[Federal Register Volume 60, Number 95 (Wednesday, May 17, 1995)]
[Notices]
[Pages 26478-26479]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-12028]



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DEPARTMENT OF THE TREASURY
Internal Revenue Service


Tax on Certain Imported Substances (Hexabromocyclododecane, et 
al.); Notice of Determinations

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice.

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SUMMARY: This notice announces determinations, under Notice 89-61, that 
the list of taxable substances in section 4672(a)(3) will be modified 
to include hexabromocyclododecane and ethylenebistetrabromophthalimide.

EFFECTIVE DATE: This modification is effective October 1, 1993.

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

SUPPLEMENTARY INFORMATION:

Background

    Under section 4672(a), an importer or exporter of any substance may 
request that the Secretary determine whether that 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, 1989-1 CB 717, 
sets forth the rules relating to the determination process.

 Determination

    On May 8, 1995, the Secretary determined that 
hexabromocyclododecane and ethylenebistetrabromophthalimide should be 
added to the list of taxable substances in section 4672(a)(3), 
effective October 1, 1993.
    The rate of tax prescribed for hexabromocyclododecane, under 
section 4671(b)(3), is $4.55 per ton. This is based upon a conversion 
factor for bromine of 0.747 and a conversion factor for butadiene of 
0.253.
    The rate of tax prescribed for ethylenebistetrabromophthalimide, 
under section 4671(b)(3), is $4.51 per ton. This is based upon a 
conversion factor for bromine of 0.672, a conversion factor for 
ethylene of 0.029, a conversion factor for xylene of 0.223, a 
conversion factor for ammonia of 0.036, and a conversion factor for 
chlorine of 0.075.
    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.

Hexabromocyclododecane

HTS number: 2903.59.00.00
CAS number: 3194-55-6

    Hexabromocyclododecane is derived from the taxable chemicals 
bromine and butadiene. Hexabromocyclododecane is a solid produced 
predominantly by reacting cyclododecatriene with bromine in a solvent 
system, followed by a neutralization, a centrifugation, a strip, a 
wash, drying, and grinding (as required).
    The stoichiometric material consumption formula for 
hexabromocyclododecane is:

3 Br<INF>2 (bromine) + 3 C<INF>4H<INF>6 (butadiene) ----> 
C<INF>12H<INF>18Br<INF>6  (hexabromocyclododecane)

    Hexabromocyclododecane 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 100 percent by weight of the materials 
used in its production.

Ethylenebistetrabromophthalimide

HTS number: 2925.19.10.00
CAS number: 32588-76-4

    Ethylenebistetrabromophthalimide is derived from the taxable 
chemicals bromine, ethylene, xylene, ammonia, and chlorine. 
Ethylenebistetrabromophthalimide is a solid produced predominantly by 
sulfonating and brominating phthalic anhydride in the presence of oleum 
and then hydrolyzing the resulting tetrabromophthalic anhydride in the 
presence of a solvent system and reacting it with ethylene diamine. The 
resulting ethylenebistetrabromophthalimide is centrifuged, washed, 
dried/converted, milled, and packaged.
    The stoichiometric material consumption formula for 
ethylenebistetrabromophthalimide is:

4 Br<INF>2 (bromine) + C<INF>2H<INF>4 (ethylene) + 2 C<INF>8H<INF>10 
(o-xylene) + 2 NH<INF>3 (ammonia) + Cl<INF>2 (chlorine) + 6 O<INF>2 
(oxygen) + 8 SO<INF>3 (sulfur trioxide) ----> 
C<INF>18H<INF>4O<INF>4N<INF>2Br<INF>8 
(ethylenebistetrabromophthalimide) + 8 H<INF>2O (water) + 4 SO<INF>2 
(sulfur dioxide) + 4 H<INF>2SO<INF>4 (sulfuric acid) + 2 HCl 
(hydrochloric acid)

    Ethylenebistetrabromophthalimide has been determined to be a 
taxable substance because a review of its [[Page 26479]] stoichiometric 
material consumption formula shows that, based on the predominant 
method of production, taxable chemicals constitute 54.18 percent by 
weight of the materials used in its production.
Dale D. Goode,
Federal Register Liaison Officer, Assistant Chief Counsel (Corporate).
[FR Doc. 95-12028 Filed 5-16-95; 8:45 am]
BILLING CODE 4830-01-U