[Federal Register Volume 59, Number 74 (Monday, April 18, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-9196]


[[Page Unknown]]

[Federal Register: April 18, 1994]


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DEPARTMENT OF THE TREASURY
 

Tax on Certain Imported Substances; Filing of Petitions

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 petitions requesting that sodium nitriolotriacetate 
monohydrate, diphenyl oxide, and tetrachlorophthalic anhydride 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 June 17, 1994. Any modification of 
the list of taxable substances based upon these petitions would be 
effective April 1, 1993.

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 petitions were received on April 30, 
1992 (sodium nitriolotriacetate monohydrate), June 29, 1992 (diphenyl 
oxide), and July 2, 1992 (tetrachlorophthalic anhydride). 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.

Sodium nitriolotriacetate monohydrate

HTS number: 2922.49.60.00
CAS number: 18662-53-8

    This substance is derived from the taxable chemicals methane, 
sodium hydroxide, propylene, and ammonia. Sodium nitriolotriacetate 
monohydrate is a solid produced predominantly by the reaction of 
formaldehyde with hydrogen cyanide in the presence of a catalyst, which 
is then further reacted with sodium hydroxide to produce sodium 
nitriolotriacetate monohydrate.
    The stoichiometric material consumption formula for this substance 
is: 3 CH4 (methane) + 3 NaOH (sodium hydroxide) + C3H6 
(propylene) + NH3 (ammonia) + 4.5 O2 (oxygen) ----> 
N(CH2COONa)3H2O (sodium nitriolotriacetate monohydrate) 
+ 5 H2O (water) + 3 H2 (hydrogen).
    According to the petition, taxable chemicals constitute 61.1 
percent by weight of the materials used to produce this substance. The 
rate of tax for this substance would be $2.45 per ton. This is based 
upon a conversion factor for methane of 0.24, a conversion factor for 
sodium hydroxide of 0.52, a conversion factor for propylene of 0.25, 
and a conversion factor for ammonia of 0.10.

Diphenyl oxide

HTS number: 2909.30.00.00
CAS number: 101-84-8

    This substance is derived from the taxable chemicals benzene and 
propylene. Diphenyl oxide is a solid produced predominantly by the 
catalytic condensation of phenol.
    The stoichiometric material consumption formula for this substance 
is: 2 C6H6 (benzene) + 2 C3H6 (propylene) + 2 
O2 (oxygen) ----> C12H10O (diphenyl oxide) + 2 
C3H6O (acetone) + H2O (water).
    According to the petition, taxable chemicals constitute 78.9 
percent by weight of the materials used to produce this substance. The 
rate of tax for this substance would be $8.13 per ton. This is based 
upon a conversion factor for benzene of 1.05 and a conversion factor 
for propylene of 0.62.

Tetrachlorophthalic anhydride

HTS number: 2916.19.00.00
CAS number: 117-08-8

    This substance is derived from the taxable chemicals chlorine and 
xylene. Tetrachlorophthalic anhydride is a solid produced predominantly 
by the high temperature reaction of phthalic anhydride with chlorine. 
Phthalic anhydride is produced by the reaction of o-xylene with air in 
the presence of a catalyst.
    The stoichiometric material consumption formula for this substance 
is: 4 Cl2 (chlorine) + C8H10 (xylene) + 3 O2 
(oxygen) ----> C8Cl4O3 (tetrachlorophthalic anhydride) + 
3 H2O (water) + 4 HCl (hydrogen chloride).
    According to the petition, taxable chemicals constitute 80 percent 
by weight of the materials used to produce this substance. The rate of 
tax for this substance would be $5.87 per ton. This is based upon a 
conversion factor for chlorine of 1.22 and a conversion factor for 
xylene of 0.53.
Dale D. Goode,
Federal Register Liaison Officer, Assistant Chief Counsel (Corporate).
[FR Doc. 94-9196 Filed 4-15-94; 8:45 am]
BILLING CODE 4830-01-U