[Federal Register Volume 60, Number 202 (Thursday, October 19, 1995)]
[Notices]
[Pages 54100-54101]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-25870]



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DEPARTMENT OF THE TREASURY

Internal Revenue Service


Tax on Certain Imported Substances (Methyl methacrylate); 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 methyl methacrylate.

EFFECTIVE DATE: This modification is effective October 1, 1995.

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

[[Page 54101]]


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 methyl 
methacrylate should be added to the list of taxable substances in 
section 4672(a)(3), effective October 1, 1995.
    The rate of tax prescribed for methyl methacrylate, under section 
4671(b)(3), is $10.12 per ton. This is based upon a conversion factor 
for methane of 0.47, a conversion factor for ammonia of 0.22, a 
conversion factor for propylene of 0.6, a conversion factor for benzene 
of 0.94, and a conversion factor for sulfuric acid of 1.63.
    The petitioner is Rohm and Haas Texas, Inc., 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: 2916.14.00.20
CAS number: 80-62-6
    Methyl methacrylate is derived from the taxable chemicals methane, 
ammonia, propylene, benzene, and sulfuric acid and is a liquid produced 
predominantly by the catalytic reaction of acetone cyanohydrin and 
methyl alcohol. The methyl methacrylate is then purified by 
distillation.
    The stoichiometric material consumption formula for this substance 
is:

3 CH4 (methane) + NH3 (ammonia) + C3H6 (propylene) 
+ C6H6 (benzene) + H2SO4 (sulfuric acid) + 2.5 
O2 (oxygen) -----> C5H8O2 (methyl methacrylate) + 
NH4HSO4 (ammonium bisulfate) + C6H6O (phenol) + 
CH3OH (methanol) + H2O (water) + 2 H2 (hydrogen)

    Methyl methacrylate 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 77.9 percent by weight of the materials used in 
its production.
Dale D. Goode,
Federal Register Liaison Officer, Assistant Chief Counsel (Corporate).
[FR Doc. 95-25870 Filed 10-18-95; 8:45 am]
BILLING CODE 4830-01-U