CCAF PRESSES CONGRESSIONAL STAFFERS ON NEED FOR MORE ACE FUNDING

CCAF PRESSES CONGRESSIONAL STAFFERS ON NEED FOR MORE ACE FUNDING    At a briefing on Capitol Hill Thursday, a handful of industry members of the Coalition for Customs Automation Funding emphasized to congressional staffers the need to increase funding for the development Customs’ future computer system.
   To back their arguments, CCAF explained the import/export business’ need for a new Customs system, the Automated Commercial Environment.
   “If Customs is not adequately funded to develop ACE to handle increased trade, the consequences to retailers and consumers will be profound,” said Erik Winborn, director of national government relations for Wal-Mart, in a statement at the briefing. “First and foremost, it will cause higher prices for consumers. Carriers, distribution centers, and ports will become congested and the supply chain will not operate efficiently.”
   The coalition emphasized other aspects of why a modern Customs system is important to the country. These included national security and law enforcement, manufacturing, retail sales and consumer prices.
   The CCAF said that at current ACE funding levels of $130 million a year, it would take 14 years to build the new system. The coalition wants Congress to raise the fiscal 2002 budget for ACE to $308 million to keep the system on its scheduled four-year development plan, said Jonathan E. Gold, director of international trade policy for the International Mass Retail Association, and a member of the CCAF steering committee.
   The House Ways and Means and Senate Finance Committees have indicated they plan to draft authorization bills next month that would include the full amount to keep the ACE rollout on schedule. The authorization would then be debated by Congress.
   David K. Kavanaugh, a staffer with the Ways and Means Trade Subcommittee, said next month would also be an important time for the industry to explain to Congress its “horror stories” on what would happen to trade without a new Customs system in place.
   CCAF plans to intensify its lobbying on Capitol Hill. “We will continue with this grass-roots effort,” Gold said.