Detecting risks of inaccuracies in customs declarations for excise duty

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.

Last change on 28th of February 2024, at 12:29 (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

03-2013

Contact information

[e-mail]

Link to publication website

https://www.belastingdienst.nl/wps/wcm/connect/bldcontentnl/belastingdienst/douane_voor_bedrijven/accijns_en_verbruiksbelasting/inleiding_accijns_verbruiksbelastingen/accijns_en_verbruiksbelasting_cluster

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 excise products (tobacco, alcoholic beverages and mineral oils) and looks at declarations of goods coming from outside the European Union. It indicates which declarations have a higher risk of smuggling, fraud or incorrect data. Based on the results, Customs checks companies more or less.

Considerations

Customs processes 700 million declarations a year, including excise duty declarations. This algorithm (risk profiles) allows Customs to assess declarations more efficiently and faster. Thus, declarations are approved or checked faster. And goods are released faster. The algorithm also ensures that 'known and reliable' companies are actually checked less.

Human intervention

If a declaration yields a match with a risk profile, a Customs employee reviews the declaration. If necessary, the Customs employee 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 checked by a second customs officer (4-eye principle) before use. 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 excise control lies in the Union Customs Code (DWU), the General Customs Act and the Excise Act. These laws ensure that excise duty is levied correctly and properly. The use of risk profiles also relies on DWU section 46. This says that customs controls should mainly rely on risk analysis by electronic data processing techniques.

Links to legal bases

• https://wetten.overheid.nl/BWBR0005251/: Wet op de accijns
• https://eur-lex.europa.eu/legal-content/NL/TXT/PDF/?uri=celex:32013R0952: Douanewetboek van de Unie

Operations

Data

The algorithm uses all data from the goods declaration. For example, type of goods, commodity code, weight, number of packages, consignee, declarant, consignor, country of consignment, ear 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 collaboration with content experts. These decision rules provide estimates of which declarations have a higher risk of smuggling, fraud or incorrect excise data. 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