Low Enriched Uranium From France: Preliminary Results of Antidumping Duty Administrative Review, 10957-10962 [E5-920]
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Federal Register / Vol. 70, No. 43 / Monday, March 7, 2005 / Notices
The record evidence supports a
finding that in both markets and in all
channels of distribution, Echjay and
Viraj perform essentially the same level
of services. These include order
processing, packing, shipping and
invoicing of sales, and processing of
payments. Based on our analysis of the
selling functions performed on EP and
CEP sales in the United States, and sales
in the home market, we determine that
the EP and CEP and the starting price of
home market sales represent the same
stage in the marketing process, and are
thus at the same LOT. Accordingly, we
preliminarily find that no level of trade
adjustment or CEP offset is appropriate
for either Echjay or Viraj.
Currency Conversions
We made currency conversions into
U.S. dollars in accordance with section
773(a) of the Tariff Act, based on the
exchange rates in effect on the dates of
the U.S. sales, as certified by the Federal
Reserve Bank.
Preliminary Results of Review
As a result of our review we
preliminarily find the following
weighted–average dumping margins
exist for the period February 1, 2003,
through January 31, 2004:
will issue final results of this
administrative review, including the
results of our analysis of the issues
raised in any such written comments or
at a hearing, within 120 days of
publication of these preliminary results.
Assessment Rates
Upon issuance of the final results of
this review, the Department shall
determine, and the U.S. Customs and
Border Protection (Customs) shall
assess, antidumping duties on all
appropriate entries. In accordance with
19 CFR 351.212(b)(1), we have
calculated importer–specific assessment
rates based on the total amount of
antidumping duties calculated for the
examined sales made during the POR
divided by the total entered value, or
quantity (in kilograms), as appropriate,
of the examined sales. Upon completion
of this review, where the assessment
rate is above de minimis, we shall
instruct Customs to assess duties on all
entries of subject merchandise by that
importer.
Cash Deposit Requirements
The following deposit requirements
will be effective upon completion of the
final results of this administrative
review for all shipments of flanges from
India entered, or withdrawn from
Margin
warehouse, for consumption on or after
Manufacturer/Exporter
(percent)
the publication date of the final results
of this administrative review, as
Echjay Forgings, Ltd. ................
0.03
Viraj Forgings, Ltd. ...................
0.01 provided by section 751(a)(1) of the
Tariff Act: (1) the cash deposit rates for
the reviewed companies will be the
The Department will disclose
calculations performed within five days rates established in the final results of
administrative review; if the rate for a
of the date of publication of this notice
particular company is zero or de
in accordance with 19 CFR 351.224(b).
minimis, i.e., less than 0.5 percent, no
An interested party may request a
cash deposit will be required for that
hearing within 30 days of publication.
company; (2) for manufacturers or
See CFR 351.310(c). Any hearing, if
requested, will be held 37 days after the exporters not covered in this review, but
date of publication, or the first business covered in the original less–than-fair–
value (LTFV) investigation or a previous
day thereafter, unless the Department
review, the cash deposit will continue
alters the date per 19 CFR 351.310(d).
to be the most recent rate published in
Interested parties may submit case
briefs or written comments no later than the final determination or final results
for which the manufacturer or exporter
30 days after the date of publication of
received a company–specific rate; (3) if
these preliminary results of review.
the exporter is not a firm covered in this
Rebuttal briefs and rebuttals to written
review, a prior review or the original
comments, limited to issues raised in
investigation, but the manufacturer is,
the case briefs and comments, may be
filed no later than 35 days after the date the cash deposit rate will be that
of publication of this notice. Parties who established for the most recent period
for that manufacturer of the
submit argument in these proceedings
merchandise; and (4) if neither the
are requested to submit with the
argument 1) a statement of the issue, 2)
exporter nor the manufacturer is a firm
a brief summary of the argument, and
covered in this or any previous reviews,
(3) a table of authorities. Further, we
the cash deposit rate will be 162.14
would appreciate it if parties submitting percent, the ‘‘all others’’ rate established
written comments would provide the
in the LTFV investigation (59 FR 5994,
Department with an additional copy of
February 9, 1994). These deposit
the public version of any such
requirements, when imposed, shall
comments on diskette. The Department
remain in effect until publication of the
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10957
final results of the next administrative
review.
Notification to Interested Parties
This notice also serves as a
preliminary reminder to importers of
their responsibility under 19 CFR
351.402(f) to file a certificate regarding
the reimbursement of antidumping
duties prior to liquidation of the
relevant entries during this review
period. Failure to comply with this
requirement could result in the
Secretary’s presumption that
reimbursement of antidumping duties
occurred and the subsequent assessment
of double antidumping duties.
We are issuing and publishing this
notice in accordance with sections
751(a)(1) and 777(i)(1) of the Tariff Act.
Dated: February 28, 2005.
Joseph A. Spetrini,
Acting Assistant Secretary for Import
Administration.
[FR Doc. E5–919 Filed 3–6–05; 8:45 am]
BILLING CODE 3510–DS–S
DEPARTMENT OF COMMERCE
International Trade Administration
[A–427–818]
Low Enriched Uranium From France:
Preliminary Results of Antidumping
Duty Administrative Review
Import Administration,
International Trade Administration,
U.S. Department of Commerce.
SUMMARY: The Department of Commerce
(the Department) is conducting an
administrative review of the
antidumping duty order on Low
Enriched Uranium (LEU) from France in
response to requests by USEC Inc. and
the United States Enrichment
Corporation (collectively, petitioners)
and by Eurodif, S.A.(Eurodif),
´ ´
`
Compagnie Generale Des Matieres
´
Nucleaires (COGEMA) and COGEMA,
Inc. (collectively, Eurodif/COGEMA or
the respondent). This review covers
sales of subject merchandise to the
United States during the period of
February 1, 2003, through January 31,
2004.
We have preliminarily determined
that U.S. sales have been made below
normal value (NV). If these preliminary
results are adopted in our final results,
we will instruct U.S. Customs and
Border Protection (CBP) to assess
antidumping duties based on the
difference between the constructed
export price (CEP) and the NV.
Interested parties are invited to
comment on these preliminary results.
AGENCY:
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See the Preliminary Results of Review
section of this notice.
EFFECTIVE DATE: March 7, 2005.
FOR FURTHER INFORMATION CONTACT:
Myrna Lobo or Elfi Blum-Page, AD/CVD
Operations, Office 6, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW., Washington, DC 20230;
telephone: (202) 482–2371 or (202) 482–
0197, respectively.
Background
On February 13, 2002, the Department
published the antidumping duty order
on LEU from France in the Federal
Register (67 FR 6680). On February 3,
2004, the Department published a notice
of opportunity to request an
administrative review of this order (69
FR 5125). On February 4, 2004 and
February 26, 2004, respectively, the
Department received timely requests for
review from Eurodif/COGEMA and from
petitioners. On March 26, 2004, we
published a notice initiating an
administrative review of the
antidumping order on LEU from France
covering one respondent, Eurodif/
COGEMA. See Initiation of
Antidumping and Countervailing Duty
Administrative Reviews and Requests
for Revocation in Part, 69 FR 15788
(March 26, 2004).
The Department issued its original
questionnaire, sections A through D, on
April 14, 2004, and received timely
responses. On October 28, 2004, the
Department extended the deadline for
the preliminary results of this
antidumping duty administrative review
until February 28, 2005. See Notice of
Extension of Time Limit for Preliminary
Results of Antidumping Duty
Administrative Review: Low Enriched
Uranium from France, 69 FR 62867
(October 28, 2004).
On October 29, 2004, pursuant to an
allegation filed by petitioners, the
Department initiated an investigation to
determine whether Eurodif/COGEMA’s
´
´
purchases of electricity from Electricite
de France (EdF), an affiliated supplier,
during the period of review (POR), were
made at prices below the cost of
production (COP). Consequently, on
November 4, 2004, and on December 23,
2004, the Department issued
questionnaires on the COP of electricity
and received timely, although
incomplete, responses.
On December 14, 2004, the petitioners
filed comments stating that the
respondent’s costs for research and
development (R&D) were underreported. The Department is in the
process of reviewing the information
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and argument submitted by the
petitioners.
In response to comments filed by
petitioners, on February 10, 2005,
Eurodif/COGEMA filed additional
information. On the same day, the
Department reiterated its request for a
reconciliation of the costs of electricity
from EdF’s Summary Annual and
Unbundled 2003 Financial Statements
to the information in the record which
was used to calculate the per-unit cost
of electricity. See Memorandum to File
from Myrna Lobo, ‘‘Second
Antidumping Duty Administrative
Review of Low Enriched Uranium from
France; Team Meeting with Outside
Party,’’ dated February 16, 2005, on file
in the Central Record Unit, Room B–099
of the Main Commerce Building (CRU).
Eurodif/COGEMA filed two more
submissions on the costs of electricity
on February 15, 2005, and February 18,
2004, respectively. The Department
notified all parties that factual
information would not be accepted after
February 18, 2005, unless requested by
the Department. Parties were also
advised that any submission filed as of
February 22, 2005, would not be
considered for the preliminary results of
review. See Memorandum to File from
Maria MacKay, Program Manager, ‘‘New
Factual Information Deadline,’’ dated
February 23, 2005, on file in the CRU.
hexafluoride with a U235 concentration
of no greater than 0.711 percent are not
covered by the scope of this order.
Also excluded from this order is LEU
owned by a foreign utility end-user and
imported into the United States by or for
such end-user solely for purposes of
conversion by a U.S. fabricator into
uranium dioxide (UO2) and/or
fabrication into fuel assemblies so long
as the uranium dioxide and/or fuel
assemblies deemed to incorporate such
imported LEU (i) remain in the
possession and control of the U.S.
fabricator, the foreign end-user, or their
designed transporter(s) while in U.S.
customs territory, and (ii) are reexported within eighteen (18) months of
entry of the LEU for consumption by the
end-user in a nuclear reactor outside the
United States. Such entries must be
accompanied by the certifications of the
importer and end user.
The merchandise subject to this order
is classified in the Harmonized Tariff
Schedule of the United States (HTSUS)
at subheading 2844.20.0020. Subject
merchandise may also enter under
2844.20.0030, 2844.20.0050, and
2844.40.00. Although the HTSUS
subheadings are provided for
convenience and customs purposes, the
written description of the merchandise
is dispositive.
Period of Review
This review covers the period
February 1, 2003, through January 31,
2004.
Analysis
Scope of the Order
The product covered by this order is
all low enriched uranium. LEU is
enriched uranium hexafluoride (UF6)
with a U235 product assay of less than
20 percent that has not been converted
into another chemical form, such as
UO2, or fabricated into nuclear fuel
assemblies, regardless of the means by
which the LEU is produced (including
LEU produced through the downblending of highly enriched uranium).
Certain merchandise is outside the
scope of this order. Specifically, this
order does not cover enriched uranium
hexafluoride with a U235 assay of 20
percent or greater, also known as highly
enriched uranium. In addition,
fabricated LEU is not covered by the
scope of this order. For purposes of this
order, fabricated uranium is defined as
enriched uranium dioxide (UO2),
whether or not contained in nuclear fuel
rods or assemblies. Natural uranium
concentrates (U3O8) with a U235
concentration of no greater than 0.711
percent and natural uranium
concentrates converted into uranium
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Home Market Viability
In accordance with section
773(a)(1)(B) and (C) of the Tariff Act of
1930, as amended (the Act), to
determine whether there was a
sufficient volume of sales in the home
market and/or in third country markets
to serve as a viable basis for calculating
NV, we compared Eurodif/COGEMA’s
volume of home market sales and third
country sales of the foreign like product
to the volume of U.S. sales of the subject
merchandise. Eurodif/COGEMA did not
have any sales in the home market
during the POR. Pursuant to section
773(a)(1)(B) and (C) of the Act and
section 351.404 (b) of the Department’s
regulations, because Eurodif/COGEMA’s
aggregate volume of sales of the foreign
like product both in Japan and Sweden
was greater than five percent of the
aggregate volume of U.S. sales of the
subject merchandise, we determined
that Japan and Sweden are viable
markets. However, due to the
difficulties involved in calculating a
difference-in-merchandise adjustment
for non-identical products, the
Department determined to use
constructed value (CV) as the basis of
NV in this review.
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See Memorandum to Dana
Mermelstein from Elfi Blum-Page and
Myrna Lobo, ‘‘Antidumping Duty
Administrative Review of Low Enriched
Uranium (LEU) from France, Market
Viability,’’ (Viability Memorandum)
dated December 20, 2004, on file in the
CRU.
Fair Value Comparisons
To determine whether sales of LEU
from France were made in the United
States at less-than-fair value (LTFV), we
compared the CEP to CV, as described
in the Constructed Export Price and
Calculation of Normal Value Based On
Constructed Value sections of this
notice. In accordance with section
777A(d)(2) of the Act, we calculated
CEPs and compared them to CV.
We note that during the POR, the
respondent sold LEU in the United
States pursuant to contracts in which
the respondent undertook to
manufacture and deliver LEU for a cash
payment covering only the value of the
enrichment component; for the natural
uranium feedstock component, the
respondent received an amount of
natural uranium equivalent to the
amount used to produce the LEU
shipped (so-called separative work unit
(SWU) 1 contracts). However, the
product manufactured and delivered by
the respondent was LEU. For purposes
of our antidumping analysis, we have
translated prices and costs involved in
SWU contracts to an LEU basis,
increasing those values to account for
the cost of the uranium feedstock
involved. These adjustments are
described in greater detail below.
Constructed Export Price
In accordance with section 772(b) of
the Act, CEP is the price at which the
subject merchandise is first sold (or
agreed to be sold) in the United States
before or after the date of importation by
or for the account of the producer or
exporter of such merchandise, or by a
seller affiliated with the producer or
exporter, to a purchaser not affiliated
with the producer or exporter. During
the POR, Eurodif/COGEMA made sales
to the United States through its U.S.
affiliate, COGEMA Inc., which then
resold the merchandise to unaffiliated
customers. Therefore, Eurodif/COGEMA
classified all of its export sales of LEU
as CEP sales.
As stated in section 351.401(i) of the
Department’s regulations, the
Department will use the respondent’s
invoice date as the date of sale unless
1 A SWU is a unit of measurement of the effort
required to separate the U235 and U238 atoms in
uranium feed in order to create a final product
richer in U235 atoms.
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another date better reflects the date
upon which the exporter or producer
establishes the material terms of sale. In
this review, we find that the material
terms of sale are set in the contract
between COGEMA Inc. and the U.S.
customer. Therefore, as in the prior
review, we have used the contract date
as the date of sale. See Notice of Final
Results of Antidumping Duty
Administrative Review: Low Enriched
Uranium From France, 69 FR 46501
(August 3, 2004).
The Department calculated CEP for
Eurodif/COGEMA based on packed
prices to the first unaffiliated customer
in the United States. For all sales, which
involved payments on a SWU basis, we
translated the prices to an LEU basis, as
indicated above, by adding a value for
the uranium feedstock used in the
production of the LEU. This value was
derived from the respondent’s reported
entered value of feed, which was based
on publicly available information used
for customs entry purposes. We made
deductions from the starting price, net
of discounts, for movement expenses
(foreign and U.S. movement, shipment
of sample assays, movement of customer
feed from North America to France,
marine insurance, merchandise
processing and U.S. harbor maintenance
fees, and brokerage) in accordance with
section 772(c)(2) of the Act and section
351.401(e) of the Department’s
regulations. In addition, in accordance
with section 772(d)(1) of the Act, we
also deducted credit expenses and
indirect selling expenses, including
inventory carrying costs, incurred in the
United States and France and associated
with economic activities in the United
States.
Furthermore, in accordance with
sections 772(d)(3) and 772(f) of the Act,
we made a deduction for CEP profit.
The CEP profit rate is normally
calculated on the basis of total revenue
and total expenses related to sales in the
comparison market and the U.S. market.
In this case, we based NV on CV;
therefore, there was no home market
profit from which to derive CEP profit.
Consequently, we based CEP profit on
the total expenses and total revenue
related to Eurodif’s U.S. and thirdcountry sales of LEU. See Memorandum
to the File from Myrna Lobo and Elfi
Blum-Page, ‘‘Analysis of Eurodif/
COGEMA for the Preliminary Results of
the Second Administrative Review of
Low Enriched Uranium (LEU) from
France,’’ February 28, 2005 (Prelim
Analysis Memo).
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10959
Calculation of Normal Value Based on
Constructed Value
Section 773(a)(4) of the Act provides
that where NV cannot be based on
comparison market sales, NV may be
based on CV. Because of the difficulties
involved in calculating a difference-inmerchandise adjustment for nonidentical products (see the Home Market
Viability section above), in this review
the Department determined to use CV as
the basis of NV.
Section 773(e) of the Act provides that
CV shall be based on the sum of the
costs of materials and fabrication of the
foreign like product, plus amounts for
selling, general, and administrative
expenses (SG&A), profit, and U.S.
packing costs. In accordance with
section 773(e)(2)(B)(iii) of the Act, we
based general and administrative (G&A)
expenses on amounts derived from
Eurodif’s financial statements. In our
calculation of the interest expense, we
based financial expenses on the
financial statements of COGEMA’s
parent company, AREVA, which
represents the highest level of
consolidation for Eurodif. For selling
expenses, we used information on
indirect selling expenses in third
countries, including Japan, provided in
the questionnaire response. Where
appropriate, we made circumstance of
sale (COS) adjustments to CV, in
accordance with section 773(a)(8) of the
Act and section 351.410 of the
Department’s regulations.
We calculated profit in accordance
with section 773(e)(2)(B)(iii) of the Act
and the Statement of Administrative
Action regarding the Uruguay Round
Agreements Act, H.R. Doc. 103–316,
103d Cong., 2d Sess. (SAA) 841. A
positive amount for profit must be
included in the CV. There were no
home market sales during the POR, and,
based on our calculations, there is no
positive amount of profit with respect to
third country sales. Thus, we find that
it is appropriate to use a profit rate
based on AREVA’s front end division.2
AREVA’s front end division’s activities
are similar to Eurodif/COGEMA’s
business operations, and, according to
AREVA’s annual report, a substantial
2 According to AREVA’s 2003 Annual Report, the
AREVA group operates in every area of the nuclear
fuel cycle. In the Front End of the cycle, it supplies
uranium ore, and converts and enriches the
uranium in order to fabricate the fuel assemblies
that go into the reactor core. Specifically, the Front
End division is in charge of: (1) Uranium ore
exploration, mining, and treatment (concentration);
(2) uranium conversion into a chemical form
suitable for enrichment; (3) uranium 235
enrichment; and (4) fuel fabrication and assembly.
See Eurodif/COGEMA Supplemental Sections A–D
response, dated October 18, 2004, Exhibit A–66 at
page 27.
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percentage of AREVA’s front end
activities were associated with sales
outside the United States. These
similarities lead us to conclude that this
is a reasonable method for calculating
Eurodif’s profit. Therefore, lacking other
alternatives, we used a CV profit rate
based on AREVA’s front end division.
See Prelim Analysis Memo. The profit
cap under section 773(e)(2)(B)(iii) of the
Act cannot be calculated in this case
because we do not have information
allowing us to calculate the amount
normally realized by exporters or
producers (other than respondent) in
connection with the sale, for
consumption in the foreign country, of
the merchandise in the same general
category.
Electricity is considered a major input
into the production of LEU. Eurodif
obtained electricity from its affiliated
supplier, EdF. On June 9, 2004, the
petitioners alleged that Eurodif
purchased electricity from EdF at prices
less than the affiliated suppliers’ COP
during the POR. After reviewing the
allegation, the Department determined
that petitioners’ major input allegation
provided a reasonable basis on which to
initiate an investigation of Eurodif’s
purchases of electricity from EdF. See
Memorandum from Myrna Lobo and Elfi
Blum-Page, Case Analysts, to Barbara E.
Tillman, Director, Office 6,
‘‘Antidumping Duty Administrative
Review of Low Enriched Uranium from
France, Petitioners’ Allegation of
Purchases of a Major Input From
´
Electricite de France (EdF), an Affiliated
Party, at Prices Below the Affiliated
Party’s Cost of Production,’’ dated
October 29, 2004.
Section 773(f)(3) of the Act states that
‘‘{i}f, in the case of a transaction
between affiliated persons involving the
production by one of such persons of a
major input to the merchandise, the
administering authority has reasonable
grounds to believe or suspect that an
amount represented as the value of such
input is less than the cost of production
of such input, then the administering
authority may determine the value of
the major input on the basis of the
information available regarding such
cost of production, if such cost is greater
than the amount that would be
determined for such input under
paragraph (2).’’ 3 In applying the major
input rule under § 351.407(b) of the
Department’s regulations, the
Department will normally compare the
transfer price between affiliates to the
market price for the input to ensure that
the transfer price is at least reflective of
3 Paragraph 2 of section 773(f) of the Act is the
transactions disregarded rule.
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the market price. For major inputs, the
Department then compares the transfer
price and the market price to the COP
to ensure that the transfer price charged
recovers the producer’s costs of
production. As such, we evaluated the
affiliated supplier’s reported electricity
COP.
On November 4, 2004, the Department
solicited information from the
respondent regarding the calculation of
EdF’s COP. On December 23, 2004, we
asked for clarification on the significant
differences between the reported single
average cost figure and the expense
amounts shown in EdF’s annual report.
As we are unable to ascertain the
reconciling differences between the
reported costs and the costs shown in
the annual report, we have adjusted
EdF’s reported cost of producing
electricity by calculating a single
weighted-average cost of producing
electricity for the POR based on the
information from EdF’s annual report.
See Use of Partial Facts Available
section below.
Because the calculated COP for
electricity exceeded the transfer price
Eurodif paid to EdF for the electricity
purchased, we calculated CV based on
the COP of EdF, in accordance with
section 773(f)(3) of the Act. For a full
discussion of the COP of electricity, due
to the proprietary nature of this
information (see Prelim Analysis
Memo).
Use of Partial Facts Available
The Department has determined that
the use of partial facts available is
appropriate for purposes of determining
the preliminary dumping margin for
subject merchandise sold by Eurodif/
COGEMA. Specifically, as indicated
above, the Department has applied
partial facts available to its CV
calculation with respect to electricity, a
major input into the production of LEU
(see Prelim Analysis Memo).
Section 776(a)(2) of the Act provides
that, if an interested party or any other
person (A) withholds information that
has been requested by the administering
authority; (B) fails to provide such
information by the deadlines for the
submission of the information or in the
form and manner requested, subject to
subsections (c)(1) and (e) of section 782
of the Act; (C) significantly impedes a
proceeding under this subtitle; or (D)
provides such information but the
information cannot be verified as
provided in section 782(i) of the Act, the
administering authority shall, subject to
section 782(d) of the Act, use the facts
otherwise available in reaching the
applicable determination under this
title.
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As indicated above, on November 4,
2004, the Department issued a
questionnaire, requesting that Eurodif/
COGEMA provide the actual per-unit
cost of its affiliated electricity supplier
and provide worksheets demonstrating
the derivation of this cost from the
affiliated supplier’s cost accounting
system. The Department issued another
questionnaire on December 23, 2004,
requesting that Eurodif/COGEMA
provide documentary support for the
information already provided and to
reconcile such information to EdF’s
financial statements. The Department’s
detailed questions concerning the
reconciliation of the information
provided are contained in the public
versions of the two major input
questionnaires, which are on file in the
CRU.
As long recognized by the U.S. Court
of International Trade (CIT), the burden
to create a complete and accurate record
is on the respondent, not on the
Department. See Pistachio Group of the
Association Food Industries v. United
States, 671 F. Supp. 31, 39–40 (CIT
1987). In its narrative response to the
Department’s second questionnaire,
dated January 19, 2005, the respondent
indicated that this is an unusually
pressing and challenging time for EdF’s
financial department and that EdF is in
the process of closing its year-end books
and preparing its annual financial
statements. In addition, respondent
claimed that EdF staff was responding
to numerous projects at the discretion of
its new management and was also
preparing for a public offering of the
company’s capital. Eurodif/COGEMA
repeatedly stated that EdF would
provide any further information at
verification.
Eurodif/COGEMA submitted
additional information on February 10,
2005, and a partial cost reconciliation
on February 15, 2005, which the
Department determined to be
insufficient. On February 18, 2005,
Eurodif/COGEMA filed additional
information pertaining to EdF’s cost
reconciliation, which the Department
still considered to be insufficient. At
that point, due to the imminent
preliminary results of review, the
Department notified all parties that no
new information would be accepted
unless requested by the Department,
and that any submission filed as of
February 22, 2005, would not be
considered for these preliminary results.
The Department also indicated that it
would solicit more information from
respondent regarding EdF’s COP after
the issuance of the preliminary results
and that it would revisit the electricity
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cost calculation in computing the CV for
the final results of this review.
Consequently, for these preliminary
results, the Department has determined
that Eurodif/COGEMA has not
cooperated to the best of its ability in
responding to the Department’s request
for information. In accordance with
section 776(a)(2)(A) and (B) of the Act,
we are applying partial facts otherwise
available in calculating Eurodif/
COGEMA’s dumping margin. As facts
available, the Department has used a
COP for electricity calculated on the
basis of EdF’s 2003 financial statements.
See Prelim Analysis Memo.
Level of Trade
In accordance with section
773(a)(1)(B)(i) of the Act, to the extent
practicable, we determined NV based on
sales in the comparison market at the
same level of trade (LOT) as the U.S.
sales. See section 351.412(c)(1)(ii) of the
Department’s regulations. The LOT of
the sales on which NV is based is the
level of the starting-price sale in the
comparison market; when NV is based
on CV, the LOT is the level of the sales
from which we derive SG&A and profit.
For CEP, the U.S. LOT is the level of the
constructed sale from the exporter to the
importer. See § 351.412 of the
Department’s regulations.
Generally, to determine whether the
sales on which NV is based are at a
different LOT than the CEP sales, we
examine stages in the marketing process
and selling functions along the chain of
distribution between the producer and
the unaffiliated customer. If the
comparison market sales are at a
different LOT, and the difference affects
price comparability, as manifested in a
pattern of consistent price differences
between the sales on which NV is based
and the comparison market sales at the
LOT of the export transaction, we make
an LOT adjustment under section
773(a)(7)(A) of the Act. For CEP sales, if
the NV level is more remote from the
factory than the CEP level and there is
no basis for determining whether the
difference in the levels between NV and
CEP affects price comparability, we
adjust NV under section 773(a)(7)(B) of
the Act (the CEP offset provision). See
Final Determination of Sales at Less
Than Fair Value: Greenhouse Tomatoes
From Canada, 67 FR 8781 (February 26,
2002); see also Notice of Final
Determination of Sales at Less than Fair
Value: Certain Cut-to-Length Carbon
Steel Plate from South Africa, 62 FR
61731 (November 19, 1997). For CEP
sales, we consider only the selling
activities reflected in the price after the
deduction of certain expenses and CEP
profit under section 772(d) of the Act.
VerDate jul<14>2003
18:15 Mar 04, 2005
Jkt 205001
See Micron Technology Inc. v. United
States, 243 F.3d 1301, 1314–1315 (Fed.
Cir. 2001). We expect that, if the
claimed LOTs are the same, the
functions and activities of the seller
should be similar. Conversely, if a party
claims that the LOTs are different for
different groups of sales, the functions
and activities of the seller should be
dissimilar. See Porcelain-on-Steel
Cookware from Mexico: Final Results of
Administrative Review, 65 FR 30068
(May 10, 2000).
In the current review, Eurodif/
COGEMA provided information about
the marketing stages involved in the
reported U.S. sales, as well as in the
home market and in third countries,
including a description of the selling
activities performed by the respondent
for each channel of distribution. Given
that all U.S. sales were CEP sales, we
considered only the selling activities
reflected in the price after the deduction
of expenses and profit under section
772(d) of the Act.
In the U.S. market, the respondent
sells to utility customers through one
channel of distribution. After deducting
expenses associated with the selling
activities reflected in the price under
section 772(d) of the Act (i.e., the
expenses of COGEMA Inc.), we
examined the remaining selling
expenses which were associated with
such activities as strategic planning and
marketing, customer sales contact,
production planning and evaluation,
contract administration, pricing, and
quality assurance. These expenses were
provided through one U.S. channel of
distribution. Therefore, we found all
U.S. sales to be made at a single LOT.
Because Eurodif/COGEMA had sales
to third countries during the POR, we
based our LOT analysis on Eurodif/
COGEMA’s third country sales. For such
sales, the evidence on the record
indicates that eight of the 13 categories
of selling functions Eurodif performs are
at the same level of activity, and five are
performed at differing levels of activity,
compared to sales to the United States.4
Accordingly, we find that Eurodif
generally performs the same kinds of
selling functions and, in most cases, at
the same level of intensity in both
markets, the United States and third
countries. Therefore, we preliminarily
determine that Eurodif/COGEMA’s sales
to the United States and to third
countries are made at the same LOT.
Accordingly, we have made no LOT
adjustment or CEP offset in our margin
calculation program for these
4 See Eurodif/COGEMA’s Section A questionnaire
response dated May 18, 2004, at page A–20 to A–
25 and Exhibit A–4.
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Frm 00027
Fmt 4703
Sfmt 4703
10961
preliminary results. For a more detailed
discussion, see Prelim Analysis Memo.
Currency Conversion
We made currency conversions
pursuant to section 351.415 of the
Department’s regulations based on rates
certified by the Federal Reserve Bank.
Preliminary Results of Review
We preliminarily determine that the
following dumping margin exists:
Manufacturer/exporter
Eurodif/COGEMA .......................
Margin
(percent)
21.71
Public Comment
Pursuant to section 351.224(b) of the
Department’s regulations, the
Department will disclose to parties to
the proceeding any calculations
performed in connection with these
preliminary results within five days
after the date of publication of this
notice. Pursuant to section 351.309 of
the Department’s regulations, interested
parties may submit written comments in
response to these preliminary results.
Unless extended by the Department,
case briefs are to be submitted within 30
days after the date of publication of this
notice, and rebuttal briefs, limited to
arguments raised in case briefs, are to be
submitted no later than five days after
the time limit for filing case briefs.
Parties who submit arguments in this
proceeding are requested to submit with
the argument: (1) A statement of the
issues, and (2) a brief summary of the
argument. Case and rebuttal briefs must
be served on interested parties in
accordance with section 351.303(f) of
the Department’s regulations.
Also, pursuant to section 351.310 (c)
of the Department’s regulations, within
30 days of the date of publication of this
notice, interested parties may request a
public hearing on arguments to be
raised in the case and rebuttal briefs.
Unless the Secretary specifies
otherwise, the hearing, if requested, will
be held two days after the date for
submission of rebuttal briefs. Parties
will be notified of the time and location.
The Department will publish the final
results of this administrative review,
including the results of its analysis of
issues raised in any case or rebuttal
brief, no later than 120 days after
publication of these preliminary results,
unless extended. See section 351.213(h)
of the Department’s regulations.
Duty Assessment
The Department shall determine, and
CBP shall assess, antidumping duties on
all appropriate entries. Pursuant to
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section 351.212(b) of the Department’s
regulations, the Department calculates
an assessment rate for each importer of
the subject merchandise for each
respondent. The Department will issue
appropriate assessment instructions
directly to CBP within 15 days of
publication of the final results of
review.
Dated: February 28, 2005.
Joseph A. Spetrini,
Acting Assistant Secretary for Import
Administration.
[FR Doc. E5–920 Filed 3–4–05; 8:45 am]
Cash Deposit Requirements
International Trade Administration
The following cash deposit rates will
be effective with respect to all
shipments of LEU from France entered,
or withdrawn from warehouse, for
consumption on or after the publication
date of the final results, as provided for
by section 751(a)(1) of the Act: (1) For
Eurodif/COGEMA, the cash deposit rate
will be the rate established in the final
results of this review; (2) for previously
reviewed or investigated companies not
listed above, the cash deposit rate will
be the company-specific rate established
for the most recent period; (3) if the
exporter is not a firm covered in this
review, a prior review, or the LTFV
investigation, but the manufacturer is,
the cash deposit rate will be the rate
established for the most recent period
for the manufacturer of the subject
merchandise; and (4) if neither the
exporter nor the manufacturer is a firm
covered by this review, a prior review,
or the LTFV investigation, the cash
deposit rate shall be the all other rate
established in the LTFV investigation,
which is 19.95 percent. See Notice of
Amended Final Determination of Sales
at Less Than Fair Value and
Antidumping Duty Order: Low Enriched
Uranium fro France, 67 FR 6680
(February 13, 2002). These deposit rates,
when imposed, shall remain in effect
until publication of the final results of
the next administrative review.
[A–580–825]
Notification to Importers
This notice serves as a preliminary
reminder to importers of their
responsibility under section 351.402(f)
of the Department’s regulations to file a
certificate regarding the reimbursement
of antidumping duties prior to
liquidation of the relevant entries
during this review period. Failure to
comply with this requirement could
result in the Secretary’s presumption
that reimbursement of antidumping
duties occurred and the subsequent
assessment of double antidumping
duties.
This administrative review and notice
are issued and published in accordance
with sections 751(a)(1) and 777(i)(1) of
the Act.
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BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
Oil Country Tubular Goods From
Korea: Extension of Time Limit for
Preliminary Results of Antidumping
Duty Administrative Review
Import Administration,
International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: March 7, 2005.
FOR FURTHER INFORMATION CONTACT: Jeff
Boord or Nicholas Czajkowski, AD/CVD
Operations, Office 6, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW., Washington, DC 20230;
telephone: (202) 482–6345 or (202) 482–
1395, respectively.
AGENCY:
Background
On August 31, 2004, the Department
of Commerce (the Department) received
timely requests to conduct an
administrative review of the
antidumping duty order on oil country
tubular goods from Korea. On
September 22, 2004, the Department
published a notice of initiation of this
administrative review, covering the
period of August 1, 2003, through July
31, 2004 (69 FR 56745). The preliminary
results are currently due no later than
May 3, 2005.
Extension of Time Limits for
Preliminary Results
Section 751(a)(3)(A) of the Tariff Act
of 1930, as amended (the Act), requires
the Department to complete the
preliminary results of an administrative
review within 245 days after the last day
of the anniversary month of an order for
which a review is requested. However,
if it is not practicable to complete the
review within these time periods,
section 751(a)(3)(A) of the Act allows
the Department to extend the time limit
for the preliminary results to a
maximum of 365 days after the last day
of the anniversary month of an order for
which a review is requested.
We are currently analyzing a number
of complex issues with respect to the
basis for normal value which must be
addressed prior to the issuance of the
preliminary results. Specifically, our
PO 00000
Frm 00028
Fmt 4703
Sfmt 4703
analysis of input cost issues and
comparison market issues requires
additional time and makes it
impracticable to complete the
preliminary results of this review within
the originally anticipated time limit.
Accordingly, the Department is
extending the time limit for completion
of the preliminary results of this
administrative review until no later than
August 31, 2005, which is 365 days
from the last day of the anniversary
month. We intend to issue the final
results no later than 120 days after
publication of the preliminary results
notice.
Barbara E. Tillman,
Acting Deputy Assistant Secretary for Import
Administration.
[FR Doc. E5–923 Filed 3–4–05; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–570–504]
Petroleum Wax Candles From the
People’s Republic of China: Initiation
of Anticircumvention Inquiries of
Antidumping Duty Order
Import Administration,
International Trade Administration,
Department of Commerce.
ACTION: Notice of Initiation of
Anticircumvention Inquiries of
Antidumping Duty Order: Petroleum
Wax Candles from the People’s Republic
of China.
AGENCY:
SUMMARY: In response to a request from
the National Candle Association
(‘‘NCA’’ or ‘‘Petitioners’’), the
Department of Commerce (‘‘the
Department’’) is initiating an
anticircumvention inquiry pursuant to
section 781(c) of the Tariff Act of 1930,
as amended, (‘‘the Act’’) to determine
whether mixed wax candles composed
of petroleum wax and varying amounts
of either palm or vegetable–based waxes
have been subject to a minor alteration
such that the addition of the non–
petroleum content to these candles
results in products that are ‘‘altered in
form or appearance in minor respects’’
from the subject merchandise that these
mixed wax petroleum candles can be
considered subject to the antidumping
duty order on petroleum wax candles
from the People’s Republic of China
(‘‘PRC’’) under the minor alterations
provision. See Notice of Antidumping
Duty Order: Petroleum Wax Candles
from the People’s Republic of China, 51
FR 30686 (August 28, 1986) (‘‘Order’’).
E:\FR\FM\07MRN1.SGM
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Agencies
[Federal Register Volume 70, Number 43 (Monday, March 7, 2005)]
[Notices]
[Pages 10957-10962]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-427-818]
Low Enriched Uranium From France: Preliminary Results of
Antidumping Duty Administrative Review
AGENCY: Import Administration, International Trade Administration, U.S.
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) is conducting an
administrative review of the antidumping duty order on Low Enriched
Uranium (LEU) from France in response to requests by USEC Inc. and the
United States Enrichment Corporation (collectively, petitioners) and by
Eurodif, S.A.(Eurodif), Compagnie G[eacute]n[eacute]rale Des
Mati[egrave]res Nucl[eacute]aires (COGEMA) and COGEMA, Inc.
(collectively, Eurodif/COGEMA or the respondent). This review covers
sales of subject merchandise to the United States during the period of
February 1, 2003, through January 31, 2004.
We have preliminarily determined that U.S. sales have been made
below normal value (NV). If these preliminary results are adopted in
our final results, we will instruct U.S. Customs and Border Protection
(CBP) to assess antidumping duties based on the difference between the
constructed export price (CEP) and the NV. Interested parties are
invited to comment on these preliminary results.
[[Page 10958]]
See the Preliminary Results of Review section of this notice.
EFFECTIVE DATE: March 7, 2005.
FOR FURTHER INFORMATION CONTACT: Myrna Lobo or Elfi Blum-Page, AD/CVD
Operations, Office 6, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
2371 or (202) 482-0197, respectively.
Background
On February 13, 2002, the Department published the antidumping duty
order on LEU from France in the Federal Register (67 FR 6680). On
February 3, 2004, the Department published a notice of opportunity to
request an administrative review of this order (69 FR 5125). On
February 4, 2004 and February 26, 2004, respectively, the Department
received timely requests for review from Eurodif/COGEMA and from
petitioners. On March 26, 2004, we published a notice initiating an
administrative review of the antidumping order on LEU from France
covering one respondent, Eurodif/COGEMA. See Initiation of Antidumping
and Countervailing Duty Administrative Reviews and Requests for
Revocation in Part, 69 FR 15788 (March 26, 2004).
The Department issued its original questionnaire, sections A
through D, on April 14, 2004, and received timely responses. On October
28, 2004, the Department extended the deadline for the preliminary
results of this antidumping duty administrative review until February
28, 2005. See Notice of Extension of Time Limit for Preliminary Results
of Antidumping Duty Administrative Review: Low Enriched Uranium from
France, 69 FR 62867 (October 28, 2004).
On October 29, 2004, pursuant to an allegation filed by
petitioners, the Department initiated an investigation to determine
whether Eurodif/COGEMA's purchases of electricity from
[Eacute]lectricit[eacute] de France (EdF), an affiliated supplier,
during the period of review (POR), were made at prices below the cost
of production (COP). Consequently, on November 4, 2004, and on December
23, 2004, the Department issued questionnaires on the COP of
electricity and received timely, although incomplete, responses.
On December 14, 2004, the petitioners filed comments stating that
the respondent's costs for research and development (R&D) were under-
reported. The Department is in the process of reviewing the information
and argument submitted by the petitioners.
In response to comments filed by petitioners, on February 10, 2005,
Eurodif/COGEMA filed additional information. On the same day, the
Department reiterated its request for a reconciliation of the costs of
electricity from EdF's Summary Annual and Unbundled 2003 Financial
Statements to the information in the record which was used to calculate
the per-unit cost of electricity. See Memorandum to File from Myrna
Lobo, ``Second Antidumping Duty Administrative Review of Low Enriched
Uranium from France; Team Meeting with Outside Party,'' dated February
16, 2005, on file in the Central Record Unit, Room B-099 of the Main
Commerce Building (CRU). Eurodif/COGEMA filed two more submissions on
the costs of electricity on February 15, 2005, and February 18, 2004,
respectively. The Department notified all parties that factual
information would not be accepted after February 18, 2005, unless
requested by the Department. Parties were also advised that any
submission filed as of February 22, 2005, would not be considered for
the preliminary results of review. See Memorandum to File from Maria
MacKay, Program Manager, ``New Factual Information Deadline,'' dated
February 23, 2005, on file in the CRU.
Period of Review
This review covers the period February 1, 2003, through January 31,
2004.
Scope of the Order
The product covered by this order is all low enriched uranium. LEU
is enriched uranium hexafluoride (UF6) with a
U235 product assay of less than 20 percent that has not been
converted into another chemical form, such as UO2, or
fabricated into nuclear fuel assemblies, regardless of the means by
which the LEU is produced (including LEU produced through the down-
blending of highly enriched uranium).
Certain merchandise is outside the scope of this order.
Specifically, this order does not cover enriched uranium hexafluoride
with a U\235\ assay of 20 percent or greater, also known as highly
enriched uranium. In addition, fabricated LEU is not covered by the
scope of this order. For purposes of this order, fabricated uranium is
defined as enriched uranium dioxide (UO2), whether or not
contained in nuclear fuel rods or assemblies. Natural uranium
concentrates (U3O8) with a U\235\ concentration
of no greater than 0.711 percent and natural uranium concentrates
converted into uranium hexafluoride with a U\235\ concentration of no
greater than 0.711 percent are not covered by the scope of this order.
Also excluded from this order is LEU owned by a foreign utility
end-user and imported into the United States by or for such end-user
solely for purposes of conversion by a U.S. fabricator into uranium
dioxide (UO2) and/or fabrication into fuel assemblies so
long as the uranium dioxide and/or fuel assemblies deemed to
incorporate such imported LEU (i) remain in the possession and control
of the U.S. fabricator, the foreign end-user, or their designed
transporter(s) while in U.S. customs territory, and (ii) are re-
exported within eighteen (18) months of entry of the LEU for
consumption by the end-user in a nuclear reactor outside the United
States. Such entries must be accompanied by the certifications of the
importer and end user.
The merchandise subject to this order is classified in the
Harmonized Tariff Schedule of the United States (HTSUS) at subheading
2844.20.0020. Subject merchandise may also enter under 2844.20.0030,
2844.20.0050, and 2844.40.00. Although the HTSUS subheadings are
provided for convenience and customs purposes, the written description
of the merchandise is dispositive.
Analysis
Home Market Viability
In accordance with section 773(a)(1)(B) and (C) of the Tariff Act
of 1930, as amended (the Act), to determine whether there was a
sufficient volume of sales in the home market and/or in third country
markets to serve as a viable basis for calculating NV, we compared
Eurodif/COGEMA's volume of home market sales and third country sales of
the foreign like product to the volume of U.S. sales of the subject
merchandise. Eurodif/COGEMA did not have any sales in the home market
during the POR. Pursuant to section 773(a)(1)(B) and (C) of the Act and
section 351.404 (b) of the Department's regulations, because Eurodif/
COGEMA's aggregate volume of sales of the foreign like product both in
Japan and Sweden was greater than five percent of the aggregate volume
of U.S. sales of the subject merchandise, we determined that Japan and
Sweden are viable markets. However, due to the difficulties involved in
calculating a difference-in-merchandise adjustment for non-identical
products, the Department determined to use constructed value (CV) as
the basis of NV in this review.
[[Page 10959]]
See Memorandum to Dana Mermelstein from Elfi Blum-Page and Myrna
Lobo, ``Antidumping Duty Administrative Review of Low Enriched Uranium
(LEU) from France, Market Viability,'' (Viability Memorandum) dated
December 20, 2004, on file in the CRU.
Fair Value Comparisons
To determine whether sales of LEU from France were made in the
United States at less-than-fair value (LTFV), we compared the CEP to
CV, as described in the Constructed Export Price and Calculation of
Normal Value Based On Constructed Value sections of this notice. In
accordance with section 777A(d)(2) of the Act, we calculated CEPs and
compared them to CV.
We note that during the POR, the respondent sold LEU in the United
States pursuant to contracts in which the respondent undertook to
manufacture and deliver LEU for a cash payment covering only the value
of the enrichment component; for the natural uranium feedstock
component, the respondent received an amount of natural uranium
equivalent to the amount used to produce the LEU shipped (so-called
separative work unit (SWU) \1\ contracts). However, the product
manufactured and delivered by the respondent was LEU. For purposes of
our antidumping analysis, we have translated prices and costs involved
in SWU contracts to an LEU basis, increasing those values to account
for the cost of the uranium feedstock involved. These adjustments are
described in greater detail below.
---------------------------------------------------------------------------
\1\ A SWU is a unit of measurement of the effort required to
separate the U235 and U238 atoms in uranium feed in order to create
a final product richer in U\235\ atoms.
---------------------------------------------------------------------------
Constructed Export Price
In accordance with section 772(b) of the Act, CEP is the price at
which the subject merchandise is first sold (or agreed to be sold) in
the United States before or after the date of importation by or for the
account of the producer or exporter of such merchandise, or by a seller
affiliated with the producer or exporter, to a purchaser not affiliated
with the producer or exporter. During the POR, Eurodif/COGEMA made
sales to the United States through its U.S. affiliate, COGEMA Inc.,
which then resold the merchandise to unaffiliated customers. Therefore,
Eurodif/COGEMA classified all of its export sales of LEU as CEP sales.
As stated in section 351.401(i) of the Department's regulations,
the Department will use the respondent's invoice date as the date of
sale unless another date better reflects the date upon which the
exporter or producer establishes the material terms of sale. In this
review, we find that the material terms of sale are set in the contract
between COGEMA Inc. and the U.S. customer. Therefore, as in the prior
review, we have used the contract date as the date of sale. See Notice
of Final Results of Antidumping Duty Administrative Review: Low
Enriched Uranium From France, 69 FR 46501 (August 3, 2004).
The Department calculated CEP for Eurodif/COGEMA based on packed
prices to the first unaffiliated customer in the United States. For all
sales, which involved payments on a SWU basis, we translated the prices
to an LEU basis, as indicated above, by adding a value for the uranium
feedstock used in the production of the LEU. This value was derived
from the respondent's reported entered value of feed, which was based
on publicly available information used for customs entry purposes. We
made deductions from the starting price, net of discounts, for movement
expenses (foreign and U.S. movement, shipment of sample assays,
movement of customer feed from North America to France, marine
insurance, merchandise processing and U.S. harbor maintenance fees, and
brokerage) in accordance with section 772(c)(2) of the Act and section
351.401(e) of the Department's regulations. In addition, in accordance
with section 772(d)(1) of the Act, we also deducted credit expenses and
indirect selling expenses, including inventory carrying costs, incurred
in the United States and France and associated with economic activities
in the United States.
Furthermore, in accordance with sections 772(d)(3) and 772(f) of
the Act, we made a deduction for CEP profit. The CEP profit rate is
normally calculated on the basis of total revenue and total expenses
related to sales in the comparison market and the U.S. market. In this
case, we based NV on CV; therefore, there was no home market profit
from which to derive CEP profit. Consequently, we based CEP profit on
the total expenses and total revenue related to Eurodif's U.S. and
third-country sales of LEU. See Memorandum to the File from Myrna Lobo
and Elfi Blum-Page, ``Analysis of Eurodif/COGEMA for the Preliminary
Results of the Second Administrative Review of Low Enriched Uranium
(LEU) from France,'' February 28, 2005 (Prelim Analysis Memo).
Calculation of Normal Value Based on Constructed Value
Section 773(a)(4) of the Act provides that where NV cannot be based
on comparison market sales, NV may be based on CV. Because of the
difficulties involved in calculating a difference-in-merchandise
adjustment for non-identical products (see the Home Market Viability
section above), in this review the Department determined to use CV as
the basis of NV.
Section 773(e) of the Act provides that CV shall be based on the
sum of the costs of materials and fabrication of the foreign like
product, plus amounts for selling, general, and administrative expenses
(SG&A), profit, and U.S. packing costs. In accordance with section
773(e)(2)(B)(iii) of the Act, we based general and administrative (G&A)
expenses on amounts derived from Eurodif's financial statements. In our
calculation of the interest expense, we based financial expenses on the
financial statements of COGEMA's parent company, AREVA, which
represents the highest level of consolidation for Eurodif. For selling
expenses, we used information on indirect selling expenses in third
countries, including Japan, provided in the questionnaire response.
Where appropriate, we made circumstance of sale (COS) adjustments to
CV, in accordance with section 773(a)(8) of the Act and section 351.410
of the Department's regulations.
We calculated profit in accordance with section 773(e)(2)(B)(iii)
of the Act and the Statement of Administrative Action regarding the
Uruguay Round Agreements Act, H.R. Doc. 103-316, 103d Cong., 2d Sess.
(SAA) 841. A positive amount for profit must be included in the CV.
There were no home market sales during the POR, and, based on our
calculations, there is no positive amount of profit with respect to
third country sales. Thus, we find that it is appropriate to use a
profit rate based on AREVA's front end division.\2\ AREVA's front end
division's activities are similar to Eurodif/COGEMA's business
operations, and, according to AREVA's annual report, a substantial
[[Page 10960]]
percentage of AREVA's front end activities were associated with sales
outside the United States. These similarities lead us to conclude that
this is a reasonable method for calculating Eurodif's profit.
Therefore, lacking other alternatives, we used a CV profit rate based
on AREVA's front end division. See Prelim Analysis Memo. The profit cap
under section 773(e)(2)(B)(iii) of the Act cannot be calculated in this
case because we do not have information allowing us to calculate the
amount normally realized by exporters or producers (other than
respondent) in connection with the sale, for consumption in the foreign
country, of the merchandise in the same general category.
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\2\ According to AREVA's 2003 Annual Report, the AREVA group
operates in every area of the nuclear fuel cycle. In the Front End
of the cycle, it supplies uranium ore, and converts and enriches the
uranium in order to fabricate the fuel assemblies that go into the
reactor core. Specifically, the Front End division is in charge of:
(1) Uranium ore exploration, mining, and treatment (concentration);
(2) uranium conversion into a chemical form suitable for enrichment;
(3) uranium 235 enrichment; and (4) fuel fabrication and assembly.
See Eurodif/COGEMA Supplemental Sections A-D response, dated October
18, 2004, Exhibit A-66 at page 27.
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Electricity is considered a major input into the production of LEU.
Eurodif obtained electricity from its affiliated supplier, EdF. On June
9, 2004, the petitioners alleged that Eurodif purchased electricity
from EdF at prices less than the affiliated suppliers' COP during the
POR. After reviewing the allegation, the Department determined that
petitioners' major input allegation provided a reasonable basis on
which to initiate an investigation of Eurodif's purchases of
electricity from EdF. See Memorandum from Myrna Lobo and Elfi Blum-
Page, Case Analysts, to Barbara E. Tillman, Director, Office 6,
``Antidumping Duty Administrative Review of Low Enriched Uranium from
France, Petitioners' Allegation of Purchases of a Major Input From
Electricit[eacute] de France (EdF), an Affiliated Party, at Prices
Below the Affiliated Party's Cost of Production,'' dated October 29,
2004.
Section 773(f)(3) of the Act states that ``{i{time} f, in the case
of a transaction between affiliated persons involving the production by
one of such persons of a major input to the merchandise, the
administering authority has reasonable grounds to believe or suspect
that an amount represented as the value of such input is less than the
cost of production of such input, then the administering authority may
determine the value of the major input on the basis of the information
available regarding such cost of production, if such cost is greater
than the amount that would be determined for such input under paragraph
(2).'' \3\ In applying the major input rule under Sec. 351.407(b) of
the Department's regulations, the Department will normally compare the
transfer price between affiliates to the market price for the input to
ensure that the transfer price is at least reflective of the market
price. For major inputs, the Department then compares the transfer
price and the market price to the COP to ensure that the transfer price
charged recovers the producer's costs of production. As such, we
evaluated the affiliated supplier's reported electricity COP.
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\3\ Paragraph 2 of section 773(f) of the Act is the transactions
disregarded rule.
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On November 4, 2004, the Department solicited information from the
respondent regarding the calculation of EdF's COP. On December 23,
2004, we asked for clarification on the significant differences between
the reported single average cost figure and the expense amounts shown
in EdF's annual report. As we are unable to ascertain the reconciling
differences between the reported costs and the costs shown in the
annual report, we have adjusted EdF's reported cost of producing
electricity by calculating a single weighted-average cost of producing
electricity for the POR based on the information from EdF's annual
report. See Use of Partial Facts Available section below.
Because the calculated COP for electricity exceeded the transfer
price Eurodif paid to EdF for the electricity purchased, we calculated
CV based on the COP of EdF, in accordance with section 773(f)(3) of the
Act. For a full discussion of the COP of electricity, due to the
proprietary nature of this information (see Prelim Analysis Memo).
Use of Partial Facts Available
The Department has determined that the use of partial facts
available is appropriate for purposes of determining the preliminary
dumping margin for subject merchandise sold by Eurodif/COGEMA.
Specifically, as indicated above, the Department has applied partial
facts available to its CV calculation with respect to electricity, a
major input into the production of LEU (see Prelim Analysis Memo).
Section 776(a)(2) of the Act provides that, if an interested party
or any other person (A) withholds information that has been requested
by the administering authority; (B) fails to provide such information
by the deadlines for the submission of the information or in the form
and manner requested, subject to subsections (c)(1) and (e) of section
782 of the Act; (C) significantly impedes a proceeding under this
subtitle; or (D) provides such information but the information cannot
be verified as provided in section 782(i) of the Act, the administering
authority shall, subject to section 782(d) of the Act, use the facts
otherwise available in reaching the applicable determination under this
title.
As indicated above, on November 4, 2004, the Department issued a
questionnaire, requesting that Eurodif/COGEMA provide the actual per-
unit cost of its affiliated electricity supplier and provide worksheets
demonstrating the derivation of this cost from the affiliated
supplier's cost accounting system. The Department issued another
questionnaire on December 23, 2004, requesting that Eurodif/COGEMA
provide documentary support for the information already provided and to
reconcile such information to EdF's financial statements. The
Department's detailed questions concerning the reconciliation of the
information provided are contained in the public versions of the two
major input questionnaires, which are on file in the CRU.
As long recognized by the U.S. Court of International Trade (CIT),
the burden to create a complete and accurate record is on the
respondent, not on the Department. See Pistachio Group of the
Association Food Industries v. United States, 671 F. Supp. 31, 39-40
(CIT 1987). In its narrative response to the Department's second
questionnaire, dated January 19, 2005, the respondent indicated that
this is an unusually pressing and challenging time for EdF's financial
department and that EdF is in the process of closing its year-end books
and preparing its annual financial statements. In addition, respondent
claimed that EdF staff was responding to numerous projects at the
discretion of its new management and was also preparing for a public
offering of the company's capital. Eurodif/COGEMA repeatedly stated
that EdF would provide any further information at verification.
Eurodif/COGEMA submitted additional information on February 10,
2005, and a partial cost reconciliation on February 15, 2005, which the
Department determined to be insufficient. On February 18, 2005,
Eurodif/COGEMA filed additional information pertaining to EdF's cost
reconciliation, which the Department still considered to be
insufficient. At that point, due to the imminent preliminary results of
review, the Department notified all parties that no new information
would be accepted unless requested by the Department, and that any
submission filed as of February 22, 2005, would not be considered for
these preliminary results. The Department also indicated that it would
solicit more information from respondent regarding EdF's COP after the
issuance of the preliminary results and that it would revisit the
electricity
[[Page 10961]]
cost calculation in computing the CV for the final results of this
review.
Consequently, for these preliminary results, the Department has
determined that Eurodif/COGEMA has not cooperated to the best of its
ability in responding to the Department's request for information. In
accordance with section 776(a)(2)(A) and (B) of the Act, we are
applying partial facts otherwise available in calculating Eurodif/
COGEMA's dumping margin. As facts available, the Department has used a
COP for electricity calculated on the basis of EdF's 2003 financial
statements. See Prelim Analysis Memo.
Level of Trade
In accordance with section 773(a)(1)(B)(i) of the Act, to the
extent practicable, we determined NV based on sales in the comparison
market at the same level of trade (LOT) as the U.S. sales. See section
351.412(c)(1)(ii) of the Department's regulations. The LOT of the sales
on which NV is based is the level of the starting-price sale in the
comparison market; when NV is based on CV, the LOT is the level of the
sales from which we derive SG&A and profit. For CEP, the U.S. LOT is
the level of the constructed sale from the exporter to the importer.
See Sec. 351.412 of the Department's regulations.
Generally, to determine whether the sales on which NV is based are
at a different LOT than the CEP sales, we examine stages in the
marketing process and selling functions along the chain of distribution
between the producer and the unaffiliated customer. If the comparison
market sales are at a different LOT, and the difference affects price
comparability, as manifested in a pattern of consistent price
differences between the sales on which NV is based and the comparison
market sales at the LOT of the export transaction, we make an LOT
adjustment under section 773(a)(7)(A) of the Act. For CEP sales, if the
NV level is more remote from the factory than the CEP level and there
is no basis for determining whether the difference in the levels
between NV and CEP affects price comparability, we adjust NV under
section 773(a)(7)(B) of the Act (the CEP offset provision). See Final
Determination of Sales at Less Than Fair Value: Greenhouse Tomatoes
From Canada, 67 FR 8781 (February 26, 2002); see also Notice of Final
Determination of Sales at Less than Fair Value: Certain Cut-to-Length
Carbon Steel Plate from South Africa, 62 FR 61731 (November 19, 1997).
For CEP sales, we consider only the selling activities reflected in the
price after the deduction of certain expenses and CEP profit under
section 772(d) of the Act. See Micron Technology Inc. v. United States,
243 F.3d 1301, 1314-1315 (Fed. Cir. 2001). We expect that, if the
claimed LOTs are the same, the functions and activities of the seller
should be similar. Conversely, if a party claims that the LOTs are
different for different groups of sales, the functions and activities
of the seller should be dissimilar. See Porcelain-on-Steel Cookware
from Mexico: Final Results of Administrative Review, 65 FR 30068 (May
10, 2000).
In the current review, Eurodif/COGEMA provided information about
the marketing stages involved in the reported U.S. sales, as well as in
the home market and in third countries, including a description of the
selling activities performed by the respondent for each channel of
distribution. Given that all U.S. sales were CEP sales, we considered
only the selling activities reflected in the price after the deduction
of expenses and profit under section 772(d) of the Act.
In the U.S. market, the respondent sells to utility customers
through one channel of distribution. After deducting expenses
associated with the selling activities reflected in the price under
section 772(d) of the Act (i.e., the expenses of COGEMA Inc.), we
examined the remaining selling expenses which were associated with such
activities as strategic planning and marketing, customer sales contact,
production planning and evaluation, contract administration, pricing,
and quality assurance. These expenses were provided through one U.S.
channel of distribution. Therefore, we found all U.S. sales to be made
at a single LOT.
Because Eurodif/COGEMA had sales to third countries during the POR,
we based our LOT analysis on Eurodif/COGEMA's third country sales. For
such sales, the evidence on the record indicates that eight of the 13
categories of selling functions Eurodif performs are at the same level
of activity, and five are performed at differing levels of activity,
compared to sales to the United States.\4\ Accordingly, we find that
Eurodif generally performs the same kinds of selling functions and, in
most cases, at the same level of intensity in both markets, the United
States and third countries. Therefore, we preliminarily determine that
Eurodif/COGEMA's sales to the United States and to third countries are
made at the same LOT. Accordingly, we have made no LOT adjustment or
CEP offset in our margin calculation program for these preliminary
results. For a more detailed discussion, see Prelim Analysis Memo.
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\4\ See Eurodif/COGEMA's Section A questionnaire response dated
May 18, 2004, at page A-20 to A-25 and Exhibit A-4.
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Currency Conversion
We made currency conversions pursuant to section 351.415 of the
Department's regulations based on rates certified by the Federal
Reserve Bank.
Preliminary Results of Review
We preliminarily determine that the following dumping margin
exists:
------------------------------------------------------------------------
Margin
Manufacturer/exporter (percent)
------------------------------------------------------------------------
Eurodif/COGEMA.............................................. 21.71
------------------------------------------------------------------------
Public Comment
Pursuant to section 351.224(b) of the Department's regulations, the
Department will disclose to parties to the proceeding any calculations
performed in connection with these preliminary results within five days
after the date of publication of this notice. Pursuant to section
351.309 of the Department's regulations, interested parties may submit
written comments in response to these preliminary results. Unless
extended by the Department, case briefs are to be submitted within 30
days after the date of publication of this notice, and rebuttal briefs,
limited to arguments raised in case briefs, are to be submitted no
later than five days after the time limit for filing case briefs.
Parties who submit arguments in this proceeding are requested to submit
with the argument: (1) A statement of the issues, and (2) a brief
summary of the argument. Case and rebuttal briefs must be served on
interested parties in accordance with section 351.303(f) of the
Department's regulations.
Also, pursuant to section 351.310 (c) of the Department's
regulations, within 30 days of the date of publication of this notice,
interested parties may request a public hearing on arguments to be
raised in the case and rebuttal briefs. Unless the Secretary specifies
otherwise, the hearing, if requested, will be held two days after the
date for submission of rebuttal briefs. Parties will be notified of the
time and location.
The Department will publish the final results of this
administrative review, including the results of its analysis of issues
raised in any case or rebuttal brief, no later than 120 days after
publication of these preliminary results, unless extended. See section
351.213(h) of the Department's regulations.
Duty Assessment
The Department shall determine, and CBP shall assess, antidumping
duties on all appropriate entries. Pursuant to
[[Page 10962]]
section 351.212(b) of the Department's regulations, the Department
calculates an assessment rate for each importer of the subject
merchandise for each respondent. The Department will issue appropriate
assessment instructions directly to CBP within 15 days of publication
of the final results of review.
Cash Deposit Requirements
The following cash deposit rates will be effective with respect to
all shipments of LEU from France entered, or withdrawn from warehouse,
for consumption on or after the publication date of the final results,
as provided for by section 751(a)(1) of the Act: (1) For Eurodif/
COGEMA, the cash deposit rate will be the rate established in the final
results of this review; (2) for previously reviewed or investigated
companies not listed above, the cash deposit rate will be the company-
specific rate established for the most recent period; (3) if the
exporter is not a firm covered in this review, a prior review, or the
LTFV investigation, but the manufacturer is, the cash deposit rate will
be the rate established for the most recent period for the manufacturer
of the subject merchandise; and (4) if neither the exporter nor the
manufacturer is a firm covered by this review, a prior review, or the
LTFV investigation, the cash deposit rate shall be the all other rate
established in the LTFV investigation, which is 19.95 percent. See
Notice of Amended Final Determination of Sales at Less Than Fair Value
and Antidumping Duty Order: Low Enriched Uranium fro France, 67 FR 6680
(February 13, 2002). These deposit rates, when imposed, shall remain in
effect until publication of the final results of the next
administrative review.
Notification to Importers
This notice serves as a preliminary reminder to importers of their
responsibility under section 351.402(f) of the Department's regulations
to file a certificate regarding the reimbursement of antidumping duties
prior to liquidation of the relevant entries during this review period.
Failure to comply with this requirement could result in the Secretary's
presumption that reimbursement of antidumping duties occurred and the
subsequent assessment of double antidumping duties.
This administrative review and notice are issued and published in
accordance with sections 751(a)(1) and 777(i)(1) of the Act.
Dated: February 28, 2005.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
[FR Doc. E5-920 Filed 3-4-05; 8:45 am]
BILLING CODE 3510-DS-P