[Federal Register Volume 59, Number 197 (Thursday, October 13, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-25248]
[[Page Unknown]]
[Federal Register: October 13, 1994]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Internal Revenue Service
Tax on Certain Imported Substances (Dimethyl-2,6-Naphthalene
Dicarboxylate); Notice of Determination
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: This notice announces a determination, under Notice 89-61,
that the list of taxable substances in section 4672(a)(3) will be
modified to include dimethyl-2,6-naphthalene dicarboxylate.
EFFECTIVE DATE: This modification is effective April 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 October 5, 1994, the Secretary determined that dimethyl-2,6-
naphthalene dicarboxylate should be added to the list of taxable
substances in section 4672(a)(3), effective April 1, 1995.
The rate of tax prescribed for dimethyl-2,6-naphthalene
dicarboxylate, under section 4671(b)(3), is $5.97 per ton. This is
based upon a conversion factor for xylene of 0.690, a conversion factor
for butadiene of 0.390, and a conversion factor for methane of 0.208.
The petitioner is Amoco Corporation, a manufacturer and exporter of
this substance. No material comments were received on this petition.
The following information is the basis for the determination.
HTS number: 2917.39.50
CAS number: 840-65-3
Dimethyl-2,6-naphthalene dicarboxylate is derived from the taxable
chemicals xylene, butadiene, and methane. Dimethyl-2,6-naphthalene
dicarboxylate is a solid produced predominantly by esterification of
naphthalene dicarboxylic acid (2,6-NDA). 2,6-NDA is made by air
oxidation of dimethyl naphthalene (2,6-DMN). 2,6-DMN is prepared via
the alkenylation of orthoxylene acid butadiene.
The stoichiometric material consumption formula for dimethyl-2,6-
naphthalene dicarboxylate is:
C8H10 (xylene) + C4H6 (butadiene) + 2 CH4
(methane) + 4 O2 (oxygen) >> C14H12O4 (dimethyl-
2,6-naphthalene dicarboxylate) + 2 H2 (hydrogen) + 4 H20
(water)
Dimethyl-2,6-naphthalene dicarboxylate 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 60 percent by weight of the
materials used in its production.
Dale D. Goode,
Federal Register Liaison Officer, Assistant Chief Counsel (Corporate).
[FR Doc. 94-25248 Filed 10-12-94; 8:45 am]
BILLING CODE 4830-01-U
