Agreement Suspending the Antidumping Investigation on Uranium From Uzbekistan

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.

-----------------------------------------------------------------------

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

------------------------------------------------------------------------

U.S. production levels (annual lbs. U3O8

e) Quota (annual lbs. U3O8 e)

------------------------------------------------------------------------

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

------------------------------------------------------------------------

[FR Doc. 95-26736 Filed 10-26-95; 8:45 am]

BILLING CODE 3510-DS-P