Notice2024-03589
Superfund Tax on Chemical Substances; Request To Modify List of Taxable Substances; Notice of Filing for Caprolactam
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
February 22, 2024
Issuing agencies
Treasury DepartmentInternal Revenue Service
Abstract
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.
Full Text
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<title>Federal Register, Volume 89 Issue 36 (Thursday, February 22, 2024)</title>
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[Federal Register Volume 89, Number 36 (Thursday, February 22, 2024)]
[Notices]
[Pages 13400-13401]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[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 <a href="http://www.regulations.gov">http://www.regulations.gov</a>
(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cannot be edited or withdrawn once submitted to the Federal eRulemaking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 <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).
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
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</html>Indexed from Federal Register on February 22, 2024.
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