[Federal Register Volume 88, Number 135 (Monday, July 17, 2023)]
[Notices]
[Pages 45454-45455]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-15020]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service


Superfund Tax on Chemical Substances; Request To Modify List of 
Taxable Substances; Notice of Filing for Methyl Ethyl Ketoxime

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of filing and request for comments.

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SUMMARY: This notice of filing announces that a petition has been filed 
pursuant to Rev. Proc. 2022-26 (2022-29 I.R.B. 90), as modified by Rev. 
Proc. 2023-20 (2023-15 I.R.B. 636), requesting that methyl ethyl 
ketoxime be added to the list of taxable substances under section 
4672(a) of the Internal Revenue Code (List). This notice of filing also 
requests comments on the petition. This notice of filing is not a 
determination that the List is modified.

DATES: Written comments and requests for a public hearing must be 
received on or before September 15, 2023.

ADDRESSES: Commenters are encouraged to submit public comments or 
requests for a public hearing relating to this petition electronically 
via the Federal eRulemaking Portal at http://www.regulations.gov 
(indicate public docket number IRS-2023-0032 or methyl ethyl ketoxime) 
by following the online instructions for submitting comments. Comments 
cannot be edited or withdrawn once submitted to the Federal eRulemaking 
Portal. Alternatively, comments and requests for a public hearing may 
be mailed to: Internal Revenue Service, Attn: CC:PA:LPD:PR (Notice of 
Filing for Methyl Ethyl Ketoxime), Room 5203, P.O. Box 7604, Ben 
Franklin Station, Washington, DC 20044. All comments received are part 
of the public record and subject to public disclosure. All comments 
received will be posted without change to www.regulations.gov, 
including any personal information provided. You should submit only 
information that you wish to make publicly available. If a public 
hearing is scheduled, notice of the time and place for the hearing will 
be published in the Federal Register.

FOR FURTHER INFORMATION CONTACT: Camille Edwards Bennehoff at (202) 
317-6855 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Request To Add Substance to the List

    (a) Overview. The petition requesting the addition of methyl ethyl 
ketoxime to the List is based on weight and contains the information 
detailed in paragraph (b) of this section. The information is provided 
for public notice and comment pursuant to section 9 of Rev. Proc. 2022-
26. The publication of petition content in this notice of filing does 
not constitute Department of the Treasury or IRS confirmation of the 
accuracy of the information published.
    (b) Petition Content.

[[Page 45455]]

    (1) Substance name: Methyl ethyl ketoxime (MEKO).
    (2) Petitioner: AdvanSix Inc., an exporter of methyl ethyl 
ketoxime.
    (3) Proposed classification numbers:
    (i) HTSUS number: 2928.00.10.
    (ii) Schedule B number: 2928.00.1000.
    (iii) CAS number: 96-29-7.
    (4) Petition filing date: July 10, 2023.
    (5) Petition filing date for purposes of section 11.02 of Rev. 
Proc. 2022-26, as modified by section 3 of Rev. Proc. 2023-20: January 
1, 2023.
    (6) Description of petition: According to the petition, MEKO is a 
clear liquid and a high-efficiency, anti-skinning agent that is used 
for air-drying paints, inks, and coatings. The vast majority of the 
production of MEKO is by the conventional method developed in the late 
1960s, via a route that involves condensation of methyl ethyl ketone 
with a hydroxylamine salt in the presence of a base. More specifically, 
methyl ethyl ketone is oximated with Raschig hydroxylamine to yield 
MEKO. More recently a ``peroxide route'' was developed and thought to 
provide a more selective production of MEKO. The peroxide route 
involves the liquid-phase ammoximation of methyl ethyl ketone with 
H2O2, and ammonia, over Ti-MWW catalyst. Because 
of incumbent systems already in use, this peroxide route method is not 
widely adapted.
    MEKO is made from ammonia, sulfuric acid, and butylene; however, 
sulfuric acid is cancelled from the stoichiometric material consumption 
equation due to no net consumption/production. The percent of MEKO 
produced with taxable chemicals is 39.97, by weight, of all materials 
used in the production of MEKO.
    (7) Process identified in petition as predominant method of 
production of substance: The conventional method developed in the late 
1960s, via a route that involves condensation of methyl ethyl ketone 
with a hydroxylamine salt in the presence of a base. More specifically, 
methyl ethyl ketone is oximated with Raschig hydroxylamine to yield 
MEKO.
    (8) Stoichiometric material consumption equation, based on process 
identified as predominant method of production:

C4H8 (butylene) + 5 NH3 (ammonia) + 2 
H2O (water) + 1.5 O2 (oxygen) + 2 SO2 
(sulfur dioxide) [rarr] C4H9ON (methyl ethyl 
ketoxime) + 2 (NH4)2SO4 (ammonium 
sulfate) + H2 (hydrogen)

    (9) Tax rate calculated by Petitioner, based on Petitioner's 
conversion factors for taxable chemicals used in production of 
substance:
    (i) Tax rate: $11.41 per ton.
    (ii) Conversion factors: 0.98 for ammonia; 0.64 for butylene.
    (10) Public docket number: IRS-2023-0032.

Michael Beker,
Senior Counsel (Passthroughs and Special Industries), IRS Office of 
Chief Counsel.
[FR Doc. 2023-15020 Filed 7-14-23; 8:45 am]
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