HOW DOES DIGITALIZATION CHANGE THE ROLE OF CUSTOMS AUTHORITIES AND THE IMPLEMENTATION OF THEIR FISCAL FUNCTION

Foreign trade regulation mechanisms all around the world have not kept pace with technology and the business models it creates. Digital globalization brings the new era of global flows, an era in which data flows are becoming more important than physical trade. In this way the percentage of revenue collected by a customs administration to budget revenues in the longer term may decline. The article explores the challenges of the digital economy analysing the latest researches in the field of foreign trade and customs administrations perspectives. The special attention was paid to the term «digitalisation» and the fiscal function of customs administrations. There the descriptive type of research have been used.  The research was built based on the review of the current legal provision in the field of customs valuation, e-commerce, IMF, WTO, WCO, OECD latest editions related the topics as digitalization, digital economy, supply chains 4.0, disruptive technologies in customs. Actual areas of work for customs were highlighted. Recommendations in the following spheres were proposed: personnel qualification, organisational integrity, technology implementation, data driven models of work.