Automated decision-making at Finnish Customs

Customs uses automated decision making when processing customs matters. Automated decision-making means that the decision, which ends the processing of the matter, is made through automated data processing without being checked or approved by a person. The decision-making is based on the automatic processing rules that steer the process and that are defined in advance by a person. Learning AI techniques are not used.

The use of automation to resolve customs matters is necessary because of the large number of customs declarations. In 2022, Customs issued around 3.76 million decisions. The majority of these decisions, around 3.6 million i.e. 96%, were resolved automatically. The number of decisions and the share of automated decisions among them is still growing. Automated decision-making is used in the following procedures: import, export, entry, temporary storage and transit. For example, import clearances by private individuals are generally resolved automatically. All normal customs declarations are processed automatically, unless there is a reason to select the case for processing by a person.

Automated decision-making is used for customs matters that do not require case-by-case consideration. Furthermore, it is used for matters where a person, i.e. a customs official, has assessed the factors required for case-by-case consideration and subsequently releases the matter to be resolved by automation. If the case can be resolved automatically, the customer is informed of this when they start to fill in the customs declaration. Message declarants are informed in the terms of use for message exchange, which the customer accepts when applying for message exchange customer status.

At Customs, automated decision-making is only used when the matter is resolved in accordance with the customer’s claim. If the customs declaration is not accepted, the customer is heard and the decision is issued by the customs official. An exception to this are requests for invalidation of import declarations before a customs clearance decision is issued. These can be resolved automatically by accepting or rejecting the request. Another exception are situations where the matter lapses due to the expiry of the time limit and the inactivity of the customer, and Customs issues an automated invalidation decision.
Cases suitable for automated decision-making are selected for manual processing from time to time, to ensure the quality based on certain risk criteria and random checks. Automated decision-making is not applied when it comes to sanctions against the customer.

Legislation

The new legislation regarding automated decision-making, i.e. Chapter 8 b of the Administrative Procedure Act and Chapter 6 a of the Public Information Management Act entered into force on 1 May 2023 (available in Finnish and Swedish). The new legislation provides the legal basis for automated decision-making and allows automated decision-making, despite the prohibition of automated decisions laid down in EU’s General Data Protection Regulation (GDPR). Before the entry into force of the Act, the automated decision-making used by Customs will be brought into line with the new regulation within the transition period of the Act. The transition period ends on 31 October 2024.

Customs started using automated decision-making also when processing requests for administrative review when section 88 subsections 5 and 6 of the Customs Act entered into force on 1 January 2024. In accordance with the new regulations, a request for administrative review presenting a new claim or new evidence can be resolved automatically if the customer’s claim is approved. An adverse or deviating decision on a request for administrative review is always issued by a customs official. The prerequisite for automated decision-making regarding requests for administrative review is that the general requirements for automated decision-making laid down in the Administrative Procedure Act are fulfilled. The new legislation also makes it possible to resolve a request for administrative review in accordance with the claim if, based on a risk assessment by Customs, the request is clearly justified. The decision-making must always be based on the processing rules drawn up based on applicable law and prior consideration.

Implementation decision

When automated operational processes are introduced at Customs, they are the subject of implementation decisions in accordance with the Information Management Act. Separate implementation decisions have been issued concerning import, export, entry, and temporary storage as well as transit. In addition, a separate implementation decision has been issued concerning statistical amendments and invalidations by Customs’ corrections unit. In the implementation decisions, Customs assesses whether the prerequisites for the automated decision-making procedure are fulfilled in accordance with the Administrative Procedures Act, the Information Management Act, the Customs Act and EU’s GDPR. Implementation decisions include the reasons for the implementation, the documents that are the basis for the implementation, the date of implementation, the time the decision was made, the decision-maker and the contact information, from where additional information is available on the use of the automated decision-making procedure at Customs.

The implementation decisions are published in Finnish and in Swedish on Customs’ webpage about automated decision-making. When new automated operational processes are implemented and when current processes are changed, their implementation decisions are published on the webpage before implementation. The old implementation decisions are available via Customs’ registry office on request.

Descriptions of automated decision-making by customs procedure

Import

An import declaration must be submitted for goods imported from outside customs and fiscal territory of the EU or from an area that is part of the customs territory of the EU but not of the fiscal territory of the EU. Possible customs duties, taxes and other charges will be levied on the goods based on the customs clearance. In import clearance, automated decision-making is used in the processing of import declarations. Regarding customers’ customs declarations, Customs issues release and customs clearance decisions as well as decisions on invalidation of customs declarations. Automated release decisions and customs clearance decisions are issued only if the customer’s customs declaration is accepted. Invalidation requests can be resolved automatically by accepting or rejecting the request.

Export

Under the export customs procedure, goods are exported outside the customs or fiscal territory of the EU or from the Åland Islands to an area in the fiscal territory of the EU other than mainland Finland. No taxes or customs duties are paid based on export. In export clearance, automated decision-making is used in the processing of export declarations. Regarding export declarations, export release decisions, decisions on invalidation and amendment of declarations as well as confirmations of exit are issued. In export, only matters where the customer’s claims are approved are resolved automatically.

Entry and temporary storage

An entry summary declaration must be submitted for goods brought into the customs territory of the EU by air or sea directly from non-Union countries. When undeclared goods arrive by sea or air from another Member State or from Switzerland, Norway or Liechtenstein, a temporary storage declaration must be submitted for the goods. If Union goods are transported between two EU countries via a non-EU country or territory, the Union status of the goods must be proved. A presentation notification is submitted for goods unloaded from a means of transport, after which undeclared goods can be declared. When the presentation notification has been submitted, the arriving Union goods are in free circulation. When the goods are presented, Customs will notify whether the import of the goods to the territory of the EU is allowed or prohibited.

Automated decision-making is used in the processing of entry and temporary storage declarations. Customs responds to and invalidates declarations. Regarding entry and temporary storage, only matters where the customer’s claim is approved are resolved automatically.

Transit

Under the transit procedure, goods can be transported under customs supervision across borders and through territories without having to pay customs duties and other charges for them. Automated decision-making is used when issuing release and unloading permission decisions for transit regarding customs declarations by authorised operators. In transit, only matters where the customer’s claims are approved are resolved automatically.

Revision of the clearance transaction

Customs Corrections  uses the automated decision-making procedure for certain statistical amendments in predefined situations, and for invalidation of customs declarations related to import clearance, after the customs clearance decision has been generated. 

Automatically resolved statistical amendments are amendments that do not affect the taxable value or the taxation, and for which the applicant has not requested an amendment of the country of origin or the commodity code. Invalidations of customs declarations are part of the new automated decision-making, implemented on 30 September 2024, to which customs clearances under the special VAT scheme for imports called IOSS (Import One Stop Shop), made with the additional procedure code F48, are directed when the application contains the number of the replacement declaration or if a statement of reasons has been added to it.

Only cases where the applicant’s claims are approved in all respects are directed to the automated decision-making procedure of Customs’ correction unit. As a rule, there is no case-by-case consideration of matters to be decided automatically by Customs’ correction unit. In some situations, a decision that requires case-by-case consideration may be confirmed automatically, if the proposal has been heard by the customer and no rejoinder has been lodged within the deadline or if the customer has stated that they accept the proposed decision as is. However, in that case, the official has assessed the factors that require case-by-case consideration in advance and the decision is confirmed in accordance with the proposal.

Descriptions in detail of the different decision-making procedures have been entered in the implementation decisions.

Legal remedy

According to the Administrative Procedure Act, the customer must have a possibility to submit a request for an administrative review or a comparable review in automated decision-making situations where the customer’s claim is not approved or the decision concerns another party. Requesting an administrative review is a legal remedy, with which the customer can request that the matter be processed by a person, as provided in the data protection regulation.  There is no claim for legal remedy in cases where the customer’s claim is accepted, unless it concerns another party. 

Customs does not use automated decision-making in situations where the customer’s claim is not approved or the decision concerns other parties. Exceptions to this are invalidation requests concerning import declarations, which can be resolved automatically by accepting or rejecting the request as well as situations where a matter initiated with a declaration lapses due to the passage of time and the inactivity of the customer.

As a rule, administrative review of automated decisions issued by Customs may be requested from Customs. Instructions on how to request an administrative review are part of the Customs decision. Included in the decision are the contact details that the customer can use to obtain additional information on the decision.

In some situations, it is not possible to request an administrative review. Administrative review cannot be requested regarding invalidations of customs declarations due to the inactivity of the customer. Instead, for the matter to be processed again, the customer can submit a new customs declaration. Invalidation requests processed by Customs’ correction unit, however, are requests for administrative review regarding which a claim against the decision cannot be filed to Customs; rather the decision can be appealed to the administrative court. Automated decision-making concerning invalidation requests is only used when the matter is resolved in accordance with the customer’s claim. When the customer’s claim is approved, the customer is not considered in need of protection under the data protection law to have the decision processed by a person.

Data protection

The processing of personal data in Customs’ automated decision-making is described in Customs’ privacy statement.

Additional information

Additional information about the use of the automated decision-making procedure and about implementation decisions is available via Customs’ registry office by email to kirjaamo@tulli.fi, by telephone +358 (0)295 527 000 or by post to Customs, PO Box 512, 00101 Helsinki.

Updating data

This webpage is updated when the automated decision-making procedure is changed or when a new automated decision-making procedure is introduced.