[Federal Register Volume 59, Number 62 (Thursday, March 31, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-7574]


[[Page Unknown]]

[Federal Register: March 31, 1994]


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DEPARTMENT OF THE TREASURY
 

Tax on Certain Imported Substances; Filing of Petition

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice.

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SUMMARY: This notice announces the acceptance, under notice 89-61, 
1989-1 C.B. 717, of a petition requesting that dimethyl terephthalate 
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 31, 1994. Any modification of 
the list of taxable substances based upon this petition would be 
effective April 1, 1992.

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

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 petition was received on April 15, 1991. 
The petitioner is Cape Industries, a manufacturer and exporter of this 
substance. The following is a summary of the information contained in 
the petition. The complete petition is available in the Internal 
Revenue Service Freedom of Information Reading Room.

HTS Number: 2917.37.00.00.
CAS Number: 120-61-6.

    This substance is derived from the taxable chemicals xylene and 
methane. Dimethyl terephthalate is a solid produced predominantly by 
oxidation of xylene followed by esterification with methanol.
    The stoichiometric material consumption formula for this substance 
is:

C8H10 (xylene)+2 CH4 (methane)+4 O2 
(oxygen)C10H10O4 (dimethyl terephthalate)+4 
H2O (water)

    According to the petition, taxable chemicals constitute 51.8 per 
cent by weight of the materials used to produce this substance. The 
rate of tax for this substance would be $3.23 per ton. This is based 
upon a conversion factor for xylene of 0.547 and a conversion factor 
for methane of 0.165.
Dale D. Goode,
Federal Register Liaison Officer, Assistant Chief Counsel (Corporate).
[FR Doc. 94-7574 Filed 3-30-94; 8:45 am]
BILLING CODE 4830-01-U