The Government of Jamaica decided to develop customized software for the Jamaica Customs Department after review and rejection of available packaged software in the market place. Fiscal Services Limited (FSL), a government owned information technology company was assigned the task.

The Jamaica Customs Department went about their responsibilities primarily in a manual fashion, which at its core was a paper based system. The system involved shuffling large amounts of paper through many processing sections within the department. Most of the time, the broker or the importer were utilized to move the paper around. There was a starting inability to quickly and accurately reconcile revenue collected with the import entries processed. The inconsistencies and an absence of accountability was fertile ground for fraud.

Management became almost ineffective as any new measures introduced to bring its operations under better control was seen by the outsiders as yet another bureaucratic layer being applied to frustrate importers, while management viewed external initiative to facilitate trade as threats to revenue collection.

Customs administration had very little data available to support its decision making process and the data that was available generally was untimely and of questionable accuracy.

The new approach began with an exhaustive study of the existing situation with a view to identifying new requirements and strategies for a modern system. The analysis covered all the functional areas of Customs which helped to identify and prioritize those that would have the greatest impact on efficiency.

It was decided to have the import entry data captured at the point of lodgment with the entry linked into a new collection system. Import entries would be presented in an electronic form via the internet, diskette or have paper entries keyed at lodgment. This would allow the computer system to move these electronic entries easily among customs processing sections and effect a paperless import entry processing system.

While development of the Customs back-end or cargo processing system was a challenge in itself, the real difficulty was the development and acceptance of an application programme that would reside on the Broker's/Importer's computer that could capture.

Validate and submit the C78 Customs entry electronically. This new subsystem called the C78 Electronic Entry Lodgment System would:

*Capture import entry data, calculate duties and other taxes, and validate the entry;
*Lodge the import entry electronically be connecting seamlessly to the Customs Automated Services (CASE) website and initiating the file transfer;
*Receive lodgment confirmation or lodgment rejection with detailed error analysis;
*Print the C78 entry, other related forms and reports.

CASE or Customs Automated Services, an online multi-service facility would allow:
*Electronic transfer of shipping manifest and other documents via Electronic Data Interchange; (EDI)
*Broker and Importer access to Information and Query Services;
*Provide C78 Entry Lodgment Services

CASE ensures that the import entry data that is captured and subsequently submitted from the comfort and convenience of the Customs Broker's office are lodged with Customs thereby providing the platform to expedite the processing of the shipments. In addition to lodgment of entries, payment of duties would be allowed over the Internet.

The challenges experienced were many, they varied in degree among Customs Brokers, Customs Officers and Telecommunication Services.

The Customs Brokers were a particularly difficult group as many felt that their competitive advantage over each other would be diminished by the impending changes. They also feared technology, many using it for the first time. Others, while somewhat familiar with the technology, did not utilize it for mission critical functions. Reactions ranged from organized protest to sabotage.

Among Customs Officers the changes often were opposed for monetary reasons. The new system would eliminate the need for overtime, as the processing of paperwork went well into the evening in order to keep up with the volume. Others benefited from private arrangements with brokers.

Telecommunication services also presented two significant obstacles:

*Many Customs Brokers required additional phone lines for access to Internet Service Providers (ISP's). At is turned out many of these new lines could not be made available due to physical infrastructure deficiency in certain areas.

*It proved difficult to access ISP's during peak hours, and the timelines of response to relay email messages proved problematic. This was true initially as in the early stages we moved electronic entries and acknowledgements via e-mail.

As time progressed and with the backing and determination of the Ministry of Finance, the availability of telephone lines increased. FSL upgraded the e-mail based communication to an on-line web application, and Customs by then understood the seriousness of the effort. FSL assembled a technical team to assist Customs Brokers with installation a PCs, training, application software usage, and connectivity to the internet. In addition a customer service center with special hot lines were set up to resolve problems quickly.
The Government of Jamaica has funded the overall requirements analysis, the development of software suites, data communication equipment and computers over the initial five years of the project to a cost of US $ 5.5 million.

After our successful implementation of core functions the World Bank and IDB have joined in providing loan funding along with the government counterpart funding to add enhancements and to complete the customs modernization and reform process.

Other functional areas of a modern customs department such as; risk profiling and analysis, intelligence, monitoring and enforcement along with expansion to all entry points are being addressed with the new funding.

This effort has yielded many benefits, an examples is that there has been a steady increase in revenue collection despite little or no economic growth in the country. At this point our determination as to the reasons for this increase is inconclusive, but we notice that although the number of entries processed has been trending down slightly or has remained constant, revenues have increased significantly.

The Customs Brokers have come to appreciate the convenience and increase speed in processing an entry. In contrast to lodgments being limited to Mondays through Fridays 9:00 a.m. -4:00 p.m. the new system permits lodgments 24 hours per day seven days per week. Brokers are also gratified that processing of an entry, which previously took two to three days, on average, is typically done in three to four hours. (This does not include "fast track" which is immediate, for those who qualify, requiring only duty payment). Now ninety-eight (98%) percent of entries are submitted electronically, with ninety-five (95%) percent of broker on-board.

A less traumatic implementation could have been realized if there had been a commitment to reform the Customs operation at the beginning of the computerization effort. That mandate is required to effect the re-engineering process that must occur to ensure maximum benefits from a new system. It is also imperative that an extensive awareness program and sensitization of the stakeholder is undertaken early in the process, and followed through the project's life.

Customs must take ownership and control of the project. In our case, the MoFP, and FSL took on that role, but were not nearly as effective as Customs might have been.

Customs needed management with working experience in a computerized Customs operation, and ideally experience in the transition process. That certainly would have reduced fears and helped in their ability to orchestrate the change management process.