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International scientific-online conference
185
MODERN METHODS OF RISK MANAGEMENT SYSTEM
IMPROVEMENT IN CUSTOMS AUTHORITIES
Farkhodov Farrukh Furkatovich
teacher at the department of Customs regulation
and customs payments of the Customs Institute
Email: farrux.farxodov@gmail.com
Yusupov Lazizbek Orifjon o'g'li
4th year student of the Customs Institute
Email:lazizbekyusupov31@gmail.com
https://doi.org/10.5281/zenodo.16994333
Abstract:
This thesis examines the risk management system practices in
the customs authorities of the Republic of Uzbekistan and proposes
recommendations for its development based on modern methodologies.
Keywords:
Risk, risk management, foreign economic activity participants,
risk management system, customs, risk identification, customs control.
Today, the risk management system is recognized as a tool for optimizing
customs control, preventing illegal activities, and accelerating trade flows. The
customs system of Uzbekistan is also carrying out significant reforms in this
direction.
The expansion of the scope of risk management system usage serves to
optimize existing requirements for trade facilitation, develop cooperation with
the trade community, and creates necessary conditions to ensure balance
between effective control and trade facilitation. In this regard, new approaches
to optimizing the risk management system, the experience of risk management
systems in foreign countries, and opportunities for their utilization have been
studied.
The essence and importance of risk management in customs authorities,
modern methods of risk management, specific features of risk identification,
mathematical models of risk management processes, and algorithms for
classifying and evaluating customs risks based on multidimensional analysis of
customs information have been researched by a number of scholars in our
country, including A. Saidov, M.M. Xamrayev, A.O. Nazarov, X.B. Ro'zimetov,
Sh.Sh. Shoha'zamiy, L.T. Pulatova, D.N. Sharipova, and appear in their scientific
research and literature
1
.
1
1
Saidov A.A. Methods of creating an automated management system of the State Customs Committee of the
Republic of Uzbekistan. // Technical sciences doctoral dissertation abstract. -- T.: 2015. -- 43 p.; Xamrayev
M., Ruzmetov X., Nazarov A. Risk Management System. // Textbook. -- T.: 2020. -- 260 p.; Shoha'zamiy
Sh.Sh. Financial Market and Securities. // Textbook. --T.: 2007. --- 281 p.; Pulatova L.T., Saidov A.A.
Problematic issues of implementing risk management systems in phytosanitary and veterinary control at
checkpoints across the customs border of the Republic of Uzbekistan; Sharipova D.N. Risk management in
the personnel management system of customs authorities. -- 2016.
↩
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In particular, M.M. Xamrayev, A.O. Nazarov, and X.B. Ro'zimetov in their
textbook "Risk Management System" noted that the application of the "Risk
Management" system aimed at selecting forms and methods of customs control
implementation, creating favorable conditions for honest foreign economic
activity participants with low risk levels, drastically reducing time and costs for
customs formalities, and preventing corruption has become an integral part of
customs control[4].
Furthermore, Professor Joshua Angrist, in economic analysis and
statistical methods, particularly methodologies for determining causality,
emphasizes the necessity of quality data and reliable analytical methods in
making effective and informed decisions[5]. This is also important in risk
management and policy decision-making. Thomas Cantens, in his research
within the World Customs Organization (WCO) framework, defines risk as
unknown or uncontrolled threats in the customs control process. He states that
more effective results can be achieved through the use of big data and artificial
intelligence technologies in risk management[6]. His research is dedicated to
predicting customs risks and reducing them through profiling.
By Presidential Decree PF-5414 of the Republic of Uzbekistan dated April 12,
2018, "On measures to fundamentally improve the activities of the state customs
service bodies of the Republic of Uzbekistan"[7], the Customs Committee was
tasked with developing and implementing an automated risk management
system that envisages selective customs control of goods.
For the purpose of further improving customs administration, simplifying
customs procedures, increasing the efficiency of customs authorities' activities,
ensuring compliance with customs legislation by foreign economic activity
participants, encouraging honest entrepreneurs, and improving the investment
environment in the country, Presidential Decree PF-5582 of the Republic of
Uzbekistan dated November 24, 2018, "On additional measures to improve
customs administration and increase the efficiency of the state customs service
bodies of the Republic of Uzbekistan"[3] was adopted, introducing "yellow" and
"red" channels in the automated risk management system from December 1,
2018, and "green" and "blue" channels from March 1, 2019.
The risk management system was gradually implemented at border customs
posts, including:
2020: automobile border customs posts
2021: railway and aviation border customs posts
The risk management system for customs control of international courier
shipments was piloted from April 21, 2025.
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Figure 1. Stages of risk management system implementation
By Presidential Decree PF-57 of the Republic of Uzbekistan dated March 25,
2025, "On measures to increase the efficiency of state customs service
bodies"[8], the goal was set to:
Increase the efficiency of the risk management system by 2 times by
2030 using artificial intelligence elements
Double the share of human-factor-free customs declaration
processing by 2026
Based on this, a new "Classification" module of the system will be created by
increasing the weight of information about foreign economic activity
participants based on data obtained from other ministries and departments, and
customs cargo declarations with low risk levels, including transit declarations,
will be processed fully automatically without human involvement.
Analyses show that certain problems existing in the system, particularly
insufficient integration of databases and incomplete implementation of
information technologies, affect the efficiency of risk identification. At the same
time, it has been determined that the risk management system can be optimized
through widespread introduction of digital technologies in customs activities,
use of artificial intelligence and data analysis tools, and strengthening
international cooperation. This, in turn, serves to simplify customs processes,
prevent illegal activities, and increase foreign economic activity.
The implementation of the risk management system is of great importance
in improving the investment environment in the country and encouraging
honest entrepreneurs. Simplification of customs procedures improves the
activities of foreign economic activity participants and increases compliance
with customs legislation. This, in turn, ensures sustainable development of the
country's economy. Therefore, customs authorities need to focus on further
improving the risk management system. There is a need to develop the risk
management system in customs authorities by studying the experience of
foreign countries. Based on the above, the following recommendations are
made:
To improve the system of expedited customs control of individuals
entering the republic by analyzing them based on the "Risk Management"
information system, integrate the State Security Service Border Guards
at FEA
customs
posts
at motor
vehicle
customs
posts
at railway
customs
posts
at air border
customs
posts
in
international
courier
shipments
2019
2020
2021
2021
2025
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information system with the Customs Committee information system for online
exchange of biometric data and photographs of citizens crossing the state
border;
Implement a system for advance submission of information about
individuals moving through border customs posts;
Integrate risk management systems of phytosanitary and veterinary
control bodies with customs authorities' information systems;
Develop a risk module within the risk management system that
ensures control of goods' TNVED codes from border entry until final regime
registration;
Implement artificial intelligence elements that automatically update
themselves based on existing and incoming data in the risk management system.
In conclusion, as the foreign trade volume of the Republic of Uzbekistan
continues to grow annually, the risk management system is the optimal method
for expediting the movement of goods and transport vehicles through customs
borders. Optimizing the risk management system is not only part of internal
reforms for customs authorities but also an important tool for adapting to global
trends and ensuring economic security
References:
1.
International KYOTO Convention on the simplification and harmonization
of customs procedures. -- Kyoto, 1973.
2.
Trade Facilitation Agreement. -- Geneva, 2014.
3.
Presidential Decree of the Republic of Uzbekistan PF-5582 dated
November 24, 2018, "On additional measures to improve customs
administration and increase the efficiency of the state customs service bodies of
the Republic of Uzbekistan."
4.
Xamrayev M., Ruzmetov X., Nazarov A. Risk Management System. //
Textbook. Customs Institute, 2021. -- 263 p.
5.
World Customs Journal, article, Kunio Mikuriya and Thomas Cantens.
6.
Global Trade and Customs Journal, article, Margarita Tisliakova.
7.
Presidential Decree of the Republic of Uzbekistan PF-5414 dated April 12,
2018, "On measures to fundamentally improve the activities of the state customs
service bodies of the Republic of Uzbekistan."
8.
Presidential Decree of the Republic of Uzbekistan PF-57 dated March 25,
2025, https://lex.uz/docs/-7451997
9.
Nazarov A.O. "Prospects for minimizing financial risk at border customs
posts" PhD dissertation abstract, T:2023. 56 p.
10.
Ro'zimetov X.B. "Improving management efficiency through risk
assessment in the customs system" PhD dissertation abstract, T:2024. 60 p.
