[Federal Register Volume 67, Number 30 (Wednesday, February 13, 2002)]
[Notices]
[Pages 6689-6691]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-3537]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-427-819]


Notice of Amended Final Determination and Notice of 
Countervailing Duty Order: Low Enriched Uranium From France

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

ACTION: Notice of amended final determination and notice of 
countervailing duty order: Low enriched uranium from France.

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EFFECTIVE DATE: February 13, 2002.

FOR FURTHER INFORMATION CONTACT: Michael Grossman at (202) 482-3146 or 
Richard Herring at (202) 482-4149, 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 Order

    For purposes of this order, 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

[[Page 6690]]

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 this order. 
Specifically, this order 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 this order. For purposes of this order, 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 this order.
    Also excluded from this order 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 this order 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 Determination

    On December 21, 2001, counsel representing respondents (Eurodif 
S.A., Compagnie Generale de Matieres Nucleaires (COGEMA) and the 
Government of France (GOF)) alleged ministerial errors in the 
calculations of the Final Affirmative Countervailing Duty 
Determination: Low Enriched Uranium from France, 66 FR 65901 (December 
21, 2001) (Final Determination). On December 26, 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) alleged a 
ministerial error in the Final Determination. On December 31, 2001, 
respondents submitted comments regarding petitioners' allegations.
    Respondents alleged that the Department miscalculated the ad 
valorem rate by erroneously multiplying its calculated price 
differential by the quantity of SWU EdF was entitled to receive, rather 
than the quantity delivered. Respondents argued that the Department 
should reduce its calculated benefit by the overstated portion of 
electricity payment that was never made by EdF.
    Petitioners argued that the Department understated the amount of 
``part usine'' (which together with ``part energie'' makes up the 
entire price pade by EdF to Eurodif) actually paid by EdF to Eurodif by 
erroneously dividing the total amount paid by EdF in 1999 for ``part 
usine'' by the amount of SWU actually delivered to EdF, as opposed to 
by the amount of SWU that EdF could have taken. Petitioners stated that 
to calculate the correct total amount per SWU paid by EdF, the 
Department could have added the total amount of ``part usine'' and 
``part energie'' paid by EdF to Eurodif in 1999 and divided by the 
number of SWUs in the delivered LEU during 1999 or by calculating the 
amount per delivered SWU paid for the ``usine'' and ``energie'' and 
adding together those amounts. Respondents argued that petitioners' 
allegation is outside the scope of ministerial error corrections in 
that petitioners propose to have the Department alter an aspect of the 
calculation that is both substantive and intentional, not arithmetic or 
clerical and unintentional.
    We agree with respondents that the Department erroneously 
multiplied the calculated price differential by the wrong SWU quantity; 
however, we disagree with the manner in which respondents proposed to 
amend the calculated benefit. The corrected benefit is the calculated 
price differential, unchanged from the Final Determination, multiplied 
by the quantity of SWUs delivered to EdF during the POI. We disagree 
with petitioners' ministerial error allegation, finding that the 
allegation is not one of ``an error in addition, subtraction, or 
arithmetic function * * * [or] other similar type of unintentional 
error'' as provided in 19 CFR 351.224(f).
    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 Records Unit (CRU) 
of the Main Commerce Building.
    As a result of our corrections, the estimated net countervailable 
subsidy rate attributable to Eurodif/COGEMA decreased from 13.21 
percent ad valorem to 12.15 percent ad valorem. Due to the revision of 
the net subsidy rate for Eurodif/COGEMA, the all others rate has also 
changed. The all others net countervailable subsidy decreased from 
13.21 percent ad valorem to 12.15 percent ad valorem.

Countervailing Duty Order

    In accordance with section 705(d) of the Act, on December 21, 2001, 
the Department published its final determination in the countervailing 
duty investigation of low enriched uranium from France (66 FR 65901). 
On February 4, 2002, the International Trade Commission (ITC) notified 
the Department of its final determination, 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 France.
    Therefore, countervailing duties will be assessed on all 
unliquidated entries of low enriched uranium from France 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 determination in the Federal Register, and before 
September 11, 2001, the date the Department instructed the U.S. Customs 
Service to discontinue the suspension 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 this 
countervailing duty order 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 this order 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 suspension of liquidation.

[[Page 6691]]

    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 France 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 rate 
applies to all producers and exporters of low enriched uranium from 
France not specifically listed below. The cash deposit rates are as 
follows:

------------------------------------------------------------------------
         Producer/exporter: France                Cash deposit rate
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Eurodif/COGEMA............................  12.15 percent ad valorem
All Others Rate...........................  12.15 percent ad valorem
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    This notice constitutes the countervailing duty order with respect 
to low enriched uranium from France, pursuant to section 706(a) of the 
Act. Interested parties may contact the CRU, for copies of an updated 
list of countervailing duty order currently in effect.
    This countervailing duty order and amended final determination 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. 02-3537 Filed 2-12-02; 8:45 am]
BILLING CODE 3510-DS-P