Full opinion text
OPINION TSOUCALAS, Senior Judge. Plaintiffs and defendant-intervenors, NTN Bearing Corporation of America, NTN Corporation, American NTN Bearing Manufacturing Corporation, NTN Driveshaft, Inc. and NTN-Bower Corporation (collectively “NTN”), NSK Ltd. and NSK Corporation (collectively “NSK”), and Koyo Seiko Co., Ltd. and Koyo Corporation of U.S.A. (collectively “Koyo”), move pursuant to USCIT R. 56.2 for judgment upon the agency record challenging various aspects of the Department of Commerce, International Trade Administration’s (“Commerce”) final determination, entitled Antifriction Bearings (Other Than Tapered Roller Bearings) and Parts Thereof From France, Germany, Italy, Japan, Romania, Singapore, Sweden and the United Kingdom; Final Results of Antidumping Duty Administrative Reviews (‘Final Results”), 62 Fed.Reg. 54,-043 (Oct. 17, 1997), as amended, Antifriction Bearings (Other Than Tapered Roller Bearings) and Parts Thereof From France, Germany, Italy, Japan, Romania, Singaporef] Sweden and the United Kingdom; Amended Final Results of Anti-dumping Duty Administrative Reviews (“Amended Final Results”), 62 Fed.Reg. 61,963 (Nov. 20,1997). Defendant-interve-nor and plaintiff, The Torrington Company (“Torrington”), also moves pursuant to USCIT R. 56.2 for judgment upon the agency record challenging certain determinations of Commerce’s Final Results. NTN, NSK and Koyo argue that Commerce erred in conducting a duty absorption inquiry under 19 U.S.C. § 1675(a)(4) (1994) for this seventh administrative review of a 1989 antidumping duty order. NTN also contends that Commerce erred in: (1) recalculating NTN’s United States credit expenses on a transaction-specific rather than on a customer-specific basis for constructed export price (“CEP”) sales; (2) denying a price-based, level of trade (“LOT” or “LOTs” for “levels of trade”) adjustment to normal value (“NY”) under 19 U.S.C. § 1677b(a)(7)(A) for its CEP sales; (3) refusing to accept NTN’s reported home market and United States indirect selling expenses based on different trade levels; (4) refusing to calculate CEP profit on a LOT-specific basis; (5) denying a downward adjustment to NTN’s reported United States indirect selling expenses for imputed interests incurred in financing cash deposits for antidumping duties; (6) refusing to exclude NTN’s reported zero-price sample sales from its United States sales database; (7) failing to adjust NTN’s cost of production (“COP”) and constructed value (“CV”) data on a model-specific basis; (8) including NTN’s sales with abnormally high profits and certain home market sample sales from the NV calculation; and (9) excluding certain NTN home market sales to affiliated parties in the NV calculation. NTN, however, claims that Commerce correctly accepted its reported home market discounts as direct price adjustments to NV. Further, NSK asserts that Commerce erred in: (1) deducting NSK’s United States repacking expenses as direct selling expenses pursuant to 19 U.S.C. § 1677a(d)(l)(B); (2) calculating profit for CV under 19 U.S.C. §§ 1677b(e)(2)(A), 1677(16); and (3) denying a partial, price-based LOT adjustment to NV under § 1677b(a)(7)(A) for CEP sales when matched to its after-market sales in its home market. Koyo also claims that Commerce properly accepted Koyo’s reported home market billing adjustments as direct price adjustments to NV. Commerce responds that it properly: (1) construed § 1675(a)(4) and (c) as authorizing it to conduct a duty absorption inquiry for the subject review; (2) treated NSK’s United States repacking expenses as direct selling expenses under § 1677a(d)(l)(B); (3) calculated CV profit; (4) recalculated NTN’s United States credit expenses on a transaction-specific basis for CEP sales; (5) denied a LOT adjustment for NTN’s CEP sales; (6) interpreted § 1677b(a)(7) as not providing a partial LOT adjustment for NSK’s CEP sales; (7) recalculated NTN’s home market and United States indirect selling expenses without regard to LOT, however, since it did not state in the Final Results its reasons for recalculating NTN’s home market indirect selling expenses, requests that the issue be remanded so it may articulate its reasons for such recalculation; (8) determined NTN’s CEP profit without regard to LOT; (9) denied an adjustment to NTN’s reported indirect selling expenses for imputed interests allegedly incurred in financing antidumping duty cash deposits; (10) included NTN’s sample sales in its United States sales database; (11) adjusted NTN’s COP and CV data; (12) included NTN’s sales with abnormally high profits and home market sample sales in the NV calculation; (13) disregarded NTN’s affiliated party sales from the NV calculation; and (14) treated Koyo’s reported home market billing adjustments and NTN’s reported home market discounts as direct price adjustments toNV. Although Torrington generally agrees with Commerce, it maintains that Commerce erred in accepting Koyo’s home market billing adjustments and NTN’s alleged home market discounts as direct price adjustments in calculating NV. The Court will address each of these arguments in turn. BACKGROUND On May 15, 1989, Commerce published antidumping duty orders on antifriction bearings (other than tapered roller bearings) and parts thereof (“AFBs”) imported from several countries, including Japan. See Antidumping Duty Orders: Ball Bearings, Cylindrical Roller Bearings, and Spherical Plain Bearings, and Parts Thereof From Japan, 54 Fed.Reg. 20,904. This case concerns the seventh administrative review of the antidumping duty order on AFBs from Japan for the period of review (“POR”) covering May 1, 1995 through April 30, 1996. In accordance with 19 C.F.R. § 353.22(c) (1995), Commerce initiated the seventh review on June 20, 1996. See Antifriction Bearings (Other Than Tapered Roller Bearings) and Paris Thereof From France, Germany, Italy, Japan, Romania, Singapore, Sweden, Thailand, and the United Kingdom; Initiation of Antidumping Duty Administrative Reviews and Notice of Request for Revocation of an Order, 61 FecLReg. 31,-506 (June 20, 1996). On June 10, 1997, Commerce published the preliminary results of the seventh review. See Antifriction Bearings (Other Than Tapered Roller Bearings) and Parts Thereof From France, Germany, Italy, Japan, Romania, Singapore, Sweden and the United Kingdom; Preliminary Results of Antidump-ing Duty Administrative Reviews and Partial Termination of Administrative Reviews (“Preliminary Results”), 62 Fed. Reg. 31,566. Commerce published the Final Results on October 17, 1997, see 62 Fed.Reg. at 54,043, and the Amended Final Results on November 20, 1997, see 62 Fed.Reg. at 61,963. Oral argument was held on March 8,1999. JURISDICTION The Court has jurisdiction over this matter pursuant to 19 U.S.C. § 1516a(a) (1994) and 28 U.S.C. § 1581(c) (1994). STANDARD OF REVIEW In reviewing a challenge to Commerce’s final determination in an anti-dumping administrative review, the Court will uphold Commerce’s determination unless it is “unsupported by substantial evidence on the record, or otherwise not in accordance with law.” 19 U.S.C. § 1516a(b)(l)(B)(i) (1994). I. Substantial Evidence Test “ ‘[Substantial evidence is more than a mere scintilla. It means such relevant evidence as a reasonable mind might accept as adequate to support a conclusion.’ ” Universal Camera Corp. v. NLRB, 340 U.S. 474, 477, 71 S.Ct. 456, 95 L.Ed. 456 (1951) (quoting Consolidated Edison Co. v. NLRB, 305 U.S. 197, 229, 59 S.Ct. 206, 83 L.Ed. 126 (1938)). In reviewing the substantiality of evidence, the Court must take into account the entire record, including “whatever in the record fairly detracts from its weight.” Universal Camera, 340 U.S. at 488, 71 S.Ct. 456. II. Chevron Two-Step Analysis To determine whether Commerce’s interpretation and application of the anti-dumping statute is “in accordance with law,” the Court must undertake the two-step analysis prescribed by Chevron U.S.A. Inc. v. Natural Resources Defense Council, Inc., 467 U.S. 837, 104 S.Ct. 2778, 81 L.Ed.2d 694 (1984). Under the first step, the Court reviews Commerce’s construction of a statutory provision to determine whether “Congress has directly spoken to the precise question at issue.” Id. at 842, 104 S.Ct. 2778. “To ascertain whether Congress had an intention on the precise question at issue, [the Court] employ[s] the ‘traditional tools of statutory construction.’ ” Timex V.I., Inc. v. United States, 157 F.3d 879, 882 (Fed.Cir.1998) (citing Chevron, 467 U.S. at 843 n. 9, 104 S.Ct. 2778). “The first and foremost ‘tool’ to be used is the statute’s text, giving it its plain meaning. Because a statute’s text is Congress’s final expression of its intent, if the text answers the question, that is the end of the matter.” Id. (citations omitted). “Beyond the statute’s text, the tools of statutory construction “include the statute’s structure, canons of statutory construction, and legislative history.” ” Id. (citations omitted); but see Floral Trade Council v. United States, 23 CIT -, -, 41 F.Supp.2d 319, 323 n. 6 (1999) (noting that “[n]ot all rules of statutory construction rise to the level of a canon”) (citation omitted). If, after employing the first prong of Chevron, the Court determines that the statute is silent or ambiguous with respect to the specific issue, the question for the Court becomes whether Commerce’s construction of the statute is permissible. Chevron, 467 U.S. at 843, 104 S.Ct. 2778. Essentially, this is an inquiry into the reasonableness of Commerce’s interpretation. See Fujitsu Gen. Ltd. v. United States, 88 F.3d 1034, 1038 (Fed.Cir.1996). Provided that Commerce has acted reasonably, the Court may not substitute its judgment for the agency’s. See IPSCO, Inc. v. United States, 965 F.2d 1056, 1061 (Fed.Cir.1992); see also Koyo Seiko Co. v. United States, 36 F.3d 1565, 1570 (Fed.Cir.1994) (noting that “a court must defer to an agency’s reasonable interpretation of a statute even if the court might have preferred another”). “In determining whether Commerce’s interpretation is reasonable, the Court considers, among other factors, the express terms of the provisions at issue, the objectives of those provisions and the objectives of the antidumping scheme as a whole.” Mitsubishi Heavy Indus., Inc. v. United States, 22 CIT -, -, 15 F.Supp.2d 807, 813 (1998). DISCUSSION 1. Commerce’s Duty Absorption Inquiry A. Background Title 19, United States Code, § 1675(a)(4) provides that during an administrative review initiated two or four years after the “publication” of an anti-dumping duty order, Commerce, if requested by a domestic interested party, “shall determine whether antidumping duties have been absorbed by a foreign producer or exporter subject to the order if the subject merchandise is sold in the United States through an importer who is affiliated with such foreign producer or exporter.” Section 1675(a)(4) further provides that Commerce shall notify the International Trade Commission (“ITC”) of its findings regarding such duty absorption for the ITC to consider in conducting a five-year (“sunset”) review under 19 U.S.C. § 1675(c), and the ITC will take such findings into account in determining whether material injury is likely to continue or recur if an order were revoked under § 1675(c). See 19 U.S.C. § 1675a(a)(l)(D). On May 31, 1996 and July 9, 1996, Tor-rington requested that Commerce conduct a duty absorption inquiry pursuant to § 1675(a)(4) with respect to various respondents, including Koyo, NTN and NSK, to determine whether antidumping duties had been absorbed during the POR. See Final Results, 62 Fed.Reg. at 54,075. In the Final Results, Commerce found that duty absorption had occurred for the POR. See id. at 54,044. In asserting authority to conduct a duty absorption inquiry under § 1675(a)(4), Commerce first explained that for “transition orders,” as defined in 19 U.S.C. § 1675(c)(6)(C) (1994) (that is, antidumping duty orders, inter alia, deemed issued on January 1, 1995), regulation 19 C.F.R. § 351.2130X2) provides that Commerce “will make a duty-absorption determination, if requested, for any administrative review initiated in 1996 or 1998.” See id. at 54,074 (citing 19 CFR Part 351 et al., Antidumping Duties; Countervailing Duties; Final [R]ule, 62 Fed.Reg. 27,296, 27,394 (May 19, 1997)). Commerce also noted that although the regulation did not bind it for this seventh AFB review, it constitutes a public statement of how Commerce construes § 1675(a)(4). See id. Commerce concluded that (1) because the antidump-ing duty order on the AFBs in this case has been in effect since 1989, the order is a transition order pursuant to § 1675(c)(6)(C), and (2) since this review was initiated in 1996 and a request was made, Commerce had the authority to make a duty absorption inquiry for the seventh POR. See id. at 54,075. B. Contentions of the Parties Koyo, NSK and NTN argue that: (1) Commerce lacked authority under § 1675(a)(4) to conduct a duty absorption inquiry for the seventh administrative review of the 1989 antidumping duty order; and (2) even if Commerce possessed the authority to conduct such an inquiry, Commerce’s methodology for determining duty absorption was contrary to law and, accordingly, the case should be remanded to Commerce to reconsider its methodology. See Koyo’s Mem. Supp. Mot. J. Agency R. at 5-12; NSK’s Mem. Supp. Mot. J. Agency R. at 30-34; NTN’s Mem. Supp. Mot. J. Agency R. at 28-37. Commerce argues it properly construed subsections (a) and (c) of § 1675 as authorizing it to make duty absorption inquiries for antidumping duty orders that were issued and published prior to January 1, 1995. See Def.’s Mem. in Partial Opp’n to Pis.’ Mots. J. Agency R. at 12-20. Commerce also asserts that it devised and applied a reasonable methodology for determining duty absorption. See id. at 20-28. Torrington generally agrees with Commerce’s contentions. See Torrington’s Resp. to Pis.’ Mots. J. Agency R. at 11-16. C. Analysis In SKF USA Inc. v. United States, 24 CIT -, 94 F.Supp.2d 1351 (CIT 2000), this Court determined that Commerce lacked statutory authority under 19 U.S.C. § 1675(a)(4) to conduct a duty absorption inquiry for antidumping duty orders issued prior to the January 1, 1995 effective date of the URAA. SKF USA 24 CIT at -, 94 F.Supp.2d at 1356-59 (citations omitted). The Court noted that Congress expressly prescribed in the URAA that § 1675(a)(4) “must be applied prospectively on or after January 1, 1995 for 19 U.S.C. § 1675 reviews.” Id. at 1358-59 (citing § 291 of the URAA). Because the duty absorption inquiry, the methodology and the parties’ arguments at issue in this case are practically identical to those presented in SKF USA, the Court adheres to its reasoning in SKF USA. The Court, therefore, finds that Commerce did not have the statutory authority under § 1675(a)(4) to undertake a duty absorption inquiry for the applicable pre-URAA antidumping duty order in dispute here. II. Commerce’s Treatment of NSK’s United States Repacking Expenses as Direct Selling Expenses A. Background An antidumping duty is imposed upon imported merchandise when (1) Commerce determines such merchandise is being dumped, that is, sold or likely to be sold in the United States at less than fair value (“LTFV”), and (2) the ITC determines that an industry in the United States is materially injured or is threatened with material injury. See 19 U.S.C. § 1673 (1994); 19 U.S.C. § 1677(34) (1994). To determine in an investigation or an administrative review whether there is dumping, Commerce compares the price of the imported merchandise in the United States to the NV for the same or similar merchandise in the home market. See 19 U.S.C. § 1677b (1994). The price in the United States is calculated using either an export price (“EP”) or CEP. See 19 U.S.C. § 1677a(a), (b) (1994). The Statement of Administrative Action (“SAA”) accompanying the URAA clarifies that Commerce will classify the price of a United States sales transaction as an EP if “the first sale to an unaffiliated purchaser in the United States, or to an unaffiliated purchaser for export to the United States, is made by the producer or exporter in the home market prior to the date of importation.” H.R. Doc. No. 103-316, at 822 (1994). On the other hand, “[i]f, before or after the time of importation, the first sale to an unaffiliated person is made by (or for the account of) the producer or exporter or by a seller in the United States who is affiliated with the producer or exporter,” then Commerce will classify the price of a United States sales transaction as a CEP. See id.; 19 U.S.C. § 1677a(b); Koenig & Bauer-Albert AG v. United States, 22 CIT -, -, 15 F.Supp.2d 834, 850-52 (1998) (discussing when to apply EP or CEP methodology). Commerce then makes adjustments to the starting price used to establish EP or CEP by adding: (1) packing costs for shipment to the United States, if not already included in the price; (2) import duties which have been rebated or not collected due to exportation of the subject merchandise to the United States; and (3) certain countervailing duties if applicable. See 19 U.S.C. § 1677a(c)(l)(A)-(C); SAA at 823. Also, for both EP and CEP, Commerce will reduce the starting price by the amount, if any, included in such price that is attributable to: “(1) transportation and other expenses, including warehouse expenses, incurred in bringing the subject merchandise from the original place of shipment in the exporting country to the place of delivery in the United States; and (2) ... export taxes or other charges imposed by the exporting country.” Id.; see 19 U.S.C. § 1677a(c)(2)(A), (B). Moreover, Commerce must reduce the price used to establish CEP by any of the following amounts associated with economic activities occurring in the United States: (1) commissions paid in “selling the subject merchandise in the United States”; (2) direct selling expenses, that is, “expenses that result from, and bear a direct relationship to, the sale, such as credit expenses, guarantees and warranties”; (3) “any selling expenses that the seller pays on behalf of the purchaser” (assumptions); (4) indirect selling expenses, that is, any selling expenses not deducted under any of the first three categories of deductions; (5) certain expenses resulting from further manufacture or assembly (including additional material and labor) performed on the merchandise after its importation into the United States; and (6) profit allocated to the expenses described in categories (1) through (5). 19 U.S.C. § 1677a(d)(l)-(3); see SAA at 823-24. In this case, NSK delivered the subject merchandise to unaffiliated customers in the United States from warehouses owned and operated by NSK. See NSK’s Resp. to Sect. C Questionnaire, Investigation No. A-588-804, Admin. Rev. 5/1/95-4/80/96, at 38 (Sept. 10, 1996) (Q. 47.0, “U.S. Repacking Cost”). NSK normally ships merchandise in its original containers from its United States warehouse, however, in some instances, it repacked the merchandise to accommodate orders for smaller distributors. See id. For the price of the subject merchandise in the United States, Commerce used EP or CEP, as appropriate, and calculated such prices “based on the packed [free on board], [cost, insurance, and freight], or delivered price to unaffiliated purchasers in, or for exportation to, the United States.” Preliminary Results, 62 Fed. Reg. at 31,569. Commerce also made deductions for: (1) discounts and rebates; and (2) any movement expenses in accordance with 19 U.S.C. § 1677a(c)(2)(A). See id. In calculating CEP, Commerce made additional adjustments in accordance with § 1677a(d)(1)-(3) by: (1) “deducting selling expenses associated with economic activities occurring in the United States, including commissions, direct selling expenses, indirect selling expenses, and repacking expenses in the United States”; (2) “deducting] the cost of any further manufacturing and assembly[,]” where appropriate; and (3) “adjusting] for profit allocated to these expenses.” Id. In particular, in adjusting CEP, Commerce deducted NSK’s United States repacking expenses as direct selling expenses under § 1677a(d)(1)(B), rather than as moving expenses under § 1677a(c)(2)(A), because it determined that repacking “was performed on individual products in order to sell the merchandise to the unaffiliated customer in the United States. Presumably, if a respondent could have sold the merchandise without repacking it, the respondent would have done so. Thus, it is an expense associated with selling the merchandise.” Final Results, 62 Fed.Reg. at 54,067. B. Contentions of the Parties NSK argues, as it did in the Final Results, see id., that Commerce erred in deducting NSK’s United States repacking expenses as direct selling expenses pursuant to § 1677a(d)(1)(B), see NSK’s Mem. Supp. Mot. J. Agency R. at 11, 13. According to NSK, the United States repacking constitutes an expense incident to bringing the subject merchandise from the original place of shipment in Japan to the place of delivery in the United States and, therefore, should have been (1) classified and deducted as expense under § 1677a(c)(2)(A), and (2) excluded from the pool of selling expenses Commerce uses to determine CEP profit. See id.; 19 U.S.C. § 1677a(d)(3), (f)(2)(B) (calculating CEP profit based on the profit allocated to expenses described in § 1677a(d)(l)-(2)). Specifically, NSK claims that § 1677a(c)(2)(A) is not limited to moving expenses, but includes expenses required for transporting the goods from ’NSK’s United States warehouses into the hands of carriers for delivery to United States customers. See NSK’s Reply Mem. Supp. Mot. J. Agency R. at 2. NSK asserts that the cost of United States repacking is such a § 1677a(e)(2)(A) expense because the goods cannot be transported unless NSK first breaks open the transpacific shipping packages, selects the specific, items ordered and then repacks those items for shipment to the customer’s United States location. See id. at 3-4. NSK clarifies that this result does not change simply because the United States repacking may be directly related to particular sales. See id. at 3. NSK notes that § 1677a(c)(2)(A) does not preclude the deduction of expenses directly related to a particular sale; rather, the statute includes “any additional costs, charges, or expenses,” either direct or indirect, incident to bringing the subject merchandise from Japan to the United States customer. See id. (quoting § 1677a(c)(2)(A)). NSK contends, for instance, United States inland freight from its United States warehouse to United States unaffiliated customers, even though directly related to particular sales to such customers, nevertheless constitutes a § 1677a(c)(2)(A) expense. See id. Thus, NSK asserts that United States repacking expenses should similarly be treated as § 1677a(c)(2)(A) expenses even though it may be directly related to particular sales. See id. Finally, NSK claims that United States repacking does not otherwise meet the definitional criteria of § 1677a(d)(l)(B) direct selling expenses such as credit expenses, guarantees and warranties. See id. NSK notes that such expenses assist in selling products, but do not involve transporting goods from Japan to the United States unaffiliated customer as do United States repacking expenses. See id.; NSK’s Mem. Supp. Mot. J. Agency R. at 12. Although agreeing with NSK’s contention that United States inland freight (warehouse to customer) charges are clearly transportation expenses and thus deductible pursuant to § 1677a(c)(2)(A), Commerce responds, as it did in the Final Results, that NSK’s United States repacking expenses bear no relationship to “moving the merchandise from one point to another,” as established by the fact that “the merchandise was moved from the exporting country to the United States prior to repacking.” Def.’s Mem. in Partial Opp’n to Pis.’ Mots. J. Agency R. at 29-30 (quoting Final Results, 62 Fed.Reg. at 54,067). Commerce also contends that § 1677a(d)(l)(B) does not limit direct selling expenses deducted from CEP to credit expenses, guarantees or warranties; rather, the statute reduces CEP by the amount of any selling expenses which result, and bear a direct relationship to, selling expenses in the United States. Id. at 30. Since NSK’s repacking was “performed on individual products in order to sell the merchandise to the unaffiliated customer in the United States,” Commerce asserts that it properly treated the repacking expenses as direct selling expenses pursuant to § 1677a(d)(1)(B). Id. (quoting Final Results, 62 Fed.Reg. at 54,067). Torrington generally agrees with Commerce’s arguments. See Torrington’s Resp. to Pis'. Mots. J. Agency R. at 8, 40-41. Torrington notes, as it did in the Final Results, that NSK reported that it normally does not require repacking for its United States sales, but “some repacking ‘occurred to accommodate smaller distributor orders.’” Id. at 41 (quoting NSK’s Resp. to Sect. C Questionnaire, Investigation No. A-588-804, Admin. Rev. 5/1/95-4/30/96, at 38 (Sept. 10, 1996) (Q. 47.0, “U.S. Repacking Cost”)). Torrington asserts that since NSK’s response is consistent with Commerce’s treatment of NSK’s repacking expenses as selling rather than movement expenses, Commerce properly included NSK’s repacking expenses in its calculation of CEP profit. See id. C. Analysis The Court finds that NSK’s United States repacking expenses were not incident to bringing the subject merchandise from the original place of shipment in Japan to the place of delivery in the United States. Rather, such expenses were clearly direct selling expenses. Direct selling expenses under § 1677a(d)(l)(B) are not limited to credit expenses, guarantees and warranties, but include “expenses which result from and bear a direct relationship to the particular sale in question.” SAA at 823 (defining direct selling expenses). In this case, the particular sales in question concerned orders for smaller distributors. Although NSK reported that it normally does not perform repacking for United States sales (that is, it usually ships merchandise from its United States warehouse in its original containers), NSK acknowledged that it did some repacking to accommodate orders for smaller distributors. See NSK’s Resp. to Sect. C Questionnaire, Investigation No. A-588-804, Admin. Rev. 5/1/95-4/30/96, at 38 (Sept. 10, 1996) (Q. 47.0, “U.S. Repacking Cost”). The Court finds, therefore, as Commerce did in the Final Results, that NSK’s repacking is “expense associated with selling the merchandise.” 62 Fed. Reg. at 54,067. Accordingly, the Court concludes that Commerce properly treated and deducted NSK’s United States repacking expenses as direct selling expenses pursuant to § 1677a(d)(l)(B) rather than as transportation or other expenses pursuant to § 1677a(c)(2)(A). III. Commerce’s Calculation of Profit for Constructed Value A. Background For this POR, Commerce “used [constructed value] as the basis for NV when there were no usable sales of foreign-like product in the comparison market.” Preliminary Results, 62 Fed.Reg. at 31,571. Commerce calculated the profit component of CV using the statutorily preferred methodology of 19 U.S.C. § 1677b(e)(2)(A) (1994). See Final Results, 62 Fed.Reg. at 54,062. In applying the “preferred” method for calculating CV profit under § 1677b(e)(2)(A), Commerce determined that “the use of aggregate data that encompasses all foreign like products under consideration for NV represents a reasonable interpretation of the statute and results in a practical measure of profit that we can apply consistently in each case.” Id. B. Contentions of the Parties NSK contends, inter alia, that Commerce’s use of aggregate data encompassing all foreign like products under consideration for NV in calculating CV profit is' contrary to § 1677b(e)(2)(A) and the explicit hierarchy established by 19 U.S.C. § 1677(16) (1994) for selecting the “foreign like product” for the CV profit calculation. See NSK’s Mem. Supp. Mot. J. Agency R. at 14-17. Commerce responds, inter alia, that it applied a reasonable interpretation of § 1677b(e)(2)(A) and properly based CV profit for NSK on aggregate profit data of all foreign like products under consideration for NV. See Def.’s Mem. in Partial Opp’n to Mot. J. Agency R. at 30-43. Tor-rington generally agrees with Commerce. See Torrington’s Resp. to Pis.’ Mots. J. Agency R. at 20-22. C. Analysis NSK raised this issue in RHP Bearings Ltd. v. United States, 83 F.Supp.2d 1322 (1999), which concerned the sixth administrative review of an anti-dumping duty order on AFBs imported from the UK. In RHP Bearings, this Court held that Commerce’s CV profit methodology, which consists of using the aggregate data of all foreign like products under consideration for NV, is consistent with the antidumping statute. See id. at -, 83 F.Supp.2d at 1336. Since NSK’s arguments and the methodology at issue in this case are practically identical to those presented in RHP Bearings, the Court adheres to its reasoning in RHP Bearings and, therefore, finds Commerce’s CV profit methodology to be supported by substantial evidence and in accordance with law. IV. Commerce’s Recalculation of NTN’s United States Credit Expenses for Constructed Export Price Sales A. Background In calculating NV, 19 U.S.C. § 1677b(a)(6)(C) directs Commerce to adjust NV to account for “any differences (or the lack thereof) between the [EP or CEP] and [NV] ... that is established to the satisfaction of [Commerce] to be wholly or partly due to ... differences in the circumstances of sale” (“COS”) between sales made in the United States and sales made in the foreign market under consideration. See SAA at 828 (“Additional Adjustments to Normal Value”). “Such COS adjustments are made when the seller incurs certain costs in its home market sales that it does not incur when selling to the United States market.” Torrington Co. v. United States, 156 F.3d 1361, 1363 (Fed.Cir.1998). The COS adjustments include adjustments for differences in direct selling expenses such as credit expenses. See SAA at 828 (“Commerce will ... employ the [COS] adjustment to adjust for differences in direct expenses”); Asociacion Colombiana de Exportadores de Flores v. United States, 22 CIT -, -, 6 F.Supp.2d 865, 876 (1998) (discussing COS adjustment for differences in credit costs). A COS adjustment for differences in credit expenses is made to account for the “producer’s opportunity cost of extending credit to its customers. By allowing the purchaser to make payment after the shipment date, the producer forgoes the opportunity to earn interest on an immediate payment.” Mitsubishi Heavy Industries, Ltd. v. United States, 23 CIT -, -, 54 F.Supp.2d 1183, 1188 (1999). Thus, Commerce uses an imputed credit expense to reflect “the loss attributable to the time value of money.” Id.; see Asociacion, 22 CIT at -, 6 F.Supp.2d at 876 (“As part oí its calculation of selling expenses for U.S. sales, Commerce imputes a credit expense on sales to represent the cost (based upon the time value of money) to the seller of waiting for payment for its sales.”). Commerce’s normally calculates an imputed credit expense “based only on the cost of financing receivables between shipment date and payment date.” Mitsubishi, 22 CIT at -, 54 F.Supp.2d at 1188 (quoting Mitsubishi Heavy Industries, Inc. v. United States, 22 CIT -, -, 15 F.Supp.2d 807, 820 (1998)). In this case, NTN calculated its United States credit expense on a customer-specific basis. See Verification Report for NTN Corporation (NTN) for the 1995-96 Administrative Review of the Antidumping Duty Order on Antifriction Bearings (Other Than Tapered Roller Bearings) and Parts Thereof From Japan, A-588-804, Proprietary Doc., at 7 (May 3, 1997) (“Credit Expense”). NTN imputed the cost of credit for sales by determining monthly the average number of days for which each customer’s payments were outstanding and the short-term interest rate NTN paid, or would have paid, if it borrowed the same money to finance its accounts receivable. See id. During the review, Torrington contended that Commerce “should recalculate NTN’s United States credit expense because ... reporting credit expense on an average basis may be distortive in cases where not all [United States] sales are dumped.” Final Results, Fed.Reg. at 54,-053. Torrington noted that NTN provided the necessary information on record to recalculate a credit expense on a “transaction-specific basis.” See id. NTN responded that its credit expense should not be recalculated because Commerce had accepted NTN’s methodology of reporting a customer-specific average credit expense in all previous AFB reviews. See id.; see, e.g., Antifriction Bearings (Other Than Tapered Roller Bearings) and Parts Thereof From the Federal Republic of Germany, et aJL; Final Results of Antidumping Duty Administrative Review, 56 Fed.Reg. 31,692, 31,724 (July 11, 1991) (cross-referenced by Anti-friction Bearings (Other Than Tapered Roller Bearings) and Parts Thereof From Japan; Final Results of Antidumping Duty Administrative Reviews, 56 Fed. Reg. 31,754, 31,755 (July 11, 1991)) (Commerce using a customer-specific average credit expense for NTN-Japan during the first review); Antifriction Bearings (Other Than Tapered Roller Bearings) and Parts Thereof From France, Germany, Italy, Japan, Singapore, and the United Kingdom; Final Results of Antidumping Duty Administrative Reviews (“sixth administrative review”), 62 Fed.Reg.2081, 2101 (Jan. 15, 1997) (Commerce using a customer-specific average credit expense for NTN during this review). Commerce agreed with Torrington with regard to CEP sales, finding: We have data on the record which allows us to calculate transaction-specific credit expense for CEP sales. Therefore, we have recalculated NTN’s credit expense using the dates of payment which NTN reported. However, Torrington is incorrect in asserting that NTN reported transaction-specific payment dates for EP sales. NTN does not maintain its payment records in a manner which allows it to provide us with transaction-specific payment dates for EP sales to the United States.... Therefore, in these reviews, as in past reviews, we are allowing NTN to calculate its U.S. credit expense for EP sales for each customer on the basis of the average number of days that receivables are outstanding. Final Results, Fed.Reg. at 54,053. B. Contentions of the Parties NTN notes that Commerce accepted NTN’s calculation of credit expenses on a customer-specific basis for the previous six reviews of the antidumping duty order on AFBs from Japan. See NTN’s Mem. Supp. Mot. J. Agency R. at 14. NTN contends that since “[t]here have been no changes in the facts or law which would compel a sudden shift” in Commerce’s practice of accepting credit expenses reported on a customer-specific basis, Commerce’s “prior decisions must become law of the case.” Id. In support of this contention, NTN relies on Shikoku Chemicals Corp. v. United States, 16 CIT 382, 795 F.Supp. 417 (1992), for the proposition that “principles of fairness prevent Commerce from changing its methodology at this late stage.... Adherence to prior methodology is required in some circumstances.” NTN’s Mem. Supp. Mot. J. Agency R. at 14 (quoting Shikoku, 16 CIT at 388, 795 F.Supp. at 421 (footnote and citations omitted)). NTN, therefore, requests that the Court remand the issue to Commerce to accept NTN’s customer-specific average credit expense. See id. Commerce asserts that it did not apply any new process and approach in calculating NTN’s United States credit expenses. Def.’s Mem. in Partial Opp’n to Mot. J. Agency R. at 45. Rather, Commerce notes that it has expressed, and continues to maintain, a “preference that expenses be reported on a transaction-specific basis rather than on an average or allocated basis.” Id. at 44. However, Commerce claims that when a company’s records do not permit transaction-specific reporting, it has permitted use of average or allocated expenses as it did with NTN’s credit expenses for EP sales. Id. Commerce argues that since NTN provided the necessary information on record which permitted a transaction-specific calculation of NTN’s United States credit expenses for CEP sales, Commerce properly exercised its preference and recalculated the expenses on such a basis. See id. at 45. Also, Commerce contends that the principles of fairness that prevented Commerce from changing its methodology of calculating an expense at a late stage in the antidumping proceeding in Shikoku are not present in this case. See id. at 46. Torrington agrees with Commerce, noting that, consistent with the antidumping statute and regulations, Commerce has a well-established preference for transaction-specific reporting of expenses. See Torrington’s Resp. to Pis.’ Mots. J. Agency R. at 34. Also, Torrington notes that Commerce’s questionnaire requesting information indicated a strong preference for reporting credit expenses on a transaction-specific basis. See id. Since the record contained information that permitted more precise credit expense calculations, that is, transaction-specific payment dates for NTN’s CEP sales, Torrington contends that Commerce properly recalculated NTN’s United States credit expenses on a transaction-specific basis. See id. at 34-35. C. Analysis The Court disagrees with NTN that Commerce is now prohibited from using transaction-specific reporting of NTN’s United States credit expense merely because in the past six reviews it accepted customer-specific reporting of such expenses. Commerce does not have to adhere to its customer-specific reporting methodology for calculating credit expenses when a respondent provides the necessary information on record for calculating such expenses on a more accurate and preferred basis, that is, a transaction-specific basis. See generally NSK Ltd. v. United States, 19 CIT 1013, -, 896 F.Supp. 1263, 1275 (1995) (noting that Commerce does not have to “adhere to its prior reporting methodology, especially where Commerce is striving for more accuracy”), rev’d on other grounds, 115 F.3d 965 (1997); see also id. 19 CIT at -, 896 F.Supp. at 1275 (explaining that “[direct selling expenses are incurred with respect to specific transactions. Credit, for example, is a selling expense which is only incurred when credit is extended under the terms of sale. Because credit expense is a direct expense, it should be tied to the transaction for which it was incurred.”). Further, NTN’s reliance on Shikoku, which it cites for the proposition that Commerce must adhere to its prior decisions, is misplaced. Shikoku dealt with an attempt by Commerce to adopt a slightly improved allocation methodology of calculating the home market price packing adjustment after years of acceptance of another methodology. See Shikoku, 16 CIT at 387, 795 F.Supp. at 420-21. At issue were the fifth and sixth administrative reviews of certain merchandise imported from Japan. See id. at 383, 795 F.Supp. at 417-18. The plaintiffs’ dumping margins for the previous three consecutive periods of review of sales of the contested merchandise were found to be either de minimis or had a margin of zero. See id. at 383, 795 F.Supp. at 418. In the fifth and sixth administrative reviews, Commerce altered its allocation methodology for calculating home market packing expenses, resulting in barely above de minimis margins and, thereby, Commerce refused a plaintiffs’ request to revoke the outstanding anti-dumping duty order covering the merchandise. See id. at 383-84, 795 F.Supp. at 418. Commerce’s new calculation was based on information which was requested for the first time at verification. See id. at 387, 795 F.Supp. at 421. The court in Shikoku found that: (1) “Commerce [had] employed a new process and approach (both synonyms for ‘methodology’)” in calculating the home market packing expenses and did not merely apply its standard practice of preferring actual expenses over allocated expenses; (2) Commerce could not demonstrate that the new allocation methodology was an improvement; and (3) the evidence on record established that plaintiffs had relied on Commerce’s old methodology for calculating the home market price packing adjustment by adjusting their prices in accordance with the methodology that Commerce had consistently applied in prior reviews. See id. at 386-87, 795 F.Supp. at 420. Under these circumstances, the court, noting that “[t]he margin resulting from the new approach ... is barely above de minimis, determined that it was “simply too late to mandate another three years of administrative reviews because of a last minute ‘improvement’ in Commerce’s methodology” and concluded that “Commerce did not have adequate reasons for its last minute change in methodology.” Id. at 388, 795 F.Supp. at 422. In this case, however, the Court agrees with Commerce that it did not apply, or switch to, any new methodology in calculating NTN’s credit expenses; instead, Commerce merely exercised its consistent preference for transaction-specific rather than customer-specific reporting given that NTN had supplied information which permitted a transaction-specific calculation of credit expenses. Moreover, in distinct contrast to the facts in Shikoku, the Court notes that NTN was afforded notice of Commerce’s preference for transaction-specific reporting. First, Commerce explicitly gave notice to NTN in the first and second reviews that it prefers to have the credit expense reported on a transaction-specific basis. See Antifriction Bearings (Other Than Tapered Roller Bearings) and Parts Thereof From the Federal Republic of Germany, et al; Final Results of Antidumping Duty Administrative Review, 56 Fed.Reg. 31,692, 31,724 (July 11, 1991) (first administrative review) (“The Department prefers to have credit calculated on a transaction-by-transaction basis.... In the future, in keeping with Department practice, credit expenses should be reported, at a minimum, on a customer-specific basis. In fact, the Department’s preference remains sales-spe-eific reporting of this expense.”); Antifriction Bearings (Other Than Tapered Roller Bearings) and Parts Thereof From France, et al; Final Results of Anti-dumping Duty Administrative Reviews, 57 Fed.Reg. 28,360, 28,405 (June 24, 1992) (second administrative review) (noting that “the Department will not accept credit expenses not reported, at a minimum, on a customer-specific basis or some reasonable equivalent. In fact, the Department’s preference remains for sales-specific reporting of this expense.”). Also, as Tor-rington points out, Commerce’s questionnaire for this review specifically reiterated the agency’s preferred methodology of using transaction-specific reporting for credit expenses. See Request for Information, Antifriction Bearings (Other Than Roller Bearings) and Parts Thereof From France, Germany, Italy, Japan, Romania, Singapore, Siveden, Thailand, and the United Kingdom (“Commerce’s Questionnaire”), Sec. C, at C-20 (June 19, 1996) (Case No. A-100-001, Fiche 02-03, Frame 03, Pub. Doc. 2) (“This [credit] expense should be calculated and reported on a transaction-by-transaction basis using the number of days between date of shipment to the customer and date of payment.”). Finally, the Court finds that this case does not present the situation in which, relying upon an old methodology, NTN had actually adjusted its prices and, except for the change in methodology, it would be entitled to a revocation of the outstanding antidumping duty order. Therefore, the principles of fairness that prevented Commerce from changing its methodology in Shikoku are not present here. Accordingly, the Court finds that Commerce’s recalculation of NTN’s United States credit expense on a transaction-specific basis was supported by substantial evidence and in accordance with law. Y. Commerce’s Denial of Level of Trade Adjustments to NSK and NTN A. Background 1. Statutory Provisions Under pre-URAA antidumping law, there were no specific provisions providing for an adjustment to foreign market value (“FMV”) for any difference in LOT between United States price (now EP or CEP) and FMV. Commerce, however, promulgated a regulation stating that: (1) it normally would calculate FMV and United States price based on sales at the same commercial LOT; and (2) if such sales were insufficient to permit an adequate comparison, Commerce would calculate FMV based on such or similar sales at the most comparable LOT in the United States market, making appropriate adjustments for differences affecting price comparability. See 19 C.F.R. § 353.58 (1994); see generally NEC Home Elecs., Ltd. v. United States, 54 F.3d 736, 739 (Fed.Cir.1995) (discussing 19 C.F.R. § 353.58). The URAA amended the antidumping statute to provide for a specific provision regarding adjustments to NV for differences in LOTs. Instead of FMV, see 19 U.S.C. § 1677b (1988), the statute now provides for NV, see URAA § 233(a)(1), 108 Stat. at 4898 (replacing term FMV with NV), which shall be based on: the price at which the foreign like product is first sold (or, in the absence of sale, offered for sale) for consumption in the exporting country, in the usual commercial quantities and in the ordinary course of trade and, to the extent practicable, at the same level of trade as the export price or constructed export price. 19 U.S.C. § 1677b(a)(l)(B)(i) (emphasis added). The statute also provides for a LOT adjustment to NV under the following conditions: The price described in [§ 1677b(a)(l)(B), i.e., NV,] shall also be increased or decreased to make due allowance for any difference (or lack thereof) between the export price and constructed export price and the price described in [§ 1677b(a)(l)(B) ] (other than a difference for which allowance is otherwise made under [§ 1677b(a) ]) that is shown to be wholly or partly due to a difference in level of trade between the export price or constructed export price and normal value, if the difference in level of trade— (i) involves the performance of different selling activities; and (ii) is demonstrated to affect price comparability, based on a pattern of consistent price differences between sales at different levels of trade in the country in which normal value is determined. In a case described in the preceding sentence, the amount of the adjustment shall be based on the price differences between the two levels of trade in the country in which normal value is determined. 19 U.S.C. § 1677b(a)(7)(A). In sum, to qualify for a LOT adjustment to NV, a party has the burden to show that the following two conditions have been satisfied: (1) the difference in LOT involves the performance of different selling activities; and (2) the difference affects price comparability. See SAA at 829 (stating that “if a respondent claims [a LOT] adjustment to decrease normal value, as with all adjustments which benefit a responding firm, the respondent must demonstrate the appropriateness of such adjustment”); see also NSK Ltd. v. Koyo Seiko Co., 190 F.3d 1321, 1330 (Fed.Cir.1999) (noting that a respondent bears the burden of establishing entitlement to a LOT adjustment). When the available data does not provide an appropriate basis to grant a LOT adjustment, but NV is established at a LOT constituting a more advanced stage of distribution than the LOT of the CEP, the statute ensures a fair comparison by providing for an additional adjustment to NV known as the “CEP offset.” See 19 U.S.C. § 1677b(a)(7)(B). Specifically, the CEP offset provides that NV “shall be reduced by the amount of indirect selling expenses incurred in the country in which normal value is determined on the sales of the foreign like product but not more than the amount of such expenses for which a deduction is made under [19 U.S.C. § 1766a(d)(l)(D) ].” 19 U.S.C. § 1677b(a)(7)(B). 2. Commerce’s LOT Methodology During this review, and in several prior reviews, Commerce applied the following LOT methodology. See Final Results, 62 Fed.Reg. at 54,055; Preliminary Results, 62 Fed.Reg. at 31,571-72. In accordance with § 1677b(a)(l)(B)(i), Commerce first calculates NV based on exporting-country (or third-country) sales, to the extent practicable, at the same LOT as the United States (EP and CEP) sales. See id. at 31,571. When Commerce is unable to find comparison sales at the same LOT as the EP or CEP sales, it compares such United States sales to sales at a different LOT in the comparison (home or third-country) market. See id. Where the LOT comparison is between NV sales and EP sales (that is, where the first sale in the United States is to an unaffiliated buyer), Commerce compares the unadjusted, NV starting price with the starting EP, without making any adjustments to EP as provided for under 19 U.S.C. § 1677a(c). See id. at 31,571. With respect to the LOT methodology for CEP sales, Commerce first calculates CEP by making adjustments to its starting price under 19 U.S.C. § 1677a(d), but before making any adjustments under § 1677a(c). See id. Commerce reasoned that the § 1677a(d) “adjustments are necessary to arrive at, as the term CEP makes clear, a ‘constructed’ EP,” that is, it is intended to reflect as closely as possible a price corresponding to an EP between non-affiliated exporters and importers. Final Results, Fed.Reg. at 54,058. Commerce then determines the LOT for the “adjusted” CEP sales. See Preliminary Results, 62 Fed.Reg. at 31,571. The next step in its LOT analysis is to determine whether home market sales are at a different LOT than United States (EP or CEP) sales. See id. In making such a determination, Commerce examines whether the “home market sales are at different stages in the marketing process than the U.S. [ (EP or CEP) ] sales,” that is, Commerce “review[s] and compare[s] the distribution systems in the home market and U.S. export markets, including selling functions, class of customer, and the extent and [LOT] of selling expenses for each claimed [LOT].” Id. If the EP or CEP sales and the NV sales are at a different LOT, and the differences in LOT affects price comparability, as manifested in a pattern of consistent price differences between the sales on which NV is based and comparison-market sales at the equivalent LOT of the export transaction, Commerce will make a LOT adjustment under § 1677b(a)(7)(A). See id. If there is no pattern of consistent price differences, no adjustment is permitted. See id. at 31,572. Finally, for CEP sales, if NV is established at a LOT which constitutes a more advanced stage of distribution than the LOT of the CEP, and if there is no basis for determining whether differences in the LOT between NV and CEP affects comparability of their prices, Commerce must make a CEP offset to NV under § 1677b(a)(7)(B). See id. 3. Denial of LOT Adjustment for CEP Sales With respect to CEP sales, Commerce found that the same LOT as that of the CEP for merchandise under review did not exist for any respondent in the home market except for certain home market sales of respondent NMB/Pelmac. See Final Results, 62 Fed.Reg. at 54,056. Commerce was unable to “determine whether there was a pattern of consistent price differences between the [LOTs] based on respondents’ [home market] sales of merchandise under review.” See id. In such cases, Commerce looked to alternative methods for calculating LOT adjustments in accordance with the SAA. See id. In particular, Commerce noted that the SAA states: “if the information on the same product and company is not available, the adjustment may also be based on sales of other products by the same company. In the absence of any sales, including those in recent time periods, to different levels of trade by the exporter or producer under investigation, Commerce may consider the selling experience of other producers in the foreign market for the same product or other products.” Id. (quoting SAA at 830). Nevertheless, Commerce determined that it would have been inappropriate to apply the LOT adjustment calculated for NMB/Pelmae to any other respondent, reasoning that “[b]ecause no respondent reported sales in the same market as NMB/Peimac (i.e., Singapore), we have not used NMB/Pel-mac’s data as the basis of a level-of-trade adjustment for any other respondents.” Id. Consequently, with respect to CEP sales which Commerce was unable to quantify a LOT adjustment, it granted a CEP offset to respondents, including NTN, where the home market sales were at a more advanced LOT than the sales to the United States, in accordance with 19 U.S.C. § 1677b(a)(7)(B). See id. With respect to NSK, Commerce applied a CEP offset to NV for all of NSK’s CEP sales. See Antifriction Bearings from Japan-NSK Ltd.(NSK) Preliminary Results Analysis Memo Seventh Administrative Review 5/1/95-4/30/96 (Mar. 28, 1997) (Case No. A-588-804, Fiche 95, Frame 57, Pub. Doc. 177, at 59). In reaching this result, Commerce first determined for NSK that there was one CEP LOT and two home market LOTs, and that the CEP LOT was not the same as either home market LOT. See id. Commerce could not match CEP sales at the same LOT in the home market or make a LOT adjustment “because'the differences in price between the CEP [LOT] and the home market [LOTs were] not quantifiable due to the lack of an equivalent CEP level of trade in the home market.” Id. Commerce concluded that “[b]ecause the data available do not provide an appropriate basis to determine a[LOT] adjustment and the home market [LOTs] are at a more advanced stage of distribution than the CEP, [it] made a CEP offset for all such sales.” Id. Moreover, contrary to NSK’s contentions, Commerce concluded that no provision of the antidumping statute provides for a “partial” LOT adjustment “between two home market [LOTs] where neither level is equivalent to the level of the [United States] sale.” Final Results, 62 Fed. Reg. at 54,057. B. Contentions of the Parties NTN contends that Commerce improperly denied a price-based LOT adjustment under § 1677b(a)(7)(A) for CEP sales made in the United States market at a LOT different from the home market sales. See NTN’s Mem. Supp. Mot. J. Agency R. at 17-18. In particular, NTN argues, inter alia, that Commerce incorrectly determined NTN’s CEP LOT because the agency failed to use the sale to the first unaffiliated purchaser in the United States to determine NTN’s CEP LOT. See id. at 18-19. In other words, according to NTN, if Commerce had used the CEP starting price, that is, without any § 1677a(d) adjustment, to determine CEP LOT, NTN would have satisfied the statutory requirements for a LOT adjustment for its CEP sales. See id. at 18; NTN’s Reply Br. at 25-31. In support of its position, NTN cites Borden Inc. v. United States, 22 CIT -, 4 F.Supp.2d 1221 (1998), where the court determined that Commerce’s methodology of making a § 1677a(d) adjustment to CEP prior to the LOT analysis contravened the purpose of § 1677b(a)(7)(A). See NTN’s Mem. Supp. Mot. J. Agency R. at 40-42; NTN’s Reply Br. at 28-30 (both citing Borden, 4 F.Supp.2d at 1241). NTN requests that the Court adopt the holding of Borden and remand the LOT issue to Commerce to determine NTN’s CEP LOTs prior to any § 1677a(d) deductions and, afterwards, to grant NTN a price-based LOT adjustment for its CEP sales. See id. at 29-31. NSK agrees with the manner in which Commerce determined LOT of its CEP for NV transactions. See NSK’s Mem. Supp. Mot. J. Agency R. at 25. In particular, NSK agrees that Commerce properly used the CEP as adjusted for § 1677a(d) expenses prior to its LOT analysis. See id. at 25 n. 12 (stating the Borden court “incorrectly ignored the statutory definition of CEP, which requires certain adjustments to starting price to reach CEP”). NSK, however, argues that Commerce should have granted it a “partial” LOT adjustment. See id. at 24-29. NSK first notes that Commerce found two LOTs in the home market, one corresponding to original equipment manufacturers (“OEM”) sales and the other to after market (“AM”) sales. See id. at 7. NSK also agrees that when Commerce matched CEP sales to home market OEM sales, Commerce correctly applied a CEP offset because there was no basis for quantifying a price-based LOT adjustment for CEP to OEM NV matches. See id. at 26. Further, NSK agrees that “Commerce correctly concluded there was no record information that would allow Commerce to quantify the downward price adjustment to adjust fully the AM NV [LOT] to the CEP [LOT].” Id. Nevertheless, NSK disagrees with Commerce’s decision to apply a CEP offset when Commerce matched CEP sales to home market AM sales. In these situations, NSK argues that § 1677b(a)(7)(A) and the SAA direct Commerce to calculate a partial, price-based LOT adjustment to NV for CEP sales measured by the price differences between OEM and AM LOTs. See id. at 8, 26-27. NSK notes that the statute directs Commerce to adjust NV for any difference between CEP and NV “ wholly or partly due to a difference in level of trade’ ” between CEP and NV. Id. at 26 (quoting § 1677b(a)(7)(A)). NSK also notes that § 1677b(a)(7)(B) indicates a CEP offset should only be used in the total absence of price-based LOT adjustments. See id. Accordingly, NSK claims that since there was evidence for quantifying price differences between OEM and AM LOTs, Commerce’s failure to calculate a price-based LOT adjustment that partly accounted for such LOT differences violated the plain language of § 1677b(a)(7)(A). See NSK’s Reply Mem. Supp. Mot. J. Agency R. at 10-11. Commerce, in turn, argues that it properly determined the LOT for NTN’s CEP sales after deducting expenses and profit from the price to the first unaffiliated purchaser in the United States pursuant to § 1677a(d) because § 1677b(a)(7)(A), which provides for a LOT adjustment, requires Commerce to compare CEP, not the “unadjusted” starting price of CEP, with NV. See Def.’s Mem. in Partial Opp’n to Mot. J. Agency R. at 57-61. Commerce notes CEP is defined in § 1677a(b) as the price at which the subject merchandise is first sold (or agreed to be sold) in the United States as “adjusted” under § 1677a(d). See id. at 58. Commerce further asserts that the Court should not follow Borden because it is not based upon persuasive statutory analysis. See id. at 61-66. Commerce also claims that it properly denied a LOT adjustment for NTN’s CEP sales because NTN failed to establish its entitlement to a LOT adjustment. See id. at 5, 66-70. Commerce also argues that it properly denied a partial LOT adjustment and applied a CEP offset to NV for all of NSK’s CEP transactions. See id. at 70-77. Contrary to NSK’s reading of § 1677b(a)(7)(A), Commerce asserts that the statute only provides for a LOT price-based adjustment to NV based upon price differences in the home market between the CEP LOT and NV LOT when the differences can be quantified. See id. at 4, 74-76. Commerce claims that the statute does not authorize a LOT price-based adjustment based upon different LOTs in the home market when the price difference between the CEP LOT sales and the home market LOT sales cannot be quantified, as NTN acknowledges in this case. See id.; see also Final Results, 62 Fed.Reg. at 54,057 (explaining that Commerce does not read into § 1677b(a)(7)(A)’s “wholly or partly” language the authority to make a LOT adjustment based on differences between two home market LOTs where neither level is equivalent to the level of the United States sale). Commerce, therefore, asserts that since it reasonably interpreted § 1677b(a)(7)(A), the Court should sustain its denial of a LOT adjustment and grant of a CEP offset for all of NSK’s CEP transactions. See Def.’s Mem. in Partial Opp’n to Mot. J. Agency R. at 76-77. Torrington gene