[Federal Register Volume 66, Number 246 (Friday, December 21, 2001)]
[Notices]
[Pages 65886-65889]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-31513]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-412-820; A-421-808; A-428-828]


Notice of Final Determinations of Sales at Not Less Than Fair 
Value: Low Enriched Uranium From the United Kingdom, Germany and the 
Netherlands

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

EFFECTIVE DATE: December 21, 2001.

ACTION: Notice of final determinations of sales at not less than fair 
value.

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FOR FURTHER INFORMATION CONTACT: Frank Thomson or James Terpstra, 
Office of AD/CVD Enforcement VI, Import Administration, International 
Trade Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
4793 or (202) 482-3965, respectively.

SUPPLEMENTARY INFORMATION:

The Applicable Statute

    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 Department of Commerce (Department) 
regulations refer to the regulations codified at 19 CFR part 351 (April 
2000).

Final Determination

    We determine that low-enriched uranium (LEU) from the United 
Kingdom, Germany and the Netherlands is not being sold, or is not 
likely to be sold, in the United States at less than fair value (LTFV), 
as provided in section 735 of the Act.

Case History

    The preliminary determinations in these investigations was 
published on July 13, 2001. See Notice of Preliminary Determination of 
Sales at Less Than Fair Value: Low Enriched Uranium From the United 
Kingdom; Preliminary Determinations of Sales at Not Less Than Fair 
Value: Low Enriched Uranium From Germany and the Netherlands; and 
Postponement of Final Determinations, 66 FR 36748 (July 13, 2001) 
(Preliminary Determinations). The petitioners \1\ and the respondents,

[[Page 65887]]

Urenco Ltd., Urenco (Capenhurst) Ltd., Urenco Nederland BV, and Urenco 
Deutschland GmbH (collectively, Urenco or the respondents), filed case 
briefs on antidumping methodological issues on October 12, 2001, and 
rebuttal briefs on October 19, 2001. A public hearing on the 
antidumping methodological issues was held on October 23, 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).
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    On October 22 and 23, 2001, the petitioners, the Ad Hoc Utilities 
Group,\2\ and 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.
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    \2\ In accordance with section 777(h) of the Act the AdHoc 
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 Operating 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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    In response to a September 28, 2001 submission by the European 
Commission to Mr. Grant Aldonas, Under Secretary for International 
Trade, regarding the antidumping (AD) and countervailing duty (CVD) 
investigations of LEU from France, Germany, the Netherlands and the 
United Kingdom, and Mr. Aldonas' November 7, 2001 reply to this letter 
and the November 22, 2001 submission from the European Commission, the 
petitioners, the Ad Hoc Utilities Group, and respondents filed briefs 
that addressed the content of this correspondence.
    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 delayed 
verifications and a 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 does 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 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 that is published concurrently with this notice.

Period of Investigation

    The period of investigation (POI) is October 1, 1999, through 
September 30, 2000. This period corresponds to the four most recent 
fiscal quarters prior to the month of the filing of the petition (i.e., 
December 2000).

Verification

    As provided in section 782(i) of the Act, we conducted verification 
of the sales and cost information submitted by Urenco from July 16 
through July 20, 2001, in the Netherlands; July 23 through July 30, 
2001, in Germany; July 30 through August 10, 2001, in the United 
Kingdom, and August 22, 2001, in the United States. We used standard 
verification procedures including examination of relevant accounting 
and production records, and original source documents provided by the 
respondent.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
these antidumping proceedings are listed in the Appendix to this notice 
and addressed in the Decision Memorandum for these investigations, 
which is hereby adopted by this notice. The Decision Memorandum for 
these cases is on file in room B-099 of the main Department of 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/frn/summary/list.htm. The paper and electronic versions 
of the Decision Memorandum are identical in content.

Changes Since the Preliminary Determinations

    Based on our findings at verification and analysis of comments 
received, we have made adjustments to the calculation methodology in 
calculating the final dumping margins in these proceedings. These 
adjustments are

[[Page 65888]]

discussed in detail in the Decision Memorandum. For the final 
determinations, we made the following revisions as detailed in (1) 
Memorandum from Ernest Gziryan to Neal Halper (December 13, 2001), and 
(2) Final Calculation Memo, both of which are on file in the Central 
Records Unit, room B-099 of the Main Department of Commerce Building.

Common

    In deriving the net U.S. price and constructed value, we made the 
following changes:
    1. We revised the feed price based on our verification findings;
    2. We did not deduct container rental expenses or feed material 
transportation costs from U.S. price;
    3. We adjusted CV to account for double-counting of movement 
charges;
    4. We made no adjustment for credit expenses;
    5. We eliminated double-counting of a depreciation adjustment in 
calculating the G&A and interest expense.

Urenco (Capenhurst) Limited (UCL)

    1. We adjusted Urenco's reported G&A expense rate by calculating a 
separate G&A expense rate for each Urenco company. We calculated UCL's 
G&A expense rate by combining a Urenco Group G&A expense rate with the 
UCL company-specific G&A rate. We included certain non-operating 
expenses which relate to the general operations of the company in the 
calculation of UCL's G&A expense rate.
    2. We increased UCL's depreciation expense associated with fixed 
assets purchased from the Urenco Group companies to reflect the market 
value of these assets.
    3. We recalculated Urenco's financial expense rate by excluding the 
adjusted G&A expenses from the denominator.
    4. We adjusted UCL's reported cost to include the amount of 
centrifuge losses attributable to the POI.

Urenco Nederland B.V.''s (UNL)

    1. We adjusted Urenco's reported G&A expense rate by calculating a 
separate G&A expense rate for each Urenco company. We calculated UNL's 
G&A expense rate by combining a Urenco Group G&A expense rate with the 
UNL company-specific G&A rate.
    2. We increased UNL's depreciation expense associated with fixed 
assets purchased from the Urenco Group companies to reflect the market 
value of these assets.
    3. We recalculated Urenco's financial expense rate by excluding the 
adjusted G&A expenses from the denominator.
    4. We adjusted UNL's tails provision to reflect the market value of 
the tails disposal services provided by an affiliated company.

Urenco Deutschland GmbH's (UD)

    1. We adjusted Urenco's reported G&A expense rate by calculating a 
separate G&A expense rate for each Urenco company. We calculated UD's 
G&A expense rate by combining a Urenco Group G&A expense rate with the 
UD company-specific G&A rate.
    2. We increased UD's depreciation expense associated with fixed 
assets purchased from the Urenco Group companies to reflect the market 
value of these assets.
    3. We recalculated Urenco's financial expense rate by excluding the 
adjusted G&A expenses from the denominator.
    4. We adjusted UD's reported costs to include income and expense 
items recorded in UD's financial statements prepared in accordance with 
German generally accepted accounting principles.
    5. We increased UD's cost of production by the amount of the 
certain gain used by UD to offset the reported cost.

Final Determinations of Investigations

    We determine that the following weighted-average percentage dumping 
margins for the United Kingdom, Germany, and the Netherlands are as 
follows:

------------------------------------------------------------------------
           Manufacturer/exporter                  Margin (percent)
------------------------------------------------------------------------
Urenco Deutschland GmbH...................                          0.00
Urenco Netherlands B.V....................                          0.00
Urenco (Capenhurst) Ltd...................                  (de minimis)
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Termination of Suspension of Liquidation

    Pursuant to section 735(c)(2) of the Act, we are directing the U.S. 
Customs Service to terminate suspension of liquidation, with respect to 
these antidumping investigations, and release any bond or other 
security and refund any cash deposit.

International Trade Commission Notification

    In accordance with section 735(d) of the Act, we have notified the 
International Trade Commission of our determinations. These 
determinations are published pursuant to sections 735(d) and 777(i)(1) 
of the Act.

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

Appendix--Issues in Decision Memorandum

Scope Issue

    1. Scope clarification

Common Sales Issues

    2. Whether Urenco failed to disclose its affiliation with U.S. 
customers who participate in a joint venture
    3. Whether Urenco failed to disclose sales activity related to 
an affiliated U.K. reseller--Uranium Asset Management Ltd. (``UAM'')
    4. Whether Urenco never fully disclosed the role of its 
affiliated U.S. fuel fabricator--Westinghouse
    5. Whether Urenco receives transportation services from its 
affiliated transporters at market rates and whether facts available 
should be applied
    6. Whether the Department should use adverse facts available to 
calculate Urenco's less than fair value (``LTFV'') margins
    7. Whether Urenco's U.S. sales should be treated as export price 
(``EP'') or constructed export price (``CEP'') Sales
    8. Whether the indirect selling expense (``ISE'') ratio requires 
a revision
    9. Whether feed material transportation costs, cylinder rental 
expenses, and credit expenses should be deducted from Urenco's U.S. 
sales price
    10. Whether feed material transportation cost is double counted
    11. Treatment of ``blended price'' contracts
    12. Whether to apply ``discounts'' provided on separative work 
unites (``SWU'') sold prior to the period of investigation (``POI'')
    13. Whether to utilize only completed deliveries or all sales 
made during the POI

Common Cost Issues

    14. Affiliated Inputs
    14a. Assets purchased from affiliated companies
    15. Cost of Certain Product
    16. Tails disposal costs
    17. Futures Hedging Contracts

[[Page 65889]]

    18. Gain to offset cost
    19. General and administrative (``G&A'') expenses

Urenco Deutschland Cost Issues (``UD'')

    20. Affiliated electricity purchases
    21. Home country Generally Accepted Accounting Principles 
(``GAAP'')

Urenco Nederland Cost Issue (``UNL'')

    22. UNL unreconciled costs

Urenco Capenhurst Ltd. Cost Issue (``UCL'')

    23. Centrifuge failure

[FR Doc. 01-31513 Filed 12-20-01; 8:45 am]
BILLING CODE 3510-DS-P