[Federal Register Volume 66, Number 246 (Friday, December 21, 2001)]
[Notices]
[Pages 65901-65902]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-31510]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-427-819]
Notice of Final Affirmative Countervailing Duty Determination:
Low Enriched Uranium From France
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
ACTION: Notice of final affirmative countervailing duty determination.
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SUMMARY: On May 14, 2001, the Department of Commerce (the Department)
published in the Federal Register its preliminary affirmative
determination in the countervailing duty investigation on low enriched
uranium (subject merchandise) from France for the period January 1,
1999 through December 31, 1999.
The net subsidy rate in the final determination differs from that
of the Preliminary Affirmative Countervailing Duty Determination and
Alignment with Final Antidumping Duty Determination: Low Enriched
Uranium from France, 66 FR 24325 (May 14, 2001) (Preliminary
Determination). The revised final net subsidy rate for the investigated
company is listed below in the ``Suspension of Liquidation'' section of
this notice.
EFFECTIVE DATE: December 21, 2001.
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.
SUPPLEMENTARY INFORMATION:
Applicable Statute and Regulations
Unless otherwise indicated, all citations to the statute are
references to the provisions effective January 1, 1995, the effective
date of the amendments made to the Tariff Act of 1930 (the Act) by the
Uruguay Round Agreements Act (URAA). In addition, unless otherwise
indicated, all citations to the Department's regulations are to the
regulations codified at 19 CFR part 351 (2000).
Background
On May 14, 2001, the Department published the preliminary results
of investigation on low enriched uranium from France. See Notice of
Preliminary Affirmative Countervailing Duty Determination and Alignment
with Final Antidumping Duty Determination: Low Enriched Uranium from
France, 66 FR 24325 (May 14, 2001) (Preliminary Determination). This
investigation covers low enriched uranium (subject merchandise) from
France for the period January 1, 1999, through December 31, 1999.
We invited interested parties to comment on the Preliminary
Determination. On October 22 and 23, 2001, the petitioners,\1\ the Ad
Hoc Utilities Group,\2\ and respondent producers/exporters Eurodif,
S.A. and Compagnie Generale des Matieres Nucleaires (COGEMA) filed
briefs on common scope issues in the antidumping and countervailing
duty investigations of LEU from France, Germany, the Netherlands and
the United Kingdom. Rebuttal briefs on these common scope issues were
filed on October 29, 2001, and a public hearing on the common scope
issues was held on October 31, 2001. On October 26, 2001, we received
comments from the petitioners and the respondents. On November 5, 2001,
we received rebuttal comments from petitioners and respondents. A
public hearing was held at the Department of Commerce on November 7,
2001. On or about September 28, 2001, and November 22, 2001, we
received letters from the EC regarding certain issues in these
investigations. On November 7, 2001, Mr. Grant Aldonas, Under-Secretary
for International Trade, replied to the first letter. We invited
comments on these letters, which we received from petitioners,
respondents, and the Ad Hoc Utilities Group, on November 15, 2001, and
November 29, 2001.
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\1\ The petitioners in this investigation are USEC, 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).
\2\ In accordance with section 777(h) of the Act the Ad Hoc
Utilities Group, whose members include: Arizona Public Service Co.,
Carolina Power & Light Co., Dominion Generation, Duke Energy Corp.,
DTE Energy, Entergy Services, Inc., Exelon Corporation, First Energy
Nuclear Operating Co., Florida Power Corp., Florida Power and Light
Co., Nebraska Public Power District, Nuclear Management Co. LLC (on
behalf of certain member companies), PPL Susquehanna LLC, South
Texas Project, Southern California Edison, Southern Nuclear
Operating Co., Union Electric Company, and Wolf Creek Nuclear
Operating Corp., submitted comments as industrial users of subject
merchandise.
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This final determination was originally due on November 26, 2001.
We subsequently tolled the final determination deadline in this
investigation until December 13, 2001, to accommodate certain
verifications and a delayed briefing and hearing schedule that were
delayed because of the events of September 11, 2001.
Amended Scope of Investigation
For purposes of this investigation, 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 this investigation.
Specifically, this investigation 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 investigation. For purposes of this
investigation, 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
investigation.
Also excluded from this investigation 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 investigation is classified in the
Harmonized Tariff Schedule of the United States (HTSUS) at subheading
[[Page 65902]]
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.
Scope Clarification
For further details, see Comment 1 of the ``Issues and Decision
Memorandum: Final Affirmative Countervailing Duty Determination: Low
Enriched Uranium from France'' (Decision Memorandum) from Bernard T.
Carreau, Deputy Assistant Secretary for Import Administration, to
Faryar Shirzad, Assistant Secretary for Import Administration, dated
concurrently with this notice.
Goods Versus Services
Parties in all eight concurrent investigations of this product have
submitted comments on this issue. For a full discussion see Notice of
Final Determination of Sales at Less Than Fair Value: Low Enriched
Uranium from France, which is published concurrently with this notice.
Period of Investigation
The period of investigation (POI) for which we are measuring
subsidies is January 1, 1999 through December 31, 1999.
Verification
As provided in section 782(i) of the Act, we conducted verification
on October 11 through October 17, 2001. We used standard verification
procedures, including meeting with government and company officials and
examining relevant accounting records and original source documents
provided by the respondent. Our verification results are outlined in
detail in the public versions of the verification reports, which are on
file in the Central Records Unit of the Department of Commerce (Room B-
099).
Analysis of Comments Received
All issues raised in the case and rebuttal briefs by parties to
this investigation are addressed in the ``Issues and Decision
Memorandum'' (Decision Memorandum) dated December 13, 2001, which is
hereby adopted by this notice. A list of issues which parties have
raised and to which we have responded, all of which are in the Decision
Memorandum, is attached to this notice as Appendix I. Parties can find
a complete discussion of all issues raised in this investigation and
the corresponding recommendations in this public memorandum which is on
file in 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.
Suspension of Liquidation
In accordance with 703(d)(1)(A)(i) of the Act, we have calculated
an individual rate for Eurodif, S.A., which we have also applied to
COGEMA, Eurodif's sales agent for sales made in the United States. The
``all others'' rate is the same as the rate for Eurodif/COGEMA. These
rates are summarized in the table below:
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Producer/exporter Net Subsidy Rate
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Eurodif, S.A. & COGEMA.................... 13.21% ad valorem.
All Others................................ 13.21% ad valorem.
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In accordance with our Preliminary Determination, we instructed the
U.S. Customs Service to suspend liquidation of all entries of low
enriched uranium from France, which were entered or withdrawn from
warehouse, for consumption on or after May 14, 2001, the date of the
publication of our preliminary determination in the Federal Register.
In accordance with section 703(d) of the Act, we instructed the U.S.
Customs Service to discontinue the suspension of liquidation for
merchandise entered on or after September 11, 2001, but to continue the
suspension of liquidation of entries made between May 14, 2001 and
September 10, 2001.
We will reinstate suspension of liquidation under section 706(a) of
the Act for all entries if the ITC issues a final affirmative injury
determination and will require a cash deposit of estimated
countervailing duties for such entries of merchandise in the amounts
indicated above. If the ITC determines that material injury, or threat
of material injury, does not exist, this proceeding will be terminated
and all estimated duties deposited or securities posted as a result of
the suspension of liquidation will be refunded or canceled.
ITC Notification
In accordance with section 705(d) of the Act, we will notify the
ITC of our determination. In addition, we are making available to the
ITC all non-privileged and non-proprietary information related to this
investigation. We will allow the ITC access to all privileged and
business proprietary information in our files, provided that the ITC
confirms that it will not disclose such information, either publicly or
under an administrative protective order (APO), without the written
consent of the Assistant Secretary for Import Administration.
If the ITC determines that material injury, or threat of material
injury, does not exist, this proceeding will be terminated. If however,
the ITC determines that such injury does exist, we will issue a
countervailing duty order.
Return or Destruction of Proprietary Information
In the event that the ITC issues a final negative injury
determination, this notice will serve as the only reminder to parties
subject to APO of their responsibility concerning the destruction of
proprietary information disclosed under APO in accordance with 19 CFR
351.305(a)(3). Failure to comply is a violation of the APO.
This determination is published pursuant to sections 705(d) and
777(i) of the Act.
Dated: December 13, 2001.
Faryar Shirzad,
Assistant Secretary for Import Administration.
Appendix I--Issues and Decision Memorandum
Methodology and Background Information
I. Subsidies Valuation Information
A. Treatment of the Ad Valorem Rate Calculation and the
Denominator
Analysis of Programs
I. Purchase at Prices that Constitute ``More Than Adequate
Remuneration''
II. Exoneration/Reimbursement of Corporate Income Taxes
Total Ad Valorem Rate
Analysis of Comments
Comment 1: Scope Clarification
Comment 2: Petitioners' Argument that Eurodif Received Non-
Recurring Benefits in the Years 1986 through 1999
Comment 3: Petitioners' Argument that a Portion of the Subsidies
Related to EdF's 1999 Purchases at Prices that Constitute More than
Adequate Remuneration Should be Treated as a Recurring Subsidy
Comment 4: Treatment of ``Part Energie'' Component of EdF's
Price
Comment 5: Respondents' Argument that the Department's Price
Comparison in the Preliminary Determination was Flawed in Other
Respects
Comment 6: Tax Exemption from the GOF
[FR Doc. 01-31510 Filed 12-20-01; 8:45 am]
BILLING CODE 3510-DS-P