BT lands £28.7m Customs IT contract extension

BT has won a £28.7m extension to its contract to manage the HM Customs and Excise (HMCE) import and export system until said system is replaced in 2010.

BT built the Customs Handling of Import and Export Freight (Chief) system back in 1989 and the existing five-year contract for BT to supply, operate and manage Chief service that was let in 2002 has now been extended for a further three years to 2010.

HMCE aims to have a more modern replacement system lined up by then and BT said it will work closely with the department to ensure a smooth transition to a successor. A HMCE spokeswoman said the procurement process for the Chief replacement has still to be confirmed.

"The plan is hopefully that a new system will be delivered in 2010 but as to what form that will take nothing has been decided," she said.

The existing Chief system links customs officers with 4,700 traders and freight forwarders who use the system directly and it supports all import and export traders in the UK, collecting some £20bn in duties and taxes last year.

Under the terms of the contract extension BT will be responsible for providing greater system capacity, improving disaster recovery services and adding reporting functionality.

Maurice Kingdon, head of customs and international trade group at HMCE, said the Chief system is vital to the handling of the UK's import and export declarations, processing 27 million transactions a year.