Notice2024-03141
Superfund Tax on Chemical Substances; Request To Modify List of Taxable Substances; Correction to Filing of Petition for Polyphenylene Sulfide
Primary source
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Published
February 15, 2024
Issuing agencies
Treasury DepartmentInternal Revenue Service
Abstract
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.
Full Text
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<title>Federal Register, Volume 89 Issue 32 (Thursday, February 15, 2024)</title>
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[Federal Register Volume 89, Number 32 (Thursday, February 15, 2024)]
[Notices]
[Pages 11941-11942]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[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 <a href="http://www.regulations.gov">http://www.regulations.gov</a> 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 <a href="http://www.regulations.gov">www.regulations.gov</a>,
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]
BILLING CODE 4830-01-P
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