94-7154. Tax on Certain Imported Substances; Filing of Petitions

[Federal Register Volume 59, Number 59 (Monday, March 28, 1994)]
[Unknown Section]
[Page ]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-7154]


[Federal Register: March 28, 1994]


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DEPARTMENT OF THE TREASURY

Tax on Certain Imported Substances; Filing of Petitions

AGENCY: Internal Revenue Service (IRS), 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 monochlorobenzene and 
ethyl chloride 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 27, 1994. Any modification of 
the list of taxable substances based upon these petitions would be 
effective April 1, 1994.

ADDRESSES: Send comments and requests for a public hearing to: 
CC:DOM:CORP:T:R (Petition), room 5228, Internal Revenue Service, POB 
7604, Ben Franklin Station, Washington, DC 20044.

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 petitions were received on April 5, 
1993. The petitioner is PPG Industries, Inc., 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.

Monochlorobenzene

HTS number: 2903.61.10.00
CAS number: 108-90-7

    This substance is derived from the taxable chemicals chlorine and 
benzene. Monochlorobenzene is a liquid produced predominantly by the 
direct chlorination of benzene.
    The stoichiometric material consumption formula for this substance 
is:

Cl2 (chlorine) + C6H6 (benzene)  
C6H5Cl (monochlorobenzene) + HCl (hydrogen chloride)

    According to the petition, taxable chemicals constitute 100 per 
cent by weight of the materials used to produce this substance. The 
rate of tax for this substance would be $3.80 per ton. This is based 
upon a conversion factor for chlorine of 0.1575 and a conversion factor 
for benzene of 0.6939.

Ethyl chloride

HTS number: 2903.11.00.20
CAS number: 75-00-3

    This substance is derived from the taxable chemicals chlorine and 
ethylene. Ethyl chloride is a gas produced predominantly by the 
hydrochlorination of ethylene.
    The stoichiometric material consumption formula for this substance 
is:

C2H4 (ethylene) + HCl (hydrochloric acid)  
C2H5Cl (ethyl chloride)

    According to the petition, taxable chemicals constitute 100 per 
cent by weight of the materials used to produce this substance. The 
rate of tax for this substance would be $2.30 per ton. This is based 
upon a conversion factor for ethylene of 0.4379 and a conversion factor 
for hydrochloric acid of 0.5621.
Dale D. Goode,
Federal Register Liaison Officer, Assistant Chief Counsel (Corporate).
[FR Doc. 94-7154 Filed 3-25-94; 8:45 am]
BILLING CODE 4830-01-U