[Federal Register Volume 66, Number 246 (Friday, December 21, 2001)]
[Notices]
[Pages 65903-65905]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-31511]
[[Page 65903]]
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DEPARTMENT OF COMMERCE
International Trade Administration
[(C-428-829); (C-421-809); (C-412-821)]
Notice of Final Affirmative Countervailing Duty Determinations:
Low Enriched Uranium From Germany, the Netherlands, and the United
Kingdom
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
ACTION: Notice of Final Affirmative Countervailing Duty Determinations.
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SUMMARY: On May 14, 2001, the Department of Commerce (the Department)
published in the Federal Register its preliminary affirmative
determinations in the countervailing duty investigations of low
enriched uranium (subject merchandise) from Germany, the Netherlands,
and the United Kingdom for the period January 1, 1999 through December
31, 1999 (66 FR 24329).
The net subsidy rate in the Final Determination differs from that
of the 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: 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.
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
determinations of its investigations of low enriched uranium from
Germany, the Netherlands, and the United Kingdom. See Notice of
Preliminary Affirmative Countervailing Duty Determinations and
Alignment with Final Antidumping Duty Determinations: Low Enriched
Uranium from Germany, the Netherlands, and the United Kingdom, 66 FR
24329 (May 14, 2001) (Preliminary Determinations). These investigations
cover low enriched uranium (subject merchandise) from Germany, the
Netherlands, and the United Kingdom for the period January 1, 1999,
through December 31, 1999.
We invited interested parties to comment on the Preliminary
Determinations. On October 22 and 23, 2001, the petitioners \1\, the Ad
Hoc Utilities Group,\2\ and Urenco Ltd., Urenco (Capenhurst) Ltd.,
Urenco Nederland BV, and Urenco Deutschland GmbH (collectively, Urenco
or the respondents) 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 on 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 these investigations 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 of 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 Orperting 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, PSEG
Nuclear 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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These final determinations were originally due on November 26,
2001. We subsequently tolled the final determination deadline in these
investigations 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 these investigations, 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 investigations.
Specifically, these investigations 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 investigations. For purposes of these
investigations, 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
investigations.
Also excluded from these investigations 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 investigations is classified in
the
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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.
Scope Clarification
For further details, see Comment 1 of the ``Issues and Decision
Memorandum for the Antidumping Duty Investigation of Low Enriched
Uranium from Germany, Netherlands and the United Kingdom'' (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
of the information submitted by Urenco from June 11 through June 15,
2001, in the Netherlands; June 18 through June 22, 2001, in Germany;
and September 25 through October 2, 2001, in the United Kingdom. We
used standard verification procedures, including meeting with
government and company officials and examining relevant accounting
records and original source documents provided by the respondents. 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
these investigations 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 these investigations 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 sections 701(d) and 703(d)(1)(A)(i) of the Act,
we have calculated a single rate for the Urenco Group with respect to
exports from each of the three countries. The ``all others'' rate is
the same as the rate for the Urenco Group. These rates are summarized
in the table below:
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Producer/exporter Net subsidy rate
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Urenco Group Ltd.......................... 2.26 percent ad valorem.
All Others................................ 2.26 percent ad valorem.
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In accordance with our preliminary affirmative determinations, we
instructed the U.S. Customs Service to suspend liquidation of all
entries of low enriched uranium from Germany, the Netherlands, and the
United Kingdom, which were entered or withdrawn from warehouse, for
consumption on or after May 14, 2001, the date of the publication of
our preliminary determinations 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 determinations. In addition, we are making available to the
ITC all non-privileged and non-proprietary information related to these
investigations. 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 publically
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, these proceedings will be terminated. If
however, the ITC determines that such injury does exist, we will issue
countervailing duty orders.
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.
These determinations are 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
Summary
Methodology and Background Information
I. Subsidies Valuation Information
A. Allocation Period
B. Benchmarks for Loans and Discount Rate
C. Treatment of the Ad Valorem Rate Calculation and the
Denominator
Analysis of Programs
I. Programs Determined to Confer Subsidies from the Government of
Germany
A. Enrichment Technology Research and Development Program
B. Forgiveness of Centrifuge Enrichment Capacity Subsidies
C. Investment Allowance Act
II. Program Determined To Confer Subsidies From the Government of
the Netherlands
A. Regional Investment Premium
III. Programs Determined Not to Confer a Benefit from the Government
of Germany
A. Regional Government Provision of Industrial Site
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B. Regional Development Grants
IV. Programs Determined Not to Confer a Benefit from the Government
of the Netherlands
A. Centrifuge Enrichment Technology Research
B. 1981 Equity Conversion
V. Programs Determined Not to Confer a Benefit from the Government
of the United Kingdom
A. Regional Development Grants
B. Centrifuge Development Grant
C. Fossil Fuel Levy
D. Forgiveness of Decommissioning Debt
VI. Programs Determined Not Countervailable from the Government of
the Netherlands
A. Subordinated Shareholder Loan Provided to Urenco Ltd. by UCN
B. 1998 Shareholder Loan
VII. Programs Determined Not Countervailable from the Government of
the United Kingdom
A. Assumption of Debt: European Investment Bank Loans
B. Loan-Stock Debt Forgiveness Program
C. Subordinated Shareholder Loan Provided to Urenco Ltd. by INFL
D. Extraordinary Asset Write Downs Prior to Transfer of BNFL
Enrichment Facilities
VIII. Programs Determined Not Used in the Netherlands
A. Wet Investeringsrekening Law (WIR)
B. Subsidized Loan Forgiveness
IX. Program Determined Not Used in the United Kingdom
A. Financial Assistance Under the Electricity Act of 1989
X. Total Ad Valorem Rate
XI. Analysis of Comments
Comment 1: Scope Clarification
Comment 2: International Consortium Provision
Comment 3: Average Useful Life
Comment 4: 1993 Equity Investment
Comment 5: EIB Loans
Comment 6: Regional Development Grants
Comment 7: Centrifuge Development Grant (CDG)
Comment 8: Subordinated Shareholder Loan Provided to Urenco Ltd.
by INFL and UCN
Comment 9: Loan Stock Debt Forgiveness
Comment 10: Regional Investment Premiums (IPR)
Comment 11: Loan Forgiveness
Comment 12: 1981 Equity Conversion
Comment 13: Centrifuge Enrichment Technology Research and
Development Programs
Comment 14: Sales Denominator of the Urenco Group
Comment 15: Investment Allowance Act
Comment 16: City and State Government Development Grants
Comment 17: Centrifuge Enrichment Capacity Subsidies
Comment 18: Enrichment Technology R&D Subsidies
Comment 19: WIR Program
[FR Doc. 01-31511 Filed 12-21-01; 8:45 am]
BILLING CODE 3510-DS-P