Agenda

Back to Calendar Return

Item # 1.

Council Meeting

Meeting Date:	09/28/2021
Department:	Airport
Pillars:	Excellence in Transportation Systems

AGENDA CAPTION:

Present and Discuss a Draft Ordinance for User Fees for International Flights Arriving at Addison Airport.

BACKGROUND:

The purpose of this item is to discuss the possible implementation of user fees to defray a portion of the costs of providing U.S. Customs services for international aircraft arrivals at Addison Airport.

There are six airports in the Dallas – Fort Worth metropolitan area which general aviation aircraft may use to clear U.S. Customs: Dallas – Fort Worth International (DFW); Dallas Love Field (DAL); Fort Worth Meacham (FTW); Fort Worth Alliance (AFW); Addison (ADS); and McKinney National (TKI). DFW is the area's International Airport of Entry. The other five airports (including Addison) provide services through the U.S. Customs User Fee Airport program. User Fee airports are required to reimburse Customs and Border Protection (CBP) for all costs of providing Customs services, including overtime expenses incurred by CBP officers providing clearance services outside of normal business hours. User Fee Airports are permitted to charge fees to users to recover the costs of providing those services.

Addison joined the User Fee Airport program in 1994 and has provided Customs services continuously since then. Addison has not charged for providing clearance services, even though it was and is entitled to do so, other than a direct pass-through to users of overtime charges incurred for after-hours arrivals. The decision not to charge for clearances at Addison appears to have been made for both competitive and philosophical reasons. The competitive reason was that there were three area airports (DFW, DAL, and FTW) offering Customs services free of charge. The philosophical reason was that Addison at that time favored a full-service, everything-included business model over a fee-for-service model. Dallas Love Field (DAL) implemented Customs user fees in 2015. Fort Worth Meacham (FTW) implemented user fees in 2019. Fort Worth Alliance charged a fee from the time it joined the User Fee Airport program in 2003. Implementation of user fees at these airports has significantly altered the local competitive environment.

In light of changes in the local market and in recognition of the cost of providing a new Customs facility, airport staff is seeking to implement user fees at Addison when U.S. Customs begins to provide services from the new facility. User Fee payments will be collected by means of an automated kiosk located on the airside of the entry to the CBP facility.

RECOMMENDATION:

Staff seeks direction from Council.

Attachments
Draft Ordinance - Customs User Fees
Presentation - Proposed U.S. Customs User Fees
User Fee Airports
Airport User Fees
Customs Revenue Model