[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: 94-7155]
[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 tetrahydrofuran and 1,4
butanediol 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 October 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 December 27,
1993. The petitioner is E. I. DuPont de Nemours and 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.
Tetrahyrofuran
HTS number: 2932.11.00.00
CAS number: 109-99-9
This substance is derived from the taxable chemicals methane and
acetylene. Tetrahyrofuran is a liquid produced predominantly by the
reaction of acetylene (derived from methane in natural gas) with
formaldehyde made by air oxidation and dehydrogenation of methanol
(derived from methane in natural gas) producing the intermediate
butynediol which is in turn reacted with hydrogen (derived from methane
in natural gas) to produce 1,4 butanediol. The 1,4 butanediol is ring
closed using an acid catalyst to produce tetrahydrofuran.
The stoichiometric material consumption formula for this substance
is:
C2H2 (acetylene) + 3 CH4 (methane) + 0.5 O2
(oxygen) + 2 H2O (water) C4H8O
(tetrahydrofuran) + 5 H2 (hydrogen) + CO2 (carbon dioxide)
According to the petition, taxable chemicals constitute 58.7 per
cent by weight of the materials used to produce this substance. The
rate of tax for this substance would be $5.28 per ton. This is based
upon a conversion factor for acetylene of 0.40 and a conversion factor
for methane of 0.97.
1,4 butanediol
HTS number: 2905.39.10.00
CAS number: 110-63-4
This substance is derived from the taxable chemicals methane and
acetylene. 1,4 butanediol is a liquid produced predominantly by the
reaction of acetylene (derived from methane in natural gas) with
formaldehyde made by air oxidation and dehydrogenation of methanol
(derived from methane in natural gas) producing the intermediate
butynediol which is in turn reacted with hydrogen (derived from methane
in natural gas) to produce 1,4 butanediol.
The stoichiometric material consumption formula for this substance
is:
3 CH4 (methane) + C2H2 (acetylene) + 3 H2O (water)
+ 0.5 O2 (oxygen) C4H10O2 (1,4
butanediol) + 5 H2 (hydrogen) + CO2 (carbon dioxide)
According to the petition, taxable chemicals constitute 51.3 per
cent by weight of the materials used to produce this substance. The
rate of tax for this substance would be $4.20 per ton. This is based
upon a conversion factor for methane of 0.77 and a conversion factor
for acetylene of 0.32.
Dale D. Goode,
Federal Register Liaison Officer, Assistant Chief Counsel (Corporate).
[FR Doc. 94-7155 Filed 3-25-94; 8:45 am]
BILLING CODE 4830-01-U
