Marvin Feldman, a U.S. citizen, has submitted claims on behalf of CEMSA against Mexico under the ICSID Additional Facility Rules. The notice asserts that CEMSA, a registered foreign trading company and exporter of cigarettes from Mexico since 1990, was allegedly denied the benefits of a law that allowed certain tax refunds to exporters. Feldman claims expropriation under NAFTA Article 1110 based on Mexico's refusal (1) to implement a 1993 Mexican Supreme Court decision in CEMSA's favor ordering a refund of taxes paid, and (2) to refund taxes on cigarettes CEMSA exported in 1997. CEMSA claims approximately US$40 million in damages.
Prior to CEMSA's claims being submitted to arbitration, the United States and Mexico agreed pursuant to NAFTA Article 2103, which governs taxation measures, that one of CEMSA's claims, which was based on certain Mexican tax legislation, could not be pursued.
On December 16, 2002, the tribunal issued an award dismissing the investor's claim of expropriation but upholding the claim of a violation of the national treatment obligation.
For further information and documents concerning this claim, click here.