Discover the 10 reasons why CRMS®, our risk management system, is a must have for Customs looking to reduce risks and enhance revenues.
For customs administrations, the determination of the right level of control is a critical decision to ensure trade complies with the regulations and the supply chain remains smooth. With the increasing growth of trade volume and the complexity of the associated risks, they often struggle to evaluate accurately the risk on each declaration and allocate the proper counter-measure. Fortunately, the potential created by technology is now available to assist them in their endeavours.
For many years Cotecna has been refining its CRMS® to secure trade, reduce clearance times and make better use of resources. This article highlights the top 10 reasons why our risk management system provides the best results for an efficient management of Customs operations and enhancement of revenues.
1. Artificial intelligence driven
Artificial intelligence is being used in many fields to increase productivity, reduce human errors and optimize or automate processes. Its benefits no longer need to be proven, that’s why CRMS® relies primarily on artificial intelligence in its core to drive its virtual risk engine. By using machine learning, our risk management system can automatically process large sets of data, detect trade risks patterns and better predict risks in customs environment.
2. Combined risk assessment methods
In addition to machine learning, CRMS® combines complementary methods such as selectivity based on analysed, categorized and refined customs intelligence as well as random selection. This unique combination makes our risk management system robust, effective and in compliance with WTO’s requirements on Trade Facilitation and WCO’s RKC and SAFE Framework of Standards.
3. Accuracy scientifically validated
The methodology used by Cotecna to compute risk score and predict the fraud has been scientifically validated. A high level of prediction accuracy is guaranteed with a minimum hit rate at 80% if data requirements are fulfilled. In the long run it empowers Customs Authorities by providing them with trustworthy and efficient decision-making tool.
4. Automatic and dynamic scoring
The other strength of our artificial-intelligence-based risk management system is that it automatically generates risk results without the need of human intervention. Translated in the customs environment, it increases objectivity and reduces arbitrary controls. Additionally, the dynamic scoring which takes account of the daily controls results, to continuously update the scores of the transactions and considers fluctuating non-compliance patterns, strongly favours accurate results.
5. Automatic risk factors weight computation
Our risk management system also computes the relative importance of each risk factor when making the prediction. It highlights which factors are the most relevant to the fraud prediction and which ones are less. This provides more insights to Customs on the factors or profiles to pay the most attention during their control making their actions more focussed.
6. Risk results at item level and fraud type
In addition to providing automatic and dynamic scoring, the results reported in our system present a remarkable level of detail. Risk information are at item level and per risk area (such as valuation, classification, smuggling, etc).
Thus, allowing Customs Authorities to precisely tackle the fraud and focus the inspection on the items that were pointed out by the system. This significantly reduces customs clearance time and increases agent productivity.
7. Automated inspectors’ workload simulation
One of the main challenge of Customs is to conciliate trade volume and complexity with the limited resources available. Our CRMS® provides a tool that enables Customs to simulate the operational workload in relation to the expected volume of trade and assist customs to take the appropriate decision to guarantee the best level of productivity without weakening the security.
8. Transparent and consistent
We apply machine learning models that make sense for customs business users to ensure they can interpret the results and they are able to understand how and why specific declarations are oriented as they are. It also provides the assurance of being able to audit decisions in the long term. The black-box effect is removed.
9. Intuitive & User-friendly
Our objective is to guarantee a high level of adoption among customs agents. To ensure that, we designed an easy to use and intuitive tool to allow customs to take full ownership of it. We also developed a system which can smoothly interface with any Customs management system and/or dataset. Cotecna is also committed to training Customs agents and transferring the knowledge needed to use our solution.
10. Customs revenue enhancement
With more than 45 years of experience working jointly with Customs administrations, we have acquired an expertise that we have used since to serve our clients. That’s why our risk management system has been developed to respond to customs’ challenges. Through a better targeting of customs declaration our CRMS®’s main objective is to help them enhance their revenue and find the right balance between control and trade facilitation.
For more information about our Customs solutions or to request a demo please contact us at email@example.com