Risk Management System
in the Republic of Kazakhstan
A risk management system is used when selecting objects of customs control, forms of customs control, and/or measures ensuring the conduct of customs control.
The risk management system is understood as a set of measures carried out by customs authorities to achieve the objectives defined in Chapter 51 of the Code of the Republic of Kazakhstan "On Customs Regulation in the Republic of Kazakhstan" (hereinafter referred to as the Code).
The following key concepts are used within the framework of the risk management system:
risk – the probability of non-compliance with the customs legislation of the Eurasian Economic Union and the Republic of Kazakhstan;
risk profile – a set of information regarding the risk area, risk indicators, and risk mitigation measures;
risk level – a value characterizing the relationship between the frequency of occurrence of an event associated with non-compliance with the customs legislation of the Eurasian Economic Union and the Republic of Kazakhstan and the possible consequences (damage) resulting from the occurrence of said event;
risk mitigation measures – forms of customs control and measures ensuring the conduct of customs control provided for by this Code, as well as other measures established by the customs legislation of the Eurasian Economic Union and the Republic of Kazakhstan, applied on the basis of risk assessment;
risk management – the systematic activity of customs authorities to minimize the probability of the occurrence of events associated with non-compliance with the customs legislation of the Eurasian Economic Union and the Republic of Kazakhstan, and the possible consequences (damage) resulting from their occurrence;
risk assessment – actions to identify and analyze risk and determine the risk level;
risk identification – actions aimed at detecting, recognizing, and describing a risk;
risk analysis – the use of information available to customs authorities to determine the risk area and risk indicators;
risk indicator – a sign or set of signs enabling the selection of an object of customs control;
risk area – a description of the risk and the conditions under which it arises. Customs authorities use a risk management system to select objects of customs control and measures to minimize risks.
Customs authorities use the risk management system to conduct customs control while goods are under customs control and within the timeframes established by Paragraph 8 of Article 393 of the Code, as well as to conduct customs control in accordance with Paragraph 9 of Article 393 of the Code.
The primary objectives of the use of the risk management system by customs authorities are:
ensuring the effectiveness of customs control;
focusing on high-risk areas and ensuring the efficient use of customs authorities' resources;
creating conditions to accelerate and simplify the movement across the customs border of the Eurasian Economic Union of goods for which no need to apply risk minimization measures has been identified.
Customs authorities may apply the risk management system when conducting other types of state control (supervision) assigned to them by the customs legislation of the Eurasian Economic Union and/or the legislation of the Republic of Kazakhstan.
The strategy and tactics for the application of the risk management system by customs authorities, as well as the procedure for its operation, are approved by Order No. 100 of the Minister of Finance of the Republic of Kazakhstan dated February 1, 2018.
The risk management process carried out by customs authorities includes:
collecting and processing information on objects of customs control, customs operations performed, and the results of customs control conducted both before and after the release of goods;
risk assessment;
description of risk indicators;
determination of risk minimization measures and the procedure for their application;
development and approval of risk profiles;
selection of objects of customs control;
application of risk minimization measures;
analysis and monitoring of the results of applying risk minimization measures;
evaluation of the effectiveness of the measures specified in this paragraph. Customs authorities primarily utilize digital systems and technologies in their risk management activities.
Customs authorities implement the risk management process in accordance with procedures established by the authorized body (confidential information).
Information contained in risk profiles and risk indicators is confidential, except in cases prescribed by the legislation of the Republic of Kazakhstan.
To apply risk mitigation measures on a differentiated basis, customs authorities may categorize persons conducting customs operations by assigning them to low, medium, or high risk categories.
The categorization of persons conducting customs operations has been successfully employed over the past few years as part of the implementation of the risk management system.
Categorization is based on an analysis of data characterizing the activities of foreign economic activity participants (FEA participants) during periods prior to the categorization process. Categorization relies on data regarding FEA participants obtained from the digital systems of tax, customs, and other government agencies.
The categorization process takes into account any instances of non-compliance with the customs legislation of the Eurasian Economic Union and the Republic of Kazakhstan.
Information regarding the categorization procedure, criteria, and the classification of importers by category is confidential and restricted to official use. This approach reflects global best practice and is recommended by experts from the World Customs Organization (hereinafter referred to as the WCO), including recommendations made during WCO diagnostic missions.
The State Revenue Committee continuously analyzes the results of the risk management system's application; where necessary, ineffective risk indicators and profiles are adjusted or discontinued.