Section 32: Application risk management techniques

1 Customs controls, including random checks, shall primarily be based upon risk management using electronic data processing techniques and other conventional methods, with the objective of identifying and evaluating risks and developing necessary counter-measures on the basis of risk management criteria developed and updated regularly from international, national and local data.

2 In managing risk, the Service shall apply customs controls to risks determined to be unacceptable, based upon pre-established risk criteria.

3 A cost-benefit analysis may be used to determine unacceptable risk and such risk shall be prioritised.

4 A risk register shall be maintained by the Service providing the rationale underlying risk identification and the risk register established shall be updated regularly to accommodate current developments.

5 A risk profile containing the description of the risk areas, assessment of the risk, the counter-measures to be taken, implementation dates, and an evaluation of the actions, shall be prepared and regularly updated for each customs office.

6 Compliance measurement of risk management shall be conducted by the Service through a regular compliance measurement program and such compliance measurement shall involve the use of statistically valid random sampling techniques to determine the degree to which traders conform to customs rules and procedures.

7 Compliance measurement referred to under subsection (6) may also entail the use of random checks, post clearance audits, external government audits and other methods.

8 Joint control and targeting activities based upon risk management may be carried out by the Service in collaboration with foreign customs administrations to increase the effectiveness in assuring the security of shipments and in combating transnational crime.

9 Specific information regarding risk management such as risk registers, risk profiles, and other risk assessment data pertaining to traders, goods or transactions, are confidential and shall not be released to any person not authorised to receive such information.

10 Any person who contravenes the provision of subsection (9) commits an offence and is liable on conviction to a fine of N5,000,000 or imprisonment for a term of two years or both.

11 The penalties referred to in subsection (10) shall not apply to officers carrying out their official responsibilities provided that officers who release risk registers, risk profiles, and other risk assessment data to any persons not authorised to receive such information shall be subject to disciplinary action as may be prescribed in extant rules or regulations.

12 The Service shall apply the use of an organisational and intelligence driven risk management in all its operations, including administrative and clearance procedures.

13 A central database for information and reports on all administrative and operational activities and events shall be made available for the purpose of risk management.

14 A risk management strategy and policy documents shall be maintained and shall be updated every two years to meet current realities.

15 A standing risk management committee shall exist at all times and its duties will include the bi-annual review of the Service risk management strategy and policy documents and provide direction for risk criteria setting and the treatment of risks inherent in the Service.

16 A risk management unit shall be established and exist at all times for the purpose of carrying out risk identification, risk analysis, risk profiling, risk evaluation, risk criteria setting and post seizure analysis in accordance with the risk strategy and policy of the Service as approved by the customs management.

17 The risk management unit shall have access to all data and information from all units and departments required for the carrying out of risk analysis and profiling.

18 The Service shall take all necessary steps in the pursuance and implementation of a harmonised risk management approach with other border partner government agencies in the trade supply chain.

19 Risk management shall be implemented in line with international best practices as stipulated in the World Customs Organisation Risk Management Compendium and other similar documents published by international organisations such as the World Trade Organisation, World Bank and the United Nations.