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26 CFR Ch. I (4–1–13 Edition)
any fee year within three years of September 30th of that fee year.
(d) Application of section 275. The fee
is treated as a tax described in section
275(a)(6) (relating to taxes for which no
deduction is allowed).
§ 52.0–1
§ 51.10T Refund claims (temporary).
Any claim for a refund of the fee
must be made by the person that paid
the fee to the government and must be
made on Form 843, ‘‘Claim for Refund
and Request for Abatement,’’ in accordance with the instructions for that
form.
[T.D. 8442, 57 FR 48186, Oct. 22, 1992]
§ 52.4681–1 Taxes imposed with respect to ozone-depleting chemicals.
(a) Taxes imposed. Sections 4681 and
4682 impose the following taxes with respect to ozone-depleting chemicals
(ODCs):
(1) Tax on ODCs. Section 4681(a)(1)
imposes a tax on ODCs that are sold or
used by the manufacturer or importer
thereof. Except as otherwise provided
in § 52.4682–1 (relating to the tax on
ODCs), the amount of the tax is equal
to the product of—
(i) The weight (in pounds) of the
ODC;
(ii) The base tax amount (determined
under section 4681(b)(1) (B) or (C)) for
the calendar year in which the sale or
use occurs; and
(iii) The ozone-depletion factor (determined under section 4682(b)) for the
ODC.
(2) Tax on imported taxable products.
Section 4681(a)(2) imposes a tax on imported taxable products that are sold
or used by the importer thereof. Except
as otherwise provided in § 52.4682–3 (relating to the tax on imported taxable
products), the tax is computed by reference to the weight of the ODCs used
as materials in the manufacture of the
product. The amount of tax is equal to
the tax that would have been imposed
on the ODCs under section 4681(a)(1) if
the ODCs had been sold in the United
States on the date of the sale or use of
the imported product. The weight of
such ODCs is determined under
§ 52.4682–3.
(3) Floor stocks tax—(i) Imposition of
tax. Section 4682(h) imposes a floor
stocks tax on ODCs that—
(A) Are held by any person other
than the manufacturer or importer of
the ODC on a date specified in paragraph (a)(3)(ii) of this section; and
§ 51.11T Effective/applicability
date
(temporary).
Sections 51.1T through 51.10T apply
to any fee on branded prescription drug
sales that is due on or after September
30, 2011.
§ 51.12T Expiration date (temporary).
The applicability of §§ 51.1T through
51.10T expires August 15, 2014.
§ 51.6302–1T Method of paying the
branded prescription drug fee (temporary).
(a) Fee to be paid by electronic funds
transfer. Under the authority of section
6302(a), the fee imposed on branded prescription drug sales by section 9008 and
§ 51.5T must be paid by electronic funds
transfer as defined in § 31.6302–1(h)(4)(i),
as if the fee were a depository tax. For
the time for paying the fee, see § 51.8T.
(b) Effective/applicability date. This
section applies on and after August 18,
2011.
(c) Expiration date. The applicability
of this section expires August 15, 2014.
PART 52—ENVIRONMENTAL TAXES
Sec.
52.0–1 Introduction.
52.4681–1 Taxes imposed with respect to
ozone-depleting chemicals.
52.4682–1 Ozone-depleting chemicals.
52.4682–2 Qualifying sales.
52.4682–3 Imported taxable products.
52.4682–4 Floor stocks tax.
52.4682–5 Exports.
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Introduction.
The regulations in this part 52 are
designated ‘‘Environmental Tax Regulations.’’ The regulations relate to the
environmental taxes imposed by chapter 38 of the Internal Revenue Code.
See part 40 of this chapter for regulations relating to returns, payments,
and deposits of taxes imposed by chapter 38.
AUTHORITY: 26 U.S.C. 7805.
Section 52.4682–3 also issued under 26 U.S.C.
4682(c)(2);
Section 52.4682–5 also issued under 26 U.S.C.
4662(e)(4).
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§ 52.4681–1
(B) Are held on such date for sale or
for use in further manufacture.
(ii) Dates on which tax imposed. The
floor stocks tax is imposed on January
1 of each calendar year after 1989.
(iii) Amount of tax. Except as otherwise provided in § 52.4682–4 (relating to
the floor stocks tax), the amount of the
floor stocks tax is equal to the excess
of—
(A) The tax that would be imposed on
the ODC under section 4681(a)(1) if a
sale or use of the ODC by its manufacturer or importer occurred on the date
the floor stocks tax is imposed (the
tentative tax amount), over
(B) The sum of the taxes previously
imposed (if any) on the ODC under sections 4681 and 4682.
(b) Cross-references—(1) Tax on ODCs.
Additional rules relating to the tax on
ODCs are contained in §§ 52.4682–1 and
52.4682–2.
(2) Tax on imported taxable products.
Additional rules relating to the tax on
imported taxable products are contained in § 52.4682–3.
(3) Floor stocks tax. Additional rules
relating to the floor stocks tax are contained in § 52.4682–4.
(4) Returns, payments, and deposits of
tax. Rules requiring returns reporting
the taxes imposed by sections 4681 and
4682 are contained in part 40 of this
chapter. Part 40 of this chapter also
provides rules relating to the use of
Government depositaries and to the
time for filing returns and making payments of tax.
(c) Definitions of general application.
The following definitions set forth the
meaning of certain terms for purposes
of the regulations under sections 4681
and 4682:
(1) Ozone-depleting chemical. The term
‘‘ozone-depleting
chemical’’
(ODC)
means any chemical listed in section
4682(a)(2).
(2) United States. The term ‘‘United
States’’ has the meaning given such
term by section 4612(a)(4). Under section 4612(a)(4)—
(i) The term ‘‘United States’’ means
the 50 States, the District of Columbia,
the Commonwealth of Puerto Rico, any
possession of the United States, the
Commonwealth of the Northern Mariana Islands, and the Trust Territory of
the Pacific Islands; and
(ii) The term includes—
(A) Submarine seabed and subsoil
that would be treated as part of the
United States (as defined in paragraph
(c)(2)(i) of this section) under the principles of section 638 relating to continental shelf areas; and
(B) Foreign trade zones of the United
States.
(3) Manufacture; manufacturer. The
term ‘‘manufacture’’ when used with
respect to any ODC or imported product includes its production, and the
term ‘‘manufacturer’’ includes a producer.
(4) Entry into United States for consumption, use, or warehousing—(i) In
general. Except as otherwise provided
in this paragraph (c)(4), the term ‘‘entered into the United States for consumption, use, or warehousing’’ when
used with respect to any goods means—
(A) Brought into the customs territory of the United States (the customs
territory) if applicable customs law requires that the goods be entered into
the customs territory for consumption,
use, or warehousing;
(B) Admitted into a foreign trade
zone for any purpose if like goods
brought into the customs territory for
such purpose would be entered into the
customs territory for consumption,
use, or warehousing; or
(C) Imported into any other part of
the United States (as defined in paragraph (c)(2) of this section) for any purpose if like goods brought into the customs territory for such purpose would
be entered into the customs territory
for consumption, use, or warehousing.
(ii) Entry for transportation and exportation. Goods entered into the customs
territory for transportation and exportation are not goods entered for consumption, use, or warehousing.
(iii) Entries described in two or more
provisions. In the case of any goods
with respect to which entries are described in two or more provisions of
paragraph (c)(4)(i) of this section, only
the first such entry is taken into account. Thus, if the admission of goods
into a foreign trade zone is an entry
into the United States for consumption, use, or warehousing, the subsequent entry of such goods into the customs territory will not be treated as an
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§ 52.4682–1
26 CFR Ch. I (4–1–13 Edition)
(iii) Cross-references to exceptions. For
exceptions to the rule contained in
paragraph (c)(7)(i) of this section, see—
(A) Section 52.4682–1(b)(2)(iii) (relating to mixture elections), § 52.4682–
1(b)(2)(iv) (relating to mixtures for export), and § 52.4682–1(b)(2)(v) (relating to
mixtures for use as a feedstock);
(B) Section 52.4682–3(c)(2) (relating to
the election to treat entry of an imported taxable product as use); and
(C) Section 52.4682–3(c)(3) (relating to
treating sale of an article incorporating an imported taxable product
as the first sale or use of the product).
(8) Pound. The term ‘‘pound’’ means a
unit of weight that is equal to 16 avoirdupois ounces.
(9) Post-1990 ODC; post-1989 ODC. The
term ‘‘post-1990 ODC’’ means any ODC
that is listed below Halon–2402 in the
table contained in section 4682(a)(2).
The term ‘‘post-1989 ODC’’ means any
ODC other than a post-1990 ODC.
(d) Effective date. Sections 52.4681–0,
52.4681–1, 52.4682–1, 52.4682–2, 52.4682–3,
and 52.4682–4 are effective as of January
1, 1990, and apply to—
(1) Post-1989 ODCs that the manufacturer or importer thereof first sells or
uses after December 31, 1989, and post1990 ODCs that the manufacturer or
importer thereof first sells or uses
after December 31, 1990;
(2) Imported taxable products that
the importer thereof first sells or uses
after December 31, 1989 (but, in the case
of products first sold or used before
January 1, 1991, by taking into account
only the post-1989 ODCs used as materials in their manufacture); and
(3) Post-1989 ODCs held for sale or for
use in further manufacture by any person other than the manufacturer or importer thereof on January 1, 1990, and
post-1989 and post-1990 ODCs that are
so held on January 1 of each calendar
year after 1990.
entry into the United States for consumption, use, or warehousing.
(iv) Certain imported products not entered
for
consumption,
use,
or
warehousing. Imported products that
are entered into the United States for
consumption, use, or warehousing do
not include any imported products
that—
(A) Are entered into the customs territory under Harmonized Tariff Schedule (HTS) heading 9801, 9802, 9803, or
9813;
(B) Would, if entered into the customs territory, be entered under any
such heading; or
(C) Are brought into the United
States by an individual if the product
is brought in for use by the individual
and is not expected to be used in a
trade or business other than a trade or
business of performing services as an
employee.
(5) Importer. The term ‘‘importer’’
means the person that first sells or
uses goods after their entry into the
United States for consumption, use, or
warehousing (within the meaning of
paragraph (c)(4) of this section).
(6) Sale. The term ‘‘sale’’ means the
transfer of title or of substantial incidents of ownership (whether or not delivery to, or payment by, the buyer has
been made) for consideration which
may include money, services, or property. The determination as to the time
a sale occurs shall be made under applicable local law.
(7) Use—(i) In general. Except as otherwise provided in regulations under
sections 4681 and 4682, ODCs and imported taxable products are used when
they are—
(A) Used as a material in the manufacture of an article, whether by incorporation into such article, chemical
transformation, release into the atmosphere, or otherwise; or
(B) Put into service in a trade or
business or for production of income.
(ii)
Loss,
destruction,
packaging,
warehousing, and repair. The loss, destruction, packaging (including repackaging), warehousing, or repair of
ODCs and imported taxable products is
not a use of the ODC or product lost,
destroyed, packaged, warehoused, or
repaired.
[T.D. 8370, 56 FR 56305, Nov. 4, 1991, as amended by T.D. 8442, 57 FR 48186, Oct. 22, 1992; T.D.
8622, 60 FR 52849, Oct. 11, 1995]
§ 52.4682–1 Ozone-depleting chemicals.
(a) Overview. This section provides
rules relating to the tax imposed on
ozone-depleting
chemicals
(ODCs)
under section 4681, including rules for
identifying taxable ODCs and determining when the tax is imposed, and
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by a chemical formula, and an ODC is
contained in a mixture only if the
chemical identity of the ODC is not
changed. Thus, except as provided in
paragraphs (b)(2)(iii), (iv), and (v) of
this section—
(A) The tax on the post-1989 ODCs (as
defined in § 52.4681–1(c)(9)) contained in
mixtures created after December 31,
1989, or on the post-1990 ODCs (as defined in § 52.4681–1(c)(9)) contained in
mixtures created after December 31,
1990, is imposed when the mixture is
created and not on any subsequent sale
or use of the mixture; and
(B) No tax is imposed under section
4681 on the post-1989 ODCs contained in
mixtures created before January 1,
1990, or on the post-1990 ODCs contained in mixtures created before January 1, 1991.
(iii) Mixture elections—(A) Permitted
elections. The only elections permitted
under this paragraph (b)(2)(iii) are—
(1) An election for the first calendar
quarter beginning after December 31,
1989, and all subsequent periods (the
1990 election); and
(2) An election for the first calendar
quarter beginning after December 31,
1990, and all subsequent periods (the
1991 election).
(B) In general. A manufacturer or importer may elect to treat the sale or
use of mixtures containing ODCs as the
first sale or use of the ODCs contained
in the mixtures. If a 1990 election is
made under this paragraph (b)(2)(iii),
the tax on post-1989 ODCs contained in
a mixture sold or used after December
31, 1989 (including any such mixture
created before January 1, 1990) is imposed on the date of such sale or use.
Similarly, if a 1991 election is made
under this paragraph (b)(2)(iii), the tax
on post-1990 ODCs contained in a mixture sold or used after December 31,
1990 (including any such mixture created before January 1, 1991) is imposed
on the date of such sale or use.
(C) Applicability of elections. An election under this paragraph (b)(2)(iii) applies—
(1) In the case of a 1990 election, to
all post-1989 ODCs contained in mixtures sold or used by the manufacturer
or importer after December 31, 1989 (including any such mixture created before January 1, 1990); and
rules prescribing special treatment for
certain ODCs. See § 52.4681–1(a)(1) and
(c) for general rules and definitions relating to the tax on ODCs.
(b) Taxable ODCs; taxable event—(1)
Taxable ODCs—(i) In general. Except as
provided in paragraphs (c) through (g)
of this section, an ODC is taxable if—
(A) It is listed in section 4682(a)(2) on
the date it is sold or used by its manufacturer or importer; and
(B) It is manufactured in the United
States or entered into the United
States for consumption, use, or
warehousing.
(ii) Storage containers. An ODC described in paragraph (b)(1)(i) of this
section is taxable without regard to
the type or size of storage container in
which the ODC is held.
(iii) Example. The application of this
paragraph (b)(1) may be illustrated by
the following example:
Example. A brings CFC–12, an ODC listed in
section 4682(a)(2), into the customs territory
and enters the CFC–12 for transportation and
exportation. The ODC is not taxable because
it is not entered for consumption, use, or
warehousing. The ODC also would not be taxable if it were admitted to a foreign trade
zone (rather than brought into the customs
territory) for transportation and exportation.
(2) Taxable event—(i) In general—(A)
General rule. The tax on an ODC is imposed when the ODC is first sold or
used (as defined in § 52.4681–1(c)(6) and
(7)) by its manufacturer or importer.
(B) Example. The application of this
paragraph (b)(2)(i) may be illustrated
by the following example:
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Example. A enters CFC–113, an ODC listed
in section 4682(a)(2), into the United States
for consumption, use, or warehousing. A
warehouses the CFC–113 and then decides to
ship the ODC to its factory outside the
United States (as defined in § 52.4681–1 (c)(2)).
The CFC–113 is a taxable ODC because the requirements of paragraph (b)(1)(i) of this section have been met. However, tax is not imposed on the ODC because there is no taxable
event. A did not sell the ODC and, under
§ 52.4681–1(c)(7), warehousing is not a use.
(ii) Mixtures. Except as provided in
paragraphs (b)(2)(iii), (iv), and (v) of
this section, the creation of a mixture
containing two or more ingredients is
treated as a taxable use of the ODCs
contained in the mixture. For this purpose, a mixture cannot be represented
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(2) In the case of a 1991 election, to
all post-1990 ODCs contained in mixtures sold or used by the manufacturer
or importer after December 31, 1990 (including any such mixture created before January 1, 1991).
(D) Making the election; revocation. An
election under this paragraph (b)(2)(iii)
shall be made in accordance with the
instructions for the return on which
the manufacturer or importer reports
liability for tax under section 4681.
After October 9, 1990, the election may
be revoked only with the consent of the
Commissioner.
(iv) Special rule for exports. The creation of a mixture for export is not a
taxable use of the ODCs contained in
the mixture. If a manufacturer or importer sells a mixture for export,
§ 52.4682–5 applies to the ODCs contained in the mixture. See § 52.4682–5(e)
for rules relating to liability of a purchaser for tax if the mixture is not exported.
(v) Special rule for use as a feedstock.
The creation of a mixture for use as a
feedstock (within the meaning of paragraph (c) of this section) is not a taxable use of the ODCs contained in the
mixture.
(c) ODCs used as a feedstock—(1) Exemption from tax. No tax is imposed on
an ODC if the manufacturer or importer of the ODC—
(i) Uses the ODC as a feedstock in the
manufacture of another chemical; or
(ii) Sells the ODC in a qualifying sale
(within the meaning of paragraph (c)(4)
of this section) for use as a feedstock.
(2) Excess payments—(i) In general.
Under section 4682(d)(2)(B), a credit or
refund is allowed to a person if—
(A) The person uses an ODC as a feedstock; and
(B) The amount of any tax paid with
respect to the ODC under section 4681
or 4682 was not determined under section 4682(d)(2)(A).
(ii) Procedural rules. See section 6402
and the regulations thereunder for
rules relating to claiming a credit or
refund of tax paid with respect to ODCs
that are used as a feedstock. A credit
against the income tax is not allowed
for the amount determined under section 4682(d)(2)(B).
(3) Definition. An ODC is used as a
feedstock only if the ODC is entirely
consumed (except for trace amounts) in
the manufacture of another chemical.
Thus, the transformation of an ODC
into one or more new compounds (such
as the transformation of CFC–113 into
chlorotrifluoroethylene (CTFE or 1113),
of CFC–113 into CFC–115 and CFC–116,
or of carbon tetrachloride into hydrochloric acid during petroleum refining
or incineration) is treated as use as a
feedstock. On the other hand, the ODCs
used in a mixture (including an
azeotrope such as R–500 or R–502) are
not used as a feedstock.
(4) Qualifying sale. A sale of ODCs for
use as a feedstock is a qualifying sale if
the requirements of § 52.4682–2(b)(1) are
satisfied with respect to such sale.
(d) ODCs used in the manufacture of
rigid foam insulation—(1) Phase-in of
tax—(i) In general. The amount of tax
imposed on an ODC is determined
under section 4682(g) if the manufacturer or importer of the ODC—
(A) Uses the ODC during 1990, 1991,
1992, or 1993 in the manufacture of rigid
foam insulation; or
(B) Sells the ODC in a qualifying sale
(within the meaning of paragraph (d)(5)
of this section) during 1990, 1991, 1992,
or 1993.
(ii) Amount of tax. Under section
4682(g), ODCs described in paragraph
(d)(1)(i) of this section are not taxed if
sold or used during 1990 and are taxed
at a reduced rate if sold or used during
1991, 1992, or 1993.
(2) Excess payments—(i) In general.
Under section 4682(g)(3), a credit
against income tax or a refund is allowed to a person if—
(A) The person uses an ODC during
1990, 1991, 1992, or 1993 in the manufacture of rigid foam insulation; and
(B) The amount of any tax paid with
respect to the ODC under section 4681
or 4682 was not determined under section 4682(g).
(ii) Procedural rules—(A) The amount
determined under section 4682(g)(3)
shall be treated as a credit described in
section 34(a) (relating to credits for
gasoline and special fuels) unless a
claim for refund has been filed.
(B) See section 6402 and the regulations thereunder for rules relating to
claiming a credit or refund of the tax
paid with respect to ODCs that are
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(f) Methyl chloroform; reduced rate of
tax in 1993. The amount of tax imposed
on methyl chloroform is determined
under section 4682(g)(5) if the manufacturer or importer of the methyl chloroform sells or uses it during 1993.
(g) ODCs used as medical sterilants—(1)
Phase-in of tax. The amount of tax imposed on an ODC is determined under
section 4682(g)(4) if the manufacturer
or importer of the ODC—
(i) Uses the ODC during 1993 as a
medical sterilant; or
(ii) Sells the ODC in a qualifying sale
(within the meaning of paragraph (g)(4)
of this section) during 1993.
(2) Excess payments—(i) In general.
Under section 4682(g)(4)(B), a credit
against income tax (without interest)
or a refund of tax (without interest) is
allowed to a person if—
(A) The person uses an ODC during
1993 as a medical sterilant; and
(B) The amount of any tax paid with
respect to the ODC under section 4681
or 4682 exceeds the amount that would
have been determined under section
4682(g)(4).
(ii) Amount of credit or refund. The
amount of credit or refund of tax is
equal to the excess of—
(A) The tax that was paid with respect to the ODCs under sections 4681
and 4682; over
(B) The tax that would have been imposed under section 4682(g)(4).
(iii) Procedural rules. (A) The amount
determined under section 4682(g)(4)(B)
and paragraph (g)(2)(ii) of this section
is treated as a credit described in section 34(a) (relating to credits for gasoline and special fuels) unless a claim
for refund has been filed.
(B) See section 6402 and the regulations under that section for procedural
rules relating to claiming a credit or
refund of tax.
(3) Definition of use as a medical
sterilant. An ODC is used as a medical
sterilant if it is used in the manufacture of sterilant gas.
(4) Qualifying sale. A sale of an ODC
for use as a medical sterilant is a qualifying sale if the requirements of
§ 52.4682–2(b)(3) are satisfied with respect to the sale.
(h) ODCs used as propellants in metered-dose inhalers—(1) Reduced rate of
tax. The amount of tax imposed on an
used in the manufacture of rigid foam
insulation.
(3) Definition—(i) Rigid foam insulation. The term ‘‘rigid foam insulation’’
means any rigid foam that is designed
for use as thermal insulation in buildings, equipment, appliances, tanks,
railcars, trucks, or vessels, or on pipes,
including any such rigid foam actually
used for purposes other than insulation. Information such as test reports
on R-values and advertising material
reflecting R-value claims for a particular rigid foam may be used to show
that such rigid foam is designed for use
as thermal insulation.
(ii) Rigid foam—(A) In general. The
term ‘‘rigid foam’’ means any closed
cell polymeric foam (whether or not
rigid) in which chlorofluorocarbons are
used to fill voids within the polymer.
(B) Examples of rigid foam products.
Rigid foam includes extruded polystyrene foam, polyisocyanurate foam,
spray and pour-in-place polyurethane
foam, polyethylene foam, phenolic
foam, and any other product that the
Commissioner identifies as rigid foam
in a pronouncement of general applicability. The form of a product identified
under this paragraph (d)(3)(ii)(B) does
not affect its character as rigid foam.
Thus, such products are rigid foam
whether in the form of a board, sheet,
backer rod, or wrapping, or in a form
applied by spraying, pouring, or frothing.
(4) Use in manufacture. An ODC is
used in the manufacture of rigid foam
insulation if it is incorporated into
such product or is expended as a propellant or otherwise in the manufacture or application of such product.
(5) Qualifying sale. A sale of an ODC
for use in the manufacture of rigid
foam insulation is a qualifying sale if
the requirements of § 52.4682–2(b)(2) are
satisfied with respect to such sale.
(e) Halons; phase-in of tax. The
amount of tax imposed on Halon-1211,
Halon-1301, or Halon-2402 (Halons) is
determined under section 4682(g) if the
manufacturer or importer of Halons
sells or uses Halons during 1990, 1991,
1992, or 1993. Under section 4682(g),
Halons are not taxed if sold or used
during 1990 and are taxed at a reduced
rate if sold or used during 1991, 1992, or
1993.
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ODC is determined under section
4682(g)(4) if the manufacturer or importer of the ODC—
(i) Uses the ODC after 1992 as a propellant in a metered-dose inhaler; or
(ii) Sells the ODC in a qualifying sale
(within the meaning of paragraph (h)(4)
of this section) after 1992.
(2) Excess payments—(i) In general.
Under section 4682(g)(4)(B), a credit
against income tax (without interest)
or a refund of tax (without interest) is
allowed to a person if—
(A) The person uses an ODC after 1992
as a propellant in a metered-dose inhaler; and
(B) The amount of any tax paid with
respect to the ODC under section 4681
or 4682 exceeds the amount that would
have been determined under section
4682(g)(4).
(ii) Amount of credit or refund. The
amount of credit or refund of tax is
equal to the excess of—
(A) The tax that was paid with respect to the ODCs under sections 4681
and 4682; over
(B) The tax that would have been imposed under section 4682(g)(4).
(iii) Procedural rules—(A) The amount
determined under section 4682(g)(4)(B)
and paragraph (h)(2)(ii) of this section
is treated as a credit described in section 34(a) (relating to credits for gasoline and special fuels) unless a claim
for refund has been filed.
(B) See section 6402 and the regulations under that section for procedural
rules relating to claiming a credit or
refund of tax.
(3) Definition of metered-dose inhaler. A
metered-dose inhaler is an aerosol device that delivers a precisely-measured
dose of a therapeutic drug.
(4) Qualifying sale. A sale of an ODC
for use as a propellant for a metereddose inhaler is a qualifying sale if the
requirements of § 52.4682–2(b)(4) are satisfied with respect to the sale.
(i) [Reserved]
(j) Exports; cross-reference. For the
treatment of exports of ODCs, see
§ 52.4682–5.
(k) Recycling. [Reserved]
§ 52.4682–2
Qualifying sales.
(a) In general—(1) Special rules applicable to certain sales. Special rules apply
to sales of ODCs in the following cases:
(i) Under section 4682(d)(2), § 52.4682–
1(c), and § 52.4682–4(b)(2)(v) (relating to
ODCs used as a feedstock), ODCs sold
in qualifying sales are not taxed.
(ii) Under section 4682(g), § 52.4682–
1(d), and § 52.4682–4(d)(2) (relating to
ODCs used in the manufacture of rigid
foam insulation), ODCs sold in qualifying sales are not taxed in 1990 and are
taxed at a reduced rate in 1991, 1992,
and 1993.
(iii) Under section 4682(g)(4) and
§ 52.4682–1(g) (relating to ODCs used as
medical sterilants), ODCs sold in qualifying sales are taxed at a reduced rate
in 1993.
(iv) Under section 4682(g)(4) and
§ 52.4682–1(h) (relating to ODCs used as
propellants in metered-dose inhalers),
ODCs sold in qualifying sales are taxed
at a reduced rate in years after 1992.
(2) Qualifying sales. A sale of ODCs is
not a qualifying sale unless the requirements of this section are satisfied.
Although registration with the Internal Revenue Service is not required to
establish that a sale of ODCs is a qualifying sale, the certificates required by
this section shall be made available for
inspection by internal revenue agents
and officers.
(b) Requirements for qualification—(1)
Use as a feedstock. A sale of ODCs is a
qualifying
sale
for
purposes
of
§§ 52.4682–1(c) and 52.4682–4(b)(2)(v) if the
manufacturer or importer of the
ODCs—
(i) Obtains a certificate in substantially the form set forth in paragraph
(d)(2) of this section from the purchaser
of the ODCs; and
(ii) Relies on the certificate in good
faith.
(2) Use in the manufacture of rigid foam
insulation. A sale of ODCs is a qualifying sale for purposes of §§ 52.4682–1(d)
and 52.4682–4(d)(2) if the manufacturer
or importer of the ODCs—
(i) Obtains a certificate in substantially the form set forth in paragraph
(d)(3) of this section from the purchaser
of the ODCs; and
(ii) Relies on the certificate in good
faith.
[T.D. 8370, 56 FR 56307, Nov. 4, 1991, as amended by T.D. 8622, 60 FR 52849, Oct. 11, 1995]
22
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229103
emcdonald on DSK67QTVN1PROD with CFR
Internal Revenue Service, Treasury
§ 52.4682–2
(3) Use as medical sterilants. A sale of
ODCs is a qualifying sale for purposes
of § 52.4682–1(g) if the manufacturer or
importer of the ODCs—
(i) Obtains a certificate in substantially the form set forth in paragraph
(d)(4) of this section from the purchaser
of the ODCs; and
(ii) Relies on the certificate in good
faith.
(4) Use as propellants in metered-dose
inhalers. A sale of ODCs is a qualifying
sale for purposes of §§ 52.4682–1(h) and
52.4682–4(b)(2)(vii) if the manufacturer
or importer of the ODCs—
(i) Obtains a certificate in substantially the form set forth in paragraph
(d)(5) of this section from the purchaser
of the ODCs; and
(ii) Relies on the certificate in good
faith.
(c) Good faith reliance—(1) In general.
The requirements of paragraph (b) of
this section are not satisfied with respect to a sale of ODCs and the sale is
not a qualifying sale if at the time of
the sale—
(i) The manufacturer or importer has
reason to believe that the purchaser
will use the ODCs other than for the
purpose set forth in the certificate; or
(ii) The Internal Revenue Service has
notified the manufacturer or importer
that the purchaser’s right to provide a
certificate has been withdrawn.
(2) Withdrawal of right to provide a certificate. The Internal Revenue Service
may withdraw the right of a purchaser
to provide a certificate to its supplier
if such purchaser uses the ODCs to
which its certificate applies other than
for the purpose set forth in such certificate, or otherwise fails to comply
with the terms of the certificate. The
Internal Revenue Service may notify
the supplier to whom the purchaser
provided the certificate that the purchaser’s right to provide a certificate
has been withdrawn.
(d) Certificate—(1) In general—(i) Rules
relating to all certificates. This paragraph (d) sets forth certificates that
satisfy the requirements of paragraphs
(b)(1) through (4) of this section. The
certificate shall consist of a statement
executed and signed under penalties of
perjury by a person with authority to
bind the purchaser. A certificate provided under paragraph (d)(2) or (5) of
this section may apply to a single purchase or to multiple purchases and
need not specify an expiration date. A
certificate provided under paragraph
(d)(3) or (4) of this section may apply to
a single purchase or multiple purchases, and will expire as of December
31, 1993, unless an earlier expiration
date is specified in the certificate. A
new certificate must be given to the
supplier if any information on the current certificate changes. The certificate may be included as part of any
business records normally used to document a sale.
(ii) Special rule relating to certificates
executed before January 1, 1992. Certificates provided under this paragraph
(d)(2) and executed before January 1,
1992, satisfy the requirements of paragraph (b) of this section if they are in
substantially the same form as certificates set forth in § 52.4682–2T.
(2) Certificate relating to ODCs used as
a feedstock—(i) ODCs that will be resold
for use by the second purchaser as a feedstock. If the purchaser will resell the
ODCs to a second purchaser for use by
such second purchaser as a feedstock,
the certificate provided by the purchaser must be in substantially the following form:
CERTIFICATE OF PURCHASER OF CHEMICALS
THAT WILL BE RESOLD FOR USE BY THE SECOND PURCHASER AS A FEEDSTOCK
(To support tax-free sales under section
4682(d)(2) of the Internal Revenue Code.)
Date lllllllllllllllllllll
The undersigned purchaser (‘‘Purchaser’’)
hereby certifies the following under penalties of perjury:
The following percentage of ozone-depleting chemicals purchased from
llllllllllllllllllllllll
(name and address of seller)
will be resold by Purchaser to persons (Second Purchasers) that certify to Purchaser
that they are purchasing the ozone-depleting
chemicals for use as a feedstock (as defined
in § 52.4682–1(c)(3) of the Environmental Tax
Regulations).
Product
Percentage
CFC–11.
CFC–12.
CFC–113.
CFC–114.
CFC–115.
Carbon tetrachloride.
Methyl chloroform.
Other (specify).
23
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emcdonald on DSK67QTVN1PROD with CFR
§ 52.4682–2
26 CFR Ch. I (4–1–13 Edition)
This certificate applies to (check and complete as applicable):
lll All shipments to Purchaser at the following location(s):
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
lll All shipments to Purchaser under the
following Purchaser account number(s):
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
lll All shipments to Purchaser under the
following purchase order(s):
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
lll One or more shipments to Purchaser
identified as follows:
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
Purchaser will not claim a credit or refund
under section 4682(d)(2)(B) of the Internal
Revenue Code for any ozone-depleting chemicals covered by this certificate.
Purchaser understands that any use by
Purchaser of the ozone-depleting chemicals
to which this certificate applies other than
for the purpose set forth in this certificate
may result in the withdrawal by the Internal
Revenue Service of Purchaser’s right to provide a certificate.
Purchaser will retain the business records
needed to document the sales covered by this
certificate and will make such records available for inspection by Government officers.
Purchaser also will retain and make available for inspection by Government officers
the certificates of its Second Purchasers.
Purchaser has not been notified by the Internal Revenue Service that its right to provide a certificate has been withdrawn. In addition, the Internal Revenue Service has not
notified Purchaser that the right to provide
a certificate has been withdrawn from any
Second Purchaser who will purchase ozonedepleting chemicals to which this certificate
applies.
Purchaser understands that the fraudulent
use of this certificate may subject Purchaser
and all parties making such fraudulent use
of this certificate to a fine or imprisonment,
or both, together with the costs of prosecution.
llllllllllllllllllllllll
Signature
llllllllllllllllllllllll
Printed or typed name of person signing
llllllllllllllllllllllll
Title of person signing
llllllllllllllllllllllll
Name of Purchaser
llllllllllllllllllllllll
Address
llllllllllllllllllllllll
llllllllllllllllllllllll
Taxpayer Identifying Number
(ii) ODCs that will be used by the purchaser as a feedstock. If the purchaser
will use the ODCs as a feedstock, the
certificate provided by the purchaser
must be in substantially the following
form:
CERTIFICATE OF PURCHASER OF CHEMICALS
THAT WILL BE USED BY THE PURCHASER AS
A FEEDSTOCK
(To support tax-free sales under section
4682(d)(2) of the Internal Revenue Code.)
Date lllllllllllllllllllll
The undersigned purchaser (‘‘Purchaser’’)
hereby certifies the following under penalties of perjury:
The following percentage of ozone-depleting chemicals purchased from
llllllllllllllllllllllll
(name and address of seller)
will be used by Purchaser as a feedstock (as
defined in § 52.4682–1(c)(3) of the Environmental Tax Regulations).
Product
Percentage
CFC–11.
CFC–12.
CFC–113.
CFC–114.
CFC–115.
Carbon tetrachloride.
Methyl chloroform.
Other (specify).
This certificate applies to (check and complete as applicable):
lll All shipments to Purchaser at the following location(s):
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
lll All shipments to Purchaser under the
following Purchaser account number(s):
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
lll All shipments to Purchaser under the
following purchase order(s):
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
lll One or more shipments to Purchaser
identified as follows:
llllllllllllllllllllllll
24
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229103
Internal Revenue Service, Treasury
§ 52.4682–2
llllllllllllllllllllllll
llllllllllllllllllllllll
Purchaser will not claim a credit or refund
under section 4682(d)(2)(B) of the Internal
Revenue Code for any ozone-depleting chemicals covered by this certificate.
Purchaser understands that any use of the
ozone-depleting chemicals to which this certificate applies other than as a feedstock
may result in the withdrawal by the Internal
Revenue Service of Purchaser’s right to provide a certificate.
Purchaser will retain the business records
needed to document the use as a feedstock of
the ozone-depleting chemicals to which this
certificate applies and will make such
records available for inspection by Government officers.
Purchaser has not been notified by the Internal Revenue Service that its right to provide a certificate has been withdrawn.
Purchaser understands that the fraudulent
use of this certificate may subject Purchaser
and all parties making such fraudulent use
of this certificate to a fine or imprisonment,
or both, together with the costs of prosecution.
llllllllllllllllllllllll
Signature
llllllllllllllllllllllll
Printed or typed name of person signing
llllllllllllllllllllllll
Title of person signing
llllllllllllllllllllllll
Name of Purchaser
llllllllllllllllllllllll
Address
llllllllllllllllllllllll
llllllllllllllllllllllll
Taxpayer Identifying Number
The undersigned purchaser (‘‘Purchaser’’)
hereby certifies the following under penalties of perjury:
The following percentage of ozone-depleting chemicals purchased from
llllllllllllllllllllllll
(name and address of seller)
will be resold by Purchaser to persons (Second Purchasers) that certify to Purchaser
that they are purchasing the ozone-depleting
chemicals for use in the manufacture of rigid
foam insulation (as defined in § 52.4682–1(d)(3)
and (4) of the Environmental Tax Regulations).
Product
(3) Certificate relating to ODCs used in
the manufacture of rigid foam insulation—(i) ODCs that will be resold to a second purchaser for use by the second purchaser in the manufacture of rigid foam
insulation. If the purchaser will resell
the ODCs to a second purchaser for use
by such second purchaser in the manufacture of rigid foam insulation, the
certificate provided by the purchaser
must be in substantially the following
form:
CERTIFICATE OF PURCHASER OF CHEMICALS
THAT WILL BE RESOLD FOR USE BY THE SECOND PURCHASER IN THE MANUFACTURE OF
RIGID FOAM INSULATION
emcdonald on DSK67QTVN1PROD with CFR
Percentage
CFC–11.
CFC–12.
CFC–113.
CFC–114.
CFC–115.
Carbon tetrachloride.
Methyl chloroform.
Other (specify).
(To support tax-free or tax-reduced sales
under section 4682(g) of the Internal Revenue
Code.)
Effective Date llllllllllllllll
Expiration Date lllllllllllllll
(not after 12/31/93)
This certificate applies to (check and complete as applicable):
lll All shipments to Purchaser at the following location(s):
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
lll All shipments to Purchaser under
the following Purchaser account number(s):
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
lll All shipments to Purchaser under the
following purchase order(s):
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
lll One or more shipments to Purchaser
identified as follows:
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
Purchaser will not claim a credit or refund
under section 4682(g)(3) of the Internal Revenue Code for any ozone-depleting chemicals
covered by this certificate.
Purchaser understands that any use by
Purchaser of the ozone-depleting chemicals
to which this certificate applies other than
for the purpose set forth in this certificate
may result in the withdrawal by the Internal
Revenue Service of Purchaser’s right to provide a certificate.
Purchaser will retain the business records
needed to document the sales covered by this
certificate and will make such records available for inspection by Government officers.
25
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229103
§ 52.4682–2
26 CFR Ch. I (4–1–13 Edition)
Purchaser also will retain and make available for inspection by Government officers
the certificates of its Second Purchasers.
Purchaser has not been notified by the Internal Revenue Service that its right to provide a certificate has been withdrawn. In addition, the Internal Revenue Service has not
notified Purchaser that the right to provide
a certificate has been withdrawn from any
Second Purchaser who will purchase ozonedepleting chemicals to which this certificate
applies.
Purchaser understands that the fraudulent
use of this certificate may subject Purchaser
and all parties making such fraudulent use
of this certificate to a fine or imprisonment,
or both, together with the costs of prosecution.
Product
llllllllllllllllllllllll
Signature
llllllllllllllllllllllll
Printed or typed name of person signing
llllllllllllllllllllllll
Title of person signing
llllllllllllllllllllllll
Name of Purchaser
llllllllllllllllllllllll
Address
llllllllllllllllllllllll
llllllllllllllllllllllll
Taxpayer Identifying Number
(ii) ODCs that will be used by the purchaser in the manufacture of rigid foam
insulation. If the purchaser will use the
ODCs in the manufacture of rigid foam
insulation, the certificate provided by
the purchaser must be in substantially
the following form:
CERTIFICATE OF PURCHASER OF CHEMICALS
THAT WILL BE USED BY THE PURCHASER IN
THE MANUFACTURE OF RIGID FOAM INSULATION
(To support tax-free or tax-reduced sales
under section 4682(g) of the Internal Revenue
Code.)
Effective Date llllllllllllllll
Expiration Date lllllllllllllll
(not after 12/31/93)
The undersigned purchaser (‘‘Purchaser’’)
hereby certifies the following under penalties of perjury:
The following percentage of ozone-depleting chemicals purchased from
emcdonald on DSK67QTVN1PROD with CFR
Percentage
CFC–11.
CFC–12.
CFC–113.
CFC–114.
CFC–115.
Carbon tetrachloride.
Methyl chloroform.
Other (specify).
llllllllllllllllllllllll
(name and address of seller)
will be used by Purchaser in the manufacture of rigid foam insulation (as defined in
§ 52.4682–1(d) (3) and (4) of the Environmental
Tax Regulations).
This certificate applies to (check and complete as applicable):
lll All shipments to Purchaser at the following location(s):
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
lll All shipments to Purchaser under the
following Purchaser account number(s):
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
lll All shipments to Purchaser under the
following purchase order(s):
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
lll One or more shipments to Purchaser
identified as follows:
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
Purchaser will not claim a credit or refund
under section 4682(g)(3) of the Internal Revenue Code for any ozone-depleting chemicals
covered by this certificate.
Purchaser understands that any use by
Purchaser of the ozone-depleting chemicals
to which this certificate applies other than
in the manufacture of rigid foam insulation
may result in the withdrawal by the Internal
Revenue Service of Purchaser’s right to provide a certificate.
Purchaser will retain the business records
needed to document the use in the manufacture of rigid foam insulation of the ozone-depleting chemicals to which this certificate
applies and will make such records available
for inspection by Government officers.
Purchaser has not been notified by the Internal Revenue Service that its right to provide a certificate has been withdrawn.
Purchaser understands that the fraudulent
use of this certificate may subject Purchaser
and all parties making such fraudulent use
of this certificate to a fine or imprisonment,
or both, together with the costs of prosecution.
llllllllllllllllllllllll
Signature
llllllllllllllllllllllll
Printed or typed name of person signing
26
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229103
Internal Revenue Service, Treasury
§ 52.4682–2
llllllllllllllllllllllll
Title of person signing
llllllllllllllllllllllll
Name of Purchaser
llllllllllllllllllllllll
Address
llllllllllllllllllllllll
llllllllllllllllllllllll
Taxpayer Identifying Number
(4) Certificate relating to ODCs used as
medical sterilants—(i) ODCs that will be
resold for use by the second purchaser as
medical sterilants. If the purchaser will
resell the ODCs to a second purchaser
for use by such second purchaser as
medical sterilants, the certificate provided by the purchaser must be in substantially the following form:
CERTIFICATE OF PURCHASER OF CHEMICALS THAT WILL BE RESOLD FOR USE
BY THE SECOND PURCHASER AS MEDICAL STERILANTS
(To support tax-reduced sales under section
4682(g)(4) of the Internal Revenue Code.)
Effective Date llllllllllllllll
Expiration Date lllllllllllllll
(not after 12/31/93)
The undersigned purchaser (Purchaser)
certifies the following under penalties of perjury:
The following percentage of ozone-depleting chemicals purchased from:
llllllllllllllllllllllll
(Name of seller)
llllllllllllllllllllllll
(Address of seller)
will be resold by Purchaser to persons (Second Purchasers) that certify to Purchaser
that they are purchasing the ozone-depleting
chemicals for use as medical sterilants (as
defined in § 52.4682–1(g)(3) of the Environmental Tax Regulations).
Product
Percentage
emcdonald on DSK67QTVN1PROD with CFR
CFC–12 .............................................................
lllll
This certificate applies to (check and complete as applicable):
lll All shipments to Purchaser at the following location(s):
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
lll All shipments to Purchaser under the
following Purchaser account number(s):
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
lll All shipments to Purchaser under the
following purchase order(s):
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
lll One or more shipments to Purchaser
identified as follows:
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
Purchaser will not claim a credit or refund
under section 4682(g)(4) of the Internal Revenue Code for any ozone-depleting chemicals
covered by this certificate.
Purchaser understands that any use by
Purchaser of the ozone-depleting chemicals
to which this certificate applies other than
for the purpose set forth in this certificate
may result in the withdrawal by the Internal
Revenue Service of Purchaser’s right to provide a certificate.
Purchaser will retain the business records
needed to document the sales covered by this
certificate and will make such records available for inspection by Government officers.
Purchaser also will retain and make available for inspection by Government officers
the certificates of its Second Purchasers.
Purchaser has not been notified by the Internal Revenue Service that its right to provide a certificate has been withdrawn. In addition, the Internal Revenue Service has not
notified Purchaser that the right to provide
a certificate has been withdrawn from any
Second Purchaser who will purchase ozonedepleting chemicals to which this certificate
applies.
Purchaser understands that the fraudulent
use of this certificate may subject Purchaser
and all parties making such fraudulent use
of this certificate to a fine or imprisonment,
or both, together with the costs of prosecution.
llllllllllllllllllllllll
Name of Purchaser
llllllllllllllllllllllll
Address of Purchaser
llllllllllllllllllllllll
llllllllllllllllllllllll
Taxpayer Identifying Number of Purchaser
llllllllllllllllllllllll
Title of person signing
llllllllllllllllllllllll
Printed or typed name of person signing
llllllllllllllllllllllll
Signature
(ii) ODCs that will be used by the purchaser as medical sterilants. If the purchaser will use the ODCs as medical
sterilants, the certificate provided by
the purchaser must be in substantially
the following form:
27
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229103
§ 52.4682–2
26 CFR Ch. I (4–1–13 Edition)
CERTIFICATE OF PURCHASER OF CHEMICALS THAT WILL BE USED BY THE
PURCHASER
AS
MEDICAL
STERILANTS
(To support tax-reduced sales under section
4682(g)(4) of the Internal Revenue Code.)
Effective Date llllllllllllllll
Expiration Date lllllllllllllll
(not after 12/31/93)
The undersigned purchaser (Purchaser)
certifies the following under penalties of perjury:
The following percentage of ozone-depleting chemicals purchased from:
llllllllllllllllllllllll
(Name of seller)
llllllllllllllllllllllll
(Address of seller)
will be used by Purchaser as medical
sterilants (as defined in § 52.4682–1(g)(3) of the
Environmental Tax Regulations).
Product
emcdonald on DSK67QTVN1PROD with CFR
(5) Certificate relating to ODCs used as
propellants in metered-dose inhalers—(i)
ODCs that will be resold for use by the
second purchaser as propellants in metered-dose inhalers. If the purchaser will
resell the ODCs to a second purchaser
for use by such second purchaser as
propellants in metered-dose inhalers,
the certificate provided by the purchaser must be in substantially the following form:
Percentage
CFC–12 .............................................................
Purchaser has not been notified by the Internal Revenue Service that its right to provide a certificate has been withdrawn.
Purchaser understands that the fraudulent
use of this certificate may subject Purchaser
and all parties making such fraudulent use
of this certificate to a fine or imprisonment,
or both, together with the costs of prosecution.
llllllllllllllllllllllll
Name of Purchaser
llllllllllllllllllllllll
Address of Purchaser
llllllllllllllllllllllll
llllllllllllllllllllllll
Taxpayer Identifying Number of Purchaser
llllllllllllllllllllllll
Title of person signing
llllllllllllllllllllllll
Printed or typed name of person signing
llllllllllllllllllllllll
Signature
lllll
This certificate applies to (check and complete as applicable):
lll All shipments to Purchaser at the following location(s):
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
lll All shipments to Purchaser under the
following Purchaser account number(s):
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
lll All shipments to Purchaser under the
following purchase order(s):
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
lll One or more shipments to Purchaser
identified as follows:
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
Purchaser will not claim a credit or refund
under section 4682(g)(4) of the Internal Revenue Code for any ozone-depleting chemicals
covered by this certificate.
Purchaser understands that any use by
Purchaser of the ozone-depleting chemicals
to which this certificate applies other than
as medical sterilants may result in the withdrawal by the Internal Revenue Service of
Purchaser’s right to provide a certificate.
Purchaser will retain the business records
needed to document the use as medical
sterilants of the ozone-depleting chemicals
to which this certificate applies and will
make such records available for inspection
by Government officers.
CERTIFICATE OF PURCHASER OF CHEMICALS THAT WILL BE RESOLD FOR USE
BY THE SECOND PURCHASER AS PROPELLANTS IN METERED-DOSE INHALERS
(To support tax-reduced sales under section
4682(g)(4) of the Internal Revenue Code.)
Date lllllllllllllllllllll
The undersigned purchaser (Purchaser)
certifies the following under penalties of perjury:
The following percentage of ozone-depleting chemicals purchased from:
llllllllllllllllllllllll
(Name of seller)
llllllllllllllllllllllll
(Address of seller)
will be resold by Purchaser to persons (Second Purchasers) that certify to Purchaser
that they are purchasing the ozone-depleting
chemicals for use as propellants in metereddose inhalers (as defined in § 52.4682–1(h)(3) of
the Environmental Tax Regulations).
Product
Percentage
CFC–11 .............................................................
CFC–12 .............................................................
CFC–114 ...........................................................
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llll
llll
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§ 52.4682–2
llllllllllllllllllllllll
Signature
This certificate applies to (check and complete as applicable):
llll All shipments to Purchaser at the
following location(s):
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
llll All shipments to Purchaser under
the following Purchaser account number(s):
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
llll All shipments to Purchaser under
the following purchase order(s):
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
llll One or more shipments to Purchaser
identified as follows:
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
Purchaser will not claim a credit or refund
under section 4682(g)(4) of the Internal Revenue Code for any ozone-depleting chemicals
covered by this certificate.
Purchaser understands that any use by
Purchaser of the ozone-depleting chemicals
to which this certificate applies other than
for the purpose set forth in this certificate
may result in the withdrawal by the Internal
Revenue Service of Purchaser’s right to provide a certificate.
Purchaser will retain the business records
needed to document the sales covered by this
certificate and will make such records available for inspection by Government officers.
Purchaser also will retain and make available for inspection by Government officers
the certificates of its Second Purchasers.
Purchaser has not been notified by the Internal Revenue Service that its right to provide a certificate has been withdrawn. In addition, the Internal Revenue Service has not
notified Purchaser that the right to provide
a certificate has been withdrawn from any
Second Purchaser who will purchase ozonedepleting chemicals to which this certificate
applies.
Purchaser understands that the fraudulent
use of this certificate may subject Purchaser
and all parties making such fraudulent use
of this certificate to a fine or imprisonment,
or both, together with the costs of prosecution.
llllllllllllllllllllllll
Name of Purchaser
llllllllllllllllllllllll
Address of Purchaser
llllllllllllllllllllllll
llllllllllllllllllllllll
Taxpayer Identifying Number of Purchaser
llllllllllllllllllllllll
Title of person signing
llllllllllllllllllllllll
Printed or typed name of person signing
(ii) ODCs that will be used by the purchaser as propellants in metered-dose inhalers. If the purchaser will use the
ODCs as propellants in metered-dose
inhalers, the certificate provided by
the purchaser must be in substantially
the following form:
CERTIFICATE OF PURCHASER OF CHEMICALS THAT WILL BE USED BY THE
PURCHASER AS PROPELLANTS IN METERED-DOSE INHALERS
(To support tax-reduced sales under section
4682(g)(4) of the Internal Revenue Code.)
Date lllllllllllllllllllll
The undersigned purchaser (Purchaser)
certifies the following under penalties of perjury:
The following percentage of ozone-depleting chemicals purchased from:
llllllllllllllllllllllll
(Name of seller)
llllllllllllllllllllllll
(Address of seller)
will be used by Purchaser as propellants in
metered-dose inhalers (as defined in § 52.4682–
1(h)(3) of the Environmental Tax Regulations).
Product
Percentage
CFC–11 .............................................................
CFC–12 .............................................................
CFC–114 ...........................................................
This certificate applies to (check and complete as applicable):
llll All shipments to Purchaser at the
following location(s):
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
llll All shipments to Purchaser under
the following Purchaser account number(s):
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
llll All shipments to Purchaser under
the following purchase order(s):
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
llll One or more shipments to Purchaser
identified as follows:
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
Purchaser will not claim a credit or refund
under section 4682(g)(4) of the Internal Revenue Code for any ozone-depleting chemicals
covered by this certificate.
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§ 52.4682–3
26 CFR Ch. I (4–1–13 Edition)
Purchaser understands that any use by
Purchaser of the ozone-depleting chemicals
to which this certificate applies other than
as propellants in metered-dose inhalers may
result in the withdrawal by the Internal Revenue Service of Purchaser’s right to provide
a certificate.
Purchaser will retain the business records
needed to document the use as propellants in
metered-dose inhalers of the ozone-depleting
chemicals to which this certificate applies
and will make such records available for inspection by Government officers.
Purchaser has not been notified by the Internal Revenue Service that its right to provide a certificate has been withdrawn.
Purchaser understands that the fraudulent
use of this certificate may subject Purchaser
and all parties making such fraudulent use
of this certificate to a fine or imprisonment,
or both, together with the costs of prosecution.
llllllllllllllllllllllll
Name of Purchaser
llllllllllllllllllllllll
Address of Purchaser
llllllllllllllllllllllll
llllllllllllllllllllllll
Taxpayer Identifying Number of Purchaser
llllllllllllllllllllllll
Title of person signing
llllllllllllllllllllllll
Printed or typed name of person signing
llllllllllllllllllllllll
Signature
first sold or used by the importer
thereof.
(3) Special rule for 1990. In the case of
products first sold or used before January 1, 1991, post-1990 ODCs (as defined
in § 52.4681–1(c)(9)) shall not be taken
into account in applying the rules of
this section.
(b) Imported taxable products—(1) In
general—(i) Rule. Except as provided in
paragraph (b)(2) of this section, the
term ‘‘imported taxable product’’
means any product that—
(A) Is entered into the United States
for consumption, use, or warehousing;
and
(B) Is listed in the current Table.
(ii) Example. The application of this
paragraph (b)(1) may be illustrated by
the following example:
Example. A brings a light truck with a Harmonized Tariff Schedule classification of 8704
into the customs territory and enters the
truck for transportation and exportation. Although the truck is listed in the current
Table, it is not an imported taxable product
because it is not entered for consumption,
use, or warehousing. The truck also would
not be an imported taxable product if it were
admitted to a foreign trade zone (rather than
brought into the customs territory) for
transportation and exportation.
(2) Exceptions—(i) In general. A product is not treated as an imported taxable product if—
(A) The product is listed in Part I of
the current Table and the adjusted tax
with respect to the product is de minimis (within the meaning of paragraph
(b)(2)(ii) of this section); or
(B) The product is listed in Part II of
the current Table, the adjusted tax
with respect to the product is de minimis (within the meaning of paragraph
(b)(2)(ii) of this section), and the ODCs
(other than methyl chloroform) used as
materials in the manufacture of the
product were not used for purposes of
refrigeration or air conditioning, creating an aerosol or foam, or manufacturing electronic components.
(ii) De minimis adjusted tax. The adjusted tax with respect to a product is
de minimis if such tax is less than one/
tenth of one percent of the importer’s
cost of acquiring such product. The
term adjusted tax means the tax that
would be imposed under section 468l on
the ODCs used as materials in the manufacture of such product if such ODCs
[T.D. 8370, 56 FR 56308, Nov. 4, 1991, as amended by T.D. 8622, 60 FR 52850, Oct. 11, 1995]
emcdonald on DSK67QTVN1PROD with CFR
§ 52.4682–3
Imported taxable products.
(a) Overview; references to Tables; special rule for 1990—(1) Overview. This section provides rules relating to the tax
imposed on imported taxable products
under section 4681, including rules for
identifying imported taxable products,
determining the weight of the ozonedepleting chemicals (ODCs) used as materials in the manufacture of such
products, and computing the amount of
tax on such products. See § 52.4681–
1(a)(2) and (c) for general rules and
definitions relating to the tax on imported taxable products.
(2) References to Tables. When used in
this section—
(i) The term Imported Products Table
(Table) refers to the Table set forth in
paragraph (f)(6) of this section; and
(ii) The term current Imported Products Table (current Table) used with respect to a product refers to the Table
in effect on the date such product is
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(iv) Making the election. An election
under this paragraph (c)(2) shall be
made in accordance with the instructions for the return on which the importer is required to report liability for
tax under section 4681.
(3) Treating the sale of an article incorporating an imported taxable product as
the first sale or use of such product—(i)
In general. In the case of articles to be
sold, an importer may treat the sale of
an article manufactured or assembled
in the United States as the first sale or
use of an imported taxable product incorporated in such article, but only if
the importer—
(A) Has consistently treated the sale
of similar articles as the first sale or
use of similar imported taxable products; and
(B) Has not made an election under
paragraph (c)(2) of this section.
(ii) Similar articles and imported taxable products. An importer may establish any reasonable criteria for determining whether articles or imported
taxable products are similar for purposes of this paragraph (c)(3).
(iii) Establishment of consistent treatment. An importer has consistently
treated the sale of similar articles as
the first sale or use of similar imported
taxable products only if such treatment is reflected in the computation of
tax on the importer’s returns for all
prior calendar quarters in which such
treatment would affect tax liability.
(iv) Example. The application of this
paragraph (c)(3) may be illustrated by
the following example:
were sold in the United States and the
base tax amount were $1.00.
(c) Taxable event—(1) In general. Except as otherwise provided in paragraphs (c) (2) and (3) of this section, the
tax on an imported taxable product is
imposed when the product is first sold
or used (as defined in § 52.4681–1(c) (6)
and (7)) by its importer. Thus, for example, imported taxable products that
are warehoused or repackaged after
entry and then exported without being
sold or used in the United States are
not subject to tax.
(2) Election to treat importation as
use—(i) In general. An importer may
elect to treat the entry of products
into the United States as the use of
such products. In the case of imported
taxable products to which an election
under this paragraph (c)(2) applies—
(A) Tax is imposed on the products
on the date of entry (as determined
under paragraph (c)(2)(ii) of this section) if the products are entered into
the United States after the election becomes effective;
(B) Tax is imposed on the products on
the date the election becomes effective
if the products were entered into the
United States after December 3l, 1989,
and before the election becomes effective; and
(C) No tax is imposed if the products
were entered into the United States before January 1, 1990.
(ii) Date of entry. The date of entry is
determined by reference to customs
law. If the actual date is unknown, the
importer may use any reasonable and
consistent method to determine the
date of entry, provided that such date
is within 10 business days of arrival of
products in the United States.
(iii) Applicability of election. An election under this paragraph (c)(2) applies
to all imported taxable products that
are owned (and have not been used) by
the importer at the time the election
becomes effective and all imported taxable products that are entered into the
United States by the importer after the
election becomes effective. An election
under this paragraph (c)(2) becomes effective at the beginning of the first calendar quarter to which the election applies. After October 9, 1990, the election
may be revoked only with the consent
of the Commissioner.
Example. (a) An importer of printed circuits and other electronic components uses
those products in assembling television receivers in the United States and also uses
the printed circuits in assembling VCRs in
the United States. Under the importer’s criteria for determining similarity, printed circuits are similar to other printed circuits,
but not to the other electronic components.
In addition, television receivers are similar
to other television receivers, but not to
VCRs. The importer has not made an election under paragraph (c)(2) of this section.
(b) Under this paragraph (c)(3), the importer may treat the sale of the television
receivers as the first sale or use of the imported printed circuits incorporated into the
television receivers. In that case, the tax on
the printed circuits would be imposed when
the television receivers are sold rather than
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§ 52.4682–3
26 CFR Ch. I (4–1–13 Edition)
when the printed circuits are used in assembling the television receivers.
(c) The importer may treat the sale of the
television receivers as the first sale or use of
the printed circuits incorporated into the
television receivers even if the sale of the
television receivers is not treated as the first
sale or use of the other electronic components incorporated into the television receivers and even if the sale of VCRs is not
treated as the first sale or use of the printed
circuits incorporated into the VCRs. Under
paragraph (c)(3)(i)(A) of this section, however, the importer must have consistently
treated the sale of television receivers as the
first sale or use of printed circuits incorporated into the receivers. Thus, in the case
of television receivers that were assembled
before January 1, 1990, and sold after December 31, 1989, the importer must have treated
the sale of the television receivers as the
first sale or use of the printed circuits incorporated into the television receivers when
reporting tax under section 4681 with respect
to such printed circuits.
tioning system of the factory in which the
printed circuits are manufactured. The ODCs
used as a solvent are released into the atmosphere, and, under paragraph (d)(2)(ii) of
this section, are used as materials in the
manufacture of the printed circuits. The
ODCs used as a coolant in the air-conditioning system are also used in the manufacture of the printed circuits. Under paragraph
(d)(2)(iii) of this section, these ODCs are used
as materials in the manufacture of the printed circuits only to the extent the cost of the
ODCs is properly allocable to the printed circuits.
Example 2. B manufactures television receivers outside the United States and wraps
them for shipping in a protective packing
material manufactured with ODCs. Under
paragraph (d)(3) of this section, the ODCs
used in the manufacture of the protective
packing material are not treated as ODCs
used as a material in the manufacture of the
television receivers.
(e) Methods of determining ODC
weight; computation of tax—(1) In general. This paragraph (e) sets forth the
methods to be used for determining the
ODC weight of an imported taxable
product and a method to be used in
computing the tax when the ODC
weight cannot be determined. The
amount of tax is computed separately
for each imported taxable product and
the method to be used in determining
the ODC weight or otherwise computing the tax is separately determined
for each such product. Thus, an importer may use one method in computing the tax on some imported taxable products and different methods in
computing the tax on other products.
For example, an importer of telephone
sets may compute the tax using the
exact method described in paragraph
(e)(2) of this section for determining
the ODC weight of telephone sets supplied by one manufacturer and using
the Table method described in paragraph (e)(3) of this section for telephone sets supplied by other manufacturers that have not provided sufficient
information to allow the importer to
use the exact method.
(2) Exact method. If the importer determines the weight of each ODC used
as a material in the manufacture of an
imported taxable product and supports
that determination with sufficient and
reliable information, the ODC weight
of the product is the weight so determined. Under this method, the ODC
emcdonald on DSK67QTVN1PROD with CFR
(d) ODCs used as materials in the manufacture of imported taxable products—(1)
ODC weight. The tax imposed on an imported taxable product under section
4681 is computed by reference to the
weight of the ODCs used as materials
in the manufacture of the product
(ODC weight). The ODC weight of a
product includes the weight of ODCs
used as materials in the manufacture
of any components of the product.
(2) ODCs used as materials in the manufacture of a product. Except as provided
in paragraph (d)(3) of this section, an
ODC is used as a material in the manufacture of a product if the ODC is—
(i) Incorporated into the product;
(ii) Released into the atmosphere in
the process of manufacturing the product; or
(iii) Otherwise used in the manufacture of the product (but only to the extent the cost of the ODC is properly allocable to the product).
(3) Protective packaging. ODCs used in
the manufacture of the protective material in which a product is packaged
are not treated as ODCs used as materials in the manufacture of such product.
(4) Examples. The provisions of this
paragraph (d) may be illustrated by the
following examples:
Example 1. A, a manufacturer located outside the United States, uses ODCs as a solvent to clean the printed circuits it manufactures and as a coolant in the air-condi-
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§ 52.4682–3
weight of a mixture is equal to the
weight of the ODCs contained in the
mixture. Representations by the manufacturer of the product to the importer
as to the weight of the ODCs used as
materials in the manufacture of the
product may be sufficient and reliable
information for this purpose. Thus, a
letter to the importer signed by the
manufacturer may constitute sufficient and reliable information if the
letter adequately identifies the product
and states the weight of each ODC used
as a material in the product’s manufacture.
(3) Table method—(i) In general. If the
ODC weight of an imported taxable
product is not determined using the
exact method described in paragraph
(e)(2) of this section and the current
Table specifies an ODC weight for the
product, the ODC weight of the product
is the Table ODC weight, regardless of
what ODCs were used in the manufacture of the product. In computing the
amount of tax, the Table ODC weight
shall not be rounded.
(ii) Special rules—(A) Articles assembled in the United States. An importer
that assembles finished articles in the
United States may compute the
amount of tax imposed on the imported
taxable products incorporated into the
finished article by using the Table ODC
weight specified for the article instead
of the Table ODC weights specified for
the components. In order to compute
the tax under this special rule, the importer must determine the actual number of articles manufactured. For example, if an importer manufactures 100
camcorders using imported subassemblies, the importer may compute the
amount of tax on the subassemblies by
using the Table ODC weight specified
for camcorders. Thus, the tax imposed
on the subassemblies is equal to the
tax that would be imposed on 100
camcorders.
(B) Combination method. This paragraph (e)(3)(ii)(B) applies to an imported taxable product if the current
Table specifies weights for two or more
ODCs with respect to the product and
the importer of the product can determine the weight of any such ODC (and
of any ODC used as a substitute for
such ODC) and can support such determination with sufficient and reliable
information. In determining the ODC
weight of any such product, the importer may replace the weight specified
in the Table for such ODC with the
weight (as determined by the importer)
of such ODC and its substitutes. For
example, if an importer has sufficient
and reliable information to determine
the amount of CFC–12 included in a
product as a coolant (and to determine
that no ODCs have been used as substitutes for CFC–12) but cannot determine the amount of CFC–113 used in
manufacturing the product’s electronic
components, the importer may use the
weight specified in the Table for CFC–
113 and the actual weight determined
by the importer for CFC–12 in determining the ODC weight of the product.
(C) ODCs used in the manufacture of
rigid foam insulation. In computing the
tax using the method described in this
paragraph (e)(3), any ODC for which the
Table specifies a weight followed by an
asterisk (*) shall be treated as an ODC
used in the manufacture of rigid foam
insulation (as defined in § 52.4682–1(d)
(3) and (4)).
(4) Value method—(i) General rule. If
the importer cannot determine the
ODC weight of an imported taxable
product under the exact method described in paragraph (e)(2) of this section and the Table ODC weight of the
product is not specified, the tax imposed on the product under section 4681
is one percent of the entry value of the
product.
(ii) Special rule for mixtures. If, in the
case of an imported taxable product
that is a mixture, the tax was determined under the method described in
this paragraph (e)(4), the Commissioner
may redetermine the tax based on the
ODC weight of the mixture.
(5) Adjustment for prior taxes—(i) In
general. If any manufacture with respect to an imported taxable product
occurred in the United States or the
product incorporates a taxed component or a taxed chemical was used in
its manufacture, the product’s ODC
weight (or value) attributable to manufacture within the United States or to
taxed components or taxed chemicals
shall be disregarded in computing the
tax on such product using a method described in paragraph (e) (2), (3), or (4) of
this section.
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§ 52.4682–3
26 CFR Ch. I (4–1–13 Edition)
percent CFC–12 by weight. B also imports
and sells R–502. The R–502 is 51 percent CFC–
115 by weight. In the first calendar quarter of
1991 B sells 100 pounds of imported ethylene
oxide/CFC–12 mixture and 10,000 pounds of
imported R–502. The ethylene/CFC–12 mixture and the R–502 are imported taxable
products because they are listed in Part I of
the Table (contained in paragraph (f)(6) of
this section). Under the exact method described in paragraph (e)(2) of this section, B
computes the tax based on 88 pounds of CFC–
12, the amount of ODCs contained in the imported ethylene oxide mixture, and based on
5100 pounds of CFC–115, the amount of ODCs
in the imported R–502.
emcdonald on DSK67QTVN1PROD with CFR
(ii) Taxed component. The term
‘‘taxed component’’ means any component that previously was subject to tax
as an imported taxable product or that
would have been so taxed if section 4681
had been in effect for periods before
January 1, 1990.
(iii) Taxed chemical. The term ‘‘taxed
chemical’’ means any ODC that previously was subject to tax.
(6) Examples. The application of this
paragraph (e) may be illustrated by the
following examples:
Example 1. A is an importer (as defined in
§ 52.4681–1(c)(5)) of VCRs. The HTS classification for the VCRs is 8528.10.40. VCRs classified under HTS heading 8528.10.40 are imported taxable products because they are
listed in the Table (contained in paragraph
(f)(6) of this section) by name and HTS heading (as described in paragraph (f)(3)(i) of this
section). Each VCR is wrapped in protective
packing material manufactured with ODCs.
A imports and sells 100 VCRs during the first
calendar quarter of 1991. A may determine
the ODC weight for the VCRs by reference to
the Table. The Table ODC weight specified
for VCRs classified under HTS heading
8528.10.40 is 0.0586 pound of CFC–113. This
weight does not take protective packaging
into account. The amount of tax for the first
quarter of 1991 is $6.42 (0.0586 (the ODC
weight) × 100 (the number of VCRs sold in the
quarter) × $1.37 (the base tax amount for
CFC–113 in 1991) × 0.8 (the ozone-depletion
factor for CFC–113)). If A uses the exact
method (as described in paragraph (e)(2) of
this section) to determine the ODC weight
for the VCRs, A does not take into account
the ODCs used in the manufacture of the protective packaging. (Imported protective
packaging containing foams made with ODCs
other than foams defined in § 52.4682–1(d)(3) is
subject to tax, however, if the packaging is
sold as packaging or first used as packaging
in the United States.)
Example 2. The facts are the same as in Example 1, except that A’s VCRs are manufactured using methyl chloroform as the solvent instead of CFC–113. If A does not use the
exact method to determine the weight of the
methyl chloroform used in the manufacture
of the VCRs, A must, under paragraphs
(e)(3)(i) and (e)(4)(i) of this section, determine the ODC weight by reference to the
Table. If A uses the Table ODC weight, the
computation of tax is the same as in Example
1, using the base tax amount and ozone-depletion factor for CFC–113. A does not substitute the base tax amount and ozone-depletion factor of methyl chloroform for those of
CFC–113.
Example 3. B imports and sells mixtures of
ethylene oxide and CFC–12. The mixture is 88
(f) Imported Products Table—(1) In general. This paragraph (f) contains rules
relating to the Imported Products
Table (Table) and sets forth the Table.
The Table lists all the products that
are subject to the tax on imported taxable products and specifies the Table
ODC weight of each product for which
such a weight has been determined.
(2) Applicability of Table—(i) In general. Except as provided in paragraph
(f)(2)(ii) of this section, the Table contained in paragraph (f)(6) of this section is effective on January 1, 1990.
(ii) Treatment of certain products—(A)
Products included in a listing that is
preceded by a double asterisk (**) in
the Table shall not be treated as imported taxable products until October
1, 1990.
(B) Products included in a listing
that is preceded by a triple asterisk
(***) in the Table shall not be treated
as imported taxable products until
January l, 1992.
(3) Identification of products—(i) In
general. Each listing in the Table identifies a product by name and includes
only products that are described by
that name. Most listings (other than
listings for mixtures) identify a product by both name and HTS heading. In
such cases, a product is included in
that listing only if the product is described by that name and the rate of
duty on the product is determined by
reference to that HTS heading. However, the product is included in that
listing even if it is manufactured with
or contains a different ODC than the
ODC specified in the Table.
(ii) Electronic items not listed by specific name—(A) In general. Part II of the
Table contains listings for electronic
items that are not included within any
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Internal Revenue Service, Treasury
§ 52.4682–3
(4) Rules for listing products. Products
are listed in the Table in accordance
with the following rules:
(i) Listing in part I. A product is listed
in part I of the Table if it is a mixture
containing ODCs. In addition, a product other than a mixture containing
ODCs will be listed in part I of a revised Table if the Commissioner has
determined that—
(A) The ODC weight of the product is
not de minimis when the product is produced using the predominant method of
manufacturing the product; and
(B) None of the ODCs used as materials in the manufacture of the product
under the predominant method are
used for purposes of refrigeration or air
conditioning, creating an aerosol or
foam, or manufacturing electronic
components.
(ii) Listing in part II. A product is listed in part II of the Table if the Commissioner has determined that the
ODCs used as materials in the manufacture of the product under the predominant method are used for purposes
of refrigeration or air conditioning,
creating an aerosol or foam, or manufacturing electronic components.
(iii) Listing in part III. A product is
listed in part III of the Table if the
Commissioner has determined that the
product is not an imported taxable
product and the product would otherwise be included within a listing in
part II of the Table. For example, floppy disk drive units are listed in part III
because they are not imported taxable
products and they would, but for their
listing in part III, be included within
the part II listing for electronic items
not specifically identified.
(5) Table ODC weight. The Table ODC
weight of a product is the weight, determined by the Commissioner, of the
ODCs that are used as materials in the
manufacture of the product under the
predominant method of manufacturing.
The Table ODC weight is given in
pounds per single unit of product unless otherwise specified.
(6) Table. The Table is set forth
below:
other listing in the Table. An imported
product is included in these listings
only if such imported product—
(1) Is an electronic component listed
in chapters 84, 85, or 90 of the Harmonized Tariff Schedule; or
(2) Contains components described in
paragraph (f)(3)(ii)(A)(1) of this section
and more than 15 percent of the cost of
the imported product is attributable to
such components.
(B) Electronic component. For purposes
of this paragraph (f)(3)(ii), an electronic component is a component
whose operation involves the use of
nonmechanical
amplification
or
switching devices such as tubes, transistors, and integrated circuits. Such
components do not include passive
electrical devices such as resistors and
capacitors.
(C) Certain items not included. Items
such as screws, nuts, bolts, plastic
parts, and similar specially fabricated
parts that may be used to construct an
electronic item are not themselves included in the listing for electronic
items not otherwise listed in the Table.
(iii) Examples. The application of this
paragraph (f)(3) may be illustrated by
the following examples:
emcdonald on DSK67QTVN1PROD with CFR
Example 1. The Table lists ‘‘electronic integrated circuits and microassemblies; HTS
heading 8542.’’ A bipolar transistor under
HTS heading 8542.11.00.05 is included in this
listing because a bipolar transistor is a type
of electronic integrated circuit and HTS
heading 8542.11.00.05 is included within HTS
heading 8542.
Example 2. The Table lists ‘‘radios; HTS
heading 8527.19,’’ ‘‘radio combinations; HTS
heading 8527.11’’ and ‘‘radio combinations;
HTS heading 8527.31.’’ A radio classified
under HTS heading 8527.19 is not included
within either listing for radio combinations.
However, a radio classified under HTS heading 8527.19.00.20 is included within the listing
for radios; HTS heading 8527.19. A radio combination classified under HTS heading
8527.11.20 is included within the listing for
radio combinations; HTS heading 8527.11 but
not the listing for radio combinations; HTS
heading 8527.31. Any radio or radio combination not classified under the HTS heading for
any other listing is included in the listing
for electronic items not otherwise listed.
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§ 52.4682–3
26 CFR Ch. I (4–1–13 Edition)
IMPORTED PRODUCTS TABLE
Harmonized
tariff schedule
heading
Product name
ODC
ODC weight
Part I—Products that are mixtures containing ODCs:
Mixtures containing ODCs, including but not limited to:
—anti-static sprays.
—automotive products such as ‘‘carburetor cleaner,’’ ‘‘stop leak,’’
and ‘‘oil charge’’.
—cleaning solvents.
—contact cleaners.
—degreasers.
—dusting sprays.
—electronic circuit board coolants.
—electronic solvents.
—ethylene oxide/CFC–12.
—fire extinguisher preparations and charges.
—flux removers for electronics.
—insect and wasp sprays.
—mixtures of ODCs.
—propellants.
—refrigerants .......................................................................................
Product name
emcdonald on DSK67QTVN1PROD with CFR
Part II—Products in which ODCs are used for purposes of refrigeration
or air conditioning, creating an aerosol or form or manufacturing
electronic components:
Rigid foam insulation defined in § 52.4682–1(d)(3) ...................
Foams made with ODCs, other than foams defined in
§ 52.4682–1(d)(3).
Scrap flexible foams made with ODCs ......................................
Medical products containing ODCs:
Surgical staplers ..........................................................
Cryogenic medical instruments ...................................
Drug delivery systems .................................................
Inhalants ......................................................................
Dehumidifiers, household ..........................................................
Chillers: ......................................................................................
Charged with CFC–12 .................................................
Charged with CFC–114 ...............................................
Charged with R–500 ....................................................
Refrigerator-freezers, household:
Not > 184 liters ............................................................
Harmonized
tariff schedule
heading
ODC
........................
........................
.........................
.........................
ODC weight
........................
.........................
........................
........................
........................
........................
8415.82.00.50
8415.82.00.65
........................
........................
........................
.........................
.........................
.........................
.........................
CFC–12 ..........
.........................
CFC–12 ..........
CFC–114 ........
CFC–12 ..........
8418.10.00.10
CFC–11 ..........
CFC–12 ..........
CFC–11 ..........
CFC–12 ..........
CFC–11 ..........
CFC–12 ..........
CFC-11 ...........
CFC–12 ..........
11.08
CFC–11 ..........
CFC–12 ..........
CFC–11 ..........
CFC–12 ..........
CFC–11 ..........
CFC–12 ..........
CFC–11 ..........
CFC–12 ..........
CFC–11 ..........
CFC–12 ..........
CFC–11 ..........
CFC–12 ..........
CFC–11 ..........
CFC–12 ..........
.........................
CFC–12 ..........
CFC–115 ........
.........................
CFC–12 ..........
CFC–12 ..........
11.08
> 184 liters but not > 269 liters ...................................
8418.10.00.20
> 269 liters but not > 382 liters ...................................
8418.10.00.30
> 382 liters ...................................................................
8418.10.00.40
Refrigerators, household:
Not > 184 liters ............................................................
8418.21.00.10
> 184 liters but not > 269 liters ...................................
8418.21.00.20
> 269 liters but not > 382 liters ...................................
8418.21.00.30
> 382 liters ...................................................................
8418.21.00.90
Freezers, household ..................................................................
8418.30
Freezers, household ..................................................................
8418.40
Refrigerating display counters not > 227 kg .............................
8418.50
Icemaking machines ..................................................................
Charged with CFC–12 .................................................
Charged with R–502 ....................................................
Drinking water coolers ...............................................................
Charged with CFC–12 .................................................
Charged with R–500 ....................................................
8418.69
........................
........................
8418.69
........................
........................
0.344
1600.
1250.
1920.
0.13
11.32
0.26
11.54
0.35
11.87
0.35
0.13
11.32
0.26
11.54
0.35
11.87
0.35
1 2.0
0.4
12.0
0.4
1 50.0
260.0
1.4
3.39
0.21
0.22
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Internal Revenue Service, Treasury
§ 52.4682–3
emcdonald on DSK67QTVN1PROD with CFR
Product name
Centrifugal chillers, hermetic .....................................................
Charged with CFC–12 .................................................
Charged with CFC–114 ...............................................
Charged with R–500 ....................................................
Reciprocating chillers .................................................................
Charged with CFC–12 .................................................
Mobile refrigeration systems ......................................................
Containers ...................................................................
Trucks ..........................................................................
Trailers .........................................................................
Refrigeration condensing units:
not > 746W ..................................................................
> 746W but not > 2.2KW ............................................
> 2.2KW but not > 7.5KW ...........................................
> 7.5KW but not > 22.3KW .........................................
> 22.3 KW ...................................................................
Fire extinguishers, charged w/ODCs .........................................
Electronic typewriters and word processors ..............................
Electronic calculators .................................................................
Electronic calculators w/printing device .....................................
Electronic calculators .................................................................
Account machines ......................................................................
Cash registers ............................................................................
Digital automatic data processing machines w/cathode ray
tube, not included in subheading 8471.20.00.90.
Laptops, notebooks, and pocket computers ..............................
Digital processing units w/entry value:
Not > $100K ................................................................
> $100K .......................................................................
Combined input/output units (terminals) ....................................
Keyboards ..................................................................................
Display units ...............................................................................
Printer units ................................................................................
lnput or output units ...................................................................
Hard magnetic disk drive units not included in subheading
8471.93.10 for a disk of a diameter:
Not > 9 cm (31⁄2 inches) ..............................................
> 9 cm (31⁄2 inches) but not > 21 cm (81⁄4 inches) .....
Nonmagnetic storage units w/ entry value > $1,000 .................
Magnetic disk drive units for a disk of a diameter over 21 cm
(81⁄4 inches).
Power supplies ...........................................................................
Electronic office machines .........................................................
Populated cards for digital processing units in subheading
8471.91 w/value:
Not > $100K ................................................................
> $100K .......................................................................
Automatic goods-vending machines with refrigerating device ..
Microwave ovens with electronic controls, with capacity of ......
0.99 cu. ft. or less ........................................................
1.0 through 1.3 cu. ft ...................................................
1.31 cu. ft. or greater ...................................................
Microwave oven combinations with electronic controls .............
Telephone sets w/entry value:
Not > $11.00 ................................................................
> $11.00 ......................................................................
Teleprinters and teletypewriters .................................................
Switching equipment not included in subheading 8517.30.20 ..
Private branch exchange switching equipment .........................
Modems .....................................................................................
Intercoms ...................................................................................
Facsimile machines ...................................................................
Loudspeakers, microphones, headphones, and electric sound
amplifier sets, not included in subheading 8518.30.10.
Telephone handsets ..................................................................
Turntables, record players, cassette players, and other sound
reproducing apparatus.
Magnetic tape recorders and other sound recording apparatus, not included in subheading 8520.20.
Telephone answering machines ................................................
Color video recording/reproducing apparatus ...........................
Videodisc players .......................................................................
Harmonized
tariff schedule
heading
ODC
8418.69
........................
........................
........................
8418.69
........................
8418.99
........................
........................
........................
.........................
CFC–12 ..........
CFC–114 ........
CFC–12 ..........
.........................
CFC–12 ..........
.........................
CFC–12 ..........
CFC–12 ..........
CFC–12 ..........
8418.99.00.05
8418.99.00.10
8418.99.00.15
8418.99.00.20
8418.99.00.25
8424
8469
8470.10
8470.21
8470.29
8470.40
8470.50
8471.20
CFC–12 ..........
CFC–12 ..........
CFC–12 ..........
CFC–12 ..........
CFC–12 ..........
.........................
CFC–113 ........
CFC–113 ........
CFC–113 ........
CFC–113 ........
CFC–113 ........
CFC–113 ........
CFC–113 ........
0.2049
0.0035
0.0057
0.0035
0.1913
0.1913
0.3663
8471.20.00.90
CFC–113 ........
0.03567
8471.91
8471.91
8471.92
8471.92
8471.92
8471.92
8471.92
CFC–113
CFC–113
CFC–113
CFC–113
CFC–113
CFC–113
CFC–113
........
........
........
........
........
........
........
0.4980
27.6667
0.3600
0.0742
0.0386
0.1558
0.1370
8471.93
8471.93
8471.93
8471.93.10
CFC–113
CFC–113
CFC–113
CFC–113
........
........
........
........
0.2829
1.1671
2.7758
4.0067
8471.99.30
8472
CFC–113 ........
CFC–113 ........
0.0655
0.001
8473.30
8473.30
8476.11
8516.50
........................
........................
........................
8516.60.40.60
CFC–113 ........
CFC–113 ........
CFC–12 ..........
.........................
CFC–113 ........
CFC–113 ........
CFC–113 ........
CFC–113 ........
0.1408
4.82
0.45
8517.10
8517.10
8517.20
8517.30
8517.30.20
8517.40
8517.81
85l7.82
8518
CFC–113
CFC–113
CFC–113
CFC–113
CFC–113
CFC–113
CFC–113
CFC–113
CFC–113
........
........
........
........
........
........
........
........
........
0.0225
0.1
0.1
0.1267
0.0753
0.0225
0.0225
0.0225
0.0022
8518.30.10
8519
CFC–113 ........
CFC–113 ........
0.042
0.0022
8520
CFC–113 ........
0.0022
8520.20
8521.10.00.20
8521.90
CFC–113 ........
CFC–113 ........
CFC–113 ........
0.1
0.0586
0.0106
ODC weight
1600.
1250.
1920.
200.
15.
11.
20.
0.3
1.0
3.0
8.5
17.0
0.0300
0.0441
0.0485
0.0595
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§ 52.4682–3
26 CFR Ch. I (4–1–13 Edition)
Harmonized
tariff schedule
heading
Product name
emcdonald on DSK67QTVN1PROD with CFR
Cordless handset telephones ....................................................
Cellular communication equipment ............................................
TV cameras ................................................................................
Camcorders ................................................................................
Radio combinations ...................................................................
Radios ........................................................................................
Motor Vehicle radios with or w/o tape player ............................
Radio combinations ...................................................................
Radios ........................................................................................
Tuners w/o speaker ...................................................................
Television receivers ...................................................................
VCRs ..........................................................................................
Home satellite earth stations .....................................................
Electronic assemblies for HTS headings 8525, 8527, & 8528
Indicator panels incorporating liquid crystal devices or light
emitting diodes.
Printed circuits ...........................................................................
Computerized numerical controls ..............................................
Diodes, crystals, transistors and other similar discrete semiconductor devices.
Electronic integrated circuits and microassemblies ...................
Signal generators .......................................................................
Avionics ......................................................................................
Signal generators subassemblies ..............................................
Insulated or refrigerated railway freight cars .............................
Passenger automobiles .............................................................
Foams (interior) ...........................................................
Foams (exterior) ..........................................................
With charged a/c .........................................................
Without charged a/c ....................................................
Electronics ...................................................................
Light trucks .................................................................................
Foams (interior) ...........................................................
Foams (exterior) ..........................................................
With charged a/c .........................................................
Without charged a/c ....................................................
Electronics ...................................................................
Heavy trucks and tractors, GVW 33,001 lbs or more: 2 ............
Foams (interior) ...........................................................
Foams (exterior) ..........................................................
With charged a/c .........................................................
Without charged a/c ....................................................
Electronics ...................................................................
Motorcycles with seat foamed with ODCs .................................
Bicycles with seat foamed with ODCs .......................................
Seats foamed with ODCs ..........................................................
Aircraft ........................................................................................
ODC
ODC weight
8525.20.50
8525.20.60
8525.30
8525.30
8527.11
8527.19
8527.21
8527.31
8527.32
8527.39.00.20
8528
8528.10.40
8528.10.80.55
8529.90
8531.20
CFC–113
CFC–113
CFC–113
CFC–113
CFC–113
CFC–113
CFC–113
CFC–113
CFC–113
CFC–113
CFC–113
CFC–113
CFC–113
CFC–113
CFC–113
........
........
........
........
........
........
........
........
........
........
........
........
........
........
........
0.1
0.4446
1.423
0.0586
0.0022
0.0014
0.0021
0.0022
0.0014
0.0022
0.0386
0.0586
0.0106
0.0816
0.0146
8534
8537.10.00.30
8541
CFC–113 ........
CFC–113 ........
CFC–113 ........
0.001
0.1306
0.0001
8542
8543.20
8543.90.40
8543.90.80
8606
8703
........................
........................
........................
........................
........................
8704
........................
........................
........................
........................
........................
8704
........................
........................
........................
........................
........................
8711
8712
8714.95
8802
CFC–113 ........
CFC–113 ........
CFC–113 ........
CFC–113 ........
CFC–11 ..........
.........................
CFC–11 ..........
CFC–11 ..........
CFC–12 ..........
CFC–12 ..........
CFC–113 ........
.........................
CFC–11 ..........
CFC–11 ..........
CFC–12 ..........
CFC–12 ..........
CFC–113 ........
.........................
CFC–11 ..........
CFC–11 ..........
CFC–12 ..........
CFC–12 ..........
CFC–113 ........
CFC–11 ..........
CFC–11 ..........
CFC–11 ..........
CFC–12 ..........
0.0002
0.6518
0.915
0.1265
1100.
........................
CFC–113 ........
Optical fibers ..............................................................................
9001
CFC–12 ..........
Electronic cameras ....................................................................
Photocopiers ..............................................................................
Avionics ......................................................................................
Electronic drafting machines ......................................................
Complete patient monitoring systems .......................................
9006
9009
9014.20
9017
9018.19.80
Complete patient monitoring systems; subassemblies thereof
Physical or chemical analysis instruments ................................
9018.19.80.60
9027
Oscilloscopes .............................................................................
9030
Foam chairs ...............................................................................
Foam sofas ................................................................................
Foam mattresses .......................................................................
Electronic games and electronic components thereof ..............
Electronic items not otherwise listed in the Table:
Included in HTS chapters 84, 85, 90 .........................................
9401
9401
9404.21
9504
CFC–113 ........
CFC–113 ........
CFC–113 ........
CFC–113 ........
CFC–12 ..........
CFC–113 ........
CFC–113 ........
CFC–12 ..........
CFC–113 ........
CFC–11 ..........
CFC–12 ..........
CFC–113 ........
CFC–11 ..........
CFC–11 ..........
CFC–11 ..........
CFC-113 .........
CFC–113 ........
0.8
0.7
2.0
0.2
0.5
0.6
0.1
2.0
0.2
0.4
0.6
0.1
3.0
0.2
0.4
0.04
0.04
0.04
0.25 lb/1000 lbs
Operating Empty
Weight (OEW).
30.0 lbs./1000
lbs.OEW
0.005 lb/thousand
feet.
0.01
0.0426
0.915
0.12
0.94
3.4163
1.9320
0.0003
0.0271
0.49
0.5943
0.2613
0.30
0.75
1.60
0.0004 pound/$1.00
of entry value.
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Internal Revenue Service, Treasury
§ 52.4682–4
Harmonized
tariff schedule
heading
Product name
Not included in HTS chapters 84, 85, 90 3 ................................
PART III—Products that are not Imported Taxable Products:
Room air conditioners ................................................................
Dishwashers ...............................................................................
Clothes washers ........................................................................
Clothes dryers ............................................................................
Floppy disk drive units ...............................................................
Transformers and inductors .......................................................
Toasters .....................................................................................
Unrecorded media .....................................................................
Recorded media .........................................................................
Capacitors ..................................................................................
Resistors ....................................................................................
Switching apparatus ...................................................................
Cathode tubes ............................................................................
1 See
2 See
emcdonald on DSK67QTVN1PROD with CFR
3 See
8415.10.00.60
8422.11
8450.11
8451.21
8471.93
8504
8516.72
8523
8524
8532
8533
8536
8540
ODC
ODC weight
CFC–113 ........
0.0004 pound/$1.00
of entry value.
.........................
.........................
.........................
.........................
.........................
.........................
.........................
.........................
.........................
.........................
.........................
.........................
.........................
paragraph (e)(3)(ii)(C) of this section. Denotes an ODC used in the manufacture of rigid foam insulation.
paragraph (f)(2)(ii)(A) of this section. Denotes product for which the effective date is October 1, 1990.
paragraph (f)(2)(ii)(B) of this section. Denotes products for which the effective date is January 1, 1992.
(g) Requests for modification of Table—
(1) In general. Any manufacturer or importer of a product may request that
the Secretary modify the Table in any
of the following respects:
(i) Adding a product to the Table and
specifying its Table ODC weight.
(ii) Removing a product from the
Table.
(iii) Changing or specifying the Table
ODC weight of a product.
(2) Form of request. The Secretary will
consider a request for modification
that includes the following:
(i) The name, address, taxpayer identifying number, and principal place of
business of the requester.
(ii) For each product with respect to
which a modification is requested:
(A) The name of the product;
(B) The HTS heading or subheading;
(C) The type of modification requested;
(D) The Table ODC weight that
should be specified for the product if
the request relates to adding a product
or changing or specifying its Table
ODC weight; and
(E) The data supporting the request.
(3) Address. The address for submission of requests under this paragraph
(g) is: Internal Revenue Service, P.O.
Box 7604, Ben Franklin Station, Attn:
CC:CORP:T:R
(Imported
Products
Table), room 5228, Washington, DC
20044.
(4) Public inspection and copying. Requests submitted under this paragraph
(g) will be available in the Internal
Revenue Service Freedom of Information Reading Room for public inspection and copying.
[T.D. 8370, 56 FR 56311, Nov. 4, 1991, as amended by T.D. 8370, 58 FR 14518, Mar. 18, 1993]
§ 52.4682–4
Floor stocks tax.
(a) Overview. This section provides
rules for identifying ozone-depleting
chemicals (ODCs) that are subject to
the floor stocks tax imposed by section
4682(h)(1), determining the person that
is liable for the tax, and computing the
amount of the tax. See § 52.4681–1(a)(3)
and (c) for general rules and definitions
relating to the floor stocks tax.
(b) Identifying rules—(1) ODCs subject
to floor stocks tax; ODCs held for sale or
for use in further manufacture—(i) In
general. The floor stocks tax is imposed
only on an ODC that is held for sale or
for use in further manufacture on the
date the tax is imposed. This paragraph
(b)(1) provides rules for identifying
ODCs held for sale or for use in further
manufacture.
(ii) Held for sale—(A) In general. For
purposes of determining whether an
ODC is held for sale, the term sale shall
have the meaning set forth in § 52.4681–
1(c)(6). ODCs held for sale include ODCs
that will be sold in connection with the
provision of services or in connection
with the sale of a manufactured article
and, in such cases, include ODCs that
will be sold without the statement of a
separate charge for those ODCs.
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§ 52.4682–4
26 CFR Ch. I (4–1–13 Edition)
Example 3. C, an automobile dealer, holds
an ODC for use in charging air conditioners
installed in automobiles that it sells to retail customers. C does not hold the ODC for
use in further manufacture. C does, however,
hold the ODC for sale, even if the customers
are not separately charged for ODCs used in
the automobile air conditioners.
Example 4. D operates an air-conditioning
repair service and holds an ODC for use in repairing air conditioners for its customers. D
holds the ODC for sale even if the customers
are not separately charged for ODCs used in
the repairs.
Example 5. E, a grocery-store chain, holds
an ODC for use in its refrigeration units. E
does not hold the ODC for sale or for use in
further manufacture.
Example 6. F, a bank, holds an ODC for use
in its fire extinguishers to protect the computer system. F does not hold the ODC for
sale or for use in further manufacture.
Example 7. G, a government agency, holds
an ODC for use in the refrigeration equipment of its various units. The units have
separate employer identification numbers.
The ODC is stored in a central warehouse
until needed by a unit and then transferred
to the unit upon request. G does not hold the
ODC for sale or for use in further manufacture.
emcdonald on DSK67QTVN1PROD with CFR
(B) ODCs held by a government. An
ODC that is held by a government for
its own use is not held for sale even if
the ODC will be transferred between
agencies or other subdivisions that
have or are required to have different
employer identification numbers.
(iii) Held for use in further manufacture. Except as otherwise provided in
paragraph (b)(2)(v) of this section, an
ODC is held for use in further manufacture if—
(A) The ODC will be used as a material (within the meaning of paragraph
(b)(1)(iv) of this section) in the manufacture of an article; and
(B) Such article will be held for sale.
(iv) Use as material—(A) In general.
Except as provided in paragraph
(b)(1)(iv)(B) of this section, an ODC will
be used as a material in the manufacture of an article if the ODC will be—
(1) Incorporated into the article; or
(2) Released into the atmosphere in
the process of manufacturing the article.
(B) ODCs used in equipment. For purposes of the floor stocks tax, an ODC is
not used as a material in the manufacture of an article if the ODC is (or will
be) contained in equipment used in
such manufacture and the ODC will be
used for its intended purpose without
being released from such equipment.
Thus, ODCs that are (or will be) used as
coolants in a factory’s air-conditioning
system are not used as materials in the
manufacture of articles produced in the
factory.
(v) Storage containers. The floor
stocks tax is imposed on an ODC without regard to the type or size of the
storage container in which the ODC is
held. Thus, the tax may apply to an
ODC whether it is in a 14-ounce can or
a 30-pound tank.
(vi) Examples. The provisions of this
paragraph (b)(1) may be illustrated by
the following examples:
(2)(i) Mixtures—(A) Tax imposed on
January 1, 1990. In the case of the floor
stocks tax imposed on January l, 1990,
the tax is not imposed on an ODC that
has been mixed with any other ingredients.
(B) Taxes imposed after 1990—(1) In
general. In the case of the floor stocks
tax imposed on January 1 of a calendar
year after 1990, the tax is not imposed
on an ODC that has been mixed with
any other ingredients, but only if it is
established that such ingredients contribute to the accomplishment of the
purpose for which the mixture will be
used. A mixture is not exempt from tax
under this paragraph (b)(2)(i)(B), however, if it contains only an ODC and an
inert ingredient that does not contribute to the accomplishment of the
purpose for which the mixture will be
used.
(2) Exception. In the case of a floor
stocks tax imposed on or after January
1, 1992, a mixture is not exempt from
floor stocks tax under this paragraph
(b)(2)(i)(B) if it contains only ODCs and
one or more stabilizers. For this purpose, the term stabilizer means an ingredient needed to maintain the chemical integrity of the ODC.
Example 1. A, a manufacturer of air conditioners, holds an ODC for use in air conditioners that it will manufacture and sell. A
holds the ODC for use in further manufacture.
Example 2. B, a manufacturer of electronic
components, holds an ODC for use as a solvent to clean printed circuits that it will sell
to computer manufacturers. B holds the ODC
for use in further manufacture.
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(C) Examples. The provisions of this
paragraph (b)(2)(i) may be illustrated
by the following examples:
posed on ODCs held by their manufacturer or importer.
(v) ODCs used as a feedstock—(A) In
general. The floor stocks tax is not imposed on any ODC that was sold in a
qualifying sale for use as a feedstock
(as defined in § 52.4682–1(c)).
(B) Post-1989 ODCs sold before January
1, 1990; post-1990 ODCs sold before January 1, 1991. A post-1989 ODC that was
sold by its manufacturer or importer
before January 1, 1990, or a post-1990
ODC that was sold by its manufacturer
or importer before January 1, 1991,
shall be treated, for purposes of this
paragraph (b)(2)(v), as an ODC that was
sold in a qualifying sale for purposes of
§ 52.4682–1(c) if the ODC will be used as
a feedstock (within the meaning of
§ 52.4682–2(c)(3)).
(vi) ODCs to be exported—(A) In general. The floor stocks tax is not imposed on any ODC that was sold in a
qualifying sale for export (as defined in
§ 52.4682–5(d)(1)).
(B) ODCs sold before January 1, 1993.
An ODC that was sold by its manufacturer or importer before January 1,
1993, is treated, for purposes of this
paragraph (b)(2)(vi), as an ODC that
was sold in a qualifying sale for export
for purposes of § 52.4682–5(d)(1) if the
ODC will be exported.
(vii) ODCs used as propellants in metered-dose inhalers; years after 1992—(A)
In general. The floor stocks tax is not
imposed on January 1 of calendar years
after 1992 on any ODC that was sold in
a qualifying sale for use as a propellant
in a metered-dose inhaler (as defined in
§ 52.4682–1(h)).
(B) ODCs sold before January 1, 1993.
An ODC that was sold by its manufacturer or importer before January 1,
1993, is treated, for purposes of this
paragraph (b)(2)(vii), as an ODC that
was sold in a qualifying sale for purposes of § 52.4682–1(h) if the ODC will be
used as a propellant in a metered-dose
inhaler
(within
the
meaning
of
§ 52.4682–1(h)).
(viii) ODCs used as medical sterilants;
1993. The floor stocks tax is not imposed in 1993 on any ODC held for use
as a medical sterilant (as defined in
§ 52.4682–1(g)).
(c) Person liable for tax—(1) In general.
The person liable for the floor stocks
tax on an ODC is the person that holds
emcdonald on DSK67QTVN1PROD with CFR
Example 1. The floor stocks tax is not imposed on the ODCs contained in refrigerants
such as R–500 and R–502 because such products are mixtures of ODCs and other chemicals that contribute to the accomplishment
of the purpose for which the mixture will be
used.
Example 2. The floor stocks tax is not imposed on the ODCs contained in automotive
products used for checking for leaks because
such products are a mixture of ODCs and
small amounts of dyes and oils that contribute to the accomplishment of the purpose for which the mixture will be used.
Example 3. The floor stocks tax is not imposed on Halon 1301 pressurized with nitrogen. Although nitrogen is an inert ingredient, it contributes to the accomplishment
of the purpose for which the mixture will be
used.
Example 4. On January 1, 1993, the floor
stocks tax is imposed on methyl chloroform
that is stabilized to prevent hydrolization or
chemical reaction during transportation or
use, unless the stabilized methyl chloroform
has also been mixed with other ingredients
that contribute to the accomplishment of
the purpose for which the mixture will be
used.
(ii) Manufactured articles. The floor
stocks tax is not imposed on an ODC
that is contained in a manufactured article in which the ODC will be used for
its intended purpose without being released from such article. For example,
the tax is not imposed on the ODCs
contained in the cooling coils of a refrigerator even if the refrigerator is
held for sale. However, the tax is imposed on a can of ODC used to recharge
an air conditioning unit because the
ODC must be expelled from the can in
order to be used. Similarly, beginning
in 1991, the tax is imposed on Halons
contained in a fire extinguisher held
for sale because such ODCs must be expelled from the fire extinguisher in
order to be used.
(iii) Recycled ODCs. The floor stocks
tax is not imposed on ODCs that have
been reclaimed or recycled. For example, the tax is not imposed on an ODC
that is held for use in further manufacture after being used as a solvent and
recycled.
(iv) ODCs held by the manufacturer or
importer. The floor stocks tax is not im-
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(iv) Other floor stocks taxes—(A) In
general. The following rules apply for
floor stocks taxes imposed on post-1989
ODCs after January 1, 1990, and on
post-1990 ODCs after January 1, 1991:
(1) The tentative tax amount is determined, except as provided in paragraph (d)(2), (3), or (4) of this section,
by reference to the rate of tax prescribed in section 4681(b)(1)(B) and the
ozone-depletion factors prescribed in
section 4682(b).
(2) The amount of the floor stocks
tax on an ODC is equal to the amount
by which the tentative tax amount exceeds the amount of taxes previously
imposed on the ODC.
(B) Example. The application of this
paragraph (d)(1)(iv) may be illustrated
by the following example:
the ODC on a date on which the tax is
imposed. The person who holds the
ODC is the person who has title to the
ODC (whether or not delivery to such
person has been made) as of the first
moment of such date. The person who
has title at such time is determined
under applicable local law.
(2) Special rule. Each business unit
that has, or is required to have, its own
employer identification number is
treated as a separate person for purposes of the floor stocks tax. For example, a chain of automotive parts stores
that has one employer identification
number is one person for purposes of
the floor stocks tax, and a parent corporation and subsidiary corporation
that each have a different employer
identification number are two persons
for purposes of the floor stocks tax.
(d) Computation of tax; tentative tax
amount—(1) In general—(i) Generally applicable rules. This paragraph (d) provides rules for determining the tentative tax amount and the amount of
the floor stocks tax. Section 52.4681–
1(a)(3) provides that the amount of the
floor stocks tax on an ODC is determined by reference to a tentative tax
amount. The tentative tax amount is
the amount of tax that would be imposed on the ODC under section
4681(a)(1) if a sale of the ODC by the
manufacturer or importer had occurred
on the date the floor stocks tax is imposed. The amount of the floor stocks
tax imposed on the ODCs contained in
a nonexempt mixture is computed on
the basis of the weight of the ODCs in
that mixture.
(ii) Floor stocks tax imposed on post1989 ODCs on January 1, 1990. The floor
stocks tax imposed on post-1989 ODCs
(as defined in § 52.4681–1(c)(9)) on January 1, 1990, is equal to the tentative tax
amount. See paragraph (d)(2) of this
section for rules relating to the floor
stocks tax imposed on ODCs used in
the manufacture of rigid foam insulation. See paragraph (d)(3) of this section for rules relating to the floor
stocks tax imposed on Halons.
(iii) Floor stocks tax imposed on post1990 ODCs on January 1, 1991. The floor
stocks tax imposed on post-1990 ODCs
(as defined in § 52.4681–1(c)(9)) on January 1, 1991, is equal to the tentative tax
amount.
Example. The floor stocks tax imposed on
one pound of CFC–12 held for sale on January
1, 1992, is $0.30 (the amount by which $1.67,
the tentative tax, exceeds $1.37, the tax previously imposed on CFC–12).
(2) ODCs used in the manufacture of
rigid foam insulation; 1990, 1991, 1992, and
1993—(i) In general. In the case of an
ODC that was sold in a qualifying sale
for purposes of § 52.4682–1(d) (relating to
use in the manufacture of rigid foam
insulation) the tentative tax amount is
determined under section 4682(g) for
purposes of computing the floor stocks
tax imposed on the ODC on January 1,
1990, 1991, 1992 or 1993. For purposes of
computing the floor stocks tax imposed
on the ODC on January 1, 1990, the tentative tax amount is zero. The floor
stocks tax is not imposed on ODCs for
use in the manufacture of rigid foam
insulation in 1992 and 1993.
(ii) Post-1989 ODCs sold before January
1, 1990; post-1990 ODCs sold before January 1, 1991. A post-1989 ODC that was
sold by its manufacturer or importer
before January 1, 1990, or a post-1990
ODC that was sold by its manufacturer
or importer before January 1, 1991,
shall be treated, for purposes of paragraphs (d)(2) and (e) of this section, as
an ODC that was sold in a qualifying
sale for purposes of § 52.4682–1(d) if the
ODC wi11 be used in the manufacture of
rigid foam insulation (within the
meaning of §§ 52.4682–1(d) (3) and (4)).
(3) Halons; 1990, 1991, 1992, and 1993. In
the case of Halon-1211, Halon-1301, or
Halon-2402 (Halons), the tentative tax
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amount is determined under section
4682(g) for purposes of computing the
floor stocks tax imposed on Halons on
January 1, 1990, 1991, 1992, or 1993. For
purposes of computing the floor stocks
tax imposed on Halons on January 1,
1990, the tentative tax amount is zero.
The floor stocks tax is not imposed on
Halons in 1992 and 1993.
(4) Methyl chloroform; 1993. In the case
of methyl chloroform, the tentative
tax amount is determined under section 4682(g)(5) for purposes of computing the floor stocks tax imposed on
January 1, 1993.
(e) De minimis exception—(1) 1990 and
1992. In the case of the floor stocks tax
imposed on January 1, 1990 or 1992, a
person is liable for the tax only if, on
the date the tax is imposed, the person
holds at least 400 pounds of post-1989
ODCs that are not described in paragraph (d) (2) or (3) of this section and
are otherwise subject to tax.
(2) 1991. In the case of the floor
stocks tax imposed on January 1, 1991,
a person is liable for the tax only if, on
such date, the person holds at least 400
pounds of ODCs subject to the 1991
floor stocks tax. For this purpose,
ODCs subject to the 1991 floor stocks
tax are—
(i) Post-1990 ODCs that are subject to
tax; and
(ii) Post-1989 ODCs that are described
in paragraph (d) (2) or (3) of this section and are otherwise subject to tax.
(3) 1993. In the case of the floor
stocks tax imposed on January 1, 1993,
a person is liable for the tax only if, on
such date, the person holds at least 400
pounds of ODCs that are not described
in paragraph (d) (2) or (3) of this section and are otherwise subject to tax.
(4) 1994. In the case of the floor
stocks tax imposed on January 1, 1994,
a person is liable for the tax only if, on
such date, the person holds—
(i) At least 400 pounds of ODCs that
are not described in paragraph (d)(2) or
(d)(3) of this section and are otherwise
subject to tax;
(ii) At least 200 pounds of ODCs that
are described in paragraph (d)(2) of this
section and are otherwise subject to
tax; or
(iii) At least 20 pounds of ODCs that
are described in paragraph (d)(3) of this
section and are otherwise subject to
tax.
(5) Calendar years after 1994. In the
case of the floor stocks tax imposed on
January 1 of 1995 and each following
calendar year, a person is liable for the
tax only if, on such date, the person
holds—
(i) At least 400 pounds of ODCs that
are not described in paragraph (d)(3) or
(d)(4) of this section and are otherwise
subject to tax;
(ii) At least 50 pounds of ODCs that
are described in paragraph (d)(3) of this
section and are otherwise subject to
tax; or
(iii) At least 1000 pounds of ODCs
that are described in paragraph (d)(4) of
this section and are otherwise subject
to tax.
(6) Examples. The rules of this paragraph (e) may be illustrated by the following examples:
Example 1. On January 1, 1990, A holds for
sale 300 pounds of CFC–12 (a post-1989 ODC
not described in paragraph (d)(2) or (d)(3) of
this section)) and 500 pounds of R–500 (a mixture). A does not hold at least 400 pounds of
ODCs that are taken into account under
paragraph (e)(1) of this section and, under
paragraph (b)(2)(i) of this section, mixtures
are not subject to the floor stocks tax. Thus,
A is not liable for the floor stocks tax imposed on January 1, 1990.
Example 2. On January 1, 1990, B holds for
sale 250 pounds of CFC–12 and 250 pounds of
CFC–113 (post-1989 ODCs not described in
paragraph (d) (2) or (3) of this section). B
holds 500 pounds of ODCs that are taken into
account under paragraph (e)(1) of this section. Thus, B is liable for the floor stocks tax
imposed on January 1, 1990, because B holds
at least 400 pounds of ODCs for sale.
Example 3. On January 1, 1990, C holds 200
pounds of post-1990 ODCs and 500 pounds of
post-1989 ODCs for use in further manufacture. C will use 300 pounds of the post-1989
ODCs in the manufacture of rigid foam insulation (as defined in § 52.4682–1(d) (3) and (4)).
The remainder of the ODCs are not described
in paragraph (d) (2) or (3) of this section.
Under paragraph (e)(1) of this section, post1990 ODCs and ODCs that will be used in the
manufacture of rigid foam insulation are disregarded in determining whether the de minimis exception is applicable in 1990. Thus, C
holds only 200 pounds of ODCs that are taken
into account under paragraph (e)(1) of this
section and is not liable for the floor stocks
tax imposed on January 1, 1990.
Example 4. (a) The facts are the same as in
Example 3, except that the ODCs are held on
January 1, 1991. Under paragraph (e)(2) of
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this section, the 200 pounds of post-1990 ODCs
and the 300 pounds of post-1989 ODCs that
will be used in the manufacture of rigid foam
insulation are taken into account in determining whether the de minimis exception is
applicable in 1991. Under paragraph (b)(2) of
this section, the remaining 200 pounds of
post-1989 ODCs are not taken into account
because the base tax amount applicable to
post-1989 ODCs does not increase in 1991.
Thus, C holds 500 pounds of ODCs that are
taken into account under paragraph (e)(2) of
this section and is liable for the floor stocks
tax imposed on January 1, 1991.
(b) The amount of the floor stocks tax imposed on the 200 pounds of post-1990 ODCs
and the 300 pounds of post-1989 ODCs that
will be used in the manufacture of rigid foam
insulation is equal to the tentative tax
amount because those ODCs were not previously subject to tax.
Example 5. (a) On January 1, 1994, D holds
for sale 300 pounds of CFC–113 (an ODC not
described in paragraph (d)(2) or (d)(3) of this
section) and 25 pounds of Halon-1301 (an ODC
described in paragraph (d)(3) of this section).
D is liable for the floor stocks tax imposed
on January 1, 1994, because 25 pounds of
Halon-1301 exceeds the de minimis amount
specified in paragraph (e)(4)(iii) of this section. The 300 pounds of CFC–113 is less than
the amount specified in paragraph (e)(4)(i) of
this section. Nevertheless, tax is imposed on
both the 25 pounds of Halon-1301 and the 300
pounds of CFC–113.
(b) The amount of the floor stocks tax is
determined separately for the 300 pounds of
CFC–113 and the 25 pounds of Halon-1301 and
is equal to the difference between the tentative tax amount and the amount of tax
previously imposed on those ODCs. For
Halon-1301, for example, the tax is determined as follows. The tentative tax amount
is $1,087.50 ($4.35 (the base tax amount in
1994) × 10 (the ozone-depletion factor for
Halon-1301) × 25 (the number of pounds held)).
The tax previously imposed on the Halon1301 is $6.28 ($3.35 (the base tax amount in
1993) × 10 (the ozone-depletion factor for
Halon-1301) × 0.75 percent (the applicable percentage
determined
under
section
4682(g)(2)(A)) × 25 (the number of pounds
held)). Thus, the floor stocks tax imposed on
the 25 pounds of Halon-1301 in 1994 is
$1,081.22, the difference between $1,087.50 (the
tentative tax amount) and $6.28 (the tax previously imposed).
(i) The person shall prepare an inventory of all such ODCs that the person
holds on the date on which the tax is
imposed.
(ii) The inventory shall be taken as
of the first moment of the date on
which the tax is imposed, but workback or work-forward inventories will
be acceptable if supported by adequate
commercial records of receipt, use, and
disposition of ODCs held for sale or for
use in further manufacture.
(iii) The person must maintain
records of the inventory and make such
records available for inspection and
copying by internal revenue agents and
officers. Records of the inventory are
not to be filed with the Internal Revenue Service.
(2) Circumstances in which an inventory is not required. The inventory requirement of paragraph (f)(1) of this
section does not apply to any person
holding, on a date on which floor
stocks tax is imposed, only ODCs that
are not subject to tax by reason of a
statutory exemption (e.g., use as a
feedstock) or regulatory exclusion
other than the de minimis exception
provided by paragraph (e) of this section (e.g., mixtures). In addition, any
person that holds ODCs subject to the
floor stocks tax and also holds ODCs
that are nontaxable under the provisions of paragraph (b)(2) of this section,
is not required to inventory the nontaxable ODCs. However, any person
that holds any ODCs that either are
subject to the floor stocks tax or would
be subject to the floor stocks tax but
for the de minimis exception must inventory those ODCs.
(3) Examples. The rules of this paragraph (f) may be illustrated by the following examples:
Example 1. On January 1, 1990, A holds for
sale 300 pounds of CFC–12 (a post-1989 ODC
not described in paragraph (d)(2) or (d)(3) of
this section) and 500 pounds of R–500 (a mixture). As required by paragraph (f)(1) of this
section, A must prepare an inventory of the
CFC–12 A holds for sale on that date even
though, under paragraph (e)(1) of this section, the 300 pounds of CFC–12 is not taken
into account because it is de minimis. However, as provided in paragraph (f)(2) of this
section, A is not required to inventory the
R–500 because, under paragraph (b)(2) of this
section, mixtures are not subject to the floor
stocks tax.
(f) Inventory—(1) In general. If, on the
date on which the floor stocks tax is
imposed, a person holds ODCs for sale
or for use in further manufacture and
the ODCs were not manufactured or
imported by such person, the following
rules apply:
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Example 2. On January 1, 1991, B holds for
sale 1,000 pounds of CFC–12 (a post-1989 ODC
not described in paragraph (d)(2) or (d)(3) of
this section). As provided under paragraph
(f)(2) of this section, B is not required to prepare an inventory because CFC–12 is not subject to the floor stocks tax in 1991.
(within the meaning of paragraph (d)(1)
of this section).
(2) Tax imposed if exemption amount exceeded—(i) Post–1989 ODCs. The tax imposed on post–1989 ODCs that a manufacturer or importer sells in qualifying
sales for export during a calendar year
is equal to the excess (if any) of—
(A) The tax that would be imposed on
the ODCs but for section 4682(d)(3) and
this section; over
(B) The post–1989 ODC exemption
amount for the calendar year determined under paragraph (c)(1) of this
section.
(ii) Post–1990 ODCs. The tax imposed
on post–1990 ODCs that a manufacturer
or importer sells in qualifying sales for
export during a calendar year is equal
to the excess (if any) of—
(A) The tax that would be imposed on
the ODCs but for section 4682(d)(3) and
this section; over
(B) The post–1990 ODC exemption
amount for the calendar year determined under paragraph (c)(2) of this
section.
(iii) Allocation of tax—(A) Post–1989
ODCs. The tax (if any) determined
under paragraph (b)(2)(i) of this section
may be allocated among the post–1989
ODCs on which it is imposed in any
manner, provided that the amount allocated to any post–1989 ODC does not
exceed the tax that would be imposed
on such ODC but for section 4682(d)(3)
and this section.
(B) Post–1990 ODCs. The tax (if any)
determined under paragraph (b)(2)(ii) of
this section may be allocated among
the post–1990 ODCs on which it is imposed in any manner, provided that the
amount allocated to any post–1990 ODC
does not exceed the tax that would be
imposed on such ODC but for section
4682(d)(3) and this section.
(c) Exemption amount—(1) Post–1989
ODC exemption amount. A manufacturer’s or importer’s post–1989 ODC exemption amount for a calendar year is
the sum of the following amounts:
(i) The 1986 export percentage of the
aggregate tax that would (but for section 4682(d), section 4682(g), and this
section) be imposed under section 4681
on the maximum quantity, determined
without regard to additional production allowances, of post–1989 ODCs that
the person is permitted to manufacture
(g) Time for paying tax. The floor
stocks tax imposed under section
4682(h) shall be paid without assessment or notice. In the case of the floor
stocks tax imposed on January 1, 1990,
the tax shall be paid by April 1, 1990. In
the case of floor stocks taxes imposed
after January 1, 1990, the tax shall be
paid by June 30 of the year in which
the tax is imposed.
emcdonald on DSK67QTVN1PROD with CFR
[T.D. 8370, 56 FR 56317, Nov. 4, 1991, as amended by T.D. 8622, 60 FR 52852, Oct. 11, 1995]
§ 52.4682–5 Exports.
(a) Overview. This section provides
rules relating to the tax imposed under
section 4681 on ozone-depleting chemicals (ODCs) that are exported. In general, tax is not imposed on ODCs that a
manufacturer or importer sells for export, or for resale by the purchaser to
a second purchaser for export, if the
procedural requirements set forth in
paragraph (d) of this section are met.
The tax benefit of this exemption is
limited, however, to the manufacturer’s or importer’s exemption amount.
Thus, if the tax that would otherwise
be imposed under section 4681 on ODCs
that a manufacturer or importer sells
for export exceeds this exemption
amount, a tax equal to the excess is
imposed on the ODCs. The exemption
amount, which is determined separately for post-1989 ODCs and post–1990
ODCs, is calculated for each calendar
year in accordance with the rules of
paragraph (c) of this section. This section also provides rules under which a
tax imposed under section 4681 on exported ODCs may be credited or refunded, subject to the same limit on
tax benefits, if the procedural requirements set forth in paragraph (f) of this
section are met. See § 52.4681–1(c) for
definitions relating to the tax on ODCs.
(b) Exemption or partial exemption from
tax—(1) In general. Except as provided
in paragraph (b)(2) of this section, no
tax is imposed on an ODC if the manufacturer or importer of the ODC sells
the ODC in a qualifying sale for export
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§ 52.4682–5
26 CFR Ch. I (4–1–13 Edition)
during the calendar year under rules
prescribed by the Environmental Protection Agency (40 CFR part 82).
(ii) The aggregate tax that would
(but for section 4682(d), section 4682(g),
and this section) be imposed under section 4681 on post–1989 ODCs that the
person manufactures during the calendar year under any additional production allowance granted by the Environmental Protection Agency.
(iii) The aggregate tax that would
(but for section 4682(d), section 4682(g),
and this section) be imposed under section 4681 on post–1989 ODCs imported
by the person during the calendar year.
(2) Post–1990 ODC exemption amount. A
manufacturer’s or importer’s post–1990
ODC exemption amount for a calendar
year is the sum of the following
amounts:
(i) The 1989 export percentage of the
aggregate tax that would (but for section 4682(d), section 4682(g), and this
section) be imposed under section 4681
on the maximum quantity, determined
without regard to additional production allowances, of post–1990 ODCs the
person is permitted to manufacture
during the calendar year under rules
prescribed by the Environmental Protection Agency.
(ii) The aggregate tax that would
(but for section 4682(d), section 4682(g),
and this section) be imposed under section 4681 on post–1990 ODCs that the
person manufactures during the calendar year under any additional production allowance granted by the Environmental Protection Agency.
(iii) The aggregate tax that would
(but for section 4682(d), section 4682(g),
and this section) be imposed under section 4681 on post–1990 ODCs imported
by the person during the calendar year.
(3) Definitions—(i) 1986 export percentage. See section 4682(d)(3)(B)(ii) for the
meaning of the term 1986 export percentage.
(ii) 1989 export percentage. See section
4682(d)(3)(C) for the meaning of the
term 1989 export percentage.
(d) Procedural requirements relating to
tax-free sales for export—(1) Qualifying
sales—(i) In general. A sale of ODCs is a
qualifying sale for export if—
(A) The seller is the manufacturer or
importer of the ODCs and the pur-
chaser is a purchaser for export or for
resale to a second purchaser for export;
(B) At the time of the sale, the seller
and the purchaser are registered with
the Internal Revenue Service; and
(C) At the time of the sale, the seller—
(1) Has an unexpired certificate in
substantially the form set forth in
paragraph (d)(3)(ii) of this section from
the purchaser; and
(2) Relies on the certificate in good
faith.
(ii) Qualifying resale. A sale of ODCs
is a qualifying resale for export if—
(A) The seller acquired the ODCs in a
qualifying sale for export and the purchaser is a second purchaser for export;
(B) At the time of the sale, the seller
and the purchaser are registered with
the Internal Revenue Service; and
(C) At the time of the sale, the seller—
(1) Has an unexpired certificate in
substantially the form set forth in
paragraph (d)(3)(ii)(A) of this section
from the purchaser of the ODCs; and
(2) Relies on the certificate in good
faith.
(iii) Special rule relating to sales made
before July 1, 1993. If a sale for export
made before July 1, 1993, satisfies all
the requirements of paragraph (d)(1)(i)
or (ii) of this section other than those
relating to registration, the sale will
be treated as a qualifying sale (or resale) for export. Thus, a sale made before July 1, 1993, may be a qualifying
sale (or resale) even if the parties to
the sale are not registered and the required certificate does not contain
statements regarding registration.
(iv) Registration. Application for registration is made on Form 637 (or any
other form designated for the same use
by the Commissioner) according to the
instructions applicable to the form. A
person is registered only if the district
director has issued that person a letter
of registration and it has not been revoked or suspended. The effective date
of the registration must be no earlier
than the date on which the district director signs the letter of registration.
Each business unit that has, or is required to have, a separate employer
identification number is treated as a
separate person.
46
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Internal Revenue Service, Treasury
§ 52.4682–5
tion number lllll. Purchaser’s registration has not been suspended or revoked by
the Internal Revenue Service.
The following percentage of ozone-depleting chemicals purchased from:
llllllllllllllllllllllll
(Name of seller)
llllllllllllllllllllllll
(Address of seller)
llllllllllllllllllllllll
(Taxpayer identifying number of seller)
are purchased for export by Purchaser.
(2) Good faith reliance. The requirements of paragraph (d)(1) of this section are not satisfied with respect to a
sale of ODCs and the sale is not a qualifying sale (or resale) if, at the time of
the sale—
(i) The seller has reason to believe
that the ODCs are not purchased for
export; or
(ii) The Internal Revenue Service has
notified the seller that the purchaser’s
registration has been revoked or suspended.
(3) Certificate—(i) In general. The certificate required under paragraph (d)(1)
of this section consists of a statement
executed and signed under penalties of
perjury by a person with authority to
bind the purchaser, in substantially
the same form as model certificates
provided in paragraph (d)(3)(ii) of this
section, and containing all information
necessary to complete such model certificate. A new certificate must be
given if any information in the current
certificate changes. The certificate
may be included as part of any business
records normally used to document a
sale. The certificate expires on the earliest of the following dates—
(A) The date one year after the effective date of the certificate;
(B) The date the purchaser provides a
new certificate to the seller; or
(C) The date the seller is notified by
the Internal Revenue Service or the
purchaser that the purchaser’s registration has been revoked or suspended.
(ii) Model certificates—(A) ODCs sold
for export by the purchaser. If the purchaser will export the ODCs, the certificate must be in substantially the
following form:
Product
CERTIFICATE OF PURCHASER OF CHEMICALS FOR EXPORT BY THE PURCHASER
(To support tax-free sales under section
4682(d)(3) of the Internal Revenue Code.)
emcdonald on DSK67QTVN1PROD with CFR
Percentage
CFC–11 .............................................................
CFC–12 .............................................................
CFC–113 ...........................................................
CFC–114 ...........................................................
CFC–115 ...........................................................
Halon-1211 ........................................................
Halon-1301 ........................................................
Halon-2402 ........................................................
Carbon tetrachloride ..........................................
Methyl chloroform ..............................................
Other (specify)
lllllll ..............................................
Effective Date llllllllllllllll
Expiration Date lllllllllllllll
(not more than one year
after effective date)
The undersigned purchaser (Purchaser)
certifies the following under penalties of perjury:
Purchaser is registered with the Internal
Revenue Service as a purchaser of ozone-depleting chemicals for export under registra-
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lllll
This certificate applies to (check and complete as applicable):
lll All shipments to Purchaser at the following location(s):
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
lll All shipments to Purchaser under the
following Purchaser account number(s):
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
lll All shipments to Purchaser under the
following purchase order(s):
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
lll One or more shipments to Purchaser
identified as follows:
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
Purchaser understands that Purchaser will
be liable for tax imposed under section 4681 if
Purchaser does not export the ODCs to which
this certificate applies.
Purchaser understands that any use of the
ODCs to which this certificate applies other
than for export may result in the revocation
of Purchaser’s registration.
Purchaser will retain the business records
needed to document the export of the ozonedepleting chemicals to which this certificate
applies and will make such records available
for inspection by Government officers.
Purchaser has not been notified by the Internal Revenue Service that its registration
has been revoked or suspended.
Purchaser understands that the fraudulent
use of this certificate may subject Purchaser
47
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lllll
lllll
lllll
lllll
lllll
lllll
lllll
lllll
lllll
lllll
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229103
§ 52.4682–5
26 CFR Ch. I (4–1–13 Edition)
and all parties making such fraudulent use
of this certificate to a fine or imprisonment,
or both, together with the costs of prosecution.
Product
llllllllllllllllllllllll
Name of Purchaser
llllllllllllllllllllllll
Address of Purchaser
llllllllllllllllllllllll
llllllllllllllllllllllll
Taxpayer Identifying Number of Purchaser
llllllllllllllllllllllll
Title of person signing
llllllllllllllllllllllll
Printed or typed name of person signing
llllllllllllllllllllllll
Signature
(B) ODCs sold by the purchaser for resale for export by the second purchaser. If
the purchaser will resell the ODCs to a
second purchaser for export by the second purchaser, the certificate must be
in substantially the following form:
CERTIFICATE OF PURCHASER OF CHEMICALS FOR RESALE FOR EXPORT BY
THE SECOND PURCHASER
(To support tax-free sales under section
4682(d)(3) of the Internal Revenue Code.)
emcdonald on DSK67QTVN1PROD with CFR
Effective Date llllllllllllllll
Expiration Date lllllllllllllll
(not more than one year
after effective date)
The undersigned purchaser (Purchaser)
certifies the following under penalties of perjury:
Purchaser is registered with the Internal
Revenue Service as a purchaser of ozone-depleting chemicals for export under registration number lllll. Purchaser’s registration has not been suspended or revoked by
the Internal Revenue Service.
The following percentage of ozone-depleting chemicals purchased from:
llllllllllllllllllllllll
(Name of seller)
llllllllllllllllllllllll
(Address of seller)
llllllllllllllllllllllll
(Taxpayer identifying number of seller)
will be resold by Purchaser to persons (Second Purchasers) that certify to Purchaser
that they are (1) registered with the Internal
Revenue Service as purchasers of ozone-depleting chemicals for export and (2) purchasing the ozone-depleting chemicals for
export.
Product
Percentage
CFC–11 .............................................................
CFC–12 .............................................................
CFC–113 ...........................................................
Percentage
CFC–114 ...........................................................
CFC–115 ...........................................................
Halon-1211 ........................................................
Halon-1301 ........................................................
Halon-2402 ........................................................
Carbon tetrachloride ..........................................
Methyl chloroform ..............................................
Other (specify)
lllllll ..................................................
lllll
lllll
lllll
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lllll
This certificate applies to (check and complete as applicable):
lll All shipments to Purchaser at the following location(s):
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
lll All shipments to Purchaser under the
following Purchaser account number(s):
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
lll All shipments to Purchaser under the
following purchase order(s):
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
lll One or more shipments to Purchaser
identified as follows:
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
Purchaser understands that Purchaser will
be liable for tax imposed under section 4681 if
Purchaser does not resell the ODCs to which
this certificate applies to a Second Purchaser for export or export those ODCs.
Purchaser understands that any use of the
ODCs to which this certificate applies other
than for resale to Second Purchasers for export may result in the revocation of Purchaser’s registration.
Purchaser will retain the business records
needed to document the sales to Second Purchasers for export covered by this certificate
and will make such records available for inspection by Government officers. Purchaser
also will retain and make available for inspection by Government officers the certificates of its Second Purchasers.
Purchaser has not been notified by the Internal Revenue Service that its registration
has been revoked or suspended. In addition,
the Internal Revenue Service has not notified Purchaser of the revocation or suspension of the registration of any Second Purchaser who will purchase ozone-depleting
chemicals to which this certificate applies.
Purchaser understands that the fraudulent
use of this certificate may subject Purchaser
and all parties making such fraudulent use
of this certificate to a fine or imprisonment,
or both, together with the costs of prosecution.
llllllllllllllllllllllll
Name of Purchaser
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lllll
lllll
lllll
lllll
lllll
lllll
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229103
Internal Revenue Service, Treasury
§ 52.4682–5
emcdonald on DSK67QTVN1PROD with CFR
llllllllllllllllllllllll
Address of Purchaser
llllllllllllllllllllllll
llllllllllllllllllllllll
Taxpayer Identifying Number of Purchaser
llllllllllllllllllllllll
Title of person signing
llllllllllllllllllllllll
Printed or typed name of person signing
llllllllllllllllllllllll
Signature
ment under section 4681 on ODCs that
are exported. Persons other than manufacturers and importers of ODCs cannot file claims for credit or refund of
tax imposed under section 4681 on ODCs
that are exported.
(2) Limitation. The amount of credits
or refunds of tax under this paragraph
(f) is limited—
(i) In the case of tax paid on post-1989
ODCs sold during a calendar year, to
the amount (if any) by which the post1989 exemption amount for the year exceeds the tax benefit provided to such
post-1989 ODCs under paragraph (b) of
this section; and
(ii) In the case of tax paid on post1990 ODCs sold during a calendar year,
to the amount (if any) by which the
post-1990 exemption amount for the
year exceeds the tax benefit provided
to such post-1990 ODCs under paragraph
(b) of this section.
(3) Conditions to allowance of credit or
refund. The conditions of this paragraph (f)(3) are met if the manufacturer or importer—
(i) Documents the exportation of the
ODCs in accordance with paragraph
(d)(4) of this section; and
(ii) Establishes that it has—
(A) Repaid or agreed to repay the
amount of the tax to the person that
exported the ODC; or
(B) Obtained the written consent of
the exporter to the allowance of the
credit or the making of the refund.
(4) Procedural rules. See section 6402
and the regulations under that section
for procedural rules relating to filing a
claim for credit or refund of tax.
(g) Examples. The following examples
illustrate the provisions of this section. In each example, the sales are
qualifying sales for export (within the
meaning of paragraph (d)(1) of this section), all registration, certification,
and documentation requirements of
this section are met, and the ODCs sold
for export are exported:
(4) Documentation of export—(i) After
December 31, 1992. After December 31,
1992, to document the exportation of
any ODCs, a person must have the evidence required by the Environmental
Protection Agency as proof that the
ODCs were exported.
(ii) Before January 1, 1993. Before January 1, 1993, to document the exportation of any ODCs, a person must have
evidence substantially similar to that
required by the Environmental Protection Agency as proof that the ODCs
were exported.
(e) Purchaser liable for tax—(1) Purchaser in qualifying sale. The purchaser
of ODCs in a qualifying sale for export
is treated as the manufacturer of the
ODC and is liable for any tax imposed
under section 4681 (determined without
regard to exemptions for qualifying
sales under this section or § 52.4682–1)
when it sells or uses the ODCs if that
purchaser does not(i) Export the ODCs and document
the exportation of the ODCs in accordance with paragraph (d)(4) of this section; or
(ii) Sell the ODCs in a qualifying resale for export.
(2) Purchaser in qualifying resale. The
purchaser of ODCs in a qualifying resale for export is treated as the manufacturer of the ODC and is liable for
any tax imposed under section 4681 (determined without regard to exemptions
for qualifying sales under this section
or § 52.4682–1) when it sells or uses the
ODCs if that purchaser does not export
the ODCs and document the exportation of the ODCs in accordance with
paragraph (d)(4) of this section.
(f) Credit or refund—(1) In general. Except as provided in paragraph (f)(2) of
this section, a manufacturer or importer that meets the conditions of
paragraph (f)(3) of this section is allowed a credit or refund (without interest) of the tax it paid to the govern-
Example 1. (i) Facts. D, a corporation, manufactures CFC–11, a post-1989 ODC, and does
not manufacture or import any other ODCs.
In 1993, D manufactures 100,000 pounds of
CFC–11, the maximum quantity D is allowed
to manufacture in 1993 under EPA regulations. D has no additional production allowance from EPA for 1993. In 1993, the tax on
CFC–11 is $3.35 per pound. D’s 1986 export percentage for post-1989 ODCs is 50%. In 1993, D
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sells 80,000 pounds of CFC–11 in qualifying
sales for export. The remainder of D’s production is not exported.
(ii) Components of limit on tax benefit. Under
paragraph (c)(1) of this section, D’s exemption amount for 1993 is equal to the sum of—
(A) D’s 1986 export percentage multiplied
by the aggregate tax that would (but for section 4682(d), section 4682(g), and § 52.4682–5) be
imposed under section 4681 on the maximum
quantity of post-1989 ODCs D is permitted to
manufacture during 1993;
(B) The aggregate tax that would (but for
section 4682(d), section 4682(g), and § 52.4682–5)
be imposed under section 4681 on post-1989
ODCs that D manufactures during 1993 under
an additional production allowance; and
(C) The aggregate tax that would (but for
section 4682(d), section 4682(g), and § 52.4682–5)
be imposed under section 4681 on post-1989
ODCs imported by D during 1993.
(iii) Limit on tax benefit. The amounts described in paragraphs (ii)(B) and (C) of this
Example 1 are equal to zero. Thus, D’s 1993 exemption amount is $167,500 (50% of $335,000
(the tax that would otherwise be imposed on
100,000 pounds of CFC–11 in 1993)).
(iv) Application of limit on tax benefit. Under
paragraph (b)(2) of this section, the tax imposed on the CFC–11 D sells for export is
equal to the excess of the tax that would
have been imposed on those ODCs but for
section 4682(d) and § 52.4682–5, over D’s 1993
exemption amount. But for § 52.4682–5,
$268,000 ($3.35 × 80,000) of tax would have been
imposed on the CFC–11 sold for export. Thus,
$100,500 ($268,000 ¥ $167,500) of tax is imposed
on the CFC–11 sold for export.
Example 2. (i) Facts. E, a corporation, manufactures CFC–11, a post-1989 ODC, and does
not manufacture or import any other ODCs.
In 1993, E manufactures 100,000 pounds of
CFC–11, the maximum quantity E is allowed
to manufacture in 1993 under EPA regulations. E has no additional production allowance from EPA for 1993. In 1993, the tax on
CFC–11 is $3.35 per pound. E’s 1986 export percentage for post-1989 ODCs is 50%. In 1993, E
sells 45,000 pounds of CFC–11 tax free in
qualifying sales for export and pays tax
under section 4681 on an additional 35,000
pounds of exported CFC–11. The remainder of
E’s production is not exported.
(ii) Limit on tax benefit. E’s 1993 exemption
amount is $167,500, (50% of $335,000 (the tax
that would otherwise be imposed on 100,000
pounds of CFC–11 in 1993)). The credit or refund allowed to E under paragraph (f) of this
section is limited under paragraph (f)(2) of
this section to the amount by which E’s 1993
exemption amount exceeds E’s 1993 tax benefit under paragraph (b) of this section.
(iii) Application of limit on tax benefit. Because E sold 45,000 pounds of CFC–11 tax free
in qualifying sales for export in 1993, E’s 1993
tax benefit under paragraph (b) of this section is $150,750 ($3.35 × 45,000). Thus, the cred-
it or refund allowed to E under paragraph (f)
of this section is limited to $16,750
($167,500¥$150,750).
Example 3. (i) Facts. F, a corporation, manufactures CFC–11, a post-1989 ODC, and does
not manufacture any other ODCs. F also imports CFC–11. In 1993, F manufactures 60,000
pounds of CFC–11 (100,000 pounds is the maximum quantity F is allowed to manufacture
in 1993 under EPA regulations) and imports
40,000 pounds. F has no additional production
allowance from EPA for 1993. In 1993, the tax
on CFC–11 is $3.35 per pound. F’s 1986 export
percentage for post-1989 ODCs is 50%. In 1993,
F sells 45,000 pounds of CFC–11 tax free in
qualifying sales for export and pays tax
under section 4681 on an additional 35,000
pounds of exported CFC–11. The remainder of
F’s production is not exported.
(ii) Limit on tax benefit. F’s 1993 exemption
amount is $301,500, ($167,500 (50% of $335,000
(the tax that would otherwise be imposed on
100,000 pounds of CFC–11 in 1993) plus $134,000
(the tax that would otherwise be imposed on
the 40,000 pounds imported)). The credit or
refund allowed to F under paragraph (f) of
this section is limited under paragraph (f)(2)
of this section to the amount by which F’s
1993 exemption amount exceeds F’s 1993 tax
benefit under paragraph (b) of this section.
(iii) Application of limit on tax benefit. Because F sold 45,000 pounds of CFC–11 tax free
in qualifying sales for export in 1993, F’s 1993
tax benefit under paragraph (b) of this section is $150,750 ($3.35 × 45,000). Thus, the credit or refund allowed to F under paragraph (f)
of this section is limited to $150,750
($301,500¥$150,750). The limitation does not
affect F’s credit or refund because the tax F
paid on exported ODCs is only $117,250 ($3.35
× 35,000).
(h) Effective date. This section is effective January 1, 1993.
[T.D. 8622, 60 FR 52853, Oct. 11, 1995]
PART 53—FOUNDATION AND
SIMILAR EXCISE TAXES
Subpart A—Taxes on Investment Income
Sec.
53.4940–1 Excise tax on net investment income.
Subpart B—Taxes on Self-Dealing
53.4941(a)–1 Imposition of initial taxes.
53.4941(b)–1 Imposition of additional taxes.
53.4941(c)–1 Special rules.
53.4941(d)–1 Definition of self-dealing.
53.4941(d)–2 Specific acts of self-dealing.
53.4941(d)–3 Exceptions to self-dealing.
53.4941(d)–4 Transitional rules.
53.4941(e)–1 Definitions.
53.4941(f)–1 Effective dates.
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| File Type | application/pdf |
| File Modified | 2013-06-03 |
| File Created | 2013-06-03 |