The Risk Management Research Of The Customs Supervision For Processing Trade Enterprises

The processing trade of China has made tremendous progress afterdevelopment over3decades. So far, it has possessed nearly50percentof Chinese foreign trade. The practice proves that processing trade hasplayed a very important role in expediting our open and economicdevelopment, like attracting foreign capital, technology and managementexperience, etc. The customs, acting as an administrative law enforcementdepartment, undertake double functions as Guarding Nation and ServingEconomy. Therefore, besides being effectively operative to adaptdifferent situations, the customs shall also rigorously supervise theprocessing trade enterprises. With the high-speed development ofprocessing trade, the customs are now encountering a series of problemsduring its supervision, e.g. the imbalance of increasing businessportfolio and deficient personnel, supervision resources being noteffectively integrated, lacking effective assessment mechanism onenterprises, lacking of supervision emphasis, etc. The customs have notrealized the radical change to take enterprises as supervising unit, andthe problem of lacking supervising effort still exists. The author holdsthat overall implementation of risk management during supervision ofprocessing trade is the key to solve problems the customs are faced withand to improve supervision efficiency.Based on the analysis of the main problems encountered by the Customs inthe current processing trade supervision, the article puts forward basicscheme to processing trade enterprise risk management to be implementedby the Customs. The scheme comprises3processes like risk analysis, riskassessment and risk control. In the aspect of risk analysis, itcomprehensively analyzes the principal risks which the processing tradeenterprises encounter in the supervision by the Customs. Firstly, fromthe standpoint of the supervision process by the Customs, there are twokinds of process risks as the Customs supervision risk and enterpriseinternal management risk. Then, the two kinds of risks are classified asfive risks like enterprise financial factor risk, enterprisenon-financial factor risk, import&export risk, processing trade riskand smuggle risk. In the aspect of risk assessment, it establishesprocessing trade enterprise supervision risk factor index system in5categories. Layer analysis theory is applied to processing tradeenterprise risk assessment by the Customs to reasonably determine theimportance of different risk factors. In the aspect of risk control, itputs forward4measures to processing trade enterprise by the Customs asfollows:1.To implement distinct supervision measures as per different classes according to risk assessment results,2.To establish riskmanagement system to enhance risk-aversion capability,3.To enhance taxguarantee and transfer risk effectively,4.To change supervision mode andaugment management efficiency.The adopted guiding theories of this article are risk management, modernenterprise management, organization structure, accounting andinternational trade, etc. The article fully absorbs research achievementsfrom home and abroad and adopts research theories like risk management,modern enterprise management, organization structure theory, accountingtheory and international trade, etc. It also endeavors to make theresearch be close to practice to solve problems in practice with suchresearch methods like export evaluation, layer analysis, system theory,combining the theory and practice, etc.The main content of this article is composed of6parts. Part1, tointroduce the background, significance, relevant research summary andresearch content,Part2, to state China processing trade development andthe current supervision on processing trade enterprises by the Customs,Part3, to analyze processing trade enterprise supervision risk by theCustoms, from enterprise internal management and the Customs supervisionprocesses,Part4, to establish risk assessment index system, to determinerisk index importance and implement risk assessment methods with layeranalysis theory, Part5, to state how to implement risk control measureson the basis of risk assessment by the Customs,Part6, to summarize anddeepen the major research viewpoints held by this article.