1. Seoul, 23-25 April 2008 Risk Assessment and Control System (RIKS) Lithuanian Customs IT – a new consistent risk management approach

2. WCO Framework of Standards to Secure and Facilitate Global Trade Standard 1 – Integrated Supply Chain Management Standard 2 – Cargo Inspection Authority Standard 3 – Modern Technology in Inspection Equipment Standard 4 – Risk-Management Systems Standard 5 – High-risk Cargo or Container Standard 6 – Advance Electronic Information Standard 7 – Targeting and Communication Standard 8 – Performance Measures Standard 9 – Security Assessments Standard 10 – Employee Integrity Standard 11 – Outbound Security Inspections

3. GLOBAL THREAT Abu Sayyaf (ASG) -- Philippines Al-Qaida (The Base/ Bin Laden) Loyalist Volunteer Force – Northern Ireland Aum Shinrikyo (Supreme Truth) -- Japan Armata Corsa -- France Revoliutionary Peoples Liberation Front -- Turkey ETA (Freedom for the Basque Homeland) -- Spain Hamas -- Palestine Hezbollah (Party of God) -- Lebanon Red Army Faction -- Germany Irish Republican Party (IRA, Real IRA, Continuity IRA) -- Northern Ireland Kach and Kahane Chai -- Israel Kurdistan Workers' Party (PKK) -- Turkey Liberation Tigers of Tamil Eelam (LTTE) -- Sri Lanka Great East Islamic Riders Front (IBDA-C) -- Turkey Mujahedin-E-Khalq (MEK, MKO, NLA) -- Iran National Liberation Army (ELN) -- Colombia New People's Army (NPA) -- Philippines November 17 Revolutionary Organization -- Greece Revolutionary Armed Forces of Colombia (FARC) -- Colombia Shining Path (Sendero Luminoso/SL) -- Peru Tupac Amaru Revolutionary Movement (MRTA) -- Peru Etcetera… London New York Osetia Madrid

4. MAIN FACTORS THAT KEEP TERRORISM ALIVE - Money - Infrastructure - Means of communication - Illicit trade: Smuggling Counterfeits Weapons Drugs Drugs

5. physical control of goods at the posts and on patrol analysis of certain risks and risk profiling (goods, enterprises, persons) intelligence and investigations (destroying of financing mechanisms of terrorist organizations) exchange of information prevention POTENTIAL OF CUSTOMS SERVICES WITH REGARD TO COUNTER- TERRORISM MEASURES

6. Information Exchange (Global) Flow of goods Flow of information RILO

7. Intelligence units of national customs administrations (NCP) RILO (CEN) ? Appropriate information CURRENT INFORMATION REPORTING

8. RILO NATIONAL LEVEL Local filtering, violation prevention & crime investigation CIACCCIACC Regional coordination Threat assessment & risk profiling, coordination CUSTOMS INFORMATION CORDINATION CENTRE CIACCCIACC GLOBAL CUSTOMS INFORMATION & COORDINATION STRUCTURE

10. KALININGRAD TRANSIT EU external border LT border

11. National level Regional level Post level Information Exchange in Lithuania Customs Department Customs Post Customs Post State Tax Inspectorate Other institutions Regional Customs Regional Customs

12. Information Exchange in Europe EU: RIF, RMF, ECS2, ICS, AFIS, CIS, NCTS National: RIKS, NCMIS, PREMI, ATPP Future - Common Risk Profiles

13. RIKS Risk Assessment & Control System (RIKS)

14.  to detect risk  to process data from internal and external sources  to calculate risk of declaration and trader  to collect information about resuls of controls Functions of RIKS

15. Parts of RIKS CLEARANCE: Risk information Risk assessment Verification Act AUDIT: Preparation for assessment of traders Assessment of traders Preparation of list of candidates for audit Processing of audit RIKS

16. Assessment of Declaration by RIKS Check Release

17. Calculation of Risk Score Risk objectBox of DeclarationWeightingRisk value Person Consignor 3From 0 to 3 Consigner Customs broker Country Country of departure 1From 0 to 3 Country of destination Country of origin CommodityHS code ProcedureCode Risk score is counted:  weighting i  value i Risk level: 0 – no risk, 1 – low risk, 2 – medium risk, 3 – high risk

18. Assessment of Traders by RIKS Risk scores Traders Info Review Traders adding to Candidate List

19.  Highly configurable system  Able to use external and internal sources  Can communicate with other systems  Collects results of controls  Feedback of controls Advantages of RIKS

20. Impact of RIKS

21. Only highly configurable IT system like RIKS could enhance Customs integrity, efficiency and co- operation, could support its activity, addressed to secure and facilitate international trade, combat terrorism and organized crime! Conclusion

22. THANK YOU FOR YOUR ATTENTION!

23. Juozas Rimkevičius Deputy Director General of the Customs Department under the Ministry of Finance of the Republic of Lithuania Tel.: +370 5 266 6107 Fax: +370 5 261 2085 E-Mail: juozas.rimkevicius@cust.ltjuozas.rimkevicius@cust.lt