CURRENT CHALLENGES FOR THE CUSTOMS SERVICE OF UKRAINE AND THE NEED FOR TECHNOLOGICAL AND NORMATIVE CHANGES

Abstract

This article examines customs modernization amid European integration and the necessity of ensuring Ukraine’s economic stability. It analyzes contemporary challenges driving the transition toward a «Smart Customs» model built on breakthrough technologies: artificial intelligence (AI), blockchain, the Internet of Things (IoT), and Big Data analytics. Implementing this digital customs paradigm enables intelligent data processing, real-time forecasting, automated decision-making, advanced risk management systems, and automated supply chain monitoring.
The study explores key technologies transforming customs operations. For instance, AI-based computer vision algorithms analyze scanning system imagery for non-invasive monitoring, while blockchain’s decentralized immutability prevents the falsification of customs documentation and certificates of origin. Concurrently, IoT devices–including smart electronic seals, GPS trackers, and RFID tags–provide real-time monitoring of cargo location, condition, and packaging integrity throughout transit routes.
While the convergence of AI and blockchain establishes a secure global trade infrastructure, significant challenges persist, including cyber threats, personnel shortages, and regulatory gaps. Addressing these requires a comprehensive customs reform integrating technological, regulatory, and institutional shifts. Technological initiatives focus on supply chain transparency via risk-based controls, big data analytics, and cybersecurity. Regulatory updates prioritize legislative harmonization with EU and World Customs Organization (WCO) standards, while institutional changes emphasize technical re-equipment and establishing a «Digital Customs Office».