Statement of the Hon. Charles A. Gonzalez, a Representative in Congress from the State of Texas

Testimony Before the Subcommittee on Trade
of the House Committee on Ways and Means

Hearing on Trade Agency Budget Authorizations and Other Customs Issues

July 17, 2001

The City of San Antonio, Texas is located approximately 150 miles from the U.S.-Mexico border. Historically, the city has had strong cultural and business ties with Mexico. Since NAFTA was approved in 1993, these ties have only become stronger as we have seen the expansion of trade between the two countries foster economic development in our city. For example, the North American Development Bank, or NADBank, created under NAFTA, is located in downtown San Antonio. In addition, several of San Antonio's large corporations have business interests in Mexico and the City of San Antonio itself has instituted the CASA Program. The CASA Program complements state and federal export assistance programs, focusing on small and medium sized companies interested in conducting business in Mexico. Letters and an article from the San Antonio Express-News in support of this airport designation are attached for your review.

Moreover, in conjunction with the Free Trade Alliance of San Antonio, the City of San Antonio is working to develop the city as a competitive International Trade Center in the Americas to attract foreign investment and to facilitate improvements to the trade infrastructure that will reduce barriers to trade.

One barrier to our city's ability to attract international companies and their investment in San Antonio is that until last year, businesses that fly private aircraft from Mexico had to make an interim stop to clear customs before arriving at their final destination of San Antonio. Making this interim stop can cost the private aircraft owner $1,500 to $2,000 and a loss of 1 ½ to 2 hours in time. However, in the last session of Congress, we included a provision in the Miscellaneous Trade and Technical Corrections Act of 2000 to designate the San Antonio International Airport as an international port of entry. This provision allows private aircraft arriving from foreign destinations to fly directly into the San Antonio airport for customs processing.

However, the port of entry designation is a conditional provision lasting only two years and expiring in 2002. I would like to make this designation permanent and am here today to ask that the Committee adopt language in the Customs Reauthorization bill making the San Antonio International Airport's designation as an international port of entry permanent.

Private aircraft have been arriving at the San Antonio airport from Mexico for several months now and the program has been a resounding success. The travelers that have been able to fly straight into San Antonio, without an interim stop, have been especially pleased with the ease in which they can enter the U.S. to conduct their business. On a recent tour of the customs processing facility, I had the privilege of meeting and discussing the change with Mr. Gurdit Dhillon, the U.S. Customs Service's Director of Field Operations for South Texas. I was impressed by his enthusiasm and ideas for accommodating private aircraft landing in San Antonio and I am certain that under his guidance, the final, permanent implementation will be a success. I have also been recently informed that the airport is making enhancements by installing monitors and cameras in the customs and immigration area to improve both Customs' and INS's ability to process incoming aircraft.

The airport designation is an extremely important component of economic development for the City of San Antonio. By facilitating customs processing for private aircraft, the ability for companies on both sides of the U.S.-Mexico border to conduct business is enhanced by saving valuable time and money. The Customs Service's ability to process aircraft has already proven to be a success and will continue should the designation as a port of entry be made permanent.

I thank you again for this opportunity to testify before you and the Committee, and I look forward to working with you on policy that promotes trade and investment in the City of San Antonio.

[The attachments are being retained in the Committee files.]