[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
