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FOR IMMEDIATE RELEASE
January 26, 2009
USEC Welcomes Supreme Court Decision
BETHESDA, Md. - USEC Inc. (NYSE:USU) today applauded a unanimous decision by the U.S. Supreme Court that imports of low enriched uranium (LEU) under enrichment services (or SWU) contracts are subject to U.S. trade law.
"Today's decision is an important step in supporting the continued health of the U.S. nuclear fuel industry," said John K. Welch, USEC president and chief executive officer.
In 2001, the U.S. Department of Commerce determined that French enricher Eurodif S.A. had dumped LEU into the United States, and in 2002 the department issued an order imposing duties on French imports to offset the dumping. In March 2005, the U.S. Court of Appeals for the Federal Circuit (Federal Circuit) significantly limited the scope of the Commerce Department's dumping duty order, by ruling that LEU sold under SWU contracts constituted the sale of a service, not merchandise, and therefore was not covered by U.S. antidumping laws.
Both the U.S. government and USEC sought reversal of the Federal Circuit decision. The Solicitor General's appeal to the Supreme Court was supported by the Departments of Commerce, Energy, State and Defense. The Supreme Court's decision reverses the Federal Circuit's ruling and gives the Commerce Department the ability to enforce its dumping finding against all LEU imports, regardless of the type of contract involved.
"Today, the U.S. Supreme Court unanimously ruled in favor of effective U.S. trade laws by holding that the U.S. antidumping law applies to all dumped imports of LEU," said Peter B. Saba, USEC general counsel. "By reversing a lower court ruling that would have excluded a large number of dumped imports based solely on the type of contract under which the LEU was sold, the Supreme Court leveled the playing field for domestic producers and their workers competing against these unfairly priced imports."
The decision closes a potential gap in U.S. law that would have allowed unfairly priced imports to undermine the domestic uranium enrichment industry at a time when it is expected to play a vital role in the U.S. nuclear renaissance. The decision will not affect imports of fairly priced imports, but will ensure that dumped imports do not jeopardize the success of USEC's American Centrifuge Plant under construction in Piketon, Ohio, and other new enrichment projects now underway or planned in the United States.
In a unanimous opinion written by Justice David Souter, the Supreme Court held that the Commerce Department's determination that SWU transactions constitute sales of goods covered by the antidumping laws was reasonable and was "reinforced by practical reasons aimed at preserving the effectiveness of antidumping duties."
Saba thanked the U.S. government for their work on the case saying, "We appreciate the strong support on this case from the U.S. government."
USEC Inc., a global energy company, is a leading supplier of enriched uranium fuel for commercial nuclear power plants.
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CONTACT:
Media: Elizabeth Stuckle (301) 564-3399
Jeff Donald (301) 564-3418
Investors: Steven Wingfield (301) 564-3354
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