95-12765. Tax on Certain Imported Substances (Polybutylene, et. al); Notice of Determinations  

  • [Federal Register Volume 60, Number 100 (Wednesday, May 24, 1995)]
    [Notices]
    [Page 27594]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 95-12765]
    
    
    
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    DEPARTMENT OF THE TREASURY
    
    Internal Revenue Service
    
    
    Tax on Certain Imported Substances (Polybutylene, et. al); Notice 
    of Determinations
    
    AGENCY: Internal Revenue Service (IRS), Treasury.
    
    ACTION: Notice.
    
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    SUMMARY: This notice announces determinations, under Notice 89-61, that 
    the list of taxable substances in section 4672(a)(3) will be modified 
    to include polybutylene and polybutylene/ethylene.
    
    EFFECTIVE DATE: This modification is effective July 1, 1990.
    
    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 the 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 May 16, 1995, the Secretary determined that polybutylene and 
    polybutylene/ethylene should be added to the list of taxable substances 
    in section 4672(a)(3), effective July 1, 1990.
        The rate of tax prescribed for polybutylene, under section 
    4671(b)(3), is $4.70 per ton. This is based upon a conversion factor 
    for butylene of 0.966.
        The rate of tax prescribed for polybutylene/ethylene, under section 
    4671(b)(3), is $4.86 per ton. This is based upon a combined conversion 
    factor for butylene and ethylene of 0.999.
        The petitioner is Pecten Chemicals, a manufacturer and exporter of 
    these substances. No material comments were received on these 
    petitions. The following information is the basis for the 
    determinations.
    
    Polybutylene
    
    HTS number: 3902.90.00.10
    CAS number: 25036-29-7
    
        Polybutylene is derived from the taxable chemical butylene. 
    Polybutylene is a solid produced predominantly by the Zeigler-Nata 
    Catalyzed, Bulk, Polymerization Process.
        The stoichiometric material consumption formula for polybutylene 
    is:
    n (C4H8) (butylene) ----> (C4H8)n 
    (polybutylene)
    
        Polybutylene 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 100 percent by weight of the materials used in its 
    production.
    
    Polybutylene/Ethylene
    
    HTS number: 3902.90.00.10
    CAS number: 54570-68-2
    
        Polybutylene/ethylene is derived from the taxable chemicals 
    butylene and ethylene. Polybutylene/ethylene is a solid produced 
    predominantly by the Zeigler-Nata Catalyzed, Bulk, Polymerization 
    Process.
        The stoichiometric material consumption formula for polybutylene/
    ethylene is:
    
    n (C4H8) (butylene) + m (C2H4) (ethylene) ----> 
    (C4H8)n(C2H4)m (polybutylene/ethylene)
    
        Polybutylene/ethylene 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 100 percent by weight of the materials used in its 
    production.
    Dale D. Goode,
    Federal Register Liaison Officer, Assistant Chief Counsel (Corporate).
    [FR Doc. 95-12765 Filed 5-23-95; 8:45 am]
    BILLING CODE 4830-01-U
    
    

Document Information

Effective Date:
7/1/1990
Published:
05/24/1995
Department:
Internal Revenue Service
Entry Type:
Notice
Action:
Notice.
Document Number:
95-12765
Dates:
This modification is effective July 1, 1990.
Pages:
27594-27594 (1 pages)
PDF File:
95-12765.pdf