[Federal Register Volume 67, Number 30 (Wednesday, February 13, 2002)]
[Notices]
[Pages 6688-6689]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-3536]



[[Page 6688]]

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DEPARTMENT OF COMMERCE

International Trade Administration

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


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

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

ACTION: Notice of amended final determinations and notice of 
countervailing duty orders: Low enriched uranium from Germany, the 
Netherlands and the United Kingdom.

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EFFECTIVE DATE: February 13, 2002.

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.

The Applicable Statute and Regulations

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

Scope of Orders

    For purposes of these orders, 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 orders. 
Specifically, these orders 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 orders. For purposes of these orders, 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 orders.
    Also excluded from these orders 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 orders 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.

Amended Final Determinations

    On December 26, 2001, petitioners (United States Enrichment 
Corporation, 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) and respondents 
(Urenco Ltd., Urenco (Capenhurst) Ltd., Urenco Nederland BV, and Urenco 
Deutschland GmbH, collectively Urenco) alleged ministerial errors in 
the calculations of the Final Affirmative Countervailing Duty 
Determinations: Low Enriched Uranium from Germany, the Netherlands, and 
the United Kingdom, 66 FR 65903 (December 21, 2001) (Final 
Determinations). On December 28, 2001, USEC and Urenco submitted 
comments regarding the allegations.
    Urenco alleged that the Department miscalculated the ad valorem 
rate by using as the denominator a significantly understated value of 
material that entered U.S. Customs during the period of investigation 
(POI) and, therefore, overstated the benefit attributable to Urenco. 
USEC disagreed and argued that this was not a ministerial error but a 
well-founded decision.
    We disagree with Urenco. We used the actual entered value for sales 
that entered U.S. Customs during the POI. Therefore, we properly 
calculated the ad valorem rate.
    Urenco also alleged that with respect to the Regional Investment 
Program (IPR) benefit provided to Ultra Centrifuge Nederland N.V. (UNC) 
by the Government of the Netherlands (GON), the Department should have 
used, for purposes of the 0.5 percent test, the value of sales in 1985 
for all of the Urenco Group companies, not just the value of UCN's 
sales in 1985. Petitioners disagreed and contended that the Department 
properly conducted the test.
    We agree with Urenco and have conducted the 0.5 percent test using 
the combined sales of the Urenco Group's predecessors. As a result, the 
subsidy from the IPR is less than 0.5 percent of the combined sales 
and, in accordance with 19 CFR 351.524(b)(2), is allocable to the year 
of receipt (1985). As a result of this revision, the net subsidy for 
this program decreased from 0.03 percent ad valorem to 0.00 percent ad 
valorem.
    USEC alleged that the entered value of the Urenco Group sales must 
be adjusted downward to exclude the value of any ancillary enrichment 
activities (e.g., the value of cylinders for the transport of enriched 
uranium, etc.). USEC claimed that the Department determined to exclude 
the value of ancillary enrichment activities from the sales denominator 
and argued that the disclosure materials are not clear as to whether 
this exclusion was properly made. Urenco contended that USEC's 
allegation failed to satisfy the requirements set forth in 19 CFR 
351.224(d), in that USEC failed to refer to record evidence indicating 
the value of ancillary enrichment activities that should allegedly be 
excluded from the Customs data.
    We disagree with USEC's contention and note that we determined that 
the Customs data, as reported in Exhibit 14 of UCL's Verification 
Report, did not contain any ancillary enrichment sales values.
    These issues are addressed in further detail in the January 18, 
2002 memorandum to Bernard Carreau, Deputy Assistant Secretary, AD/CVD 
Enforcement II, Import Administration, from Melissa G. Skinner, 
Director, Office of AD/CVD Enforcement VI. The public version of this 
memorandum is on file in Room B-099 in the Central

[[Page 6689]]

Records Unit (CRU) of the Main Commerce Building.
    As a result of our corrections, the estimated net countervailable 
subsidy rates attributable to Urenco in each of the countries decreased 
from 2.26 percent ad valorem to 2.23 percent ad valorem. Due to the 
revisions of the net subsidy rates for each of the Urenco companies, 
the all others rates for each of the countries has also changed. The 
all others net countervailable subsidy decreased from 2.26 percent ad 
valorem to 2.23 percent ad valorem.

Countervailing Duty Orders

    In accordance with section 705(d) of the Act, on December 21, 2001, 
the Department published its final determinations in the countervailing 
duty investigations of low enriched uranium from Germany, the 
Netherlands, and the United Kingdom (66 FR 65903). On February 4, 2002, 
the International Trade Commission (ITC) notified the Department of its 
final determinations, pursuant to section 705(b)(1)(A)(i) of the Act, 
that an industry in the United States suffered material injury as a 
result of subsidized imports of low enriched uranium from Germany, the 
Netherlands, and the United Kingdom.
    Therefore, countervailing duties will be assessed on all 
unliquidated entries of low enriched uranium from Germany, the 
Netherlands, and the United Kingdom entered, or withdrawn from 
warehouse, for consumption on or after May 14, 2001, the date on which 
the Department published its preliminary affirmative countervailing 
duty determinations in the Federal Register (66 FR 24329), and before 
September 11, 2001, the date the Department instructed the U.S. Customs 
Service to discontinue the suspensions of liquidation in accordance 
with section 703(d) of the Act, and on all entries and withdrawals of 
subject merchandise made on or after the date of publication of these 
countervailing duty orders in the Federal Register. Section 703(d) 
states that the suspension of liquidation pursuant to a preliminary 
determination may not remain in effect for more than four months. 
Therefore, entries of low enriched uranium made on or after September 
11, 2001, and prior to the date of publication of these orders in the 
Federal Register are not liable for the assessment of countervailing 
duties due to the Department's discontinuation, effective September 11, 
2001, of the suspensions of liquidation.
    In accordance with section 706 of the Act, the Department will 
direct U.S. Customs officers to reinstitute the suspension of 
liquidation for low enriched uranium from Germany, the Netherlands, and 
the United Kingdom effective the date of publication of this notice in 
the Federal Register and to assess, upon further advice by the 
Department pursuant to section 706(a)(1) of the Act, countervailing 
duties for each entry of the subject merchandise in an amount based on 
the net countervailable subsidy rates for the subject merchandise.
    On or after the date of publication of this notice in the Federal 
Register, U.S. Customs officers must require, at the same time as 
importers would normally deposit estimated duties on this merchandise, 
a cash deposit equal to the rates noted below. The All Others rates 
apply to all producers and exporters of low enriched uranium from 
Germany, the Netherlands, and the United Kingdom not specifically 
listed below. The cash deposit rates are as follows:

------------------------------------------------------------------------
        Producer/exporter                    Cash deposit rate
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Germany:
    Urenco Group Limited.........  2.23 percent ad valorem.
    All Others Rate..............  2.23 percent ad valorem.
The Netherlands:
    Urenco Group Limited.........  2.23 percent ad valorem.
    All Others Rate..............  2.23 percent ad valorem.
The United Kingdom:
    Urenco Group Limited.........  2.23 percent ad valorem.
    All Others Rate..............  2.23 percent ad valorem.
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    This notice constitutes the countervailing duty orders with respect 
to low enriched uranium from Germany, the Netherlands, and the United 
Kingdom, pursuant to section 706(a) of the Act. Interested parties may 
contact the CRU, for copies of an updated list of countervailing duty 
orders currently in effect.
    These countervailing duty orders and amended final determinations 
are issued and published in accordance with sections 706(a) and 705 of 
the Act and 19 CFR 351.211 and 351.224.

    Dated: February 6, 2002.
Bernard T. Carreau,
Acting Assistant Secretary for Import Administration.
[FR Doc. 02-3536 Filed 2-12-02; 8:45 am]
BILLING CODE 3510-DS-P