Suspension Agreements on Uranium From the Russian Federation, Kazakstan, and Uzbekistan

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

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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