[Federal Register Volume 59, Number 49 (Monday, March 14, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-5857]
[[Page Unknown]]
[Federal Register: March 14, 1994]
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DEPARTMENT OF THE TREASURY
Tax on Certain Imported Substances; Filing of Petition;
Glycerine, Etc.
AGENCY: Internal Revenue Service, Treasury.
ACTION: Notice.
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SUMMARY: This notice announces the acceptance, under notice 89-61,
1989-1 C.B. 717, of petitions requesting that glycerine and phenol be
added to the list of taxable substances in section 4672(a)(3) of the
Internal Revenue Code. Publication of this notice is in compliance with
notice 89-61. This is not a determination that the list of taxable
substances should be modified.
DATES: Written comments and requests for a public hearing relating to
these petitions must be received by May 13, 1994. Any modification of
the list of taxable substances based upon this petition would be
effective January 1, 1991.
ADDRESSES: Send comments and requests for a public hearing to: Internal
Revenue Service, P.O. Box 7604, Ben Franklin Station, Washington, DC
20044 (Attn: CC:DOM:CORP:T:R (Petition), room 5228).
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: The petition for glycerine was received on
February 21, 1990, and the petition for phenol was received on March 6,
1990. The petitioner is Dow Chemical Company, a manufacturer and
exporter of these substances. The following is a summary of the
information contained in the petitions. The complete petitions are
available in the Internal Revenue Service Freedom of Information
Reading Room.
Glycerine
HTS number: 1520.90.00.00
CAS number: 56-81-5
This substance is derived from the taxable chemicals propylene,
chlorine, and sodium hydroxide. Glycerine is a liquid produced
predominantly by the reaction of epichlorohydrin with an aqueous
caustic carbonate solution, followed by the removal of water, sodium
chloride, and other impurities by mechanical means, chemical
extraction, and distillation.
The stoichiometric material consumption formula for this substance
is:
C3H6 (propylene) + 2 Cl2 (chlorine) + 2 NaOH (sodium
hydroxide) + H2O (water) ----> C3H8O3 (glycerine) +
2 NaCl (sodium chloride) + 2 HCl (hydrogen chloride).
According to the petition, taxable chemicals constitute 93.5 per
cent by weight of the materials used to produce this substance. The
rate of tax for this substance would be $9.52 per ton. This is based
upon a conversion factor for propylene of 0.67, a conversion factor for
chlorine of 2.16, and a conversion factor for sodium hydroxide of 1.54.
Phenol
HTS number: 2907.11.00.00
CAS number: 108-95-2
This substance is derived from the taxable chemicals benzene and
propylene. Phenol is a solid produced predominantly based on cumene
peroxidation.
The stoichiometric material consumption formula for this substance
is:
C6H6 (benzene) + C3H6 (propylene) + O2
(oxygen) ----> C6H6O (phenol) + C3H6O (acetone)
According to the petition, taxable chemicals constitute 78.9 per
cent by weight of the materials used to produce this substance. The
rate of tax for this substance would be $6.33 per ton. This is based
upon a conversion factor for benzene of 0.9 and a conversion factor for
propylene of 0.4.
Dale D. Goode,
Federal Register Liaison Officer, Assistant Chief Counsel (Corporate).
[FR Doc. 94-5857 Filed 3-11-94; 8:45 am]
BILLING CODE 4830-01-U
