Abstract: The article is devoted to the study of the influence of the institute of administrative responsibility on the innovative development of customs administration and digitalization of public governance. Automation of customs operations, categorization of participants in foreign economic activity, selection of objects and forms of customs control using software tools are directly related to administrative responsibility in the field of customs. Conclusions are formulated concerning the need to stimulate innovative development of the commercial side of the customs sphere, as well as the need to ensure the effectiveness of the use of automated systems, minimize potential risks, develop a legal regulation mechanism that excludes bringing to administrative responsibility of foreign trade participants for illegal acts that are not guilty, but arose as a result of errors or technical malfunctions of automated systems. The subject of the research in this article is therefore the influence of the institute of administrative responsibility on the innovative development of customs administration and foreign economic activity. The research methods were: analysis, synthesis, generalization, comparison and analogy, induction and deduction, universal dialectical, logical, statistical, formal legal research methods, the method of legal forecasting, etc. Based on the results of the scientific research, the authors substantiate the need to revise the place and role of the institute of administrative responsibility in the field of customs relations, and also formulate proposals for improving this institute in order to ensure accelerated and balanced innovative development of both customs administration and foreign economic activity