Detect tax risks in customs declarations related to CAP obligations

Customs

This algorithm helps Customs to select goods for inspection based on risk. It uses declaration data from companies and considers whether or not there are risks of inaccuracies in the declarations for the purpose of determining correct financial measures and levies (including import duties and VAT).

Last change on 9th of December 2024, at 15:34 (CET) | Publication Standard 1.0

• Publication category: Impactful algorithms
• Impact assessment: Field not filled in.
• Status: In use

General information

Theme

Public finance

Begin date

7-2011

Contact information

[e-mail]

Link to publication website

https://www.belastingdienst.nl/bibliotheek/handboeken/html/boeken/HDU/bijzondere_bepalingen_bij_invoer.html

Responsible use

Goal and impact

The purpose of this algorithm is to more efficiently select which declarations may have been incorrectly completed. This algorithm focuses on monitoring Common Agricultural Policy obligations and looks at declarations of goods coming from outside the European Union. It indicates which declarations have a higher risk of fraud or incorrect data. Customs checks companies more or less based on the results. By using this algorithm, declarations are handled more efficiently, resulting in declarations being checked faster and possibly released faster.

Considerations

Customs processes 700 million declarations every year. This algorithm (risk profiles) allows Customs to assess declarations more efficiently and faster. Thus, declarations are approved or checked faster than without the use of this algorithm. And goods are released faster. The algorithm also ensures that 'known and reliable' companies are actually checked less.

Human intervention

If a declaration produces a match with a risk profile, a customs officer reviews the declaration. If necessary, the customs officer asks for more information. The decision to approve a declaration, or instead to start checking, is made by a human being.

Risk management

A risk profile is always developed and checked by at least two customs staff before use. This is the 4-eye principle. And once the profile is in use, a weekly check is made for a profile to see how many declarations produce a match. If necessary, the profile can be adjusted. Periodically, Customs checks per profile whether it is still needed. Customs monitors internal and external complaints and incidents, for example if a profile is insufficiently specific and therefore designates too many declarations as higher risk.

Legal basis

Legal basis for control for the purpose of establishing financial measures and levies lies in the Union Customs Code (DWU), the General Customs Act and Council Regulation (EEC) No 2913/92, establishing the Community Customs Code (CCC). These laws ensure that levying takes place correctly and in the right way. The use of risk profiles also relies on DWU section 46. This says customs controls must rely primarily on risk analysis by electronic data processing techniques.

Links to legal bases

• https://wetten.overheid.nl/BWBR0023746/2024-01-01/#Hoofdstuk1 : Algemene Douanewet
• https://eur-lex.europa.eu/legal-content/NL/TXT/PDF/?uri=celex:32013R0952 : Douanewetboek van de Unie
• http://belastingnet.belastingdienst.nl/cms/html/WD2-2e9a1c8b-0d3d-42e6-a01f-e7285ae06f8f : CDW

Operations

Data

The algorithm uses all data from the goods declaration. For example, type of goods, goods code, weight, number of packages, consignee, declarant, consignor, country of consignment, EORI number, means of transport, etc.

Links to data sources

https://www.belastingdienst.nl/wps/wcm/connect/bldcontentnl/belastingdienst/douane_voor_bedrijven/naslagwerken_en_overige_informatie/andere_onderwerpen/gegevensvereisten/: Gegevensvereisten douaneaangiften (zie Bijlage B Gedelegeerde Verordening Douanewetboek van de Unie + Bijlage VIa van de Algemene Douaneregeling)

Technical design

The algorithm consists of decision rules created in cooperation with content experts. These decision rules provide estimates as to which declarations have a higher risk of fraud or incorrect data in customs declarations with respect to CAP obligations. These decision rules are based on 'if-then-else' combinations. An example: if (if) the information we have on a consignment shows that the goods have an abnormal weight, (then) the declaration is checked manually and the consignment may be selected for extended inspection. If the goods do not have an abnormal weight (else), we do not stop the shipment. Or at least not based on this criterion.

External provider

Internally developed