The World Customs Organisation (WCO) on 22 November announced that it had dedicated 2017 to the promotion of data analysis under the slogan “Data Analysis for Effective Border Management.” It called on its members to further promote their efforts and initiatives in a sector that is becoming a key element in the Customs modernisation process: collecting and analysing data.
Customs has a substantial amount of data at its disposal, such as data submitted for the Customs clearance process. Customs can also tap data from other government agencies, commercially available databases, and open source information platforms such as digitised global public records and multilingual news sources.
Moreover, physical objects are nowadays embedded within electronics, software, sensors and network connectivity, which enables these objects to collect and exchange data, a phenomenon known as the ‘Internet of things’.
Simply collecting data for its own sake, however, is not sufficient and Customs administrations may face the risk of being overwhelmed with an avalanche of data. Data only has value when it is used effectively and efficiently. It is critical, therefore, that Customs administrations leverage data to make informed decisions, especially given the sophisticated and evolving challenges that Customs administrations face every day.
Data analysis can propel Customs to new levels of success in both compliance and facilitation by enabling it to:
- improve risk management which supports enhanced detection of irregularities, illicit consignments, the suspicious movement of people and financial flows, and the facilitation of legitimate trade;
- learn from historical activity to predict trader or passenger behaviour;
- engage with other government agencies to leverage their experience and expertise;
- conduct quantitative research for purposes of building knowledge; and
- enhance performance measurement to improve officer practices and integrity. Data analysis thus can greatly support the core Customs objectives of revenue collection, border security, collection of trade statistics, and trade facilitation.
There are of course potential obstacles to the optimal use of data, such as the lack of qualitative data, data that has not been integrated or merged, lack of harmonisation of data across border agencies, lack of skilled resources, IT infrastructures and cultural challenges. In addition, it is vital that appropriate privacy and confidentially laws be respected.
As part of this initiative, the WCO will enhance the promotion of tools such as the WCO Customs Enforcement Network (CEN) which is a global Customs seizure database; the WCO Time Release Study (TRS) which is a methodology for measuring border agency clearance times; mirror analysis which involves using the HS Code to compare imports (or exports) of a country with exports (or imports) reported to the country by its trading partners to detect gaps in terms of quantities, weight or value that may reveal fraudulent flows or practices; the use of performance measurement to improve Customs procedures and integrity, such as through the techniques presented in the WCO Performance Measurement Contracts Guide; and the Data Model which supports data analysis by improving data collection and enabling the sharing of data between government agencies.