The Brokers are responsible for 95% of the entries we process each year. That's an amazing figure, when you consider that in fiscal year 1999 we processed over 21 million entries - up 132% from ten years ago. The numbers make clear what we already know: we must work together to achieve our modernization goals.

This conference couldn't have come at a better time. I believe Customs, in partnership with the Trade, is finally gathering up the head of steam needed to fulfill the promise of the Mod Act. Never has Customs commitment to follow through on that promise been so important. And never has the need for you to speak to us with one voice about the next generation of Mod Act reforms been so essential. The dialogue among the major stakeholders -- Customs, Treasury, Congress, the Administration, and the Trade -- is intensifying. And we simply can't let up.

No doubt some of you are asking, what has taken so long? After all, the Mod Act was passed in 1993. We've had seven years since the Act's implementation to realize the goals it set. But before we focus on all that remains to be done, let's take an inventory of what has been achieved, and appreciate for a moment the fruits of our collaboration.

I've been involved in public life a long time; in fact, for most of my career. I've never seen such positive interaction on regulatory issues between a public agency and one of its core constituencies. I believe Customs and the Brokers and Forwarders enjoy a level of communication that is unmatched in any other area of government and industry relations.

That communication intensified in the early 1980s, when the Trade was told it must automate or perish. Well, you're still here. And while we spend a lot of time worrying about the frailty of the Automated Commercial System, and the simple fact that it's old, the truth is it's a system that has served us well. And you deserve a lot of the credit for that.

Today, 99% of entries are filed electronically. Some 81% of payments are filed through ACS too, saving both the government and the Trade countless millions of dollars in administration and labor.

That system bought a lot of credibility with the Congress. Customs and the Trade showed that they could pool their intellectual and technical resources and make major change. So when the time came to collaborate on the Mod Act, the groundwork was laid. ACS brought us into the modern era, but the growth of international trade quickly outstripped us. Two facts soon became apparent: first, if customs couldn't examine more goods, it had better get more selective about those it did inspect. Second, a new automated system was required to achieve that goal and meet the changing needs of business. Congress told Customs and the Trade to get together and hammer out the differences, and that's exactly what was done.

The resulting Modernization Act of 1993 mandated both the legislative drivers and the new system of automation that would enable us to meet the challenging era of global trade ahead. It was a hard fought bill, but Customs and the Trade showed once again that they could cooperate effectively to serve the nation's best interests.

Now, no one is pretending that there isn't a lot of unfinished business from the Mod Act. It would have been nice to fulfill all the goals the act laid out in one clean sweep, but unfortunately Washington just doesn't work that way. But what that bill did in effect was inaugurate a new period of cooperation between us; cooperation that allowed us to fine tune those pieces of the Mod Act we could implement, and prepare the ground for the automation centerpiece we're still awaiting.

Since becoming Commissioner of Customs, I've made it a top priority to see the Mod Act through. Much of what you've observed happening internally at our agency feeds directly into the spirit of our modernization goals: streamlining operations; developing new programs to strengthen professionalism and training; recruiting the best people for Customs the nation has to offer. All are designed to enhance the ability of the Customs Service to meet the same real world demands your clients place on you.

Then there are those aspects of the mod act focused on our processes -- the ones that have a direct impact on your operations. We've pledged to work with you on these initiatives, and we've done so on a number of crucial fronts:

The Drawback Program, which last year processed over 400 million dollars in refunds; Customs and the trade won a "Hammer Award" for excellence in government in 1997 from Vice President Gore for Drawback regulations. This association and its Drawback Committee can claim a major share of the credit for that.

Speaking of Drawback, I had the pleasure of meeting John Eberlein this morning, who some might call the "Dean of Drawback." I would just like to recognize John for his outstanding work as Chairman of the Broker's Drawback Committee for forty plus years, and his lifetime of contributions to Customs and the Trade. Thank you, John.

We've worked together on Remote Location Filing, which has expanded from a handful of ports and importers to 150 participants at over 100 sites. Looking ahead, we have major plans for the Broker Account Management Program, which you'll hear more about this afternoon at one of the scheduled sessions. We have equal ambitions for Broker Express, which is coming about in part through your discussions with our Trade Ombudsman, Joe Rees, on how to expedite background investigations. We have an amended Compliance Assessment Process that includes new risk category levels to allow greater flexibility in rating non-compliance. And of course, the Broker Regulations....

I know the Regulations have been a long time coming, and I'm pleased to report that they will be published today in the Federal Register and are available right now for you on our website. The Regs include a provision for a national permit, which will allow brokers to conduct business in locations where they do not have a district permit.

We have copies of the Regs here for you along with an informed compliance publication that summarizes key provisions. The Broker Regs are a direct product of your input, and I want to thank you all for your help in getting these important guidelines out.

Though this is by no means an exhaustive list, the last initiative I'll mention is the Entry Revision Project. I'd like to spend a moment on this because it's so important. Entry Revision came about as a direct response to what the trade perceived as major shortcomings in the mod act -- specifically, getting the entry process up to speed with how business is done. Last week in Washington, four major trade groups representing importers met to discuss entry revision, yours among them. I would venture to call this an historic event. Never before has the trade joined forces like this to focus its expertise on such an initiative. But it was greatly needed.

There's a lot of work that must go into entry revision, and statutory changes are needed too. That's why we asked for your consensus on how entry revision can best work for you. Before we take this to the Congress we must make sure we have a sound proposal. In addition, our window of opportunity is closing. We need to have everything in order very soon, to get legislation approved without delay.

I hope you'll continue to work with us to make that happen. This morning at 10:30 there's a panel discussion on entry revision that I would urge you to attend. It's just part of a entire Customs day devoted to enhancing our communications with you. The briefing will provide an important update on where we stand with this initiative.

I'm very encouraged by the unity displayed by the trade last week in Washington on entry revision. It's just the winning formula we need to fulfill the promise of the Mod Act.

I can assure you Customs will continue to do its part too. As you know, we've had some important developments of late on automation. Due to a lack of funding, I authorized the shutdown of NCAP, the ACE prototype used mainly by the Big 3 Automakers, last month. NCAP, by all accounts, has been an unqualified success and a positive sign of things to come. We didn't want to see that program end but we had no choice; we can't do much without the money. In fact, this is the first year in the last six years that money hasn't been allocated for ACE development.

Fortunately, the Treasury Department was able to help us find some additional money a few weeks back to keep NCAP up and running for the rest of the fiscal year. While that may not be big news for this audience, the larger point is this: the NCAP situation sounded an alarm about what's at stake over ACE. Suddenly, this crisis took on a greater urgency. Now, the issue is back in play strongly with the Congress and the Administration and that's a very good development for us.

We're also concerned about keeping our current automated system functioning while awaiting help from ACE. Just yesterday I testified before the House Appropriations Committee on our fiscal year 2001 budget. The budget includes a request for 210 million dollars to get started on ACE. I made the case again to our Congressional leaders about the vital need for the new system. They're aware that time is running out, and that we must find a solution fast.

This is not an issue on which we can afford to take sides. It's not just important to Customs, or the Brokers. ACE is important to America, and it must get done.

I want to thank you for joining in the efforts to unify the trade and serve the interests of the whole. I believe it's the right model for our march towards modernization. I know some of our best innovations over the years have come from you. You're the ones who work with our systems every day. You have the technical know-how and experience. That's why communication between us is so vital. But it must be a dialogue that is focused and unified.

You have my pledge to continue to build a Customs Service of the highest professional caliber -- an agency that is responsive to your needs, and one that is prepared for the intensive challenges placed on business by the force of global trade.

With your continued help, we'll be ready. Customs and the Brokers and Forwarders have a proud legacy of achievement to look back on, and the strongest of foundations on which to build.