WTOSymposium on Practical Experience of
Implementing Trade Facilitation Measures
Post-Clearance Audit Case Study
July 10, 2012Judith Han
Director, Department of Valuation, DGOCChinese Taipei
Outline • Brief overview of PCA • Application of IT systems • Case study• Costs and outcomes of implementing
PCA• Continuing improvements • Conclusions
Brief overview of PCA • Implemented from 2002• Establish PCA framework• Identify targets for auditing; e.g. incorrect
classification, valuation, country of origin • Recover evaded duties; impose fine and/or
penalty• Place traders acting abnormally on watch list• Refer to competent agencies for further
investigation
Application of IT systems• Tariff operation system • Valuation database• Customs information system• Import/export trade statistics
management system • PCA management and operation
system• Others
Case StudyBackground—target at high-risk imported goodsAlert--undervaluationRisk Identification-no transaction documentsAnalysis--possible customs fraud Procedures--check with bank and foreign attachés Key Issues: different wire transfer amount, falsified invoices Outcome: US$208,200 evaded duties & fines to be leviedLessons taken: enrich valuation database, enhance scrutiny, instruct importers
Costs of implementing PCA (for fiscal year 2010 - ’11)
Number of auditors 40
Personnel expenses US$ 2.610,900
Training expenses US$ 11,000
Total cost 2010 – ‘11 US$ 2,621,900
Outcomes from implementing PCA (for fiscal year 2010 – ‘11)
Audits completed 583
Discrepancies found 454
Estimated value of evaded duties and fines recovered US$ 26 mill.
By type of discrepancy found: - Valuation 49.57% - Tariff classification 18.70% - Origin 1.72% - Description of goods and specification 1.20% - Concealment in imported goods 0.17% - Others 6.52%
Continuing Improvements
• Integrating related IT systems and valuation database• Strengthening ability to analyse and identify risk
Conclusions
Efficiency Effectiveness Cost & Benefit; Ensure Compliance Trade Facilitation Monitor of non-Com.
3Es
Enlightenment Experience Sharing
- Domestically - Within WTO
Thank you for your attention !