[Federal Register Volume 60, Number 202 (Thursday, October 19, 1995)]
[Notices]
[Page 54101]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-25869]



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DEPARTMENT OF THE TREASURY

Tax on Certain Imported Substances (Poly 1,4 
butyleneterephthalate); Notice of Determination

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice.

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SUMMARY: This notice announces a determination, under Notice 89-61, 
that the list of taxable substances in section 4672(a)(3) will be 
modified to include poly 1,4 butyleneterephthalate.

EFFECTIVE DATE: This modification is effective April 1, 1991.

FOR FURTHER INFORMATION CONTACT: Ruth Hoffman, Office of Assistant 
Chief Counsel (Passthroughs and Special Industries), (202) 622-3130 
(not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    Under section 4672(a), an importer or exporter of any substance may 
request that the Secretary determine whether that substance should be 
listed as a taxable substance. The Secretary shall add the substance to 
the list of taxable substances in section 4672(a)(3) if the Secretary 
determines that taxable chemicals constitute more than 50 percent of 
the weight, or more than 50 percent of the value, of the materials used 
to produce the substance. This determination is to be made on the basis 
of the predominant method of production. Notice 89-61, 1989-1 C.B. 717, 
sets forth the rules relating to the determination process.

Determination

    On October 12, 1995, the Secretary determined that poly 1,4 
butyleneterephthalate should be added to the list of taxable substances 
in section 4672(a)(3), effective April 1, 1995.
    The rate of tax prescribed for poly 1,4 butyleneterephthalate, 
under section 4671(b)(3), is $3.92 per ton. This is based upon a 
conversion factor for acetylene of 0.1186, a conversion factor for 
methane of 0.2920, and a conversion factor for xylene of 0.4816.
    The petitioner is GE Plastics, a manufacturer and exporter of this 
substance. No material comments were received on this petition. The 
following information is the basis for the determination.

HTS number: 3907.91.00
CAS number: 26062-94-2

    Poly 1,4 butyleneterephthalate is derived from the taxable 
chemicals acetylene, methane, and xylene and is a solid produced 
predominantly by the melt polycondensation process.
    The stoichiometric material consumption formula for this substance 
is:

176 C2H2 (acetylene) + 702 CH4 (methane) + 175 
C8H10 (xylene) + 352 H2 (hydrogen) + 701 O2 
(oxygen) + 350 H2O (water) + 0.08 Ti(OC3H7)4 (tetra 
iso-propyl titanate)  
HO(CH2)4O(C8H4O2)175(C4H8O2
)175 (poly 1,4 butyleneterephthalate) + 0.08 Ti (titanium) + 0.32 
C3H8O (isopropanol) + 350 CH3OH (methanol) + 700 
H2O (water) + 702 H2 (hydrogen)

    Poly 1,4 butyleneterephthalate has been determined to be a taxable 
substance because a review of its stoichiometric material consumption 
formula shows that, based on the predominant method of production, 
taxable chemicals constitute 53.8 percent by weight of the materials 
used in its production.
Dale D. Goode,
Federal Register Liaison Officer, Assistant Chief Counsel (Corporate).
[FR Doc. 95-25869 Filed 10-18-95; 8:45 am]
BILLING CODE 4830-01-U