How not to implement a new Customs IT system
October 21, 2005 by SwizStick
Filed under 3PL, Education, Integrators, Misc Logistics, QuickNews, Seafreight, Supply Chain Management
Australia recently rolled out their much hyped AUD 200 million brand new Integrated Cargo System for processing seafreight customs clearances only to immediately experience problems and delays in clearing cargo at the ports.
Today there is a new article that points out that now the Australian government is considering shutting the system down – after just 1 week – due to increasing backlogs at the seaports and angry complaints from the 3PL community and customs brokers.
CUSTOMS Minister Chris Ellison was last night considering shutting down the new $250million computer system at Australia’s major sea freight terminals as delays in shifting goods plunged ports into chaos.
Senator Ellison is holding crisis talks with industry representatives and major importers to overcome the massive bottlenecks that have brought the nation’s ports to a grinding halt.
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Just two months out from Christmas, and with importers and retailers on the verge of their biggest period of the year, containers full of everything from toys to white goods, computers, pharmaceuticals and even urgent medical supplies are mounting up in warehouses, air terminals and on wharves.NSW Ports Minister Eric Roozendaal said at least 13 ships were likely to be turned away from Sydney’s Port Botany over the next few days.
Delays caused by the “Integrated Cargo System” – introduced last week despite predictions of chaos – are causing enormous aggravation among customs brokers, freight forwarders and major importers, such as Coles Myer.
“I’ve told Customs all stops have to be pulled out to fix this problem,” Senator Ellison said yesterday.
“If Customs is not able to address (the problems) we’ll roll back the system,” the minister said. Senator Ellison said if Customs did go back to the old system there would be “no timeline” to reintroduce the new software. “We’ll (wait) on implementing it until we think we’re ready.”
Who’s to blame for the problems with the new system ? Why, it must be user error:
The federal government has opted to keep using a controversial new cargo reporting system, and has attacked users for contributing to delays at some ports.
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Late Friday afternoon, Customs confirmed the move, with a spokesperson lashing out at media reports that said the new system had “failed”.“Nor is its performance solely responsible for the problems that have occurred.
“The problems experienced in part, flow from inaccurate and incomplete information being submitted by some users, which the new system is designed not to accept for security reasons,” the spokesperson said.
There is nothing quite like the federal government forcing an industry to accept a new system – after this same industry had pre-warned them it would become a disaster – and then blaming them for the problems with the new system, claiming that it is the industry’s fault that they don’t know how to use the system. This can’t be doing any good for the relationship between importers and customs, not to mention the Australian government.
And the most recent news indicates that the Australian government has decided to stick with the new system – for the time being – despite the threat of ports turning away cargo ships due to the delays in clearing cargo and the massive backlogs in the ports. Industry leaders are blasting the decision and the new cargo system :
Cargo clearance rates are down to 30 per cent of usual levels as freight forwarders and customs brokers struggle with the new Customs processing system for sea cargo.
Brendan Tout, of customs broking firm Freight On Board, said the system was beyond repair.
“This is turning into a national disgrace and a national disaster,” Mr Tout said.
“It’s killing our business, the system doesn’t work and we can’t cope with the amount of data coming through.”
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Australian Federation of International Forwarders head Brian Lovell blasted the decision to persist with the new system for sea cargo.“It’s not going to ease congestion unless there is some miracle solution that Customs can come up with,” Mr Lovell said.
“Our members will be hurting if storage fees are not paid by customers.
“Someone’s got to pay.”
Read more about it here.
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