Philip Morris USA, Inc. v. Vilsack, No. 12-2498 (4th Cir. 2013)Annotate this Case
Phillip Morris sought review of the USDA's decision regarding the implementation of the Fair and Equitable Tobacco Reform Act (FETRA), 7 U.S.C. 518 et seq. Phillip Morris challenged the USDA's decision to use 2003 tax rates instead of current tax rates in calculating how these assessments were to be allocated across manufacturers of different tobacco products. The court concluded that USDA's decision was a permissible interpretation of FETRA; there was no clear indication in the text of the statute, or in Congress's prior or subsequent action, that Congress intended for USDA to take a different course; and there was similarly no basis for concluding that USDA filled that gap with an unreasonable interpretation. Accordingly, the court affirmed the district court's grant of USDA's motion for summary judgment.