[Federal Register Volume 61, Number 54 (Tuesday, March 19, 1996)]
[Notices]
[Pages 11185-11186]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-6471]



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DEPARTMENT OF COMMERCE
[(A-821-802, A-834-802, A-844-802)]


Suspension Agreements on Uranium From the Russian Federation, 
Kazakstan, and Uzbekistan

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

ACTION: Request for public comments.

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SUMMARY: In order to provide all parties an opportunity to comment on 
the Department of Commerce's proposed solution to an issue regarding 
natural uranium from the Russian Federation, Kazakstan, and Uzbekistan 
which is enriched in a third country prior to importation into the 
United States, the Department of Commerce requests that parties wishing 
to provide comments do so no later than 20 days after the date of 
publication of this notice.

EFFECTIVE DATE: March 19, 1996.

FOR FURTHER INFORMATION CONTACT: James Doyle or Alexander Braier, 
Office of Agreements Compliance, Import Administration, International 
Trade Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, N.W., Washington, DC 20230, telephone: (202) 482-
0172 or (202) 482-1324, respectively.

BACKGROUND: On March 27, 1995, the Department of Commerce (the 
Department) and the Republic of Kazakstan signed an amendment to the 
Kazakstani uranium suspension agreement. In part, this amendment 
provided that the quantitative restraints on Kazakstani-origin uranium 
include all uranium ore from Kazakstan 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. 60 FR 25692,25693 (May 12, 1995). 
In light of the fact that similar amendments were being considered for 
Uzbekistan and the Russian Federation, on September 22, 1995, the 
Department solicited contract-specific information from U.S. utilities 
that hold contracts for Kazakstani, Uzbek, or Russian uranium in order 
to assess the effect such an amendment has on importations pursuant to 
such contract. 60 FR 49259 (September 22, 1995). The Department 
received five responses to its Federal Register notice.
    On October 13, 1995, the Department and the Government of 
Uzbekistan signed an amendment which, among other provisions, treats 
Uzbek-origin uranium in the same manner as the Kazakstani amendment. 
From January 22 to 26, 1996, and from February 19 to 23, 1996, the 
Department and the Ministry of Atomic Energy of the Russian Federation 
(MINATOM) held the fourth and fifth rounds of consultations regarding, 
among other issues, the enrichment of Russian-origin uranium in third 
countries.

OPPORTUNITY TO SUBMIT COMMENTS: Based on the factual information 
submitted to the Department and on views conveyed to the Department 
during numerous and frequent contacts with affected parties, the 
Department has prepared a proposed solution regarding the third country 
enrichment issue. The specific elements of the proposal are included in 
the attached Annex.
    Prior to reaching a final decision on this issue, the Department is 
providing an opportunity for full participation on the record to all 
parties wishing to comment. Accordingly, not later than 20 days from 
the date of publication of this notice, parties may submit comments 
with respect to the third country enrichment issue. Seven copies of the 
comments should be submitted to the Deputy Assistant Secretary for 
Compliance, Import Administration, International Trade Administration, 
Room B-099, U.S. Department of Commerce, Washington, DC 20230. All 
comments provided to the Department in response to this notice will be 
subject to release under Administrative Protective Order in accordance 
with 19 CFR 353.34. Therefore, all comments must properly identify 
information the submitter would like treated as business proprietary, 
and be accompanied by a properly bracketted public version. The 
Department will meet with affected or interested parties upon request 
to fully explain the calculations and procedures contained in the Annex 
to this notice.

    Dated: March 12, 1996.
Joseph A. Spetrini,
Deputy Assistant Secretary for Compliance.

Annex--Third Country Enrichment of Subject Uranium Proposal

    The Department of Commerce's proposed decision regarding the issue 
of third country enrichment of subject uranium permits the entry of 
portions of the volume specified in certain contracts. The contracts 
must have been signed by March 27, 1995, which was the effective date 
of the first amendment to a uranium suspension agreement which 
addressed this issue. After accounting for any previously entered 
volumes, the proposal divides the remaining subject material into two 
portions: (1) 75% of the volume will be permitted entry without 
additional conditions; and (2) the remaining 25% will be permitted 
entry only if matched with an equal amount of newly

[[Page 11186]]

produced U.S. uranium. The proposal also establishes certain procedures 
necessary for its efficient administration within the auspices of the 
suspension agreements and the Tariff Act of 1930, as amended.

Eligible Contracts and Permitted Volumes

     An eligible contract is defined as a natural uranium 
supply contract signed before March 27, 1995, that was identified in 
response to the Department's September 22, 1995, Federal Register 
notice. No other natural uranium contracts, regardless of origin, shall 
be eligible for inclusion within the terms of the third country 
enrichment proposal;
     The permitted volume for each contract is the nominal 
volume contained in each eligible contract.1 If there is no 
specific nominal volume identified in the contract, the permitted 
volume shall be the midpoint between the highest and lowest volumes 
stipulated in the contract. For any contract containing an option for 
an additional volume which was exercised prior to March 27, 1995, the 
permitted volume shall be the nominal/midpoint volume of the eligible 
contract plus the volume of the exercised option. Similarly, for any 
contract which was amended prior to March 27, 1995 to provide for an 
additional volume, the permitted volume shall be the nominal/midpoint 
volume plus the volume specified in such amendment. For any contract 
containing an option for an additional volume which was exercised prior 
to March 27, 1995, and which was amended prior to March 27, 1995 to 
provide for an additional volume, the permitted volume shall be the sum 
of the nominal/midpoint volume, the optional volume, and the volume 
specified in the amendment.

    \1\ Most natural uranium supply contracts specify a nominal 
volume around which buyers and sellers expectations converge. 
Typically these contracts also bracket the target volume with 
minimum and/or maximum volumes.
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     For each eligible contract, 75 percent of the permitted 
volume will be allowed entry with no conditions other than the ordinary 
entry requirements for non-subject uranium;
     For each eligible contract, the remaining 25 percent of 
the permitted volume will be allowed entry only if such importation is 
pursuant to a matching sale confirmed by the Department by June 30, 
1996, for an equal amount of newly produced U.S. uranium;
     If uranium has been imported into the United States prior 
to the effective date of this notice and pursuant to an eligible 
contract, then an equal portion of uranium may be imported, but only if 
the importation is pursuant to a matching sale confirmed by the 
Department by June 30, 1996, for an equal amount of U.S.-produced 
uranium. Furthermore, both the volume of uranium already imported and 
the volume that may be imported only if matched will be deducted from 
the permitted volume before the 75/25 split is applied;

Administrative Procedures

     All eligible contracts must be submitted to the Department 
and are releasable in their entirety only to those interested parties 
which specifically request access under administrative protective 
order;
     All holders of eligible contracts must agree to permit 
Department verification of information regarding shipment of the 
permitted volumes, including, but not limited to, analyses of the tails 
assays and enrichment percentages to derive feed-to-product ratios;
     In order to facilitate Customs clearance of shipments of 
permitted volumes, holders of eligible contracts shall provide the 
Department with appropriate shipping information at least 10 days in 
advance of the date the shipment is due to reach the United States. 
Upon receipt of complete and accurate shipping information, the 
Department will provide Customs with clearance within five days. 
Certifications or licenses from the appropriate suspension agreement 
countries shall not be required;
     The Department will administer each eligible contract on a 
contract-by-contract basis.
     The Department will administer any such matching sales 
consistent with the Department's existing practice, as specified in 
Section IV of the Amendment to the Agreement Suspending the Antidumping 
Investigation on Uranium from the Russian Federation, and appropriate 
Statements of Administrative Intent, and any subsequent amendments 
incorporating such practice.
[FR Doc. 96-6471 Filed 3-18-96; 8:45 am]
BILLING CODE 3510-DS-P