In the process of customs clearance, speed and predictability are essential conditions for the success of any business. Modern customs authorities do not inspect all shipments equally; instead, an automated Risk Management System (RMS) is applied. This system analyzes data and determines which cargo requires strict control and which can cross the border under a simplified procedure.
The main tool of this system is the distribution of cargo into four color-coded channels.
Customs Control Color Channels
- Green Channel. The cargo passes without physical inspection and in-depth document review. This is the fastest option, saving time and resources.
- Blue Channel. Goods are released but included in a post-clearance audit program. Inspections can be carried out at the company's office or warehouse after the release of the goods.
- Yellow Channel. A thorough review of documents (invoices, certificates, documents of origin) is required. Physical inspection is usually not performed unless discrepancies are found in the data.
- Red Channel. The most complex procedure. It involves both a full documentary check and a mandatory physical inspection of the cargo (weighing, opening, and sometimes sampling).
Why Cargo Ends Up in the "Red Channel"
The system makes decisions based on clear risk factors:
- Discrepancies in Documents. If the data in the declaration, invoice, CMR, or packing list (weight, quantity, value) do not match.
- Low Customs Value. If the declared price is significantly lower than the average statistical price for that specific product in the customs database.
- Incorrect HS Code. Wrong choice of product code, which the system may interpret as an attempt to evade customs duties or bypass non-tariff restrictions.
- New Importer or Unstable History. Companies that have just started foreign economic activity or have had customs violations in the past.
How to Reduce the Likelihood of Entering the "Red Channel"
It is impossible to fully insure against random checks, but minimizing the risks is quite realistic:
- Perfect Accuracy of Documents. Before submitting a declaration, it is necessary to cross-check all data in the accompanying documents. Even minor discrepancies in weight or number of packages can trigger an alarm in the system.
- Correct Determination of the HS Code. Coding must be carried out at a professional level, taking into account the technical characteristics and composition of the product.
- Realistic and Justified Prices. The customs value must align with market logic, and in the case of a low purchase price, payment confirmations and contracts must be prepared in advance.
- Building a Compliance History. Over time, correct clearance without violations increases the company's trust rating in the system.
To ensure proper management of customs procedures and to minimize potential risks, it is highly recommended to seek professional assistance. Through the Brokers.am platform, you can find experienced customs brokers who will provide seamless and compliant clearance for your cargo.
