Agreement Suspending the Antidumping Investigation on Uranium From Kazakhstan

Federal RegisterMay 12, 1995

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DEPARTMENT OF COMMERCE

[A-834-802]

Agreement Suspending the Antidumping Investigation on Uranium

From Kazakhstan

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 Kazakhstan Suspending the

Antidumping Investigation on Uranium from Kazakhstan.

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SUMMARY: The Department of Commerce (the Department) and the Republic

of Kazakhstan (Kazakhstan) have signed an Amendment (the Amendment) to

the Agreement Suspending the Antidumping Investigation on Uranium from

Kazakhstan (the Agreement).

EFFECTIVE DATE: March 27, 1995.

FOR FURTHER INFORMATION CONTACT: Beth Chalecki or Maureen Price, Office

of Agreements Compliance, Import Administration, International Trade

Administration, U.S. Department of Commerce, 14th Street and

Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-

2312 or (202) 482-0159, respectively.

SUPPLEMENTARY INFORMATION:

Background

On October 16, 1992, the Department and Kazakhstan signed the

Agreement and, on October 30, 1992, the Agreement was published in the

Federal Register (57 FR 49220, 49222). On November 9, 1994, the

Department and Kazakhstan 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

carefully considered these comments and held further consultations with

Kazakhstan.

Subsequently, the Department and Kazakhstan negotiated an Amendment

based upon a different concept than the one previously initialed. This

Amendment modifies the original price-tied quota mechanism by lowering

the threshold price from $13 to $12, and redefines Kazakhstani-origin

uranium to include uranium mined in Kazakhstan and enriched in a third

country. On March 24, 1995, the Department and Kazakhstan signed a

final Amendment, which was to take effect when the final signature was

added on March 27, 1995. The text of the final Amendment follows this

notice.

Dated: April 25, 1995.

Joseph A. Spetrini,

Deputy Assistant Secretary for Compliance.

Amendment to the Agreement Suspending the Antidumping Investigation on

Uranium From Kazakhstan, as Amended

Pursuant to Section X.B. of the Agreement Suspending the

Antidumping Investigation on Uranium from Kazakhstan, as amended on

February 7, 1995 (``Amended Agreement''), the parties have consulted to

ensure that exports of Kazakhstani ore enriched in U235 in another

country prior to direct or indirect importation into the United States

do not undermine the Amended Agreement. As a result of these

consultations, and to ensure that such exports do not undermine the

Amended Agreement, the parties agree as follows:

1. The following definitions are added to Section II:

(e) ``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 [[Page 25693]] material shall not be

resold by or on behalf of the end-user except as a result of force

majeure.

(f) ``End-user'' means an entity, such as an electric utility,

hospital, or scientific institution, which consumes uranium.

(g) 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. U308 equivalent of the imported LEU.

2. Section III, ``Product Coverage,'' is amended as follows:

The following language replaces the second paragraph, beginning,

``Uranium ore * * *''

Further, uranium ore from Kazakhstan that is milled into U308 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 Kazakhstan and is subject to the terms of this

Agreement. When imported as enriched uranium (excluding highly 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 (g) 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 Kazakhstan are covered

by this agreement, regardless of their subsequent modification or

blending.

Thus, Section III, as amended, provides as follows:

The merchandise covered by this Agreement are the following

products from Kazakhstan:

Natural uranium in the form of uranium ores and concentrates;

natural uranium metal and natural uranium compounds; alloys,

dispersions (including cermets), ceramic products, and mixtures

containing natural uranium or natural uranium compounds; uranium

enriched U235 and its compounds; alloys, dispersions (including

cermets), ceramic products, and mixtures containing uranium enriched in

U235 or compounds of uranium enriched in U235, and any other forms of

uranium within the same class or kind.