95-9287. Tax on Certain Imported Substances (Ethyl Acetate); Notice of Determination

[Federal Register Volume 60, Number 72 (Friday, April 14, 1995)]
[Notices]
[Pages 19112-19113]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-9287]



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DEPARTMENT OF THE TREASURY

Tax on Certain Imported Substances (Ethyl Acetate); 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 ethyl acetate.

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), 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 
[[Page 19113]] 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 CB 717, sets forth the rules relating 
to the determination process.

Determination

    On March 31, 1995, the Secretary determined that ethyl acetate 
should be added to the list of taxable substances in section 
4672(a)(3), effective July 1, 1990.
    The rate of tax prescribed for ethyl acetate, under section 
4671(b)(3), is $4.39 per ton. This is based upon a conversion factor 
for butane of 0.9032.
    The petitioner is Hoechst Celanese, 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: 2915.31.00.00
CAS number: 141-78-6

    Ethyl acetate is derived from the taxable chemical butane. Ethyl 
acetate is a liquid produced predominantly by esterifying acetic acid 
with ethyl alcohol. The acetic acid and the ethyl alcohol are prepared 
as a co-product by the oxidation of butane.
    The stoichiometric material consumption formula for ethyl acetate 
is:

C4H10 (butane) + 1.5 O2 (oxygen) ----> 
C4H8O2 (ethyl acetate) + H2O (water)

    Ethyl acetate 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 54.7 percent by weight of the materials used in its 
production.
Dale D. Goode,
Federal Register Liaison Officer, Assistant Chief Counsel (Corporate).
[FR Doc. 95-9287 Filed 4-13-95; 8:45 am]
BILLING CODE 4830-01-U