Machine learning, i.e. the process of teaching a computer system how to make accurate predictions when fed data, can help Customs administrations to identify revenue fraud or other illegal activities. In this article, TTEK, a technology solutions firm, explains how the technology works and introduces the analytical tool it has developed in this domain for Customs administrations.
It is now nearly 40 years since the WTO Valuation Agreement came into force, and the commercial world has changed radically since then. This has been recognized by the WCO Secretariat and by many Customs administrations that experience difficulties in the practical application of the Agreement. Commonly identified obstacles include updating valuation databases, establishing information-exchange between parties, identifying transfer pricing, managing vast volumes of poorly declared e-commerce transactions, and responding to the changing needs of the business sector with respect to trade facilitation.
At the time of writing, there are 164 countries that are members of the WTO; the most recent addition being Afghanistan in July 2016. In addition, several other countries have chosen voluntarily to adopt the Agreement as the basis for determining Customs value. To meet the terms of their international obligations, Customs officers generally apply up to six practical methods to determine the value of goods.
Read the article in WCO news magazine, here.