[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