[Federal Register Volume 61, Number 54 (Tuesday, March 19, 1996)]
[Notices]
[Pages 11185-11186]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-6471]
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DEPARTMENT OF COMMERCE
[(A-821-802, A-834-802, A-844-802)]
Suspension Agreements on Uranium From the Russian Federation,
Kazakstan, and Uzbekistan
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
ACTION: Request for public comments.
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SUMMARY: In order to provide all parties an opportunity to comment on
the Department of Commerce's proposed solution to an issue regarding
natural uranium from the Russian Federation, Kazakstan, and Uzbekistan
which is enriched in a third country prior to importation into the
United States, the Department of Commerce requests that parties wishing
to provide comments do so no later than 20 days after the date of
publication of this notice.
EFFECTIVE DATE: March 19, 1996.
FOR FURTHER INFORMATION CONTACT: James Doyle or Alexander Braier,
Office of Agreements Compliance, Import Administration, International
Trade Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, N.W., Washington, DC 20230, telephone: (202) 482-
0172 or (202) 482-1324, respectively.
BACKGROUND: On March 27, 1995, the Department of Commerce (the
Department) and the Republic of Kazakstan signed an amendment to the
Kazakstani uranium suspension agreement. In part, this amendment
provided that the quantitative restraints on Kazakstani-origin uranium
include all uranium ore from Kazakstan 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. 60 FR 25692,25693 (May 12, 1995).
In light of the fact that similar amendments were being considered for
Uzbekistan and the Russian Federation, on September 22, 1995, the
Department solicited contract-specific information from U.S. utilities
that hold contracts for Kazakstani, Uzbek, or Russian uranium in order
to assess the effect such an amendment has on importations pursuant to
such contract. 60 FR 49259 (September 22, 1995). The Department
received five responses to its Federal Register notice.
On October 13, 1995, the Department and the Government of
Uzbekistan signed an amendment which, among other provisions, treats
Uzbek-origin uranium in the same manner as the Kazakstani amendment.
From January 22 to 26, 1996, and from February 19 to 23, 1996, the
Department and the Ministry of Atomic Energy of the Russian Federation
(MINATOM) held the fourth and fifth rounds of consultations regarding,
among other issues, the enrichment of Russian-origin uranium in third
countries.
OPPORTUNITY TO SUBMIT COMMENTS: Based on the factual information
submitted to the Department and on views conveyed to the Department
during numerous and frequent contacts with affected parties, the
Department has prepared a proposed solution regarding the third country
enrichment issue. The specific elements of the proposal are included in
the attached Annex.
Prior to reaching a final decision on this issue, the Department is
providing an opportunity for full participation on the record to all
parties wishing to comment. Accordingly, not later than 20 days from
the date of publication of this notice, parties may submit comments
with respect to the third country enrichment issue. Seven copies of the
comments should be submitted to the Deputy Assistant Secretary for
Compliance, Import Administration, International Trade Administration,
Room B-099, U.S. Department of Commerce, Washington, DC 20230. All
comments provided to the Department in response to this notice will be
subject to release under Administrative Protective Order in accordance
with 19 CFR 353.34. Therefore, all comments must properly identify
information the submitter would like treated as business proprietary,
and be accompanied by a properly bracketted public version. The
Department will meet with affected or interested parties upon request
to fully explain the calculations and procedures contained in the Annex
to this notice.
Dated: March 12, 1996.
Joseph A. Spetrini,
Deputy Assistant Secretary for Compliance.
Annex--Third Country Enrichment of Subject Uranium Proposal
The Department of Commerce's proposed decision regarding the issue
of third country enrichment of subject uranium permits the entry of
portions of the volume specified in certain contracts. The contracts
must have been signed by March 27, 1995, which was the effective date
of the first amendment to a uranium suspension agreement which
addressed this issue. After accounting for any previously entered
volumes, the proposal divides the remaining subject material into two
portions: (1) 75% of the volume will be permitted entry without
additional conditions; and (2) the remaining 25% will be permitted
entry only if matched with an equal amount of newly
[[Page 11186]]
produced U.S. uranium. The proposal also establishes certain procedures
necessary for its efficient administration within the auspices of the
suspension agreements and the Tariff Act of 1930, as amended.
Eligible Contracts and Permitted Volumes
An eligible contract is defined as a natural uranium
supply contract signed before March 27, 1995, that was identified in
response to the Department's September 22, 1995, Federal Register
notice. No other natural uranium contracts, regardless of origin, shall
be eligible for inclusion within the terms of the third country
enrichment proposal;
The permitted volume for each contract is the nominal
volume contained in each eligible contract.1 If there is no
specific nominal volume identified in the contract, the permitted
volume shall be the midpoint between the highest and lowest volumes
stipulated in the contract. For any contract containing an option for
an additional volume which was exercised prior to March 27, 1995, the
permitted volume shall be the nominal/midpoint volume of the eligible
contract plus the volume of the exercised option. Similarly, for any
contract which was amended prior to March 27, 1995 to provide for an
additional volume, the permitted volume shall be the nominal/midpoint
volume plus the volume specified in such amendment. For any contract
containing an option for an additional volume which was exercised prior
to March 27, 1995, and which was amended prior to March 27, 1995 to
provide for an additional volume, the permitted volume shall be the sum
of the nominal/midpoint volume, the optional volume, and the volume
specified in the amendment.
\1\ Most natural uranium supply contracts specify a nominal
volume around which buyers and sellers expectations converge.
Typically these contracts also bracket the target volume with
minimum and/or maximum volumes.
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For each eligible contract, 75 percent of the permitted
volume will be allowed entry with no conditions other than the ordinary
entry requirements for non-subject uranium;
For each eligible contract, the remaining 25 percent of
the permitted volume will be allowed entry only if such importation is
pursuant to a matching sale confirmed by the Department by June 30,
1996, for an equal amount of newly produced U.S. uranium;
If uranium has been imported into the United States prior
to the effective date of this notice and pursuant to an eligible
contract, then an equal portion of uranium may be imported, but only if
the importation is pursuant to a matching sale confirmed by the
Department by June 30, 1996, for an equal amount of U.S.-produced
uranium. Furthermore, both the volume of uranium already imported and
the volume that may be imported only if matched will be deducted from
the permitted volume before the 75/25 split is applied;
Administrative Procedures
All eligible contracts must be submitted to the Department
and are releasable in their entirety only to those interested parties
which specifically request access under administrative protective
order;
All holders of eligible contracts must agree to permit
Department verification of information regarding shipment of the
permitted volumes, including, but not limited to, analyses of the tails
assays and enrichment percentages to derive feed-to-product ratios;
In order to facilitate Customs clearance of shipments of
permitted volumes, holders of eligible contracts shall provide the
Department with appropriate shipping information at least 10 days in
advance of the date the shipment is due to reach the United States.
Upon receipt of complete and accurate shipping information, the
Department will provide Customs with clearance within five days.
Certifications or licenses from the appropriate suspension agreement
countries shall not be required;
The Department will administer each eligible contract on a
contract-by-contract basis.
The Department will administer any such matching sales
consistent with the Department's existing practice, as specified in
Section IV of the Amendment to the Agreement Suspending the Antidumping
Investigation on Uranium from the Russian Federation, and appropriate
Statements of Administrative Intent, and any subsequent amendments
incorporating such practice.
[FR Doc. 96-6471 Filed 3-18-96; 8:45 am]
BILLING CODE 3510-DS-P
