[Federal Register Volume 59, Number 169 (Thursday, September 1, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-21545]
[[Page Unknown]]
[Federal Register: September 1, 1994]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
Tax on Certain Imported Substances (Texanol Benzyl 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 texanol benzyl phthalate.
EFFECTIVE DATE: This modification is effective April 1, 1994.
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 August 19, 1994, the Secretary determined that texanol benzyl
phthalate should be added to the list of taxable substances in section
4672(a)(3), effective April 1, 1994.
The rate of tax prescribed for texanol benzyl phthalate, under
section 4671(b)(3), is $5.79 per ton. This is based upon a conversion
factor for xylene of 0.28, a conversion factor for toluene of 0.24, a
conversion factor for chlorine of 0.19, a conversion factor for methane
of 0.17, a conversion factor for propylene of 0.44, and a conversion
factor for sodium hydroxide of 0.09.
The petitioner is Monsanto Company, 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: 3812.20.00.00
CAS number: 16883-83-3.
Texanol benzyl phthalate is derived from the taxable chemicals
xylene, toluene, chlorine, methane, propylene, and sodium hydroxide.
Texanol benzyl phthalate is a liquid produced predominantly by the
reaction of texanol (2,2,4- trimethyl-1, 3-pentanediol monoisobutyrate)
and phthalic anhydride to produce a monoester, the sodium salt of which
(produced by reaction with sodium hydroxide) is reacted with benzyl
chloride.
The stoichiometric material consumption formula for texanol benzyl
phthalate is: C8H10 (xylene) + C7H8 (toluene) +
Cl2 (chlorine) + 4 CH4 (methane) + 4 C3H6
(propylene) + NaOH (sodium hydroxide) + 4 O2 (oxygen) ----->
C27H34O6 (texanol benzyl phthalate) + HCl (hydrochloric
acid) + 5 H2 (hydrogen) + C4H10O (isobutyl alcohol) +
NaCl (sodium chloride) + 2 H2O (water)
Texanol benzyl 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 80.8 percent by weight of the materials
used in its production.
Dale D. Goode,
Federal Register Liaison Officer, Assistant Chief Counsel (Corporate).
[FR Doc. 94-21545 Filed 8-31-94; 8:45 am]
BILLING CODE 4830-01-U
