Supreme Court to Rule on Uranium AD Case During Fall Term
The Supreme Court will hear the case on whether antidumping duties can be imposed on a French supplier of low-enriched uranium (LEU) during its October 2008 term.
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(As part of the subject case (Eurodif1), the Court of International Trade ruled, and the Court of Appeals for the Federal Circuit agreed, that LEU produced abroad and imported into the U.S. is exempt from the AD law if it is imported pursuant to a separative work unit (SWU) contract.
The CAFC found that there is, in fact, no transfer of ownership of the LEU, from Eurodif to the U.S. utilities, but only a transfer of the "service" of enrichment.)
Case Has Implications for Russian Suspension Agreement, Viability of AD Law
According to the March 2008 testimony of Assistant Commerce Secretary Spooner, the CAFC's Eurodif decision undermines the recently amended Uranium AD Suspension Agreement on LEU with Russia.
The Eurodif decision also threatens the viability of AD duty law, as the production of virtually all merchandise involves processing that could be contracted for separately, as a service, in the same manner as SWU contracts. (The Commerce Department filed a petition for a writ or certiorari with the Supreme Court, asking it to review the CAFC's Eurodif decision.)
(See ITT's Online Archives or 03/31/08 news, 08033130, for BP summary of Assistant Secretary Spooner's testimony.)
1In its decision to hear arguments on this matter, the Supreme Court has consolidated the cases U.S. v. Eurodif S.A., et al. and USEC Inc., et al. v. Eurodif S.A., et al.
Supreme Court certification to hear U.S. v. Eurodif S.A., et al. (granted 04/21/08) available at http://www.supremecourtus.gov/qp/07-01059qp.pdf
Supreme Court certification to hear USEC, Inc., et al. v. Eurodif S.A., et al. (granted 04/21/08) available at http://www.supremecourtus.gov/qp/07-01078qp.pdf
ITA press release on Supreme Court decision (dated 04/22/08) available at http://www.trade.gov/press/press_releases/2008/uranium_042208.asp