[Federal Register Volume 60, Number 82 (Friday, April 28, 1995)]
[Notices]
[Pages 21025-21026]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-10412]



[[Page 21025]]

DEPARTMENT OF THE TREASURY

Internal Revenue Service


Tax on Certain Imported Substances (Monoethanolamine, et al.); 
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 CB 717, of petitions requesting that monoethanolamine, 
diethanolamine, triethanolamine, monoisopropanolamine, 
diisopropanolamine, triisopropanolamine, toluene diisocyanate, and 
chlorinated polyethylene 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 June 27, 1995. Any modification 
of the list of taxable substances based upon these petitions would be 
effective April 1, 1992.

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 petitions were received on April 15, 
1991 (monoethanolamine, diethanolamine, triethanolamine, 
monoisopropanolamine, diisopropanolamine, triisopropanolamine), May 2, 
1991 (toluene diisocyanate), and July 1, 1991 (chlorinated 
polyethylene). The petitioner is Dow Chemical 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.

Monoethanolamine

HTS number: 2922.11.00.00
CAS number: 141-43-5

    This substance is derived from the taxable chemicals ethylene and 
ammonia. Monoethanolamine is a liquid produced predominantly by 
reacting ethylene oxide and aqueous ammonia.
    The stoichiometric material consumption formula for this substance 
is:

2 C2H4 (ethylene) + 2 NH3 (ammonia) + O2 (oxygen) 
 2 C2H7NO (monoethanolamine)

    According to the petition, taxable chemicals constitute 73.7 
percent by weight of the materials used to produce this substance. The 
rate of tax for this substance would be $3.63 per ton. This is based 
upon a conversion factor for ethylene of 0.59 and a conversion factor 
for ammonia of 0.29.

Diethanolamine

HTS number: 2922.12.00.00
CAS number: 111-42-2

    This substance is derived from the taxable chemicals ethylene and 
ammonia. Diethanolamine is a solid produced predominantly by reacting 
ethylene oxide and aqueous ammonia.
    The stoichiometric material consumption formula for this substance 
is:

2 C2H4 (ethylene) + NH3 (ammonia) + O2 (oxygen) 
 C4H11NO2 (diethanolamine)

    According to the petition, taxable chemicals constitute 69.5 
percent by weight of the materials used to produce this substance. The 
rate of tax for this substance would be $3.85 per ton. This is based 
upon a conversion factor for ethylene of 0.70 and a conversion factor 
for ammonia of 0.17.

Triethanolamine

HTS number: 2922.13.00.00
CAS number: 102-71-6

    This substance is derived from the taxable chemicals ethylene and 
ammonia. Triethanolamine is a liquid produced predominantly by reacting 
ethylene oxide and aqueous ammonia.
    The stoichiometric material consumption formula for this substance 
is:

6 C2H4 (ethylene) + 2 NH3 (ammonia) + 3 O2 (oxygen) 
 2 C6H15NO3 (triethanolamine)

    According to the petition, taxable chemicals constitute 67.7 
percent by weight of the materials used to produce this substance. The 
rate of tax for this substance would be $3.96 per ton. This is based 
upon a conversion factor for ethylene of 0.75 and a conversion factor 
for ammonia of 0.12.

Monoisopropanolamine

HTS number: 2922.19.60.00
CAS number: 78-96-6

    This substance is derived from the taxable chemicals propylene, 
chlorine, sodium hydroxide, and ammonia. Monoisopropanolamine is a 
liquid produced predominantly by the reaction of propylene oxide and 
ammonia.
    The stoichiometric material consumption formula for this substance 
is:

2 C3H6 (propylene) + 2 Cl2 (chlorine) + 2 NaOH (sodium 
hydroxide) + NH3 (ammonia) +  C3H9 NO 
(monoisopropanolamine) + C3H6Cl2 (propylene dichloride) 
+ 2 NaCl (sodium chloride) + H2O (water)

    According to the petition, taxable chemicals constitute 100 percent 
by weight of the materials used to produce this substance. The rate of 
tax for this substance would be $6.66 per ton. This is based upon a 
conversion factor for propylene of 0.62, a conversion factor for 
chlorine of 1.00, a conversion factor for sodium hydroxide of 1.20, and 
a conversion factor for ammonia of 0.23.

Diisopropanolamine

HTS number: 2922.19.60.00
CAS number: 110-97-3

    This substance is derived from the taxable chemicals propylene, 
chlorine, sodium hydroxide, and ammonia. Diisopropanolamine is a solid 
produced predominantly by the reaction of propylene oxide and ammonia.
    The stoichiometric material consumption formula for this substance 
is:

3 C3H6 (propylene) + 2 Cl2 (chlorine) + 2 NaOH (sodium 
hydroxide) + NH3 (ammonia)  C6H15NO2 
(diisopropanolamine) + C3H6Cl2 (propylene dichloride) + 
2 NaCl (sodium chloride) + H2 (hydrogen)

    According to the petition, taxable chemicals constitute 100 percent 
by weight of the materials used to produce this substance. The rate of 
tax for this substance would be $7.08 per ton. This is based upon a 
conversion factor for propylene of 0.70, a conversion factor for 
chlorine of 1.10, a conversion factor for sodium hydroxide of 1.30, and 
a conversion factor for ammonia of 0.13.

Triisopropanolamine

HTS number: 2922.19.60.00
CAS number: 122-20-3

    This substance is derived from the taxable chemicals propylene, 
chlorine, sodium hydroxide, and ammonia. Triisopropanolamine is a solid 
produced predominantly by the reaction of propylene oxide and ammonia.
    The stoichiometric material consumption formula for this substance 
is:

[[Page 21026]] 4 C3H6 (propylene) + 3 Cl2 (chlorine) + 4 
NaOH (sodium hydroxide) + NH3 (ammonia)  
C9H21NO3 (triisopropanolamine) + C3H6Cl2 
(propylene dichloride) + 4 NaCl (sodium chloride) + H2O (water) + 
H2 (hydrogen)

    According to the petition, taxable chemicals constitute 100 percent 
by weight of the materials used to produce this substance. The rate of 
tax for this substance would be $7.49 per ton. This is based upon a 
conversion factor for propylene of 0.74, a conversion factor for 
chlorine of 1.20, a conversion factor for sodium hydroxide of 1.40, and 
a conversion factor for ammonia of 0.10.

Toluene diisocyanate

HTS number: 2929.10.15.00
CAS number: 584-84-9

    This substance is derived from the taxable chemicals toluene, 
nitric acid, and chlorine. Toluene diisocyanate is a liquid produced 
predominantly by the phosgenation of primary amines.
    The stoichiometric material consumption formula for this substance 
is:

C7H8 (toluene) + 2 HNO3 (nitric acid) + 2 Cl2 
(chlorine) + 2 CO (carbon monoxide) + 6 H2 (hydrogen)  
C9H6N2O2 (toluene diisocyanate) + 6 H2O 
(water) + 4 HCl (hydrogen chloride)

    According to the petition, taxable chemicals constitute 84 percent 
by weight of the materials used to produce this substance. The rate of 
tax for this substance would be $4.90 per ton. This is based upon a 
conversion factor for toluene of 0.53, a conversion factor for nitric 
acid of 0.7, and a conversion factor for chlorine of 0.8.

Chlorinated polyethylene

HTS number: 3901.90.50.00
CAS number: 064754-90-1

    This substance is derived from the taxable chemicals ethylene and 
chlorine. Chlorinated polyethylene is a solid produced predominantly by 
chlorination of polyethylene resins.
    The stoichiometric material consumption formula for this substance 
is:

857 C2H4 (ethylene) + 375 Cl2 (chlorine)  
C1714H3053Cl375 (chlorinated polyethylene) + 375 HCl 
(hydrogen chloride)

    According to the petition, taxable chemicals constitute 100 percent 
by weight of the materials used to produce this substance. The rate of 
tax for this substance would be $5.05 per ton. This is based upon a 
conversion factor for ethylene of 0.65 and a conversion factor for 
chlorine of 0.70.

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. 95-10412 Filed 4-27-95; 8:45 am]
BILLING CODE 4830-01-U