Agreement-Coprisao-43-2019

OBJECTIVE. The Customs Risk Committee is created, which shall be functionally dependent on the Deputy Director of Customs Revenue or the highest authority of the new Customs Administration, coordinated by the Unit responsible for Risk Management and has the following objectives: 2.1 The Risk Committee shall have the purpose of designing and evaluating policies, systems, methodologies, models, mechanisms and procedures for risk management for efficient comprehensive business management, as well as recommending measures or adjustments as appropriate, in order to maintain balance between facilitation and control in the clearance of merchandise, in application of best practices in international trade. 2.2 To ensure that the realization and operations of customs are adjusted to the objectives, guidelines, policies, processes and procedures established for comprehensive risk management, as well as to ensure compliance with the risk tolerance levels and exposure limits that have been approved by the Committee. 2.3 To ensure compliance with the current legal framework, regulations, manuals and internal policies in customs matters.

DEFINITIONS. For the purposes of this regulation, the following definitions shall be adopted: - Risk Analysis: Systematic decision-making process based on the collection and structured analysis of information, in order to estimate the probability that risks will occur and their level of impact on the Customs Service. - Risk Appetite: The point of risk tolerance, in relation to the minimum criteria defined by the Committee for foreign trade operations. - Risk Criteria: Risk criteria established by the Risk Management Unit to compare the level of risk detected during the analysis process of taxpayers in order to determine their control level. - Risk Management: The systematic application of management practices and procedures that provides the Customs Authority with the information necessary to handle movements and/or shipments that present a risk. - Risk Indicators: Specific criteria that, together, are used as a practical tool to select and detect movements that would probably not comply with customs legislation. - Control Measure: The manner in which a risk profile is recorded in the risk system. - Risk Profile: A predetermined combination of risk indicators, based on information that has been collected, analyzed and categorized. - Risk: Probability that an event will occur that compromises the application of regional or national legislation relating to the customs treatment of merchandise. - Risk Sector: Regimes, customs procedures, regulatory areas and other areas in which customs authorities exercise their competence. - Risk System: Computer system for the management of customs risk. - Risk Management Unit: Entity responsible for establishing the work methodology to execute Risk Management in the customs service at the national level. - Risk Assessment: Estimated degree of risk inherent to any customs activity, intended to allow priorities to be defined in the controls that should be implemented. CHAPTER II OF THE COMMITTEE

MEMBERS. The Risk Committee shall be composed of the following officials: 1. Director or Deputy Director, who shall exercise the Presidency in the Committee Meeting. 2. Chief of the Customs Risk Department, who shall serve as Technical Secretary. 3. Chiefs of technical Departments of the Customs Administration. 4. Occasional Invitees, Chiefs of Section, representatives of Institutions and public bodies that directly or indirectly intervene in the customs clearance process; they shall participate by express invitation of the Director or Deputy Director of the Customs Administration. They shall have the right to speak, but not to vote. When the topics to be discussed so justify, in the absence of the Chief of Section, the Chief of Department shall assume the responsibility of participation in the Committee meeting, being responsible for the criteria discussed in that matter. Members are obligated to attend each convocation, their participation being non-delegable; if due to illness or justified cause they cannot attend, they shall notify the Director or Deputy Director and shall delegate their representation to be substituted by the Chief of Section dependent on their Department. In case of non-compliance with the provisions of this article, sanctions shall be applied in accordance with the Internal Work Regulations of the Customs Administration. (Chapter on Disciplinary Measures of the Internal Work Regulations).

FUNCTIONS. The functions of the members of the Risk Committee shall be:

• a)

  Hold monthly meetings, not necessarily for approval of profiles but for monitoring of commitments and agreements.

• b)

  Review annually the methodologies, tools, policies and procedures to identify, evaluate, mitigate, monitor and communicate the different types of risk found in the institution, in customs processes.

• c)

  Formulate an annual risk management plan to be sent to the Directorate.

• d)

  Present quarterly risk management reports.

• e)

  Analyze and recommend to the Directorate, policies related to risk management, considering aspects linked to regulatory modifications, internal organizational coordination and external coordination with other organizations linked to foreign trade control in their area of competence.

• f)

  Suggest pertinent control strategies, based on risk management.

• g)

  Submit to the Customs Risk Department, proposal of topics to be discussed, one week before holding the meeting, in order to prepare the agenda to be developed.

• h)

  Each member shall be responsible for attending, in a timely manner, the agreements that result from each session.

• i)

  Discuss and, as appropriate, approve or reject the risk profile proposals, the modification of control measures proposed by the Customs Risk Department, as well as the different topics presented in each Meeting.

• j)

  Analyze and recommend to the DARA, policies related to risk management, considering aspects linked to regulatory modifications, internal organizational coordination and external coordination with other organizations linked to foreign trade control in their area of competence.

• k)

  Suggest pertinent control strategies, based on risk management.

• l)

  Submit to the Customs Risk Department, proposal of topics to be discussed, one week before holding the meeting, in order to prepare the agenda to be developed.

• m)

  Each member shall be responsible for attending, in a timely manner, the agreements that result from each session.

• n)

  Discuss and, as appropriate, approve or reject the different topics presented.

DUTIES AND OBLIGATIONS OF MEMBERS. The sessions of the Committee are private and each member of the Committee has the following obligations:

• a)

  Sign a Confidentiality Agreement regarding the information and topics discussed in the Committee.

• b)

  Approve the policies, controls, guidelines and specific procedures for comprehensive risk management.

• c)

  Keep properly informed about the current regulations governing the Customs Service in the country.

• d)

  Timely inform the Risk Unit about regulations, processes or procedures issued by Sections and Departments that involve risk management, so that pertinent controls may be carried out.

• e)

  Provide information regarding risk profiles developed, with their respective risk assessment.

• f)

  Attend punctually all Committee meetings, participate actively and enrich with their knowledge the risk profiles.

• g)

  Justify absences by means of electronic mail addressed to whoever exercises the Secretariat of the Committee.

• h)

  Propose topics to be discussed in Committee meeting.

• i)

  Propose opportunities for improvement in comprehensive risk management.

• j)

  Approve the level of risk appetite, as well as the criteria for facilitation and control of taxpayers.

• k)

  Refrain from using information known in the exercise of their functions in the Risk Committee to obtain a benefit or benefit for third parties.

• l)

  Refrain from expressing opinions on matters in which they consider there is a conflict of interest.

• m)

  Present report of Agreements, according to the area of competence.

• n)

  Follow up on actions related to risk management in matters of their competence and present a report in committee meeting. o) Sign the minutes of sessions to which they have attended.

COMMITTEE TOPICS. Based on risk appetite, risk profiles shall be presented to the Committee for approval. With Risk Appetite, the following may be generated: 1. Strategies for a priori risk assessment. 2. Management of selectivity. 3. New schemes that contribute to improving facilitation and control. 4. And others as defined by the Committee.

TECHNICAL SECRETARY OF THE COMMITTEE. The Customs Risk Department shall serve as Technical Secretary of the Committee Permanently and shall have the following functions:

• a)

  Call for a meeting with the required advance notice, indicating the topics to be discussed.

• b)

  Prepare the agenda for the meeting and submit it to Committee members.

• c)

  Ensure that the information that Committee members should know is available in the required form and timeframes.

• d)

  Verify quorum of meetings.

• e)

  Prepare the minutes for signature by Committee Members.

• f)

  Keep and properly custody the Committee's minutes book.

• g)

  Provide Committee members with the advice and necessary information, corresponding to all Risk profiles approved by the Risk Committee.

• h)

  Follow-up on agreements.

• i)

  Preparation of an annual calendar of risk committee meetings.

• j)

  Manage and safeguard documentation related to matters linked to the committee, ensuring that the physical and digital file on all and each of its activities is expedited and kept up to date.

• k)

  Prepare in the session the aide-mémoire, which shall serve as the basis for the preparation of the minutes.

• l)

  Follow up on all agreements and inform the Customs Administration.

PERIODICITY. The Committee shall hold ordinary meetings as established in Article 5, subsection a), and may hold extraordinary meetings at the express call of the Director.

NOTICE OF CONVOCATION. The Committee meeting shall be convoked by the Technical Secretary of the Committee with prior coordination with the Director. The notice of convocation shall be distributed by means of the institution's email and shall contain at least the following:

• a)

  Indication of the day, time, and place of the meeting.

• b)

  The names of the persons convoked.

• c)

  The specific topics to be addressed in the session subject to convocation.

• d)

  Designation of the persons responsible for making presentations or addressing specific topics.

QUORUM AND DECISION-MAKING. The Committee shall hold valid sessions with the attendance of a simple majority of its members. All members have the right to speak, and only the Director or Subdirector and the Department Heads have the right to vote. Risk profiles submitted for discussion shall be approved by qualified majority, with two-thirds of the votes of members with the right to vote. All votes shall be counted.

MINUTES. In fulfillment of its functions, the Secretary of the Committee shall, at the end of each session, prepare Minutes of the corresponding meeting that shall be circulated among attendees for their review. The terms of the Minutes shall be subject to final approval by each of the attendees of the session to which they refer, affixing their signature for such purpose. The Minutes shall include at least the following elements: a) Minutes number b) Date of the Session c) Name of the Members present d) Summary of the topics discussed, the deliberations, opinions expressed, the agreements and conclusions of the session, indicating the responsible party, the compliance date, and whether it should be communicated to the Director e) Approval or rejection of the risk profiles presented when applicable f) Signature of attendees.

ORDER OF THE MEETING. The meeting shall follow this order: a) Opening of the meeting b) Approval of the agenda c) Reading of the previous minutes d) Follow-up on the control of agreements, if any. e) Analysis of the topics contained in the agenda f) Approval or rejection of the topics addressed. g) Other business. h) Closing of the session. ARTICLE 13. EMERGENCY CONTROLS. When the Customs Administration, through the Management or Department to which such authority is delegated, must implement emergency controls, they shall be limited to one or several customs houses as the case may warrant and for the time required. The Risk Department shall proceed to systematize them in the risk system, prior to written instruction provided by the Management or Department to which the Customs Administration delegates such authority, and this instruction must contain at least one element of justification for the measure. The Administration is obligated to submit, within a maximum of 3 business days, the information that supports the risk profile, so that it may be presented and documented before the Risk Committee at the next meeting. If the changes or emergency measures have a considerable impact, an extraordinary meeting shall be convoked for their approval. The Risk Committee shall define the period of validity of this emergency measure.

POWERS OF THE CUSTOMS RISK DEPARTMENT. In accordance with the functions of the Customs Risk Department, when evaluating the application of risk profiles and finding non-compliance in the selectivity percentages, it may make the necessary modifications to the controls generated in the risk system to maintain the balance between facilitation and control; provided that the controls to be modified are not emergency controls, the latter may only be modified or their validity terminated by instruction of the authority that generated the control. All modifications made shall be documented in the corresponding report and shall be presented before the Risk Committee for inclusion in the session minutes.

PROHIBITIONS FOR MEMBERS OF THE RISK COMMITTEE. Members of the Risk Committee in the exercise of their functions may not:

• a)

  Reveal information that they become aware of by reason of their status as a member of the Committee, even after they cease their functions.

• b)

  Incur in conduct that may cause a conflict of interest.

• c)

  Obstruct the proper functioning of the deliberations and/or activities of the Committee.

• d)

  Absent themselves without just cause from Committee meetings.

APPROVAL AND EFFECTIVE DATE. This Regulation shall enter into effect as of the date of its approval. LET IT BE COMPLIED WITH AND COMMUNICATED. ENY YAMILETH BAUTISTA GUEVARA PRESIDENT PRESIDENTIAL COMMISSION FOR COMPREHENSIVE REFORM OF THE CUSTOMS SYSTEM AND COMMERCE OPERATORS MARCO TULIO ABADIE AGUILAR SECRETARY PRESIDENTIAL COMMISSION FOR COMPREHENSIVE REFORM OF THE CUSTOMS SYSTEM AND COMMERCE OPERATORS