[Federal Register Volume 60, Number 208 (Friday, October 27, 1995)]
[Notices]
[Pages 55004-55007]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-26736]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-844-802]
Agreement Suspending the Antidumping Investigation on Uranium
From Uzbekistan
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
ACTION: Notice of Amendment to the Agreement Between the United States
Department of Commerce and the Republic of Uzbekistan Suspending the
Antidumping Investigation on Uranium from Uzbekistan.
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SUMMARY: The Department of Commerce (the Department) and the Republic
of Uzbekistan (Uzbekistan) have signed an
[[Page 55005]]
Amendment (the Amendment) to the Agreement Suspending the Antidumping
Investigation on Uranium from Uzbekistan (the Agreement).
EFFECTIVE DATE: October 13, 1995.
FOR FURTHER INFORMATION CONTACT: James Doyle or Alex Braier, Office of
Agreements Compliance, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street & Constitution
Ave., NW, Washington, DC 20230; telephone: (202) 482-0172 or (202) 482-
1324, respectively.
SUPPLEMENTARY INFORMATION:
Background
On October 16, 1992, the Department and Uzbekistan signed the
Agreement Suspending the Antidumping Investigation on Uranium from
Uzbekistan. On October 30, 1992, the Agreement was published in the
Federal Register (57 FR 49,220, 49,255). On September 30, 1994, the
Department and Uzbekistan initialed an Amendment to modify the Appendix
A price-tied quota contained in the original Agreement. The Amendment
was then released to interested parties for comment. The Department
considered these comments and held further consultations with
Uzbekistan. On July 21, 1995, the Department and Uzbekistan initialed
an amendment similar to the previous amendment except that this
amendment contained clauses which redefined Uzbek-origin uranium to
include uranium mined in Uzbekistan and enriched in a third country.
This amendment was also released to interested parties for comment,
which were again considered by the Department.
Subsequently, the Department and Uzbekistan negotiated an Amendment
based upon a different concept than the two amendments previously
initialed. This Amendment replaces the reference price calculation, and
authorizes,during the first and second years of the Amendment direct or
indirect deliveries of up to 940,000 pounds U3O8 equivalent
per year of Uzbek-origin natural uranium from Uzbekistan to the United
States, provided that the latest price calculated pursuant to Section
IV.C.1 is at or above $12.00 per pound equivalent. Commencing with the
third year (October 13, 1997), this Amendment authorizes Uzbekistan to
make annual deliveries of uranium up to, but not exceeding, the levels
in accordance with the production-tied quota table set forth in
Appendix A. The Amendment retains the provision redefining Uzbek-origin
uranium to include uranium mined in Uzbekistan and enriched in a third
country. On October 13, 1995, the Department and Uzbekistan signed a
final Amendment which took effect immediately. The text of the final
Amendment follows this notice.
Dated: October 20, 1995.
Joseph A. Spetrini,
Deputy Assistant Secretary for Compliance.
Amendment to the Agreement Suspending the Antidumping Investigation on
Uranium From Uzbekistan
The parties recognize that the Agreement Suspending the Antidumping
Investigation on Uranium from Uzbekistan (``the Agreement'') has not
generated the anticipated increase in the price of U.S.-origin natural
uranium that would have permitted renewed sales of Uzbek uranium under
the price-tied quota mechanism; nor has the Agreement increased sales
of U.S.-origin natural uranium or employment in the U.S. uranium
industry. Because an objective of this Agreement is to restore the
competitive position of the U.S. industry, the parties agree as
follows:
The Agreement is hereby extended until October 12, 2004. Consistent
with the requirement of Section 734(1) of the U.S. Tariff Act of 1930,
as amended (the Act), to prevent the suppression or undercutting of
price levels of domestic products by imports of Uzbek-origin uranium,
Sections II, III, IV, VII, VIII and XIV are amended as set forth below.
All other provisions of the Agreement, particularly Section VII, remain
in force and apply to this Amendment.
1. The following definitions are added to Section II:
(e) For purposes of this Agreement, United States shall comprise
the customs territory of the United States of America (the 50 States,
the District of Columbia and Puerto Rico) and foreign trade zones
located in the territory of the United States of America.
(f) For consumption means for further processing (as necessary) and
use as nuclear fuel. Consumption may include such uses as swaps or
exchanges of material, only where such swaps or exchanges are
documented to be conducted solely for the purpose of facilitating the
further processing and use as nuclear fuel by the end-user. The
material shall not be loaned. The material shall not be resold by or on
behalf of the end-user except as a result of force majeure.
(g) End-user means an entity, such as an electric utility,
hospital, or scientific institution, which consumes uranium.
(h) The natural feed component for 1 KgU of enriched uranium
product (``EUP'') shall be determined using the feed to product factor
calculated with the following formulae:
[(PA-TA)/(FA-TA)]=XA
Where:
PA=Actual Product Assay of the imported low enriched uranium
(``LEU'') as found in the import documents
TA=For enrichment contracts, the actual tails assay selected by
the customer pursuant to the contract; for other contracts calling for
the delivery of LEU, 0.3 weight percent U235. During the
anniversary month of this Amendment, the tails assay for other
contracts calling for the delivery of LEU will be amended as
appropriate, based on the optimum tails assay.
FA=0.711 weight percent U235 (feed assay)
XA=Feed-to-Product Factor.
The feed-to-product factor shall then be multiplied by 2.61283 to
reach the lbs. U3O8 equivalent of the imported LEU.
(i) U.S. production level means the level of U.S. production during
the most recent four quarters for which data is available from
appropriate industry sources.
(j) Relevant Period means the twelve month period beginning October
13 through October 12 of the following year.
2. Section III, ``Product Coverage,'' is amended as follows:
The following language replaces the second paragraph, beginning,
``Uranium ore * * *.''
Further, uranium ore from Uzbekistan that is milled into
U3O8 and/or converted into UF6 and/or enriched in
U235 in another country prior to direct and/or indirect
importation into the United States is considered uranium from
Uzbekistan and is subject to the terms of this Agreement. When imported
as enriched uranium, the full amount of the natural uranium equivalent
required to produce the enriched product will be counted against the
existing quota under this Agreement. For the purposes of calculating
this amount of natural uranium, the terms of definition II(h) shall
apply unless otherwise reported.
The third paragraph of Section III, beginning, ``For purposes of
this Agreement, uranium enriched * * *.'' is replaced by:
If applicable, for purposes of this agreement, uranium enriched in
U235 or compounds of uranium enriched in U235 in Uzbekistan
are covered by this agreement, regardless of their subsequent
modification or blending.
[[Page 55006]]
3. Effective October 13, 1995, Sections IV.B and IV.C.2 and 3 are
deleted. Appendix A is replaced with Appendix A hereto, and Sections
IV.A is replaced with the following:
A. The Government of Uzbekistan will restrict the volume of direct
or indirect exports on or after the effective date of this Agreement to
the United States and the transfer or withdrawal from inventory
(consistent with the provisions of paragraph E) of the merchandise
subject to this Agreement in accordance with the delivery limits and
schedule set forth below.
During the first and second Relevant Periods, this Amendment
authorizes direct or indirect deliveries of up to 940,000 pounds
U308 equivalent per relevant period of Uzbek-origin natural
uranium from Uzbekistan to the United States, provided that the latest
price calculated pursuant to Section IV.C.1 is at or above $12.00 per
pound U308 equivalent.
Commencing with the third Relevant Period (October 13, 1997), this
Amendment authorizes Uzbekistan to make annual deliveries of uranium up
to, but not exceeding, the levels in accordance with the production-
tied quota table set forth in Appendix A.
For purposes of counting against the uranium delivery quota
limitations, the date of delivery shall determine when the Uzbek
uranium shall come within the annual limit.
Deliveries pursuant to multiyear contracts shall be strictly
subject to the quota available at the time of delivery, with the
following two exceptions:
(1) For multiyear contracts entered into during the first two
Relevant Periods which do not specify a price per pound U308 equal
to or greater than $12.00, deliveries shall be strictly subject to the
annual quotas in effect at the time of delivery; however, if the annual
quota in effect at the time of such delivery is less than 750,000 lbs.,
up to 750,000 lbs. may be delivered.
(2) Deliveries pursuant to multiyear contracts which provide for
annual deliveries no greater than the quota in effect at the time the
contract is entered into, and which specify a price per pound U308
at or above $12.00 during the first two Relevant Periods, or at or
above the latest DOC price calculation in subsequent Relevant Periods,
may be made in the full amount for the full term of the contract, even
if they exceed the annual quotas in effect at the time of delivery.
Such deliveries will be applied against the annual quotas in effect at
the time of delivery. Where the amount of such deliveries exceeds the
annual quota in effect at the time of delivery, such quota overage will
be deducted from the annual quota available in the subsequent relevant
period(s). No additional quota will become available unless and until
any quota deficit created by such delivery overage(s) is eliminated.
The total annual delivery volume specified in multiyear contracts
entered into under paragraphs 1 and 2 of this subsection may not exceed
940,000 lbs. per year for each of the first two Relevant Periods.
For purposes of determining the applicable quota level under
Appendix A, the Department will supply the U.S. production level, as
defined in Section II(j), to the parties to the proceeding thirty days
before the beginning of every Relevant Period.
B.1 Department Confirmation of Quota Imports. In recognition of
the requirements of section 734 (d)(2) and (l)(1), the Department and
the Government of Uzbekistan agree that any sales contract with an end-
user to be used in a sale under this Agreement must be submitted to the
Office of Agreements Compliance, U.S. Department of Commerce, and
confirmed by the Department in accordance with this Section. The party
submitting a contract to the Department for confirmation shall provide
the following information, which shall be releasable under APO at the
time the Department approves such contract:
The date and terms, including price, of the contract with
the end-user pursuant to which the sale(s) will be made;
A description of the physical material being imported;
Identification of the Uzbek supplier of the sale(s);
The estimated place and date on which the imports to fill
the sale(s) will enter the customs territory of the United States;
The export license number under which the sale(s) will be
exported;
A copy of the contract with the end-user pursuant to which
the sale(s) are to be made;
An estimated delivery schedule;
Certification from the end-user that it will consume the
imported product in the United States in accordance with Section II(f)
of this Amendment;
Certification that the Department will be provided with
proof of payment for each shipment received; and any other information
that the Department, after consultation with the Government of
Uzbekistan, determines necessary to confirm that the requirements of
this Amendment have been met.
As soon as possible, but within 15 days of a complete confirmation
request being filed with the Office of Agreements Compliance, the
Department will confirm that the sales contract qualifies as a sale
under this Amendment or will state specifically why it does not
qualify. In making such a determination, the Department will limit its
review to determining (i) whether the contract under review comes
within the amount of quota remaining for the Relevant Period in which
the contract was signed, and (ii) whether the sales price for the
contract is at or above $12.00 during the first two Relevant Periods,
or at or above the latest DOC price calculation in subsequent Relevant
Periods, on the date that the contract was signed. If the Department
fails to respond to a confirmation request within 15 days, the request
shall be deemed to be approved notwithstanding any other provisions of
the Agreement.
Upon confirmation, the Department will subtract the amount to be
delivered of contracted Uzbek-origin uranium from the quota remaining
for each Relevant Period. The Office of Agreements Compliance shall
make available under APO the amount of annual quota that remains
available for each Relevant Period.
Uzbek uranium may be imported into the United States only pursuant
to a confirmed sales contract. Further, if such Uzbek uranium is not
immediately delivered into the end-user's account, the following
conditions must be met:
(1) the material shall be placed in a dedicated account for
approved contracts;
(2) the importer (if the owner of material, or the person for whom
or on whose behalf the material is imported) or his consignee, shall
certify to the Department that such material will not be sold, loaned,
swapped, or utilized other than for delivery to the U.S. end-user for
consumption in accordance with Section II(f) of this Amendment;
(3) the material enters the U.S. but shall not be liquidated until
such time as it is delivered to the end-user; and
(4) the importer shall commit in writing to make available to the
Department, quarterly, a full accounting of all deliveries from its
account at the converter/fabricator (including each delivery from the
account, to whom delivery was made, pursuant to which contract, in what
quantity, and confirmation of the status of any transaction that
occurred from the account).
Prior to U.S. Customs clearance of the Uzbek-origin uranium, the
importer (if the owner of material, or the person for whom or on whose
behalf the uranium is imported) will notify the Department of the date
of import, the quantity and
[[Page 55007]]
declared value of the shipment, the vessel name, the port of entry, and
the pre-confirmed individual contract pursuant to which the shipment is
entering. If such information is consistent with a pre-confirmed
contract and the notice of request for delivery from the end-user, the
Department will notify the U.S. Customs Service within five business
days. The importer will provide certification to U.S. Customs at time
of import that the material will be used only for a sale subject to the
conditions of this Agreement and will be consumed in accordance with
Section II(f) of this Agreement. The Department will instruct Customs
to promptly release the shipment once the Department has confirmed that
Customs has received the foregoing notification and certification.
4. The following language replaces Paragraph D of Section VII,
``Anticircumvention,'':
D. In addition to the above requirements, the Department shall
direct the U.S. Customs Service to require all importers of uranium
into the United States, regardless of stated country of origin, to
submit at the time of entry written statements certifying the
following:
(A) The country(ies) in which the ore was mined and, if applicable,
converted, enriched, and/or fabricated, for all imports; and
(B) That the uranium being imported was not obtained under any
arrangement, swap, or other exchange designed to circumvent the export
limits for uranium of Uzbek origin established by this agreement.
Where there is reason to believe that such a certification has been
made falsely, the Department will refer the matter to Customs or the
Department of Justice for further action.
5. The following paragraph constitutes an addendum to Section VIII
of the Agreement:
Uzbekistan agrees to adhere to all reporting requirements specified
in Section VIII.A. of the Agreement. Appendix B data will be submitted
to the Department according to the reporting requirements specified in
Section VIII.A. of the Agreement, and will be treated and subject to
verification by the Department in accordance with the terms of the
agreement.
6. Section XIV of the Agreement is amended by adding the following:
C. The parties agree to consult on a regular basis during the term
of this Agreement on Uzbekistan being treated as a market economy, or
the Uzbek uranium industry being treated as a market-oriented industry,
under U.S. antidumping laws. During such consultations the Department
will identify the criteria that Uzbekistan or the Uzbek uranium
industry would need to satisfy to be accorded such treatment by the
Department.
The parties further agree that their intention is, consistent with
Section IV.J of the Agreement, that Uzbekistan be accorded treatment no
less favorable than any other Republic of the former Soviet Union that
also has a suspension agreement with the United States with respect to
trade in uranium. Accordingly, if U.S. law, regulation, administrative
practice, or policy should change in any manner that would result in
relatively less favorable treatment for Uzbekistan, or if the United
States should enter into any agreement or understanding or take any
action that would cause that result, the parties will promptly enter
into consultations with a view to amending this Agreement so as to
eliminate such less favorable treatment.
7. The parties agree that this Amendment constitutes an integral
part of the Agreement.
8. The English language version of this Amendment shall be
controlling.
9. This Amendment is effective as of October 13, 1995.
Signed on this 13th day of October, 1995.
For the Government of Uzbekistan.
Nikolay I. Kuchersky.
For the United States Department of Commerce.
Paul L. Joffe,
Deputy Assistant Secretary for Import Administration.
Uzbekistan Appendix A
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U.S. production levels (annual lbs. U3O8
e) Quota (annual lbs. U3O8 e)
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3,000,001-3,500,000...................... 600,000
3,500,001-4,000,000...................... 750,000
4,000,001-4,500,000...................... 775,000
4,500,001-5,000,000...................... 800,000
5,000,001-5,500,000...................... 825,000
5,500,001-6,000,000...................... 850,000
6,000,001-6,500,000...................... 875,000
6,500,001-7,000,000...................... 900,000
7,000,001-7,500,000...................... 925,000
7,500,001-8,000,000...................... 950,000
8,000,001-8,500,000...................... 975,000
8,500,001-9,000,000...................... 1,000,000
9,000,001+............................... Unlimited
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[FR Doc. 95-26736 Filed 10-26-95; 8:45 am]
BILLING CODE 3510-DS-P
