Inspecting Less to Inspect Better : The Use of Data Mining for Risk Management by Customs Administrations

Under the revised Kyoto Convention on the simplification and harmonization of customs procedures, the World Customs Organization recommends that intrusive customs inspections be limited (WCO 2003). This proposal has also been discussed in the context of World Trade Organization trade facilitation negotiations. Therefore, despite the temptation to ramp up systematic inspections in light of the events of September 11, 2001, the most modern customs administrations have continued to rely on risk analysis as the only effective means for both facilitating trade and securing their own operations, given the important growth in trade volume in recent years (Harrison and Holloway 2007).