Customs Asks for Computer Money

The Customs Service needs $1.4 billion over the next four years to replace the antiquated and increasingly shaky computer system it has used for the last 16 years, customs chief Raymond W. Kelly told the Senate Finance Committee.

"We need a lot of money, and we clearly need it as soon as possible," Kelly said during a May 13 hearing.

Committee chairman Sen. William Roth (R-Del.) said "reports of 'brown outs' in the customs computer and the lengthy delays reported at U.S. ports and border crossings suggest that customs may be headed for a serious breakdown."

However, it remains unclear where the funds to upgrade the system will come from. A proposed user fee got a lukewarm reception.

Customs' system tracks the $955 billion worth of imported goods as well as $22 billion in duties and fees assessed on those goods annually. The number of shipments entering the United States rose by almost 2 million in 1998 – up to 19.7 million -- and imports are expected to double by 2005 to $1.8 trillion.

Though the computers are on temporary, Internet-based "life-support," customs officials and outside observers agree that a long-term shift to the Automated Commercial Environment -- a more advanced tracking system -- is necessary (See story, Page 12).

The General Accounting Office found that customs was not up to the task of computer modernization.

Kelly enumerated various improvements in customs' internal operations, which he said would make its internal management "competent, well managed and up-to-date."