identification Flashcards
importer or exporter or the one who is engage in transit or like.
trader
the one with the relationship with customs excluding forwarders etc
trader
who merely convey international cargoes and customs brokers who merely submit declarations on behalf of trader
forwarder etc
an entity selected for an audit, not limited to importers as it can include exporters and transportation companies, customs broker etc.
auditee
collective term for commercial or industrial enterprise
business sector or community
usually referred to as “custom’s counterpart”
business sector or community
group of productive or profit making enterprise
industy
it is called commercial enterprise regardless of any rs with customs
company
one who is involved in or affected by a course of action
stakeholder
a business pattern with particular commercial
whole biz transaction/ transaction/ transaction pattern
physical distribution of an import or export cargo including payment distribution
whole biz transaction/ transaction/ transaction pattern
statements of an administrations overall intention and direction regarding PCS
PCA Policy
scheme or strategy for audits specifying the objective/ scope/ methodologies and assignment of auditor or team members for audit
audit plan
audit conducted at auditors premises usually by calling information through correspondence or telephone
desk audit
an audit conducted at premises of auditee
on-site audit
what are the objectives of PCA?
to verify that the value, origin and classification of goods is declared directly and amount of revenue legally due has been identified and collected
to ensures goods liable to specific import /export are properly declared (probihitions, restrictions, licenses and qouta)
to ensures condition relating to specific approvals and authorizations are being observed (pre-authenticated transit documents, preferential orgin/movements certificate, lisenses, qouta arrangement, customs and excise warehouses and other simplified procedure arrangement)
to facilitate international trade movements of compliant traders
it measures and improve compliance of trader
PCA
general annex in chapter 6 titled customs control, ______manage the worldwide increasing in trade and to provide traders with greater facilitation customs increasingly rely on “audit based control” using traders commercial system.
customs control system shall include_____
revised kyoto convention
audit based control
means measured by which the customs satisfy thenselves as to ACCURACY and AUTHENTICITY of declaration through examination of relevant books, records, biz system and commercial data held by person ls concerned
audit- based control
it is the mechanism ti verify and review
internal audit
conducted by company to review own internal procedures or by customs to review own internal rules and procedure
internal audit
what is the agreement of trade facilitation?
agreement on trade facilitation
- with a view to expiditing the release of goods, each member shall adopt or maintain post clearance audit to ensure compliance with customs and other related laws and regulations
- each member shall select a person or a consignment for psor clearance audit in a risk based manner, which may include appropriate selectivity criteria.
each member shall conduct post clearance audits in a transparent manner.
where person is involved in the audit process and conclusive results have been achieved the member shall without delay, notify the person whose record is audited of the results, the persons right and obligations and reasons for the results.
- the information obtained in post clearance audit may be used in further administrative or judicial proceedings
- members shall, wherever practicable, use the result of post clearance audit in applying risk mangement
benifits derived from PCA
- compliant trade is facilitated at the point of customs clearance and border controls can be reduced
- enables customs to gain better information on and understanding of traders biz
- risk kevels can be more easily asessed and reviewed: a premises visit provides the opportunity to identify risks and weaknesses in traders system
- facilitates client education, long term and comprehensive compliance mangement focus
- customs administrations resources are more effectively deployed
- customs can promote the concept of voluntary compliance and self assessment
-suspected fraudulent activities including cases illicit financial flow (IFL) , trade base money laundering (TBML) may be identified and refered to competent authorities and / or enforcement unit for appropriate action
- provides a platform for evaluating continued entitlement to authorized economic operator status, where applicable
types of AUDIT
comorehesive audit or systems based audit
focused audit or issue based audit
post importation transaction based audit
types of audit that looks at entire business conteol environment and impact this might have on customs compliance
comprehensive audit
this type of audit are analytical procedure that used heavily and substantivr testing is reduced where control environment and corporate governance systems are goods
comprehensive audit
this kinds if audit takes place at the presmises of audtitee (field audit)
comprehensive audit
pls note field audit
a complete picture of biz can be captured by ___ including examination of its biz systems, trading methods, partners/directors and internak control
FIELD AUDIT
this type of audit concentrates on one or few areas of customs like valuation, country of origin
focused audit
this type of audit est on related systems and controls and substantivr tests may akso be carried out
focused audit
this audit can introduce checks in ind transactions
post importation based audit
this type of audit can work in 2 ways the refferal and targetting
post importation based audit
2 work ways in post importation based audit
- referrals from the port/border post when an officer has doubts concerning particular declaration at the time of clearance
- if it deemed that significant duty may be at stake, an inquiry is then referred to appropriate customs office to further examine declrtion, normally in consultation with importer/exporter
- a targetting team ‘scrutinizes’ ind customs declarations after clearance and selects thise where doubts arise regarding their accuracy
- normally in cinsultation withh importer and exporter and action is taken as appropriate
PCA laws and regulations
-definition of PCA coverage (person or company subject to pca)
-authority and powers of customs officials/auditors conducting pca
-obligations and rights of auditees
-penalty scheme
-right to appeal
PCA SCOPE AND COVERAGE in biz inport /export of goods may be audited including the ff
- importers/exporters
- declarants
- consignee of importedgoods
- owners or benificial owner of imported goods
- subsequent acquirers of imported goods
- customs clearing agents of im/ex goods
- storage agent of in/ex goods
- transporters of im/ex goods
- other person or company directly and indirectly involved in transaction of imported or export goods
authority powers and ovligations of customs officer
rights to…
- access auditees premises
- examine biz records, biz/trading systems and commercial data relevant to customs decla
- inspect auditees premises
- uplift and retain docs and biz records
- inspect and take samples of goods
obligations and rights of auditees
a requiremnt to…
- maintain specified documentation , information and records
——-duration for retaining such records should be NO LESS THAN THE MAXIMUM PERIOD AFTER IM OR EXPORTSTION when customs legally demand underpaid duty and make refund for overpaid duty - to make such doc, info and records available in a timely manner
a right to…
-appeal
- an explanation from customs concerning determination of customs value
- expect confidential treatment of biz docs
- clearance of goods at the frontier wth provision of security
- to amend declarations w/o penalty in appropriate circumtances
types if organizational structure
centralized and decentralized audits
these are advantage of ___
-enhance communication, coordination and sharign knowledge
- better supervision and management control
- more effective riskmangemnt (feedbcks sent to risk mgment unit in more coordisnted manner)
centralized audit
read page 13-14 advantage and disadvantage
