National Risk Management Committee (NRMC) - CBEC's Customs Manual 2023 - Customs

14. National Risk Management Committee (NRMC): 14.1 Risk Management is a dynamic process. Risk Management policies and processes need to be continually monitored and reviewed at a senior level. Board had constituted the NRMC vide Circular No.23/2007-Customs dated 28.06.2007 , with a mandate to review the functioning of, and supervise the implementation of, Risk Management System (RMS). Risk Management Division (RMD), renamed as NCTC-Cargo has been assigned the task of convening the meetings of NRMC. The NRMC was expected to meet at least once every quarter; however, at its 4th meeting held in February 2014 at Mumbai, the Committee formally decided to meet annually. 14.2 Initially, DG (Systems) was designated as the head of the NRMC, and representatives of various Directorates viz. Directorate of Revenue Intelligence, Valuation, Audit, and Trade Facilitation and Tax Research Unit, were nominated as its members. Joint Secretary (Customs) was included as a member of the Committee vide circular 39/2011-Customs dated 2-9-2011 . Consequent upon the transfer of operational control of RMD from DG Systems to DG DRI in April 2013, the NRMC was headed by DG DRI. RMCC (now NCTC) is placed under Directorate General of Analytics and Risk Management (DGARM) vide OM No. A-11013/19/2017-Ad.IV dated 11.07.17. 14.3 There shall be established a National Risk Management Committee for Customs and GST. The DGARM, Delhi will be the nodal agency responsible for convening the NRMC meeting to review the functioning of the NCTC-Cargo, NCTC(Pax) and the GST Business Analytics Wing. These wings under the DGARM will supervise the implementation and enhancement of RMS, APIS and the DGARM applications and provide feedback for improving the effectiveness of risk management and all related aspects. The NRMC will be a Standing Committee with the Member (Investigation), CBIC, as Chairman and Additional Director General, DGARM Hars, Delhi will the Member Secretary of the NRMC. 14.4 The NRMC shall be convened once every year and will have the following main (but not limited to) functions: (i) Review the effectiveness of existing Risk Parameters employed in various modules namely Import, Export, Container Scanning, Express Cargo Clearance System (ECCS), Post Clearance Audit (PCA), Protection and enforcement of Intellectual Property Rights (IPR) etc., and Risks posed by changes in Modus Operandi, new exemption notifications and new CCR s. (ii) Review existing parameters and suggest new parameters to address concerns on border and port security. (iii) Once NCTC(Pax) is operationalized, the NRMC shall look at incremental improvements to be made in the Automated Targeting System. (iv) he Business Analytics wing of GST implements various modules e.g., Risky Exporters, Risky Taxpayers, Scrutiny of Returns, Audit, Analytical reports etc. The NRMC will advise on changes, if any, to be made in the various risk criteria that define the Risk in these modules. (v) Deliberate and advise on new and emerging risks and suggest ways to address systemic risks, having cross-cutting implications. (vi) Discuss new initiatives and projects for stepping up risk management strategy and associated processes, including the development of new modules and deployment of new technologies. (vii) Be the Forum for giving feedback and suggestions on improving the efficacy of risk management. (viii) Discuss and recommend measures for timely and effective risk mitigation by field formations. (ix) Deliberate on economic trends, changes in policies, duty rates and exemptions, etc., that could be exploited by the trade to evade Duties and Prohibitions and suggest remedial action for the same. (x) Discuss the efficacy of the Examination orders that would be made available shortly through the ICETAB, obviating the need for printing in the paper. (xi) Have an oversight on the generation of the centralised examination orders based on various parameters and its rollout in phases to enhance uniformity. (xii) To discuss and advise on enhanced use of technology, data sources and analytics capabilities to discern Security related Risks. Deliberate on use of Al/ML, Image analytics, geospatial analysis etc (xiii) To address security vulnerabilities in the International Supply Chain through entity profiling of stakeholders, leveraging information in databases about movement of vessels and containers etc. (xiv) Any other matter that DGARM may consider for seeking the views of the NRMC. [Refer Instruction No. 3/2022-Customs dated 23-03-2022 ]