[Federal Register Volume 66, Number 246 (Friday, December 21, 2001)]
[Notices]
[Pages 65903-65905]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-31511]



[[Page 65903]]

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DEPARTMENT OF COMMERCE

International Trade Administration

[(C-428-829); (C-421-809); (C-412-821)]


Notice of Final Affirmative Countervailing Duty Determinations: 
Low Enriched Uranium From Germany, the Netherlands, and the United 
Kingdom

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

ACTION: Notice of Final Affirmative Countervailing Duty Determinations.

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SUMMARY: On May 14, 2001, the Department of Commerce (the Department) 
published in the Federal Register its preliminary affirmative 
determinations in the countervailing duty investigations of low 
enriched uranium (subject merchandise) from Germany, the Netherlands, 
and the United Kingdom for the period January 1, 1999 through December 
31, 1999 (66 FR 24329).
    The net subsidy rate in the Final Determination differs from that 
of the Preliminary Determination. The revised final net subsidy rate 
for the investigated company is listed below in the ``Suspension of 
Liquidation'' section of this notice.

EFFECTIVE DATE: December 21, 2001.

FOR FURTHER INFORMATION CONTACT: Robert Copyak (Germany) at 202-482-
2209, Stephanie Moore (the Netherlands) at 202-482-3692, and Eric B. 
Greynolds (United Kingdom) at 202-482-6071, Office of AD/CVD 
Enforcement VI, Group II, Import Administration, International Trade 
Administration, U.S. Department of Commerce, Room 4012, 14th Street and 
Constitution Avenue, NW., Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

Applicable Statute and Regulations

    Unless otherwise indicated, all citations to the statute are 
references to the provisions effective January 1, 1995, the effective 
date of the amendments made to the Tariff Act of 1930 (the Act) by the 
Uruguay Round Agreements Act (URAA). In addition, unless otherwise 
indicated, all citations to the Department's regulations are to the 
regulations codified at 19 CFR Part 351 (2000).

Background

    On May 14, 2001, the Department published the preliminary 
determinations of its investigations of low enriched uranium from 
Germany, the Netherlands, and the United Kingdom. See Notice of 
Preliminary Affirmative Countervailing Duty Determinations and 
Alignment with Final Antidumping Duty Determinations: Low Enriched 
Uranium from Germany, the Netherlands, and the United Kingdom, 66 FR 
24329 (May 14, 2001) (Preliminary Determinations). These investigations 
cover low enriched uranium (subject merchandise) from Germany, the 
Netherlands, and the United Kingdom for the period January 1, 1999, 
through December 31, 1999.
    We invited interested parties to comment on the Preliminary 
Determinations. On October 22 and 23, 2001, the petitioners \1\, the Ad 
Hoc Utilities Group,\2\ and Urenco Ltd., Urenco (Capenhurst) Ltd., 
Urenco Nederland BV, and Urenco Deutschland GmbH (collectively, Urenco 
or the respondents) filed briefs on common scope issues in the 
antidumping and countervailing duty investigations of LEU from France, 
Germany, the Netherlands and the United Kingdom. Rebuttal briefs on 
these common scope issues were filed on October 29, 2001, and a public 
hearing on the common scope issues was held on October 31, 2001. On 
October 26, 2001, we received comments from the petitioners and the 
respondents. On November 5, 2001, we received rebuttal comments from 
petitioners and respondents. A public hearing was held at the 
Department of Commerce on November 7, 2001. On or about September 28, 
2001, and on November 22, 2001, we received letters from the EC 
regarding certain issues in these investigations. On November 7, 2001, 
Mr. Grant Aldonas, Under-Secretary for International Trade, replied to 
the first letter. We invited comments on these letters, which we 
received from petitioners, respondents, and the Ad Hoc Utilities Group, 
on November 15, 2001, and November 29, 2001.
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    \1\ The petitioners in these investigations are USEC, Inc. and 
its wholly-owned subsidiary, United States Enrichment Corporation 
(collectively USEC), and the Paper, Allied-Industrial, Chemical and 
Energy Workers International Union, AFL-CIO, CLC, Local 5-550 and 
Local 5-689 (collectively PACE).
    \2\ In accordance with section 777(h) of the Act of the Ad Hoc 
Utilities Group, whose members include: Arizona Public Service Co., 
Carolina Power & Light Co., Dominion Generation, Duke Energy Corp., 
DTE Energy, Entergy Services, Inc., Exelon Corporation, First Energy 
Nuclear Orperting Co., Florida Power Corp., Florida Power and Light 
Co., Nebraska Public Power District, Nuclear Management Co. LLC (on 
behalf of certain member companies), PPL Susquehanna LLC, PSEG 
Nuclear LLC, South Texas Project, Southern California Edison, 
Southern Nuclear Operating Co., Union Electric Company, and Wolf 
Creek Nuclear Operating Corp., submitted comments as industrial 
users of subject merchandise.
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    These final determinations were originally due on November 26, 
2001. We subsequently tolled the final determination deadline in these 
investigations until December 13, 2001, to accommodate certain 
verifications and a delayed briefing and hearing schedule that were 
delayed because of the events of September 11, 2001.

Amended Scope of Investigation

    For purposes of these investigations, the product covered is all 
low enriched uranium (LEU). LEU is enriched uranium hexafluoride 
(UF6) with a U235 product assay of less than 20 
percent that has not been converted into another chemical form, such as 
UO2, or fabricated into nuclear fuel assemblies, regardless 
of the means by which the LEU is produced (including LEU produced 
through the down-blending of highly enriched uranium).
    Certain merchandise is outside the scope of these investigations. 
Specifically, these investigations do not cover enriched uranium 
hexafluoride with a U235 assay of 20 percent or greater, 
also known as highly enriched uranium. In addition, fabricated LEU is 
not covered by the scope of these investigations. For purposes of these 
investigations, fabricated uranium is defined as enriched uranium 
dioxide (UO2), whether or not contained in nuclear fuel rods 
or assemblies. Natural uranium concentrates 
(U3O8) with a U235 concentration of no 
greater than 0.711 percent and natural uranium concentrates converted 
into uranium hexafluoride with a U235 concentration of no 
greater than 0.711 percent are not covered by the scope of these 
investigations.
    Also excluded from these investigations is LEU owned by a foreign 
utility end-user and imported into the United States by or for such 
end-user solely for purposes of conversion by a U.S. fabricator into 
uranium dioxide (UO2) and/or fabrication into fuel 
assemblies so long as the uranium dioxide and/or fuel assemblies deemed 
to incorporate such imported LEU (i) remain in the possession and 
control of the U.S. fabricator, the foreign end-user, or their designed 
transporter(s) while in U.S. customs territory, and (ii) are re-
exported within eighteen (18) months of entry of the LEU for 
consumption by the end-user in a nuclear reactor outside the United 
States. Such entries must be accompanied by the certifications of the 
importer and end user.
    The merchandise subject to these investigations is classified in 
the

[[Page 65904]]

Harmonized Tariff Schedule of the United States (HTSUS) at subheading 
2844.20.0020. Subject merchandise may also enter under 2844.20.0030, 
2844.20.0050, and 2844.40.00. Although the HTSUS subheadings are 
provided for convenience and customs purposes, the written description 
of the merchandise is dispositive.

Scope Clarification

    For further details, see Comment 1 of the ``Issues and Decision 
Memorandum for the Antidumping Duty Investigation of Low Enriched 
Uranium from Germany, Netherlands and the United Kingdom'' (Decision 
Memorandum) from Bernard T. Carreau, Deputy Assistant Secretary for 
Import Administration, to Faryar Shirzad, Assistant Secretary for 
Import Administration, dated concurrently with this notice.

Goods Versus Services

    Parties in all eight concurrent investigations of this product have 
submitted comments on this issue. For a full discussion see Notice of 
Final Determination of Sales at Less Than Fair Value: Low Enriched 
Uranium from France which is published concurrently with this notice.

Period of Investigation

    The period of investigation (POI) for which we are measuring 
subsidies is January 1, 1999 through December 31, 1999.

Verification

    As provided in section 782(i) of the Act, we conducted verification 
of the information submitted by Urenco from June 11 through June 15, 
2001, in the Netherlands; June 18 through June 22, 2001, in Germany; 
and September 25 through October 2, 2001, in the United Kingdom. We 
used standard verification procedures, including meeting with 
government and company officials and examining relevant accounting 
records and original source documents provided by the respondents. Our 
verification results are outlined in detail in the public versions of 
the verification reports, which are on file in the Central Records Unit 
of the Department of Commerce (Room B-099).

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
these investigations are addressed in the ``Issues and Decision 
Memorandum'' (Decision Memorandum) dated December 13, 2001, which is 
hereby adopted by this notice. A list of issues which parties have 
raised and to which we have responded, all of which are in the Decision 
Memorandum, is attached to this notice as Appendix I. Parties can find 
a complete discussion of all issues raised in these investigations and 
the corresponding recommendations in this public memorandum which is on 
file in room B-099 of the Main Commerce Building. In addition, a 
complete version of the Decision Memorandum can be accessed directly on 
the World Wide Web at http://ia.ita.doc.gov, under the heading 
``Federal Register Notices.'' The paper copy and electronic version of 
the Decision Memorandum are identical in content.

Suspension of Liquidation

    In accordance with sections 701(d) and 703(d)(1)(A)(i) of the Act, 
we have calculated a single rate for the Urenco Group with respect to 
exports from each of the three countries. The ``all others'' rate is 
the same as the rate for the Urenco Group. These rates are summarized 
in the table below:

------------------------------------------------------------------------
             Producer/exporter                    Net subsidy rate
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Urenco Group Ltd..........................  2.26 percent ad valorem.
All Others................................  2.26 percent ad valorem.
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    In accordance with our preliminary affirmative determinations, we 
instructed the U.S. Customs Service to suspend liquidation of all 
entries of low enriched uranium from Germany, the Netherlands, and the 
United Kingdom, which were entered or withdrawn from warehouse, for 
consumption on or after May 14, 2001, the date of the publication of 
our preliminary determinations in the Federal Register. In accordance 
with section 703(d) of the Act, we instructed the U.S. Customs Service 
to discontinue the suspension of liquidation for merchandise entered on 
or after September 11, 2001, but to continue the suspension of 
liquidation of entries made between May 14, 2001 and September 10, 
2001.
    We will reinstate suspension of liquidation under section 706(a) of 
the Act for all entries if the ITC issues a final affirmative injury 
determination and will require a cash deposit of estimated 
countervailing duties for such entries of merchandise in the amounts 
indicated above. If the ITC determines that material injury, or threat 
of material injury, does not exist, this proceeding will be terminated 
and all estimated duties deposited or securities posted as a result of 
the suspension of liquidation will be refunded or canceled.

ITC Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our determinations. In addition, we are making available to the 
ITC all non-privileged and non-proprietary information related to these 
investigations. We will allow the ITC access to all privileged and 
business proprietary information in our files, provided that the ITC 
confirms that it will not disclose such information, either publically 
or under an administrative protective order (APO), without the written 
consent of the Assistant Secretary for Import Administration.
    If the ITC determines that material injury, or threat of material 
injury, does not exist, these proceedings will be terminated. If 
however, the ITC determines that such injury does exist, we will issue 
countervailing duty orders.

Return or Destruction of Proprietary Information

    In the event that the ITC issues a final negative injury 
determination, this notice will serve as the only reminder to parties 
subject to APO of their responsibility concerning the destruction of 
proprietary information disclosed under APO in accordance with 19 CFR 
351.305(a)(3). Failure to comply is a violation of the APO.
    These determinations are published pursuant to sections 705(d) and 
777(i) of the Act.

    Dated: December 13, 2001.
Faryar Shirzad,
Assistant Secretary for Import Administration.

Appendix I--Issues and Decision Memorandum

Summary

Methodology and Background Information

I. Subsidies Valuation Information
    A. Allocation Period
    B. Benchmarks for Loans and Discount Rate
    C. Treatment of the Ad Valorem Rate Calculation and the 
Denominator

Analysis of Programs

I. Programs Determined to Confer Subsidies from the Government of 
Germany
    A. Enrichment Technology Research and Development Program
    B. Forgiveness of Centrifuge Enrichment Capacity Subsidies
    C. Investment Allowance Act
II. Program Determined To Confer Subsidies From the Government of 
the Netherlands
    A. Regional Investment Premium
III. Programs Determined Not to Confer a Benefit from the Government 
of Germany
    A. Regional Government Provision of Industrial Site

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    B. Regional Development Grants
IV. Programs Determined Not to Confer a Benefit from the Government 
of the Netherlands
    A. Centrifuge Enrichment Technology Research
    B. 1981 Equity Conversion
V. Programs Determined Not to Confer a Benefit from the Government 
of the United Kingdom
    A. Regional Development Grants
    B. Centrifuge Development Grant
    C. Fossil Fuel Levy
    D. Forgiveness of Decommissioning Debt
VI. Programs Determined Not Countervailable from the Government of 
the Netherlands
    A. Subordinated Shareholder Loan Provided to Urenco Ltd. by UCN
    B. 1998 Shareholder Loan
VII. Programs Determined Not Countervailable from the Government of 
the United Kingdom
    A. Assumption of Debt: European Investment Bank Loans
    B. Loan-Stock Debt Forgiveness Program
    C. Subordinated Shareholder Loan Provided to Urenco Ltd. by INFL
    D. Extraordinary Asset Write Downs Prior to Transfer of BNFL 
Enrichment Facilities
VIII. Programs Determined Not Used in the Netherlands
    A. Wet Investeringsrekening Law (WIR)
    B. Subsidized Loan Forgiveness
IX. Program Determined Not Used in the United Kingdom
    A. Financial Assistance Under the Electricity Act of 1989
X. Total Ad Valorem Rate
XI. Analysis of Comments
    Comment 1: Scope Clarification
    Comment 2: International Consortium Provision
    Comment 3: Average Useful Life
    Comment 4: 1993 Equity Investment
    Comment 5: EIB Loans
    Comment 6: Regional Development Grants
    Comment 7: Centrifuge Development Grant (CDG)
    Comment 8: Subordinated Shareholder Loan Provided to Urenco Ltd. 
by INFL and UCN
    Comment 9: Loan Stock Debt Forgiveness
    Comment 10: Regional Investment Premiums (IPR)
    Comment 11: Loan Forgiveness
    Comment 12: 1981 Equity Conversion
    Comment 13: Centrifuge Enrichment Technology Research and 
Development Programs
    Comment 14: Sales Denominator of the Urenco Group
    Comment 15: Investment Allowance Act
    Comment 16: City and State Government Development Grants
    Comment 17: Centrifuge Enrichment Capacity Subsidies
    Comment 18: Enrichment Technology R&D Subsidies
    Comment 19: WIR Program
[FR Doc. 01-31511 Filed 12-21-01; 8:45 am]
BILLING CODE 3510-DS-P