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Risk Management Process of Ghana Revenue Authority (GRA) Customs Division

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The Ghana Revenue Authority (GRA) Customs division has a comprehensive manual on the Risk Management (RM) process. This article breaks down the main points and key takeaways from the manual.

Post-Clearance Audit (PCA)

Quick Release of Goods with Transaction-Based Audit

The PCA process allows for quick release of goods followed by transaction-based audit, reviewing business records associated with any declaration in question.

  • Supports risk assessment and treatment
  • Allows for adjustments as necessary
  • Coupled with random compliance measurement, transaction-based PCA is the best methodology to validate risk assumptions

Pre-Arrival Processing

Submission of Import Documentation Before Arrival of Goods

Pre-Arrival Processing allows for submission of import documentation before arrival of goods. This enables data mining and risk assessment prior to arrival, leading to faster processing for traders upon arrival.

Authorized Economic Operators (AEOs)

Facilitated Processes at the Border for Highly Compliant Traders

AEO/Trusted Trader programs identify highly compliant traders and reward them with facilitated processes at the border, including immediate release of goods. Trader compliance is identified through historical data in the Customs RM IT system.

Advanced Rulings

Classification, Origin, and Valuation of Goods Prior to Arrival or Departure

Customs rules on classification, origin, and valuation of goods prior to arrival or departure facilitate trade by promoting transparency and consistency in Customs operations. Risk-based advanced rulings provide a transparent framework to foster trust between Customs and traders and encourage trader compliance.

Border Agency Cooperation

Coordination of Activities to Facilitate Trade

Customs and other agencies coordinate their activities to facilitate trade, including joint controls. The requirement for joint inspections is based on risk assessment coordinated by Customs.

National Single Window (NSW)

Common Automated System for Customs and Other Agencies

The National Single Window provides a common automated system for Customs and other agencies to manage the movement and clearance of goods across borders. NSWs include risks based on Customs’ cardinal requirements as well as those of other involved MDAs.

Risk Management Process

Systematic Approach to RM Adopted by GRA Customs

GRA Customs adopts a systematic approach to RM, following these steps:

  1. Establish Context: Define objectives and operating environment of cargo processing.
  2. Risk Assessment: Identify, analyze, and prioritize risks.
  3. Address or Treat Risks: Define response to risk assessment and assign risk levels and selectivity.
  4. Ongoing: Constant communication, monitoring, evaluating, and adjusting.

Selectivity Channels

GRA Customs Uses the Following Channels:

  1. Green Channel: Immediate release of goods (default treatment).
  2. Yellow Channel: Review of all relevant documents by examining officer (release or Red Channel).
  3. Red Channel: Mandatory physical or scanning examination.
  4. Blue Channel: Immediate release with automatic low percentage random referral for PCA for Trusted Traders (AEOs).

Overall, the manual provides a comprehensive overview of the RM process used by GRA Customs, highlighting key concepts such as risk assessment, selectivity channels, and continuous monitoring and evaluation.