Technology-centric and Data-Driven Customs Risk Management for Supply Chain Security

The complexities of international trade, coupled with evolving global trade practices and illicit trade patterns, present challenges for customs administrations in balancing the requirements of high compliance rates and a high degree of trade facilitation. Technology plays a pivotal role in enabling customs administrations to achieve their goals of enhancing trade facilitation, as well as ensuring safety, security and fair revenue collection. This article advocates technology-centric and data-driven risk management. It delves into the utilisation of data analytics, artificial intelligence and machine learning approaches to mitigate diverse risks in the supply chain. It highlights initiatives by Indian Customs aimed at leveraging the capabilities of data analytics and artificial intelligence in customs risk management. This paper recommends adopting appropriate technology solutions, embracing a data culture, and fostering collaboration with academia and the private sector for research, practical studies and capacity building for effective risk management.