[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