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Risk management for targeting customs controls in developing countries: a risky venture for revenue performance?
Author(s) -
Geourjon AnneMarie,
Laporte Bertrand
Publication year - 2005
Publication title -
public administration and development
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.574
H-Index - 44
eISSN - 1099-162X
pISSN - 0271-2075
DOI - 10.1002/pad.336
Subject(s) - revenue , business , developing country , control (management) , key (lock) , finance , international trade , risk analysis (engineering) , economics , computer security , economic growth , computer science , management
Customs authorities in developing countries are often reluctant to forget systematic inspections for fear of risking revenue loss. Such physical inspections however, impede rather than facilitate trade. Control selectivity is therefore a key issue in customs administration reform. This paper shows how a sophisticated risk management method can facilitate trade by automatically and rationally selecting transactions, with the end result of actually enhancing revenue performance. Copyright © 2005 John Wiley & Sons, Ltd.