[Federal Register Volume 69, Number 129 (Wednesday, July 7, 2004)]
[Notices]
[Pages 40869-40871]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-15412]


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DEPARTMENT OF COMMERCE

International Trade Administration

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


Final Results of Countervailing Duty Administrative Reviews: Low 
Enriched Uranium From Germany, the Netherlands, and the United Kingdom

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

ACTION: Notice of final results of countervailing duty administrative 
reviews.

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SUMMARY: On February 5, 2004, the Department of Commerce (the 
Department) published in the Federal Register its preliminary results 
of administrative reviews of the countervailing duty (CVD) orders on 
low enriched uranium from Germany, the Netherlands, and the United 
Kingdom for the period May 14, 2001, through December 31, 2002 (see 
Preliminary Results of Countervailing Duty Administrative Reviews: Low 
Enriched Uranium from Germany, the Netherlands, and the United Kingdom, 
69 FR 5498 (February 5, 2004) (Preliminary Results)). The Department 
has now completed these administrative reviews in accordance with 
section 751(a) of the Tariff Act of 1930, as amended (the Act).
    Based on information received since the Preliminary Results and our 
analysis of the comments received, the Department has revised the net 
subsidy rate for Urenco Deutschland GmbH of

[[Page 40870]]

Germany (UD), Urenco Nederland B.V. of the Netherlands (UNL), Urenco 
(Capenhurst) Limited (UCL) of the United Kingdom, Urenco Ltd., and 
Urenco Inc. (collectively, the Urenco Group or respondents), the 
producers/exporters of subject merchandise covered by these reviews. 
For further discussion of the changes we have made since the 
Preliminary Results, see the ``Issues and Decision Memorandum from Gary 
Taverman, Acting Deputy Assistant Secretary for Import Administration, 
Group I, to Jeffrey May, Acting Assistant Secretary for Import 
Administration concerning the ``Final Results of Countervailing Duty 
Administrative Reviews: Low Enriched Uranium from Germany, the 
Netherlands, and the United Kingdom'' (Decision Memorandum) dated June 
30, 2004. The final net subsidy rates for the reviewed companies are 
listed below in the section entitled ``Final Results of Reviews.''

DATES: Effective July 7, 2004.

FOR FURTHER INFORMATION CONTACT: Darla Brown or Robert Copyak, Office 
of AD/CVD Enforcement III, Import Administration, U.S. Department of 
Commerce, Room 4012, 14th Street and Constitution Avenue, NW., 
Washington, DC 20230; telephone: (202) 482-2786.

SUPPLEMENTARY INFORMATION:

Background

    On February 5, 2004, the Department published in the Federal 
Register its Preliminary Results. We invited interested parties to 
comment on the results. Since the preliminary results, the following 
events have occurred.
    On March 8, 2004, we received case briefs from petitioners \1\ and 
respondents. In their case brief, petitioners requested a hearing. On 
March 15, 2004, we received rebuttal briefs from petitioners and 
respondents. On April 1, 2004, a public hearing was held at the 
Department of Commerce.
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    \1\ Petitioners are the United States Enrichment Corporation 
(USEC) and USEC Inc.
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    On May 27, 2004, we extended the deadline for the publication of 
these final results from June 4, 2004, until June 30, 2004. See Low 
Enriched Uranium from France, Germany, the Netherlands, and the United 
Kingdom: Extension of Final Results of Countervailing Duty 
Administrative Reviews, 69 FR 31792 (June 7, 2004).
    Pursuant to 19 CFR 351.213(b), these reviews cover only those 
producers or exporters of the subject merchandise for which a review 
was specifically requested. Accordingly, these reviews cover the Urenco 
Group. These reviews cover the period May 14, 2001, through December 
31, 2002, and five programs.

Scope of Reviews

    For purposes of these reviews, the product covered is all low 
enriched uranium (LEU). LEU is enriched uranium hexafluoride 
(UF6) with a U\235\ 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 U\235\ 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 U\235\ concentration 
of no greater than 0.711 percent and natural uranium concentrates 
converted into uranium hexafluoride with a U\235\ 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 designated 
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 currently classifiable 
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.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
these reviews are addressed in the Decision Memorandum, which is hereby 
adopted by this notice. A list of the issues contained in the Decision 
Memorandum is attached to this notice as Appendix I. Parties can find a 
complete discussion of all issues raised in these reviews and the 
corresponding recommendations in this public memorandum, which is on 
file in the Central Record Unit (CRU), 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.

Final Results of Reviews

    In accordance with section 705(c)(1)(B)(i) of the Act, we 
calculated an ad valorem subsidy rate for the Urenco Group for calendar 
years 2001 and 2002. For 2001, we determine the net subsidy rate for 
the Urenco Group to be 1.57 percent ad valorem, and for 2002, we 
determine the net subsidy rate for the Urenco Group to be 1.47 percent 
ad valorem.
    We will instruct U.S. Customs and Border Protection (CBP), within 
15 days of publication of the final results of these reviews, to 
liquidate shipments of low enriched uranium by Urenco from Germany, the 
Netherlands, and the United Kingdom entered, or withdrawn from 
warehouse, for consumption from May 14, 2001, through September 10, 
2001, at 1.57 percent ad valorem and from February 13, 2002, through 
December 31, 2002, at 1.47 percent ad valorem of the f.o.b. invoice 
price. We have determined that the estimated net subsidy for future 
Urenco imports is zero (see the Decision Memorandum at Comment 3: Cash 
Deposit Rate for Future Urenco Imports). Therefore, the Department also 
will instruct CBP not to collect cash deposits of estimated 
countervailing duties on all shipments of the subject merchandise from 
the reviewed entity, entered, or withdrawn from warehouse, for 
consumption on or after the date of publication of the final results of 
these reviews. In addition, for the periods May 14, 2001, through 
September 10, 2001, and February 13, 2002, through December 31, 2002, 
the assessment rates applicable to all non-reviewed companies covered 
by this order are the cash deposit rates in effect at the time of 
entry.

[[Page 40871]]

    Because the Uruguay Round Agreements Act (URAA) replaced the 
general rule in favor of a country-wide rate with a general rule in 
favor of individual rates for investigated and reviewed companies, the 
procedures for establishing countervailing duty rates, including those 
for non-reviewed companies, are now essentially the same as those in 
antidumping cases, except as provided for in section 777A(e)(2) of the 
Act. The requested review will normally cover only those companies 
specifically named. See 19 CFR 351.213(b). Pursuant to 19 CFR 
351.212(c), for all companies for which a review was not requested, 
duties must be assessed at the cash deposit rate, and cash deposits 
must continue to be collected, at the rate previously ordered. As such, 
the countervailing duty cash deposit rate applicable to a company can 
no longer change, except pursuant to a request for a review of that 
company. See Federal-Mogul Corporation and The Torrington Company v. 
United States, 822 F. Supp. 782 (CIT 1993) and Floral Trade Council v. 
United States, 822 F. Supp. 766 (CIT 1993). Therefore, the cash deposit 
rates for all companies except those covered by these reviews will be 
unchanged by the results of these reviews.
    We will instruct CBP to continue to collect cash deposits for non-
reviewed companies at the most recent company-specific or country-wide 
rate applicable to the company. Accordingly, the cash deposit rates 
that will be applied to non-reviewed companies covered by this order 
will be the rate for that company established in the most recently 
completed administrative proceeding conducted under the URAA. See 
Notice of Amended Final Determinations and Notice of Countervailing 
Duty Orders: Low Enriched Uranium from Germany, the Netherlands and the 
United Kingdom, 67 FR 6688 (February 13, 2002) (Amended Final). This 
rate shall apply to all non-reviewed companies until a review of a 
company assigned this rate is requested. In addition, for the period 
May 14, 2001, through December 31, 2002, the assessment rates 
applicable to all non-reviewed companies covered by these orders are 
the cash deposit rates in effect at the time of entry.
    This notice also serves as a reminder to parties subject to 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely written 
notification of return/destruction of APO materials or conversion to 
judicial protective order is hereby requested. Failure to comply with 
the regulations and the terms of an APO is a sanctionable violation.
    These administrative reviews and this notice are issued and 
published in accordance with sections 751(a)(1) and 777(i) of the Act.

    Dated: June 30, 2004.
Jeffrey May,
Acting Assistant Secretary for Import Administration.

Appendix I--Issues and Decision Memorandum

I. Methodology and Background Information
    A. International Consortium
II. Subsidies Valuation Information
    A. Allocation Period
    B. Benchmarks for Loans and Discount Rates
    C. Calculation of Ad Valorem Rates
III. Analysis of Programs
    A. Programs Determined To Confer Subsidies From the Government 
of Germany
    1. Enrichment Technology Research and Development Program
    2. Forgiveness of Centrifuge Enrichment Capacity Subsidies
    B. Program Determined Not To Confer a Benefit From the 
Government of Germany
    1. Investment Allowance Act
    C. Programs Determined To Be Not Used From the Government of the 
Netherlands
    1. Wet Investeringsrekening Law (WIR)
    2. Regional Investment Premium
IV. Total Ad Valorem Rate
V. Analysis of Comments
    Comment 1: Allocation Period
    Comment 2: Redirected Deliveries
    Comment 3: Cash Deposit Rate for Future Urenco Imports
    Comment 4: Draft Cash Deposit and Liquidation Instructions
    Comment 5: Errors in the Preliminary Results Calculations
    Comment 6: Centrifuge Enrichment Capacity Subsidies by the 
Government of Germany
    Comment 7: Sales Denominator
    Comment 8: Enrichment Services
    Comment 9: Industry Support

[FR Doc. 04-15412 Filed 7-6-04; 8:45 am]
BILLING CODE 3510-DS-P