DEPARTMENT OF COMMERCE

International Trade Administration

[A-821-802]

Agreement Suspending the Antidumping Investigation on Uranium

From the Russian Federation

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

Department of Commerce

ACTION: Notice.

SUMMARY: The Department of Commerce is hereby notifying interested

parties of a change to the administration of matched sales. Effective

immediately, the Department will use a calendar year quota accounting

rather than the previously used delivery year quota accounting.

EFFECTIVE DATE: July 31, 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

Under the Amendment to the Agreement Suspending the Antidumping

Investigation on Uranium from the Russian Federation (57 FR

[[Page 40880]]

15373, April 1, 1994) (the ``Matched Sales'' Amendment), the Department

has been administering the matched uranium sales quota on a quota year

basis, April 1 through March 31, as listed in the ``Matched Sales''

Amendment. On March 6, 1998, the Department received a request from the

Nuclear Energy Institute (NEI) on behalf of certain of its members

requesting that the Department revise its practice and administer the

matched sales quota on a calendar year basis, January 1 through

December 31. (See letter from NEI to the Department on March 6, 1998,

on public record at the Department of Commerce in room B-099). In this

letter, NEI suggests that a calendar year quota system would make

tracking operational or contractual flexibilities for both buyers and

sellers of uranium more consistent with their other internal tracking

systems (i.e., budgeting, requests for quotes, deliveries). NEI states

that administration on a calendar year basis would make the matched

sales quota system more consistent with industry contracting practices,

thereby eliminating a potential barrier to participation in the matched

sales program. Further, NEI notes that reconciliation of historical

transactions which specified deliveries in 1996 and 1997 does not

affect the commercial balance among competing suppliers as marketing

opportunities have long passed.

On May 5, 1998, the Department requested comments from interested

parties (63 FR 24772). The Department received ten sets of comments

from affected companies and reviewed each set of comments. As all

comments received were supportive of the change, and as the

reallocation would not cause any quota limitations to be exceeded, the

Department has determined that it is reasonable to change the

administration of the matched sales quota from a quota year basis

(i.e., April 1-March 31) to a calendar year basis (i.e., January 1-

December 31).

The Department examined two ensuing issues: (1) The effect the

change will have on the existing approved contracts and allocations of

quota; and (2) the necessity to arrive at a proper accounting for the

periods April 1, 1996 through December 31, 1996 and January 1, 2004

through March 31, 2004.

Concerning the first issue, the Department has determined that

contracts already approved by the Department in quota years 1996-1997

(4/1/96-3/31/97; 4/1/97-3/31/98) will not be affected by the change to

a calendar year basis other than on the Department's accounting system.

Thus, these contracts stand as approved and deliveries may continue as

scheduled. Further, although the amount of used quota allocated to

these two periods will change under the new system, the overall totals

do not (See 63 FR 24772, May 5, 1997).

Concerning the second issue, the ``Matched Sales'' Amendment

details that delivery quotas began on April 1, 1996, and would expire

on March 31, 2004. By switching to a calendar year basis, neither the

period April 1, 1996, through December 31, 1996 nor the period January

1, 2004 through March 31, 2004, which were covered under the

Department's previous quota year methodology, can fall under a calendar

year methodology absent modification. To resolve this issue, NEI

proposed designating calendar year 1996 as a ``short'' quota year,

starting April 1, 1996 and ending December 31, 1996. As these contracts

have already been approved and as the Department has determined the

appropriate reconciliation in accounting, (See 63 FR 24772, May 5,

1997), the Department agrees that the designation of a ``short year'' a

suitable resolution. In addition, NEI proposed that calendar year 2003

be designated as a ``long'' quota year, beginning January 1, 2003 and

ending March 31, 2004. The Department agrees that it is reasonable to

designate calendar year 2003 as a ``long year'' without disruption to

the administration of matched sales.

Thus, effective immediately, the Department will use a calendar

year quota system in administering matched sales. The following chart

details the current effective time periods and applicable matched sales

quotas.

Available

quota 1

Calendar year (in lbs.

U308)

------------------------------------------------------------------------

1998....................................................... 3,600,000

1999....................................................... 4,040,000

2000....................................................... 4,230,000

2001....................................................... 4,040,000

2002....................................................... 4,890,000

2003 2................................................... 4,300,000

------------------------------------------------------------------------

1 Please note that some quota has already been allocated to previously

approved contracts. Please contact the listed Departmental personnel

for the exact available quota in each calendar year.

2 ``Long year'' dates (1/1/03-3/31/04)

Dated: July 27, 1998

Joseph A. Spetrini.

Deputy Assistant Secretary for Antidumping Countervailing Duty--Group

III.

[FR Doc. 98-20516 Filed 7-30-98; 8:45 am]