A multi-million dollar system to streamline Bermuda's Customs procedures has been delayed for the third time due to programming problems.

The $3.5 million system will revolutionise Customs procedures, speeding up entry of imported goods and freeing Customs officers to increase their drug interdiction activities - if the UK programmer can work the bugs out.

Finance Minister Eugene Cox announced this week that the Customs Automated Processing System (CAPS) has been postponed again although it was to be operational at the end of November.

CAPS was originally intended to come on-line in September 2000 but has been held up repeatedly by its UK-based programmer Grosvenor International Systems.

"This further delay is very disappointing because there has been tremendous co-operation between the business community and HM Customs to meet the target date and we apologise for the delay," Mr. Cox said in a press release.

Collector of Customs Winnifred Fostine-DeSilva told The Royal Gazette that the programmer is struggling with the accounting component of the new system.

The entire CAPS system is being written and developed specifically to meet Bermuda's complex importation needs.

Ms Fostine-DeSilva said once the programmer sorts out the accounting package and the system is stable, Bermuda will go "live" with CAPS six weeks later.

But due to the prior delays, she said, the department is reluctant to suggest another target start date.

"We're working on it but we're completely reliant on the programmer," she said.

The decision to move to an electronic system was made in June 1999 and Customs has significantly revised its procedures since that time.

A small portion of the eventual CAPS system - ERIC - has been in place since September.

ERIC allows importers to have their goods cleared electronically rather than having to physically meet each shipment for Customs clearance.

These importers only have to make one visit to Customs in order to drop off a cheque but in the future even this will be eliminated as duty payment will be directly debited.

Only two major importers have opted to use the ERIC system to date, however.

Many of the smaller retailers have decided to wait until CAPS is ready in its entirety before switching over their procedures, Ms Fostine-DeSilva said.

However, delays at Customs have already been shortened, she added, given the faster clearance of goods bound for these two major retailers.

When CAPS goes live the entire process should be dramatically streamlined.

In addition to getting goods through more quickly, Ms Fostine-DeSilva said the system will automatically reject improperly processed documents and flag high risk shipments.

"We had some great successes with drug interdiction this year at the borders and CAPS will free up more staff for these roles," she said. "I am sure you will see the amounts (of narcotics) seized increasing after the new system is implemented."