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

Procedural entryThis page is a short order in Vicentin S.A.I.C. v. United States. Read the opinion of the Court — 42 F.4th 1372
Court of Appeals for the Federal Circuit·Decided August 2, 2022·No. 21-1988·Published

Opinion

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, Washington , DC, argued for defendant-appellee United States.

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

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 calculation .

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 countervailing duties. LDC argues that correcting for the soybean subsidy in the export price creates an improper double remedy . But Commerce demonstrated with substantial

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

evidence that its constructed value calculation does not result 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 antidumping 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 Argentina at 3, 82 ITADOC 50391 (Oct. 19, 2017) (Preliminary Results Memo).

In an antidumping investigation, Commerce determines 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 purchaser 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) incentivizes 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 obligation by submitting to the EPA Renewable Identification Numbers (RINs) equaling the number of gallons in their 4 VICENTIN S.A.I.C. v. US

renewable volume obligations. Id. RINs are tradeable credits 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 adjustments , as defined in section 351.102(b), that are reasonably attributable to the subject merchandise.” Commerce considered the value of RINs generated by the importation of the subject biodiesel to be a “price adjustment” and so subtracted 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 explained 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 normal value. Issues and Decision Memorandum for the Final Affirmative Determination in the Antidumping Duty Investigation 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.

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 biodiesel , Commerce used the “daily spot prices” of separated RINs as reported by LDC and other parties. Id. at 38. Commerce 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 Commerce ’s decision to subtract the value of RINs from export price. Vicentin S.A.I.C. v. United States, 466 F. Supp. 3d 1227, 1233–37, 1239–42. (Ct. Int’l Trade 2020) (Vicentin II).

II

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