[Federal Register Volume 60, Number 136 (Monday, July 17, 1995)]
[Notices]
[Pages 36459-36460]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-17381]
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DEPARTMENT OF THE TREASURY
Tax on Certain Imported Substances (Toluenediamine); 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 toluenediamine.
effective date: This modification is effective October 1, 1995.
for further information contact: Ruth Hoffman, Office of Assistant
Chief Counsel (Passthroughs and Special Industries), (202) 622-3130
(not a toll-free number).
[[Page 36460]]
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 July 10, 1995, the Secretary determined that toluenediamine
should be added to the list of taxable substances in section
4672(a)(3), effective October 1, 1995.
The rate of tax prescribed for toluenediamine, under section
4671(b)(3), is $5.59 per ton. This is based upon a conversion factor
for toluene of 0.78, a conversion factor for methane of 0.26, and a
conversion factor for ammonia of 0.34.
The petitioner is Air Products and Chemicals, Inc., 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: 2921.51.10
CAS number: 95-80-7, 823-40-5, 2687-25-4, and 496-72-0
Toluenediamine is derived from the taxable chemicals toluene,
methane, and ammonia and is a solid produced predominantly by a two-
step process. The first step is mixed-acid nitration of toluene to
produce dinitrotoluene. The second step is the catalytic reaction of
hydrogen and dinitrotoluene to produce toluenediamine.
The stoichiometric material consumption formula for this substance
is:
C7H8 toluene+1.5 CH4 (methane)+ 2NH3
(ammonia)+4 O2 (oxygen) CH3C6H3
(NH2)2 (toluenediamine)+5H2O) (water)+1.5 CO2
(carbon dioxide)
Toluenediamine 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 53.95 percent by weight of the materials used in
its production.
Dale D. Goode,
Federal Register Liaison Officer, Assistant Chief Counsel (Corporate).
[FR Doc. 95-17381 Filed 7-14-95; 8:45 am]
BILLING CODE 4830-01-U-M
