[Federal Register Volume 59, Number 74 (Monday, April 18, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-9196]
[[Page Unknown]]
[Federal Register: April 18, 1994]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Tax on Certain Imported Substances; Filing of Petitions
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: This notice announces the acceptance, under Notice 89-61,
1989-1 C.B. 717, of petitions requesting that sodium nitriolotriacetate
monohydrate, diphenyl oxide, and tetrachlorophthalic anhydride 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 June 17, 1994. Any modification of
the list of taxable substances based upon these petitions would be
effective April 1, 1993.
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 30,
1992 (sodium nitriolotriacetate monohydrate), June 29, 1992 (diphenyl
oxide), and July 2, 1992 (tetrachlorophthalic anhydride). The
petitioner is Monsanto 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.
Sodium nitriolotriacetate monohydrate
HTS number: 2922.49.60.00
CAS number: 18662-53-8
This substance is derived from the taxable chemicals methane,
sodium hydroxide, propylene, and ammonia. Sodium nitriolotriacetate
monohydrate is a solid produced predominantly by the reaction of
formaldehyde with hydrogen cyanide in the presence of a catalyst, which
is then further reacted with sodium hydroxide to produce sodium
nitriolotriacetate monohydrate.
The stoichiometric material consumption formula for this substance
is: 3 CH4 (methane) + 3 NaOH (sodium hydroxide) + C3H6
(propylene) + NH3 (ammonia) + 4.5 O2 (oxygen) ---->
N(CH2COONa)3H2O (sodium nitriolotriacetate monohydrate)
+ 5 H2O (water) + 3 H2 (hydrogen).
According to the petition, taxable chemicals constitute 61.1
percent by weight of the materials used to produce this substance. The
rate of tax for this substance would be $2.45 per ton. This is based
upon a conversion factor for methane of 0.24, a conversion factor for
sodium hydroxide of 0.52, a conversion factor for propylene of 0.25,
and a conversion factor for ammonia of 0.10.
Diphenyl oxide
HTS number: 2909.30.00.00
CAS number: 101-84-8
This substance is derived from the taxable chemicals benzene and
propylene. Diphenyl oxide is a solid produced predominantly by the
catalytic condensation of phenol.
The stoichiometric material consumption formula for this substance
is: 2 C6H6 (benzene) + 2 C3H6 (propylene) + 2
O2 (oxygen) ----> C12H10O (diphenyl oxide) + 2
C3H6O (acetone) + H2O (water).
According to the petition, taxable chemicals constitute 78.9
percent by weight of the materials used to produce this substance. The
rate of tax for this substance would be $8.13 per ton. This is based
upon a conversion factor for benzene of 1.05 and a conversion factor
for propylene of 0.62.
Tetrachlorophthalic anhydride
HTS number: 2916.19.00.00
CAS number: 117-08-8
This substance is derived from the taxable chemicals chlorine and
xylene. Tetrachlorophthalic anhydride is a solid produced predominantly
by the high temperature reaction of phthalic anhydride with chlorine.
Phthalic anhydride is produced by the reaction of o-xylene with air in
the presence of a catalyst.
The stoichiometric material consumption formula for this substance
is: 4 Cl2 (chlorine) + C8H10 (xylene) + 3 O2
(oxygen) ----> C8Cl4O3 (tetrachlorophthalic anhydride) +
3 H2O (water) + 4 HCl (hydrogen chloride).
According to the petition, taxable chemicals constitute 80 percent
by weight of the materials used to produce this substance. The rate of
tax for this substance would be $5.87 per ton. This is based upon a
conversion factor for chlorine of 1.22 and a conversion factor for
xylene of 0.53.
Dale D. Goode,
Federal Register Liaison Officer, Assistant Chief Counsel (Corporate).
[FR Doc. 94-9196 Filed 4-15-94; 8:45 am]
BILLING CODE 4830-01-U
