The intensity of environmental changes is so much that organizations are in endless battle for existence. Organizations also need to make fundamental changes in elements of their company by using methods and tools such as quality management and reengineering, so that they can give better services in a high quality state.
Irica acting as a supervisor, has an important role in the countries international trade cycle. Irica should match itself with the needs and requirement of e-commerce, and should improve its structure and operational process, by re-engineering its procedures in a way that it accelerates and improves the performance of the overall cycle.
The joint responsibility of customs offices all around the globe is to match the cargoes and the persons with foreign trade regulations of that specific country. It also should generate revenue for the government in aspects of collecting customs charges, aspects of protection, health, political, religious, social, and environmental topics and the outgoing goods in order to familiarize and comply with the mentioned controls.
Due to the large volume of trade taking place, and the movement of passengers and the limited resources of Irica, physical evaluation of cargoes and passengers will be something impossible to achieve.
Any sort of delay involving the imports and exports of cargoes due to customs controlling process, will create extra costs for things such as moving, opening, and closing the cargo, corruption and hidden charges which will at the end result to the increase of the final cost of the goods which at the end, will lead to the reduction in the competitiveness of the goods & cargoes; especially in exports.
Thus, risk management is the only resolution to achieving these conflicting goals.
The definition of risk
There are several definitions of risk including the risk of accident, chance, and so on. But in fact, risk is the chance of an accident taking place which is likely to adversely impact on the efficiency of the organization’s activities.
Risk management is a logical and systematic way to identify, analyse, treat and control the risks in any sort of activity. With this type of management, administrators can utilize the resources they have available.
Risk Management in Customs
Risk means the possibility of a failure preventing the organisations from achieving the goals defined. Items that can be considered as a potential risk to customs from reaching their goals are listed as below:
– Changing the tariffs.
– Decreasing the value of the cargos in order to evade payment charges.
– The evaluation of the fees paid and the ability to refund extra costs paid by the client.
– Changing the certificate of origin
– Entry of substandard and unsanitary goods
– Entry of obscene materials which is against public morals such as drugs and etc.
Risk management in customs new comprehensive system
Before using the new comprehensive system, risk management was only used in assessment services in a short period of time and by examining the declarations and categorizing them into three tracks; Green, Yellow and red.
By creating a comprehensive system for Irica, which has the ability to implement risk management within it, we have been able to cover the assessment process and also to manage parts of the exit door which is describe as below.
Risk management on the exit door
It is estimated that between five to ten percent of the cargoes and persons who pass through the customs are marked as a threat; therefore, the customs office should identify them and control them. Thus, ninety percent of the cargoes and persons who pose whether no threat or small threat should be able to pass from the customs easily and without any hassle.
The main duty of inspectors at the exit doors is to confirm the papers and to implement the assessment services of the cargoes which are exiting the customs office. Also, one of the other duties of this department is to monitor the process of transit cargos. The action of sealing and providing an X-Ray of transit cargoes are duties of this section.
In the past, the customs process was in a way which after the issuance of the green license from the assessment services department, at the exit door, cargoes were chosen randomly and were inspected again. In addition to the extra costs and the extra time which was spent, this resulted to severe delays in the clearance process of cargoes in customs offices which lead to dissatisfaction of customers.
With the implementation of the customs brand new comprehensive system, designed by The Institute of Applied intelligent Systems (IAIS), for Irica, and with implementation of the risk management at the exit door, cargoes which are about to exit the customs are split into two separate tracks which is either green or red. This separation is done by evaluating the information provided about the cargo. These information include things like their weight, date of entry and etc.
In the green track, due to the matching specification provided and the evaluation taken place, the cargo is able to move on and exit the customs office with no trouble.
In the red exit track however, things are slightly different. At the exit door, the cargo is examined thoroughly to ensure that custom regulations are met accordingly.
Similarly, this is also parallel to the process of dealing with transit cargoes. This system automatically determines which cargo composes a greater risk to the national security and has a higher rate of braking the national customs laws. The cargoes indicated by the system are then x-rayed and are analysed for further clarification.
Currently, the risk management system is implemented in the “Rajaei” Customs office and as a result, the speed of clearance is reduced significantly.