4 February 2000

Importers to seek funding for ACE computer system

The following article is excerpted from "The Journal of Commerce" edition of 4 January 2000.

Importers are preparing to renew their campaign for congressional funding of a sorely needed U.S. Customs Service computer system.

The drive comes after Customs Commissioner Raymond W. Kelly announced last week that with funds for the project drying up, Customs will suspend both a successful prototype of it and development of the full-blown version.

The new import-clearance computer system, called the Automated Commercial Environment, or ACE, is needed to replace the Automated Commercial System. ACS is a outmoded, 15-year-old system that Customs and industry officials say is in danger of collapse.

Kelly said that unless Congress commits to funding the new program further -- something it has been unwilling to do -- Customs will soon halt ACE development. The system is estimated to cost at least $1.2 billion to develop and implement.

Kelly said Customs could divert some funds from its other programs toward ACE, but that this would be pointless without congressional support.

The announcement "has really got some people unhinged," said Robin Lanier, chairman of the Washington-based Coalition for Customs Automation Funding, which has campaigned for funding of ACE.

Importers said that while they're disappointed the program is being shelved, they understand Kelly's decision....

Kelly "faces some very difficult choices," Lanier said. "He's trying to leverage Congress, or to put it another way, 'blackmail' Congress" into funding the program. He's exercising the only leverage he has."

Lanier this week asked each of her group's members, about 200 companies, to write a letter to every member of the House Ways and Means Committee and Senate Finance Committee, requesting funding for ACE.

The system has been caught in a struggle over who will pay for it. The Clinton administration has proposed paying for the system with new fees on importers.

Importers counter they are already paying more than $1 billion in annual fees which are supposed to be dedicated to Customs' commercial operations, and that this money should be spent on ACE.

A plan gaining favor among importers is to support a two-year extension of the unpopular Merchandise Processing Fee, which they pay on imports, if the money goes toward Customs automation....