94-16482. Tax on Certain Imported Substances (Di-2 Ethyl Hexyl Phthalate); Notice of Determination

[Federal Register Volume 59, Number 130 (Friday, July 8, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-16482]


[[Page Unknown]]

[Federal Register: July 8, 1994]


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DEPARTMENT OF THE TREASURY
Internal Revenue Service

 

Tax on Certain Imported Substances (Di-2 Ethyl Hexyl Phthalate); 
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 di-2 ethyl hexyl phthalate.

EFFECTIVE DATE: This modification is effective October 1, 1993.

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:

Background

    Under section 4672(a), an importer or exporter of any substance may 
request that the Secretary determine whether such substance should be 
listed as a taxable substance. The Secretary shall add such 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 such 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 June 30, 1994, the Secretary determined that di-2 ethyl hexyl 
phthalate should be added to the list of taxable substances in section 
4672(a)(3), effective October 1, 1993.
    The rate of tax prescribed for di-2 ethyl hexyl phthalate, under 
section 4671(b)(3), is $3.42 per ton. This is based upon a conversion 
factor for xylene of 0.272 and a conversion factor for propylene of 
0.431.
    The petitioner is Aristech Chemical Corporation, 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: 2917.32.00.00
CAS number: 117-81-7

    Di-2 ethyl hexyl phthalate is derived from the taxable chemicals 
xylene and propylene. Di-2 ethyl hexyl phthalate is a liquid produced 
predominantly by acid catalyzed esterification of phthalic anhydride 
(derived from o-xylene) and 2-ethyl hexanol (derived from propylene).
    The stoichiometric material consumption formula for di-2 ethyl 
hexyl phthalate is:

C8H10 (xylene)+4 C3H6 (propylene)+3 O2 
(oxygen)+4 CO (carbon monoxide)+8 H2 (hydrogen)  
C24H38O4 (di-2 ethyl hexyl phthalate)+6 H2O (water)

    Di-2 ethyl hexyl phthalate 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 55 percent by weight of the materials used 
in its production.
Dale D. Goode,
Federal Register Liaison Officer, Assistant Chief Counsel (Corporate).
[FR Doc. 94-16482 Filed 7-7-94; 8:45 am]
BILLING CODE 4830-01-U