[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: 94-5863]


[[Page Unknown]]

[Federal Register: March 14, 1994]


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DEPARTMENT OF THE TREASURY
 

Tax on Certain Imported Substances; Filing of Petition; Di-n-
hexyl Adipate, 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 di-n-hexyl adipate, 
ortho-dichlorobenzene and para-dichlorobenzene 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 these petitions would be 
effective October 1, 1990.

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 December 27, 
1989. The petitioner is Monsanto 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.

Di-n-hexyl adipate

HTS number: 2917.39.20.00
CAS number: 110-33-8

    This substance is derived from the taxable chemicals ethylene, 
methane, benzene, and nitric acid. Di-n-hexyl adipate is a liquid 
produced predominantly by reaction of n-hexyl alcohol with adipic acid 
in the presence of a catalyst. n-hexyl alcohol is produced from 
aluminum, natural gas (via hydrogen), and ethylene (via 
triethylaluminum). Oxidation of the intermediate mixed trialkylaluminum 
with air produces a mixed aluminum alkoxide, which is hydrolyzed to 
produce a mixture of alcohols, from which n-hexyl alcohol is recovered 
by distillation. Adipic acid is produced from benzene (via cyclohexane) 
and the methane in natural gas (via hydrogen). Oxidation of cyclohexane 
using air and nitric acid in a two-step process produces adipic acid.
    The stoichiometric material consumption formula for this substance 
is:

6 C2H4 (ethylene) + 1.5 CH4 (methane) + C6H6 
(benzene) + 2.33 HNO3 (nitric acid) + 2.83 H2O (water) + 1.75 
O2 (oxygen) + 0.67 Al (aluminum) + 2.02 H2 (hydrogen) ----> 
C18H34O4 (di-n-hexyl adipate) + 3 H2 (hydrogen) + 
1.5 CO2 (carbon dioxide) + 2.33 NO (nitric oxide) + 2 H2O 
(water) + 0.67 AlH3O3 (aluminum hydroxide)

    According to the petition, taxable chemicals constitute 76.6 per 
cent by weight of the materials used to produce this substance. The 
rate of tax for this substance would be $4.67 per ton. This is based 
upon a conversion factor for ethylene of 0.58, a conversion factor for 
methane of 0.05, a conversion factor for benzene of 0.33, and a 
conversion factor for nitric acid of 0.29.

Ortho-dichlorobenzene

HTS number: 2903.61.20.00
CAS number: 95-50-1

    This substance is derived from the taxable chemicals benzene and 
chlorine. Ortho-dichlorobenzene is a liquid produced predominantly by 
the reaction of chlorine with benzene.
    The stoichiometric material consumption formula for this substance 
is:

C6H6 (benzene) + 2 Cl2 (chlorine) ----> 
C6H4Cl2 (o-dichlorobenzene) + 2 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 $5.55 per ton. This is based 
upon a conversion factor for benzene of 0.57 and a conversion factor 
for chlorine of 1.03.

Para-dichlorobenzene

HTS number: 2903.61.30.00
CAS number: 106-46-7

    This substance is derived from the taxable chemicals benzene and 
chlorine. Para-dichlorobenzene is a solid produced predominantly by the 
reaction of chlorine with benzene.
    The stoichiometric material consumption formula for this substance 
is:

C6H6 (benzene) + 2 Cl2 (chlorine) ----> 
C6CH4Cl2(p-dichlorobenzene) + 2 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 $5.55 per ton. This is based 
upon a conversion factor for benzene of 0.57 and a conversion factor 
for chlorine of 1.03.
Dale D. Goode,
Federal Register Liaison Officer, Assistant Chief Counsel (Corporate).
[FR Doc. 94-5863 Filed 3-11-94; 8:45 am]
BILLING CODE 4830-01-U