Date: Wed, 31 Dec 1997 20:47:36 GMT Server: WebSitePro/1.1g (S/N WPO-2024) Accept-ranges: bytes Content-type: text/html Last-modified: Wed, 19 Feb 1997 15:34:28 GMT Content-length: 2594
February/March 1997
To: Clients of the Firm and Other Interested PartiesMany exporters know about the Harbor Maintenance Tax ("HMT"), and the efforts to have it eliminated, but they may not know that they must take action to protect their rights to refunds. The HMT, which exporters are required by law to pay as a direct tax on exports on a quarterly basis, within 31 days of the end of each calendar quarter in which the ocean export shipments have been made, was held to be unconstitutional by the U.S. Court of International Trade ("CIT") in October 1995. The U.S. government appealed the decision, and was permitted to continue to collect the HMT in the interim, while the appeal was pending. IMPORTANT ALERT
EXPORT HARBOR MAINTENANCE TAX REFUNDS:
A ONCE IN A LIFETIME OPPORTUNITY--BUT
REFUNDS ARE NOT AUTOMATIC
SUITS FOR REFUNDS MUST BE FILEDOn February 7, 1997, the appeal was argued before the Court of Appeals for the Federal Circuit in Washington, D.C. Exporters are encouraged by the arguments presented and the reactions of the Court that day, as well as by the decision of the U.S. Supreme Court in a recent case which held that an indirect tax on exports, in the form of a tax on insurance on exported goods was unconstitutional.
If, as is now expected, after all the appeals are exhausted, the HMT is held to be unconstitutional, exporters stand to get refunds, plus interest, on the HMT payments they have made. However:
***Refunds will not be automatic. The CIT has held that Exporters must file suit to recover!***
The CIT has held that individual suits for recovery of export HMT payments must be filed and will be heard for payments made within two years of the commencement of the refund actions. That means that refunds will not be automatic, and the services of an attorney will be required to file a summons and complaint in the CIT to protect the rights of corporations to HMT refunds. We would be happy to provide you with answers to any questions you might have in this regard or on any other matter within the area of our concentration. Please feel free to call us.