Customs risk management in business
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.
- Market: Global