DECISION
This сase presents important questions concerning the interpretation of the 1994 amendments to the Tariff Act of 1930 (“Act”), codified in the United States Code in Chapter 4 of Title 19. We conclude that the amendments are ambiguous as to the
STATUTORY BACKGROUND
Resolution of this appeal requires an understanding of the antidumping statute, which was significantly amended by the Uruguay Round Agreements Act, Pub. L. No. 103-465, 108 Stat. 4809 (1994) (“URAA”). The URAA applies to administrative reviews initiated after January 1, 1995, and therefore governs this appeal. Torrington Co. v. United States,
Under the current antidumping statute, Commerce is required to impose anti-dumping duties on imported merchandise that is being sold, or is likely to be sold, in the United States at less than fair value to the detriment of a domestic industry. 19 U.S.C. § 1673. “The purpose underlying the antidumping laws is to prevent foreign manufacturers from injuring domestic industries by selling their products in the United States at less than ‘fair value,’ i.e., at prices below the prices the foreign manufacturers charge for the same products in their home markets.” Torrington Co.,
In оrder to make a fair comparison, certain adjustments must be made to the U.S. price and the normal value. Such adjustments are ¿nade in order to “reconstruct the price at a specific, ‘common’ point in the.chain of commerce, so that value can b.e fairly compared on an equivalent basis.” Koyo Seiko Co. v. United States,
The two adjustments involved here are directed to the problem posed by sales to affiliated entities. When an exporter makes a sale to an affiliated entity — for example, a wholly or partly owned distributor — the price is necessarily suspect. The risk is that an artificially low price may be charged to the affiliated distributor in the home market and an artificially high price charged to the affiliated distributor in the United States market. The consequence in each case is that a lower countervailing duty (or no duty at all) would be payable.
Constructed Export Price Deductions Under 19 U.S.C. § 1677a(d)(1)
When the foreign producer or exporter sells directly to an unaffiliated purchaser in the United States, Commerce uses EP as the U.S. price for purposes оf the comparison. 19 U.S.C. § 1677a(a). However, where a sale is made by a foreign producer or exporter to an affiliated purchaser in the United States, the statute provides for use of CEP as the United States price for purposes of the comparison. 19 U.S.C. § 1677a(b). All of the sales at issue in this appeal are CEP sales.
[T]he price used to establish constructed export price shall also be reduced by— (1) the amount of any of the following expenses generally incurred by or for the account of the producer or exporter, or the affiliated seller in the United States, in selling the subject merchandise (or subject merchandise to which value has been added)—
(A) commissions for selling the subject merchandise in the United States;
(B) expenses that result from, and bear a direct relationship to, the sale, such as credit expenses, guarantees and warranties;
(C) any selling expenses that the seller pays on behalf of the purchaser; and
(D) any selling expenses not deducted under subparagraph (A), (B), or (C).
19 U.S.C. § 1677a(d) (emphasis added). The first issue in this case involves the subsection (d)(1)(D) deductions.
Here the parties differ over the class of expenses included within subsection (d)(1)(D). Under Commerce’s theory, the objective of the subsection (d)(1)(D) deductions is to adjust the price of the first sale by the U.S. affiliate to an unaffiliated purchaser so that it corresponds as closely as possible to the EP, i.e., so that CEP and EP reflect the same level of trade, and comparable comparisons using either EP or CEP can be made to normal value. As stated in Commerce’s post-URAA regulation which formalized the methodolоgy at issue here:
In establishing constructed export price under section 772(d) of the Act [19 U.S.C. § 1677a(d)], the Secretary [of Commerce] will make adjustments for expenses associated with commercial activities in the United States that relate to the sale to an unaffiliated purchaser, no matter where or when paid.
19 C.F.R. § 351.402(b).
On the other hand, appellant Micron Technology, Inc. (“Micron”) urges on this appeal that the provision, on its face, provides for the deduction of “any” indirect selling expenses, and that Commerce’s dеductions were too limited. Micron contends that the statute obligates Commerce to deduct not only those expenses specifically associated with the sale to the unaffiliated customer in the United States, but also that portion of the indirect selling expenses incurred abroad that is allocable to United States sales.
Level of Trade Adjustment
The statute further requires Commerce to establish normal value “to the extent practicable, at the same level of trade as the export price or constructed export
When Commerce is unable to find sales in the foreign market at the same level of trade as the sales in the United States, it will compare sales in the United States and foreign markets at a different level of trade. In such cases, the antidumping statute requires Commerce to increase or decrease the normal value to account for the difference in the level of trade, if that difference:
(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.
19 U.S.C. § 1677b(a)(7)(A); see also 19 C.F.R. § 351.412(a-b).
In some instances, the level of trade in the home market will constitute a more advanced stage of distribution than the level of tradе in the United States, yet Commerce will lack sufficient data regarding the sales in the two markets to make a level of trade adjustment, that is, it will be unable to determine how much to reduce the foreign sale price to arrive at a price comparable to the U.S. price. In those cases, the statute provides for the award of a “constructed export price offset” (“CEP offset”), i.e., a reduction in normal value equal to “the amount of indirect selling expenses incurred in the country in which normal value is determined on sales of the foreign like product...” 19 U.S.C. § 1677b(a)(7)(B). The effect is to reduce the price of the more advanced level of trade by “indirect selling expenses” that have been included in the price on the apparent theory that such costs would not have been incurred if the sale had been made on a less advanced level of trade. However, the “CEP offset” may not exceed “the amount of such expenses for which a deduction is made under section 1677a(d)(l)(D).” Id.
Here the parties disagree over whether the amended statute requires Commerce to deduct the selling expenses enumerated in 19 U.S.C. § 1677a(d) from CEP before making the level of trade comparison. According to Commerce, “[t]he statute directs the Department to determine normal value at the LOT [level of trade] of the CEP, which includes any CEP deductions under section 772(d).” Preamble,
FACTUAL BACKGROUND
This particular case involves the determination of dumping margins for impоrts
Appellant Micron, a United States manufacturer of DRAMS, petitioned Commerce on April 22, 1992, for an antidump-ing investigation to determine whether Korean producers of DRAMS were selling the subject merchandise in the United States at less than fair value.
Following its antidumping investigation, Commerce made an affirmative determination of sales at less than fair value and accordingly published an antidumping order on DRAMS from Korea in May, 1993. Antidumping ■ Duty Order and Amended Final Determination: Dynamic Random Access Memory Semiconductors of One Megabit and Above from the Republic of Korea, 58 Fed. Reg. 27,520 (May 10,1993). At the request of Micron and three respondents (including LG Semicon), Commerce initiated an administrative review of the antidumping order on June 15, 1995, covering the period of review from May 1, 1994, through April 30, 1995. Initiation of Antidumping and Countervailing Duty Administrative Reviews, 60 Fed. Reg. 31,-447 (June 15, 995).
On January 7, 1997, Commerce issued its final results of its administrative review, assigning a de minimis dumping margin. Dynamic Random Access Memory Semiconductors of One Megabit or Above from the Republic of Korea; Final Results of Antidumping Duty Administrative Review, 62 Fed. Reg. 965, 968 (Jan. 7, 1997) (“Final Results”). Two issues in the Final Results are pertinent to this appeal.
Constructed Export Price Deductions Under 19 U.S.C. § 1677a(d)(l)(D)
The first issue (“Issue 1”) involves Commerce’s interpretation of 19 U.S.C. § 1677a(d)(l)(D), which, as noted above, mandates that the “price used to establish constructed export price shall also be reduced by any selling expenses not deducted under” the other subdivisions of subsection (d)(1). In computing the U.S. price for the subject merchandise, Commerce interpreted this provision to exclude from the deductions indirect selling expenses incurred by LG Semicon in Korea that were not directly related to sales to an unaffiliated purchaser in the United States.
In deciding not to deduct these indirect selling expenses from the U.S. price, Commerce reasoned that the indirect selling expenses at issue did “not result from or bear relationship to selling activities in the United States,” and accordingly it declined to deduct them. Final Results,
Level of Trade Adjustment
The second issue (“Issue 2”) involves Commerce’s methodology used to conduct the level of trade analysis.
Micron also appealed this determination to the Court of International Trade. On that appeal, Micron argued that the statute did not authorize Commerce to deduct the selling expenses enumerated in 19 U.S.C. § 1677a(d) from the starting price of LG Semicon’s CEP sales before making the level of trade comparison. The court agreed with Micron and held that Commerce’s methodology contravened the statute. In reaching this decision, the court relied on its earlier decision in Borden, Inc. v. United States,
Micron timely appealed the Court of International Trade’s disposition of Issue 1 to this court. LG Semicon filed a timely cross-appeal as to Issue 2.
DISCUSSION
I.
Jurisdiction
This court has jurisdiction over this appeal pursuant to 28 U.S.C. § 1295(a)(5). “When reviewing anti-dumping determinations made by Commerce, this court applies anew the standard of review applied by the Court of International Trade in its
We review questions of statutory interpretation without deference. U.S. Steel Group v. United States,
II.
Constructed Export Price Deductions Under 19 U.S.C. § 1677a(d)(1)
Before this court, Micron argues that the plain text of 19 U.S.C. § 1677a(d)(l), the SAA, the legislative history of the statute, and the statute’s purpose require the deduction from the starting price of all selling expenses related to CEP sales.
The Language of the Statute
Micron urges that the statutory language itself requires the deduction of all selling expenses. As noted above, subsection D provides for the deduction of “any selling expenses not deducted under sub-paragraph (A), (B), or (C).” 19 U.S.C. § 1677a(d)(l) (emphasis added). Micron and amici point us to cases holding that the term “any” necessarily means “all.” See United States v. Rosenwasser,
While we agree that the word “any” necessarily includes “all,” the real question here is “all of what”? We conclude that the description of the “what” in the statute is ambiguous, as the statute does not de-fíne the “selling expenses” within subsection D. We reach this conclusion for several reasons. Application of the interpretive rule of ejusdem generis to § 1677a(d)(l) suggests that Congress intended subsection D to encompass the same types of expenses as are inсluded in subsections A, B and C.
As this court has previously stated:
Under the rule of ejusdem generis, which means “of the same kind,” where an enumeration of specific things is followed by a general word or phrase, the general word or phrase is held to refer to things of the same kind as those specified.
Sports Graphics, Inc. v. United States,
The plain text of the statute and the accompanying SAA make it clear that the
In short, the only expenses deductible under the first three subsections of 19 U.S.C. § 1677a(d)(l) are those expenses arising specifically out of the sale of the subject merchandise in the United States to an unaffiliated purchaser, as opposed to those general expenses incurred by the foreign producer or exporter in all sales, without regard to the identity or location of the purchaser. Subsection D, in turn, is а general provision which merely provides for the deduction of “any selling expenses not deducted under subparagraph (A), (B), or (C).” Under these circumstances, subsection D was at least ambiguous, and it was reasonable for Commerce to interpret subsection D as encompassing the same types of expenses as those enumerated in the previous subsections.
The plain text of 19 U.S.C. § 1677a(f) also supports Commerce’s reading of the statute. Subsection (f), a new provision regarding profit adjustment for CEP sales, effectively provides for the deduction of profit on “United States expenses,” which are defined to be “the total expenses described in subsections (d)(1) and (d)(2) of this section.” 19 ¡U.S.C. § 1677a(f)(2)(B). By describing the expenses to be deducted under 19 U.S.C. § 1677a(d)(l) as “United States expenses,” subsection (f) assumes that the expenses at issue are indeed those expenses arising specifically out of the sale of the subject merchandise in the United States. Even more to the point, the SAA instructs that this profit deduction applies only to profits “allocable to selling, distribution and further manufacturing activities in the United States.” SAA at 824, reprinted in 1994 U.S.C.C.A.N. 4040, 4164. We agree with Commerce that this subsection thus suggests that the “coverage of section 772(d)(1) [19 U.S.C. § 1677a(d)(l)] is limited to those expenses incurred in connection with a sale in the United States.” Preamble,
The SAA and the Legislative History
Micron next argues that in enacting the URAA, Congress did not intend to alter the provisions governing the deduction of selling expenses in the previous law. Micron asserts that the SAA, which purported to identify all changes in the statutory approach following the enactment of the URAA, SAA at 656-57, reprinted in 1994 U.S.C.C.A.N. 4040, 4040^41, did not mention any change with respect to selling expenses. The SAA, of course, is more than mere legislative history. Congress has instructed that “[t]he statement of 'administrative action approved by the Congress under [19 U.S.C. § 3511(a)] shall be regarded as an authoritative expression by the United States concerning the interpretation and application of the Uruguay Round Agreements and this Act in any judicial proceeding in which a question arises concerning such interpretation or application.” 19 U.S.C. § 3512(d).
[AJmended section 772(d)(1)(D) [19 U.S.C. § 1677a(d)(l)(D)] provides, as under current law, for the deduction of indirect selling expenses. The Committee intends that this category will, as under current practice, encompass those expenses that do not result from, or cannot be tied directly to specific sales, but that may reasonably be attributed to such sales.
S. Rep. No. 103-412, at 65 (1994).
Micron further argues that the provision of the pre-URAA statute corresponding to current subsection D was interpreted by the Department of Commerce to require the deduction of all indirect sеlling expenses, and that the Court of International Trade reached a similar conclusion in Silver Reed America Inc. v. United States,
Micron’s argument has considerable force, but we are not convinced.
First, we do not read the SAA to state that current law as to the expenses enumerated in 19 U.S.C. § 1677a(d) is not being changed. Indeed, the SAA suggests to the contrary. It lists the adjustments enumerated in a different section — 19 U.S.C. § 1677a(c) — and states that “[t]hese adjustments have not changed from current law.” SAA at 823, reprinted in 1994 U.S.C.C.A.N. 4040, 4163. But then in the next paragraph it states:
Additionally, under new section 772(d) [19 U.S.C. § 1677a(d)], constructed export price will be calculated by reducing the price of the first salе to an unaffiliated customer in the United States by the amount of the following expenses (and profit) associated with economic activities occurring in the United States: ... The deduction of profit is a new adjustment in U.S. law, consistent with the language of the [Antidumping] Agreement, which reflects that constructed export price is now calculated to be, as closely as possible, a price corresponding to an export price between non-affiliated exporters and importers.
Id. The fact that the profit deduction is “a new adjustment in U.S. law” hardly suggests that the § 1677a(d) expense deductions, unlike the § 1677a(e) adjustments, have not been changed.
Second, even if we assume that Congress did not intend to change the law with respect to the deduction of indirect selling expenses, there is no evidence that Congress understood the “law” to be anything more than the earlier statutory provisions with respect to selling expenses. The pre-URAA statute, while explicit with respect to the deduction of certain selling expenses, was ambiguous as to what other selling expenses were to be deducted. It merely provided, in pertinent part, for the deduction of “expenses generally incurred by or for the account of the exporter in the United States in selling identical or substantially identical merchandise.” 19 U.S.C. § 1677a(e)(2) (1988). In short, the pre-URAA statute does not define the scope of indirect selling expenses to be deducted. Therefore, Congress at best determined to continue the existing ambiguity.
Third, no claim is made that the Silver Reed decision was called to Con
For example, in Commissioner v. Glenshaw Glass Co.,
Fourth, no claim is made that the Silver Reed decision was a settled judicial interpretation of the statute. The decision of the Court of International Trade on this issue was hardly the last word regarding the interpretation of the pre-URAA anti-dumping statute. Under these circumstances we would not assume that Congress intended to adopt sub silentio the single decision of a trial court, even if it had been aware of the decision. In United States v. Powell,
Finally, while Commerce had interpreted the pre-URAA statute to provide for the deduction of indirect selling expenses related to sales in the United States, we do not assume that Congress silently intended to adopt such an interpretation by the agency. Again, this pre
Micron argues that the specific language of the Senate and House Committee reports refers to “current practice” and states that section 1677a(d)(l)(D) will “encompass those expenses that do not result from, or cannot be tied directly to specific sales, but that may reasonably be attributed to suсh sales.” S. Rep. No. 103-412, at 65 (1994). This, says Micron, makes clear that Congress was not limiting the deductible expenses to those solely related to U.S. sales.
Unfortunately for Micron, the reports are ambiguous. The reference to “current practice” standing alone is unclear, and the Senate report, for example, can be read as intended to ensure that it is not necessary to tie expenses to individual U.S. sales or not necessary to tie expenses to U.S. sales at all. Those reports fall far short of demonstrating that Congress was aware of Commerce’s interpretation, or that it endorsed it.
Any assumption that Congress intended to freeze an administrative interpretation of a statute, which was unknown to Congress, would be entirely contrary to the concept of Chevron — which assumes and approves the ability of administrative agencies to change their interpretation. As the Supreme Court noted, “[t]he power of an administrative agency to administer a congressionally created ... prоgram necessarily requires the formulation of policy and the making of rules to fill any gap left, implicitly or explicitly, by Congress.” Chevron,
Congressional Purpose
Micron next argues that the effect of Commerce’s interpretation is to exclude from the scope of 19 U.S.C. § 1677a(d)(l)(D) those expenses incurred outside of the United Statеs, a result Micron asserts is contrary to the intent of Congress.
Micron also argues that deducting all selling expenses serves the purposes of
In fact, Commerce has not imposed any geographic limitation on those expenses deductible under subsection D. For example, Commerce’s regulation provides, in pertinent part, that Commerce “will make adjustments for expenses associated with commercial activities in the United States that relate to the sale to an unaffiliated purchaser, no matter where or when paid.” 19 C.F.R. § 351.402(b) (emphasis added). As Commerce explained in the Preamble accompanying that regulation:
[T]he phrase “no matter wherе or when paid” is intended to indicate that if commercial activities occur in the United States and relate to the sale to an unaffiliated purchaser, expenses associated with those activities will be deducted from CEP even if, for example, the foreign parent of the affiliated U.S. importer pays those expenses.
Preamble,
In several instances since the passage of the URAA, Commerce has deducted indirect selling expenses physically incurred overseas because they were “associated with economic activities occurring in the United States.” SAA at 823, reprinted in 1994 U.S.C.C.A.N. 4040, 4163. See, e.g., Certain Stainless Steel Wire Rods from France, 61 Fed. Reg. 47,874, 47,881-82 (Sept. 11, 1996) (final admin, review); Large Newspaper Printing Presses and Components Thereof, Whether Assembled or Unassembled, From Germany, 61 Fed. Reg. 38,166, 38,173-74 (July 23, 1996) (final determination).
Indeed, it is Micron’s interpretation that makes no sense in terms of the statutory purpose. As discussed above, the overarching purpose of the antidumping statute is to permit a “fair, ‘apples-to-apples’ comparison between foreign market valuе and United States price.... ” Torrington Co.,
The deduction of profit is a new adjustment in U.S. law, consistent with the language of the [Antidumping] Agreement, which reflects that constructed export price is now calculated to be, as closely as possible, a price corresponding to an export price between non-ajfiliated exporters and importers.
SAA at 823, reprinted in 1994 U.S.C.C.A.N. 4040, 4163 (emphasis and brackets added); see also Preamble,
To calculate CEP at a price corresponding to EP, Commerce logically must deduct only those expenses incurred solely in CEP transactions, i.е., only those expenses associated with the sale of subject merchandise to an unaffiliated purchaser in the United States by a party affiliated with the foreign producer or exporter. As discussed above, the expenses at issue here are incurred by LG Semicon regardless of whether it uses an affiliated distributor in the United States to market its products, or sells directly to unaffiliated purchasers in the United States. It is undisputed that these expenses are not deducted when calculating EP. The deduction of these expenses from CEP, without corresponding deductions from EP, would cause adjusted CEP not to correspond to EP, a result contrary to the language of the SAA.
In other words, the expenses to be deducted from the CEP starting price to make it comparable to EP are those expenses associated with the more advanced
In sum, we find, contrary to Micron’s suggestion, that 19 U.S.C. § 1677a(d)(l)(D) is ambiguous as to the scope of the indirect selling expenses to be deducted under the CEP methodology. We further find that the Department of Commerce’s interpretation of that provision in the administrative decision under review is reasonable, and therefore entitled to deference under Chevron. Accordingly, we affirm the Court of International Trade as to Issue 1.
Ill
Level of Trade Adjustment
We now turn to the second issue, concerning the level of trade adjustment. Here Micron contends, and the Court of International Trade agreed, that the deductions to the starting price in CEP sales set forth in 19 U.S.C. § 1677a(d) and discussed above should not be made before the level of trade comparison is made. Resolution of this issue requires an understanding of how the level of trade adjustment works.
As discussed above, the level of trade adjustment is designed to ensure that the normal value and U.S. price are being compared for countervailing duty purposes at the same level of trade, that is, at the same marketing stage in the chain of distribution that begins with the manufacturer. “Each more remote level [of trade] must be characterized by an additional layer of selling activities, amounting in the aggregate to a substantially different selling function.” Preamble,
Micron contends that deducting the selling expenses set forth in 19 U.S.C. § 1677a(d) before making the level of trade comparison in CEP sales is unfair because the deduction changеs the level of trade, and the Court of International Trade agreed, relying on its holding and reasoning in Borden Inc. v. United States,
Whatever the theoretical merits or demerits of the two different approaches, the plain text of the statute and the text of
The clear language of the SAA further demonstrates that Congress intended that Commerce use the adjusted price for CEP sales after the subsection (d) deductions are made, rather than the starting price, when making the level of trade comparison. The SAA states that the amended statute requires Commerce “to the extent practicable, [to] establish normal value based on home market (or third country) sales at the same level of trade as the constructed export price or the starting price for the export price.’ SAA at 829, reprinted in 1994 U.S.C.C.A.N. 4040, 4167 (emphasis added). Congress’ intent is clear: when making a level of trade comparison for EP sales, Commerce is to use the “starting price,” i.e., the unadjusted price. In contrast, when making a level of trade comparison for CEP sales, Commerce is to use the “constructed” price, i.e., the price which reflects the deductions made pursuant to § 1677a(d).
We note that it can be argued under these provisions that an adjustment to CEP under subsection (c) of 19 U.S.C. § 1677a is also required before making the level of trade comparison. That issue is not presented here. We need not (and do not) decide thе question as to the necessity of the subsection (c) adjustments before making the level of trade comparison.
Micron next argues that the practical effect of Commerce’s methodology in requiring the § 1677a(d) deductions is to improperly require, in every case, either a level of trade adjustment or a CEP offset. Commerce itself has recognized that “[t]he statute clearly anticipates that an adjustment for differences in levels of trade will not be necessary every time the Department [of Commerce] uses CEP.” Pream
Furthermore, the CEP offset will not be automatic. Indeed, as Commerce explained in its Preamble:
Some commenters suggested that the CEP offset is “automatic.” This is not the case. The Department will calculate CEP by deducting only selling expenses and profit associated with selling activities in the United States. Thus, the resulting CEP will retain an element of selling expenses and an element of profit, as do directly observed export prices. We do not agree that there never will be comparable sales in the foreign market.
In sum, we find that the statute unambiguously requires Commerce to deduct the selling expenses set forth in 19 U.S.C. § 1677a(d) before making a level of trade comparison, and we reject the holding and rationale of the Court of International Trade in Borden, Inc. v. United States,
CONCLUSION
For the foregoing reasons, the decision of the Court of International Trade is affirmed in part and reversed in part.
AFFIRMED IN PART AND REVERSED IN PART.
COSTS
No costs.
Notes
. All statutory references are to the 1999 version of the United States Code, unless otherwise indicated.
. The regulations adopted by Commerce following the administrative review at issue here are not, of course, retroactive. See 19 C.F.R. § 351.701; see also Bowen v. Georgetown Univ. Hosp.,
. As noted below, the SAA is "an authoritative expression by the United States concerning the interpretation and application of the Uruguay Round Agreements and this Act in any judicial proceeding in which a question arises concerning such interpretation or application.” 19 U.S.C. § 3512(d).
. This was the parties' second request for an administrative review of Commerce’s May, 1993, antidumping order. Following the first administrative review, Commerce assigned a dumping margin of 0.00% to LG Semicon. Dynamic Random Access Memory Semiconductors of One Megabit or Above from the Republic of Korea, 61 Fed. Reg. 20,216, 20,-222 (May 6, 1996) (final admin, review). This appeal does not challenge the results of that review.
. In its Preliminary Results, Commerce had initially deducted these indirect selling expenses from the U.S. price. Dynamic Random Access Memory Semiconductors of One Megabit or Above from the Republic of Korea, 61 Fed. Reg. 36,029, 36,030 (July 9, 1996) (prelim, admin, review). Prior to the issuance of the Final Results, however, Commerce concluded that the amended anti-dumping statute barred the deduction of these expenses.
. As stated above, Commerce subsequently formalized this methodology as a regulation. 19 C.F.R. § 351.402.
. As stated above, Commerce subsequently formalized this methodology as a regulation. 19 C.F.R. § 351.412.
. The United States did not join in LG Semi-con’s cross-appeal. However, the United States did appeal and brief this issue in Borden, Inc. v. United States, Nos. 99-1575, 99-1576,
. See McLaughlin v. Richland Shoe Co.,
. See In re Donaldson Co.,
. Note, however, that "[sjubstantial differences in selling activities are a necessary, but not sufficient, condition for determining that there is a difference in the stage of marketing. Some overlap in selling activities will not preclude a determination that two sales are at different stages of marketing.” 19 C.F.R. § 351.412(c)(2).
. Commerce does not make the adjustments provided in subsection (c) of 19 U.S.C. § 1677a before making the level of trade comparison. 19 C.F.R. § 351.412(c)(1)(ii). This approach is followed because the (c) adjustments are not made when a comparison of EP and normal value is made. See SAA at 829, reprinted in 1994 U.S.C.C.A.N. 4040, 4167. It is not at all clear that the § 1677a(c) adjustments affect the level of trade in any event. See Preamble,
We note that in Borden, the Court of International Trade declined to require Commerce to make the adjustments set forth in 19 U.S.C. § 1677a(c) before making the level of trade comparison, concluding that although "[f]ully adjusting CEP sales prices has the apparent advantage of at least matching the definition of CEP set forth for price comparison purposes,” doing so would create an "automatic CEP offset based on the comparison of a fully adjusted CEP with an unadjusted normal value price.” Borden,