Global trade arteries function much like human blood vessels, with goods serving as the lifeblood and customs authorities acting as the vital "heart." When this "heart" underperforms with lagging risk management, the "vessels" become clogged, significantly reducing trade efficiency. The question then becomes: how can we strengthen this "heart" to ensure smooth global trade flows?
A five-day Risk Management (RM) workshop recently concluded in Ulaanbaatar, Mongolia, supported by the Swiss State Secretariat for Economic Affairs (SECO) and the World Customs Organization (WCO) Global Trade Facilitation Programme (GTFP). This event served as both a comprehensive review and upgrade of the Mongolian Customs General Administration's (MCGA) risk control strategy implementation, aiming to enhance its capabilities in risk identification, assessment, and response to revitalize the country's foreign trade.
Diagnosing Current Challenges in Risk Management
The workshop moved beyond theoretical discussions to examine practical challenges facing Mongolian customs. WCO experts collaborated closely with Mongolian customs officials through hands-on exercises and in-depth discussions to evaluate the implementation progress of risk control strategies. The review specifically examined:
- Risk Control Strategy Implementation: The expert team conducted a thorough assessment of existing strategies, identifying bottlenecks and deficiencies while proposing targeted improvements.
- Data Governance Strategy Development: Recognizing data as the foundation of risk management, discussions focused on establishing robust data governance systems to ensure accuracy, completeness, and timeliness for reliable risk assessment.
- SPS Goods Risk Management: Special attention was given to developing scientific risk management principles for sanitary and phytosanitary (SPS) goods to maintain border security and prevent pest invasions.
Building Capacity Through Practical Training
To address these challenges, WCO experts designed practical exercises and interactive sessions to help customs officials:
- Enhance targeting capabilities through scenario simulations and case studies
- Optimize risk management plans based on operational realities
- Understand international best practices and emerging trends in customs risk management
Learning from International Experience
The workshop included a special session reviewing Mongolia's April 2023 study visit to the Australian Border Force (ABF), also supported by SECO-WCO GTFP. This comparative analysis allowed Mongolian officials to examine Australia's successful approaches to risk assessment, intelligence gathering, and enforcement cooperation.
Future Directions for Trade Facilitation
The workshop's ultimate objective was assisting MCGA in developing an actionable risk management plan aligned with WCO standards and international best practices. Effective implementation promises to:
- Significantly improve customs clearance efficiency
- Reduce trade costs
- Enhance border security against smuggling and illicit trade
This Mongolian initiative reflects broader global efforts toward trade facilitation. Through continued capacity building and technical support, programs like SECO-WCO GTFP help developing nations and transition economies enhance customs administration, ultimately benefiting the global economy.