[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: 94-5859]
[[Page Unknown]]
[Federal Register: March 14, 1994]
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DEPARTMENT OF THE TREASURY
Tax on Certain Imported Substances; Notice of Determination;
Decabromodiphenyl Oxide, Etc.
AGENCY: Internal Revenue Service, Treasury.
ACTION: Notice.
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SUMMARY: This notice announces a determination, under notice 89-61,
that the list of taxable substances in section 4672(a)(3) of the
Internal Revenue Code will be modified to include decabromodiphenyl
oxide and tetrabromobisphenol-A.
EFFECTIVE DATE: This modification is effective July 1, 1990.
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) of the Internal Revenue Code, 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 July 9, 1991, the Secretary determined that decabromodiphenyl
oxide and tetrabromobisphenol-A should be added to the list of taxable
substances in section 4672(a)(3) of the Internal Revenue Code,
effective July 1, 1990.
The rate of tax prescribed for decabromodiphenyl oxide, under
section 4671(b)(3), is $7.41 per ton. This is based upon a conversion
factor for bromine of 1.666.
The rate of tax prescribed for tetrabromobisphenol-A, under section
4671(b)(3), is $5.22 per ton. This is based upon a conversion factor
for bromine of 1.175.
The petitioner is Ethyl Corporation, a manufacturer and exporter of
these substances. No material comments were received on these
petitions. The following information is the basis for the
determinations.
Decabromodiphenyl oxide
HTS number: 2909.30.07
CAS number: 1163-19-5
Decabromodiphenyl oxide is derived from the taxable chemical
bromine. Decabromodiphenyl oxide is a solid produced predominantly by
direct bromination of diphenyl oxide in the presence of a catalyst.
The stoichiometric material consumption formula for
decabromodiphenyl oxide is:
C12OH10 (diphenyl oxide) + 10 Br2 (bromine) ---->
C12OBr10 (decabromodiphenyl oxide) + 10 HBr (hydrogen
bromide).
Decabromodiphenyl oxide 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 90.3 percent by weight of the materials
used in its production.
Tetrabromobisphenol-A
HTS number: 2908.10.25
CAS number: 79-94-7
Tetrabromobisphenol-A is derived from the taxable chemical bromine.
Tetrabromobisphenol-A is a solid produced predominantly by the reaction
of bromine with bisphenol-A.
The stoichiometric material consumption formula for
tetrabromobisphenol-A is:
C15H16O2 (bisphenol-A) + 4 Br2 (bromine) ---->
C15H12O2Br4 (tetrabromobisphenol-A) + 4 HBr
(hydrogen bromide).
Tetrabromobisphenol-A 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 73.7 percent by weight of the materials used in
its production.
Dale D. Goode,
Federal Register Liaison Officer, Assistant Chief Counsel (Corporate).
[FR Doc. 94-5859 Filed 3-11-94; 8:45 am]
BILLING CODE 4830-01-U
