[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: 94-16483]
[[Page Unknown]]
[Federal Register: July 8, 1994]
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DEPARTMENT OF THE TREASURY
Tax on Certain Imported Substances (Polycarbonate); 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 polycarbonate.
EFFECTIVE DATE: This modification is effective July 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 polycarbonate
should be added to the list of taxable substances in section
4672(a)(3), effective July 1, 1993.
The rate of tax prescribed for polycarbonate, under section
4671(b)(3), is $4.91 per ton. This is based upon a conversion factor
for methane of 0.083, a conversion factor for chlorine of 0.276, a
conversion factor for benzene of 0.614, a conversion factor for
propylene of 0.165, and a conversion factor for sodium hydroxide of
0.315.
The petitioner is Miles 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: 3907.40.00.00
CAS number: 127133-67-9
Polycarbonate is derived from the taxable chemicals methane,
chlorine, benzene, propylene, and sodium hydroxide. Polycarbonate is a
solid produced predominantly by the interfacial polycondensation
reaction of the sodium salt solution of bisphenol-A in an aqueous phase
and phosgene in an organic phase.
The stoichiometric material consumption formula for polycarbonate
is:
CH4 (methane)+C12 (chlorine)+2 C6H6
(benzene)+C3H6 (propylene)+2 NaOH (sodium hydroxide)+3
O2 (oxygen)
O(C6H4)C(CH3)2(C6H4)OCO (polycarbonate)+5
H2O (water)+2 NaCl (sodium chloride)
Polycarbonate 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 79.1 percent by weight of the materials used in its
production.
Dale D. Goode,
Federal Register Liaison Officer, Assistant Chief Counsel (Corporate).
[FR Doc. 94-16483 Filed 7-7-94; 8:45 am]
BILLING CODE 4830-01-U
