CBSA Update. March, 2008 Council Approves Airport Business Plan. Plan identifies on-site Canada Customs as a Strength

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1 DS

2 March, 2008 Council Approves Airport Business Plan Plan identifies on-site Canada Customs as a Strength Plan identifies the limited hours of service as a weakness

3 In April of 2010 we began a dialog with CBSA regarding the possibility of Increasing the hours of operation (8:30am 4:30pm, Monday to Friday) 3 rd party extended hours special service agreements (Enterprise, 4:30pm to 10:30 pm call out, terminated May 2010) Providing service outside the hours of operation Establishing an air sufferance warehouse at the airport Negotiations primarily at middle management level

4 DS Development Services Committee Meeting -June 28,2010 Canada Border Services Agency (Ward 4) Whereas the Canada Border Services Agency (CBSA) provides commercial goods customs clearance services at the Oshawa Municipal Airport Monday to Friday from 8:30 a.m. to 4:30 p.m. at no cost; and Whereas the CBSA charges for these services in Oshawa on a fee-for-service basis outside of these hours when required; and Whereas the CBSA provides commercial goods customs clearance services on a 24 hour, 7 day per week or after hour basis at no cost at other airports in and around the Greater Toronto Area; and Whereas having to pay for after hour customs clearance service at the Oshawa Municipal Airport creates an unfair and inequitable business environment for Oshawa-based businesses; and Whereas providing these services on a limited fee-for-service basis creates a competitive disadvantage and undo financial hardship for Oshawa-based businesses; Therefore be it resolved that the City of Oshawa requests that the CBSA extend their customs clearance services to the Oshawa Municipal Airport at no cost outside of normal service hours; and that a copy of this resolution be forwarded to all Durham Members of Parliament.

5 In June we were required by CBSA to make some security upgrades to their facility at the airport Roll cage at main entrance Metal barrier on all non brick walls Preparation for a gun storage area This work was completed in August at a cost of approximately $15,000 (airport budget) CBSA upgraded security enhancements of their communication system CBSA upgraded security of their alarm system

6 In early November we were advised that CBSA would not be able to deal with our requests until the first of April 2011 due to the fact that they were going through a major reorganization and rationalization. In late November Mr. Talker approached the City about establishing an air freight business at the airport including the establishment of an air sufferance warehouse

7 DS Development Services Committee Meeting -February 7, 2011 Resolution -Air Sufferance Warehouse at Oshawa Municipal Airport Whereas the Oshawa Municipal Airport supports local manufacturing businesses with their just-in-time air freight needs as well as other critical needs; and Whereas the Canada Border Services Agency (CBSA) only provides commercial goods customs clearance services at the Oshawa Municipal Airport Monday to Friday during the day from 8:30 AM to 4:30 PM and not on weekends, and not in the evening, night or early morning; and Whereas all air freight destined for Oshawa and the Region of Durham must be flown to Hamilton or Toronto Pearson Airport to receive Customs clearance between 4:30 PM and 8:30 AM Monday to Friday and on weekends (e.g., outside of the limited hours Customs is available at the Oshawa Municipal Airport) and subsequently transported by truck to Oshawa and Durham; and Whereas the establishment of an air sufferance warehouse at the Oshawa Municipal Airport would allow air freight to be delivered directly to the Oshawa Municipal Airport outside of the above noted CBSA hours of operation and cleared electronically or held until the CBSA is available during normal working hours; and Whereas the private sector has indicated an interest in building a sufferance warehouse at the Oshawa Municipal Airport that would be of benefit to the local and regional economies; Therefore be it resolved that the City of Oshawa requests that the Federal Government and Canadian Border Service Agency approve the establishment of an air sufferance warehouse at the Oshawa Municipal Airport in order to facilitate the potential for local and regional economic development and jobs; and That a copy of this resolution be sent to all Durham MP's, the Minister of Transport, Infrastructure and Communities, the Minister of International Trade, the Minister of State (Federal Economic Development Agency for Southen Ontario), the Minister of State (Small Business and Tourism) and the Minister of Public Safety; and That staff and the Mayor's Office be authorized to coordinate direct approaches to Federal staff and elected officials in respect to this matter.

8 On February 16, Cindy and I met with senior staff of CBSA including the Regional Director to review the following Increasing the hours of operation (8:30am 4:30pm, Monday to Friday) 3 rd party extended hours special service agreement Providing service outside the hours of operation Tal-Air application for an air sufferance warehouse and the associated technical and operational requirements

9 Meeting action item CBSA committed to prepare a proposal for Oshawa on providing service outside the normal hours of operation.

10 March 1st 2011, GM Canada contacted CBSA to arrange for on call customs service at the Oshawa Airport outside the normal CBSA hours of operation in support of the Camaro Convertible and Buick Regal new product rollout. GM has historically made the arrangements with CBSA whenever circumstances required GM is told by CBSA that they no longer provide 3 rd party on call special services

11 GM immediately contacted the Mayors office and the Mayor contacted me through the City Managers office. In review it was decided that the Mayor would make the initial contact on this issue with the CBSA District Director Over the next few days I had extensive conversations and s with GM and the CBSA District Director By March 4 th we had made an interim arrangements to provide 24\7 CBSA coverage to GM on an on call basis until our negotiations with CBSA were complete

12 Where are we now? The interim agreement continues GM calls me on a 24\7 basis and I contact the CBSA District Director on 24\7 basis I met with senior staff at GM HQ early last week and reviewed in detail the logistics associated with their air freight needs I continue to monitor and review the issue with CBSA and GM I am coordinating a meeting between GM, City staff and senior CBSA staff to discuss the issue within the context of the broader services CBSA provides to Toronto and surrounding communities. (Tentatively set for week of April 4 th and includes the CBSA Regional Executive Director)