[Federal Register Volume 60, Number 239 (Wednesday, December 13, 1995)]
[Notices]
[Pages 64096-64097]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-30273]



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DEPARTMENT OF THE TREASURY

Internal Revenue Service


Tax on Certain Imported Substances (Butyl Benzyl Phthalate); 
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, of a 
petition requesting that butyl benzyl phthalate be added to the list of 
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 February 12, 1996. Any 
modification of the list of taxable substances based upon this petition 
would be effective April 1, 1991.

ADDRESSES: Send submissions to: CC:DOM:CORP: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: Ruth Hoffman, Office of Assistant 
Chief Counsel (Passthroughs and Special Industries), (202) 622-3130 
(not a toll-free number).

SUPPLEMENTARY INFORMATION: The petition was received on June 25, 1990. 
The petitioner is Monsanto Company, 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: 2917.39.2000
    CAS number: 85-68-7
    Butyl benzyl phthalate is derived from the taxable chemicals 
methane, propylene, xylene, toluene, and chlorine and is a liquid 
produced predominantly by the reaction of n-butanol and phthalic 
anhydride, followed by a reaction with benzyl chloride in the presence 
of a catalyst. n-butanol is manufactured by the hydrogenation of n-
butyraldehyde, which is derived from propylene and synthesis gas 
(hydrogen and synthesis gas are derived from natural gas). Benzyl 
chloride is produced by direct photochemical chlorination of toluene. 
Phthalic anhydride is produced by the reaction of o-xylene with air in 
the presence of a catalyst.
    The stoichiometric material consumption formula for this substance 
is:

CH<INF>4 (methane)+C<INF>3H<INF>6 (propylene)+C<INF>8H<INF>10 
(xylene)+3 O<INF>2 (oxygen)+C<INF>7H<INF>8 (toluene)+Cl<INF>2 
(chlorine) ----->
C<INF>19H<INF>20O<INF>4 (butyl benzyl phthalate)+2 HCl (hydrochloric 
acid)+H<INF>2 (hydrogen)+2 H<INF>2O (water)

    According to the petition, taxable chemicals constitute 77.25 
percent by weight of the materials used to produce this substance. The 
rate of tax for this substance would be $5.54 per ton. This is based 
upon a conversion factor for methane of 0.05, a conversion factor for 
propylene of 0.17, a conversion factor for xylene of 0.47, a conversion 
factor for toluene of 0.32, and a conversion factor for chlorine of 
0.26.

Comments and Requests for a Public Hearing

    Before a determination is made, consideration will be given to any 
written comments (a signed original and 

[[Page 64097]]
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. 95-30273 Filed 12-12-95; 8:45 am]
BILLING CODE 4830-01-U