[Federal Register Volume 63, Number 128 (Monday, July 6, 1998)]
[Notices]
[Pages 36391-36393]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-17787]


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DEPARTMENT OF COMMERCE

International Trade Administration


Procedures for Delivery of HEU Natural Uranium Component in the 
United States

AGENCY: Import Administration, International Trade Administration, U.S. 
Department of Commerce.

ACTION: Notice.

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SUMMARY: The Department of Commerce is announcing procedures and 
required certifications pursuant to the USEC Privatization Act.

EFFECTIVE DATE: March 20, 1998.

FOR FURTHER INFORMATION CONTACT: James Doyle, Karla Whalen, or Letitia 
Kress, AD/CVD Enforcement Group III, Office VII, Import Administration, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue, N.W., Washington, DC 20230, telephone: 
(202) 482-0159, (202) 482-1386, or (202) 482-6412, respectively.

Background

    On April 25, 1996, Congress passed the United States Enrichment 
Corporation Privatization Act (The USEC Privatization Act), 42 U.S.C. 
2297h et seq. The USEC Privatization Act required the U.S. Department 
of Commerce (the Department) to administer and enforce the limitations 
set forth in Section 42 U.S.C. 2297h-10(b)(5) of the USEC Privatization 
Act. On January 7, 1998, the Department issued Procedures for Delivery 
of HEU Natural Uranium Component in the United States (The HEU 
Procedures).
    On March 20, 1998, the Department issued Annex 1 to the HEU 
Procedures to clarify certain requirements detailed in the HEU 
Procedures. This announcement provides public notification of the HEU 
Procedures and their Annex 1. Annex 1 details required certification 
language and includes two additional certification requirements in 
items A and C. Item A is an amendment to the certifications currently 
required of all importers of uranium, regardless of national origin. 
Item B is the designated agent's certification referred to Section B of 
the HEU Procedures. Item C lists all the certifications which must 
accompany all quarterly reports submitted to the Department in 
accordance with section C of the HEU Procedures.
    The following Attachment 1 provides the Procedures for the Delivery 
of HEU Natural Uranium Component in the United States and Attachment 2 
provides Annex 1 to the HEU Procedures.

    Dated: June 25, 1998.
Joseph A. Spetrini,
Deputy Assistant Secretary, AD/CVD Enforcement Group III, Import 
Administration.

Attachment 1--Procedures for Delivery of HEU Natural Uranium Component 
in the United States

A. Annual Maximum Deliveries

    The United States Department of Commerce (``the Department'') 
designates the Ministry of Atomic Energy of the Russian Federation 
(``MINATOM''), or its designated agent, to allocate the annual 
maximum deliveries of HEU natural uranium component among any 
marketing agent(s) authorized by MINATOM to sell the HEU natural 
uranium component in the United States. The annual maximum 
deliveries which may be allocated by MINATOM are set forth in the 
United States Enrichment Corporation (USEC) Privatization Act, 42 
U.S.C. 2297h-10(b)(5) (``Delivery Schedule'').
    For each agent receiving a delivery allocation, MINATOM will 
issue a certificate identifying such agent, the duration of the 
allocation, and the maximum annual amount to be delivered under that 
certificate. The certificate(s) will also contain a statement that 
the material to be delivered to the agent for sale in the United 
States will be delivered for consumption only. MINATOM will provide 
a copy of all such certificates to the Department within 10 days of 
issuance.
    The cumulative amount of the deliveries authorized by such 
certificates each year may not exceed the annual maximum deliveries 
set forth in the Delivery Schedule. Annual deliveries allocated to 
any given agent may be re-allocated to any other agent(s) or to 
MINATOM within the same annual period subject to the annual maximum 
deliveries under the following conditions:

--The Department is notified of the re-allocation no later than 
December 1 of the affected annual period;
--MINATOM provides the Department with a copy of the amended and/or 
terminated certificate(s) from which delivery allocation is to be 
withdrawn and a copy of the new certificate(s) re-allocating such 
deliveries.

    New contracts entered into by any agent(s) as a result of re-
allocation will be subject to the approval process outlined in 
paragraph B.
    If, in any given annual period, an agent delivers less than the 
maximum flexibility(ies) under an approved contract(s), such agent 
may enter into a new contract(s) for the difference between its 
actual deliveries during that year and the maximum flexibilities 
under the contract(s) for that same year, provided that the agent's 
total annual deliveries under all contracts do not exceed the 
agent's delivery allocation or the annual maximum deliveries and 
provided that the following conditions are met:

--The Department is notified of the agent's intention to re-direct 
deliveries by December 1;

[[Page 36392]]

--All new contracts entered into by agents resulting from re-
direction of deliveries must be approved under paragraph B.

    On December 31 of each year, any portion of the annual maximum 
deliveries not so delivered in that year will be forfeited.

B. Contract Monitoring and Approval

    The Department will require all authorized agents to submit for 
approval all contracts related to the sale of the HEU natural 
uranium component to end-users for consumption in the United States. 
Contract approval will be contingent on the following requirements:

--A certificate as provided for in paragraph A confirming that the 
relevant agent has been allowed sufficient amounts for deliveries by 
MINATOM to fulfill its obligations under the submitted contract;
--A schedule of deliveries indicating the date, amount, and point of 
each delivery;
--A statement in the contract that the material to be sold is of 
Russian origin;
--A statement in the contract that the sale is for consumption 
only.<SUP>1</SUP>
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    \1\ For consumption means for use as nuclear fuel. Swaps, 
exchanges or loans of material may be conducted solely for the 
purpose of facilitating further processing and use as nuclear fuel. 
All such permitted swaps, exchanges or loans must be documented to 
the Department prior to each such transaction. The Department 
considers swaps, exchanges or loans that will result in significant 
disruptions to the uranium production market and in the depression 
of market prices to be a circumvention of Section 3112(b) of the 
USEC Privatization Act. The material may be re-sold as a result of a 
force majeure.
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--A certification from the relevant agent that the deliveries 
pursuant to the contract submitted for approval, when combined with 
deliveries pursuant to other approved contracts entered into by that 
agent, do not exceed that agent's delivery allocation for any given 
annual period. In addition, each agent shall certify to the 
Department that such agent's sales of Russian uranium are solely for 
consumption and do not circumvent, directly or indirectly, the 
limitations set forth in Section 3112(b) of the USEC Privatization 
Act and the procedures set forth in this document.

    The Department will officially notify the relevant agent of 
contract approval/rejection within 10 business days of contract 
submission. If an approved contract is subsequently terminated as a 
result of force majeure, the Department will allow the affected 
agent to replace such contract with a newly executed contract, 
subject to the approval process outlined above, provided that the 
agent's delivery allocation and the annual maximum deliveries are 
not exceeded.
    The Department will develop a separate record for actions 
undertaken pursuant to the USEC Privatization Act and will announce 
filing procedures consistent with existing antidumping procedures 
during January 1998.

C. Quarterly Reports/Verification

    The Department will require quarterly reports from all 
authorized agents of HEU natural uranium component detailing all 
activity relating to the movement of HEU natural uranium component 
into and out of their respective accounts. In addition, the 
Department will require similar quarterly reports from the 
administrator of the account holding the HEU natural uranium 
component prior to sale, e.g., USEC. These reports will be submitted 
on May 1, August 1, November 1, and February 1 of each year for the 
quarters ending March 31, June 30, September 30, and December 31.
    The Department reserves the right to verify quarterly reports 
and to restrict future deliveries from any account in which the 
reported activity appears to be in violation of these procedures 
and/or the annual maximum deliveries if such potential violations 
are not rectified to the satisfaction of the Department and MINATOM.
    MINATOM and the Department will hold annual consultations 
subsequent to the filing of the quarterly report due February 1 of 
each year for the purpose of exchanging/reviewing all data 
pertaining to deliveries of HEU natural uranium component under 
these procedures.

D. Re-importation

    The Department will outline documentary requirements for re-
entry of HEU natural uranium component which has been exported from 
the United States for further processing and re-imported for 
consumption.

E. Enforcement

    If the Department finds that an agent has exceeded its delivery 
allocation and/or the annual maximum deliveries set forth in the 
Delivery Schedule, the Department will require USEC or the 
appropriate entity to withhold any further release of HEU natural 
uranium component from the agent's account, until the problem has 
been satisfactorily resolved among the Department, MINATOM, and the 
agent.
    In accordance with Section 3112(b)(9) of the USEC Privatization 
Act (42 USC 2297h-10(b)(9)), the Department reserves the right to 
require any other certifications, information, or take any other 
action necessary to enforce the annual maximum deliveries provided 
for therein.

F. Review of Procedures

    By September 1998, the Department will initiate a review of 
these procedures to ensure that its statutory obligations are being 
met. Comments by interested parties regarding necessary/desirable 
changes to these procedures will be solicited and fully considered. 
If the department determines that changes are warranted, new 
procedures will be implemented effective January 1, 1999.

Attachment 2--Procedures for Delivery of HEU Natural Uranium Component 
in the United States, Annex #1 Required Certifications

    On January 7, 1998, the Department of Commerce (the Department) 
issued the Procedures for Delivery of HEU Natural Uranium Component 
in the United States (the HEU Procedures), pursuant to the United 
States Enrichment Corporation Privatization Act (The USEC 
Privatization Act), 42 U.S.C. 2297h-10(b)(9). In order to further 
clarify certain requirements of the HEU Procedures, the Department 
will periodically issue supplemental statements. This annex sets 
forth certification language required under the HEU Procedures and 
includes two new certification requirements in items A and C. The 
certification stated in item A is required of all importers of 
uranium, regardless of origin. The certifications stated in item C 
must accompany all quarterly reports submitted to the Department in 
accordance with paragraph C of the HEU Procedures.

A. Importer Certifications

    The importer of record must certify the following to the United 
States Customs Service (and provide a copy of such certification to 
the Department):
    (Importer name) hereby certifies that the material being 
imported was not obtained under any arrangement, swap, exchange, or 
other transaction designed to circumvent the agreements with 
Kazakhstan, Kyrgyzstan, the Russian Federation and Uzbekistan, as 
amended, the antidumping duty order on Ukraine, or the delivery 
limitation set forth in Section 3112(b) of the USEC Privatization 
Act, 42 U.S.C. 2297h et seq., and the Procedures for Delivery of HEU 
Natural Uranium Component in the United States.

B. Contract Approval Certifications

    (Designated agent) certifies that the total annual deliveries 
under the contract between (seller) and (purchaser), contract number 
(insert #), and executed on (insert date), when added to annual 
delivery quantities of other contracts approved in accordance with 
the HEU Procedures for Delivery of HEU Natural Uranium Component in 
the United States, will not exceed the maximum annual delivery 
quantity allocated to (designated agent) by (MINATOM) for that given 
year, or the annual maximum delivery quantity established in Section 
3112(b)(5) of the USEC Privatization Act for the year in which 
deliveries under this contract will be made.
    (Designated agent) further certifies that the sale of the HEU 
Natural Uranium Component is solely for consumption and does not 
circumvent, directly or indirectly, the limitations set for in 
Section 3112(b) of the USEC Privatization Act or the Procedures for 
Delivery of HEU Natural Uranium Component in the United States.

C. Quarterly Report Certifications

    (Certifying party) certifies that it holds an HEU Natural 
Uranium Component account(s) at (state name of entity(ies)), and 
that all HEU Natural Uranium Component transferred from or into this 
(these) account(s) during calendar quarter (indicated dates) has 
been transferred in accordance with only the following: (1) an 
approved matched sale under 3112(b)(6) of the USEC Privatization Act 
and Section IV of the Agreement Suspending the Antidumping 
Investigation on Uranium from the Russian Federation, as amended, 
(2) for use in overfeeding in U.S. enrichment facilities pursuant to 
Section 3112(b)(7) of the USEC Act; (3) for delivery to a United 
States end-user for consumption, within the delivery limits of the 
USEC Privatization Act Section 3112(b)(5); (4) for export out of the 
United States; (5) for further processing on behalf of (name of 
entity); or (6) to another designated agent.

[[Page 36393]]

    (Certifying party) further certifies that none of the HEU 
Natural Uranium Component transferred from or into this (these) 
account(s) during calendar quarter (indicate dates) has been loaned, 
swapped, exchanged or used in any arrangement which directly or 
indirectly circumvents the limitations set forth in section 3112(b) 
of the USEC Privatization Act, the Agreement Suspending the 
Antidumping Investigation on Uranium from the Russian Federation, as 
amended, or the Procedures for Delivery of HEU Natural Uranium 
Component in the United States.

[FR Doc. 98-17787 Filed 7-2-98; 8:45 am]
BILLING CODE 3510-DS-P