Report: Customs modernization not ready for implementation

Improvements are needed before a long-awaited modernization of the nation's commercial-import processing system can be implemented, the General Accounting Office concludes in a new report.

The Customs Service is in the early stages of a multi-year, multi-billion-dollar project called the Automated Commercial Environment (ACE) that aims to improve the flow of goods into the United States.

In its report on the second phase of the project, "Customs Service Modernization: Management Improvements Needed on High-Risk Automated Commercial Environment" (GAO-02-545) GAO found that ACE is a "high-risk endeavor" in part because the system is large and will have a significant impact on the existing organization, creating technical and management complexities.

Another problem is that Customs "severely" underestimated costs in its first stage. Furthermore, Customs is behind on system design, worker training, software-acquisition management and cost estimation, the report said.

GAO recommended that Customs' chief information officer take action on those areas before beginning detailed design and development on the project.