DECABROMODIPHENYL OXIDE AND TETRABROMOBISPHENOL-A ARE ADDED TO LIST OF TAXABLE SUBSTANCES.
Notice 94-31; 1994-1 C.B. 345
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Notice 94-31
This notice announces a determination, under Notice 89-61, 1989-1 C.B. 717, that the list of taxable substances in section 4672(a)(3) of the Internal Revenue Code will be modified to include decabromodiphenyl oxide and tetrabromobisphenol-A. This modification is effective July 1, 1990.
BACKGROUND
Under section 4672(a) of the Code, an importer or exporter of any substance may request that the Secretary determine whether the 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 sets forth the rules relating to the determination process.
DETERMINATION
On July 9, 1991, the Secretary determined that decabromodiphenyl oxide and tetrabromobisphenol-A should be added to the list of taxable substances in section 4672(a)(3) of the Code, effective July 1, 1990.
The rate of tax prescribed for decabromodiphenyl oxide, under section 4671(b)(3), is $7.41 per ton. This is based upon a conversion factor for bromine of 1.666.
The rate of tax prescribed for tetrabromobisphenol-A, under section 4671(b)(3), is $5.22 per ton. This is based upon a conversion factor for bromine of 1.175.
The petitioner is Ethyl Corporation, a manufacturer and exporter of these substances. No material comments were received on these petitions. The following information is the basis for the determinations.
Decabromodiphenyl oxide
HTS number: 2909.30.07
CAS number: 1163-19-5
Decabromodiphenyl oxide is derived from the taxable chemical bromine. Decabromodiphenyl oxide is a solid produced predominantly by direct bromination of diphenyl oxide in the presence of a catalyst.
The stoichiometric material consumption formula for decabromodiphenyl oxide is:
C12OH10 (diphenyl oxide) + 10 Br2 (bromine) ----->
C12OBr10 (decabromodiphenyl oxide) + 10 HBr (hydrogen bromide)
Decabromodiphenyl oxide 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 90.3 percent by weight of the materials used in its production.
Tetrabromobisphenol-A
HTS number: 2908.10.25
CAS number: 79-94-7
Tetrabromobisphenol-A is derived from the taxable chemical bromine. Tetrabromobisphenol-A is a solid produced predominantly by the reaction of bromine with bisphenol-A.
The stoichiometric material consumption formula for tetrabromobisphenol-A is:
C15H16O2 (bisphenol-A) + 4 Br2 (bromine) ----->
C15H12O2Br4 (tetrabromobisphenol-A) + 4 HBr (hydrogen bromide)
Tetrabromobisphenol-A 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 73.7 percent by weight of the materials used in its production.
The principal author of this notice is Tyrone J. Montague of the Office of Assistant Chief Counsel (Passthroughs and Special Industries). For further information regarding this notice contact Tyrone J. Montague on (202) 622-3130 (not a toll-free call).
- Institutional AuthorsInternal Revenue Service
- Code Sections
- Subject Area/Tax Topics
- Index Termstoxics, imported, definitions and rules
- Jurisdictions
- LanguageEnglish
- Tax Analysts Electronic Citation1994 TNT 64-7
