[Federal Register Volume 60, Number 136 (Monday, July 17, 1995)]
[Notices]
[Pages 36458-36459]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-17382]
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DEPARTMENT OF THE TREASURY
Tax on Certain Imported Substances (Monoethanolamine, 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 monoethanolamine, diethanolamine, triethanolamine,
monoisopropanolamine, diisopropanolamine, triisopropanolamine, toluene
diisocyanate, and chlorinated polyethylene.
EFFECTIVE DATE: This modification is effective April 1, 1992.
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 July 10, 1995, the Secretary determined that monoethanolamine,
diethanolamine, triethanolamine, monoisopropanolamine,
diisopropanolamine, triisopropanolamine, toluene diisocyanate, and
chlorinated polyethylene should be added to the list of taxable
substances in section 4672(a)(3), effective April 1, 1992.
The rate of tax prescribed for monoethanolamine, under section
4671(b)(3), is $3.63 per ton. This is based upon a conversion factor
for ethylene of 0.59 and a conversion factor for ammonia of 0.29.
The rate of tax prescribed for diethanolamine, under section
4671(b)(3), is $3.85 per ton. This is based upon a conversion factor
for ethylene of 0.70 and a conversion factor for ammonia of 0.17.
The rate of tax prescribed for triethanolamine, under section
4671(b)(3), is $3.96 per ton. This is based upon a conversion factor
for ethylene of 0.75 and a conversion factor for ammonia of 0.12.
The rate of tax prescribed for monoisopropanolamine, under section
4671(b)(3), is $6.66 per ton. This is based upon a conversion factor
for propylene of 0.62, a conversion factor for chlorine of 1.00, a
conversion factor for sodium hydroxide of 1.20, and a conversion factor
for ammonia of 0.23.
The rate of tax prescribed for diisopropanolamine, under section
4671(b)(3), is $7.08 per ton. This is based upon a conversion factor
for propylene of 0.70, a conversion factor for chlorine of 1.10, a
conversion factor for sodium hydroxide of 1.30, and a conversion factor
for ammonia of 0.13.
The rate of tax prescribed for triisopropanolamine, under section
4671(b)(3), is $7.49 per ton. This is based upon a conversion factor
for propylene of 0.74, a conversion factor for chlorine of 1.20, a
conversion factor for sodium hydroxide of 1.40, and a conversion factor
for ammonia of 0.10.
The rate of tax prescribed for toluene diisocyanate, under section
4671(b)(3), is $4.90 per ton. This is based upon a conversion factor
for toluene of 0.53, a conversion factor for nitric acid of 0.7, and a
conversion factor for chlorine of 0.8.
The rate of tax prescribed for chlorinated polyethylene, under
section 4671(b)(3), is $5.05 per ton. This is based upon a conversion
factor for ethylene of 0.65 and a conversion factor for chlorine of
0.70.
The petitioner is Dow Chemical Company, a manufacturer and exporter
of these substances. No material comments were received on these
petitions. The following information is the basis for the
determinations.
Monoethanolamine
HTS number: 2922.11.00.00
CAS number: 141-43-5
Monoethanolamine is derived from the taxable chemicals ethylene and
ammonia and is a liquid produced predominantly by reacting ethylene
oxide and aqueous ammonia.
The stoichiometric material consumption formula for this substance
is:
2 C2H4 (ethylene)+2 NH3 (ammonia)+O2 (oxygen)
2 C22H7NO (monoethanolamine)
Monoethanolamine 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 73.7 percent by weight of the materials used in
its production.
Diethanolamine
HTS number: 2922.12.00.00
CAS number: 111-42-2
[[Page 36459]]
Diethanolamine is derived from the taxable chemicals ethylene and
ammonia and is a solid produced predominantly by reacting ethylene
oxide and aqueous ammonia.
The stoichiometric material consumption formula for this substance
is:
2 C2H4 (ethylene)+NH3 (ammonia)+O2 (oxygen)
C4H11NO2 (diethanolamine)
Diethanolamine 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 69.5 percent by weight of the materials used in
its production.
Triethanolamine
HTS number: 2922.13.00.00
CAS number: 102-71-6
Triethanolamine is derived from the taxable chemicals ethylene and
ammonia and is a liquid produced predominantly by reacting ethylene
oxide and aqueous ammonia.
The stoichiometric material consumption formula for this substance
is:
6 C2H4 (ethylene)+2 NH3 (ammonia)+3 O2 (oxygen)
2 C6H15NO3 (triethanolamine)
Triethanolamine 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 67.7 percent by weight of the materials used in
its production.
Monoisopropanolamine
HTS number: 2922.19.60.00
CAS number: 78-96-6
Monoisopropanolamine is derived from the taxable chemicals
propylene, chlorine, sodium hydroxide, and ammonia and is a liquid
produced predominantly by the reaction of propylene oxide and ammonia.
The stoichiometric material consumption formula for this substance
is:
2 C3H6 (propylene)+2 Cl2 (chlorine)+2 NaOH (sodium
hydroxide)+NH3 (ammonia) + C3H9NO
(monoisopropanolamine)+C3H6Cl2 (propylene dichloride)+2
NaCl (sodium chloride) + H2O (water)
Monoisopropanolamine 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.
Diisopropanolamine
HTS number: 2922.19.60.00
CAS number: 110-97-4
Diisopropanolamine is derived from the taxable chemicals propylene,
chlorine, sodium hydroxide, and ammonia and is a solid produced
predominantly by the reaction of propylene oxide and ammonia.
The stoichiometric material consumption formula for this substance
is:
3 C3H6 (propylene)+2 Cl2 (chlorine)+2 NaOH (sodium
hydroxide)+NH3 (ammonia) C6H15NO2
(diisopropanolamine) + C3H6Cl2 (propylene dichloride)+2
NaCl (sodium chloride)+H2 (hydrogen)
Diisopropanolamine 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.
Triisopropanolamine
HTS number: 2922.19.60.00
CAS number: 122-20-3
Triisopropanolamine is derived from the taxable chemicals
propylene, chlorine, sodium hydroxide, and ammonia and is a solid
produced predominantly by the reaction of propylene oxide and ammonia.
The stoichiometric material consumption formula for this substance
is:
4 C3H6 (propylene)+3 Cl2 (chlorine)+4 NaOH (sodium
hydroxide)+NH3 (ammonia) C9H21NO3
(triisopropanolamine)+C3H6Cl2 (propylene dichloride)+4
NaCl (sodium chloride)+H2O (water)+H2 (hydrogen)
Triisopropanolamine 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.
Toluene diisocyanate
HTS number: 2929.10.15.00
CAS number: 584-84-9
Toluene diisocyanate is derived from the taxable chemicals toluene,
nitric acid, and chlorine and is a liquid produced predominantly by the
phosgenation of primary amines.
The stoichiometric material consumption formula for this substance
is:
C7H8 (toluene) + 2 HNO3 (nitric acid) + 2 Cl2
(chlorine) + 2 CO (carbon monoxide) + 6 H2 (hydrogen) ------>
C9H6N2O2 (toluene diisocyanate) + 6 H2O
(water) +4 HCl (hydrogen chloride)
Toluene diisocyanate 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 84 percent by weight of the materials used in its
production.
Chlorinated polyethylene
HTS number: 3901.90.50.00
CAS number: 064754-90-1
Chlorinated polyethylene is derived from the taxable chemicals
ethylene and chlorine and is a solid produced predominantly by
chlorination of polyethylene resins.
The stoichiometric material consumption formula for this substance
is:
857 C2H4 (ethylene) + 375 Cl2 (chlorine)
C1714H3053Cl375 (chlorinated polyethylene) + 375 HCl
(hydrogen chloride)
Chlorinated polyethylene 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. 95-17382 Filed 7-14-95; 8:45 am]
BILLING CODE 4830-01-U
