[Federal Register Volume 59, Number 142 (Tuesday, July 26, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-18056]


[[Page Unknown]]

[Federal Register: July 26, 1994]


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DEPARTMENT OF THE TREASURY
Internal Revenue Service

 

Tax on Certain Imported Substances (Dimethyl-2,6-Naphthalene 
Dicarboxylate); 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-2,6-naphthalene 
dicarboxylate be added to the list of taxable substances in section 
4672(a)(3). 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: Submissions must be received by September 26, 1994. Any 
modification of the list of taxable substances based upon this petition 
would be effective April 1, 1995.

ADDRESSES: Send submissions to: CC:DOM:CORP:T:R (Petition), room 5228, 
Internal Revenue Service, POB 7604, Ben Franklin Station, Washington, 
DC 20044. In the alternative, submissions may be hand delivered between 
the hours of 8 a.m. and 5 p.m. to: CC:DOM:CORP:T:R (Petition), 
Courier's Desk, Internal Revenue Service, 1111 Constitution Avenue NW., 
Washington, DC.

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 May 5, 1994. 
The petitioner is Amoco Corporation, 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.  2917.39.50
CAS: number.  840-65-3

    This substance is derived from the taxable chemicals xylene, 
butadiene, and methane. Dimethyl-2,6-naphthalene dicarboxylate is a 
solid produced predominantly by esterification of naphthalene 
dicarboxylic acid (2,6-NDA). 2,6-NDA is made by air oxidation of 
dimethyl naphthalene (2,6-DMN). 2,6-DMN is prepared via the 
alkenylation of orthoxylene acid butadiene.
    The stoichiometric material consumption formula for this substance 
is:

C8H10 (xylene) + C4H6 (butadiene) + 2 CH4 
(methane) + 4 O2 (oxygen) ----> C14H12O4 (dimethyl-
2,6-naphthalene dicarboxylate) + 2 H2 (hydrogen) + 4 H2O 
(water)

    According to the petition, taxable chemicals constitute 60 percent 
by weight of the materials used to produce this substance. The rate of 
tax for this substance would be $5.97 per ton. This is based upon a 
conversion factor for xylene of 0.690, a conversion factor for 
butadiene of 0.390, and a conversion factor for methane of 0.208.

Comments and Requests for A Public Hearing

    Before a determination is made, consideration will be given to any 
written comments (a signed original and eight (8) copies) that are 
submitted timely to the IRS. All comments will be available for public 
inspection and copying. A public hearing may be scheduled if requested 
in writing by a person that timely submits written comments. If a 
public hearing is scheduled, notice of the date, time, and place for 
the hearing will be published in the Federal Register.
Dale D. Goode,
Federal Register Liaison Officer, Assistant Chief Counsel (Corporate).
[FR Doc. 94-18056 Filed 7-25-94; 8:45 am]
BILLING CODE 4830-01-U