[Federal Register Volume 76, Number 214 (Friday, November 4, 2011)]
[Notices]
[Pages 68404-68407]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-28652]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-821-802]


Uranium From the Russian Federation; Final Results of Expedited 
Sunset Review of the Suspension Agreement

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

ACTION: Notice of Final Results of the Expedited Sunset Review of the 
Agreement Suspending the Antidumping Investigation on Uranium from the 
Russian Federation.

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SUMMARY: On July 1, 2011, the U.S. Department of Commerce (``the 
Department'') initiated a third sunset review of the Agreement 
Suspending the Antidumping Investigation on Uranium from the Russian 
Federation (``Suspension Agreement'') pursuant to section 751(c) of the 
Tariff Act of 1930, as amended (``the Act''). See Initiation of Five-
Year (``Sunset'') Review, 76 FR 38613 (July 1, 2011) (``Initiation 
Notice''). On the basis of notices of intent to participate and 
adequate substantive comments filed on behalf of domestic interested 
parties, as well as no response from respondent interested parties, the 
Department is conducting an expedited (120-day) review of the 
Suspension Agreement. As a result of this review, the Department finds 
that termination of the Suspension Agreement would be likely to lead to 
continuation or recurrence of dumping

[[Page 68405]]

at the levels indicated in the ``Final Results of Review'' section of 
this notice.

DATES: Effective Date: November 4, 2011.

FOR FURTHER INFORMATION CONTACT: Maureen Price or Sally C. Gannon, 
Import Administration, International Trade Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue NW., 
Washington, DC 20230, telephone: (202) 482-4271 or (202) 482-0162.

SUPPLEMENTARY INFORMATION: 

History of the Suspension Agreement

    On December 5, 1991, the Department published in the Federal 
Register a notice of initiation of the antidumping duty investigation 
on uranium from the Union of Soviet Socialist Republics (``USSR''). See 
Initiation of Antidumping Duty Investigation: Uranium from the Union of 
Soviet Socialist Republics 56 FR 63711 (December 5, 1991). On December 
23, 1991, the U.S. International Trade Commission (``ITC'') issued an 
affirmative preliminary injury determination.
    On December 25, 1991, the USSR dissolved and the United States 
subsequently recognized the twelve newly independent states which 
emerged: Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, 
Moldova, Russian Federation (``Russia''), Tajikistan, Turkmenistan, 
Ukraine, and Uzbekistan. The Department continued the investigations 
against each of these twelve countries. On June 3, 1992, the Department 
issued an affirmative preliminary determination that uranium from 
Kazakhstan, Kyrgyzstan, Russia, Tajikistan, Ukraine, and Uzbekistan was 
being sold at less-than-fair-value by a weighted-average dumping margin 
of 115.82 percent, and a negative determination regarding the sale of 
uranium from Armenia, Azerbaijan, Belarus, Georgia, Moldova, and 
Turkmenistan. See Preliminary Determinations of Sales at Less Than Fair 
Value: Uranium From Kazakhstan, Kyrgyzstan, Russia, Tajikistan, Ukraine 
and Uzbekistan; and Preliminary Determinations of Sales at Not Less 
Than Fair Value: Uranium From Armenia, Azerbaijan, Belarus, Georgia, 
Moldova and Turkmenistan 57 FR 23380 (June 3, 1992) (1992 Preliminary 
Determinations).
    On October 30, 1992, the Department suspended the antidumping duty 
investigations involving uranium from Kazakhstan, Kyrgyzstan, Russia, 
Tajikistan, Ukraine, and Uzbekistan on the bases of agreements by the 
countries' respective governments to restrict the volume of direct or 
indirect exports to the United States in order to prevent the 
suppression or undercutting of price levels of United States domestic 
uranium. See Antidumping; Uranium from Kazakhstan, Kyrgyzstan, Russia, 
Tajikistan, Ukraine, and Uzbekistan; Suspension of Investigations and 
Amendment of Preliminary Determinations, 57 FR 49220, 49235 (October 
30, 1992) (1992 Suspension Agreements). The Department also amended its 
preliminary determination to include highly-enriched uranium (``HEU'') 
in the scope of the investigations. See Id.
    The first amendment to the Suspension Agreement, effective on March 
11, 1994, authorized ``matched sales'' in the United States of Russian-
origin and U.S.-origin natural uranium and separative work units 
(``SWU''). See Amendment to Agreement Suspending the Antidumping 
Investigation on Uranium from the Russian Federation, 59 FR 15373 
(April 1, 1994). The amendment also extended the duration of the 
Suspension Agreement to March 31, 2004. See Id.
    Effective on October 3, 1996, the Department and the Government of 
Russia agreed to two amendments to the Suspension Agreement. One 
amendment provided for the sale in the United States of feed associated 
with imports of Russian low-enriched uranium (``LEU'') derived from 
HEU, making the Suspension Agreement consistent with the United States 
Enrichment Corporation Privatization Act (42 U.S.C. 2297h, et seq.) 
(``USEC Privatization Act''). The second amendment restored previously-
unused quota for SWU and included Russian uranium which had been 
enriched in a third country within the scope of the Suspension 
Agreement. According to this second amendment, these modifications 
would remain in effect until the date two years after the effective 
date of the amendment. See Amendments to the Agreement Suspending the 
Antidumping Investigation on Uranium from the Russian Federation, 61 FR 
56665, 56667 (November 4, 1996).
    The next amendment to the Suspension Agreement, effective on May 7, 
1997, doubled the amount of Russian-origin uranium that may be imported 
into the United States for further processing prior to re-exportation, 
and lengthened the period of time uranium may remain in the United 
States for such processing to up to three years. See Amendment to 
Agreement Suspending the Antidumping Investigation on Uranium from the 
Russian Federation, 62 FR 37879 (July 15, 1997).
    On July 31, 1998, the Department notified interested parties of a 
change in the administration of the matched sales quota in that the 
Department would, effective immediately, use a calendar year basis 
(i.e., January 1-December 31) rather than the previously-used quota 
year basis (i.e., April 1-March 31). See Agreement Suspending the 
Antidumping Investigation on Uranium from the Russian Federation, 63 FR 
40879 (July 31, 1998).
    On August 2, 1999, the Department published a notice of initiation 
of the first five-year sunset review of the Suspension Agreement 
(``First Sunset Review''). See Initiation of Five-Year (``Sunset'') 
Reviews, 64 FR 41915 (August 2, 1999). On July 5, 2000, the Department 
published its notice of the final results of the full sunset review, 
finding that revocation of the Suspension Agreement would be likely to 
lead to continuation or recurrence of dumping at a percentage weighted-
average margin of 115.82 percent for all Russian manufacturers/
exporters. See Notice of Final Results of Full Sunset Review: Uranium 
from Russia, 65 FR 41439 (July 5, 2000). On August 22, 2000, the 
Department published a notice of continuation of the Suspension 
Agreement pursuant to the Department's affirmative determination and 
the ITC's affirmative determination that termination of the Suspension 
Agreement would be likely to lead to continuation or recurrence of 
material injury to an industry in the United States within a reasonably 
foreseeable time. See Notice of Continuation of Suspended Antidumping 
Duty Investigation: Uranium from Russia, 65 FR 50958 (August 22, 2000). 
See also Uranium from Russia; Corrected Continuation of Suspended 
Antidumping Duty Investigation 65 FR 52407 (August 29, 2000).
    On July 1, 2005, the Department published a notice of initiation of 
the second five-year sunset review of the Suspension Agreement 
(``Second Sunset Review''). See Initiation of Five-year (``Sunset'') 
Reviews, 70 FR 38101 (July 1, 2005). On June 6, 2006, the Department 
published its notice of the final results of the full sunset review, 
finding that termination of the Suspension Agreement would be likely to 
lead to continuation or recurrence of dumping at a percentage weighted-
average margin of 115.82 percent for all Russian manufacturers/
exporters. See Final Results of Five-Year Sunset Review of Suspended 
Antidumping Duty Investigation on Uranium From the

[[Page 68406]]

Russian Federation 71 FR 32517 (June 6, 2006). On August 11, 2006, the 
Department published a notice of continuation of the Suspension 
Agreement pursuant to the Department's affirmative determination and 
the ITC's affirmative determination that termination of the suspended 
investigation on uranium from Russia would be likely to lead to 
continuation or recurrence of material injury to an industry in the 
United States within a reasonably foreseeable time. See Continuation of 
Suspended Antidumping Duty Investigation: Uranium From the Russian 
Federation, 71 FR 46191 (August 11, 2006).
    On February 1, 2008, the Department and the Government of Russia 
signed another amendment to the Suspension Agreement (``2008 
Amendment'') instituting new quotas through 2020 for commercial Russian 
uranium exports sold directly or indirectly to U.S. utilities or 
otherwise. See Amendment to the Agreement Suspending the Antidumping 
Investigation on Uranium From the Russian Federation, 73 FR 7705 
(February 11, 2008) (2008 Amendment). Of particular relevance to this 
sunset review, Section XII of the 2008 Amendment states in part that:

    In addition, the Department shall conduct sunset reviews under 
19 U.S.C. 1675(c) in the years 2011 and 2016. All parties agree that 
the sunset reviews shall be expedited, pursuant to 19 U.S.C. 
1675(C)(4) and (C)(3)(B), respectively, at both the Department of 
Commerce and the International Trade Commission.

    See 2008 Amendment, at 7707. The Department issued its memorandum 
regarding the 2008 Amendment's prevention of price suppression or 
undercutting on May 14, 2008. See Memorandum to David M. Spooner, 
Assistant Secretary for Import Administration, from Ronald K. 
Lorentzen, Deputy Assistant Secretary for Policy and Negotiations, 
regarding ``Prevention of Price Suppression or Undercutting of Price 
Levels of Domestic Products by the Amended Agreement Suspending the 
Antidumping Investigation on Uranium from the Russian Federation'' (May 
14, 2008).
    In September 2008, Congress enacted legislation which codified many 
provisions in the amended Suspension Agreement and instituted import 
quotas through 2020 that in large part mirror the quotas in the 2008 
Amendment. See Consolidated Security, Disaster Assistance, and 
Continuing Appropriations Act, 2009, H.R. 2638, 110th Cong. Section 
8118, p.110-123 (2008) (``Domenici Amendment'').\1\ On February 2, 
2010, the Department issued its Statement of Administrative Intent 
which contained guidelines clarifying the Department's intent with 
regard to the implementation of the amended Suspension Agreement and to 
take into consideration the requirements of the Domenici Amendment. See 
``Statement of Administrative Intent,'' (February 2, 2010) (``SAI'').
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    \1\ Section 8118 of the Domenici Amendment amends the USEC 
Privatization Act.
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    There have been no completed administrative reviews of the 
Suspension Agreement. The Suspension Agreement remains in effect for 
all manufacturers, producers, and exporters of uranium from Russia.

Scope of Review

    The merchandise covered by this Suspension Agreement (Section III, 
``Product Coverage'') includes the following products from Russia: \2\
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    \2\ See 1992 Suspension Agreements, at 49235.
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    Natural uranium in the form of uranium ores and concentrates; 
natural uranium metal and natural uranium compounds; alloys, 
dispersions (including cermets), ceramic products, and mixtures 
containing natural uranium or natural uranium compounds; uranium 
enriched in U\235\ and its compounds; alloys, dispersions (including 
cermets), ceramic products, and mixtures containing uranium enriched in 
U\235\ or compounds of uranium enriched in U\235\; and any other forms 
of uranium within the same class or kind.
    Uranium ore from Russia that is milled into 
U3O8 and/or converted into UF6 in 
another country prior to direct and/or indirect importation into the 
United States is considered uranium from Russia and is subject to the 
terms of this Suspension Agreement.
    For purposes of this Suspension Agreement, uranium enriched in 
U\235\ or compounds of uranium enriched in U\235\ in Russia are covered 
by this Suspension Agreement, regardless of their subsequent 
modification or blending. Uranium enriched in U\235\ in another country 
prior to direct and/or indirect importation into the United States is 
not considered uranium from Russia and is not subject to the terms of 
this Suspension Agreement.\3\
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    \3\ As noted above, the second amendment of two amendments to 
the Suspension Agreement effective on November 4, 1996, in part 
included within the scope of the Suspension Agreement Russian 
uranium which had been enriched in a third country prior to 
importation into the United States. According to the amendment, this 
modification remained in effect until October 3, 1998. See 
Amendments to the Agreement Suspending the Antidumping Investigation 
on Uranium from the Russian Federation, 61 FR 56665, 56667 (November 
4, 1996).
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    HEU is within the scope of the underlying investigation, and HEU is 
covered by this Suspension Agreement. For the purpose of this 
Suspension Agreement, HEU means uranium enriched to 20 percent or 
greater in the isotope uranium-235.\4\
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    \4\ Section IV.M of the Suspension Agreement in no way prevents 
Russia from selling directly or indirectly any or all of the HEU in 
existence at the time of the signing of the Suspension Agreement 
and/or LEU produced in Russia from HEU to the U.S. Department of 
Energy (``DOE''), its governmental successor, its contractors, 
assigns, or U.S. private parties acting in association with DOE or 
the United States Enrichment Corporation and in a manner not 
inconsistent with the agreement between the United States and Russia 
concerning the disposition of HEU resulting from the dismantlement 
of nuclear weapons in Russia. See 1992 Suspension Agreements, at 
49237.
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    Imports of uranium ores and concentrates, natural uranium 
compounds, and all forms of enriched uranium are currently classifiable 
under the Harmonized Tariff Schedule of the United States (``HTSUS'') 
subheadings: 2612.10.00, 2844.10.20, 2844.20.00, respectively. Imports 
of natural uranium metal and forms of natural uranium other than 
compounds are currently classifiable under HTSUS subheadings: 
2844.10.10 and 2844.10.50. HTSUS subheadings are provided for 
convenience and Customs purposes. The written description of the scope 
of this proceeding is dispositive.
    The Department has not received any scope requests or made any 
scope determinations in this proceeding since the Second Sunset Review.

Statute and Regulations

    This review is being conducted pursuant to sections 751(c) and 752 
of the Act. The Department's procedures for the conduct of sunset 
reviews are set forth in Procedures for Conducting Five-year 
(``Sunset'') Reviews of Antidumping and Countervailing Duty Orders, 63 
FR 13516 (March 20, 1998) (``Sunset Regulations'') and in 19 CFR Part 
351 (1999) in general.

Background

    On July 1, 2011, the Department initiated the third sunset review 
of the suspended antidumping duty investigation on uranium from Russia, 
pursuant to section 751(c) of the Act. See Initiation of Five-Year 
(``Sunset'') Review, 76 FR 38613 (July 1, 2011). The Department 
received a notice of intent to participate in this sunset review from 
USEC, on July 13, 2011, and from Power Resources, Inc. (``PRI''), and 
Crow Butte Resources, Inc. (``Crow Butte''), on July 18, 2011 
(collectively, ``domestic interested parties''), within the

[[Page 68407]]

applicable deadline specified in section 351.218(d)(1)(i) of the 
Department's regulations. Domestic interested parties claimed 
interested-party status under section 771(9)(C) of the Act as producers 
of the domestic like product.
    The Department also received complete substantive responses from 
the domestic interested parties within the 30-day deadline specified in 
the Department's regulations under section 351.218(d)(3)(i). The 
Department did not receive a substantive response from the Russian 
government or any Russian producer/exporter of the subject merchandise. 
On August 16, 2011, the Department determined that the substantive 
responses from the domestic interested parties were adequate, 
consistent with the requirements of section 351.218(e)(1)(i)(A). See 
Memorandum to Sally C. Gannon, Director for Bilateral Agreements, 
Office of Policy, from Maureen Price, Senior Policy Analyst, Office of 
Policy, regarding ``Sunset Review of the Agreement Suspending the 
Antidumping Investigation of Uranium from the Russian Federation: 
Adequacy Determination'' (August 16, 2011). Based on the lack of any 
substantive response from respondent interested parties, the Department 
also determined to conduct an expedited (120-day) sunset review, in 
accordance with 19 CFR 351.218(e)(1)(ii)(C)(2). See Id. See also Letter 
from Barbara E. Tillman, Director, Office 6, AD/CVD Operations, to 
Catherine DeFilippo, Director, Office of Investigations, International 
Trade Commission (August 22, 2011).

Analysis of Comments Received

    All issues raised by interested parties in this sunset review are 
addressed in the ``Issues and Decision Memorandum for the Third Sunset 
Review of the Agreement Suspending the Antidumping Duty Investigation 
on Uranium from the Russian Federation; Final Results,'' to Paul 
Piquado, Assistant Secretary for Import Administration, from Carole 
Showers, Acting Deputy Assistant Secretary for Policy and Negotiations 
(October 28, 2011) (``Issues and Decision Memorandum''), which is 
adopted by this notice. The issues, and corresponding recommendations, 
discussed in the Issues and Decision Memorandum include the likelihood 
of continuation or recurrence of dumping and the magnitude of the 
margins likely to prevail were the suspended antidumping duty 
investigation to be terminated. The Issues and Decision Memorandum is a 
public document and is on file electronically via Import 
Administration's Antidumping and Countervailing Duty Centralized 
Electronic Service System (``IA ACCESS''). Access to IA ACCESS is 
available in the Central Records Unit (``CRU''), room 7046, of the main 
Department of Commerce building. In addition, a complete version of the 
Issues and Decision Memorandum can be accessed directly on the Internet 
at http://www.trade.gov/ia/frn. The signed Issues and Decision 
Memorandum and the electronic version of the Issues and Decision 
Memorandum are identical in content.

Final Results of Review

    We determine that termination of the Suspension Agreement and the 
underlying antidumping duty investigation on uranium from Russia would 
likely lead to a continuation or recurrence of dumping at the following 
percentage weighted-average margin:

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                                                            Weighted-
                 Exporter/manufacturer                   average margin
                                                            (percent)
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Russia-Wide...........................................            115.82
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    This notice also serves as the only reminder to parties subject to 
administrative protective order (``APO'') of their responsibility 
concerning the return or destruction of proprietary information 
disclosed under APO in accordance with 19 CFR 351.305 of the 
Department's regulations. Timely notification of the return or 
destruction of APO materials or conversion to judicial protective order 
is hereby requested. Failure to comply with the regulations and terms 
of an APO is a violation which is subject to sanction.
    We are issuing and publishing this notice in accordance with 
sections 751(c), 752(c), and 777(i)(1) of the Tariff Act.

    Dated: October 28, 2011.
Paul Piquado,
Assistant Secretary for Import Administration.
[FR Doc. 2011-28652 Filed 11-3-11; 8:45 am]
BILLING CODE 3510-DS-P