SMART CUSTOMS CONCEPT: INTEGRATION OF HS SYSTEMS INTO A SINGLE DIGITAL ECOSYSTEM

The concept of "Smart Customs" proposed by the World Customs Organization (WCO) is analyzed, with an emphasis on the integration of the Harmonized Commodity Description and Coding System (HS) into a single digital ecosystem.Particular attention is paid to key implementation challenges, including data complexity and inaccuracy (variability of product descriptions, issues with new technological products), incompatibility of legacy systems, high financial costs for infrastructure, cyber threats and regulatory barriers (including GDPR compliance in the EU), as well as the wide possibilities of using modern IT technologies, artificial intelligence (AI), machine learning (in particular SVM, NLP and large language model-based algorithms), blockchain for transparency and IoT for real-time monitoring to automate HS code classification, increase accuracy to 95%, speed up data processing by 40-50%, reduce errors by 20-30% and ensure full traceability of supply chains.Practical examples of successful implementation in China (automated services and GACC risk management for processing millions of cargoes daily) and in the EU (data harmonization through the Single Window and integration between 27 countries), prospects for further digital transformation of customs authorities in the context of growing global trade and HS updates, as well as detailed recommendations on investments in training and retraining of personnel, data standardization in accordance with the WCO SAFE Framework Standards, implementation of hybrid AI models with human control, development of pilot projects, public-private partnerships and cross-border cooperation to effectively optimize the integration of HS codes into global trade chains and ensure the sustainable development of international trade in the digital age are explored.