[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: 94-5862]


[[Page Unknown]]

[Federal Register: March 14, 1994]


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DEPARTMENT OF THE TREASURY
 

Tax on Certain Imported Substances; Filing of Petition; 
Epichlorohydrin, Etc.

AGENCY: Internal Revenue Service, Treasury.

ACTION: Notice.

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SUMMARY: This notice announces the acceptance, under Notice 89-61, 
1989-1 C.B. 717, of petitions requesting that epichlorohydrin and allyl 
chloride be added to the list of taxable substances in section 
4672(a)(3) of the Internal Revenue Code. Publication of this notice is 
in compliance with Notice 89-61. This is not a determination that the 
list of taxable substances should be modified.

DATES: Written comments and requests for a public hearing relating to 
these petitions must be received by May 13, 1994. Any modification of 
the list of taxable substances based upon this petition would be 
effective October 1, 1992.

ADDRESSES: Send comments and requests for a public hearing to: Internal 
Revenue Service, P.O. Box 7604, Ben Franklin Station, Washington, DC 
20044 (Attn: CC:DOM:CORP:T:R (Petition), room 5228).

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: The petitions were received on November 21, 
1991 (epichlorohydrin) and December 6, 1991 (allyl chloride). The 
petitioner is Dow Chemical Company a manufacturer and exporter of these 
substances. The following is a summary of the information contained in 
the petitions. The complete petitions are available in the Internal 
Revenue Service Freedom of Information Reading Room.

Epichlorohydrin

HTS number: 2910.30.00.00
CAS number: 106-89-8

    This substance is derived from the taxable chemicals propylene, 
chlorine, and sodium hydroxide. Epichlorohydrin is a liquid produced 
predominantly by the chlorohydration of allyl chloride, which is 
obtained by chlorination of propylene, followed by the 
hydrochlorination of the formed dichlorohydrin.
    The stoichiometric material consumption formula for this substance 
is:

C3H6 (propylene) + 2 Cl2 (chlorine) + NaOH (sodium 
hydroxide)----> C3H5ClO (epichlorohydrin)+2 HCl (hydrogen 
chloride) + NaCl (sodium chloride)

    According to the petition, taxable chemicals constitute 100 per 
cent by weight of the materials used to produce this substance. The 
rate of tax for this substance would be $8.58 per ton. This is based 
upon a conversion factor for propylene of 0.61, a conversion factor for 
chlorine of 1.98, and a conversion factor for sodium hydroxide of 0.96.

Allyl chloride

HTS number: 2903.29.00.00
CAS number: 107-05-1

    This substance is derived from the taxable chemicals propylene and 
chlorine. Allyl chloride is a liquid produced predominantly by 
noncatalytic flow-pressure, high temperature chlorination of propylene.
    The stoichiometric material consumption formula for this substance 
is:

C3H6 (propylene) + Cl2 (chlorine) ----> C3H5Cl 
(allyl chloride) + HCl (hydrogen chloride)

    According to the petition, taxable chemicals constitute 100 per 
cent by weight of the materials used to produce this substance. The 
rate of tax for this substance would be $6.45 per ton. This is based 
upon a conversion factor for propylene of 0.66 and a conversion factor 
for chlorine of 1.20.
Dale D. Goode,
Federal Register Liaison Officer, Assistant Chief Counsel (Corporate).
[FR Doc. 94-5862 Filed 3-11-94; 8:45 am]
BILLING CODE 4830-01-U