computerisation of the Customs' declaration procedure.

Collector of Customs Bill LeDrew announced yesterday that UK-based Grosvenor Ltd. has experienced delays in developing and testing the software for the new Customs Automated Processing System.

The CAPS system -- which will cost HM Customs $3.5 million in implementation and development costs -- will now become operational on February 10.

But importers have until November 8 to learn the new Customs Declaration Form when the old form will be completely phased out.

Because the software was contracted on a fixed price basis, there will be no additional costs to Government.

"The important thing is that for CAPS to be successful, we have to get it right,'' Mr. LeDrew said. "There was some concern in the retail trade that this time was their peak season and this would not be ideal. Certainly that was their concern.

"Also, we're training a lot of people, more than 300 so far,'' he added.

"There was concern that we wouldn't get all of this through in time (for the end of September). Frankly, we want to get it right the first time.'' Mr. LeDrew admitted that the November 8 start-up for the new declaration form was "getting close to Christmas'' but added: "Overall, it's a disappointing decision, but, I think it's the right one.'' "I'd rather that in place than have all the headaches,'' he explained. "No, fortuitous is not the right word. I wouldn't use it, but you are correct in that it gives the trade (importers) time to get it right and Customs the time to get it right.'' Mr. LeDrew said the delay was "doubly disappointing'' because of the amount of co-operation between businesses and Customs to meet the original target date of September 29.

"I have informed our key private sector partners of the delay today,'' he continued. "We have talked at some length about whether we should still make an attempt to introduce the system this year.'' Mr. LeDrew added: "I believe, however, that difficulties might be experienced if we tried to superimpose the new system on top of what is rapidly going to become the busiest season of the year...'' He said businesses had responded with "relief'' at news of the delay.

Customs provided Grosvenor with its requirements for the system and the company prepared system specifications and then computer programmes.

"They simply asked for more time,'' he said. "There was no one particular problem. There is no question of them losing faith in us or us in them. We just need to give them time.

"We will accept the old bill of entry up to November 7 and effective November 8 all importers will be using the new Customs Declaration form,'' Mr. LeDrew concluded.

"Yes, it was an option to go ahead, but at this point on November 8 all goods must be on the new Customs Tariff schedule.''