[Federal Register: February 13, 2002 (Volume 67, Number 30)]
[Page 6688-6689]
[[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:
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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