[Federal Register Volume 60, Number 81 (Thursday, April 27, 1995)]
[Unknown Section]
[Pages 20794-20795]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-10411]



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DEPARTMENT OF THE TREASURY

Internal Revenue Service


Tax on Certain Imported Substances (Toluenediamine); Filing of 
Petition

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice.

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SUMMARY: This notice announces the acceptance, under Notice 89-61, 
1989-1 CB 717, of a petition requesting that toluenediamine be added to 
the list of [[Page 20795]] 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 June 26, 1995. Any modification 
of the list of taxable substances based upon this petition would be 
effective October 1, 1995.

ADDRESSES: Send submissions to: CC:DOM:CORP:T:R (Petition), room 5228, 
Internal Revenue Service, POB 7604, Ben Franklin Station, Washington, 
DC 20044. In the alternative, submissions may be hand delivered between 
the hours of 8 a.m. and 5 p.m. to: CC:DOM:CORP:T:R (Petition), 
Courier's Desk, Internal Revenue Service, 1111 Constitution Avenue NW, 
Washington, DC.

FOR FURTHER INFORMATION CONTACT: Tyrone J. Montague, Office of 
Assistant Chief Counsel (Passthroughs and Special Industries), (202) 
622-3130 (not a toll-free number).

SUPPLEMENTARY INFORMATION: The petition was received on October 12, 
1994. The petitioner is Air Products and Chemicals, Inc., a 
manufacturer and exporter of this substance. The following is a summary 
of the information contained in the petition. The complete petition is 
available in the Internal Revenue Service Freedom of Information 
Reading Room.

HTS number: 2921.51.10
CAS number: 95-80-7, 823-40-5, 2687-25-4, and 496-72-0

    This substance is derived from the taxable chemicals toluene, 
methane, and ammonia. Toluenediamine is a solid produced predominantly 
by a two-step process. The first step is mixed-acid nitration of 
toluene to produce dinitrotoluene. The second step is the catalytic 
reaction of hydrogen and dinitrotoluene to produce toluenediamine.
    The stoichiometric material consumption formula for this substance 
is:

C<INF>7H<INF>8 (toluene) + 1.5 CH<INF>4 (methane) + 2 NH<INF>3 
(ammonia) + 4 O<INF>2 (oxygen) ----> 
CH<INF>3C<INF>6H<INF>3(NH<INF>2)<INF>2 (toluenediamine) + 5 H<INF>2O 
(water) + 1.5 CO<INF>2 (carbon dioxide)

    According to the petition, taxable chemicals constitute 53.95 
percent by weight of the materials used to produce this substance. The 
rate of tax for this substance would be $5.59 per ton. This is based 
upon a conversion factor for toluene of 0.78, a conversion factor for 
methane of 0.26, and a conversion factor for ammonia of 0.34.

Comments and Requests for a Public Hearing

    Before a determination is made, consideration will be given to any 
written comments (a signed original and eight (8) copies) 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 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. 95-10411 Filed 4-26-95; 8:45 am]
BILLING CODE 4830-01-U