[Federal Register Volume 62, Number 44 (Thursday, March 6, 1997)]
[Notices]
[Page 10310]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-5554]
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DEPARTMENT OF THE TREASURY
Tax on Certain Imported Substances (Epoxy); Notice of
Determination
AGENCY: Internal Revenue Service (IRS), 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) will be
modified to include diglycidyl ether of bisphenol-A.
EFFECTIVE DATE: This modification is effective April 1, 1992.
FOR FURTHER INFORMATION CONTACT: Ruth Hoffman, 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 that substance should be
listed as a taxable substance. The Secretary shall add the 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 the 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 February 24, 1997, the Secretary determined that diglycidyl
ether of bisphenol-A should be added to the list of taxable substances
in section 4672(a)(3), effective April 1, 1992.
The rate of tax prescribed for diglycidyl ether of bisphenol-A ,
under section 4671(b)(3), is $7.08 per ton. This is based upon a
conversion factor for benzene of 0.459, a conversion factor for
propylene of 0.494, a conversion factor for chlorine of 0.833, and a
conversion factor for sodium hydroxide of 0.705.
The petitioner is Dow Chemical Company, 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: 3907.3
CAS number: 025085-99-8
Diglycidyl ether of bisphenol-A (DGEBA) is derived from the taxable
chemicals benzene, propylene, chlorine, and sodium hydroxide and
produced predominantly from epichlorohydrin and bisphenol-A via a two-
step reaction.
The stoichiometric material consumption formula for this substance
is:
2 C6H6 (benzene) + 4 C3H6 (propylene) + 4 Cl2
(chlorine) + 6 NaOH (sodium hydroxide) + 2 O2 (oxygen) ------>
(CH3)2C(C6H4OC3H50)2 (DGEBA) +
CH3COCH3 (acetone) + 2 HCl (hydrogen chloride) + 6 NaCl
(sodium chloride) + 5 H2O (water)
Diglycidyl ether of bisphenol-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 92.95 percent by weight of the materials
used in its production.
Dale D. Goode,
Federal Register Liaison Officer, Assistant Chief Counsel (Corporate).
[FR Doc. 97-5554 Filed 3-5-97; 8:45 am]
BILLING CODE 4830-01-U
