Data Analysis Techniques for Enhancing the Performance of Customs

One of the most powerful tools available to Customs to reconcile the functions of controlling the international movement of goods with the needs of trade facilitation is represented by data collection and analysis techniques. These techniques are supported by the use of statistics, algorithms and other mathematical tools, as well as by adequate IT systems for their treatment. If properly used, they can allow Customs to act in a targeted way to achieve their institutional objectives more efficiently. Customs authorities can improve the effectiveness of controls and their overall performances not only by analysing the traders' historical activity and the number of past frauds detected, but also by using additional sources of information, both internal and external to the administration. The reality, however, is that today most customs administrations use data analysis almost exclusively for conducting risk management and risk scoring activities. Instead, a holistic approach suggests that modern Customs should use such techniques also for facilitating trade, not only by minimising obstacles for operators in terms of fluidity of their operations, but by observing and analysing their behavioural patterns to introduce simplifications in customs procedures aimed to make them more user-friendly.