[Federal Register Volume 89, Number 32 (Thursday, February 15, 2024)]
[Notices]
[Pages 11941-11942]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-03141]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service


Superfund Tax on Chemical Substances; Request To Modify List of 
Taxable Substances; Correction to Filing of Petition for Polyphenylene 
Sulfide

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Supplemental notice of filing and additional request for 
comments.

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SUMMARY: This supplemental notice of filing announces a correction to 
the stoichiometric material consumption equation in the notice of 
filing for the polyphenylene sulfide petition that was published in the 
Federal Register on December 30, 2022. This supplemental notice of 
filing also requests comments on the corrected petition. This 
supplemental notice of filing is not a determination that the list of 
taxable substances is modified.

DATES: Written comments and requests for a public hearing must be 
received on or before April 15, 2024.

[[Page 11942]]


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 gov 
(indicate public docket number IRS-2022-0037 or polyphenylene sulfide) 
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cannot be edited or withdrawn once submitted to the Federal eRulemaking 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:01:PR (Supplemental 
Notice of Filing for Polyphenylene Sulfide), 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).

Request To Add Substance to the List

    (a) Overview.
    A petition was filed pursuant to Rev. Proc. 2022-26 (2022-29 I.R.B. 
90), requesting that polyphenylene sulfide be added to the list of 
taxable substances under section 4672(a) of the Internal Revenue Code 
(List). The notice of filing summarizing the polyphenylene sulfide 
petition and requesting comments was published in the Federal Register 
on December 30, 2022 (87 FR 80579). The Treasury Department and the IRS 
received no written comments in response to the original notice of 
filing and a public hearing was neither requested nor held. After the 
comment period for the notice of filing closed, an error was discovered 
in the stoichiometric material consumption equation for polyphenylene 
sulfide, and the Petitioner subsequently provided a corrected petition.
    This supplemental notice of filing provides the corrected 
stoichiometric material consumption equation for polyphenylene sulfide 
in paragraph (b) of this document. The stoichiometric material 
consumption equation is corrected to read as follows:

on [2 NaOH + C<INF>6</INF>H<INF>6</INF> + 2 Cl<INF>2</INF> + 
H<INF>2</INF>S] [rarr] [C<INF>6</INF>H<INF>4</INF>S]<INF>n</INF> + 2n 
H<INF>2</INF>O + 2n NaCl + 2n HCl

    The other petition information provided in paragraph (b) of this 
document is unchanged from the original notice of filing for 
polyphenylene sulfide. Although the only change from the original 
notice of filing is to the stoichiometric material consumption 
equation, this document also includes all of the other information 
presented on the corrected petition to avoid confusion and is provided 
for public notice and comment pursuant to section 9 of Rev. Proc. 2022-
26.
    The petition requesting the addition of polyphenylene sulfide to 
the List is based on weight and--as noted previously--contains the 
information detailed in paragraph (b) of this document. The publication 
of petition information in this supplemental notice of filing is not a 
determination and does not constitute Treasury Department or IRS 
confirmation of the accuracy of the information published.
    Pursuant to section 10.02 of Rev. Proc. 2022-26, the IRS and 
Petitioner agreed to extend the 180-day determination period.
    (b) Petition Content.
    (1) Substance name: Polyphenylene sulfide.
    According to the petition, these are the commonly used substance 
names for polyphenylene sulfide:

Polyphenylene sulfide
PPS
Poly(p-phenylenesulfide)
Benzene, 1,4-dichloro-, polymer with sodium sulfide.
    (2) Petitioner: Celanese Ltd., an exporter of polyphenylene 
sulfide.
    (3) Proposed classification numbers:
    (i) HTSUS number: 3911.90.2500.
    (ii) Schedule B number: 3911.90.6100.
    (iii) CAS numbers: 25212-74-2, 26125-40-6
    (4) Petition filing dates:
    (i) Petition filing date for purposes of making a determination: 
December 20, 2022.
    (ii) Petition filing date for purposes of section 11.02 of Rev. 
Proc. 2022-26: July 1, 2022.
    (5) Description from petition: According to the petition, 
polyphenylene sulfide is a high-performance thermoplastic, has high 
heat and chemical resistance, and is used in applications such as 
filters, appliance, machine and automobile parts, replacing steel in 
some cases.
    In the final step of the production process, polyphenylene sulfide 
is manufactured by the polymerization of 1,4-dichlorobenzene (p-DCB), a 
taxable substance, with sodium hydrosulfide and sodium hydroxide. 
Sodium hydrosulfide is made from sodium hydroxide and hydrogen sulfide.
    Taxable chemicals constitute 90.0 percent by weight of the 
materials used to produce this substance.
    (6) Process identified in petition as predominant method of 
production of substance:
    Three separate reactions:
    (A) 1,4 dichlorobenzene is made from the reaction of benzene with 2 
equivalents of chlorine.
    (B) Sodium hydrogen sulfide is made from the reaction of hydrogen 
sulfide with sodium hydroxide.
    (C) 1,4-dichlorobenzene (p-dichlorobenzene, p-DCB), sodium 
hydrosulfide (NaSH), and sodium hydroxide (NaOH) are reacted at high 
temperature and high pressure to form polyphenylene sulfide and 
byproduct sodium chloride.
    (7) Stoichiometric material consumption equation, based on process 
identified as predominant method of production:
n [2 NaOH + C<INF>6</INF>H<INF>6</INF> + 2 Cl<INF>2</INF> + 
H<INF>2</INF>S] [rarr] [C<INF>6</INF>H<INF>4</INF>S]<INF>n</INF> + 2n 
H<INF>2</INF>O + 2n NaCl + 2n HCl

    (8) Tax rate calculated by Petitioner, based on Petitioner's 
conversion factors for taxable chemicals used in production of 
substance:
    (i) Tax rate: $14.50 per ton.
    (ii) Conversion factors: 0.74 for sodium hydroxide, 0.72 for 
benzene, 1.31 for chlorine.
    (9) Public docket number: IRS-2022-0037.

Michael Beker,
Senior Counsel (Passthroughs and Special Industries),IRS Office of 
Chief Counsel.
[FR Doc. 2024-03141 Filed 2-14-24; 8:45 am]
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