Risk management and Customs performance improvements: The case of the Republic of Macedonia

The main dilemma in Customs management, especially during the last two decades, is balancing the needs for trade facilitation as a process of simplification, standardization and unification of documents and procedures in international supply chain, on the one, and the level of controls and interventions, on the other hand. Dealing with this dilemma, Customs significantly changed its role and position in the international supply chain. Mainly, Customs replaced its gatekeeper's role, with the new modernized, complex and very sophisticated risk management approach. The main characteristic of customs risk management approach is determining which persons, goods, and means of transport should be examined and to what extend. High-risk persons, goods and means of transport are subject of high-level controls and interventions; despite of low-risk ones that receive high-level trade facilitation. The Customs Administration of the Republic of Macedonia, as an institution involved in all international modernization processes related to trade facilitation and efforts to ensure duty collection and social security and safety, implements contemporary improvements and developments in standardization and harmonisation of customs procedures and management systems. The main goal of this paper is to analyze the importance of risk management approach for straightening Customs performance quality, with special emphasize on Macedonian Customs experience. (C) 2011 Published by Elsevier Ltd. Selection and/or peer-review under responsibility of Faculty of Tourism and Hospitality