Full opinion text
OPINION TSOUCALAS, Senior Judge. Plaintiffs and defendant-intervenors, FAG Kugelfiseher Georg Schafer AG, FAG Bearings Corporation (collectively “FAG”), SKF USA Inc., SKF GmbH (collectively “SKF”), NTN Bearing Corporation of America, NTN Kugellagerfabrik (Deutschland) GmbH (collectively “NTN”), and INA Walzlager Schaeffler KG and INA Bearing Company, Inc. (collectively “INA”), move pursuant to USCIT R. 56.2 for judgment upon the agency record challenging various aspects of the United States Department of Commerce, International Trade Administration’s (“Commerce”) final determination, entitled Anti-friction 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 (‘Final Results”), 62 Fed. Reg.2081 (Jan. 15, 1997), as amended, An-tifriction Bearings (Other Than Tapered Roller Bearings) and Parts Thereof From France, Germany, Italy, Japan, and Sing- . apore; Amended Final Results of Anti-dumping Duty Administrative Reviews, 62 Fed.Reg. 14,391 (Mar. 26, 1997). Defendant-intervenor and plaintiff, The Tor-rington Company (“Torrington”), also moves pursuant to USCIT R. 56.2 for judgment upon the agency record challenging certain aspects of Commerce’s Final Results. Specifically, FAG argues that Commerce erred in: (1) calculating constructed value (“CV”) profit; (2) failing to match United States sales to similar home-market sales prior to resorting to CV when all home-market sales of identical merchandise have been disregarded; (3) including its zero-value United States transactions in its margin calculations; and (4) excluding amounts for imputed credit and inventory carrying expenses in its calculation of total expenses for the constructed export price (“CEP”) profit ratio. SKF contends that Commerce erred in: (1) calculating CV profit; (2) calculating the CV home-market credit expense rate based on home-market gross unit price while applying that rate to the per unit cost of production; (3) including its zero-value United States transactions in its margin calculations; and (4) failing to match United States sales to similar home-market sales prior to resorting to CV when all home-market sales of identical merchandise have been disregarded. NTN contends that Commerce erred in: (1) making certain adjustments to the starting price of CEP and denying a price-based level of trade (“LOT”) adjustment for CEP sales; (2) recalculating indirect selling expenses without regard to LOT; and (3) determining CEP profit without regard to LOT. INA contends that Commerce erred in: (1) calculating CV profit; (2) excluding amounts for imputed credit and inventory carrying expenses in its calculation of total expenses for the CEP profit ratio; (3) failing to apply the special rule for merchandise with value added after importation under 19 U.S.C. § 1677a (1994); and (4) failing to convert certain expenses from foreign currency to United States dollars in calculating EP and CEP. Torrington contends that Commerce erred in its treatment of: (1) SKF’s home-market early-payment discounts; (2) SKF’s home-market support rebates; (3) SKF’s home-market billing adjustments; (4) INA’s home-market billing adjustments; and (5) NTN’s home-market early-payment discounts. Held: FAG’s USCIT R. 56.2 motion is denied in part and granted in part. SKF’s USCIT R. 56.2 motion is denied in part and granted in part. NTN’s USCIT R. 56.2 motion is denied. INA’s USCIT R. 56.2 motion is denied in part and granted in part. Torrington’s USCIT R. 56.2 motion is denied. The case is remanded to Commerce to: (1) first attempt to match FAG’s and SKF’s United States sales to similar home-market sales before resorting to CV; (2) exclude any transactions that were not supported by consideration from FAG’s and SKF’s United States sales databases and to adjust the dumping margins accordingly; (3) include all expenses included in “total United States expenses” in the calculation of “total expenses” for FAG’s and INA’s CEP profit ratios; (4) reconsider its decision to calculate SKF’s home-market credit expense rate based upon price and then apply that rate to cost; and (5) convert certain expenses from foreign currency to United States dollars in calculating EP and CEP for INA. [FAG’s motion is denied in part and granted in part. SKF’s motion is denied in part and granted in part. NTN’s motion is denied. INA’s motion is denied in part and granted in part. Torrington’s motion is denied. Case remanded.] Plaintiffs and defendant-intervenors, FAG Kugelfiseher Georg Schafer AG, FAG Bearings Corporation (collectively “FAG”), SKF USA Inc., SKF GmbH (collectively “SKF”), NTN Bearing Corporation of America, NTN Kugellagerfabrik (Deutschland) GmbH (collectively “NTN”), and INA Walzlager Schaeffler KG and INA Bearing Company, Inc. (collectively “INA”), move pursuant to USCIT R. 56.2 for judgment upon the agency record challenging various aspects of the United States Department of Commerce, International Trade Administration’s (“Commerce”) final determination, entitled Anti-friction 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 (“Final Results”), 62 Fed. Reg.2081 (Jan. 15, 1997), as amended, An-tifriction Bearings (Other Than Tapered Roller Bearings) and Parts Thereof From France, Germany, Italy, Japan, and Singapore; Amended Final Results of Anti-dumping Duty Administrative Reviews, 62 Fed.Reg. 14,391 (Mar. 26, 1997). Defendant-intervenor and plaintiff, The Tor-rington Company (“Torrington”), also moves pursuant to USCIT R. 56.2 for judgment upon the agency record challenging certain aspects of Commerce’s Final Results. Specifically, FAG argues that Commerce erred in: (1) calculating constructed value (“CV”) profit; (2) failing to match United States sales to similar home-market sales prior to resorting to CV when all home-market sales of identical merchandise have been disregarded; (3) including its zero-value United States transactions in its margin calculations; and (4) excluding amounts for imputed credit and inventory carrying expenses in its calculation of total expenses for the constructed export price (“CEP”) profit ratio. SKF contends that Commerce erred in: (1) calculating CV profit; (2) calculating the CV home-market credit expense rate based on home-market gross unit price while applying that rate to the per unit cost of production; (3) including its zero-value United States transactions in its margin calculations; and (4) failing to match United States sales to similar home-market sales prior to resorting to CV when all home-market sales of identical merchandise have been disregarded. NTN contends that Commerce erred in: (1) making certain adjustments to the starting price of CEP and denying a price-based level of trade (“LOT”) adjustment for CEP sales; (2) recalculating indirect selling expenses without regard to LOT; and (3) determining CEP profit without regard to LOT. INA contends that Commerce erred in: (1) calculating CV profit; (2) excluding amounts for imputed credit and inventory carrying expenses in its calculation of total expenses for the CEP profit ratio; (3) failing to apply the special rule for merchandise with value added after importation under 19 U.S.C. § 1677a (1994); and (4) failing to convert certain expenses from foreign currency to United States dollars in calculating export price (“EP”) and CEP. Torrington contends that Commerce erred in its treatment of: (1) SKF’s home-market early-payment discounts; (2) SKF’s home-market support rebates; (3) SKF’s home-market billing adjustments; (4) INA’s home-market billing adjustments; and (5) NTN’s home-market early-payment discounts. BACKGROUND This case concerns the sixth review of the antidumping duty order on antifriction bearings (other than tapered roller bearings) and parts thereof (“AFBs”) imported to the United States from Germany during the review period of May 1, 1994 through April 30, 1995. On July 8, 1996, Commerce published the preliminary results of the subject review. See Antifriction Bearings (Other Than Tapered Roller Bearings) and Parts Thereof From France, Germany, Italy, Japan, Romania, Singapore, Thailand and the United Kingdom; Preliminary Results of Antidumping Duty Administrative Reviews, Termination of Administrative Reviews, and Partial Termination of Administrative Reviews (“Preliminary Results’’), 61 Fed. Reg. 35,713. Commerce issued the Final Results on January 15, 1997, see 62 Fed. Reg.2081, and the Amended Final Results on March 26, 1997, see 62 Fed.Reg. 14,391. Since the administrative review at issue was initiated after December 31, 1994, the applicable law is the antidumping statute as amended by the Uruguay Round Agreements Act (“URAA”), Pub.L. No. 103-465, 108 Stat. 4809 (1994) (effective January 1, 1995). See Torrington Co. v. United States, 68 F.3d 1347, 1352 (Fed.Cir.1995) (citing URAA § 291(a)(2), (b) (noting effective date of URAA amendments)). 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 The Court will uphold Commerce’s final determination in an antidumping administrative review 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); see NTN Bearing Corp. of America v. United States (“NTN Bearing”), 24 CIT -, -, 104 F.Supp.2d 110, 115-16 (2000) (detailing Court’s standard of review in antidumping proceedings). DISCUSSION I. Commerce’s CV Profit Calculation A.Background For this POR, Commerce used CV as the basis for NV “when there were no usable sales of the foreign like product in the comparison market.” Preliminary Results, 61 Fed.Reg. at 35,718. 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 2113. Specifically, in calculating CV, the statutorily preferred method is to calculate an amount for profit based on “the actual amounts incurred and realized by the specific exporter or producer being examined in the investigation or review ... in connection with the production and sale of a foreign like product [made] in the ordinary course of trade, for consumption in the foreign country.” 19 U.S.C. § 1677b (e)(2)(A). In applying the preferred methodology for calculating CV profit, Commerce determined that “the use of aggregate data that encompasses all foreign like products under consideration for NV represents a reasonable interpretation of [§ 1677b (e)(2)(A) ] and results in a practical measure of profit that [Commerce] can apply consistently in each case.” Final Results, 62 Fed.Reg. at 2113. Also, in calculating CV profit under § 1677b (e)(2)(A), Commerce excluded below-cost sales from the calculation which it disregarded in the determination of NV pursuant to § 1677b(b)(1) (1994). See id. at 2114. B. Contentions of the Parties FAG, SKF and INA contend 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). See FAG’s Br. Supp. Mot. J. Agency R. (“FAG’s Br.”) at 4-11; SKF’s Br. Supp. Mot. J. Agency R. (“SKF’s Br.”) at 10-26; INA’s Br. Supp. Mot. J. Agency R. (“INA’s Br.”) at 9-16. Instead, FAG, SKF and INA claim that Commerce should have relied on alternative methodologies such as the one described by § 1677b(e)(2)(B)(i), which provides a CV profit calculation that is similar to the one Commerce used, but does not limit the calculation to sales made in the ordinary course of trade, that is, below-cost sales are not excluded from the calculation. See id. SKF also asserts that if Commerce’s exclusion of below-cost sales from the numerator of the CV profit calculation is lawful, Commerce should nonetheless include such sales in the denominator of the calculation to temper bias which is inherent in the agency’s dumping margin calculations. See SKF’s Br. at 26-30. Commerce responds that it properly calculated CV profit pursuant to § 1677b(e)(2)(A), based on aggregate profit data of all foreign like products under consideration for NV. See Def.’s Mem. Partial Opp’n Pis.’ Mots. J. Agency R. (“Def.’s Mem.”) at 13-26. Consequently, Commerce maintains that since it properly calculated CV profit under subparagraph (A) rather than (B) of § 1677b(e)(2), it correctly excluded below-cost sales from the CV profit calculation. See id. at 16-17. Torrington generally agrees with Commerce’s contentions. See Torrington’s Resp. at 9-18. C. Analysis In RHP Bearings Ltd. v. United States, 23 CIT -, 83 F.Supp.2d 1322 (1999), this Court upheld Commerce’s CV profit methodology of using aggregate data of all foreign like products under consideration for NV as being consistent with the antidumping statute. See id. at -, 83 F.Supp.2d at 1336. Since Commerce’s CV profit methodology and the parties’ arguments at issue in this case are practically identical to those presented in RHP Bearings, the Court adheres to its reasoning in RHP Bearings. The Court, therefore, finds that Commerce’s CV profit methodology is in accordance with law. Moreover, since (1) § 1677b(e)(2)(A) requires Commerce to use the actual amount for profit in connection with the production and sale of a foreign like product in the ordinary course of trade, and (2) 19 U.S.C. § 1677(15) (1994) provides that below-cost sales disregarded under § 1677b(b)(l) are considered to be outside the ordinary course of trade, the Court finds that Commerce properly excluded below-cost sales from the CV profit calculation. II. Commerce’s Matching United States Sales to Similar Home-Market Sales Prior to Resorting to CV FAG and SKF maintain that Commerce erred in resorting to CV without first attempting to match United States sales, that is, EP or CEP sales, to similar home-market sales in instances where home-market sales of identical merchandise have been disregarded because they were out of the ordinary course of trade. See FAG’s Br. at 11-12; SKF’s Br. at 38-39. FAG and SKF maintain that a remand is necessary to bring Commerce’s practice in accord with the United States Court of Appeals for the Federal Circuit’s (“CAFC”) decision in Cemex, S.A. v. United States, 133 F.3d 897, 904 (Fed.Cir.1998). Commerce agrees with FAG and SKF. See Def.’s Mem. at 27. The Court agrees with FAG, SKF and Commerce. In Cemex, the CAFC reversed Commerce’s practice of matching a United States sale to CV when the identical or most similar home-market model failed the cost test. See 133 F.3d at 904. The CAFC stated that “[tjhe plain language of the statute requires Commerce to base foreign market value [ (now NV) ] on nonidentical but similar merchandise [ (foreign like product under the amendments to the URAA) j ... rather than [CV] when sales of identical merchandise have been found to be outside the ordinary course of trade.” Id. In fight of Cemex, this matter is remanded so that Commerce can first attempt to match United States sales to similar home-market sales before resorting to CV. III. Zero-Value United States Transactions FAG and SKF argue that in fight of NSK Ltd. v. United States, 115 F.3d 965, 975 (Fed.Cir.1997), the Court should remand the matter to Commerce to exclude their zero-value transactions from their margin calculations. See FAG’s Br. at 12-13; SKF’s Br. at 35-37. FAG and SKF maintain that United States transactions at zero value, such as prototypes and samples, do not constitute true sales and, therefore, should be excluded from the margin calculations pursuant to NSK. See id. The identical issue was decided by this Court in SKF USA Inc. v. United States, Slip Op. 99-56, 1999 WL 486537, *7 (June 29,1999). Torrington concedes that a remand may be necessary in fight of NSK, but argues that further factual inquiry by Commerce is necessary to determine whether the zero-price transactions were truly without consideration. See Torrington’s Resp. at 19-23. Torrington argues that only if the transactions are truly without consideration can they fall within NSK’s exclusion. See id. Commerce concedes that the case should be remanded to it to exclude the sample transactions for which FAG and SKF received no consideration from their United States sales databases. See Def.’s Mem. at 27-28. Commerce is required to impose anti-dumping duties upon merchandise that “is being, or is likely to be, sold in the United States at less than its fair value.” 19 U.S.C. § 1673(1) (1994). A zero-priced transaction does not qualify as a “sale” and, therefore, by definition cannot be included in Commerce’s NV calculation. See NSK, 115 F.3d at 975 (holding “that the term ‘sold’ ... requires both a transfer of ownership to an unrelated party and consideration.”). Thus, the distribution of AFBs for no consideration falls outside the purview of 19 U.S.C. § 1673. Consequently, the Court remands to Commerce to exclude any transactions that were not supported by consideration from SKF’s United States sales database and to adjust the dumping margins accordingly. IV. Commerce’s Treatment of FAG’s and INA’s Imputed Credit and Inventory Carrying Costs in the Calculation of CEP Profit A. Background In calculating CEP, Commerce must reduce the starting price used to establish CEP by “the profit allocated to the expenses described in paragraphs (1) and (2)” of § 1677a(d) (1994). 19 U.S.C. § 1677a(d)(3). Under 19 U.S.C. § 1677a(f), the “profit” that will be deducted from this starting price will be “determined by multiplying the total actual profit by [a] percentage” calculated “by dividing the total United States expenses by the total expenses.” Id. § 1677a(f)(l), (2)(A). Section 1677a(f)(2)(B) defines “total United States expenses” as the total expenses deducted under § 1677a(d)(l) and (2), that is, commissions, direct and indirect selling expenses, assumptions and the cost of any further manufacture or assembly in the United States. Section 1677a(f)(2)(C) establishes a tripartite hierarchy of methods for calculating “total expenses.” First, “total expenses” will be “[t]he expenses incurred with respect to the subject merchandise sold in the United States and the foreign like product sold in the exporting country” if Commerce requested such expenses for the purpose of determining NV and CEP. Id. § 1677a(f)(2)(C)(i). If category (i) does not apply, then “total expenses” will be “[t]he expenses incurred with respect to the narrowest category of merchandise sold in the United States and the exporting country which includes the subject merchandise.” Id. § 1677a(f)(2)(C)(ii). If neither category (i) or (ii) applies, then “total expenses” will be “[t]he expenses incurred with respect to the narrowest category of merchandise sold in all countries which includes the subject merchandise.” Id. § 1677a(f) (2) (C) (iii). “Total actual profit” is based on whichever category of merchandise is used to calculate “total expenses” under § 1677a(f)(2)(C). See id. § 1677a(f)(2)(D). FAG and INA reported United States sales that Commerce treated as CEP sales pursuant to 19 U.S.C. § 1677a(b), and Commerce deducted an amount for profit allocated to the expenses enumerated by 19 U.S.C. § 1677a(d)(l) and (2). See 19 U.S.C. § 1677a(d)(3). In the profit calculation, Commerce excluded imputed expenses and carrying costs from the “total actual profit” calculation, defined in § 1677a(f)(2)(D), and from the “total expenses” calculation, defined in § 1677a(f)(2)(C), but included them in the “total United States expenses” calculation, defined in § 1677a(f)(2)(B). FAG objected to the omission of imputed expenses and carrying costs from “total expenses,” and Commerce responded by stating the following: Sections [1677a(f)(l) and 1677a(f)(2)(D) ] of [Title 19] state that the per-unit profit amount shall be an amount determined by multiplying the total actual profit by the applicable percentage (ratio of total U.S. expenses to total expenses) and that the total actual profit means the total profit earned by the foreign producer, exporter, and affiliated parties. In accordance with the statute, we base the calculation of the total actual profit used in calculating the per-unit profit amount for CEP sales on actual revenues and expenses recognized by the company. In calculating the per-unit cost of the U.S. sales, we have included net interest expense. Therefore, we do not need to include imputed interest expenses in the “total actual profit” calculation since we have already accounted for actual interest in computing this amount under section [1677a(f)(l) ]. When we allocated a portion of the actual profit to each CEP sale, we have included imputed credit and inventory carrying costs as part of the total U.S. expense allocation factor. This methodology is consistent with section [1677a(f)(l) ] of the statute which defines “total United States expense” as the total expenses described under section [1677a(d)(l) and (2) ]. Such expenses include both imputed credit and inventory carrying costs. Final Results, 62 Fed.Reg. at 2126-27. B. Contentions of the parties FAG and INA complain that in calculating “total United States expenses” pursuant to 19 U.S.C. § 1677a(f)(2)(B), Commerce included amounts for imputed credit and inventory carrying expenses, but failed to include these amounts in its calculation of “total expenses,” as defined by 19 U.S.C. § 1677a(f)(2)(C). See FAG’s Br. at 13-14; INA’s Br. at 16-17. FAG and INA argue that the plain language of the statute demonstrates that any expense constituting “total United States expenses” must also be included in “total expenses.” See id. Commerce maintains that the statute does not address the use of imputed expenses in the calculation of “total expenses” or “total actual profit.” See Def.’s Mem. at 31. Commerce based its decision to exclude the expenses from “total actual profit” and “total expenses” on its “conclusion that the imputed expenses were already accounted for through the inclusion of actual interest expenses in ‘total actual profit’ and ‘total expenses.’ ” See id. at 35. Commerce acknowledges that imputed and actual expenses may differ, but maintains that “they serve as a reasonable surrogate for one another in the calculation of actual profit.” Id. Finally, Commerce contends that the Court should not entertain INA’s claim since it was not raised during the administrative proceedings. See id. at 37. Tor-rington generally agrees with Commerce. See Torrington’s Resp. at 24-27. C. Analysis Commerce and Torrington argue that INA has not properly exhausted its administrative remedies with respect to Commerce’s treatment of INA’s imputed credit and inventory carrying costs in the calculation of CEP profit. The exhaustion doctrine requires a party to present its claims to the relevant administrative agency for consideration before raising them to the Court. See Unemployment Compensation Comm’n of Alaska v. Aragon, 329 U.S. 143, 155, 67 S.Ct. 245, 91 L.Ed. 136 (1946) (“A reviewing court usurps the agency’s function when it sets aside the administrative determination upon a ground not theretofore presented and deprives the [agency] of an opportunity to consider the matter, make its ruling, and state the reasons for its action.”). In this case, however, there is no absolute re quirement of exhaustion in the Court of International Trade. See Alhambra Foundry Co. v. United States, 12 CIT 343, 346-17, 685 F.Supp. 1252, 1255-56 (1988). Section 2637(d) of Title 28 of the United States code directs that “the Court of International Trade shall, where appropriate, require the exhaustion of administrative remedies.” By its use of the phrase “where appropriate,” Congress vested discretion in the Court to determine the circumstances under which it shall require the exhaustion of administrative remedies. See Cemex, S.A, 133 F.3d at 905. “[E]ach exercise of judicial discretion in not requiring litigants to exhaust administrative remedies” has been characterized as “ ‘an exception to the doctrine of exhaustion.’ ” Alhambra Foundry, 12 CIT at 347, 685 F.Supp. at 1256 (citing Timken Co. v. United States, 10 CIT 86, 93, 630 F.Supp. 1327, 1334 (1986)). In the past, the Court has exercised its discretion to obviate exhaustion where: (1) requiring it would be futile, see Rhone Poulenc, S.A. v. United States, 7 CIT 133, 135, 583 F.Supp. 607, 610 (1984) (“it appears that it would have been futile for plaintiffs to argue that the agency should not apply its own regulation”), or would be “inequitable and an insistence of a useless formality” as in the case where “there is no relief which plaintiff may be granted at the administrative level,” United States Cane Sugar Refiners’ Ass’n v. Block, 3 CIT 196, 201, 544 F.Supp. 883, 887 (1982); (2) a subsequent court decision has interpreted existing law after the administrative determination at issue was published, and the new decision might have materially affected the agency’s actions, see Timken Co. v. United States, 10 CIT 86, 93, 630 F.Supp. 1327, 1334 (1986); (3) the question is one of law and does not require further factual development and, therefore, the court does not invade the province of the agency, see id.; R.R. Yardmasters of America v. Harris, 721 F.2d 1332, 1337-39 (D.C.Cir.1983); and (4) the plaintiff had no reason to suspect that the agency would refuse to adhere to “clearly applicable precedent,” Philipp Bros. v. United States, 10 CIT 76, 79-80, 630 F.Supp. 1317, 1320-21 (1986). Although INA did not raise this issue during the administrative process, the Court exercises it discretion to rule on the issue here. The danger that the Court decides the issue before Commerce has the opportunity to examine it at the administrative level is not present since Commerce already had the opportunity to consider the same issue vis-a-vis FAG in the instant case, and INA’s arguments do not materially differ from those raised by FAG in the instant case. INA may be excused from its failure to raise the issue before Commerce since Commerce in fact considered the issue. See Krupp Thyssen Nirosta GmbH v. United States, Slip Op. 00-89, 2000 WL 1118114, *3 n. 1 (July 31, 2000) (plaintiffs not precluded from bringing forth argument not raised at administrative level because record showed that Commerce actually considered issue); Natural Resources Def. Council, Inc. v. United States Envtl. Protection Agency, 824 F.2d 1146, 1151 (1987) (same); Washington Ass’n for Television and Children v. FCC, 712 F.2d 677, 682 n. 10 (D.C.Cir.1983) (citing cases). In SNR Roulements v. United States, 24 CIT -, -, 118 F.Supp.2d 1333, 1338-41 (2000), this Court determined that “Commerce improperly excluded imputed inventory and carrying costs from ‘total expenses’ when it had included these expenses in ‘total United States expenses’ ” because such action was contrary to the plain meaning of 19 U.S.C. § 1677a. This Court remanded the issue to Commerce, directing it to “include all expenses included in ‘total United States expenses’ in the calculation of ‘total expenses.’ ” Id. 118 F.Supp.2d at 1341. Since Commerce’s methodology and FAG’s and INA’s arguments in this case are practically identical to those presented in SNR Roulements, the Court adheres to its reasoning in SNR Roulements. The Court, therefore, finds that Commerce’s methodology was not in accordance with law. The Court remands this issue to Commerce to include all expenses included in “total United States expenses” in the calculation of “total expenses” for both FAG and INA. V. CV Home-Market Credit Expense Rate SKF contends that Commerce erred in “calculating a home market credit expense rate based on price, but applying that rate to cost.” See SKF’s Br. at 30. Specifically, SKF contends that Commerce “computed a credit expense rate based on the ratio of home market credit expense to home market gross unit price” when “calculating an average home market credit expense to be deducted from CV.” Id. Commerce applied the home-market credit expense rate to the COP, rather than price, of each model to derive a per unit amount for home-market credit expense. See id. Commerce then deducted the per unit expense amount in the CV calculation. See id. SKF maintains that applying a home-market credit expense rate based upon price to cost is contrary to the “fundamental principle inherent in all antidumping rate and factor calculations, that the calculation of the rate and its application must be consistent.” SKF’s Reply Supp. Mot. J. Agency R. (“SKF’s Reply”) at 20. Commerce agrees that it erred “by calculating a home market credit expense rate based upon price but applying that rate to cost,” and asks the Court to remand the matter for recalculation of SKF’s home-market credit cost. Def.’s Mem. at 70-71. Torrington, however, maintains that Commerce’s methodology is reasonable and should be affirmed. See Torring-ton’s Resp. at 35-37. In light of the foregoing, the Court remands this issue to Commerce to reconsider its decision to calculate the home-market credit expense rate based upon price and then apply that rate to cost. VI. Commerce’s Determination of the Level of Trade for NTN’s CEP Sales and Denial of a Level of Trade Adjustment 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. Pt. 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. Pt. 353.58). The URAA amended the anti-dumping 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 the 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 a 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 an LOT adjustment to NV under the following conditions: The price described in [§ 1677b (a)(1)(B), i.e., NV,] shall also be increased or decreased to make due allowance for any difference (or lack thereof) between the export price or 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 an 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 Statement of Administrative Action (“SAA”), H.R. Doc. 103-316, at 829 (1994), reprinted in 1994 U.S.C.C.A.N. 4040 (stating that “if a respondent claims [an 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., Ltd., 190 F.3d 1321, 1330 (Fed. Cir.1999) (noting that a respondent bears the burden of establishing entitlement to an LOT adjustment). When the available data does not provide an appropriate basis to grant an LOT adjustment, but NV is established at an 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 sales of the foreign like product but not more than the amount of such expenses for which a deduction is made [from CEP] under [19 U.S.C. § 1677a(d)(l)(D) ].” 19 U.S.C. § 1677b(a)(7)(B). 2. Commerce’s LOT Methodology During this review, Commerce applied the following LOT methodology. See Final Results, 62 Fed.Reg. at 2105; Preliminary Results, 61 Fed.Reg. at 35,718. 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 Final Results, 62 Fed.Reg. at 2105. Wfhen 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. 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 in order to arrive at, as the term CEP makes clear, a ‘constructed’ export price,” that is, it is intended to reflect as closely as possible a price corresponding to an EP between non-affiliated exporters and importers. Id. at 2107. Once the starting price is adjusted under § 1677a(d), Commerce has a “hypothetical transaction price that would likely have been charged to the first purchaser in the United States had that purchaser been unaffiliated to the exporter.” Def.’s Mem. at 49-50. The next step in its LOT analysis is to determine whether sales in the home-market exist that are at the same LOT as the adjusted CEP sales. In making such a determination, Commerce examines whether the home-market sales are “at different stages in the marketing process than the export price or CEP,” that is, Commerce reviews and compares the distribution systems in the home-market and U.S. export markets, “including selling functions, class of customer, and the level of selling expenses for each type of sale.” Final Results, 62 Fed.Reg. at 2105. If the adjusted CEP sales and the NV sales are at a different LOT, Commerce then considers whether an LOT adjustment is appropriate. In determining the propriety of an adjustment to NV, Commerce determines whether two conditions specified in § 1677b(a)(7)(A) are satisfied: (1) “there must be differences between the actual selling activities performed by the exporter at the level of trade of the U.S. sale and the level of trade of the comparison market sales used to determine NV”; and (2) “the differences must affect price comparability as evidenced by a pattern of consistent price differences between sales at the different levels of trade in the market in which NV is determined.” Preliminary Results, 61 Fed.Reg. at 35,718. If there is no pattern of consistent price differences, no adjustment is made. Finally, for CEP sales, if NV is established at an LOT which constitutes a more advanced stage of distribution than the CEP LOT, and if there is no appropriate basis for granting an LOT adjustment, Commerce makes a CEP offset to NV under § 1677b(a)(7)(B). See id. 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 an LOT different from the home-market sales. See NTN’s Mem. Supp. Mot. J. Agency R. (“NTN’s Mem.”) at 6-8. 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 7-8. 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 an LOT adjustment for its CEP sales. See id. at 7; NTN’s Reply at 8. 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 Reply at 5-6 (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 7. 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 an LOT adjustment, requires Commerce to compare CEP, not the “unadjusted” starting price of CEP, with NV. See Def.’s Mem. at 52-61. 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 52-53. According to Commerce, the adjusted CEP price is to be compared to prices in the home-market based on the same LOT whenever it is practicable; when it is not practicable and the LOT difference affects price comparability, Commerce makes an LOT adjustment. See id. at 54. Commerce makes a CEP offset when “the home market sales are at a different [LOT] but there is not sufficient data to determine whether the difference in levels of trade affects price comparability.” Id. If the CEP price is not adjusted before it is compared under the approach advocated by NTN and Tor-rington, “there will always be substantial deductions from the resale prices in the United States (because they are mandatory),” but they “will be compared to resale prices in the home market from which virtually [there will] never be any equivalent deductions,” thus creating a substantial imbalance and a skewed comparison between NV and CEP. Id. at 55 (emphasis in the original). Commerce further asserts that the Court should not follow Borden because it is not based upon persuasive statutory analysis. See id. at 56-61. Commerce maintains that the court in Borden rejected the plain language of the statute because although § 1677b(a)(7)(B) does not specify that § 1677a(d) adjustments are to be made to the CEP starting price, “if the statute is read as a whole, it is obvious that the term ‘level of trade of the constructed export price’ refers to an adjusted price because ‘constructed export price’ means the price to the unaffiliated purchaser in the United [States] as adjusted pursuant to section 1677a(b).” Id. at 58. Commerce claims that it properly denied an LOT adjustment for NTN’s CEP sales because NTN failed to establish its entitlement to an LOT adjustment. See id. at 61-65. Commerce was unable to calculate an LOT adjustment because “NTN did not have a level of trade equivalent to the CEP level of trade in the home market,” making it impossible to quantify the difference in price between the CEP LOT and the home-market LOT. Id. at 64. Commerce demonstrates that NTN does not contend that Commerce failed to properly apply its methodology to its data, but “only that it should have used the starting price for determining the CEP” LOT. Id. Torrington generally agrees with Commerce’s positions, emphasizing that: (1) Commerce correctly made § 1677a(d) adjustments to the starting price of CEP prior to determining an LOT for NTN’s CEP sales; and (2) properly denied an LOT adjustment for NTN’s CEP sales. See Torrington’s Resp. at 39-47. Accordingly, Torrington contends that this Court should not disturb Commerce’s reasonable interpretation of the statute as applied to the record evidence. See id. SKF generally agrees with the contentions of Commerce and Torrington. See SKF’s Resp. at 43-59. C. Analysis Under the first step of Chevron U.S.A. Inc. v. Natural Resources Defense Council, Inc., 467 U.S. 837, 842, 104 S.Ct. 2778, 81 L.Ed.2d 694 (1984), the Court must ascertain whether the antidumping statute’s plain language speaks to the precise question at issue. Here, 19 U.S.C. § 1677b(a)(7) specifically provides that to make an LOT adjustment to NY, Commerce must determine if there is “a difference in level of trade between the ... constructed export price and normal value.” In other words, Commerce must first calculate CEP before performing its LOT analysis. Title 19, United States Code, § 1677a provides the following guidance for determining CEP: (b) Constructed export price The term “constructed export price” means the price at which the subject merchandise is first sold (or agreed to be sold) in the United States before or after the date of importation by or for the account of the producer or exporter of such merchandise or by a seller affiliated with the producer or exporter, to a purchaser not affiliated with the producer or exporter, as adjusted under subsections (c) and (d) of this section. (emphasis added). Thus, the starting price under § 1677a(b) must be “adjusted under subsections (c) and (d)” of § 1677a to determine CEP. Also, the language of § 1677a(c) as well as § 1677a(d) clearly provides that subsection (c) and (d) adjustments must be made to the starting price used to “establish” CEP. See 19 U.S.C. § 1677a(e); 19 U.S.C. § 1677a(d) (“For purposes of this section, the price used to establish constructed export price shall also be reduced by....”). The Court, therefore, finds that § 1677a unambiguously requires Commerce to make subsection (c) and (d) adjustments to § 1677a(b)’s starting price to determine CEP. This Court has already ruled on this issue. See NTN Bearing, 24 CIT at -, 104 F.Supp.2d at 127-31; SNR Roulements, 24 CIT at-, 118 F.Supp.2d at 1341-45. This Court found that since the language of § 1677a is unambiguous in how to calculate CEP, it would not follow the rationale of Borden. See generally Connecticut Nat’l Bank v. Germain, 503 U.S. 249, 253-54, 112 S.Ct. 1146, 117 L.Ed.2d 391 (1992) (“[Cjourts must presume that a legislature says in a statute what it means and means in a statute what it says there. When the words of a statute are unambiguous, then, this first canon is also the last: ‘judicial inquiry is complete’ ”) (citations omitted); VE Holding Corp. v. Johnson Gas Appliance Co., 917 F.2d 1574, 1579 (Fed.Cir.1990) (“It is axiomatic that statutory interpretation begins with the language of the statute. If ... the language is clear and fits the case, the plain meaning of the statute will be regarded as conclusive”) (citations omitted). Any imbalance that § 1677a’s definitions of CEP creates with respect to Commerce’s LOT analysis when comparing NV with CEP must be rectified by Congress because neither the Court nor Commerce may rewrite the statute. Thus, the Court finds that Commerce properly made § 1677a(d) adjustments to NTN’s starting price in order to arrive at CEP and make its LOT determination. The Court also finds that Commerce’s decision to deny NTN an LOT adjustment is supported by substantial evidence. Section 1677b(a)(7)(A) permits Commerce to make an LOT adjustment “if the difference in level of trade ... involves the performance of different selling activities[ ] and ... 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.” 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; therefore, Commerce was unable to “determine whether there was a pattern of consistent price differences between the [LOTs] based on respondent’s [home-market] sales of merchandise under review.” See Final Results, 62 Fed.Reg. at 2106. 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 [LOT] 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 further consider the selling expenses of other’ producers in the foreign market for the same product or other products.” Id. (quoting SAA at 830). Commerce did not have the infonnation that would have supported the use of these alternative methods. See id. Consequently, with respect to CEP sales which Commerce was unable to quantify an 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. In sum, Commerce acted well within the directive of the statute in denying the LOT adjustment and granting a CEP offset instead. ' See 19 U.S.C. § 1677b(a)(7). VII. Commerce’s Recalculation of NTN’s Home-Market and United States Indirect Selling Expenses Without Regard to Level of Trade A. Background In its preliminary calculations, Commerce had calculated NTN’s United States indirect selling expenses without regard to LOTs. See Final Results, 62 Fed.Reg. at 2105. NTN argued that Commerce should have recalculated NTN’s United States selling expenses to reflect its reported indirect selling expense allocations based on LOT. See id. Torrington, in turn, contended that Commerce should reject NTN’s indirect selling expense allocations based on LOT because they bear no relationship to the way in which NTN incurs the expenses. See id. Commerce responded that in three prior reviews it determined that NTN’s methodology for allocating its indirect selling expenses based on LOTs did not bear any relationship to the manner in which NTN incurred these United States selling expenses and its methodology led to distorted allocations. See id. Commerce noted that the court upheld its methodology in NTN Bearing Corp. v. United States (“NTN”), 19 CIT 1221, 1233-34, 905 F.Supp. 1083, 1094-95 (1995). See id. Commerce “found that the allocations NTN calculated according to levels of trade were misplaced and that it could not conclusively demonstrate that its [indirect selling expenses] vary across levels of trade.” Id. Because Commerce found during this POR that NTN “did not provide sufficient evidence demonstrating that its selling expenses are attributable to levels of trade,” the agency recalculated NTN’s United States indirect selling expenses to represent such selling expenses for all United States sales. Id. B. Contentions of the Parties Although recognizing that in NTN, 19 CIT at 1233-34, 905 F.Supp. at 1094-95, the Court decided against an LOT adjustment for NTN’s indirect selling expenses because it failed to quantify the expenses at each LOT, NTN “respectfully requests that this court reconsider this issue based on the facts of this case.” See NTN’s Mem. at 10-11. NTN also asserts that if Commerce had conducted its LOT analysis properly, it would have found more than one LOT in the United States. See NTN’s Reply at 9. NTN notes that Commerce has accepted NTN’s methodology of allocating its United States indirect selling expenses based on LOT in previous reviews and even stated that NTN’s “‘methodology prevents, rather than creates, certain distortions.’ ” NTN’s Reply at 10-11 (quoting Tapered Roller Bearings and Parts Thereof, Finished and Unfinished, from Japan and Tapered Roller Bearings, Four Inches or Less in Outside Diameter, and Components Thereof, From Japan; Final Results of Antidumping Duty Administrative Reviews and Revocation in Part of an Antidumping Finding, 61 Fed.Reg. 57,-629, 57,636 (Nov. 7, 1996)). Accordingly, NTN requests that the Court remand the matter to Commerce and instruct it to recalculate NTN’s margins by using NTN’s reported indirect selling expense LOT allocations. See id. at 11. Commerce responds that it found only one LOT in the United States market and, moreover, there is no evidence of quantitative analysis tying the allocation method to the expenses. See Def.’s Mem. at 66. Commerce asserts that NTN only'quantified the allocation itself and, therefore, the Court should sustain the agency’s recalculation of NTN’s United States indirect selling expenses. See id. at 66-67. Torrington supports Commerce and argues that NTN has not distinguished the current review from previous reviews in which the Court affirmed Commerce’s recalculation of NTN’s indirect selling expenses without regard to LOT. See Tor-rington’s Resp. at 48-49. C. Analysis The Court disagrees with NTN that it adequately supported its LOT adjustment claim for its reported United States indirect selling expenses. Although NTN purports to show that it incurred different selling expenses at different trade levels, the evidence to which it points does not show that its allocation methodology reasonably quantifies the United States indirect selling expenses incurred at different LOTs. See NTN Bearing, 24 CIT at --, 104 F.Supp.2d at 131-88; NTN, 19 CIT at 1234, 905 F.Supp. at 1095. Given that NTN had the burden before Commerce to establish its entitlement to an LOT adjustment, its failure to provide the requisite evidence compels the Court to conclude that it has not met its burden of demonstrating that Commerce’s denial of the LOT adjustment was not supported by substantial evidence and was not in accordance with law. See NSK, 190 F.3d at 1330. Accordingly, the Court denies NTN’s remand request for recalculation of its margins using its reported United States indirect selling expense data. VIII. Constructed Export Price Profit .Calculation Without Regard to Level of Trade A. Background In calculating CEP, Commerce must reduce the starting price used to establish CEP by “the profit allocated to expenses described in paragraphs (1) and (2)” of § 1677a(d). 19 U.S.C. § 1677a(d)(3). Under 19 U.S.C. § 1677a(f) (1994), the “profit” that will be deducted from this starting price will be “determined by multiplying the total actual profit by [a] percentage” calculated “by dividing the total United States expenses by the total expenses.” Id. § 1677a(f)(l), (2)(A). Section 1677a(f)(2)(B) defines “total United States expenses” as the total expenses deducted under § 1677a(d)(l) and (2), that is, commissions, direct and indirect selling expenses, assumptions, and the cost of any further manufacture or assembly in the United States. Section 1677a(f)(2)(C) establishes a tripartite hierarchy of methods for calculating “total expenses.” First, “total expenses” will be “[t]he expenses incurred with respect to the subject merchandise sold in the United States and the foreign like product sold in the exporting country” if Commerce requested such expenses for the purpose of determining NV and CEP. Id. § 1677a(f)(2)(C)(i). If Commerce did not request these expenses, then “total expenses” will be “[t]he expenses incurred with respect to the narrowest category of merchandise sold in the United States and the exporting country which includes the subject merchandise.” Id. § 1677a(f)(2)(C)(ii). If the data necessary to determine “total expenses” under either of these methods is not available, then “total expenses” will be “[t]he expenses incurred with respect to the narrowest category of merchandise sold in all countries which includes the subject merchandise.” Id. § 1677a(f)(2)(C)(iii). “Total actual profit” is based on whichever category of merchandise is used to calculate “total expenses” under § 1677a(f)(2)(C). See id. § 1677a(f)(2)(D). During this POR, NTN argued that profit levels differed by LOT and had an effect on prices and CEP profit and, therefore, Commerce should calculate CEP profit on an LOT-specific basis rather than for each class or kind of merchandise. See Final Results, 62 Fed.Reg. at 2125. NTN reasoned that § 1677a(f)(2)(C) “expresses a preference for the [CEP] profit calculation to be done as specifically as possible with respect to sales in the appropriate markets of the subject merchandise or the narrowest category of merchandise which includes the subject merchandise.” Id. Commerce rejected NTN’s argument, concluding that: Neither the statute nor the SAA require us to calculate CEP profit on bases more specific than the subject merchandise as a whole. Indeed, while we cannot at this time rule out the possibility that the facts of a particular case may require division of CEP profit, the statute and SAA, by referring to “the” profit, “total actual profit,” and “total expenses” imply that we should prefer calculating a single profit figure. NTN’s suggested approach would also add a layer of complexity to an already complicated exercise with no guarantee that the result will provide any increase in accuracy. We need not undertake such a calculation (see Daewoo Electronics v. International Union, 6 F.3d 1511, 1518-19 (CAFC [C.A.Fed.]1993)). Finally, subdivision of the CEP-profit calculation would be more susceptible to manipulation. Congress has specifically warned us to be wary of such manipulation of the profit allocation (see S. Rep. 103-412, 103d Cong., 2d Sess at 66-67[, U.S. Code Cong. & Admin. News, 1994, p. 3773]). Id. B. Contentions of the Parties NTN contends that Commerce erred by refusing to calculate CEP profit on LOT-specific basis. See NTN’s Mem. at 11. Highlighting the “narrowest category of merchandise” language of § 1677a (f)(2)(C)(ii) and (Hi), NTN again argues that there is a clear statutory preference that profit be calculated on the narrowest possible basis. See id. at 11-12. Moreover, NTN claims that since CV profit is calculated by LOT and matching is by LOT, CEP profit should be calculated to account for differences in LOT. See id. at 12. NTN asserts that the mere fact that a calculation is difficult is not a valid reason to sacrifice accuracy. See id. at 13. NTN further asserts that Commerce’s speculation that an adjustment is susceptible to manipulation provides no grounds for rejecting an adjustment. See id. NTN, therefore, requests that the Court remand the issue to Commerce to calculate CEP profit on an LOT-specific basis. Commerce responds that it properly determined CEP profit without regard to LOT. See Def.’s Mem. at 68-70. Commerce notes, inter alia, that § 1677a(f) does not refer to LOT, that is, the statute does not require that CEP profit be calculated on an LOT-specific basis. See id. at 69. In addition, Commerce asserts that even assuming that a narrower basis for the CEP-profit calculation is warranted in some circumstances, NTN has not provided any factual support for such a deviation from Commerce’s standard methodology for calculating CEP profit. See id. at 70. Torrington generally agrees with Commerce’s CEP-profit calculation. See Tor-rington’s Resp. at 49-52. C. Analysis Section 1677a(f), as Commerce correctly notes, does not make any reference to LOT. Accordingly, the Court’s duty under Chevron is to review the reasonableness of Commerce’s statutory interpretation. See IPSCO, Inc. v. United States, 965 F.2d 1056, 1061 (Fed.Cir.1992) (quoting Chevron, 467 U.S. at 844, 104 S.Ct. 2778). This Court upheld Commerce’s refusal to calculate CEP on an LOT-specific basis in NTN Bearing, 24 CIT at -, 104 F.Supp.2d at 133-35, finding it to be reasonable and in accordance with law. The Court examined the language of the statute and concluded that the statute clearly contemplates that, in general, the “narrowest category” will include the class or kind of merchandise that is within the scope of an investigation or review. The Court based its conclusion on its examination of subsections (ii) and (iii) of § 1677a(f)(C)’s “total expense” definition. Both subsections refer to “expenses incurred with respect to the narrowest category of merchandise ... which includes the subject merchandise.” The term “subject merchandise” is defined as “the class or kind of merchandise that is within the scope of an investigation, a review, a suspension agreement, an order under this subtitle or section 1303 of this title, or a finding under the Antidumping Act, 1921.” 19 U.S.C. § 1677(25). Accordingly, as in NTN Bearing, the Court finds that Commerce reasonably interpreted § 1677a(f) in refusing to apply a narrower subcategory of merchandise such as one based on LOT. The Court, moreover, agrees with Commerce’s conclusion that a “subdivision of the CEP-profit calculation would be more susceptible to manipulation,” a result that Congress specifically warned Commerce to prevent. Final Results, 62 Fed.Reg. at 2125. Finally, even if the Court were to assume that a narrower basis for calculating CEP profit would be justified under some circumstances, the Court agrees with Commerce that NTN failed to provide adequate factual support of how the CEP profit calculation was distorted by Commerce’s standard methodology. IX. Commerce’s Refusal to Apply the Special Rule for Further Manufacturing to INA’s Constructed Export Price Sales — Exhaustion of Administrative Remedies Commerce argues that the Court should not entertain INA’s arguments because INA failed to raise the issue at the administrative level, thus failing to exhaust its administrative remedies. See Def.’s Mem. at 39-40. As discussed above, the application of the doctrine of exhaustion of administrative remedies is subject to several exceptions and ultimately lies within the discretion of the Court. See 28 U.S.C. § 2637(d); Cemex, 133 F.3d at 905. INA waived its right to have this claim heard by the Court by not bringing it forth during the administrative process. Additionally, there are no factors urging the Court to excuse INA’s failure to present this issue during the administrative process. INA presents no reason, let alone a compelling reason, for its failure to raise this claim below. Indeed, it appears that INA had several opportunities to raise the issue before Commerce. See Def.’s Mem. at 39^43. Allowing INA to proceed with its claim before the Court would be unfair and contrary to the principles underlying the exhaustion doctrine. See McKart v. United States, 395 U.S. 185, 194-95, 89 S.Ct. 1657, 23 L.Ed.2d 194 (1969) (party should be prohibited from seeking judicial review of a claim that was not appealed through the administrative process because: (1) “judicial review may be hindered by the failure of the litigant to allow the agency to make a factu