[Federal Register Volume 89, Number 36 (Thursday, February 22, 2024)]
[Notices]
[Pages 13400-13401]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-03589]


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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 Caprolactam

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 
requesting that caprolactam be added to the list of taxable substances. 
This notice of filing also requests comments on the petition. This 
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 22, 2024.

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-2024-0006 or caprolactam) 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cannot be edited or withdrawn once submitted to the Federal eRulemaking 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 (Notice of 
Filing for Caprolactam), 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. A petition was 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 caprolactam be added to the list of taxable 
substances under section 4672(a) of the Internal Revenue Code (List). 
The petition requesting the addition of caprolactam to the List is 
based on weight and contains the information detailed in paragraph (b) 
of this document. The information is provided for public notice and 
comment pursuant to section 9 of Rev. Proc. 2022-26. The publication of 
petition information in this notice of filing is not a determination 
and does not constitute Treasury Department or IRS

[[Page 13401]]

confirmation of the accuracy of the information published.
    (b) Petition Content:
    (1) Substance name: Caprolactam.
    (2) Petitioner: AdvanSix Inc., an exporter of caprolactam.
    (3) Proposed classification numbers:
    (i) HTSUS number: 2933.71.00.
    (ii) Schedule B number: 2933.71.0000.
    (iii) CAS number: 105-60-2.
    (4) Petition filing dates:
    (i) Petition filing date for purposes of making a determination: 
November 8, 2023.
    (ii) 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.
    (5) Description from petition: According to the petition, 
caprolactam, a white solid, is primarily used to manufacture nylon 
resins and other synthetic fibers.
    Caprolactam is made from benzene, propylene, ammonia, methane, and 
sulfuric acid; however, sulfuric acid is cancelled from the 
stoichiometric material consumption equation due to no net consumption/
production. Taxable chemicals constitute 46.64 percent by weight of the 
materials used to produce this substance.
    (6) Process identified in petition as predominant method of 
production of substance: Caprolactam is produced by first oxidizing 
cumene to yield phenol, which is then partially reduced with hydrogen 
to yield cyclohexanone. Cyclohexanone is then reacted with Raschig 
hydroxylamine to generate cyclohexanone oxime. The cyclohexanone oxime 
undergoes Beckmann rearrangement in the presence of fuming sulfuric 
acid (oleum) to give an intermediate material known as rearrangement 
mass, which is subsequently hydrolyzed and then neutralized with 
ammonia to yield [egr]-caprolactam.
    (7) Stoichiometric material consumption equation, based on process 
identified as predominant method of production:

C<INF>6</INF>H<INF>6</INF> (benzene) + C<INF>3</INF>H<INF>6</INF> 
(propylene) + 2.5 O<INF>2</INF> (oxygen) + 0.5 CH<INF>4</INF> (methane) 
+ 5 NH<INF>3</INF> (ammonia) + 2 H<INF>2</INF>O (water) + 2 
SO<INF>2</INF> (sulfur dioxide) [rarr] C<INF>6</INF>H<INF>11</INF>ON 
([egr]-caprolactam) + C<INF>3</INF>H<INF>6</INF>O (acetone) + 
2(NH<INF>4</INF>)<INF>2</INF>SO<INF>4</INF> (ammonium sulfate) + 0.5 
CO<INF>2</INF> (carbon dioxide)

    (8) Tax rate calculated by Petitioner, based on Petitioner's 
conversion factors for taxable chemicals used in production of 
substance:
    (i) Tax rate: $14.77 per ton.
    (ii) Conversion factors: 0.69 for benzene; 0.37 for propylene; 0.75 
for ammonia; 0.07 for methane.
    (9) Public docket number: IRS-2024-0006.

Michael Beker,
Senior Counsel (Passthroughs and Special Industries), IRS Office of 
Chief Counsel.
[FR Doc. 2024-03589 Filed 2-21-24; 8:45 am]
BILLING CODE 4830-01-P