

10 Questions for Discussion Is technology adoption the most significant catalyst for establishing a risk management framework for Single Window? Can we cut time and cost by leveraging the best practices and benchmarks for systems already adopted by other administrations? Should Risk Assessment Centers be established or centralized in one location? Will the IDB support our Single Window/Risk Analysis efforts with funding and/or subject matter expertise? How important is “change management” in this area? My administration uses ASYCUDA as our commercial reporting system. Can a risk assessment system interface or use this data? How would we collaborate and share decisions with our SW agency partner administrations? What Administrations use risk assessment systems today? What data is key for effective risk analysis in a SW environment? How would we begin with an initial risk rule set?

For More Information We have an additional document that can be shared: InterAmerican Development Bank’s Knowledge and Capacity Product: “Risk Management for Cargo and Passengers.” Chris Thibedeau Vice President, World Wide Customs, Regulatory and Law Enforcement (w) 613-216-7991   (fax)  613-216-7994  (cell)  613-884-8162 | Email: cthibedeau@greenlinesystems.com www.greenlinesystems.com USA Office: 241 18th St Suite 500 I Arlington, VA 22202 Maria Ortiz Customs, Trade Facilitation and Logistics Integration and Trade Sector Tel: 1-202-623-2391 1300 New York Avenue, N.W. Washington, D.C. 20577 USA mariaortiz@iadb.org www.iadb.org