Why do cargoes end up in the red corridor?
TOP 5 Reasons for Being Directed to the "Red Corridor"
- High risk of undervaluation (common in the case of Chinese goods)
- Elevated risk profile of your company
- Import of strategically important goods
- Errors and inconsistencies in shipping documents
- Random selection (in our estimation, about 10% of all shipments)
Risk of Undervaluation
The Customs Risk Management System (RMS) has statistical data on all goods imported into the Republic of Kazakhstan. For each product category, price indices have already been established, reflecting the ratio of value to weight by country of origin.
If the declared customs value of imported goods is lower than the established index, the system automatically directs the shipment to the red corridor. The process usually begins with a weight inspection and may result in the application of the average price index, leading to a customs value adjustment.
Elevated Importer Risk Profile
Kazakhstani customs has long used a system of categorization of foreign trade participants. Using information from multiple state bodies (tax authorities, the prosecutor’s office, the statistics committee, etc.), companies are classified into three groups: low, medium, and high risk.
If your company has tax arrears or if its director has legal issues, the likelihood of being placed in the high-risk group — and consequently being routed to the red corridor — increases significantly. In short: the “cleaner” your company’s reputation, the lower the chance of additional checks.
Import of Strategically Important Goods
If you are importing goods that the state considers vital for control at a particular time, you will almost certainly be inspected “just in case.”
Depending on the economic and political situation, strategically significant goods may include consumer products, petroleum products, foodstuffs, precious metals, and more.
Errors and Inconsistencies in Shipping Documents
The RMS compares customs declarations against existing databases and information shared through international data exchange (e.g., with China and other partner countries). If your declaration contains clear discrepancies with the system’s records, the shipment will automatically be routed to the red corridor, with specific instructions on which goods require inspection.
Random Selection
In practice, we sometimes see long-standing “clean” companies, with no risk factors, also being routed to the red corridor. This is explained by the system’s algorithmic setup — for instance, every 20th or 100th importer may be automatically selected for verification, regardless of their history.
The red corridor is not the end of the world — if your transaction is legitimate and you are not attempting to evade regulations, the issue can usually be resolved. In some cases, administrative fines and additional tax payments may apply.
To minimize risks of being routed to the red corridor, it is strongly recommended to consult a licensed customs broker in advance. They can help ensure correct documentation and advise on potential risk factors.
