Risk Analysis – definition, training and application area within National Customs Agency SOFIA, 4-7 OCTOBER 2005

Risk analysis system applied at National Customs Agency was developed in order to implement the: International Convention on the harmonization of trans-frontier control of goods; WCO recommendations; EU guidelines; NCA Business Strategy 2001 – 2006. The Bulgarian National Customs Agency adopted the same definitions for risk analysis, risk assessment, risk profiles and risk indicators as specified at “A guide to risk analysis and customs control “ issued by DG XXI at EC.

DEFINITIONS Risk analysis – working method which aims to optimise the use of human and financial Customs resources while minimising the risk by: - identifying the risk; - assessing the level or degree of risk; - formulating the risk; - allocating resources to target the risk. Risk indicators – factors expressed in relation to given risk which taken together increase or reduce the degree or level of the risk inherent in each risk area Risk profile – a set of paper or electronic documentation tailored to regional and/or local traffic which a Customs office uses in risk analysis

In order to successfully implement the EU standards, the Bulgarian National Customs Agency has developed an Automated Risk Analysis and Management package as part of the Enforcement Module of BICIS 2.2. This package consists of : definition of the risk indicators and profiles (national and regional, simple and complex) and the links among them; definition of the geographical coverage and time period of the risk profiles; specific actions of the Customs officers to be undertaken; recording after-action results; possibility of subsequent analysis of the after-action results; generate statistical reports to support and facilitate the analytical work.

The Automated Risk Analysis and Management package objectives are: automation of risk analysis activities and application of the selectivity procedures in order to enhance effectiveness of the Customs control; precise targeting of consignments subject to control; recording the examination results in a database, subject to a subsequent analysis; limitation of the nonobjective decision making by front-line officers concerning Customs control measures thus reducing the level of corruption; development and record keeping of risk profiles as well as implementation of all established profiles for a particular consignment; periodic update of the profiles based on accumulated intelligence and seizure data as well as subsequent evaluation of the existing profiles.

RISK Center System Architecture System Administrator Customs officer RISK DB Communication channel Analyst Advance declaration processing Physical examination

The Automated Risk Analysis and Management package main functions are: processing of requests for reports generated from Customs clearance data base; definition and management of risk profiles; selection of the accepted Customs declarations; recording of the results from specific actions of the Customs officers. A special order issued by the DG of NCA specifies namely the Customs servants in charge of maintaining and supervising the system.

Each risk profile includes General part: Identification – description, risk level, category, type of the document; Application area; Activation. Risk indicators: Identification number; description; Input data; Criteria. Actions: Description; Expected results.

BICIS Risk Management module Selectivity control engine Customs Declaration Customs clearance operational data base Selectivity results Selectivity control engine Statistical reports Definition and management of the profiles Examinations/ Checks Customs Clearance Procedures Intelligence information MAT Reports Examination Results Effectiveness review

TRAINING All training activities of NCA are conducted in accordance with approved annual training plan which reflects the needs of the Customs administration; The training activities take place at the 3 Customs training schools (Sofia, Plovdiv, Russe); From the beginning of 2005 a total number 25 training courses and seminars have been carried out where 523 enforcement and field officers took part; Both Bulgarian and Foreign trainers have been involved in the training process; Two courses concern directly the implementation of EU best practices: Reinforcement of the Capacity of the Border Control, and Train the Trainers events.

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