Study On The Risk Management Model Of Chinese Customs Supervision Of Goods

Risk management was first introduced in Actuarial Science, and then applied in the areas of finance, manufacturing, and quality control etc. Since 1980’s, risk management as a management tool has been expanded to public administration. Such developed countries as America, Australia and Dutch etc, have applied the concept, methodology and technology of risk management in Customs. The World Customs Organization has also adopted risk management as a function of Customs Management in order to simplify and coordinate the Customs Procedures in <<International Convention on the Simplification and Harmonization of Customs Procedures>>.This paper introduces the background and basic situation of risk management in Chinese Customs.The demand for trade facilitation has been growing dramatically since the development of globalization. In order to resolve the issues between strict regulation and high efficiency caused by growing regulatory pressure of imports and exports, and understaffing challenges, China’s Customs started to introduce the concept of risk management in 1990’s and applied it in the practices. China’s Customs also plans to focus on innovation of risk management concepts and construction of regulatory systems in its Twelve Five Year Plan. The plan requires the concept, methodology, and technology of risk management to be applied in all fields of all procedures across the Customs. Therefore, the applied technology, approaches and means have improved significantly through years of practices and theoretic research. The China’s Customs risk management practices have converted from concept into application and its methodology and application have been more and more professional and delicate. It starts with information collection, risk management analysis, control, and channel settings etc., through the management of comprehensive operations, and ends with the application across all fields of operations. However, more and more issues to be resolved have been found through the development of risk management explorations and applications in years.The paper mainly focuses on the risk management of customs goods regulations. It compares and analyzes the procedures and operations of risk management of customs goods regulations across American, Dutch and Australian’s Customs. The objective is to help improve China’s Customs’risk management by analyzing their practices under the globalization. It also explores the optimization of Hefei Customs’ risk management model by analyzing the experiences and lessons learned by Hefei Customs’risk management practices of customs goods. It should provide guidance on how to optimize and improve the risk management practices for those Customs in similar.