Notice of Preliminary Results of Countervailing Duty Administrative Review: Low Enriched Uranium From France, 7924-7927 [E6-2166]

Download as PDF 7924 Federal Register / Vol. 71, No. 31 / Wednesday, February 15, 2006 / Notices cprice-sewell on PROD1PC66 with NOTICES • Pen-top computer. The product must bear the valid trademark FlyTM 9 • ZwipesTM: A notebook or notebook organizer made with a blended polyolefin writing surface as the cover and pocket surfaces of the notebook, suitable for writing using a specially-developed permanent marker and erase system (known as a ZwipesTM pen). This system allows the marker portion to mark the writing surface with permanent ink. The eraser portion of the marker dispenses a solvent capable of solubilizing the permanent ink allowing the ink to be removed. The product must bear the valid trademark ZwipesTM.10 • FiveStarAdvanceTM: A notebook or notebook organizer bound by a continuous spiral, or helical, wire and with plastic front and rear covers made of a blended polyolefin plastic material joined by 300 denier polyester, coated on the backside with PVC (poly vinyl chloride) coating, and extending the entire length of the spiral or helical wire. The polyolefin plastic covers are of specific thickness; front cover is .019 inches (within normal manufacturing tolerances) and rear cover is .028 inches (within normal manufacturing tolerances). Integral with the stitching that attaches the polyester spine covering, is captured at both ends of a 1″ wide elastic fabric band. This band is located 23⁄8″ from the top of the front plastic cover and provides pen or pencil storage. Both ends of the spiral wire are cut and then bent backwards to overlap with the previous coil but specifically outside the coil diameter but inside the polyester covering. During construction, the polyester covering is sewn to the front and rear covers face to face (outside to outside) so that when the book is closed, the stitching is concealed from the outside. Both free ends (the ends not sewn to the cover and back) are stitched with a turned edge construction. The flexible polyester material forms a covering over the spiral wire to protect it and provide a comfortable grip on the product. The product must bear the valid trademarks FiveStarAdvanceTM.11 • FiveStar FlexTM: A notebook, a notebook organizer, or binder with plastic polyolefin front and rear covers joined by a 300 denier polyester spine cover extending the entire length of the spine and bound by a 3-ring plastic fixture. The polyolefin plastic covers are of a specific thickness; front cover is .019 inches (within normal manufacturing tolerances) and rear cover is .028 inches (within normal manufacturing tolerances). During construction, the polyester covering is sewn to the front cover face to face (outside to outside) so that when the book is closed, the stitching is concealed from the outside. During construction, the polyester cover is sewn to the back cover with the outside of the polyester spine cover to the inside back cover. Both free ends (the ends not sewn to 9 Products found to be bearing an invalidly licensed or used trademark are not excluded from the scope. 10 Products found to be bearing an invalidly licensed or used trademark are not excluded from the scope. 11 Products found to be bearing an invalidly licensed or used trademark are not excluded from the scope. VerDate Aug<31>2005 13:17 Feb 14, 2006 Jkt 208001 the cover and back) are stitched with a turned edge construction. Each ring within the fixture is comprised of a flexible strap portion that snaps into a stationary post which forms a closed binding ring. The ring fixture is riveted with six metal rivets and sewn to the back plastic cover and is specifically positioned on the outside back cover. The product must bear the valid trademark FiveStar FlexTM.12 Merchandise subject to this investigation is typically imported under headings 4820.10.2050, 4810.22.5044, and 4811.90.9090 of the Harmonized Tariff Schedule of the United States (HTSUS).13 The tariff classifications are provided for convenience and U.S. Customs purposes; however, the written description of the scope of the investigation is dispositive. [FR Doc. 06–1419 Filed 2–14–06; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [C–427–819] Notice of Preliminary Results of Countervailing Duty Administrative Review: Low Enriched Uranium From France Import Administration, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (the Department) is conducting an administrative review of the countervailing duty (CVD) order on low enriched uranium (LEU) from France for the period January 1, 2004, through December 31, 2004. For information on the net subsidy for the reviewed company, please see the ‘‘Preliminary Results of Review’’ section, infra. If the final results remain the same as the preliminary results of this review, we will instruct U.S. Customs and Border Protection (CBP) to assess countervailing duties as detailed in the ‘‘Preliminary Results of Administrative Review’’ section, infra. Interested parties are invited to comment on these preliminary results. (See the ‘‘Public Comment’’ section, infra). DATES: Effective February 15, 2006. FOR FURTHER INFORMATION CONTACT: Kristen Johnson, AD/CVD Operations, Office 3, Import Administration, International Trade Administration, U.S. Department of Commerce, Room 4014, 14th Street and Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482–4793. AGENCY: 12 Products found to be bearing an invalidly licensed or used trademark are not exclused from the scope. 13 During the investigation additional HTSUS subheadings may be identified. PO 00000 Frm 00013 Fmt 4703 Sfmt 4703 SUPPLEMENTARY INFORMATION: Background On February 13, 2002, the Department published in the Federal Register the CVD order on LEU from France. See Amended Final Determination and Notice of Countervailing Duty Order: Low Enriched Uranium From France, 67 FR 6689 (February 13, 2002) (Amended LEU Final Determination). On February 1, 2005, the Department published an opportunity to request an administrative review of this CVD order. See Antidumping or Countervailing Duty Order, Finding, or Suspended Investigation; Opportunity to Request Administrative Review, 70 FR 5136 (February 1, 2005). On February 1, 2005, we received a timely request for review from Eurodif S.A. (Eurodif)/Compagnie Generale Des Matieres Nucleaires (COGEMA), the French producer/ exporter of subject merchandise covered under this review, and on February 25, 2005, we received a timely request for review from petitioners.1 On March 23, 2005, the Department published the initiation of the administrative review of the CVD order on LEU from France, covering the January 1, 2004, through December 31, 2004, period of review (POR). See Initiation of Antidumping and Countervailing Duty Administrative Reviews and Requests for Revocation in Part, 70 FR 14643 (March 23, 2005). On April 5, 2005, the Department issued a questionnaire to Eurodif/ COGEMA and the Government of France (GOF), collectively ‘‘the respondents.’’ On May 31, 2005, the Department received questionnaire responses from Eurodif/COGEMA and the GOF. On August 3, 2005, the Department issued a supplemental questionnaire to respondents and received their questionnaire responses on August 19, 2005. A second supplemental questionnaire was issued to respondents on September 14, 2005. On October 17, 2005, the Department published in the Federal Register a notice of extension of the deadline for the preliminary results of this administrative review. See Notice of Extension of Time Limit for Preliminary Results of Countervailing Duty Administrative Reviews: Low Enriched Uranium from France, Germany, the Netherlands, and the United Kingdom, 70 FR 60284 (October 17, 2005). The Department received a response to the September 14, 2005, supplemental questionnaire from Eurodif/COGEMA on December 20, 2005, and from the GOF on December 21, 2005. 1 Petitioners are USEC Inc. and its wholly owned subsidiary, United States Enrichment Corporation. E:\FR\FM\15FEN1.SGM 15FEN1 Federal Register / Vol. 71, No. 31 / Wednesday, February 15, 2006 / Notices the written description of the merchandise is dispositive. Scope of the Order cprice-sewell on PROD1PC66 with NOTICES In accordance with 19 CFR 351.213(b), this review covers only those producers or exporters for which a review was specifically requested. The only company subject to this review is Eurodif/COGEMA. This review covers two programs. Company History The product covered by this order is all LEU. 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 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 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 designated 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 currently classifiable 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, Eurodif was formed in 1973, by French and foreign government agencies to provide a secure source of LEU in order to facilitate the development of nuclear energy programs in participating countries. During the POR, Eurodif was 44.65 percent-owned by COGEMA, which is wholly owned by AREVA, a corporation principally owned by Commissariat d’Energie Atomique, an agency of the GOF. Further, Eurodif was 25 percent-owned by SOFIDIF, a French company that is 60 percent-owned by COGEMA, thereby effectively placing COGEMA’s ownership of Eurodif at approximately 60 percent during the POR. The remaining major shareholders of Eurodif during the POR were ENUSA, an entity of the Spanish government, SYNATOM, an entity of the Belgian government, and ENEA, an entity of the Italian government. VerDate Aug<31>2005 13:17 Feb 14, 2006 Jkt 208001 Period of Review The POR for which we are measuring subsidies is January 1, 2004, through December 31, 2004. Programs Preliminarily Determined To Be Countervailable 1. Purchases at Prices That Constitute ‘‘More Than Adequate Remuneration’’ Eurodif provides LEU to Electricite de France (EdF), a wholly owned French government agency that supplies, imports, and exports electricity. EdF is the major supplier of electricity in France, and is regulated by the Gas, Electricity, and Coal Department of the Ministry of Industry and the Budget and Treasury Departments of the Ministry of Finance. Since 1979, when Eurodif began enrichment at its Georges-Besse gaseous diffusion facility, Eurodif and EdF have entered into long-term supply contracts. All deliveries of the subject merchandise to EdF during the POR were made pursuant to the 1995 contract. In the Final Affirmative Countervailing Duty Determination: Low Enriched Uranium From France, 66 FR 65901 (December 21, 2001) (LEU Final Determination), and the Final Results of Countervailing Duty Administrative Review: Low Enriched Uranium From France, 70 FR 39998 (July 12, 2005) (LEU 2003 Final Results), we found this program to be countervailable. The facts on which this determination was made have not changed. EdF is still owned by the GOF, and because EdF is purchasing a good from Eurodif, a financial PO 00000 Frm 00014 Fmt 4703 Sfmt 4703 7925 contribution is being provided under section 771(5)(D)(iv) of the Tariff Act of 1930, as amended (the Act). The program is specific under section 771(5A)(D)(i) of the Act because it is available only to Eurodif. Under section 771(5)(E)(iv) of the Act, a countervailable benefit may be provided by a government’s purchase of a good for ‘‘more than adequate remuneration.’’ Pursuant to section 771(5)(E)(iv) of the Act, the adequacy of remuneration will be determined in relation to the prevailing market conditions for the good being purchased in the country which is subject to the review. Therefore, in order to determine whether the prices paid by EdF constitute ‘‘more than adequate remuneration,’’ we compared the prices paid by EdF to Eurodif with the prices paid by EdF to its other suppliers. Due to the difference in the pricing structure between EdF and Eurodif, as compared with the pricing structure between EdF and its other suppliers, it is necessary to make certain adjustments for the comparison. Unlike most of Eurodif’s other customers, EdF provides its own energy for Eurodif to use when producing LEU. Beginning in 2002, EdF started to pay Eurodif in energy for the energy that Eurodif uses to produce LEU for EdF. Operational costs associated with the production of the LEU, however, are charged to EdF by Eurodif. Conversely, EdF does not supply electricity to its other LEU suppliers. As such, these other suppliers charge EdF a single price per separative work unit (SWU).2 Therefore, in order to make a proper comparison between the benchmark price (i.e., the single price per-SWU) and the actual price (i.e., the price paid by EdF to Eurodif), we have included both an operational and energy price paid by EdF to Eurodif. As part of the arrangement for obtaining LEU, customers often provide an amount of natural uranium equal to that which theoretically goes into the LEU they are purchasing. The record, however, does not contain information on the value of the natural uranium provided by EdF or other customers to Eurodif. In the ‘‘Issues and Decision Memorandum from Bernard T. Carreau, Deputy Assistant Secretary for AD/CVD Enforcement II to Faryar Shirzad, Assistant Secretary for Import Administration concerning the Final Affirmative Countervailing Duty Determination: Low Enriched Uranium from France—Calendar Year 1999,’’ 2 The ‘‘separative work unit’’ or (SWU) is the unit of measure of effort required to carry out isotopic separation of the uranium from its natural state of the concentration of ‘‘assay’’ required for power plant use. E:\FR\FM\15FEN1.SGM 15FEN1 7926 Federal Register / Vol. 71, No. 31 / Wednesday, February 15, 2006 / Notices cprice-sewell on PROD1PC66 with NOTICES A= B * (C / D) E Where: A = Ad Valorem Rate B = Subsidy Benefit C = Sales of Subject Merchandise to the United States during Calendar Year 2004 3 A public version of the document is available on the public record in the Central Records Unit (CRU) located in the main Commerce Building in room B– 099. VerDate Aug<31>2005 13:17 Feb 14, 2006 Jkt 208001 D = Total Sales during Calendar Year 2004 (including COGEMA sales on behalf of Eurodif) E = Sales that Entered U.S. customs territory during Calendar Year 2004 On this basis, we preliminarily determine the net countervailable subsidy from this program to be 1.53 percent ad valorem. 2. Exoneration/Reimbursement of Corporate Income Taxes Under a specific governmental agreement entered into upon Eurodif’s creation, Eurodif is only liable for income taxes on the portion of its income relating to the percentage of its private ownership. Eurodif is fully exonerated from payment of corporate income taxes corresponding to the percentage of its foreign government ownership and is eligible for a reimbursement of the amount of corporate income taxes corresponding to the percentage of its French government ownership. In the LEU Final Determination and LEU 2003 Final Results, we found this program to be countervailable. No new information has been provided in this review to warrant reconsideration of our determination. During the POR, (i.e., calendar year 2004), Eurodif filed its 2003 corporate income tax return. Based on the governmental tax agreement, Eurodif was exonerated from a portion of its 2003 income taxes filed during the POR. Eurodif was also reimbursed that portion of its 2003 income taxes attributable to the percentage of French government ownership during the POR. This tax exemption and reimbursement constitute a financial contribution within the meaning of section 771(5)(D)(ii) of the Act. Further, because the tax exemption and reimbursement are limited to Eurodif, the benefit is specific in accordance with section 771(5A)(D)(i) of the Act. In accordance with 19 CFR 351.509(b), we calculated the benefit under this program by determining the amount of corporate income taxes that Eurodif would have otherwise paid, absent the program, on the tax return it filed during the POR. Specifically, we added the amount of exonerated taxes and the amount of reimbursable taxes during the POR. Consistent with the methodology that we employed in the ‘‘Purchase at Prices that Constitute ‘More Than Adequate Remuneration’ ’’ section above, we multiplied the total benefit amount by the sales of subject merchandise to the United States divided by total sales, and then divided that result by sales that entered U.S. customs territory during 2004. On this PO 00000 Frm 00015 Fmt 4703 Sfmt 4703 basis, we preliminarily determine a net countervailable subsidy of 3.53 percent ad valorem for this tax program. Preliminary Results of Review In accordance with section 703(d)(1)(A)(i) of the Act, we have calculated a subsidy rate for Eurodif/ COGEMA for calendar year 2004. We preliminarily determine that the total estimated net countervailable subsidy rate is 5.06 percent ad valorem. While the countervailing duty deposit rate for Eurodif/COGEMA may change as a result of this administrative review, we have been enjoined from liquidating any entries of the subject merchandise. Consequently, we do not intend to issue liquidation instructions for these entries until such time as the injunctions, issued on June 24, 2002, and November 1, 2004, are lifted. If the final results of this review remain the same as these preliminary results, the Department, however, intends to instruct CBP to collect cash deposits of estimated countervailing duties at 5.06 percent ad valorem of the f.o.b. invoice price on all shipments of the subject merchandise from Eurodif/ COGEMA entered, or withdrawn from warehouse, for consumption on or after the date of publication of the final results of this administrative review. We will also instruct CBP to continue to collect cash deposits for non-reviewed companies at the most recent companyspecific or country-wide rate applicable to the company. Accordingly, the cash deposit rates that will be applied to nonreviewed companies covered by this order are those established in the most recently completed administrative proceeding conducted under the URAA. See Amended LEU Final Determination. These rates shall apply to all nonreviewed companies until a review of a company assigned these rates is requested. Public Comment Pursuant to 19 CFR 351.224(b), 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 the public announcement of this notice. Pursuant to 19 CFR 351.309, interested parties may submit written comments in response to these preliminary results. Unless otherwise indicated by the Department, case briefs must be submitted within 30 days after the date of publication of this notice. Rebuttal briefs, limited to arguments raised in case briefs, must be submitted no later than five days after the time limit for filing case briefs, unless otherwise E:\FR\FM\15FEN1.SGM 15FEN1 EN15FE06.002</MATH> dated December 13, 2001, we assumed that the value of all natural uranium is the same (see discussion at page 5). Therefore, in making purchase comparisons in this review, we continue to assume that the value of all natural uranium is the same in instances where EdF supplied its own feed material for enrichment. Thus, we have not included a value for the natural uranium component of the LEU delivered to EdF by Eurodif. In order to determine whether a benefit was provided to Eurodif/ COGEMA during the POR, we calculated a per-SWU price for both the energy and operational components of the LEU purchased by EdF from Eurodif. See the February 8, 2006, Memorandum concerning the Calculations for the Notice of Preliminary Countervailing Duty Results: Low Enriched Uranium from France.3 After adding these two components together, we compared the per-SWU price paid to Eurodif by EdF in 2004 with the per-SWU price paid by EdF to its other LEU suppliers in 2004. Based on our analysis, we preliminarily determine that prices paid by EdF to Eurodif were higher than prices EdF paid to its other suppliers. Therefore, in accordance with section 771(5)(E)(iv) of the Act, we preliminarily determine that this program conferred countervailable benefits to Eurodif in 2004. Because EdF’s purchases from Eurodif are not exceptional but, rather, are made on an ongoing basis from year to year, we determine that the benefit conferred under this program is recurring under 19 CFR 351.524(c). Therefore, we have expensed the benefit in the year of receipt, i.e., calendar year 2004. To determine the program rate for the POR, we first multiplied the benefit amount by the sales of subject merchandise to the United States divided by total sales, and then divided the result by the sales that entered U.S. customs territory during calendar year 2004. Specifically, we calculated the ad valorem rate for this program using the following formula: Federal Register / Vol. 71, No. 31 / Wednesday, February 15, 2006 / Notices specified by the Department. Parties who submit argument in this proceeding are requested to submit with the argument: (1) A statement of the issue, and (2) a brief summary of the argument. Parties submitting case and/ or rebuttal briefs are requested to provide the Department copies of the public version on disk. Case and rebuttal briefs must be served on interested parties in accordance with 19 CFR 351.303(f). Also, pursuant to 19 CFR 351.310, 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, that is, 37 days after the date of publication of these preliminary results. Representatives of parties to the proceeding may request disclosure of proprietary information under administrative protective order no later than 10 days after the representative’s client or employer becomes a party to the proceeding, but in no event later than the date the case briefs, under 19 CFR 351.309(c)(ii), are due. The Department will publish the final results of this administrative review, including the results of its analysis of arguments made in any case or rebuttal briefs. This administrative review is issued and published in accordance with section 751(a)(1) and 777(i)(1) of the Act. Dated: February 8, 2006. David M. Spooner, Assistant Secretary for Import Administration. [FR Doc. E6–2166 Filed 2–14–06; 8:45 am] BILLING CODE 3510–DS–P SUMMARY: On December 28, 2005, the NMFS announced its intent to prepare an Environmental Impact Statement (EIS) to analyze the environmental impacts of administering grants and issuing permits to facilitate research on endangered and threatened Steller sea lions (Eumetopias jubatus) and depleted northern fur seals (Callorhinus ursinus). Written comments were due by February 13, 2006. NMFS has decided to allow additional time for submission of public comments on this action. DATES: The public comment period for this action has been extended from February 13 to February 25, 2006. Written comments must be postmarked by February 25, 2006. ADDRESSES: Written comments should be mailed to: Steve Leathery, Chief, Permits, Conservation and Education Division, Office of Protected Resources, National Marine Fisheries Service, 1315 East-West Highway, Room 13705, Silver Spring, MD 20910–3226. Written comments may also be submitted by facsimile to 301–427–2583, or by e-mail at ssleis.comments@noaa.gov. FOR FURTHER INFORMATION CONTACT: Tammy Adams or Andrew Wright at 301–713–2289. SUPPLEMENTARY INFORMATION: On December 28, 2005 (70 FR 76780) NMFS announced its intent to prepare an EIS regarding Steller sea lion and northern fur seal research. Background information concerning the EIS can be found in the December 28, 2005, Federal Register notice and is not repeated here. For additional information about Steller sea lions, northern fur seals, the permit process, and this EIS, please visit the project website at: https://www.nmfs.noaa.gov/ pr/permits/eis/steller.htm. National Oceanic and Atmospheric Administration Dated: February 9, 2006. Stephen L. Leathery, Chief, Permits, Conservation and Education Division, Office of Protected Resources, National Marine Fisheries Service. [FR Doc. 06–1432 Filed 2–10–06; 3:29 pm] [I.D. 122005C] BILLING CODE 3510–22–S DEPARTMENT OF COMMERCE cprice-sewell on PROD1PC66 with NOTICES Notice of Intent to Prepare an Environmental Impact Statement on Impacts of Research on Steller Sea Lions and Northern Fur Seals Throughout Their Range in the United States National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce. ACTION: Notice of intent to prepare environmental impact statement; extension of comment period. AGENCY: VerDate Aug<31>2005 13:17 Feb 14, 2006 Jkt 208001 National Oceanic and Atmospheric Administration [I.D. 020806E] Gulf of Mexico Fishery Management Council; Public Meeting National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce. AGENCY: Frm 00016 Fmt 4703 Notice of a public meeting. SUMMARY: The Gulf of Mexico Fishery Management Council (Council) will convene its Socioeconomic Panel (SEP). DATES: The meeting will convene at 9 a.m. on Thursday, March 2, 2006, and conclude no later than 12 noon on Friday, March 3, 2006. ADDRESSES: The meeting will be held at the Quorum Hotel Tampa, 700 North Westshore Boulevard, Tampa, FL 33609. Council address: Gulf of Mexico Fishery Management Council, 2203 North Lois Avenue, Suite 1100, Tampa, FL 33607. FOR FURTHER INFORMATION CONTACT: Dr. Assane Diagne, Economist, Gulf of Mexico Fishery Management Council; telephone: (813) 348–1630. SUPPLEMENTARY INFORMATION: The Gulf of Mexico Fishery Management Council (Council) will convene its Socioeconomic Panel (SEP) to discuss total allowable catch (TAC) allocation issues. The SEP will prepare a report containing their conclusions and recommendations. This report will be presented to the Council at its meeting March 20–23, 2006 at the Radisson Admiral Semmes Hotel in Mobile, AL. A copy of the agenda and related materials can be obtained by calling the Council office at (813) 348–1630. Although other non-emergency issues not on the agendas may come before the SEP for discussion, in accordance with the Magnuson-Stevens Fishery Conservation and Management Act (Magnuson-Stevens Act), those issues may not be the subject of formal action during this meeting. Actions of the SEP will be restricted to those issues specifically identified in the agendas and any issues arising after publication of this notice that require emergency action under Section 305(c) of the Magnuson-Stevens Act, provided the public has been notified of the Council’s intent to take action to address the emergency. Special Accommodations DEPARTMENT OF COMMERCE PO 00000 ACTION: 7927 Sfmt 4703 This meeting is physically accessible to people with disabilities. Requests for sign language interpretation or other auxiliary aids should be directed to Dawn Aring at the Council (see ADDRESSES) at least 5 working days prior to the meeting. Dated: February 10, 2006. Tracey L. Thompson, Acting Director, Office of Sustainable Fisheries Service, National Marine Fisheries Service. [FR Doc. E6–2159 Filed 2–14–06; 8:45 am] BILLING CODE 3510–22–S E:\FR\FM\15FEN1.SGM 15FEN1

Agencies

[Federal Register Volume 71, Number 31 (Wednesday, February 15, 2006)]
[Notices]
[Pages 7924-7927]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-2166]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-427-819]


Notice of Preliminary Results of Countervailing Duty 
Administrative Review: Low Enriched Uranium From France

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) is conducting an 
administrative review of the countervailing duty (CVD) order on low 
enriched uranium (LEU) from France for the period January 1, 2004, 
through December 31, 2004. For information on the net subsidy for the 
reviewed company, please see the ``Preliminary Results of Review'' 
section, infra. If the final results remain the same as the preliminary 
results of this review, we will instruct U.S. Customs and Border 
Protection (CBP) to assess countervailing duties as detailed in the 
``Preliminary Results of Administrative Review'' section, infra. 
Interested parties are invited to comment on these preliminary results. 
(See the ``Public Comment'' section, infra).

DATES: Effective February 15, 2006.

FOR FURTHER INFORMATION CONTACT: Kristen Johnson, AD/CVD Operations, 
Office 3, Import Administration, International Trade Administration, 
U.S. Department of Commerce, Room 4014, 14th Street and Constitution 
Avenue, NW., Washington, DC 20230; telephone: (202) 482-4793.

SUPPLEMENTARY INFORMATION:

Background

    On February 13, 2002, the Department published in the Federal 
Register the CVD order on LEU from France. See Amended Final 
Determination and Notice of Countervailing Duty Order: Low Enriched 
Uranium From France, 67 FR 6689 (February 13, 2002) (Amended LEU Final 
Determination). On February 1, 2005, the Department published an 
opportunity to request an administrative review of this CVD order. See 
Antidumping or Countervailing Duty Order, Finding, or Suspended 
Investigation; Opportunity to Request Administrative Review, 70 FR 5136 
(February 1, 2005). On February 1, 2005, we received a timely request 
for review from Eurodif S.A. (Eurodif)/Compagnie Generale Des Matieres 
Nucleaires (COGEMA), the French producer/exporter of subject 
merchandise covered under this review, and on February 25, 2005, we 
received a timely request for review from petitioners.\1\ On March 23, 
2005, the Department published the initiation of the administrative 
review of the CVD order on LEU from France, covering the January 1, 
2004, through December 31, 2004, period of review (POR). See Initiation 
of Antidumping and Countervailing Duty Administrative Reviews and 
Requests for Revocation in Part, 70 FR 14643 (March 23, 2005).
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    \1\ Petitioners are USEC Inc. and its wholly owned subsidiary, 
United States Enrichment Corporation.
---------------------------------------------------------------------------

    On April 5, 2005, the Department issued a questionnaire to Eurodif/
COGEMA and the Government of France (GOF), collectively ``the 
respondents.'' On May 31, 2005, the Department received questionnaire 
responses from Eurodif/COGEMA and the GOF. On August 3, 2005, the 
Department issued a supplemental questionnaire to respondents and 
received their questionnaire responses on August 19, 2005. A second 
supplemental questionnaire was issued to respondents on September 14, 
2005. On October 17, 2005, the Department published in the Federal 
Register a notice of extension of the deadline for the preliminary 
results of this administrative review. See Notice of Extension of Time 
Limit for Preliminary Results of Countervailing Duty Administrative 
Reviews: Low Enriched Uranium from France, Germany, the Netherlands, 
and the United Kingdom, 70 FR 60284 (October 17, 2005). The Department 
received a response to the September 14, 2005, supplemental 
questionnaire from Eurodif/COGEMA on December 20, 2005, and from the 
GOF on December 21, 2005.

[[Page 7925]]

    In accordance with 19 CFR 351.213(b), this review covers only those 
producers or exporters for which a review was specifically requested. 
The only company subject to this review is Eurodif/COGEMA. This review 
covers two programs.

Scope of the Order

    The product covered by this order is all LEU. 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 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 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 designated 
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 currently classifiable 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

    The POR for which we are measuring subsidies is January 1, 2004, 
through December 31, 2004.

Company History

    Eurodif was formed in 1973, by French and foreign government 
agencies to provide a secure source of LEU in order to facilitate the 
development of nuclear energy programs in participating countries. 
During the POR, Eurodif was 44.65 percent-owned by COGEMA, which is 
wholly owned by AREVA, a corporation principally owned by Commissariat 
d'Energie Atomique, an agency of the GOF. Further, Eurodif was 25 
percent-owned by SOFIDIF, a French company that is 60 percent-owned by 
COGEMA, thereby effectively placing COGEMA's ownership of Eurodif at 
approximately 60 percent during the POR. The remaining major 
shareholders of Eurodif during the POR were ENUSA, an entity of the 
Spanish government, SYNATOM, an entity of the Belgian government, and 
ENEA, an entity of the Italian government.

Programs Preliminarily Determined To Be Countervailable

1. Purchases at Prices That Constitute ``More Than Adequate 
Remuneration''

    Eurodif provides LEU to Electricite de France (EdF), a wholly owned 
French government agency that supplies, imports, and exports 
electricity. EdF is the major supplier of electricity in France, and is 
regulated by the Gas, Electricity, and Coal Department of the Ministry 
of Industry and the Budget and Treasury Departments of the Ministry of 
Finance. Since 1979, when Eurodif began enrichment at its Georges-Besse 
gaseous diffusion facility, Eurodif and EdF have entered into long-term 
supply contracts. All deliveries of the subject merchandise to EdF 
during the POR were made pursuant to the 1995 contract.
    In the Final Affirmative Countervailing Duty Determination: Low 
Enriched Uranium From France, 66 FR 65901 (December 21, 2001) (LEU 
Final Determination), and the Final Results of Countervailing Duty 
Administrative Review: Low Enriched Uranium From France, 70 FR 39998 
(July 12, 2005) (LEU 2003 Final Results), we found this program to be 
countervailable. The facts on which this determination was made have 
not changed. EdF is still owned by the GOF, and because EdF is 
purchasing a good from Eurodif, a financial contribution is being 
provided under section 771(5)(D)(iv) of the Tariff Act of 1930, as 
amended (the Act). The program is specific under section 771(5A)(D)(i) 
of the Act because it is available only to Eurodif.
    Under section 771(5)(E)(iv) of the Act, a countervailable benefit 
may be provided by a government's purchase of a good for ``more than 
adequate remuneration.'' Pursuant to section 771(5)(E)(iv) of the Act, 
the adequacy of remuneration will be determined in relation to the 
prevailing market conditions for the good being purchased in the 
country which is subject to the review. Therefore, in order to 
determine whether the prices paid by EdF constitute ``more than 
adequate remuneration,'' we compared the prices paid by EdF to Eurodif 
with the prices paid by EdF to its other suppliers.
    Due to the difference in the pricing structure between EdF and 
Eurodif, as compared with the pricing structure between EdF and its 
other suppliers, it is necessary to make certain adjustments for the 
comparison. Unlike most of Eurodif's other customers, EdF provides its 
own energy for Eurodif to use when producing LEU. Beginning in 2002, 
EdF started to pay Eurodif in energy for the energy that Eurodif uses 
to produce LEU for EdF. Operational costs associated with the 
production of the LEU, however, are charged to EdF by Eurodif.
    Conversely, EdF does not supply electricity to its other LEU 
suppliers. As such, these other suppliers charge EdF a single price per 
separative work unit (SWU).\2\ Therefore, in order to make a proper 
comparison between the benchmark price (i.e., the single price per-SWU) 
and the actual price (i.e., the price paid by EdF to Eurodif), we have 
included both an operational and energy price paid by EdF to Eurodif.
---------------------------------------------------------------------------

    \2\ The ``separative work unit'' or (SWU) is the unit of measure 
of effort required to carry out isotopic separation of the uranium 
from its natural state of the concentration of ``assay'' required 
for power plant use.
---------------------------------------------------------------------------

    As part of the arrangement for obtaining LEU, customers often 
provide an amount of natural uranium equal to that which theoretically 
goes into the LEU they are purchasing. The record, however, does not 
contain information on the value of the natural uranium provided by EdF 
or other customers to Eurodif. In the ``Issues and Decision Memorandum 
from Bernard T. Carreau, Deputy Assistant Secretary for AD/CVD 
Enforcement II to Faryar Shirzad, Assistant Secretary for Import 
Administration concerning the Final Affirmative Countervailing Duty 
Determination: Low Enriched Uranium from France--Calendar Year 1999,''

[[Page 7926]]

dated December 13, 2001, we assumed that the value of all natural 
uranium is the same (see discussion at page 5). Therefore, in making 
purchase comparisons in this review, we continue to assume that the 
value of all natural uranium is the same in instances where EdF 
supplied its own feed material for enrichment. Thus, we have not 
included a value for the natural uranium component of the LEU delivered 
to EdF by Eurodif.
    In order to determine whether a benefit was provided to Eurodif/
COGEMA during the POR, we calculated a per-SWU price for both the 
energy and operational components of the LEU purchased by EdF from 
Eurodif. See the February 8, 2006, Memorandum concerning the 
Calculations for the Notice of Preliminary Countervailing Duty Results: 
Low Enriched Uranium from France.\3\ After adding these two components 
together, we compared the per-SWU price paid to Eurodif by EdF in 2004 
with the per-SWU price paid by EdF to its other LEU suppliers in 2004. 
Based on our analysis, we preliminarily determine that prices paid by 
EdF to Eurodif were higher than prices EdF paid to its other suppliers. 
Therefore, in accordance with section 771(5)(E)(iv) of the Act, we 
preliminarily determine that this program conferred countervailable 
benefits to Eurodif in 2004. Because EdF's purchases from Eurodif are 
not exceptional but, rather, are made on an ongoing basis from year to 
year, we determine that the benefit conferred under this program is 
recurring under 19 CFR 351.524(c). Therefore, we have expensed the 
benefit in the year of receipt, i.e., calendar year 2004.
---------------------------------------------------------------------------

    \3\ A public version of the document is available on the public 
record in the Central Records Unit (CRU) located in the main 
Commerce Building in room B-099.
---------------------------------------------------------------------------

    To determine the program rate for the POR, we first multiplied the 
benefit amount by the sales of subject merchandise to the United States 
divided by total sales, and then divided the result by the sales that 
entered U.S. customs territory during calendar year 2004. Specifically, 
we calculated the ad valorem rate for this program using the following 
formula:
[GRAPHIC] [TIFF OMITTED] TN15FE06.002

Where:

A = Ad Valorem Rate
B = Subsidy Benefit
C = Sales of Subject Merchandise to the United States during Calendar 
Year 2004
D = Total Sales during Calendar Year 2004 (including COGEMA sales on 
behalf of Eurodif)
E = Sales that Entered U.S. customs territory during Calendar Year 2004

    On this basis, we preliminarily determine the net countervailable 
subsidy from this program to be 1.53 percent ad valorem.

2. Exoneration/Reimbursement of Corporate Income Taxes

    Under a specific governmental agreement entered into upon Eurodif's 
creation, Eurodif is only liable for income taxes on the portion of its 
income relating to the percentage of its private ownership. Eurodif is 
fully exonerated from payment of corporate income taxes corresponding 
to the percentage of its foreign government ownership and is eligible 
for a reimbursement of the amount of corporate income taxes 
corresponding to the percentage of its French government ownership. In 
the LEU Final Determination and LEU 2003 Final Results, we found this 
program to be countervailable. No new information has been provided in 
this review to warrant reconsideration of our determination.
    During the POR, (i.e., calendar year 2004), Eurodif filed its 2003 
corporate income tax return. Based on the governmental tax agreement, 
Eurodif was exonerated from a portion of its 2003 income taxes filed 
during the POR. Eurodif was also reimbursed that portion of its 2003 
income taxes attributable to the percentage of French government 
ownership during the POR. This tax exemption and reimbursement 
constitute a financial contribution within the meaning of section 
771(5)(D)(ii) of the Act. Further, because the tax exemption and 
reimbursement are limited to Eurodif, the benefit is specific in 
accordance with section 771(5A)(D)(i) of the Act.
    In accordance with 19 CFR 351.509(b), we calculated the benefit 
under this program by determining the amount of corporate income taxes 
that Eurodif would have otherwise paid, absent the program, on the tax 
return it filed during the POR. Specifically, we added the amount of 
exonerated taxes and the amount of reimbursable taxes during the POR. 
Consistent with the methodology that we employed in the ``Purchase at 
Prices that Constitute `More Than Adequate Remuneration' '' section 
above, we multiplied the total benefit amount by the sales of subject 
merchandise to the United States divided by total sales, and then 
divided that result by sales that entered U.S. customs territory during 
2004. On this basis, we preliminarily determine a net countervailable 
subsidy of 3.53 percent ad valorem for this tax program.

Preliminary Results of Review

    In accordance with section 703(d)(1)(A)(i) of the Act, we have 
calculated a subsidy rate for Eurodif/COGEMA for calendar year 2004. We 
preliminarily determine that the total estimated net countervailable 
subsidy rate is 5.06 percent ad valorem.
    While the countervailing duty deposit rate for Eurodif/COGEMA may 
change as a result of this administrative review, we have been enjoined 
from liquidating any entries of the subject merchandise. Consequently, 
we do not intend to issue liquidation instructions for these entries 
until such time as the injunctions, issued on June 24, 2002, and 
November 1, 2004, are lifted.
    If the final results of this review remain the same as these 
preliminary results, the Department, however, intends to instruct CBP 
to collect cash deposits of estimated countervailing duties at 5.06 
percent ad valorem of the f.o.b. invoice price on all shipments of the 
subject merchandise from Eurodif/COGEMA entered, or withdrawn from 
warehouse, for consumption on or after the date of publication of the 
final results of this administrative review. We will also instruct CBP 
to continue to collect cash deposits for non-reviewed companies at the 
most recent company-specific or country-wide rate applicable to the 
company. Accordingly, the cash deposit rates that will be applied to 
non-reviewed companies covered by this order are those established in 
the most recently completed administrative proceeding conducted under 
the URAA. See Amended LEU Final Determination. These rates shall apply 
to all non-reviewed companies until a review of a company assigned 
these rates is requested.

Public Comment

    Pursuant to 19 CFR 351.224(b), 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 the public 
announcement of this notice. Pursuant to 19 CFR 351.309, interested 
parties may submit written comments in response to these preliminary 
results. Unless otherwise indicated by the Department, case briefs must 
be submitted within 30 days after the date of publication of this 
notice. Rebuttal briefs, limited to arguments raised in case briefs, 
must be submitted no later than five days after the time limit for 
filing case briefs, unless otherwise

[[Page 7927]]

specified by the Department. Parties who submit argument in this 
proceeding are requested to submit with the argument: (1) A statement 
of the issue, and (2) a brief summary of the argument. Parties 
submitting case and/or rebuttal briefs are requested to provide the 
Department copies of the public version on disk. Case and rebuttal 
briefs must be served on interested parties in accordance with 19 CFR 
351.303(f). Also, pursuant to 19 CFR 351.310, 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, that is, 37 days after the date of publication of 
these preliminary results.
    Representatives of parties to the proceeding may request disclosure 
of proprietary information under administrative protective order no 
later than 10 days after the representative's client or employer 
becomes a party to the proceeding, but in no event later than the date 
the case briefs, under 19 CFR 351.309(c)(ii), are due. The Department 
will publish the final results of this administrative review, including 
the results of its analysis of arguments made in any case or rebuttal 
briefs.
    This administrative review is issued and published in accordance 
with section 751(a)(1) and 777(i)(1) of the Act.

    Dated: February 8, 2006.
David M. Spooner,
Assistant Secretary for Import Administration.
 [FR Doc. E6-2166 Filed 2-14-06; 8:45 am]
BILLING CODE 3510-DS-P
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