94-25084. Tax on Certain Imported Substances (Phosphorous Trichloride, et al.); Notice of Determinations  

  • [Federal Register Volume 59, Number 196 (Wednesday, October 12, 1994)]
    [Unknown Section]
    [Page 0]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 94-25084]
    
    
    [[Page Unknown]]
    
    [Federal Register: October 12, 1994]
    
    
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    DEPARTMENT OF THE TREASURY
     
    
    Tax on Certain Imported Substances (Phosphorous Trichloride, et 
    al.); Notice of Determinations
    
    AGENCY: Internal Revenue Service (IRS), Treasury.
    
    ACTION: Notice.
    
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    SUMMARY: This notice announces determinations, under Notice 89-61, that 
    the list of taxable substances in section 4672(a)(3) will be modified 
    to include phosphorous trichloride and phosphorous pentasulfide.
    
    EFFECTIVE DATE: This modification is effective January 1, 1995.
    
    FOR FURTHER INFORMATION CONTACT: Tyrone J. Montague, Office of 
    Assistant Chief Counsel (Passthroughs and Special Industries), (202) 
    622-3130 (not a toll-free number).
    
    SUPPLEMENTARY INFORMATION:
    
    Background
    
        Under section 4672(a), an importer or exporter of any substance may 
    request that the Secretary determine whether such substance should be 
    listed as a taxable substance. The Secretary shall add such substance 
    to the list of taxable substances in section 4672(a)(3) if the 
    Secretary determines that taxable chemicals constitute more than 50 
    percent of the weight, or more than 50 percent of the value, of the 
    materials used to produce such substance. This determination is to be 
    made on the basis of the predominant method of production. Notice 89-
    61, 1989-1 C.B. 717, sets forth the rules relating to the determination 
    process.
    
    Determination
    
        On September 29, 1994, the Secretary determined that phosphorous 
    trichloride and phosphorous pentasulfide should be added to the list of 
    taxable substances in section 4672(a)(3), effective January 1, 1995. 
    The rate of tax prescribed for phosphorous trichloride, under section 
    4671(b)(3), is $3.10 per ton. This is based upon a conversion factor 
    for phosphorous of 0.23 and a conversion factor for chlorine of 0.77.
        The rate of tax prescribed for phosphorous pentasulfide, under 
    section 4671(b)(3), is $1.24 per ton. This is based upon a conversion 
    factor for phosphorous of 0.28. The petitioner is Monsanto Company, a 
    manufacturer and exporter of these substances. No material comments 
    were received on these petitions. The following information is the 
    basis for the determinations.
    
    Phosphorous Trichloride
    
    HTS number: 2812.10.50.10
    CAS number: 7719-12-2
    
        Phosphorous trichloride is derived from the taxable chemicals 
    phosphorous and chlorine. Phosphorous trichloride is a liquid produced 
    predominantly by the direct union of phosphorous and chlorine.
        The stoichiometric material consumption formula for phosphorous 
    trichloride is:
    
    P4 (phosphorous) + 6 Cl2 (chlorine) -----> 4 PCl3 
    (phosphorous trichloride)
    
        Phosphorous trichloride has been determined to be a taxable 
    substance because a review of its stoichiometric material consumption 
    formula shows that, based on the predominant method of production, 
    taxable chemicals constitute 100 percent by weight of the materials 
    used in its production.
    
    Phosphorous Pentasulfide
    
    HTS number: 2813.90.20.00
    CAS number: 1314-80-3
        Phosphorous pentasulfide is derived from the taxable chemical 
    phosphorous. Phosphorous pentasulfide is a solid produced predominantly 
    by mixing molten phosphorous with molten sulfur.
        The stoichiometric material consumption formula for phosphorous 
    pentasulfide is:
    
    P4 (phosphorous) + 10 S (sulfur) -----> 2 P2S5 
    (phosphorous pentasulfide)
    
        Phosphorous pentasulfide has been determined to be a taxable 
    substance because a review of its stoichiometric material consumption 
    formula shows that, based on the predominant method of production, 
    taxable chemicals constitute 94.6 percent by value of the materials 
    used in its production. The stated cost for phosphorous is $0.91 per 
    pound and the stated cost for sulfur is $0.02 per pound.
    Dale D. Goode,
    Federal Register Liaison Officer, Assistant Chief Counsel (Corporate).
    [FR Doc. 94-25084 Filed 10-11-94; 8:45 am]
    BILLING CODE 4830-01-U
    
    
    

Document Information

Effective Date:
1/1/1995
Published:
10/12/1994
Department:
Treasury Department
Entry Type:
Uncategorized Document
Action:
Notice.
Document Number:
94-25084
Dates:
This modification is effective January 1, 1995.
Pages:
0-0 (1 pages)
Docket Numbers:
Federal Register: October 12, 1994