solutions

Compliance

Typically, compliance constitutes the essential duties of a Customs administration.  A declaration processing system coupled with modules covering distinct Customs regimes facilitates the management of Customs information.  But how reliable is the data?  Are suspect profiles detected?  Is appropriate action taken on this targeted information?  And how are Customs’ findings treated and integrated into the database?

Some of the mainstream compliance issues are represented below, highlighting the variety and complexity of issues that a Customs administration faces today.

• National security, including drug trafficking,
  terrorism and illegal immigration

• IPR intellectual property rights, protection for
  counterfeit and/ or grey market imports

• Origin compliance, in particular for trade
  agreements

• Transfer pricing violations through over-
  invoicing and other techniques

• Revenue compliance, money laundering or 
  capital flight

• Protection of national industries and anti-
  dumping

• Other international initiatives including
  enforcement of the CITES Convention
  regarding trade in endangered species, UN-
  imposed sanctions and international
  agreements

The TATIS approach to risk assessment, extendable to valuation, uses the availability of information that forms the basis for Customs targeting capabilities, which in turn ensures that legitimate trade is facilitated to the greatest extent possible.

Accurate valuation is crucial to the tax revenue of many countries (usually between 15% and 30% of a government’s total tax revenue).  This has become an extremely complex issue for which there is no simple solution.  What is needed is an automated, risk-based valuation system ("reason-to-doubt") that can direct Customs towards transactions that are worthwhile investigating against the WTO's manual valuation process.

The TATIS automated valuation control module provides the Customs officer with a reasoned basis to target price declarations for value fraud.  It builds a database of accepted declarations and employs statistical tools to make value decisions on transactions consistent with WTO methodology.  Coupled with the TATIS risk engine, which continually enriches risk profiles based on examination reports, it significantly increases the chances of detection through both predictive and transactional value fraud analysis.  The TATIS Customs valuation system may be used to support the import procedure.  It can also be integrated with existing declaration processing systems or integrated with offshore price verification services.

Customs modernisation and security concerns, focused on increasing efficiency with limited human resources, are driving the need for effective risk management.  As a critical part of today’s Customs business, this risk assessment complements investigation processes and procedures.

The TATIS risk engine analyses and filters customs data and transactions in order to generate a recommended course of investigative action.  Our approach is unique in its use of multiple decisional filters that address successive elements of transaction processing, together with multi-dimensional statistical techniques which qualify the risk and, most importantly, by dynamically incorporating the findings of examination teams to enhance profiles and filter effectiveness via a “feedback loop”.

The TATIS risk engine may be implemented as integral part of the TATIS solution or as a "bolt-on" extension to an existing declaration processing system.

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