RISK

ASSESSMENT
 Risk Assessment is
the application of various
techniques to assess the
probability that goods being
processed through Customs
Control have not been declared
or not fully declared
 Role of Risk Assessment
in Customs Control

To ensure that all movements of

goods, vessels, vehicles, aircraft
and persons crossing national
borders occur within the framework
of laws, regulations and
procedures
 Role of Risk Assessment
in Customs Control

Provide a solution to the

problem of having effective
control and facilitation at
the same time
Classifications of RISK
1. High Risk
2. Medium Risk
3. Low Risk
 Profiling

an enforcement tool that

can provide enforcement
officers with a picture of
a smuggler or the modus
operandi of a smuggling
operation
 Profiling
Sources of Information
a. Seizure Reports
b. Intelligence Information;
c. Interviews with Customs
Officers and other Law
Enforcement Personnel;
 Profiling
Sources of Information
d. Interviews with other
knowledgeable people from
the importing and
transportation field;
c. Other documents such as
manifests, Airway Bills, etc.
 Profiling
Indicators
Country of Origin
Supplier
Shipper
Tariff Commodity
(HS Code)
 Profiling
Indicators
Commodity Description
Customs Broker
Importers
- with residential addresses
- single proprietorship
- with track record
 Profiling
Indicators
Subject of Derogatory
Information against Importer,
Commodity, Shipper, Broker,
etc
Commercial Fraud Defined
- any offense against statutory or regular provisions which
Customs are responsible for enforcing, committed in order to:
a. Evade or attempt to evade, payment of duties/
levies/ taxes on movements of commercial goods;
b. Evade, or attempt to evade, any prohibitions or
restrictions applicable to commercial goods;
c. Receive, or attempt to receive, any repayments,
subsidies or other disbursements to which there
is no proper entitlement;
d. Obtain, or attempt to obtain, illicit commercial
advantage injurious to the principle and practice
of legitimate business competition.
Type of Commercial Fraud

Smuggling - to bring into or

take-out of a country goods in breach
of any law or prohibition or evade or
attempt to evade any taxes leviable
without making a declaration or by
avoiding controls.
Smuggling Types

1. Smuggling of commercial goods across borders or out of

warehouses.

2. Misdescription
3. Under or Over Valuation

4. Abuse of origin/preference regimes (including tariff quota)

5. Abuse of inward/outward processing relief regimes

6. Abuse of import/export licensing requirements

Smuggling Types

7. Abuse of transit regimes (diversion to home use)

8. False declarations of quality/quantity

9. Abuse of end-use regimes

10.Infringement against Trade Description Acts or Consumer
Protection Regulations

11.Counterfeit/ Pirate Goods

12.Off-record transactions
Smuggling Types

13.Ghost business/fraudulent registrations of business to

wrongfully obtain tax credits
14.Contrived liquidations (Declare Bankruptcy then open a
new Company with the same set of Officers).
Problems / Concerns of the
Philippine Customs Service

MISDECLARATION
- Illegal Drugs disguised as Regular
*
Commodity Shipments e.g. Lead Ingots
Problems / Concerns of the
Philippine Customs Service

MISDECLARATION
-*Used Vehicles declared as Used Replacement
Parts
Problems / Concerns of the
Philippine Customs Service

MISDECLARATION
- Rice & Sugar declared as Other Commodities
Problems / Concerns of the
Philippine Customs Service

MISDECLARATION
- Fake Branded Commodities disguised as
Regular Import Commodities
Problems / Concerns of the
Philippine Customs Service

MISDECLARATION
- Used Clothings disguised as Personal Effects
Problems / Concerns of the
Philippine Customs Service

VALUATION
-*Declared Value Based on Weight

-*Double Invoicing

-*Fake Invoice
Problems / Concerns of the
Philippine Customs Service

MISCLASSIFICATION
Use of Different HS Codes to avoid:
- *Payment of Excise/Specific Taxes/ AVT
- *Payment of Higher Rate of Duty
- Presenting Documentary requirements from
other Government Agencies
*
Problems / Concerns of the
Philippine Customs Service

OTHERS
-*Prohibited exportation of endangered species

- Currency Exportation of unauthorized

* entities