[Federal Register Volume 59, Number 49 (Monday, March 14, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-5859]


[[Page Unknown]]

[Federal Register: March 14, 1994]


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DEPARTMENT OF THE TREASURY
 

Tax on Certain Imported Substances; Notice of Determination; 
Decabromodiphenyl Oxide, Etc.

AGENCY: Internal Revenue Service, 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) of the 
Internal Revenue Code will be modified to include decabromodiphenyl 
oxide and tetrabromobisphenol-A.

EFFECTIVE DATE: This modification is effective July 1, 1990.

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) of the Internal Revenue Code, 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 July 9, 1991, the Secretary determined that decabromodiphenyl 
oxide and tetrabromobisphenol-A should be added to the list of taxable 
substances in section 4672(a)(3) of the Internal Revenue Code, 
effective July 1, 1990.
    The rate of tax prescribed for decabromodiphenyl oxide, under 
section 4671(b)(3), is $7.41 per ton. This is based upon a conversion 
factor for bromine of 1.666.
    The rate of tax prescribed for tetrabromobisphenol-A, under section 
4671(b)(3), is $5.22 per ton. This is based upon a conversion factor 
for bromine of 1.175.
    The petitioner is Ethyl Corporation, a manufacturer and exporter of 
these substances. No material comments were received on these 
petitions. The following information is the basis for the 
determinations.

Decabromodiphenyl oxide

HTS number:    2909.30.07
CAS number:    1163-19-5

    Decabromodiphenyl oxide is derived from the taxable chemical 
bromine. Decabromodiphenyl oxide is a solid produced predominantly by 
direct bromination of diphenyl oxide in the presence of a catalyst.
    The stoichiometric material consumption formula for 
decabromodiphenyl oxide is:

C12OH10 (diphenyl oxide) + 10 Br2 (bromine) ----> 
C12OBr10 (decabromodiphenyl oxide) + 10 HBr (hydrogen 
bromide).

    Decabromodiphenyl oxide 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 90.3 percent by weight of the materials 
used in its production.

Tetrabromobisphenol-A

HTS number:    2908.10.25
CAS number:    79-94-7

    Tetrabromobisphenol-A is derived from the taxable chemical bromine. 
Tetrabromobisphenol-A is a solid produced predominantly by the reaction 
of bromine with bisphenol-A.
    The stoichiometric material consumption formula for 
tetrabromobisphenol-A is:

C15H16O2 (bisphenol-A) + 4 Br2 (bromine) ----> 
C15H12O2Br4 (tetrabromobisphenol-A) + 4 HBr 
(hydrogen bromide).

    Tetrabromobisphenol-A 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.
Dale D. Goode,
Federal Register Liaison Officer, Assistant Chief Counsel (Corporate).
[FR Doc. 94-5859 Filed 3-11-94; 8:45 am]
BILLING CODE 4830-01-U