A NEW PARADIGM IN CUSTOMS IN A DIGITALIZED WORLD…

Rıza Mehmet KORKMAZ
UGM GENERAL MANAGER

With rapid technological developments, the time interval between industrial revolutions has become increasingly shorter. Now, smart devices and artificial intelligence are being developed by designing new-generation production lines. We are on the verge of the 5th Industrial Revolution, where new business models are introduced, and technology affects every field with the growth of big data analysis and information storage data. Humanoid artificial intelligence, blockchain, digital reality, robots, 5G and even 6G, autonomous vehicles, drones, smart homes, and cities come to the fore in this new era as a part of the latest technological transformation and transform international trade more intensively into e-commerce.

Digitalization is also changing the way we trade goods. Rapid technological developments affect trade in goods and facilitate the growth of the service sector in international cross-border trade. In the coming period, smart containers will be one of the priority areas where IoT will be used. In the future, it is theoretically possible to "transition to a system that can declare itself for some goods," which will radically change the paradigm in all customs clearance.

Developments in science and technology have shaped human history. In the process of human beings learning and reflecting on what they have learned about life before known history, the discovery of fire, use of clothing, invention of the sewing needle (50,000 years ago), use of sea vessels (42,000 years ago), invention of rope (28,000 years ago), use of pottery (28,000 years ago), invention of the saw (25,000 years ago), There are essential turning points such as the beginning of mass settlement (25,000 years ago) and the domestication of animals (15,000 years ago).

Then, with the cultivation of the soil and the beginning of agriculture (10,000 years ago), the first urban settlements were born (9,500 years ago). Transportation and communication also accelerated with the discovery of proto-writing (8,000 years ago), the domestication of the horse (6,000 years ago), the construction of the first roads (5,800 years ago), and the invention of the wheel (5,500 years ago). However, the transfer and dissemination of knowledge to other generations began in B.C. It became possible with the invention of systematic writing by the Sumerians and then the Egyptians around 3,200 BC, and subsequently, knowledge grew exponentially.

Known history, which began with the discovery of writing, progressed very slowly until the Industrial Revolution. Discoveries and rapid developments in science and technology with the Industrial Revolution made transportation and communication more accessible, faster, and cheaper. The world economy and trade have grown at a dizzying pace. The imperial powers' need for raw materials and cheap labor for industrial use that emerged in the new order fueled colonialism and accelerated foreign trade.

The First Industrial Revolution lasted until the first half of the 19th century, when the steel and textile industries made great strides, led by coal-fired steam engines, and urbanization accelerated.

II. In the 19th century, when the Industrial Revolution took place, new energy sources were discovered; steam engines were replaced by machines powered by electricity, oil, and natural gas. With the invention of vehicles such as automobiles and airplanes, the world began to be described as a "global village."

III. The Industrial Revolution took place in the early 1960s. With the use of electricity in mass production, the development of the production line, and the introduction of electronics and information technologies, a "digital technology" era began.

Today, IV. The period described as the Industrial Revolution (Industry 4.0) is experienced. It ultimately defines the structure of the first three industrial revolutions, such as artificial intelligence (AI), three-dimensional printers, cyber-physical systems (CPS), robotic technologies, the internet, virtual reality, the industrial Internet of Things (IIoT), iCloud, driverless cars, drones, and intelligent factories/warehouses. New, changing inventions left their mark on this period.

With rapid technological developments, the time interval between industrial revolutions has become increasingly shorter. Now, smart devices and artificial intelligence are developed by designing new-generation production lines. We are on the verge of the fifth Industrial Revolution, where new business models are introduced, and technology affects every field with the growth of big data analytics and information storage data.

Humanoid artificial intelligence, blockchain, digital reality, robots, 5G and even 6G, autonomous vehicles, drones, smart homes, and cities will come to the fore in this new era as part of the new technological transformation and transform international trade more intensively into e-commerce.

HOW IS DIGITALIZATION CHANGING TRADE?

Digitalization "increases the scale, scope, speed, and accessibility of commerce," allowing companies to offer new products and services to more digitally connected customers worldwide. It also allows companies, even tiny ones, to use new and innovative digital tools to overcome obstacles to their growth, streamline their payments, make collaboration more possible and accessible, avoid investing in fixed assets through the use of cloud-based services, and use alternative financing mechanisms such as crowdfunding. It provides opportunities.

Digitalization is also changing the way we trade goods. Urbanization reached 56 percent worldwide[1], widespread use of the internet (67.9 percent of the world's population)[2], increased electronic shopping habits, especially during the pandemic period, and the growth of online platforms, small packages sold across international borders to increase in number; It has caused the share of e-commerce transactions in retail trade to grow (approximately 21.5 percent). This situation raises several questions for policymakers, ranging from the physical management of e-commerce, including express cargo transactions, to risk management (related to counterfeit goods or biosecurity standards) and revenue consequences associated with collecting taxes.

New technologies and business models are also changing how services are produced and supplied, further blurring the already gray distinctions between goods and services and modes of delivery and introducing new combinations of goods and services. For example, a product produced with 3D printing can pass through customs as a design service, but it can also become a product as soon as it is consumed. When these issues come together, new challenges arise for how international trade and investment policy is made.

Rapid technological developments affect trade in goods and facilitate the growth of the service sector in international cross-border trade.

In the digital world, old trade problems can have new consequences. For example, the effects of cumbersome border procedures on express cargo/e-commerce transactions or restrictions on new tradable services are on the agenda. Trade policy problems may also arise due to different international relations regulations. A better understanding of these changes' nature and scope is needed so policymakers can create an environment that encourages innovation and supports digital trade in goods and services[3]. International organizations also exert intense effort to develop global standard practices in this context.

DIGITALIZATION IN CUSTOMS AND FOREIGN TRADE PROCEDURES

All these technological developments lead to a digital transformation in customs and foreign trade transactions. In this context, it would be correct to discuss the issue in two basic frameworks: the studies carried out by public authorities in this field and the digitalization efforts carried out in the sector. The three main customs and foreign trade transaction actors are customs administrations, customs consultants, and foreign trade companies. Therefore, it would be appropriate to focus on how the structure between these three actors has evolved with digitalization.

Efforts towards digitalization by public authorities exercising authority in foreign trade transactions, especially customs administrations, are not new. Customs administrations have always been at the forefront of where technology finds the easiest and fastest application area. In the context of customs practices, technology has two main areas of use: information and communication technologies (ICT) and technologies for controls[4]. Customs authorities receive, examine, verify, and approve customs documents submitted by companies or customs consultants acting on their behalf. It performs physical checks of the goods based on the declarations and data in the customs declaration if necessary. Requests additional information and documents and calculates and collects taxes corresponding to goods. After the transactions of the goods are completed, the goods are delivered to the owner or the customs consultant acting on his behalf. To follow these briefly explained processes, customs administrations in developed countries have started to automate by establishing their own customs computer systems for operational efficiency since the 1970s, when computers and the internet began to be widely used. The digitalization process, which started with writing customs declarations on computers in developed countries, has resulted in electronic declaration (e-declaration).

In addition, with the work pioneered by the World Customs Organization (WCO) for the security of the international supply chain and facilitation of trade, the WCO SAFE Standards Framework, WCO data model, single window system, one-stop processing, data banks, authorized operator (AEO), facilitation including post-check applications; While facilitating legal trade with container security practices, the use of modern screening systems and nuclear material detectors at customs gates, and risk analysis-based controls with data processing, efforts have also been made to benefit from technology at the highest level to combat illegal trade effectively.

Customs consultants performing duties in processes related to customs transactions examine the information obtained from the customer on whose behalf they act, receive the necessary permits from competent authorities, create the customs declaration, and submit it to the customs administration By making the necessary contacts with the customs authorities, it responds to their questions and requests, if any, on behalf of the customer it represents; accompanies physical control; completes all processes on behalf of its customer; in many cases pays taxes and incurred expenses on behalf of its client; ensures the clearance of goods from customs; transmits process-related reporting to the customer; It also manages the process of providing and archiving documents according to the customer's request. The digitalization efforts of customs consultants in these business processes roughly explained, aim to improve the end-to-end management of customs declaration processes by focusing on transactions such as risk management, data integration, verification of data, especially value/tariff/origin/regime, filling out declarations, payment services and e-archive. In addition, the use of artificial intelligence and robots, especially in repetitive processes, is also increasing to reduce efficiency, accuracy, speed, paperwork, and costs in customs and foreign trade processes.

How technological developments will affect customs and foreign trade processes in the coming period also inspires the work of international organizations, especially the World Customs Organization (WCO-WCO) and the World Trade Organization (WTO-WTO).

STUDIES OF WTO AND WCO ON THE USE OF TECHNOLOGY

The World Trade Organization (WTO-WTO), which is one of the leading organizations that direct world trade with its 164 members, and the World Customs Organization (WCO-WCO), which was established in 1952 to develop and standardize customs practices in the world; strives to determine standard norms around the world to facilitate legal trade, make it faster and safer; They aim to improve the existing capacity and create international norms, documents and agreements in this direction. In this context, international organizations have held many meetings, conferences, forums, and webinars in the past years and created international contracts, policy documents, reports, and recommendations. He has spearheaded numerous initiatives, including capacity-building, training programs, and collaboration projects. Two concrete documents emerged from these efforts: The WTO Revised Kyoto Convention (International Convention on Harmonization and Simplification of Customs Procedures), which came into force in 2006 and was accepted by 128 member countries, and the WTO Trade Facilitation Agreement, which came into force in 2017 and is currently approved by 156 member countries. With the revised Kyoto Convention, Basic principles and standards on issues such as modernization of customs procedures, electronicization of customs declarations and documents, transparency in transactions, use of information technologies in risk management, cooperation and information exchange of the customs administration with other institutions and the business world, and subsequent control are regulated. The WCO SAFE Standards Framework, prepared in 2005 and last updated in 2021, also includes the harmonization of the provision of electronic information in advance regarding entry/exit/transit shipments, the adoption of a risk management approach for the security of the international supply chain, the customs administration's control of goods such as x-ray devices and radiation detectors. It includes essential standards in terms of digitalization, such as inspecting high-risk containers using external inspection equipment. [5]WTO Trade Facilitation Agreement also requires member countries to publish all their procedures and regulations on the Internet, to publish new or amended trade-related legislation within a certain period and to obtain the opinions of relevant parties, to establish a binding preliminary decision mechanism on tariffs and origin, pre-arrival notification, electronic payment for taxes, customs clearance. Risk management in controls, post-control, measurement and publication of average delivery times, authorized economic operator (AEO), expedited shipment of cargo, cooperation between border authorities, reduction of import, export, and transit-related formalities, single window, uniform formality and documentation at all customs gates of the members. It has set forth fundamental principles in many areas, such as obligations. [6]

DIGITAL CUSTOMS

The World Customs Organization, which focuses on this issue in its work during that year with the central theme it determines every year, has chosen 2017 as "Digital Customs" and the central theme 2022 as "Scaling up Customs Digital Transformation." He emphasized the importance of digitalization.

WCO Secretary-General Kunio Mikuriya defines digital customs as "using digital systems to collect and maintain customs duties, control the flow of goods/people/vehicles and money, and secure cross-border trade against crime, including international terrorism." He defined it with the expression: The "Digital Customs Initiative," launched in this context, aims to replace paper-based customs procedures with electronic transactions, thus creating a more efficient and modern customs environment in line with global developments[7].

WCO has currently grouped the existing tools, documents, and practices related to information technologies into main themes as follows.

• Leadership-Information Technologies Guide for Managers, Single Window Collection Volume 1;
• Legal basis – Revised Kyoto Convention; Model Bilateral Agreement on Mutual Administrative Assistance in Customs Matters; Guidelines for the Development of Mutual Recognition Arrangements/Agreements,
• Modernization and reform – Revised Kyoto Convention Guidelines on the Application of Information and Communications Technology; Single Window Corpus Volume 2, Recommendation on Dematerialization of Supporting Documents; Recommendation on Electronic Transmission and Verification of Customs and Other Related Regulatory Information; etc.;
• Protection of society – Risk Management Corpus; WCO Cargo Targeting System; Customs Enforcement Network (CEN) suite; IRIS; IPM;
• Contact – Recommendation on the Use of WWW Sites by Customs Authorities; Use of Social Networking Sites by Customs;
• Interoperability and exchange/regional integration—Recommendation on Use of Unique Shipment Reference; WCO Data Model and Recommendation on its Use; API PNR Guidelines and Advice on Their Use; Integrated Supply Chain Management Guidelines, etc.
• Information Technology Guide Handbook for Managers

DISRUPTIVE TECHNOLOGIES

Latest technological developments have come to determine who trades which products and how. While the IT sector's power, capacity, speed, and efficiency have increased tremendously in the past 50 years, costs have also decreased significantly, and the use of personal computers and mobile devices has become widespread. Increased internet connections and bandwidth have played a catalytic role in accelerating these technological developments. The digital transformation, collection, storage, and use of information that once existed only in analog form has also created groundbreaking effects.

Disruptive technologies are new technologies that completely change how things are done. Although it is difficult to say which technologies will fully achieve this in the future, according to the generally accepted understanding of the public in the past years, disruptive technologies include blockchain, artificial intelligence, the Internet of Things, robotic technologies and automation, virtual reality, 3D printing, and other highly advanced technologies.

When we use disruptive technology and inventions, we are not talking about a negative situation or reaction in a particular market; we are emphasizing the natural development of technology. Disruptive technologies have enriched our lives in many ways. Human history is full of stories of technological developments that transformed us, how we do business, and how we live. Now, let's take a closer look at the impact of these disruptive technologies on customs and foreign trade transactions.

WCO/WTO DISRUPTIVE TECHNOLOGIES REPORT

The "Disruptive Technologies Study Report" [8] was prepared by the WCO and WTO, which represents approximately 98 percent of world trade, by conducting a joint study revealing how digitalization affects world trade in their efforts to support international trade and economies more broadly. It was published in 2019 and revised in 2021.

The study underlined the critical role of customs in ensuring global trade. To make the global supply chains of the future more efficient, "Smart Customs" should minimize customs clearance time and costs and intelligently manage incoming and outgoing goods and vehicles. In this regard, it was emphasized that game-changing/disruptive technologies should be used together. Additionally, numerous elements such as cybersecurity, big data, data exchange, identifiers, and others must be considered when implementing innovative solutions.

Based on these findings, in the study carried out by WCO and WTO, the fundamental technological developments that transform and profoundly affect customs and foreign trade transactions are grouped into seven main categories:

1. Blockchain: Blockchain technology, also called distributed wallet technology or DLT, will provide two key benefits from an international trade perspective. It will strengthen transparency by increasing monitoring capacity and capability. It will enhance the trust of the parties in foreign trade by ensuring the reliability and authenticity of the documents related to the products. Another benefit is the digitalization of trade; It facilitates the secure exchange and monitoring (traceability) of business documentation, processes, and data.

Here, the report identifies what it believes is the "weakest link" in the chain: "Any digital process must be at least as strong as its digitized link. For many international trading systems, this means integrating customs. Many governments use DLT for customs operations and single windows." While most projects are testing or considering using, most projects remain in the conceptual or pilot stage." [9] Currently, scalability remains limited, existing blockchain networks and platforms do not "talk" to each other, and issues ranging from the legal status of blockchain transactions to the issue of liability remain. A series of unresolved legal issues remain. Another question is whether blockchains are truly impenetrable to cybersecurity problems. Finally, another challenge is that blockchain systems can be relatively costly to implement. However, the blockchain is slowly starting to be planned to find application in some customs administrations.

1. Internet of Things (IoT): The Internet of Things, or IoT, is the operation of physical devices (also called "connected devices" and "smart devices"), vehicles, buildings, and electronic devices, including software, sensors, actuators, and other items embedded with network connectivity, over the internet. IoT enables objects to collect and exchange data. Simply put, IoT turns physical objects into smart devices to communicate and interpret information from their environment. It is used to make our lives more comfortable and work more efficient and less costly. Although it has not yet gained mainstream acceptance, IoT has started to gain more attention in recent years. Connected machines such as ATMs and airline check-in machines have existed for many years. However, new and novel devices and many ordinary objects are now reinvented with digital sensing, computing, and communication capabilities. The Internet of Things has incorporated many physical products (e.g., home appliances, security cameras, and garbage containers) into big data applications—practical examples of IoT applications range from smart fitness wristbands to driverless vehicles. The Internet of Things has become a significant force for business transformation. Its devastating impact is already being felt across all sectors and every aspect of society. This sudden expansion is also increasing the economic impact of IoT as consumers, businesses, city authorities, hospitals, and many other organizations find new ways to leverage the technology. Statista14 predicts that by 2025, IoT will consist of more than 30 billion devices worldwide (more than four devices per person).

According to the WCO's 2021 Annual Consolidated Survey and the WCO-WTO report titled "The Role of Advanced Technologies in Cross-Border Trade: A Customs Perspective," half of the participants stated that they use IoT in customs business processes, and 9 percent said they plan to use it. However, up to 40 percent have yet to make plans to use this technology. Of the 72 respondents using IoT, the majority stated that it was related to X-ray or computed tomography (CT) scanning, and a significant number used QR code and barcode readers, automatic license plate readers and cameras, and electronic seals (e-seals). There were 108 responses from 78 members regarding sharing information collected through IoT devices. This means that some customs authorities use more than one channel. Most of those who share information only share with other government institutions and customs authorities. Many participants (31) need to share information with all stakeholders.

In the coming period, smart containers will be one of the priority areas where IoT will be used. In the future, it is theoretically possible to "transition to a system that can declare itself for some goods," which will radically change the paradigm in all customs clearance.

1. Artificial Intelligence (AI), Machine Learning, Big Data, Data Analysis: According to the results of the WCO Annual Consolidated Survey 2021 and the WCO-WTO report titled "The Role of Advanced Technologies in Cross-Border Trade: Customs Perspective," almost 45 percent of customs officials use data It uses analytics or artificial intelligence/ML (Machine Learning) or both. Eighteen percent of responding members currently use big data analytics, while 10 percent plan to implement it. Another 10 percent use AI/ML, while 12 percent plan to implement it. Additionally, 16 percent use data analytics and AI/ML, and 11 percent plan to use both. This means that 44 percent of customs authorities currently use data analytics, AI/ML, or both, while 33 percent plan to do so. Twenty-three percent of the participants need to have no plans to implement these technologies.

Most customs authorities see clear benefits from this suite of technologies, with risk management and profiling, fraud detection, and greater compliance being the most common. Some members also emphasized facilitating customs inspections, detecting anomalies, and improving revenue collection. Predicting future trends, promoting commerce, and enhancing display and visual search technology are benefits. However, customs authorities' most significant challenge in implementing big data analytics and AI/ML technology is the need for more expertise on the subject. Other challenges include:

• Costs.
• Lack of good practice.
• Existing legacy systems.
• Lack of use of technology by other stakeholders.
• Lack of a government strategy and legal issues.

Members also highlight other challenges, such as data governance issues, data quality, information organization, roles and functions, existing tool issues, etc. Data analytics and AI/ML will potentially have the most significant impact on customs operations in the future. Survey results show that members have a high level of confidence in a technology that has been used for some time and is increasingly being used to improve customs' risk management capabilities.

The potential application areas of artificial intelligence can be summarized as follows:

a. Risk management: Data mining and risk management for intelligence purposes, AI/ML for advanced risk management processes (audit results feedback loop, customer segmentation, automated assessment), raising the risk profile, compliance risk scoring in commercial and non-commercial sectors, to improve risk assessment identification of low-value courier and postal items, detection of low-risk individuals at borders, automatic targeting system.

b. Tariff classification: GTIP classification using artificial intelligence, Preventing GTIP misclassification and non-compliance with tariff recommendations.

c. Scanning: Developing AI-based models to interpret X-ray images and AI ICT scanners to improve application capabilities and customs clearance efficiency.

d. Income: Detection of potential anomalies in high-income areas, including excise equivalent goods (alcohol, tobacco, and oil); automating repetitive manual procedures related to income protection (one of the procedures involves online research of market prices and using artificial intelligence to help intelligently filter the research results), price recommendation data analytics, anomaly detection in undervaluation and overvaluation; Increasing effectiveness in using fiscal and tax data more widely and strategically to improve compliance and performance in terms of collecting public revenues and combating fraud.

e. Other:

- Post-approval inspections and controls.

- Chatbot to answer public questions online.

- Chatbot for a physical robot to answer passengers' questions at checkpoints.

- Preventing abuse of privileges, including tariff concession decisions, regulations, free trade agreements, and origin masking.

- Dumping and compensatory abnormal activities.

- Refund/return mismatch.

- Import of prohibited goods.

- Cross-platform cyber patrol,

- Analyzing large volumes of internet information to identify intellectual property rights crime trends,

- Application of data mining in imports,

- Trade bypass chart analytics,

- Export/import data analytics,

- A data lake was developed for the consolidation and single source of truth of all customs data. It provides historical insights into customs statistical information for future planning, forecasting, and monitoring service delivery performance in real-time.

- Developing advanced analytics for AEOs.

Biometrics: Governments and organizations worldwide use biometric technology to combat identity fraud and security breaches, secure confidential data, improve user experiences, and reduce costs. Biometrics is a rapidly growing field in the information technology industry.

Customs administrations have a unique position and function for practical inter-institutional cooperation and coordination in border crossings that require biometrics technology. Customs units, other public institutions, private institutions, and organizations verify identities; Control the entry and access of customs operators to customs areas; should closely monitor this area to identify potential additional uses, such as identifying different actors in the supply chain (customs brokers, forwarders, forwarders, logistics operators, etc.).

Flying Eye (Drone): Drones have already become integral to the international commercial supply chain. Studies show that integrating drones into commerce can support economic growth. However, for successful and safe integration, all market players must be prepared. The benefits of using drones in the supply chain are fully realizable. In the trading ecosystem, physical delivery models of products are constantly being redefined, and drones are being used.

Some customs administrations currently use drones for surveillance and monitoring of customs areas, ports, and border areas and operational tracking of drug and commercial goods smuggling. A remote-controlled drone with a high-resolution camera has been used for detailed boat scanning by going underwater up to 50 meters for underwater surveillance. Customs administrations should also create a legal framework regarding where and how they can use drones. Drones can also be used in customs consultancy and logistics services for courier deliveries (documents, samples, etc.).

Virtual, Augmented, and Mixed Reality: Augmented and mixed reality can be used to provide visual aids in physical controls in customs procedures. Another potential use is visualizing large data sets. When using mixed reality, data is projected into the physical world as digital artifacts and can be manipulated like real objects.

WCO and customs administrations effectively use virtual reality solutions in training to increase the effectiveness and skills of inspectors in determining prohibited substances at customs. Other customs and foreign trade actors will also benefit from this technology in training. There is also potential in this area for use in digital marketing.

Three-Dimensional Printer: According to some reports, 1.4 million three-dimensional printers were subject to international trade worldwide in 2018. This number is estimated to exceed 8 million in 2027. 3D printers are anticipated to potentially significantly impact customs procedures in the future.

Products obtained with three-dimensional printers cause WCO to define new "goods" shortly regarding the value, origin, tax, IPR, and security. A new Tariff Position No. 84.85 was opened in the WCO's 2022 HS Code system for products obtained with three-dimensional printers and entered into force as of January 1, 2022.

DIGITALIZATION FOR THE CUSTOMS CONSULTANCY SECTOR

Digitalization is especially important for customs administrations and the customs and logistics sector. To take a leading position in the sector and minimize the destructive power of sustainability and technology, it is important to follow technological developments very well, perceive the difficulties and opportunities that these may bring to customs and border management, and take a position accordingly.

Customs consultancy companies need digital transformation to complete the customs and foreign trade transactions of the companies they serve at the least cost, in the most rapid and error-free manner, and with the least risk. IT applications play an essential role in the entire process and archiving, from meeting the requirements in the context of technical regulations in the permit processes before the goods arrive in the country to post-control procedures after the goods are completed and delivered.

IT technologies are used in submitting the summary declaration, obtaining permit documents, determining the GTIP, filling out the declaration, and tracking incentive certificates and DİIB/DIIs.

Today, as in UGM, "GTİP detection with artificial intelligence in some products, written/voice information and guidance with a chatbot, automatic filling of customs declarations with data integration, measurement and tracking of all customs clearance processes with KPIs, customer service portals and mobile applications" reporting all data with customer-specific solutions, using robotic applications to enter single window systems, monitoring trucks, containers and warehouses with vehicle tracking systems and sensors, storing millions of documents quickly and systematically with digital archives, performing risk analyzes with artificial intelligence applications, using artificial intelligence in audits. "Accelerating processes and easily detecting errors with smart applications, performing declaration and document checks with the best performance with smart applications, processing data and preventing repetitions with the correct use of Big Data, disseminating information, detecting and improving employee productivity with artificial intelligence," which digitalization offers to customs consultancy companies. Some opportunities.

The next step will be containers and some items that declare themselves with new applications in the context of the Internet of Things. This process also has the potential to transform customs consultancy in the future. This imminent and actual situation cannot be ignored by staying away from developments. In this case, those most prepared for the process will continue to grow and have a say globally.

GENERAL INFERENCES

Adopting technology has tangible benefits. However, it is also necessary to measure and evaluate these technologies, determine whether they are fully developed, and test their functionality before investing large amounts of energy, time, and public resources.

It is not a matter of choice for Customs whether to embrace the potential of disruptive technologies and take full advantage of them and whether to follow their daily progress and developments. By failing to do so, customs authorities risk "losing the war" against fraud and criminal activity.

There is a need to establish a common understanding of the scope of disruptive technologies in the context of customs administrations. For example, not all aspects of robotic technologies may be applicable in the customs environment. Additionally, some technologies, such as 3D printing, may impact customs and their work but will not provide benefits for better functioning; Customs will probably not find a unique opportunity to use 3D printing in their work.

Technology can help customs complete their work more efficiently and manage trade flows and controls. However, it should maintain the human element required to ensure progressive interaction between trade and customs. Disruptive technologies need to be used and activated most appropriately. These technologies can create "smart customs" and "virtual borders" and increase connections with commercial operators. These technologies should focus on improving efficiency, facilitating trade, optimizing the use and distribution of resources, and ensuring a secure supply chain. There is a need to move away from transaction-oriented processes and focus on data usability.

One of the most significant benefits of technology is that it creates a pool of data (big data) that can be used to make better decisions. With the appropriate use of artificial intelligence and data mining, the efficiency of data availability can be brought to a higher level.

The use of technology in customs should be need-oriented rather than the availability of technology. Technology can help modernize customs procedures and processes.

Systems developed today must be flexible and future-proof. Customs need to build a strategy to keep up with the pace of development of information technologies.

Digital identity issues are also crucial for international trade.

Pilot applications should be carried out in addition to individual country evaluations and cost/benefit analyses, and the results should be shared.

To ensure maximum efficiency and cooperation at borders, other border institutions must be supported to 'catch up' in the digital transformation. There is a need to provide a holistic approach that will examine the issues in a cross-cutting manner.

Customs and the private sector need to cooperate and interact regularly on new trends or technologies and their impact on the customs environment. Customs should strengthen collaboration with the business sector through on-the-job training of dedicated customs experts in disruptive technologies.

There is a need for greater private sector participation in the digitalization process. There is a need for close interaction between stakeholders involved in international trade, both public and private. Private sector solution providers may be invited to share their findings at the WCO and WTO, and the WCO and WTO may reach out to the private sector to see how things are doing on the ground. Information sharing between customs and the private sector should be increased, and more interaction should be established with startup companies. Active cooperation with universities and greater participation will also be beneficial.

Digitalization offers opportunities and threats in foreign trade. At this point, the important thing is to manage this process well and be ready for the future.