A Short Guide to Customs Risk

A Short Guide to Customs Risk

With a foreword from Kunio Mikuriya, the Head of the World Customs Organization, “A Short Guide to Customs Risk” will enable you to make informed decisions about managing Customs risk.

 

Moving from frontier checks to audit based controls has transferred a high level of responsibility and risk to the trader.

 

For the business, failing to provide satisfactory compliance records will result in delayed shipments and serious disruption in the supply chain. This will in turn impact on financial performance indicators such as Days in Inventory, Days Sales Outstanding and of course Cash Flow. The business will also have to endure in depth Customs audits during which Customs officers will inspect each step of the audit trail disrupting day-to-day business operation. Errors uncovered during these audits will yield heavy financial penalties and a Customs debt.

 

Ultimately, Customs risk will impact on shareholders value. Customs and finance reporting should receive the same level of attention. However, if all companies check carefully their tax returns, only a few check their import or export declarations with the same scrutiny.

 

Managing Customs risk is often seen as a cost centre but it is also a source of competitive advantage. A sound Customs management can reduce or remove Customs duties, generate savings, and generally improve cash flow using the many Customs procedures available to the compliant trader. Help is at hand, “A Short Guide to Customs Risk” will enable you to make informed decisions.