[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