International Journal of Management and Fuzzy Systems

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The Effectiveness of Customs Risk Management Selectivity Process on Import Trade; The Case of Ethiopian Customs Commission (Time Series Big Data Analysis)

Received: 13 November 2023    Accepted: 29 November 2023    Published: 22 December 2023
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Abstract

The main purpose of this study was to analyse the effectiveness of import trade risk selectivity system in Ethiopian customs commission risk management process. The study aims to examine how strongly manual selection, rule base selection, random selection and list base selection method are associated with detection rate. The study employed descriptive and explanatory method with quantitative research approach. Three years secondary data from Ethiopian customs risk management system was collected. For this study there are four independent variables; manual selectivity, rule base selectivity, random selectivity and list base selectivity with one dependent variable i.e. detection rate. The collected data were analyzed using descriptive and inferential statistics. For this research, Pearson correlation coefficient was applied to examine how strongly each selectivity method is associated with detection rate. From the analysis result, it was concluded that manual and rule base selectivity’s have strong negative association with detection rate while random and list base selectivity’s have strong positive and weak positive association respectively. Recommendations were also given to compliance and risk directorate has to continue with strengthening the existing working process and procedure regarding on manual selection method, the directorate has to work more to improve efficiency and effectiveness of rule base selection through automatic risk profile analysis of importers and goods and revising the current selectivity criteria.

DOI 10.11648/j.ijmfs.20230901.11
Published in International Journal of Management and Fuzzy Systems (Volume 9, Issue 1, December 2023)
Page(s) 1-9
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Detection Rate, Manual Selectivity, Rule Base Selectivity

References
[1] Agresti and Finlay (1999). Statistical Methods for the Social Sciences. upper saddle river.
[2] Biljiana and Trajkova. (2012). risk managmemt and customs performance improvement. social and behavioral science.
[3] Cohen. J (1988). Statistical Power Analysis for the Behavioral Sciences (2nd ed.). Hillsdale, NJ: Lawrence Erlbaum Associates, Publishers.
[4] Debebe and Tekilu. (2016). 'Effects of procastination on customs clearance cost in Ethiopia'.. international affairs and global strateg.
[5] ECMS (2019-2021). electronic customs management system.
[6] Harrison and Holloway (2007). the demise of risk managmenet. melbourne.
[7] Harry T. Dimitriou (2016). The Application of Policy-led Multi-Criteria Analysis to Megaproject Transport Infrastructure Appraisal. The Journal of Research in Transportation Economics.
[8] Tewoldebirhan. W. (2011). Challenges of Customs on Trade Facilitation in Ethiopia: The case in ERCA. unpublished.
[9] TRDP (2015-2021). trader risk data profile (TRDP).
[10] UNCTAD. (2008). the challenge of assesing the creative economy towards informed policy making.
[11] WB. (2005). customs modernization handbook. washington Dc.
[12] WCO. (2008). Customs in the 21st century. enhancing growth and development through trade facilitation and border security.
[13] WCO. (2010). security and facilitation of trade: consolidated results of safe framework implementation survey.
[14] WCO. (2011). risk managment compendium. the WCO cross -border research association.
[15] WCO. (2012). What Happened to the Selected? Performance Measurement of the Korea Customs Service Selectivity System, Research Paper No. 27.
[16] WCO. (2020). Enhancing customs control in Cambodia through risk management policy by Hong Sreya. Journal of world Customs.
[17] Widdowson. d. (2005). Managing Risk in the Customs Context.
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  • APA Style

    Bawoke Tiruye, M. (2023). The Effectiveness of Customs Risk Management Selectivity Process on Import Trade; The Case of Ethiopian Customs Commission (Time Series Big Data Analysis). International Journal of Management and Fuzzy Systems, 9(1), 1-9. https://doi.org/10.11648/j.ijmfs.20230901.11

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    ACS Style

    Bawoke Tiruye, M. The Effectiveness of Customs Risk Management Selectivity Process on Import Trade; The Case of Ethiopian Customs Commission (Time Series Big Data Analysis). Int. J. Manag. Fuzzy Syst. 2023, 9(1), 1-9. doi: 10.11648/j.ijmfs.20230901.11

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    AMA Style

    Bawoke Tiruye M. The Effectiveness of Customs Risk Management Selectivity Process on Import Trade; The Case of Ethiopian Customs Commission (Time Series Big Data Analysis). Int J Manag Fuzzy Syst. 2023;9(1):1-9. doi: 10.11648/j.ijmfs.20230901.11

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  • @article{10.11648/j.ijmfs.20230901.11,
      author = {Mengistu Bawoke Tiruye},
      title = {The Effectiveness of Customs Risk Management Selectivity Process on Import Trade; The Case of Ethiopian Customs Commission (Time Series Big Data Analysis)},
      journal = {International Journal of Management and Fuzzy Systems},
      volume = {9},
      number = {1},
      pages = {1-9},
      doi = {10.11648/j.ijmfs.20230901.11},
      url = {https://doi.org/10.11648/j.ijmfs.20230901.11},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijmfs.20230901.11},
      abstract = {The main purpose of this study was to analyse the effectiveness of import trade risk selectivity system in Ethiopian customs commission risk management process. The study aims to examine how strongly manual selection, rule base selection, random selection and list base selection method are associated with detection rate. The study employed descriptive and explanatory method with quantitative research approach. Three years secondary data from Ethiopian customs risk management system was collected. For this study there are four independent variables; manual selectivity, rule base selectivity, random selectivity and list base selectivity with one dependent variable i.e. detection rate. The collected data were analyzed using descriptive and inferential statistics. For this research, Pearson correlation coefficient was applied to examine how strongly each selectivity method is associated with detection rate. From the analysis result, it was concluded that manual and rule base selectivity’s have strong negative association with detection rate while random and list base selectivity’s have strong positive and weak positive association respectively. Recommendations were also given to compliance and risk directorate has to continue with strengthening the existing working process and procedure regarding on manual selection method, the directorate has to work more to improve efficiency and effectiveness of rule base selection through automatic risk profile analysis of importers and goods and revising the current selectivity criteria.
    },
     year = {2023}
    }
    

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    AU  - Mengistu Bawoke Tiruye
    Y1  - 2023/12/22
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    T2  - International Journal of Management and Fuzzy Systems
    JF  - International Journal of Management and Fuzzy Systems
    JO  - International Journal of Management and Fuzzy Systems
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    PB  - Science Publishing Group
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    UR  - https://doi.org/10.11648/j.ijmfs.20230901.11
    AB  - The main purpose of this study was to analyse the effectiveness of import trade risk selectivity system in Ethiopian customs commission risk management process. The study aims to examine how strongly manual selection, rule base selection, random selection and list base selection method are associated with detection rate. The study employed descriptive and explanatory method with quantitative research approach. Three years secondary data from Ethiopian customs risk management system was collected. For this study there are four independent variables; manual selectivity, rule base selectivity, random selectivity and list base selectivity with one dependent variable i.e. detection rate. The collected data were analyzed using descriptive and inferential statistics. For this research, Pearson correlation coefficient was applied to examine how strongly each selectivity method is associated with detection rate. From the analysis result, it was concluded that manual and rule base selectivity’s have strong negative association with detection rate while random and list base selectivity’s have strong positive and weak positive association respectively. Recommendations were also given to compliance and risk directorate has to continue with strengthening the existing working process and procedure regarding on manual selection method, the directorate has to work more to improve efficiency and effectiveness of rule base selection through automatic risk profile analysis of importers and goods and revising the current selectivity criteria.
    
    VL  - 9
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Author Information
  • Customs Risk Management Department, Ethiopian Customs Commission, Addis Ababa, Ethiopia

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