Date: Wed, 31 Dec 1997 20:47:45 GMT Server: WebSitePro/1.1g (S/N WPO-2024) Accept-ranges: bytes Content-type: text/html Last-modified: Fri, 06 Jun 1997 16:17:30 GMT Content-length: 2142 Important Alert
June 5, 1997

IMPORTANT ALERT

To: Clients of the Firm and Other Interested Parties
Regarding: GOOD NEWS: Court of Appeals Affirms CIT Holds Harbor Maintenance Tax is Unconstitutional

We are writing to share the good news that the Court of Appeals for the Federal Circuit ("CAFC") has affirmed the decision of the U.S. Court of International Trade which held that the collection of Harbor Maintenance Taxes ("HMT") on Exports is unconstitutional.

In the 4-1 decision dated June 3, 1997, the Court further held that the payment of the HMT to U.S. Customs involved no protestable decision by Customs. Accordingly, refunds are to be sought through the filing of a summons and complaint in the CIT seeking the return of HMT payments made during the two-year period immediately preceding the filing of the summons.

The decision of the CAFC is not yet final and an additional appeal may be taken to the Supreme Court. The Government may seek a rehearing of the case by the CAFC within 14 days of the CAFC decision. It may also petition the U.S. Supreme Court for a Writ of Certiorari within 90 days of the entry of the CAFC's judgment, so that the absolutely final decision may not occur before early 1998, if the writ is granted .

In the meantime, the Government is expected to request a continued stay of the CAFC's decision, which means that the collection of the HMT will continue. It is important that summonses and complaints continue to be filed in the CIT on behalf of exporters to be sure that the two year refund window is protected.

If you have any questions, please call us.

Sincerely,

SERKO & SIMON LLP.