Vicentin S.A.I.C. v. United States

CourtCourt of Appeals for the Federal Circuit
DecidedAugust 2, 2022
Docket21-1988
StatusPublished

This text of Vicentin S.A.I.C. v. United States (Vicentin S.A.I.C. v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Vicentin S.A.I.C. v. United States, (Fed. Cir. 2022).

Opinion

Case: 21-1988 Document: 60 Page: 1 Filed: 08/02/2022

United States Court of Appeals for the Federal Circuit ______________________

VICENTIN S.A.I.C., OLEAGINOSA MORENO HERMANOS S.A., MOLINOS AGRO S.A., Plaintiffs

LDC ARGENTINA S.A., Plaintiff-Appellant

v.

UNITED STATES, NATIONAL BIODIESEL BOARD FAIR TRADE COALITION, Defendants-Appellees ______________________

2021-1988 ______________________

Appeal from the United States Court of International Trade in Nos. 1:18-cv-00111-CRK, 1:18-cv-00119-CRK, Judge Claire R. Kelly. ______________________

Decided: August 2, 2022 ______________________

GREGORY J. SPAK, White & Case LLP, Washington, DC, argued for plaintiff-appellant. Also represented by JESSICA LYND.

JOSHUA E. KURLAND, Commercial Litigation Branch, Civil Division, United States Department of Justice, Wash- ington, DC, argued for defendant-appellee United States. Case: 21-1988 Document: 60 Page: 2 Filed: 08/02/2022

Also represented by BRIAN M. BOYNTON, PATRICIA M. MCCARTHY, LOREN MISHA PREHEIM.

MYLES SAMUEL GETLAN, Cassidy Levy Kent USA LLP, Washington, DC, argued for defendant-appellee National Biodiesel Board Fair Trade Coalition. Also represented by THOMAS M. BELINE, CHASE DUNN, JACK ALAN LEVY, JAMES EDWARD RANSDELL, IV. ______________________

Before MOORE, Chief Judge, TARANTO and HUGHES, Circuit Judges. HUGHES, Circuit Judge. This is an appeal from an antidumping investigation of biodiesel from Argentina. Appellant LDC Argentina S.A. challenges two calculations Commerce used to determine antidumping duties: export price and constructed value of the subject biodiesel. Certain renewable fuels, such as the biodiesel at issue here, are entitled to tradeable tax credits. In calculating export price, Commerce subtracted the value of these tradeable credits, calling the credits “price adjustments” under 19 C.F.R. § 351.401(c). Because the credits fall within the regulatory definition of a “price adjustment” and substantial evidence supports the value Commerce used for the credits, we affirm Commerce’s export price calcula- tion. Calculating constructed normal value of biodiesel in Argentina, Commerce used an international market price for soybeans, the primary input into biodiesel, because the price of soybeans in Argentina is subsidized. Commerce also addressed the same soybean subsidy through counter- vailing duties. LDC argues that correcting for the soybean subsidy in the export price creates an improper double rem- edy. But Commerce demonstrated with substantial Case: 21-1988 Document: 60 Page: 3 Filed: 08/02/2022

VICENTIN S.A.I.C. v. US 3

evidence that its constructed value calculation does not re- sult in a double remedy. We affirm the constructed value. BACKGROUND The National Biodiesel Board Fair Trade Coalition and its members submitted an antidumping petition alleging that biodiesel from Argentina was sold at less-than-fair value into the United States. Commerce initiated an anti- dumping investigation and selected Vicentin S.A.I.C. and LDC Argentina S.A. as mandatory respondents. Decision Memorandum for the Preliminary Determination in the Less-Than-Fair-Value Investigation of Biodiesel from Ar- gentina at 3, 82 ITADOC 50391 (Oct. 19, 2017) (Prelimi- nary Results Memo). In an antidumping investigation, Commerce deter- mines whether the subject merchandise was sold at less than fair value by subtracting the “export price,” the price at which the subject merchandise was first sold to a pur- chaser in the United States, from the “normal value,” which is the price of identical or similar merchandise sold outside the United States. 19 U.S.C. §§ 1677(35), 1677a(a), 1677b(a). The difference between the two is the dumping margin, and Commerce imposes antidumping duties in an amount equal to the dumping margin. 19 U.S.C. §§ 1673, 1677(35)(A). In this appeal, LDC challenges Commerce’s determination of both the export price and the normal value. I The U.S. Environmental Protection Agency (EPA) in- centivizes the use of renewable fuels by requiring certain entities, including United States gasoline and diesel fuel producers and importers, to meet an annual “renewable volume obligation.” Preliminary Results Memo at 28–29. Entities show compliance with their renewable volume ob- ligation by submitting to the EPA Renewable Identification Numbers (RINs) equaling the number of gallons in their Case: 21-1988 Document: 60 Page: 4 Filed: 08/02/2022

renewable volume obligations. Id. RINs are tradeable cred- its created by the importation and domestic production of renewable fuels. RINs are “attached” to biodiesel at the time of importation, and importers can later sell them as “detached” or “separated” RINs. When calculating export price, 19 C.F.R. § 351.401(c) directs Commerce to “use a price that is net of price adjust- ments, as defined in section 351.102(b), that are reasonably attributable to the subject merchandise.” Commerce con- sidered the value of RINs generated by the importation of the subject biodiesel to be a “price adjustment” and so sub- tracted the value of the RINs from the export price. Final Results of Redetermination Pursuant to Ct. Remand at 1– 2, 14–15 (First Remand Results), Vicentin S.A.I.C. v. United States, 404 F. Supp. 3d 1323 (Ct. Int’l Trade 2019) (No. 18-00111) (Vicentin I), ECF No. 79-1. 1 Commerce ex- plained that the value of RINs is a “price adjustment” as defined in 19 C.F.R. § 351.102(b)(38) because “the invoice price does not reflect the true ‘starting price’ of biodiesel or ‘price at which the subject merchandise is first sold’ because it includes a RIN value.” Id. at 10. In support of its finding that the invoice price includes the value of RINs, Commerce cited a statement by LDC’s U.S. affiliate that “the price of [biodiesel] is comprised of the cost of biodiesel . . . plus a RIN value” and that “buyers are cognizant of the value of RINs associated with a sale and likely factor [the value of RINs] in when negotiating a price.” Id. at 12. Commerce also relied on an ITC report

1 At first, Commerce added the value of RINs to nor- mal value. Issues and Decision Memorandum for the Final Affirmative Determination in the Antidumping Duty In- vestigation of Biodiesel from Argentina at 12, 83 ITADOC 8837 (Feb. 20, 2018) (Final Results Memo). On remand, it adjusted the export price instead. First Remand Results at 2. Case: 21-1988 Document: 60 Page: 5 Filed: 08/02/2022

VICENTIN S.A.I.C. v. US 5

showing that biodiesel with RINs attached costs much more than biodiesel without RINs. Id. at 11–12. So the RINs value “must be accounted for to arrive at the net price actually paid by the customer for the merchandise under investigation.” Id. at 11. For the value of RINs attached to the imported bio- diesel, Commerce used the “daily spot prices” of separated RINs as reported by LDC and other parties. Id. at 38. Com- merce relied on the statements of exporters in related ITC proceedings that “if a given RIN has a value of $0.75, it would add $0.75 to a gallon [of] biodiesel . . . [and] industry participants assume that a gallon of RINless [biodiesel] should be $0.75 per gallon less expensive than a gallon of [biodiesel] with . . . RINs attached.” Id. at 13–14. The Court of International Trade sustained Com- merce’s decision to subtract the value of RINs from export price. Vicentin S.A.I.C. v.

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