Imagine a future where customs officers no longer rely solely on intuition and experience to identify smuggling and fraud, but instead leverage big data analytics to precisely target high-risk cargo and travelers. This vision is becoming reality for the Zambia Revenue Authority (ZRA), thanks to a specialized capacity-building workshop on data analytics recently conducted by the World Customs Organization (WCO).
The workshop, held from November 21-25, 2022 in Lusaka, Zambia, attracted over sixty ZRA officials, including the Commissioner of Customs. As data analytics represents a key priority for ZRA, this initiative strategically and technically strengthened the authority's efforts to enhance its analytical capabilities.
Workshop Content and Highlights
The program was jointly delivered through technical cooperation between the Sida-WCO Trade Facilitation and Customs Modernization Program for Sub-Saharan Africa (funded by the Swedish government) and the WCO BACUDA (Band of Customs Data Analysts) initiative supported by the Korea Customs Cooperation Fund.
- Needs-based agenda: Following preliminary engagements with ZRA, the WCO developed a customized program focusing on data quality, governance, and advanced analytics.
- Knowledge sharing: BACUDA experts and scholars from Uganda and Tanzania shared practical experiences, while Korean Customs presented its FINDER model for detecting high-risk networks.
- Data standardization: The workshop emphasized data standardization and integration as priorities for ZRA, including recommendations for enhancing the authority's data warehouse systems.
- Hands-on Python training: In a WCO first, participants used Google Colaboratory to practice Python coding, learning about data cleaning and the LITE-DATE fraud detection model.
- AI applications: Case studies from Uganda and Tanzania demonstrated practical applications of artificial intelligence in time-release studies, while BACUDA's flagship algorithms (AI HS and DATE) generated significant interest.
Building a Robust Data Ecosystem
The workshop provided ZRA with comprehensive guidance on establishing an effective data ecosystem:
- Governance framework: Establishing clear policies for data ownership, quality standards, security protocols, and access controls.
- Data quality improvement: Implementing assessment and enhancement programs to address inconsistencies and missing values.
- Warehouse optimization: Evaluating and upgrading existing data storage solutions for better scalability and flexibility.
- Analytical tools: Introducing advanced technologies like Python, R, and visualization platforms with appropriate training.
- Data culture: Fostering organization-wide data literacy through training and knowledge-sharing initiatives.
- Cross-functional collaboration: Promoting interdepartmental cooperation through shared data analysis teams.
BACUDA's Cutting-Edge Algorithms
The workshop highlighted several innovative BACUDA solutions designed to enhance customs operations:
- AI HS: An artificial intelligence system that automatically detects incorrect or ambiguous commodity classification, improving tariff accuracy.
- DATE: A time-release study optimization tool that identifies bottlenecks in cargo clearance processes.
- LITE-DATE: A streamlined version of DATE for resource-constrained administrations.
Regional Success Stories
BACUDA scholars from Uganda and Tanzania shared tangible results from their data analytics implementations:
Uganda Revenue Authority has significantly improved tax collection efficiency through advanced data analysis of taxpayer declarations and financial transactions, while optimizing audit processes.
Tanzania Revenue Authority has enhanced customs enforcement by analyzing cargo declarations and transportation patterns to identify high-risk shipments and routes, leading to more targeted inspections.
The Path Forward
As demand grows among WCO members for data analytics capacity building, the Sida-WCO TFCM Program and BACUDA Initiative stand ready to provide strategic and technical support. This workshop marks a significant step in ZRA's transformation into a truly data-driven organization, better equipped to combat fraud, facilitate legitimate trade, and fulfill its revenue collection mandate.