[Federal Register Volume 64, Number 11 (Tuesday, January 19, 1999)]
[Notices]
[Pages 2877-2879]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-1117]


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DEPARTMENT OF COMMERCE

International Trade Administration
[A-834-802]


Termination of Suspension Agreement, Resumption of Antidumping 
Investigation, and Termination of Administrative Review on Uranium From 
Kazakhstan

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

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SUMMARY: The Government of Kazakhstan has provided notice of its intent 
to terminate the agreement between the United States Department of 
Commerce (``Department'') and the Republic of Kazakhstan suspending the 
antidumping investigation on uranium from Kazakhstan. Therefore, the 
Department is resuming the underlying antidumping investigation.

EFFECTIVE DATE: January 11, 1999.

FOR FURTHER INFORMATION CONTACT: James C. Doyle, Karla Whalen, or 
Juanita H. Chen, Enforcement Group III, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street & Constitution Avenue, N.W., Washington, DC 20230; telephone: 
202-482-3793.
    Applicable Statute: Unless otherwise indicated, all citations to 
the Tariff Act of 1930, as amended (``the Act''), are references to the 
provisions effective in 1992. In addition, unless otherwise indicated, 
all citations to the Department's regulations are to the regulations at 
19 CFR part 353 (1992).

SUPPLEMENTARY INFORMATION:

Background

    On December 5, 1991, the Department initiated an antidumping 
investigation concerning uranium from the Union of Soviet Socialist 
Republics (``Soviet

[[Page 2878]]

Union''). Initiation of Antidumping Duty Investigation: Uranium from 
the Union of Soviet Socialist Republics, 56 FR 63711 (December 5, 
1991). On December 25, 1991, the Soviet Union dissolved and the United 
States subsequently recognized the twelve newly independent states 
(``NIS'') which emerged, one of which was the Republic of Kazakhstan 
(``Kazakhstan''). On January 16, 1992, the Department presented an 
antidumping duty questionnaire to the Embassy of the Russian 
Federation, the only newly independent state which had a diplomatic 
facility in the United States at that time, for service on Kazakhstan. 
On January 30, 1992, the Department sent questionnaires to the United 
States Embassy in Moscow, which served copies of the questionnaire on 
the permanent representative to the Russian Federation of each NIS. The 
questionnaires were served on February 10 and 11, 1992. On March 25, 
1992, the Department gave notice that it intended to continue its 
antidumping duty investigation with respect to the newly independent 
states of the former Soviet Union. Postponement of Preliminary 
Antidumping Duty Determination: Uranium from the Former Union of Soviet 
Socialist Republics (USSR), 57 FR 11064 (April 1, 1992).
    On June 3, 1992, the Department issued its preliminary 
determination, in its antidumping duty investigation on uranium from 
Kazakhstan (``Investigation''), that imports of uranium from Kazakhstan 
were being, or were likely to be, sold in the United States at less 
than fair value, as provided for in the Act. Preliminary Determinations 
of Sales at Less Than Fair Value: Uranium from Kazakhstan, Kyrgyzstan, 
Russia, Tajikistan, Ukraine and Uzbekistan; and Preliminary 
Determinations of Sales at Not Less Than Fair Value: Uranium from 
Armenia, Azerbaijan, Byelarus, Georgia, Moldova and Turkmenistan, 57 FR 
23380 (June 3, 1992). On October 16, 1992, the Department amended the 
preliminary determination to include highly enriched uranium (``HEU'') 
in the scope of the investigations. Antidumping; Uranium from 
Kazakhstan, Kyrgyzstan, Russia, Tajikistan, Ukraine, and Uzbekistan; 
Suspension of Investigations and Amendment of Preliminary 
Determinations, 57 FR 49221 (October 30, 1992), Also on October 16, 
1992, the Department suspended the antidumping duty investigation 
involving uranium from Kazakhstan. Agreement Suspending the Antidumping 
Investigation on Uranium from Kazakhstan, 57 FR 49222 (October 30, 
1992) (``Suspension Agreement''). The basis for the Suspension 
Agreement was an agreement by Kazakhstan to restrict exports of uranium 
to the United States. On February 7, 1995, the Department and 
Kazakhstan signed an amendment to the Suspension Agreement to permit 
entry of highly enriched uranium (``HEU'') within the terms of the 
Suspension Agreement. Agreement Suspending the Antidumping 
Investigation on Uranium from Kazakhstan, 60 FR 13699 (March 14, 1995). 
On March 27, 1995, the Department and Kazakhstan signed an amendment to 
the Suspension Agreement to modify the original price-tied quota 
mechanism by lowering the threshold price from $13.00 to $12.00, and 
re-defined Kazakhstan-origin uranium to include uranium mined in 
Kazakhstan and enriched in a third country. Agreement Suspending the 
Antidumping Investigation on Uranium from Kazakhstan, 60 FR 25692 (May 
12, 1995). On September 29, 1998, the Department and Kazakhstan signed 
an amendment to the Suspension Agreement permitting entry of certain 
shipments of uranium from Kazakhstan into the United States pursuant to 
ongoing consultations. Agreement Suspending the Antidumping 
Investigation on Uranium from Kazakhstan, 63 FR 67858 (December 9, 
1998).
    On October 21, 1998, USEC Inc. and its subsidiary, United States 
Enrichment Corporation (hereinafter collectively referred to as 
``USEC''), requested that the Department conduct a hearing related to 
the issues raised in the administration of the Suspension Agreement for 
the period October 1, 1997 to September 29, 1998. On October 27, 1998 
and October 29, 1998, the Ad Hoc Committee of Domestic Uranium 
Producers, and the Oil Chemical and Atomic Workers International Union, 
AFL-CIO (hereinafter collectively referred to as ``Petitioners''), 
joined in USEC's request for a hearing. On October 30, 1998, Kazakhstan 
expressed its interest in participating in the hearing. On October 30, 
1998, the Ad Hoc Committee of Domestic Uranium Producers requested an 
administrative review of the Suspension Agreement for the period 
October 1, 1997 to September 30, 1998, pursuant to the Department's 
notice of opportunity to request an administrative review. Antidumping 
or Countervailing Duty Order, Finding, or Suspended Investigation; 
Opportunity to Request Administrative Review, 63 FR 54440 (October 9, 
1998).
    On November 10, 1998, the Department received notice from 
Kazakhstan of its intent to terminate the Suspension Agreement. Section 
XII of the Suspension Agreement provides that Kazakhstan may terminate 
the Suspension Agreement at any time upon notice to the Department; 
termination would be effective 60 days after such notice. On December 
23, 1998, the Department initiated an administrative review of the 
Suspension Agreement for the period October 1, 1997 to September 30, 
1998. Initiation of Antidumping and Countervailing Duty Administrative 
Reviews, 63 FR 71091 (December 23, 1998). As the 60 day period provided 
for in the Suspension Agreement has passed, the Department is 
terminating the Suspension Agreement and resuming the original 
Investigation effective January 11, 1999. Moreover, as a result of 
resumption of the Investigation, the Department is also terminating the 
administrative review of the Suspension Agreement.

Scope of the Investigation

    The merchandise covered constitutes one class or kind of 
merchandise. HEU is included in the scope of the investigation. The 
merchandise covered includes natural uranium in the form of uranium 
ores and concentrates; natural uranium metal and natural uranium 
compounds; alloys, dispersions (including cermets), ceramic products 
and mixtures containing natural uranium or natural uranium compounds; 
uranium enriched in U\235\ and its compounds; alloys, dispersions 
(including cermets), ceramic products, and mixtures containing uranium 
enriched in U\235\ or compounds or uranium enriched in U\235\. The 
uranium subject to these investigations is provided for under 
subheadings 2612.10.00.00, 2844.10.10.00, 2844.10.20.10, 2844.10.20.25, 
2844.10.20.55, 2844.10.50.00, 2844.20.00.10, 2844.20.00.20, 
2844.20.00.30, and 2844.20.00.50, of the Harmonized Tariff Schedule 
(``HTS''). Although the HTS subheadings are provided for convenience 
and customs purposes, our written description of the scope of this 
proceeding is dispositive.

Period of Investigation

    The period of investigation (``POI'') is June 1 through November 
30, 1991.

Resumption of Investigation

    Because Kazakhstan terminated the Suspension Agreement, there no 
longer exists a Suspension Agreement under section 734(l) of the Act 
which ``prevent(s) the suppression or undercutting of price levels of 
domestic products by imports of the merchandise under investigation.'' 
Therefore, in

[[Page 2879]]

accordance with section 734(l)(2) of the Act, the Department must 
resort to section 734(i)(1)(B), which directs us to resume the 
Investigation as if our preliminary determination had been issued on 
January 11, 1999. In accordance with section 735(a) of the Act, the 
Department will issue a final determination within 75 days of January 
11, 1999, unless Kazakhstan requests an extension of time under 19 CFR 
353.20(b).
    Since Kazakhstan may not have had a full opportunity to respond to 
the original antidumping duty questionnaire, in making its final 
determination in the Investigation, the Department shall issue a 
supplemental questionnaire for the original POI.

International Trade Commission

    In accordance with section 733(f) of the Act, the Department has 
notified the International Trade Commission (``ITC'') of the 
termination of the Suspension Agreement and resumption of the 
Investigation. If the Department's final determination is affirmative, 
the ITC will determine whether these imports are materially injuring, 
or threatening material injury to, the United States uranium industry. 
The ITC shall make this determination before the latter of: (1) 120 
days after the effective date of this notice; or, (2) 45 days after 
publication of the Department's final determination.

Termination of Administrative Review

    On October 30, 1998, the Ad Hoc Committee of Domestic Uranium 
Producers, one of the Petitioners, requested that the Department 
conduct an administrative review of the Suspension Agreement for the 
period October 1, 1997 to September 30, 1998. On December 23, 1998, the 
Department initiated an administrative review of the Suspension 
Agreement for the requested period. Initiation of Antidumping and 
Countervailing Duty Administrative Reviews, 63 FR 71091 (December 23, 
1998). Because the underlying Suspension Agreement is terminated, the 
administrative review is being terminated as well.

Denial of Request for Hearing

    On October 21, 1998, USEC, an interested party to the proceeding, 
requested that the Department conduct a hearing related to the issues 
raised in the administration of the Suspension Agreement for the period 
October 1, 1997 to September 29, 1998. USEC was joined in its request 
by Petitioners. Kazakhstan also expressed its interest in participating 
if a hearing was held on said issues. Because the underlying Suspension 
Agreement is terminated, the Department will not hold the requested 
hearing.

Verification

    As provided for in section 776(b) of the Act, the Department will 
verify all the non-BIA (best information available) material used in 
reaching its final determination.

Suspension of Liquidation

    In accordance with Sec. 734(i)(1)(A) of the Act, the Department is 
not aware of any sale within the last 90 days that was in violation of 
the Suspension Agreement or did not meet the requirements of the 
Suspension Agreement. Therefore, the Department is instructing the 
United States Customs Service (``U.S. Customs'') to suspend liquidation 
of all unliquidated entries of uranium, as defined in the Scope of the 
Investigation section of this notice, that are entered or withdrawn 
from warehouse for consumption on or after the effective date of the 
termination of the Suspension Agreement, which is January 11, 1999. 
U.S. Customs shall require a cash deposit or bond equal to 115.82 
percent ad valorem (the original preliminary determination duty rate), 
the estimated weighted-average amount by which the foreign market value 
of the subject merchandise exceeds the United States price, for all 
manufacturers, producers, and exporters of uranium from Kazakhstan. 
These suspension of liquidation instructions will remain in effect 
until further notice.

APO Access

    Any party wishing to access business proprietary information in the 
resumed Investigation must apply for APO access, regardless of whether 
such APO access was previously granted in the original Investigation or 
Suspension Agreement.

Public Comment

    In accordance with 19 CFR 353.38, the Department will hold a public 
hearing, if requested, to afford interested parties an opportunity to 
comment on the preliminary determination on March 12, 1999, at 10 a.m. 
at the United States Department of Commerce, 14th Street and 
Constitution Avenue, N.W., Washington, DC 20230. Individuals who wish 
to request a hearing must submit such a request within ten days of the 
publication of this notice in the Federal Register to the Assistant 
Secretary for Import Administration, United States Department of 
Commerce, Room 1870, 14th Street and Constitution Avenue, NW, 
Washington, DC 20230. Parties should confirm by telephone the time, 
date, and place of the hearing 48 hours before the scheduled time.
    Requests should contain: (1) The party's name, address and 
telephone number; (2) the number of participants; (3) the reason for 
attending; and (4) a list of the issues to be discussed. In addition, 
ten copies of the business proprietary version and five copies of the 
nonproprietary version of the case briefs must be submitted to the 
Assistant Secretary no later than March 1, 1999. Ten copies of the 
business proprietary version and five copies of the nonproprietary 
version of the rebuttal briefs must be submitted to the Assistant 
Secretary no later than March 8, 1999. An interested party may make an 
affirmative presentation only on arguments raised in that party's case 
or rebuttal briefs. Written arguments should be submitted in accordance 
with Sec. 353.38 of the Department's regulations and will be considered 
if received within the time limits specified above.
    This determination is issued and published in accordance with 
section 733(f) of the Act (19 U.S.C. 1673b(f)) and 19 CFR 353.15.

    Dated: January 11, 1999.
Robert S. LaRussa,
Assistant Secretary Import Administration.
[FR Doc. 99-1117 Filed 1-15-99; 8:45 am]
BILLING CODE 3510-DS-P