Termination of Suspension Agreement, Resumption of Antidumping Investigation, and Termination of Administrative Review on Uranium From Kazakhstan

DEPARTMENT OF COMMERCE

International Trade Administration

[A-834-802]

Termination of Suspension Agreement, Resumption of Antidumping

Investigation, and Termination of Administrative Review on Uranium From

Kazakhstan

AGENCY: Import Administration, International Trade Administration, U.S.

Department of Commerce.

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SUMMARY: The Government of Kazakhstan has provided notice of its intent

to terminate the agreement between the United States Department of

Commerce (``Department'') and the Republic of Kazakhstan suspending the

antidumping investigation on uranium from Kazakhstan. Therefore, the

Department is resuming the underlying antidumping investigation.

EFFECTIVE DATE: January 11, 1999.

FOR FURTHER INFORMATION CONTACT: James C. Doyle, Karla Whalen, or

Juanita H. Chen, Enforcement Group III, Import Administration,

International Trade Administration, U.S. Department of Commerce, 14th

Street & Constitution Avenue, N.W., Washington, DC 20230; telephone:

202-482-3793.

Applicable Statute: Unless otherwise indicated, all citations to

the Tariff Act of 1930, as amended (``the Act''), are references to the

provisions effective in 1992. In addition, unless otherwise indicated,

all citations to the Department's regulations are to the regulations at

19 CFR part 353 (1992).

SUPPLEMENTARY INFORMATION:

Background

On December 5, 1991, the Department initiated an antidumping

investigation concerning uranium from the Union of Soviet Socialist

Republics (``Soviet

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Union''). Initiation of Antidumping Duty Investigation: Uranium from

the Union of Soviet Socialist Republics, 56 FR 63711 (December 5,

1991). On December 25, 1991, the Soviet Union dissolved and the United

States subsequently recognized the twelve newly independent states

(``NIS'') which emerged, one of which was the Republic of Kazakhstan

(``Kazakhstan''). On January 16, 1992, the Department presented an

antidumping duty questionnaire to the Embassy of the Russian

Federation, the only newly independent state which had a diplomatic

facility in the United States at that time, for service on Kazakhstan.

On January 30, 1992, the Department sent questionnaires to the United

States Embassy in Moscow, which served copies of the questionnaire on

the permanent representative to the Russian Federation of each NIS. The

questionnaires were served on February 10 and 11, 1992. On March 25,

1992, the Department gave notice that it intended to continue its

antidumping duty investigation with respect to the newly independent

states of the former Soviet Union. Postponement of Preliminary

Antidumping Duty Determination: Uranium from the Former Union of Soviet

Socialist Republics (USSR), 57 FR 11064 (April 1, 1992).

On June 3, 1992, the Department issued its preliminary

determination, in its antidumping duty investigation on uranium from

Kazakhstan (``Investigation''), that imports of uranium from Kazakhstan

were being, or were likely to be, sold in the United States at less

than fair value, as provided for in the Act. Preliminary Determinations

of Sales at Less Than Fair Value: Uranium from Kazakhstan, Kyrgyzstan,

Russia, Tajikistan, Ukraine and Uzbekistan; and Preliminary

Determinations of Sales at Not Less Than Fair Value: Uranium from

Armenia, Azerbaijan, Byelarus, Georgia, Moldova and Turkmenistan, 57 FR

23380 (June 3, 1992). On October 16, 1992, the Department amended the

preliminary determination to include highly enriched uranium (``HEU'')

in the scope of the investigations. Antidumping; Uranium from

Kazakhstan, Kyrgyzstan, Russia, Tajikistan, Ukraine, and Uzbekistan;

Suspension of Investigations and Amendment of Preliminary

Determinations, 57 FR 49221 (October 30, 1992), Also on October 16,

1992, the Department suspended the antidumping duty investigation

involving uranium from Kazakhstan. Agreement Suspending the Antidumping

Investigation on Uranium from Kazakhstan, 57 FR 49222 (October 30,

1992) (``Suspension Agreement''). The basis for the Suspension

Agreement was an agreement by Kazakhstan to restrict exports of uranium

to the United States. On February 7, 1995, the Department and

Kazakhstan signed an amendment to the Suspension Agreement to permit

entry of highly enriched uranium (``HEU'') within the terms of the

Suspension Agreement. Agreement Suspending the Antidumping

Investigation on Uranium from Kazakhstan, 60 FR 13699 (March 14, 1995).

On March 27, 1995, the Department and Kazakhstan signed an amendment to

the Suspension Agreement to modify the original price-tied quota

mechanism by lowering the threshold price from $13.00 to $12.00, and

re-defined Kazakhstan-origin uranium to include uranium mined in

Kazakhstan and enriched in a third country. Agreement Suspending the

Antidumping Investigation on Uranium from Kazakhstan, 60 FR 25692 (May

12, 1995). On September 29, 1998, the Department and Kazakhstan signed

an amendment to the Suspension Agreement permitting entry of certain

shipments of uranium from Kazakhstan into the United States pursuant to

ongoing consultations. Agreement Suspending the Antidumping

Investigation on Uranium from Kazakhstan, 63 FR 67858 (December 9,

1998).

On October 21, 1998, USEC Inc. and its subsidiary, United States

Enrichment Corporation (hereinafter collectively referred to as

``USEC''), requested that the Department conduct a hearing related to

the issues raised in the administration of the Suspension Agreement for

the period October 1, 1997 to September 29, 1998. On October 27, 1998

and October 29, 1998, the Ad Hoc Committee of Domestic Uranium

Producers, and the Oil Chemical and Atomic Workers International Union,

AFL-CIO (hereinafter collectively referred to as ``Petitioners''),

joined in USEC's request for a hearing. On October 30, 1998, Kazakhstan

expressed its interest in participating in the hearing. On October 30,

1998, the Ad Hoc Committee of Domestic Uranium Producers requested an

administrative review of the Suspension Agreement for the period

October 1, 1997 to September 30, 1998, pursuant to the Department's

notice of opportunity to request an administrative review. Antidumping

or Countervailing Duty Order, Finding, or Suspended Investigation;

Opportunity to Request Administrative Review, 63 FR 54440 (October 9,

1998).

On November 10, 1998, the Department received notice from

Kazakhstan of its intent to terminate the Suspension Agreement. Section

XII of the Suspension Agreement provides that Kazakhstan may terminate

the Suspension Agreement at any time upon notice to the Department;

termination would be effective 60 days after such notice. On December

23, 1998, the Department initiated an administrative review of the

Suspension Agreement for the period October 1, 1997 to September 30,

1998. Initiation of Antidumping and Countervailing Duty Administrative

Reviews, 63 FR 71091 (December 23, 1998). As the 60 day period provided

for in the Suspension Agreement has passed, the Department is

terminating the Suspension Agreement and resuming the original

Investigation effective January 11, 1999. Moreover, as a result of

resumption of the Investigation, the Department is also terminating the

administrative review of the Suspension Agreement.

Scope of the Investigation

The merchandise covered constitutes one class or kind of

merchandise. HEU is included in the scope of the investigation. The

merchandise covered includes 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 in U\235\ and its compounds; alloys, dispersions

(including cermets), ceramic products, and mixtures containing uranium

enriched in U\235\ or compounds or uranium enriched in U\235\. The

uranium subject to these investigations is provided for under

subheadings 2612.10.00.00, 2844.10.10.00, 2844.10.20.10, 2844.10.20.25,

2844.10.20.55, 2844.10.50.00, 2844.20.00.10, 2844.20.00.20,

2844.20.00.30, and 2844.20.00.50, of the Harmonized Tariff Schedule

(``HTS''). Although the HTS subheadings are provided for convenience

and customs purposes, our written description of the scope of this

proceeding is dispositive.

Period of Investigation

The period of investigation (``POI'') is June 1 through November

30, 1991.

Resumption of Investigation

Because Kazakhstan terminated the Suspension Agreement, there no

longer exists a Suspension Agreement under section 734(l) of the Act

which ``prevent(s) the suppression or undercutting of price levels of

domestic products by imports of the merchandise under investigation.''

Therefore, in

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accordance with section 734(l)(2) of the Act, the Department must

resort to section 734(i)(1)(B), which directs us to resume the

Investigation as if our preliminary determination had been issued on

January 11, 1999. In accordance with section 735(a) of the Act, the

Department will issue a final determination within 75 days of January

11, 1999, unless Kazakhstan requests an extension of time under 19 CFR

353.20(b).

Since Kazakhstan may not have had a full opportunity to respond to

the original antidumping duty questionnaire, in making its final

determination in the Investigation, the Department shall issue a

supplemental questionnaire for the original POI.

International Trade Commission

In accordance with section 733(f) of the Act, the Department has

notified the International Trade Commission (``ITC'') of the

termination of the Suspension Agreement and resumption of the

Investigation. If the Department's final determination is affirmative,

the ITC will determine whether these imports are materially injuring,

or threatening material injury to, the United States uranium industry.

The ITC shall make this determination before the latter of: (1) 120

days after the effective date of this notice; or, (2) 45 days after

publication of the Department's final determination.

Termination of Administrative Review

On October 30, 1998, the Ad Hoc Committee of Domestic Uranium

Producers, one of the Petitioners, requested that the Department

conduct an administrative review of the Suspension Agreement for the

period October 1, 1997 to September 30, 1998. On December 23, 1998, the

Department initiated an administrative review of the Suspension

Agreement for the requested period. Initiation of Antidumping and

Countervailing Duty Administrative Reviews, 63 FR 71091 (December 23,

1998). Because the underlying Suspension Agreement is terminated, the

administrative review is being terminated as well.

Denial of Request for Hearing

On October 21, 1998, USEC, an interested party to the proceeding,

requested that the Department conduct a hearing related to the issues

raised in the administration of the Suspension Agreement for the period

October 1, 1997 to September 29, 1998. USEC was joined in its request

by Petitioners. Kazakhstan also expressed its interest in participating

if a hearing was held on said issues. Because the underlying Suspension

Agreement is terminated, the Department will not hold the requested

hearing.

Verification

As provided for in section 776(b) of the Act, the Department will

verify all the non-BIA (best information available) material used in

reaching its final determination.

Suspension of Liquidation

In accordance with Sec. 734(i)(1)(A) of the Act, the Department is

not aware of any sale within the last 90 days that was in violation of

the Suspension Agreement or did not meet the requirements of the

Suspension Agreement. Therefore, the Department is instructing the

United States Customs Service (``U.S. Customs'') to suspend liquidation

of all unliquidated entries of uranium, as defined in the Scope of the

Investigation section of this notice, that are entered or withdrawn

from warehouse for consumption on or after the effective date of the

termination of the Suspension Agreement, which is January 11, 1999.

U.S. Customs shall require a cash deposit or bond equal to 115.82

percent ad valorem (the original preliminary determination duty rate),

the estimated weighted-average amount by which the foreign market value

of the subject merchandise exceeds the United States price, for all

manufacturers, producers, and exporters of uranium from Kazakhstan.

These suspension of liquidation instructions will remain in effect

until further notice.

APO Access

Any party wishing to access business proprietary information in the

resumed Investigation must apply for APO access, regardless of whether

such APO access was previously granted in the original Investigation or

Suspension Agreement.

Public Comment

In accordance with 19 CFR 353.38, the Department will hold a public

hearing, if requested, to afford interested parties an opportunity to

comment on the preliminary determination on March 12, 1999, at 10 a.m.

at the United States Department of Commerce, 14th Street and

Constitution Avenue, N.W., Washington, DC 20230. Individuals who wish

to request a hearing must submit such a request within ten days of the

publication of this notice in the Federal Register to the Assistant

Secretary for Import Administration, United States Department of

Commerce, Room 1870, 14th Street and Constitution Avenue, NW,

Washington, DC 20230. Parties should confirm by telephone the time,

date, and place of the hearing 48 hours before the scheduled time.

Requests should contain: (1) The party's name, address and

telephone number; (2) the number of participants; (3) the reason for

attending; and (4) a list of the issues to be discussed. In addition,

ten copies of the business proprietary version and five copies of the

nonproprietary version of the case briefs must be submitted to the

Assistant Secretary no later than March 1, 1999. Ten copies of the

business proprietary version and five copies of the nonproprietary

version of the rebuttal briefs must be submitted to the Assistant

Secretary no later than March 8, 1999. An interested party may make an

affirmative presentation only on arguments raised in that party's case

or rebuttal briefs. Written arguments should be submitted in accordance

with Sec. 353.38 of the Department's regulations and will be considered

if received within the time limits specified above.

This determination is issued and published in accordance with

section 733(f) of the Act (19 U.S.C. 1673b(f)) and 19 CFR 353.15.

Dated: January 11, 1999.

Robert S. LaRussa,

Assistant Secretary Import Administration.

[FR Doc. 99-1117 Filed 1-15-99; 8:45 am]

BILLING CODE 3510-DS-P