Customs system and using advanced technologies in customs

Abstract

In many countries, Customs authorities are one of the key state institutions. They commonly regulate foreign trade and conducts of state economy policy through tariff and nontariff methods, perform revenue collection, combat against smuggling. The other activities performed by Customs are protection health and safety of society, export control in respect of dual use items (software, commodities and technologies), protection Intellectual Property rights. They are always on frontline of border in order to perform customs control of travellers, cargo containers, means of transport. Customs acknowledges trade facilitation and simplification of processes and regulations. Today Customs change mentality and focused to be more Service Oriented. It is done in order to bring cash to state account through trade facilitation, simplification of processes and fast revenue collection from economic operators. Such mechanisms support boosting economy. Thus, developing SMART Customs Concept (or Customs 4.0) is priority. Consider key role of Customs in trade facilitation and compliance, revenue collection in this paper prime focus done on Organization of Customs through framework of World Customs Organization (WCO) and Azerbaijans Customs. From this perspective discussed key role and importance of WCO and Azerbaijan Customs, reviewed vision, mission, goals and values, structure and activities, legislation, latest achievements and solutions in Digital Customs and ways in preventing of smuggling. Another area of research was Industry 4.0, advanced technologies used by Customs and how these technologies impact on customs activities. From this perspective discussed what is Industry 4.0 and how it connected to Customs 4.0, researched and reviewed disruptive technologies that being used by Customs such as: 1) Internet of Things (IoT); 2) Blockchain; 3) Artificial Intelligence (AI); 4) Machine Learning (ML); 5) Big Data and Analytics; 6) Virtual, Augmented and Mixed Reality; 7) Biometrics (Facial recognition), 8) Robots (Customs Robots); 9) Drones; 10) Video surveillance technology. Also considered additional areas of application in Customs for listed above emerging technologies, latest trends in digitalisation, automation of customs processes (Electronic Data Interchange, Single Window, International Customs Transit and Guarantee System (eTIR Digital System), Automated System for Customs Data, Global Travel Assessment System, Advanced Passenger Information and Passenger Name Record. Broadly researched different types of latest Non-Intrusive Inspection (NII) and detection technologies based on X-ray Images (Computed Tomography 3D) or gamma ray, and NII related latest developments (Unified X-ray File Format) and projects (C-BORD-Effective Container Inspection at BORDer Control Points). Various subject related situational examples integrated into this paper. Author proposed seven recommendations to Customs which believes add value in prospect.