ML20207D923

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Informs Commission of Status of Proposed Rev to 10CFR110 Re Ban on Imports of U from South Africa
ML20207D923
Person / Time
Issue date: 11/13/1986
From: Stello V
NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO)
To:
Shared Package
ML20207B343 List:
References
FRN-51FR47207, RULE-PR-110, TASK-RINV, TASK-SE AC43-2-07, AC43-2-7, SECY-86-336, NUDOCS 8612310354
Download: ML20207D923 (2)


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i3ULEMAKING ISSUE (Notation Vote)

November 13, 1986 SECY-86-336 For: The Commissioners From: Victor Stello, Jr. ,

i Executive Director for Operations

Subject:

PROPOSED REVISION T0 10 CFR PART 110

Purpose:

To inform the Commission of the status of a prcoosed

revision te Part 110 concerning a ban on imports of uranium from South Africa.

I Discussion: In an October 7 " Daily Item", the staff infcrmed the

Commission regarding a proposed revisicn to NRC's import regulations to implement a section of the Comprehensive Anti-Apartheid Act of 1986 (the Act). Section 309(a) of the Act prohibits the import into the United States of uranium '

ore and uranium oxide that is produced or manufactured in

  • Seath Africa. Currently the NRC's import regulations in 10 CFP.110.27 permit a person to import byproduct material or unirradiated source or special nuclear material, including uranium ore and uranium oxide, from any country under
general license if the consignee in the United States is

. authorized to possess the material. To comply with the Act, 5110.27 must be revised to delete the general license with respect to import of uranium ore or uranium oxide from South Africa.

The proposed rule change is now being coordinated with the Executive Branch. It appears likely that the final rule (1) '

will prchibit only the import of uranium ore and uranium oxide from South Africa (i.e., the imoort of uranium hexafluoride or other non-oxide forms of uranium from South Africa will be allowed); (2) will aoply both to imports destined for ultimate use in he U.S. and to imoorts intended for further processing (e.g., enrichment) and lat f 6

i

Contact:

E. O. Hemby, IP %o-49-27984 l

The connission .

Discussion: reexport; (3) will not apply to South Africa'n uranium ore or

. (Continued) oxide that is "substantially) transformed" in a' third country before import into the U.S." Final Executive Branch coments on the draft rule are expected by the end of November. In accordance with the President's October 27 Executive Order implementing the Act, the Treasury Department has lead Executive Branch responsibility for that portion of the Act which addresses uranium imports (Section 309(a)).

The uranium import ban as well as several other areas in the i Act have received considerable public attention. There may be future Congressional proposals to modify the Act to either relax or fur,ther tighten its provisions. Likely proposed modifications to the uranium import ban section are to close the uranium hexafluoride " loophole" and, from the opposite perspective, to spEcifically exclude from the ban uranium imports intended for subsequent reexport. Urdil enacted into law through subsequent legislation, however, these proposals will not affect the scope ano timing of the -

rule change undergoing current review.

After final Executive Branch views are received on the proposed rule, the staff intends to i nicment the Act by the Congressional deadline of January 1, 1937. Unless significant interagency disagreements on the scope of the bill arise or the Commission requests otherwise, the staff will publish the proposed revision to Part 110 as a final rule without further Comission review.

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(Ef ecutive Direct r for Operations I The term "substantially transformed" is intended to apply to South African uranium ore and oxide that is subjected to further processing'ard increase in value in another country. For example, South African yellowcake (!J3n 0 ) which is (1) exported to France (2) converted to UF , (3) enriched, (4) canVerted into U09 fuel for light water reactors, and then (5) imported into the United States Qould not be subject to tne import ban even though imported in an oxide form. ,

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