Congress Offers Little Help for Customs' Aging Computer System

The U.S. Customs Service didn't get the funding from Congress it wanted to upgrade its aging computer system, so importers may end up stuck with the bill.

Customs' computer system is 14 years old and has been operating near capacity for months. Things came to a head in September when it got so overloaded it crashed twice, forcing companies to find other ways to file import documents, 98% of which are usually handled electronically.

The agency has a plan, called the National Customs Automation Program, to increase electronic filing and solve the capacity problem. One of NCAP's major goals is to replace the old computer system with a new one called the Automated Commercial Environment, or ACE.

Officials estimate the total cost of the upgrade at $800 million dollars, but Congress has not approved adequate funding for ACE. Customs asked for $50 million for the project for next year, but lawmakers ended up giving them only $8 million.

Congress has been reluctant to fund the project because of concerns that Customs hasn't adequately planned the ACE project or explained how it would work.

In March, President Clinton suggested that importers pay for ACE. That proposal, which has been denounced by industry, calls for raising the Merchandise Processing Fee paid by importers.