[Federal Register Volume 65, Number 50 (Tuesday, March 14, 2000)]
[Notices]
[Pages 13832-13834]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-6258]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service


Tax on Certain Imported Substances (Polyether Polyols); 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, of 
petitions requesting that nine polyether polyol substances 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 May 15, 2000. Any modification 
of the list of taxable substances based upon these petitions would be 
effective October 1, 1992.

ADDRESSES: Send submissions to: CC:DOM:CORP:R (Petition), room 5226, 
Internal Revenue Service, POB 7604, Ben Franklin Station, Washington, 
DC 20044. Submissions may be hand delivered Monday through Friday 
between the hours of 8 a.m. and 5 p.m. to: CC:DOM:CORP:R (Petition), 
Courier's Desk, Internal Revenue Service, 1111 Constitution Avenue NW., 
Washington, DC. Alternatively, taxpayers may send submissions 
electronically to the IRS at Sharon.Y.Horn @m1.irscounsel.treas.gov.

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: The petitions were received on November 21, 
1991. 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.
    The nine polyether polyol substances are liquids. They are produced 
predominantly by the base-catalyzed reaction of cyclic ethers, usually 
ethylene oxide and propylene oxide, with active hydrogen-containing 
compounds (initiators) such as water, glycols, polyols, and amines. The 
reaction is carried out by a discontinuous batch process at elevated 
temperatures and pressures and under an inert atmosphere. The 
particular substance produced depends upon the oxides, initiators, 
reaction conditions, and catalysts used. The stoichiometric amounts of 
oxide reacted on the initiator determine the chain lengths and thus the 
molecular weights. HTS number: 3907.20.00

Poly(propylene)glycol

    CAS number: 025322-69-4.
    Poly(propylene)glycol is derived from the taxable chemicals 
propylene, chlorine, and sodium hydroxide.
    The stoichiometric material consumption formula for this substance 
is: n+1(C3H6 (propylene) + Cl2 
(chlorine) + 2 NaOH (sodium hydroxide)) + H2O (water) 
C3H8O2(C3H6
O)n (poly(propylene)glycol) + n+1(2 NaCl (sodium chloride) + 
H2O (water))
    According to the petition, taxable chemicals constitute at least 90 
percent by weight of the materials used to produce this substance. The 
rate of tax for this substance would be $7.74 per ton. This is based 
upon a conversion factor for propylene of 0.781, a conversion factor 
for chlorine of 1.31, and a conversion factor for sodium hydroxide of 
1.43.

Poly(propylene/ethylene)glycol

    CAS number: 053637-25-5.
    Poly(propylene/ethylene)glycol is derived from the taxable 
chemicals propylene, chlorine, sodium hydroxide, and ethylene.
    The stoichiometric material consumption formula for this substance 
is: n+1(C3H6 (propylene) + Cl2 
(chlorine) + 2 NaOH (sodium hydroxide)) + H2O (water) + m/
2(2 C2H4 (ethylene) + O2 (oxygen)) 
C3H8O2(C3H6
O)n(C2H4O)m 
(poly(propylene/ethylene)glycol) + n+1(2 NaCl (sodium chloride) + 
H2O (water))

[[Page 13833]]

    According to the petition, taxable chemicals constitute at least 90 
percent by weight of the materials used to produce this substance. The 
rate of tax for this substance would be $7.16 per ton. This is based 
upon a conversion factor for propylene of 0.663, a conversion factor 
for chlorine of 1.11, a conversion factor for sodium hydroxide of 1.21, 
and a conversion factor for ethylene of 0.123.

Poly(propyleneoxy)glycerol

    CAS number: 025791-96-2.
    Poly(propyleneoxy)glycerol is derived from the taxable chemicals 
propylene, chlorine, and sodium hydroxide.
    The stoichiometric material consumption formula for this substance 
is: C3H8O3 (glycerine) + 
n(C3H6 (propylene) + Cl2 (chlorine) + 
2 NaOH (sodium hydroxide)) 
C3H8O3(C3H6
O)n (poly(propyleneoxy)glycerol) + n(2 NaCl (sodium 
chloride) + H2O (water))
    According to the petition, taxable chemicals constitute at least 85 
percent by weight of the materials used to produce this substance. The 
rate of tax for this substance would be $6.38 per ton. This is based 
upon a conversion factor for propylene of 0.645, a conversion factor 
for chlorine of 1.08, and a conversion factor for sodium hydroxide of 
1.18.

Poly(ethyleneoxy)glycerol

    CAS number: 031694-55-0.
    Poly(ethyleneoxy)glycerol is derived from the taxable chemical 
ethylene.
    The stoichiometric material consumption formula for this substance 
is: C3H8O3 (glycerine) + m/2(2 
C2H4 (ethylene) + O2 (oxygen)) 
C3H8O3(C2H4
O)m (poly(ethyleneoxy)glycerol)
    According to the petition, taxable chemicals constitute more than 
50 percent by weight of the materials used to produce this substance. 
The rate of tax for this substance would be $3.31 per ton. This is 
based upon a conversion factor for ethylene of 0.681.

Poly(propyleneoxy/ethyleneoxy)glycerol

    CAS number: 009082-00-2.
    Poly(propyleneoxy/ethyleneoxy)glycerol is derived from the taxable 
chemicals propylene, chlorine, sodium hydroxide, and ethylene.
    The stoichiometric material consumption formula for this substance 
is: C3H8O3 (glycerine) 
+n(C3H6 (propylene) + Cl2 (chlorine) + 
2 NaOH (sodium hydroxide)) + m/2(2 C2H4 
(ethylene) + O2 (oxygen)) 
C3H8O3(C3H6
O)n(C2H4O)m 
(poly(propyleneoxy/ethyleneoxy)glycerol) + n(2 NaCl (sodium chloride) + 
H2O (water))
    According to the petition, taxable chemicals constitute at least 85 
percent by weight of the materials used to produce this substance. The 
rate of tax for this substance would be $7.20 per ton. This is based 
upon a conversion factor for propylene of 0.71, a conversion factor for 
chlorine of 1.05, a conversion factor for sodium hydroxide of 1.05, and 
a conversion factor for ethylene of 0.126.

Poly(propyleneoxy)sucrose

    CAS number: 009049-71-2.
    Poly(propyleneoxy)sucrose is derived from the taxable chemicals 
propylene, chlorine, and sodium hydroxide.
    The stoichiometric material consumption formula for this substance 
is: C12H22O11(sucrose) + 
n(C3H6 (propylene) +Cl2 (chlorine) + 2 
NaOH (sodium hydroxide)) > 
C12H22O11(C3H6O)n
 (poly(propyleneoxy)sucrose) + n(2 NaCl (sodium chloride) + 
H2O (water))
    According to the petition, taxable chemicals constitute at least 65 
percent by weight of the materials used to produce this substance. The 
rate of tax for this substance would be $4.18 per ton. This is based 
upon a conversion factor for propylene of 0.423, a conversion factor 
for chlorine of 0.707, and a conversion factor for sodium hydroxide of 
0.773.

Poly(propyleneoxy/ethyleneoxy)sucrose

    CAS number: 026301-10-0.
    Poly(propyleneoxy/ethyleneoxy)sucrose is derived from the taxable 
chemicals propylene, chlorine, sodium hydroxide, and ethylene.
    The stoichiometric material consumption formula for this substance 
is: C12H22O11 (sucrose) + 
n(C3H6 (propylene) + Cl2 (chlorine) + 
2 NaOH (sodium hydroxide)) m/2(2 C2H4 
(ethylene) + O2 (oxygen)) 
C12H22O11(C3H6
O)n(C2H4O)m 
(poly(propyleneoxy/ethyleneoxy)sucrose) + n(2 NaCl (sodium chloride) + 
H2O (water))
    According to the petition, taxable chemicals constitute at least 75 
percent by weight of the materials used to produce this substance. The 
rate of tax for this substance would be $6.11 per ton. This is based 
upon a conversion factor for propylene of 0.549, a conversion factor 
for chlorine of 0.918, a conversion factor for sodium hydroxide of 1.0, 
and a conversion factor for ethylene of 0.14.

Poly(propyleneoxy/ethyleneoxy)diamine

    CAS number: 031568-06-6.
    Poly(propyleneoxy/ethyleneoxy)diamine is derived from the taxable 
chemicals propylene, chlorine, and sodium hydroxide.
    The stoichiometric material consumption formula for this substance 
is: C4H12N2O (aminoethylethanolamine) 
+ n(C3H6 (propylene) + Cl2 (chlorine) 
+ 2 NaOH (sodium hydroxide)) 
C4H12N2O(C3H6O
)n (poly(propyleneoxy/ethyleneoxy)diamine) + n(2 NaCl 
(sodium chloride) + H2O (water))
    According to the petition, taxable chemicals constitute at least 60 
percent by weight of the materials used to produce this substance. The 
rate of tax for this substance would be $4.92 per ton. This is based 
upon a conversion factor for propylene of 0.498, a conversion factor 
for chlorine of 0.833, and a conversion factor for sodium hydroxide of 
0.91.

Poly(propyleneoxy/ethyleneoxy)benzenediamine

    CAS number: 067800-94-6.
    Poly(propyleneoxy/ethyleneoxy)benzenediamine is derived from the 
taxable chemicals propylene, chlorine, sodium hydroxide, and ethylene.
    The stoichiometric material consumption formula for this substance 
is: C7H10N2 (ortho-toluenediamine) + 
n(C3H6 (propylene) + Cl2 (chlorine) + 
2 NaOH (sodium hydroxide)) + m/2(2 C2H4 
(ethylene) + O2 (oxygen)) 
C7H10N2(C3H6O
)n(C2H4O)m 
(poly(propyleneoxy/ethyleneoxy)benzenediamine) + n(2 NaCl (sodium 
chloride) + H2O (water))

[[Page 13834]]

    According to the petition, taxable chemicals constitute at least 60 
percent by weight of the materials used to produce this substance. The 
rate of tax for this substance would be $5.25 per ton. This is based 
upon a conversion factor for propylene of 0.491, a conversion factor 
for chlorine of 0.821, a conversion factor for sodium hydroxide of 
0.897, and a conversion factor for ethylene of 0.081.

Comments and Requests for a Public Hearing

    Before a determination is made, consideration will be given to any 
written and electronic comments 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 or electronic 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. 00-6258 Filed 3-13-00; 8:45 am]
BILLING CODE 4830-01-U