February 06, 2022
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Customs risk

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What is risk from a customs point of view?

From a customs point of view, ‘risk’ refers to the likelihood and the impact of an event occurring, with regard to the entry and exit of goods moved between the customs territory and other territories, which would:

  • prevent the correct application of customs territory measures; 
  • compromise its financial interests; 
  • pose a threat to the security and safety of its residents, to human, animal or plant health, to the environment or to consumers.

What is customs risk from business perspective?

The legal rules applicable to goods brought into or taken out of the customs territory, on the one hand, impose requirements to comply with, and on the other hand, offer various procedural simplifications and tax saving opportunities. Therefore, businesses manage two types of risk:

  • the risk of non-compliance with legal requirements;
  • and the risk to miss out to acquire competitive advantage (by not utilising legal possibilities).

Customs compliance and risk management should be integral parts of the same management process. See article Managing customs risk and compliance: an integrated approach by Professor David Widdowson.

Comments ()

en, lt
Customs-competent staff: nice to have or a must?
02-10-2022

Customs compliance is full of challenges and ‘surprises’ from counterparties, customs brokers, carriers and other persons involved. Unpredictable risks and conditions are the inevitable companions of international trade. However, there are many areas where companies might keep most of the risks under their control. What are these areas? What should companies do to mitigate such risks and meet the related challenges?

Assoc Prof Dr Momchil Antov

compliance and risk management
en, lt
Customs-competent staff: nice to have or a must?
02-10-2022

Customs compliance is full of challenges and ‘surprises’ from counterparties, customs brokers, carriers and other persons involved. Unpredictable risks and conditions are the inevitable companions of international trade. However, there are many areas where companies might keep most of the risks under their control. What are these areas? What should companies do to mitigate such risks and meet the related challenges?

Assoc Prof Dr Momchil Antov

compliance and risk management
image en
Non-compliance with customs laws: who is liable?
25-09-2022

Anthony Buckley

compliance and risk management
image en
Non-compliance with customs laws: who is liable?
25-09-2022

Anthony Buckley

compliance and risk management
en, lt
Targeting compliance in the minefield of customs (trade) rules
23-08-2022

‘I would recommend trade compliance to anyone with the ability to distil complex, rigid structures down to a practical reality. Trade compliance rules are a minefield that even the most seasoned professionals cannot confidently claim they have a complete grasp of. If you're willing to constantly be challenged and willing to continuously learn you'll probably fit in well.’– says Samuel Draginich, Senior Trade Compliance Manager, EMEA (Europe, Middle East, and Africa), Amazon EU and Member of the Editorial Board of CCRM journal.

Samuel Draginich

compliance and risk management
en, lt
Targeting compliance in the minefield of customs (trade) rules
23-08-2022

‘I would recommend trade compliance to anyone with the ability to distil complex, rigid structures down to a practical reality. Trade compliance rules are a minefield that even the most seasoned professionals cannot confidently claim they have a complete grasp of. If you're willing to constantly be challenged and willing to continuously learn you'll probably fit in well.’– says Samuel Draginich, Senior Trade Compliance Manager, EMEA (Europe, Middle East, and Africa), Amazon EU and Member of the Editorial Board of CCRM journal.

Samuel Draginich

compliance and risk management
en
Some thoughts on Customs role in sustainable development
01-07-2022

This article looks at how Singapore Customs strives to bring efficiency in the management of trade operations to lower their impact on the environment as well as at the initiatives it has taken to support environmental policies.

compliance and risk management
en
Some thoughts on Customs role in sustainable development
01-07-2022

This article looks at how Singapore Customs strives to bring efficiency in the management of trade operations to lower their impact on the environment as well as at the initiatives it has taken to support environmental policies.

compliance and risk management
en
Four common misconceptions in the relationship between importers and customs brokers
16-06-2022

Importers often try to avoid customs clearance processes, relying entirely on the customs broker. On the one hand, the broker is a customs expert, possesses relevant experience and, ultimately, receives a commission for his/her work. It seems that the importer should not be involved in the processes managed by the customs broker. On the other hand, such self-exclusion can result in very unpleasant financial and reputational consequences. This article considers the most common misconceptions of importers in cooperation with customs brokers, which cause losses for both sides.

Peter Mitchell

compliance and risk management
en
Four common misconceptions in the relationship between importers and customs brokers
16-06-2022

Importers often try to avoid customs clearance processes, relying entirely on the customs broker. On the one hand, the broker is a customs expert, possesses relevant experience and, ultimately, receives a commission for his/her work. It seems that the importer should not be involved in the processes managed by the customs broker. On the other hand, such self-exclusion can result in very unpleasant financial and reputational consequences. This article considers the most common misconceptions of importers in cooperation with customs brokers, which cause losses for both sides.

Peter Mitchell

compliance and risk management
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