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10986 Federal Register / Vol. 70, No.

43 / Monday, March 7, 2005 / Notices

DEPARTMENT OF COMMERCE petitioners.1 On March 26, 2004, the hexafluoride with a U235 assay of 20
Department initiated administrative percent or greater, also known as highly
International Trade Administration reviews of the CVD orders on low enriched uranium. In addition,
[(C–428–829); (C–421–809); (C–412–821)] enriched uranium from Germany, the fabricated LEU is not covered by the
Netherlands, and the United Kingdom. scope of these orders. For purposes of
Preliminary Results of Countervailing See Initiation of Antidumping and these orders, fabricated uranium is
Duty Administrative Reviews: Low Countervailing Duty Administrative defined as enriched uranium dioxide
Enriched Uranium From Germany, the Reviews and Requests for Revocation in (UO2), whether or not contained in
Netherlands, and the United Kingdom Part, 69 FR 15788 (March 26, 2004). nuclear fuel rods or assemblies. Natural
On April 13, 2004, the Department uranium concentrates (U3O8) with a U235
AGENCY: Import Administration, issued a questionnaire to the concentration of no greater than 0.711
International Trade Administration, Government of the United Kingdom percent and natural uranium
Department of Commerce. (UKG) and Urenco (Capenhurst) Ltd. concentrates converted into uranium
SUMMARY: The Department of Commerce (UCL), Urenco’s producer of subject hexafluoride with a U235 concentration
(the Department) is conducting merchandise in the United Kingdom. of no greater than 0.711 percent are not
administrative reviews of the Also on April 13, 2004, the Department covered by the scope of these orders.
countervailing duty (CVD) orders on issued a separate questionnaire to the Also excluded from these orders is
low enriched uranium from Germany, Government of the Netherlands (GON) LEU owned by a foreign utility end-user
the Netherlands, and the United and Urenco Nederland B.V. (UNL), and imported into the United States by
Kingdom for the period January 1, 2003, Urenco’s producer of subject or for such end-user solely for purposes
through December 31, 2003. For merchandise in the Netherlands. On of conversion by a U.S. fabricator into
information on the net subsidy for the April 16, 2004, the Department issued a uranium dioxide (UO2) and/or
reviewed companies, please see the questionnaire to the Government of fabrication into fuel assemblies so long
‘‘Preliminary Results of Reviews’’ Germany (GOG) and Urenco as the uranium dioxide and/or fuel
section of this notice. Interested parties Deutschland GmbH (UD), Urenco’s assemblies deemed to incorporate such
are invited to comment on these producer of subject merchandise in imported LEU (i) remain in the
preliminary results. (See the ‘‘Public Germany. possession and control of the U.S.
Comment’’ section of this notice). We received questionnaire responses fabricator, the foreign end-user, or their
EFFECTIVE DATE: March 7, 2005. from the GON, the UKG, UCL, and UNL designed transporter(s) while in U.S.
on May 20, 2004, from the GOG on May customs territory, and (ii) are re-
FOR FURTHER INFORMATION CONTACT:
14, 2004, and from UD on May 24, 2004. exported within eighteen (18) months of
Darla Brown or Robert Copyak at (202)
On October 19, 2004, we issued an entry of the LEU for consumption by the
482–2786, AD/CVD Operations, Office
extension of the due date for these end-user in a nuclear reactor outside the
3, Import Administration, International
preliminary results from October 31, United States. Such entries must be
Trade Administration, U.S. Department
2004, to February 28, 2005. See Low accompanied by the certifications of the
of Commerce, Room 4012, 14th Street
Enriched Uranium from France, importer and end-user.
and Constitution Avenue, NW., The merchandise subject to these
Washington, DC 20230. Germany, the Netherlands, and the
United Kingdom: Extension of orders is currently classifiable in the
SUPPLEMENTARY INFORMATION: Harmonized Tariff Schedule of the
Preliminary Results of Countervailing
Background Duty Administrative Reviews, 69 FR United States (HTSUS) at subheading
61470 (October 19, 2004) (Extension 2844.20.0020. Subject merchandise may
On February 13, 2002, the Department also enter under 2844.20.0030,
published in the Federal Register the Notice).
In accordance with 19 CFR 2844.20.0050, and 2844.40.00. Although
CVD orders on low enriched uranium the HTSUS subheadings are provided
351.213(b), these reviews cover only
from Germany, the Netherlands, and the for convenience and customs purposes,
those producers or exporters for which
United Kingdom. See Notice of the written description of the
a review was specifically requested. The
Amended Final Determinations and merchandise is dispositive.
companies subject to these reviews are
Notice of Countervailing Duty Orders:
UD, UNL, UCL, Urenco Ltd., and Period of Review
Low Enriched Uranium from Germany,
Urenco Inc. These reviews cover four
the Netherlands and the United The period of review (POR) for these
programs.
Kingdom, 67 FR 6688 (February 13, administrative reviews is January 1,
2002) (Amended Final). On February 3, Scope of the Order 2003, through December 31, 2003.
2004, the Department published a notice The product covered by these orders
of opportunity to request an International Consortium
is all low enriched uranium (LEU). LEU
administrative review of these CVD is enriched uranium hexafluoride (UF6) In our Notice of Final Affirmative
orders. See Antidumping or with a U235 product assay of less than Countervailing Duty Determinations:
Countervailing Duty Order, Finding, or 20 percent that has not been converted Low Enriched Uranium From Germany,
Suspended Investigation; Opportunity into another chemical form, such as the Netherlands, and the United
To Request Administrative Review, 69 UO2, or fabricated into nuclear fuel Kingdom, 66 FR 65903 (December 21,
FR 5125 (February 3, 2004). On assemblies, regardless of the means by 2001) (LEU Final) and accompanying
February 25, 2004, we received a timely which the LEU is produced (including Issues and Decision Memorandum (LEU
request for review from Urenco Ltd. LEU produced through the down- Decision Memo) at Comment 2:
(Urenco), the producer and exporter of blending of highly enriched uranium). International Consortium Provision, we
subject merchandise. We note that this Certain merchandise is outside the found that the Urenco Group operates as
request covered all subject merchandise scope of these orders. Specifically, these an international consortium within the
produced by Urenco in Germany, the orders do not cover enriched uranium meaning of section 701(d) of the Tariff
Netherlands, and the United Kingdom. Act of 1930, as amended (the Act). No
On February 26, 2004, we received a 1 Petitioners are the United States Enrichment new information or evidence of changed
timely request for review from Corporation (USEC) and USEC Inc. circumstances has been presented since

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Federal Register / Vol. 70, No. 43 / Monday, March 7, 2005 / Notices 10987

the LEU Final which would persuade us technologies and to fund the research of under the ‘‘Financing Agreement,’’ no
to reconsider this conclusion. Therefore, lasers and other advanced technologies. longer provided a benefit during those
we continue to find that the Urenco The grant disbursements under this reviews’’ POR, i.e., January 14, 2001,
Group of companies constitutes an program were made during the years through December 31, 2002. We also
international consortium. Accordingly, 1980 through 1993. determined that only the grant
we have continued to cumulate all Assistance under this program was disbursements made in 1992 and 1993
countervailable subsidies received by provided for in two agreements and two continued to provide benefits during the
the member companies from the GOG, sets of guidelines: the ‘‘Financing 2001–2002 POR. See Final Results of
the GON, and the UKG, pursuant to Agreement,’’ the ‘‘Operating Countervailing Duty Administrative
section 701(d) of the Act. Agreement,’’ the ‘‘Terms and Conditions Reviews: Low Enriched Uranium From
for Allocations on a Cost Basis to Germany, the Netherlands, and the
Subsidies Valuation Information Companies in Industry for Research and United Kingdom, 69 FR 40869 (July 7,
Allocation Period Development Projects’’ (BKFT75), and 2004) (2001–2002 LEU) and the
Under section 351.524(d)(2) of the the ‘‘Auxiliary Terms and Conditions accompanying Issues and Decision
Department’s regulations, we will for Grants on a Cost Basis from the Memorandum (2001–2002 LEU Decision
presume the allocation period for non- Federal Ministry for Research and Memo) at the ‘‘Analysis of Programs’’
recurring subsidies to be the average Development to Companies in Industry section.
useful life (AUL) of renewable physical for Research and Development Projects’’ In 2001–2002 LEU, we determined
assets for the industry concerned, as (NKFT88), respectively. According to that Urenco would not benefit from
listed in the Internal Revenue Service’s Article 4, Section 6, of the ‘‘Financing Enrichment Technology Research and
(IRS) 1977 Class Life Asset Depreciation Agreement,’’ the funds provided to Development Program subsidies from
Range System (IRS Tables), as updated Uranit under this agreement had the GOG after 2002 because the grants
by the Department of the Treasury. The contingent repayment obligations. The were fully allocated at the end of 2002.
presumption will apply unless a party funds were repayable within five years See 2001–2002 LEU Decision Memo at
claims and establishes that these tables of disbursement, contingent upon the Comment 3: Cash Deposit Rate for
do not reasonably reflect the AUL of the company’s earnings. If the funds were Future Urenco Imports.
renewable physical assets for the not repaid within five years, then the Because the grant disbursements
company or industry under repayment obligation lapsed. The funds under this program were made between
investigation, and the party can provided under the ‘‘Operating 1980 and 1993, the 10-year allocation
establish that the difference between the Agreement’’ were not repayable. Uranit period for each grant disbursement
company-specific or country-wide AUL also received funds for laser R&D expired prior to the POR. Therefore, we
for the industry under investigation is pursuant to the terms and conditions of preliminarily determine that each of
significant. In this instance, however, the BKFT75 and NKFT88. these grants has been fully allocated
In the LEU Final, we determined that prior to the POR, and, therefore, no
the IRS Tables do not provide a specific
the assistance provided under this benefit was received under this program
asset guideline class for the uranium
program constitutes countervailable during the POR.
enrichment industry.
In the LEU Final, we derived an AUL subsidies within the meaning of section
771(5) of the Act. Specifically, we found 2. Forgiveness of Centrifuge Enrichment
of 10 years for the Urenco Group (see Capacity Subsidies
LEU Decision Memo at Comment 3: that the grant disbursements constitute
a financial contribution and confer a In accordance with the ‘‘Risk Sharing
Average Useful Life). The AUL issue is
benefit, as described in sections Agreement’’ (RSA) and the ‘‘Profit
currently subject to litigation related to
771(5)(B) and 771(5)(D)(i) of the Act. We Sharing Agreement’’ (PSA) signed
the investigation. Because there has
further found that this program is between the GOG and Uranit, the GOG
been no final and conclusive court
specific under section 771(5A)(D)(i) of agreed to provide funds to UD to
decision changing the AUL, and no new
the Act because the provision of support the promotion of an uranium
information or evidence of changed
assistance under this program was enrichment industry. These two
circumstances has been submitted, for
limited to one company. In addition, we agreements were signed on July 18,
these reviews, we continue to apply the
found that the program provided non- 1975, and the GOG provided a total of
10-year AUL that was calculated in the
recurring benefits under section DM 338.3 million from 1975 to 1993 to
LEU Final. 351.524(c)(2) of the Department’s Uranit in support of the Treaty of
Programs Preliminarily Determined Not regulations because the assistance was Almelo’s goal of creating and promoting
To Confer a Benefit From the made pursuant to specific government the enrichment industry.2 Under the
Government of Germany agreements and was not provided under terms of the agreements, repayment of
a program that would provide assistance the funds was conditional and based
1. Enrichment Technology Research and on an ongoing basis from year to year.
Development Program upon the financial performance of the
See LEU Decision Memo at the company. However, in no case was the
In the LEU Final, we determined that, ‘‘Enrichment Technology Research and amount of the total repayments to
under this program, the GOG promoted Development Program’’ section. No new exceed twice the amount of the funds
the research and development (R&D) of information or evidence of changed provided to UD by the GOG.
uranium enrichment technologies. The circumstances has been presented to In 1987, Uranit signed a new
Federal Ministry for Research and warrant reconsideration of this agreement with the GOG. This
Technology provided determination; therefore, for these
Uranitisotopentrennungsgeselleschaft preliminary results, we continue to 2 In March 1970, the GOG, the GON, and the UKG
mbH (Uranit) (the privately-held determine that this program is signed the Treaty of Amelo, which became effective
German arm of the Urenco Group) a countervailable. in July 1971. The purpose of the treaty was for the
series of grant disbursements for the In the first administrative reviews, we three governments to collaborate in the
development and exploitation of the gas centrifuge
funding of R&D projects. The funds determined that grant disbursements process for producing enriched uranium. Prior to
were provided to encourage continuous made under this program prior to 1992, 1971, the centrifuge R&D programs in each country
improvements of centrifuge including the 1985 disbursement made were independent.

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10988 Federal Register / Vol. 70, No. 43 / Monday, March 7, 2005 / Notices

‘‘Adjustment Agreement’’ stipulated In 2001–2002 LEU, we determined preliminarily determine that the total
that Uranit would repay the GOG for the that Urenco would not benefit from estimated net countervailable subsidy
DM 333.8 million in centrifuge capacity Forgiveness of Centrifuge Enrichment rate is 0.00 percent ad valorem.
assistance and an additional agreed- Capacity subsidies from the GOG after If the final results of these reviews
upon DM 31.7 million which was not 2002 because the grants were fully remain the same as these preliminary
related to the centrifuge subsidies. Prior allocated at the end of 2002. See 2001– results, the Department intends to
to the 1993 merger of the Urenco Group, 2002 LEU Decision Memo at Comment instruct U.S. Customs and Border
the GOG and Uranit negotiated a basis 3: Cash Deposit Rate for Future Urenco Protection (CBP), within 15 days of
to terminate the repayment obligations Imports. Therefore, we preliminarily publication of the final results of these
of the RSA and the PSA. Based upon determine that the grant has been fully reviews, to liquidate without regard to
these negotiations, a ‘‘Termination allocated prior to the POR, and, countervailing duties all shipments of
Agreement’’ was signed on July 13, therefore, no benefit was received under subject merchandise from the
1993, and amended on October 27, this program during the POR. producers/exporters under review,
1993. Prior to the Termination entered, or withdrawn from warehouse,
Programs Preliminarily Determined To for consumption during the POR.
Agreement, Uranit had made Be Not Used From the Government of
repayments totaling DM 5.6 million. Should the final results of these reviews
the Netherlands remain the same as these preliminary
Under the terms of the Termination
Agreement, Uranit was to pay the GOG 1. Wet Investeringsrekening Law (WIR) results, the Department also will
DM 101.1 million, thus terminating the In the LEU Final, we found that the instruct CBP not to collect cash deposits
repayment obligations stipulated in the WIR program was not used. In the of estimated countervailing duties on all
Adjustment Agreement. Uranit made instant administrative reviews, we shipments of the subject merchandise
this DM 101.1 million payment on July asked UNL if it received or used benefits from the reviewed entity, entered, or
1, 1994. under this program during the POR. withdrawn from warehouse, for
In the LEU Final, we determined this UNL responded that it did not apply for, consumption on or after the date of
program to be countervailable. We use, or receive benefits from the WIR publication of the final results of these
found that assistance provided under program during the POR. Furthermore, reviews.
Because the Uruguay Round
this program to Uranit was specific UNL reported that the WIR program
Agreements Act (URAA) replaced the
under section 771(5A)(D)(i) of the Act ended in 1988 and investment credits
general rule in favor of a country-wide
because the program was limited to one could only be claimed through the 1989
rate with a general rule in favor of
company. In addition, we determined tax year. Therefore, we preliminarily
individual rates for investigated and
that a financial contribution was find that the WIR was not used during
reviewed companies, the procedures for
provided under section 771(5)(D)(i) of the POR.
establishing countervailing duty rates,
the Act. We also determined that a 2. Regional Investment Premium including those for non-reviewed
benefit was provided to the company, companies, are now essentially the same
within the meaning of section 771(5)(E) In the Amended Final, we found that,
after correcting for a ministerial error in as those in antidumping cases, except as
of the Act to the extent that the provided for in section 777A(e)(2)(B) of
repayments made to the GOG were less the LEU Final, the subsidy from the
Regional Investment Program (IPR) was the Act. The requested review will
than the amount of assistance provided normally cover only those companies
to the company under this program. See less than 0.5 percent of the Urenco
Group’s combined sales and, in specifically named. See 19 CFR
LEU Decision Memo at the ‘‘Forgiveness 351.213(b). Pursuant to 19 CFR
of Centrifuge Enrichment Capacity accordance with 19 CFR 351.524(b)(2),
was allocable to the year of receipt 351.212(c), for all companies for which
Subsidies’’ section. No new information a review was not requested, duties must
or evidence of changed circumstances (1985). As a result of this revision, the
net subsidy for this program decreased be assessed at the cash deposit rate, and
has been presented to warrant cash deposits must continue to be
reconsideration of this determination; from 0.03 percent ad valorem to 0.00
percent ad valorem. See Amended collected, at the rate previously ordered.
therefore, for these preliminary results, As such, the countervailing duty cash
we continue to determine that this Final, 67 FR 6688. Moreover, in the
instant reviews, UNL reported that it deposit rate applicable to a company
program is countervailable. can no longer change, except pursuant
did not apply for nor did it use the IPR
In the LEU Final, we determined that to a request for a review of that
program during the POR. Therefore, we
this program provided a grant under 19 preliminarily determine that UNL did company. See Federal-Mogul
CFR 351.505(d)(2) because there was a not use the IPR program during the Corporation and The Torrington
waiver of a contingent liability. We POR. Company v. United States, 822 F. Supp.
determined the adjusted grant amount 782 (CIT 1993), and Floral Trade
to be equal to the difference between the Programs From the Government of the Council v. United States, 822 F. Supp.
original amount of centrifuge subsidies United Kingdom 766 (CIT 1993) (interpreting 19 CFR
(DM 338.3 million) and the total amount We preliminarily determine that UCL 353.22(e), the old antidumping
of repayment attributable to those neither received any subsidies nor regulation on automatic assessment,
centrifuge subsidies (DM 97.556 benefitted from any subsides during the which is identical to the current
million), which we calculated to be DM POR. regulation, 19 CFR 351.212(c)(1)(ii)).
240.744 million. We also determined Therefore, the cash deposit rates for all
that the first year of allocation was 1993, Preliminary Results of Reviews companies except those covered by
the year in which the repayment In accordance with 19 CFR these reviews will be unchanged by the
obligation stipulated in the Adjustment 351.221(b)(4)(i), we calculated an results of these reviews.
Agreement was waived. No new individual subsidy rate for UD, UNL, We will instruct CBP to continue to
information or evidence of changed UCL, Urenco Ltd., and Urenco Inc, the collect cash deposits for non-reviewed
circumstances has been presented to only producers/exporters subject to companies at the most recent company-
warrant reconsideration of this these administrative reviews, for the specific or country-wide rate applicable
determination. POR, i.e., calendar year 2003. We to the company. Accordingly, the cash

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Federal Register / Vol. 70, No. 43 / Monday, March 7, 2005 / Notices 10989

deposit rate that will be applied to a Dated: February 28, 2005. by both respondents and petitioners.1
non-reviewed company covered by Joseph A. Spetrini, On March 26, 2004, the Department
these orders will be the rate for that Acting Assistant Secretary for Import published the initiation of the
company established in the most Administration. administrative review of the
recently completed administrative [FR Doc. E5–926 Filed 3–4–05; 8:45 am] countervailing duty order on low
proceeding. See Amended Final, 67 FR BILLING CODE 3510–DS–P enriched uranium from France, covering
6688. These cash deposit rates shall the January 1, 2003, through December
apply to all non-reviewed companies 31, 2003 period of review (POR). See
until a review of a company assigned DEPARTMENT OF COMMERCE Initiation of Antidumping and
these rates is requested. Countervailing Duty Administrative
International Trade Administration Reviews and Revocation in Part, 68 FR
Public Comment
[C–427–819] 15788 (March 26, 2004).
Pursuant to 19 CFR 351.224(b), the On April 21, 2004, the Department
Department will disclose to parties to Preliminary Results of Countervailing issued a questionnaire to the
the proceeding any calculations Duty Administrative Review: Low Government of France (GOF) and
performed in connection with these Enriched Uranium From France Eurodif/COGEMA. On June 1, 2004, the
preliminary results within five days Department received questionnaire
after the date of the public AGENCY: Import Administration, responses from the GOF and Eurodif/
announcement of this notice. Pursuant International Trade Administration, COGEMA. On October 19, 2004, the
to 19 CFR 351.309, interested parties Department of Commerce. Department published in the Federal
may submit written comments in SUMMARY: The Department of Commerce Register an extension of the deadline for
response to these preliminary results. (the Department) is conducting an the preliminary results. See Low
Unless otherwise indicated by the administrative review of the Enriched Uranium From France,
Department, case briefs must be countervailing duty order on low Germany, the Netherlands, and the
submitted within 30 days after the enriched uranium from France for the United Kingdom: Extension of Time
publication of these preliminary results. period January 1, 2003, through Limit for Preliminary Results of
Rebuttal briefs, which are limited to December 31, 2003. For information on Countervailing Duty Administrative
arguments raised in case briefs, must be the net subsidy for the reviewed Reviews, 69 FR 61470 (October 19,
submitted no later than five days after company, please see the ‘‘Preliminary 2004). On October 4, 2004, and January
the time limit for filing case briefs, Results of Review’’ section of this 13, 2005, we issued supplemental
unless otherwise specified by the notice. Interested parties are invited to questionnaires to respondents. On
Department. Parties who submit comment on these preliminary results. November 1, 2004, and January 28,
argument in this proceeding are (See the ‘‘Public Comment’’ section of 2005, we received supplemental
requested to submit with the argument: this notice). responses from respondents.
(1) A statement of the issue, and (2) a In accordance with 19 CFR
EFFECTIVE DATE: March 7, 2005.
brief summary of the argument. Parties 351.213(b), this review covers only
submitting case and/or rebuttal briefs FOR FURTHER INFORMATION CONTACT:
Kristen Johnson at (202) 482–4793, AD/ those producers or exporters for which
are requested to provide the Department a review was specifically requested. The
copies of the public version on disk. CVD Operations, Office 3, Import
Administration, International Trade company subject to this review is
Case and rebuttal briefs must be served Eurodif/COGEMA. This review covers
on interested parties in accordance with Administration, U.S. Department of
Commerce, Room 4014, 14th Street and two programs.
19 CFR 351.303(f). Also, pursuant to 19
CFR 351.310, within 30 days of the date Constitution Avenue, NW., Washington, Scope of Order
of publication of this notice, interested DC 20230. The product covered by this order is
parties may request a public hearing on SUPPLEMENTARY INFORMATION: all low enriched uranium (LEU). LEU is
arguments to be raised in the case and Background enriched uranium hexafluoride (UF6)
rebuttal briefs. Unless the Secretary with a U235 product assay of less than
specifies otherwise, the hearing, if On February 13, 2002, the Department 20 percent that has not been converted
requested, will be held two days after published in the Federal Register the into another chemical form, such as
the date for submission of rebuttal countervailing duty order on low UO2, or fabricated into nuclear fuel
briefs. enriched uranium from France. See assemblies, regardless of the means by
Representatives of parties to the Amended Final Determination and which the LEU is produced (including
proceeding may request disclosure of Notice of Countervailing Duty Order: LEU produced through the down-
proprietary information under Low Enriched Uranium from France, 67 blending of highly enriched uranium).
administrative protective order no later FR 6689 (February 13, 2002) (Amended Certain merchandise is outside the
than 10 days after the representative’s LEU Final Determination). On February scope of this order. Specifically, this
client or employer becomes a party to 3, 2004, the Department published an order does not cover enriched uranium
the proceeding, but in no event later opportunity to request an administrative hexafluoride with a U235 assay of 20
than the date the case briefs, under 19 review of this countervailing duty order. percent or greater, also known as highly
CFR 351.309(c)(ii), are due. The See Antidumping or Countervailing enriched uranium. In addition,
Department will publish the final Duty Order, Finding, or Suspended fabricated LEU is not covered by the
results of these administrative reviews, Investigation: Opportunity to Request an scope of this order. For purposes of this
including the results of its analysis of Administrative Review, 69 FR 5125 order, fabricated uranium is defined as
issues raised in any case or rebuttal brief (February 3, 2004). We received a timely enriched uranium dioxide (UO2),
or at a hearing. request for review of Eurodif S.A. whether or not contained in nuclear fuel
These administrative reviews and this (Eurodif)/Compagnie Generale Des rods or assemblies. Natural uranium
notice are issued and published in Matieres Nucleaires (COGEMA), the
accordance with sections 751(a)(1) and producer/exporter of subject 1 Petitioners are USEC Inc. and its wholly owned

777(i)(1) of the Act. merchandise covered under this review subsidiary, United States Enrichment Corporation.

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