[Federal Register Volume 60, Number 208 (Friday, October 27, 1995)]
[Notices]
[Pages 55004-55007]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-26736]



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DEPARTMENT OF COMMERCE
International Trade Administration
[A-844-802]


Agreement Suspending the Antidumping Investigation on Uranium 
From Uzbekistan

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

ACTION: Notice of Amendment to the Agreement Between the United States 
Department of Commerce and the Republic of Uzbekistan Suspending the 
Antidumping Investigation on Uranium from Uzbekistan.

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SUMMARY: The Department of Commerce (the Department) and the Republic 
of Uzbekistan (Uzbekistan) have signed an 

[[Page 55005]]
Amendment (the Amendment) to the Agreement Suspending the Antidumping 
Investigation on Uranium from Uzbekistan (the Agreement).

EFFECTIVE DATE: October 13, 1995.

FOR FURTHER INFORMATION CONTACT: James Doyle or Alex Braier, Office of 
Agreements Compliance, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street & Constitution 
Ave., NW, Washington, DC 20230; telephone: (202) 482-0172 or (202) 482-
1324, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On October 16, 1992, the Department and Uzbekistan signed the 
Agreement Suspending the Antidumping Investigation on Uranium from 
Uzbekistan. On October 30, 1992, the Agreement was published in the 
Federal Register (57 FR 49,220, 49,255). On September 30, 1994, the 
Department and Uzbekistan initialed an Amendment to modify the Appendix 
A price-tied quota contained in the original Agreement. The Amendment 
was then released to interested parties for comment. The Department 
considered these comments and held further consultations with 
Uzbekistan. On July 21, 1995, the Department and Uzbekistan initialed 
an amendment similar to the previous amendment except that this 
amendment contained clauses which redefined Uzbek-origin uranium to 
include uranium mined in Uzbekistan and enriched in a third country. 
This amendment was also released to interested parties for comment, 
which were again considered by the Department.
    Subsequently, the Department and Uzbekistan negotiated an Amendment 
based upon a different concept than the two amendments previously 
initialed. This Amendment replaces the reference price calculation, and 
authorizes,during the first and second years of the Amendment direct or 
indirect deliveries of up to 940,000 pounds U3O8 equivalent 
per year of Uzbek-origin natural uranium from Uzbekistan to the United 
States, provided that the latest price calculated pursuant to Section 
IV.C.1 is at or above $12.00 per pound equivalent. Commencing with the 
third year (October 13, 1997), this Amendment authorizes Uzbekistan to 
make annual deliveries of uranium up to, but not exceeding, the levels 
in accordance with the production-tied quota table set forth in 
Appendix A. The Amendment retains the provision redefining Uzbek-origin 
uranium to include uranium mined in Uzbekistan and enriched in a third 
country. On October 13, 1995, the Department and Uzbekistan signed a 
final Amendment which took effect immediately. The text of the final 
Amendment follows this notice.

    Dated: October 20, 1995.
Joseph A. Spetrini,
Deputy Assistant Secretary for Compliance.

Amendment to the Agreement Suspending the Antidumping Investigation on 
Uranium From Uzbekistan

    The parties recognize that the Agreement Suspending the Antidumping 
Investigation on Uranium from Uzbekistan (``the Agreement'') has not 
generated the anticipated increase in the price of U.S.-origin natural 
uranium that would have permitted renewed sales of Uzbek uranium under 
the price-tied quota mechanism; nor has the Agreement increased sales 
of U.S.-origin natural uranium or employment in the U.S. uranium 
industry. Because an objective of this Agreement is to restore the 
competitive position of the U.S. industry, the parties agree as 
follows:
    The Agreement is hereby extended until October 12, 2004. Consistent 
with the requirement of Section 734(1) of the U.S. Tariff Act of 1930, 
as amended (the Act), to prevent the suppression or undercutting of 
price levels of domestic products by imports of Uzbek-origin uranium, 
Sections II, III, IV, VII, VIII and XIV are amended as set forth below. 
All other provisions of the Agreement, particularly Section VII, remain 
in force and apply to this Amendment.
    1. The following definitions are added to Section II:
    (e) For purposes of this Agreement, United States shall comprise 
the customs territory of the United States of America (the 50 States, 
the District of Columbia and Puerto Rico) and foreign trade zones 
located in the territory of the United States of America.
    (f) For consumption means for further processing (as necessary) and 
use as nuclear fuel. Consumption may include such uses as swaps or 
exchanges of material, only where such swaps or exchanges are 
documented to be conducted solely for the purpose of facilitating the 
further processing and use as nuclear fuel by the end-user. The 
material shall not be loaned. The material shall not be resold by or on 
behalf of the end-user except as a result of force majeure.
    (g) End-user means an entity, such as an electric utility, 
hospital, or scientific institution, which consumes uranium.
    (h) The natural feed component for 1 KgU of enriched uranium 
product (``EUP'') shall be determined using the feed to product factor 
calculated with the following formulae:

[(PA-TA)/(FA-TA)]=XA

Where:

PA=Actual Product Assay of the imported low enriched uranium 
(``LEU'') as found in the import documents
TA=For enrichment contracts, the actual tails assay selected by 
the customer pursuant to the contract; for other contracts calling for 
the delivery of LEU, 0.3 weight percent U235. During the 
anniversary month of this Amendment, the tails assay for other 
contracts calling for the delivery of LEU will be amended as 
appropriate, based on the optimum tails assay.
FA=0.711 weight percent U235 (feed assay)
XA=Feed-to-Product Factor.

    The feed-to-product factor shall then be multiplied by 2.61283 to 
reach the lbs. U3O8 equivalent of the imported LEU.
    (i) U.S. production level means the level of U.S. production during 
the most recent four quarters for which data is available from 
appropriate industry sources.
    (j) Relevant Period means the twelve month period beginning October 
13 through October 12 of the following year.
    2. Section III, ``Product Coverage,'' is amended as follows:
    The following language replaces the second paragraph, beginning, 
``Uranium ore * * *.''
    Further, uranium ore from Uzbekistan that is milled into 
U3O8 and/or converted into UF6 and/or enriched in 
U235 in another country prior to direct and/or indirect 
importation into the United States is considered uranium from 
Uzbekistan and is subject to the terms of this Agreement. When imported 
as enriched uranium, the full amount of the natural uranium equivalent 
required to produce the enriched product will be counted against the 
existing quota under this Agreement. For the purposes of calculating 
this amount of natural uranium, the terms of definition II(h) shall 
apply unless otherwise reported.
    The third paragraph of Section III, beginning, ``For purposes of 
this Agreement, uranium enriched * * *.'' is replaced by:
    If applicable, for purposes of this agreement, uranium enriched in 
U235 or compounds of uranium enriched in U235 in Uzbekistan 
are covered by this agreement, regardless of their subsequent 
modification or blending. 

[[Page 55006]]

    3. Effective October 13, 1995, Sections IV.B and IV.C.2 and 3 are 
deleted. Appendix A is replaced with Appendix A hereto, and Sections 
IV.A is replaced with the following:
    A. The Government of Uzbekistan will restrict the volume of direct 
or indirect exports on or after the effective date of this Agreement to 
the United States and the transfer or withdrawal from inventory 
(consistent with the provisions of paragraph E) of the merchandise 
subject to this Agreement in accordance with the delivery limits and 
schedule set forth below.
    During the first and second Relevant Periods, this Amendment 
authorizes direct or indirect deliveries of up to 940,000 pounds 
U308 equivalent per relevant period of Uzbek-origin natural 
uranium from Uzbekistan to the United States, provided that the latest 
price calculated pursuant to Section IV.C.1 is at or above $12.00 per 
pound U308 equivalent.
    Commencing with the third Relevant Period (October 13, 1997), this 
Amendment authorizes Uzbekistan to make annual deliveries of uranium up 
to, but not exceeding, the levels in accordance with the production-
tied quota table set forth in Appendix A.
    For purposes of counting against the uranium delivery quota 
limitations, the date of delivery shall determine when the Uzbek 
uranium shall come within the annual limit.
    Deliveries pursuant to multiyear contracts shall be strictly 
subject to the quota available at the time of delivery, with the 
following two exceptions:
    (1) For multiyear contracts entered into during the first two 
Relevant Periods which do not specify a price per pound U308 equal 
to or greater than $12.00, deliveries shall be strictly subject to the 
annual quotas in effect at the time of delivery; however, if the annual 
quota in effect at the time of such delivery is less than 750,000 lbs., 
up to 750,000 lbs. may be delivered.
    (2) Deliveries pursuant to multiyear contracts which provide for 
annual deliveries no greater than the quota in effect at the time the 
contract is entered into, and which specify a price per pound U308 
at or above $12.00 during the first two Relevant Periods, or at or 
above the latest DOC price calculation in subsequent Relevant Periods, 
may be made in the full amount for the full term of the contract, even 
if they exceed the annual quotas in effect at the time of delivery. 
Such deliveries will be applied against the annual quotas in effect at 
the time of delivery. Where the amount of such deliveries exceeds the 
annual quota in effect at the time of delivery, such quota overage will 
be deducted from the annual quota available in the subsequent relevant 
period(s). No additional quota will become available unless and until 
any quota deficit created by such delivery overage(s) is eliminated.
    The total annual delivery volume specified in multiyear contracts 
entered into under paragraphs 1 and 2 of this subsection may not exceed 
940,000 lbs. per year for each of the first two Relevant Periods.
    For purposes of determining the applicable quota level under 
Appendix A, the Department will supply the U.S. production level, as 
defined in Section II(j), to the parties to the proceeding thirty days 
before the beginning of every Relevant Period.
    B.1  Department Confirmation of Quota Imports. In recognition of 
the requirements of section 734 (d)(2) and (l)(1), the Department and 
the Government of Uzbekistan agree that any sales contract with an end-
user to be used in a sale under this Agreement must be submitted to the 
Office of Agreements Compliance, U.S. Department of Commerce, and 
confirmed by the Department in accordance with this Section. The party 
submitting a contract to the Department for confirmation shall provide 
the following information, which shall be releasable under APO at the 
time the Department approves such contract:
     The date and terms, including price, of the contract with 
the end-user pursuant to which the sale(s) will be made;
     A description of the physical material being imported;
     Identification of the Uzbek supplier of the sale(s);
     The estimated place and date on which the imports to fill 
the sale(s) will enter the customs territory of the United States;
     The export license number under which the sale(s) will be 
exported;
     A copy of the contract with the end-user pursuant to which 
the sale(s) are to be made;
     An estimated delivery schedule;
     Certification from the end-user that it will consume the 
imported product in the United States in accordance with Section II(f) 
of this Amendment;
     Certification that the Department will be provided with 
proof of payment for each shipment received; and any other information 
that the Department, after consultation with the Government of 
Uzbekistan, determines necessary to confirm that the requirements of 
this Amendment have been met.
    As soon as possible, but within 15 days of a complete confirmation 
request being filed with the Office of Agreements Compliance, the 
Department will confirm that the sales contract qualifies as a sale 
under this Amendment or will state specifically why it does not 
qualify. In making such a determination, the Department will limit its 
review to determining (i) whether the contract under review comes 
within the amount of quota remaining for the Relevant Period in which 
the contract was signed, and (ii) whether the sales price for the 
contract is at or above $12.00 during the first two Relevant Periods, 
or at or above the latest DOC price calculation in subsequent Relevant 
Periods, on the date that the contract was signed. If the Department 
fails to respond to a confirmation request within 15 days, the request 
shall be deemed to be approved notwithstanding any other provisions of 
the Agreement.
    Upon confirmation, the Department will subtract the amount to be 
delivered of contracted Uzbek-origin uranium from the quota remaining 
for each Relevant Period. The Office of Agreements Compliance shall 
make available under APO the amount of annual quota that remains 
available for each Relevant Period.
    Uzbek uranium may be imported into the United States only pursuant 
to a confirmed sales contract. Further, if such Uzbek uranium is not 
immediately delivered into the end-user's account, the following 
conditions must be met:
    (1) the material shall be placed in a dedicated account for 
approved contracts;
    (2) the importer (if the owner of material, or the person for whom 
or on whose behalf the material is imported) or his consignee, shall 
certify to the Department that such material will not be sold, loaned, 
swapped, or utilized other than for delivery to the U.S. end-user for 
consumption in accordance with Section II(f) of this Amendment;
    (3) the material enters the U.S. but shall not be liquidated until 
such time as it is delivered to the end-user; and
    (4) the importer shall commit in writing to make available to the 
Department, quarterly, a full accounting of all deliveries from its 
account at the converter/fabricator (including each delivery from the 
account, to whom delivery was made, pursuant to which contract, in what 
quantity, and confirmation of the status of any transaction that 
occurred from the account).
    Prior to U.S. Customs clearance of the Uzbek-origin uranium, the 
importer (if the owner of material, or the person for whom or on whose 
behalf the uranium is imported) will notify the Department of the date 
of import, the quantity and 

[[Page 55007]]
declared value of the shipment, the vessel name, the port of entry, and 
the pre-confirmed individual contract pursuant to which the shipment is 
entering. If such information is consistent with a pre-confirmed 
contract and the notice of request for delivery from the end-user, the 
Department will notify the U.S. Customs Service within five business 
days. The importer will provide certification to U.S. Customs at time 
of import that the material will be used only for a sale subject to the 
conditions of this Agreement and will be consumed in accordance with 
Section II(f) of this Agreement. The Department will instruct Customs 
to promptly release the shipment once the Department has confirmed that 
Customs has received the foregoing notification and certification.
    4. The following language replaces Paragraph D of Section VII, 
``Anticircumvention,'':
    D. In addition to the above requirements, the Department shall 
direct the U.S. Customs Service to require all importers of uranium 
into the United States, regardless of stated country of origin, to 
submit at the time of entry written statements certifying the 
following:
    (A) The country(ies) in which the ore was mined and, if applicable, 
converted, enriched, and/or fabricated, for all imports; and
    (B) That the uranium being imported was not obtained under any 
arrangement, swap, or other exchange designed to circumvent the export 
limits for uranium of Uzbek origin established by this agreement.
    Where there is reason to believe that such a certification has been 
made falsely, the Department will refer the matter to Customs or the 
Department of Justice for further action.
    5. The following paragraph constitutes an addendum to Section VIII 
of the Agreement:
    Uzbekistan agrees to adhere to all reporting requirements specified 
in Section VIII.A. of the Agreement. Appendix B data will be submitted 
to the Department according to the reporting requirements specified in 
Section VIII.A. of the Agreement, and will be treated and subject to 
verification by the Department in accordance with the terms of the 
agreement.
    6. Section XIV of the Agreement is amended by adding the following:
    C. The parties agree to consult on a regular basis during the term 
of this Agreement on Uzbekistan being treated as a market economy, or 
the Uzbek uranium industry being treated as a market-oriented industry, 
under U.S. antidumping laws. During such consultations the Department 
will identify the criteria that Uzbekistan or the Uzbek uranium 
industry would need to satisfy to be accorded such treatment by the 
Department.
    The parties further agree that their intention is, consistent with 
Section IV.J of the Agreement, that Uzbekistan be accorded treatment no 
less favorable than any other Republic of the former Soviet Union that 
also has a suspension agreement with the United States with respect to 
trade in uranium. Accordingly, if U.S. law, regulation, administrative 
practice, or policy should change in any manner that would result in 
relatively less favorable treatment for Uzbekistan, or if the United 
States should enter into any agreement or understanding or take any 
action that would cause that result, the parties will promptly enter 
into consultations with a view to amending this Agreement so as to 
eliminate such less favorable treatment.
    7. The parties agree that this Amendment constitutes an integral 
part of the Agreement.
    8. The English language version of this Amendment shall be 
controlling.
    9. This Amendment is effective as of October 13, 1995.

    Signed on this 13th day of October, 1995.

    For the Government of Uzbekistan.
Nikolay I. Kuchersky.

    For the United States Department of Commerce.
Paul L. Joffe,
Deputy Assistant Secretary for Import Administration.

                          Uzbekistan Appendix A                         
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U.S. production levels  (annual lbs. U3O8                               
                    e)                      Quota  (annual lbs. U3O8 e) 
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3,000,001-3,500,000......................  600,000                      
3,500,001-4,000,000......................  750,000                      
4,000,001-4,500,000......................  775,000                      
4,500,001-5,000,000......................  800,000                      
5,000,001-5,500,000......................  825,000                      
5,500,001-6,000,000......................  850,000                      
6,000,001-6,500,000......................  875,000                      
6,500,001-7,000,000......................  900,000                      
7,000,001-7,500,000......................  925,000                      
7,500,001-8,000,000......................  950,000                      
8,000,001-8,500,000......................  975,000                      
8,500,001-9,000,000......................  1,000,000                    
9,000,001+...............................  Unlimited                    
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[FR Doc. 95-26736 Filed 10-26-95; 8:45 am]
BILLING CODE 3510-DS-P