Superfund Tax on Chemical Substances; Request To Modify List of Taxable Substances; Notice of Filing for Caprolactam, 13400-13401 [2024-03589]
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Federal Register / Vol. 89, No. 36 / Thursday, February 22, 2024 / Notices
lotter on DSK11XQN23PROD with NOTICES1
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 nylon 6 be
added to the list of taxable substances
under section 4672(a) of the Internal
Revenue Code (List). The petition
requesting the addition of nylon 6 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
confirmation of the accuracy of the
information published.
(b) Petition Content.
(1) Substance name: Nylon 6.
(2) Petitioner: AdvanSix Inc., an
exporter of nylon 6.
(3) Proposed classification numbers:
(i) HTSUS number: 3908.10.00.
(ii) Schedule B number: 3908.10.0000.
(iii) CAS number: 25038–54–4.
(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: July
1, 2022.
(5) Description from petition:
According to the petition, nylon 6, or
poly(caprolactam), is a semicrystalline
polyamide that has broad use in textile
fibers, engineering plastics, food
packaging films, and monofilaments.
The number ‘‘6’’ in nylon 6 refers to the
number of carbon atoms in each
polymeric repeat unit. Nylon 6 may be
utilized neat or with functional
additives by melt processing into the
desired final form.
Nylon 6 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: The predominant method of
production of nylon 6 is the
‘‘hydrolytically initiated ring-opening
polymerization of caprolactam’’ which
is also referred to in industry literature
as the ‘‘hydrolytic polymerization of
nylon 6.’’ This process is termed
‘‘hydrolytic’’ because water plays a key
role in the chemical mechanism. Nylon
6 is produced almost exclusively
through this method because it is easier
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to control and better adapted for largescale operations.
The hydrolytic polymerization of
nylon 6 generally entails heating a
mixture of caprolactam and water to
∼270°C in an inert atmosphere of
nitrogen and holding until equilibrium
conditions are achieved. The three
principal reactions in this process are
summarized below:
1. In the initiation step of the process,
the caprolactam ring is hydrolyzed via
ring opening with the addition of one
water molecule to become aminocaproic acid.
2. In the next step of the mechanism,
the amino-caproic acid acts as the
initiating species to begin the addition
polymerization by ring-opening of
caprolactam.
3. The last major mechanism step of
the hydrolytic polymerization of nylon
6 is the condensation of primary amine
and carboxylic acid chain-ends to form
an amide linkage in the now higher
molecular weight polyamide with the
simultaneous loss of a water molecule.
(7) Stoichiometric material
consumption equation, based on
process identified as predominant
method of production:
nC6H6 (benzene) + nC3H6 (propylene) +
2.5nO2 (oxygen) + 0.5nCH4 (methane)
+ 5nNH3 (ammonia) + 2nH2O (water)
+ 2nSO2 (sulfur dioxide) →
(C6H11NO)n (nylon 6) + nC3H6O
(acetone) + 2n(NH4)2SO4 (ammonium
sulfate) + 0.5 CO2 (carbon dioxide)
Where n indicates the number of
repeating units.
(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–
0005.
Michael Beker,
Senior Counsel (Passthroughs and Special
Industries), IRS Office of Chief Counsel.
[FR Doc. 2024–03588 Filed 2–21–24; 8:45 am]
BILLING CODE 4830–01–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
Superfund Tax on Chemical
Substances; Request To Modify List of
Taxable Substances; Notice of Filing
for Caprolactam
Internal Revenue Service (IRS),
Treasury.
AGENCY:
PO 00000
Frm 00092
Fmt 4703
Sfmt 4703
Notice of filing and request for
comments.
ACTION:
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 https://
www.regulations.gov (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 www.regulations.gov, 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:
SUMMARY:
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
E:\FR\FM\22FEN1.SGM
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lotter on DSK11XQN23PROD with NOTICES1
Federal Register / Vol. 89, No. 36 / Thursday, February 22, 2024 / Notices
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 ecaprolactam.
(7) Stoichiometric material
consumption equation, based on
process identified as predominant
method of production:
C6H6 (benzene) + C3H6 (propylene) + 2.5
O2 (oxygen) + 0.5 CH4 (methane) +
5 NH3 (ammonia) + 2 H2O (water)
+ 2 SO2 (sulfur dioxide) → C6H11ON
(e-caprolactam) + C3H6O (acetone) +
2(NH4)2SO4 (ammonium sulfate) +
0.5 CO2 (carbon dioxide)
(8) Tax rate calculated by Petitioner,
based on Petitioner’s conversion factors
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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
Sunshine Act Meetings
February 28, 2024, 12:00
p.m. to 3:00 p.m., Eastern time.
PLACE: This meeting will be accessible
via conference call and via Zoom
Meeting and Screenshare. Any
interested person may call (i) 1–929–
205–6099 (US Toll) or 1–669–900–6833
(US Toll), Meeting ID: 939 7399 6796, to
listen and participate in this meeting.
The website to participate via Zoom
Meeting and Screenshare is https://
kellen.zoom.us/meeting/register/tJckcO
qhpz0tE9IAHB0UIDGB3eP2JqS533Ki.
STATUS: This meeting will be open to the
public.
MATTERS TO BE CONSIDERED: The Unified
Carrier Registration Plan Industry
Advisory Subcommittee (the
‘‘Subcommittee’’) will conduct a
meeting to continue its work in
developing and implementing the
Unified Carrier Registration Plan and
Agreement. The subject matter of this
meeting will include:
TIME AND DATE:
Proposed Agenda
I. Call to Order—UCR Industry
Advisory Subcommittee Chair
The Industry Advisory Subcommittee
Chair will welcome attendees, call the
meeting to order, call roll for the
Industry Advisory Subcommittee,
confirm whether a quorum is present,
and facilitate self-introductions.
II. Verification of Publication of
Meeting Notice—UCR Executive
Director
The UCR Executive Director will
verify the publication of the meeting
notice on the UCR website and
distribution to the UCR contact list via
Frm 00093
Fmt 4703
email followed by the subsequent
publication of the notice in the Federal
Register.
III. Review and Approval of
Subcommittee Agenda—UCR Industry
Advisory Subcommittee Chair
For Discussion and Possible
Subcommittee Action
The proposed Agenda will be
reviewed, and the Subcommittee will
consider adoption.
Ground Rules
UNIFIED CARRIER REGISTRATION
PLAN
PO 00000
13401
Sfmt 4703
➢ Subcommittee action only to be
taken in designated areas on agenda.
IV. Review and Approval of Minutes
from the January 17, 2023, Meeting—
UCR Industry Advisory Subcommittee
Chair
For Discussion and Possible
Subcommittee Action
Draft minutes from the January 17,
2023, Industry Advisory Subcommittee
meeting via teleconference will be
reviewed. The UCR Industry Advisory
Subcommittee will consider action to
approve.
V. 2024 Priorities and Project
Development for the Subcommittee—
UCR Industry Advisory Subcommittee
Chair
The UCR Industry Advisory
Subcommittee Chair will provide an
update on current and planned
initiatives, to include the development
of a compliance video series intended to
increase participation in the UCR
focused on brokers, motor carriers, and
bus operators.
VI. Industry Update on Truck
Parking—UCR Industry Advisory
Subcommittee Chair
The UCR Industry Advisory
Subcommittee Chair will provide an
update on truck parking initiatives in
the United States including the status of
legislation currently under
consideration in the United States
Congress as well the status of grant
funding from the United States
Department of Transportation.
VII. Other Items—UCR Industry
Advisory Subcommittee Chair
The UCR Industry Advisory
Subcommittee Chair will call for any
other items Subcommittee members
would like to discuss.
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]]>Agencies
[Federal Register Volume 89, Number 36 (Thursday, February 22, 2024)]
[Notices]
[Pages 13400-13401]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-03589]
-----------------------------------------------------------------------
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.
-----------------------------------------------------------------------
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 https://www.regulations.gov
(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 www.regulations.gov, 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:
C6H6 (benzene) + C3H6
(propylene) + 2.5 O2 (oxygen) + 0.5 CH4 (methane)
+ 5 NH3 (ammonia) + 2 H2O (water) + 2
SO2 (sulfur dioxide) [rarr] C6H11ON
([egr]-caprolactam) + C3H6O (acetone) +
2(NH4)2SO4 (ammonium sulfate) + 0.5
CO2 (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
