Full ACE implementation delayed until 2010
It took years to convince Congress of the need for better Customs computer systems and then more time to get enough funding to get the modernization program up and running, followed by the usual delays in large technology projects.
After almost 10 years, it now appears frustrated international shippers will have to wait even longer to conduct customs business through an upgraded automated import-export system.
Last Friday, Rod MacDonald, acting assistant commissioner for information technology, announced a revised program plan that pushes completion of the Automated Commercial Environment (ACE) out to 2010, based on anticipated funding patterns. It is the second time this year that officials have altered the timetable for the massive computer project, designed as the foundation for a streamlined system for filing customs entries and duties, as well as sharing data for antiterror risk analysis of inbound shipments. Earlier this year Customs officials spoke of completing everything by 2007 compared with a pre-Sept. 11, 2001 finish date of 2005-2006.
Officials blamed the delay on the need to build in more software programs to support the agency’s expanded border protection mission and on new Food and Drug Administration bioterror regulations to track food imports.
Customs and Border Protection (CBP) officials tried to soften the news to industry representatives during the quarterly meeting of the Advisory Committee on Commercial Operations of Customs and Border Protection (COAC) in Buffalo, N.Y., saying much of the ACE functionality will be installed in the relatively near future. Two phases of the project are largely in place: an account management system and periodic monthly statement.
The first phase of testing the modernized computer system began last year with a select group of 41 importers who were able to access their customs account data through a secure Web portal. Importers and their brokers will be able to pay estimated duties and fees on a monthly basis through an account-based system instead of each time a shipment enters the United States, as has been done through the Automated Commercial System. The second phase of the ACE rollout tested the ability of the system to accept periodic payments from the test group. Customs recently opened the program to more importers and brokers.
MacDonald said CBP has taken several steps to make parts of ACE available to the trade community as soon as possible, including moving up to 2007 the launch of the multimodal manifest for providing advance detailed cargo information, replacing separate manifest systems for air, rail, vessel and truck sectors. CBP has also built four phases to improve cargo selectivity and targeting into the program plan. Testing an automated truck manifest filing function — Release 4 — is set to begin in December. It is the first real cargo release function that pulls together several existing release methods for trucks into one process.
COAC members said they were discouraged by the long delay in delivering ACE, saying it costs their companies money to prolong the use of the antiquated, patchwork Automated Commercial System and makes it hard to maintain momentum for ACE.
“I’m concerned that unless ACE is adequately funded we will lose parts of it along the way,” said Arthur Litman, of FedEx Trade Networks. He urged CBP and the Department of Homeland Security to do everything possible to find more money for ACE and pull back the timeline.
ACE, which is experiencing cost overruns, is now projected to cost $2.2 billion to complete, according to the July 12 issue of Federal Times. Congress has approved $735 million for the project so far.
The increase in trade volume and security requirements is placing increased demands on Automated Commercial System and slowing the system down during peak usage periods.
“We want assurances that it can handle the increased volumes,” Litman said.
The Automated Commercial System is available “99.95 percent of the time,” replied Betsy Durant, director of trade compliance and facilitation.
CBP will continue to budget enough to maintain the capacity of Automated Commercial System, MacDonald said. The system’s capacity has tripled since 2000 and the agency is adding another 25 percent capacity in the coming weeks “so we can stay ahead of the performance and workload curve.”
Other IT efforts to support ACE include 24/7 coverage in the Customs data center, so it can reboot the system as quickly as possible if there are network problems; a major data archiving initiative to reduce the amount of stale data clogging the system; and added software to make sure the system is stable.
MacDonald acknowledged that significant outages occurred to the Automated Commercial System in May and June, but said they were not a function of neglecting Automated Commercial System. The system went down once when technicians had problems introducing new software and had to remove it. The other outage was caused by a hardware failure in one of CBP’s data storage devices, he said.
Litman urged CBP to develop a backup system to use e-mail or other communications to notify the trade when Automated Commercial System is down rather than relying on the system itself to alert the trade that there is a problem.
CBP is working to incorporate Automated Commercial System upgrades in ACE so companies can invest in systems to interface with Automated Commercial System knowing that they will deliver recurring benefits when ACE comes along, MacDonald said.