Superfund; Imported Substances; Procedures for Filing a Petition

Part III
Administrative, Procedural, and Miscellaneous
26 CFR 601.601: Rules and Regulations.
(Also Part I, §§ 4672; 52.0-1.)
Rev. Proc. 2022-26
SECTION 1. PURPOSE
This revenue procedure provides the exclusive procedures for requesting a
determination under § 4672(a)(2) of the Internal Revenue Code (Code) that a substance
be added to or removed from the list of taxable substances under § 4672(a) of the
Code. The sale or use of any such taxable substances by importers of such substances
is subject to the excise tax imposed by § 4671(a) of the Code, subject to certain
exceptions. Unless otherwise stated, all section references in this revenue procedure
are to the Code.
SECTION 2. BACKGROUND
.01 Overview. The Comprehensive Environmental Response, Compensation, and
Liability Act of 1980 (CERCLA), Public Law 96-510, 94 Stat. 2767 (1980), informally
referred to as “Superfund,” was enacted, in part, to create a hazardous substance
cleanup program. Section 221 of CERCLA established the “Hazardous Substance
Response Trust Fund,” which was funded, in part, by the tax imposed by § 4661(a) on
sales or uses of taxable chemicals (enacted by § 211 of CERCLA) and the tax imposed
by § 4671(a) on sales or uses of imported taxable substances that use one or more
taxable chemicals in their manufacture or production (enacted by § 515 of the

Superfund Amendments and Reauthorization Act of 1986, Public Law 99-499, 100 Stat.
1613 (1986)), collectively, referred to as the “Superfund chemical taxes.” The
Superfund chemical taxes previously expired on December 31, 1995. As explained in
section 2.04 of this revenue procedure, the Superfund chemical taxes have been
reinstated, effective July 1, 2022, with several modifications.
.02 Tax on taxable chemicals. Section 4661(a) imposes a tax on any taxable
chemical sold or used by the manufacturer, producer, or importer. See also
§ 4662(c)(1). Section 4661(b) provides a list of taxable chemicals and the amount of
tax imposed by § 4661(a) on those chemicals. Section 4662 provides definitions and
special rules applicable to the § 4661 tax, including definitions of the terms “taxable
chemical” and “United States.”
.03 Tax on taxable substances.
(1) Overview. Section 4671(a) imposes a tax on any taxable substance sold or
used by the importer. Section 4671(b) generally provides that the amount of tax
imposed by § 4671(a) with respect to any taxable substance is equal to the amount of
tax that would have been imposed by § 4661 on the taxable chemicals used as
materials in the manufacture or production of the taxable substance if such taxable
chemicals had been sold in the United States for use in the manufacture or production
of the taxable substance. Section 4672, in part, provides definitions for purposes of the
tax imposed by § 4671(a). As described in section 2.03(2) of this revenue procedure,
§ 4672(a) defines the term “taxable substance.” Section 4672(b)(1) defines the term
“importer” as the person entering the taxable substance for consumption, use, or

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warehousing. Section 4672(b)(2) provides that the terms “taxable chemical” and
“United States” have the respective meanings given such terms by § 4662(a).
(2) List of taxable substances. Section 4672(a)(1) generally provides that the term
“taxable substance” means any substance which, at the time of sale or use by the
importer, is listed as a taxable substance by the Secretary of the Treasury or her
delegate (Secretary). Section 4672(a)(2) provides that a substance “shall be listed”
under § 4672(a)(1) if (A) the substance is contained in the statutory list of taxable
substances under § 4672(a)(3), or (B) the Secretary determines, in consultation with the
Administrator of the Environmental Protection Agency (EPA) and the Commissioner of
U.S. Customs and Border Protection (CBP), that taxable chemicals constitute more than
a specified percent of the weight (or more than a specified percent of the value) of the
materials used to produce such substance (determined on the basis of the predominant
method of production). For purposes of the tax imposed by § 4671(a) as previously in
effect before January 1, 1996, the specified percent required to be met by either the
weight or value test of § 4672(a)(2)(B) was 50 percent.
(3) Addition or removal of listed taxable substances. The last sentence of
§ 4672(a)(2) provides that if an importer or exporter of any substance requests that the
Secretary determine that such substance be added to or removed from the list of
taxable substances under § 4672(a)(1), the Secretary must make that determination
within 180 days after the date the request was filed. Similarly, § 4672(a)(4) provides
that the Secretary “shall add to the list” under § 4672(a)(3) substances that meet either
the weight or value tests of § 4672(a)(2)(B) and that the Secretary “may remove from
such list only substances which meet neither of such tests.” For purposes of the tax

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imposed by § 4671(a) as previously in effect before January 1, 1996, Notice 89-61,
1989-1 C.B. 717, as modified by Notice 95-39, 1995-1 C.B. 312, and suspended by
Notice 2021-66, 2021-52 I.R.B. 901, prescribed the former process for certain persons
to request that certain substances be added to or removed from the list of taxable
substances under § 4672(a).
.04 Reinstatement of Superfund chemical taxes. Effective July 1, 2022, § 80201 of
the Infrastructure Investment and Jobs Act (IIJA), Public Law 117-58, 135 Stat. 429
(November 15, 2021) reinstates the Superfund chemical taxes with several
modifications, including adjustments to the applicable rates of tax. Specifically,
§ 4672(a)(2)(B), as modified by § 80201(c)(1) of the IIJA, provides that a substance is
listed under § 4672(a)(1) if the Secretary determines, in consultation with the EPA
Administrator and the CBP Commissioner, that taxable chemicals constitute more than
20 percent of the weight (or more than 20 percent of the value) of the materials used to
produce such substance (determined on the basis of the predominant method of
production). In this regard, § 80201(c)(2) of the IIJA provides that except as otherwise
determined by the Secretary, any substance that was determined to be a taxable
substance by reason of § 4672(a)(2) prior to November 15, 2021 (that is, the date of
enactment of the IIJA), “shall continue to be treated as a taxable substance for
purposes of such section after such date.” As required by § 80201(c)(3) of the IIJA,
Notice 2021-66 was published to provide the initial list of taxable substances under
§ 4672(a). Section 4 of Notice 2021-66 provides that the initial list of taxable
substances required to be published by § 80201(c)(3) of the IIJA includes the taxable
substances listed in § 4672(a)(3) and the 101 taxable substances listed in the notice,

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based on the presumption in § 80201(c)(2) of the IIJA and other considerations, such as
determinations regarding taxable substances made pursuant to the process described
in Notice 89-61 prior to November 15, 2021, and the reduction of the weight and value
thresholds in § 4672(a)(2)(B) made by § 80201(c)(1) of the IIJA. Therefore, as of the
date of publication of this revenue procedure, the list of taxable substances under
§ 4672(a) consists of the statutory list of 50 taxable substances in § 4672(a)(3), and the
list of 101 additional taxable substances listed in section 4 of Notice 2021-66. The
Secretary will add substances to or remove substances from the list of taxable
substances under § 4672(a) in accordance with § 4672(a)(2) and (4). Substances may
be added to or removed from the list of taxable substances under § 4672(a) through the
determination process described in this revenue procedure.
SECTION 3. DEFINITIONS
The following definitions apply for purposes of this revenue procedure:
.01 Conversion factor. The term “conversion factor” means the ratio of the weight of
an individual taxable chemical used in the production of a substance to the total weight
of the substance.
.02 Exporter. The term “exporter” means the person named as shipper or consignor
in the export bill of lading.
.03 Harmonized Tariff Schedule of the United States number. The term
“Harmonized Tariff Schedule of the United States (HTSUS) number” means the 10-digit
tariff number within the HTSUS used to determine customs duties to be paid on all
merchandise imported into the United States and its statistical annotation. Additional
information on HTSUS numbers is available at:

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https://www.usitc.gov/harmonized_tariff_information.
.04 Importer. The term “importer” means the person entering the taxable substance
for consumption, use, or warehousing.
.05 List. The term “List” means the list of taxable substances under § 4672(a).
Unless the Secretary determines under § 4672(a)(2) or (4) that the taxable substance is
removed from the List, every taxable substance described in section 3.12 of this
revenue procedure is on the List.
.06 Material. The term “material” means a chemical component used in the
predominant method of production of the substance. The term “material” may include a
taxable chemical.
.07 Molecular formula. The term “molecular formula” means a chemical formula that
shows the number and kinds of atoms in the substance.
.08 Schedule B number. The term “Schedule B number” is a 10-digit international
export code used to classify goods for export to another country. Schedule B numbers
are administered by the United States Census Bureau. Additional information on
Schedule B numbers is available at: https://www.census.gov/newsroom/blogs/globalreach/2017/12/finding-your-schedule-b-number.html.
.09 Structural formula. The term “structural formula” means a chemical formula that
provides a graphic representation of how the atoms are arranged and bonded in the
smallest unit of the substance.
.10 Substance. The term “substance” means the chemical substance to which the
petition described in sections 5 and 6 of this revenue procedure relates. For synthetic
organic chemical substances, the term “substance” does not include a textile fiber (other

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than a polymer in extruded fiber form), yarn, or staple, or a fabricated product that is
molded, formed, woven, or otherwise finished into an end-use product. For inorganic
chemical substances, the term “substance” does not include fabricated products that
are molded, formed, or otherwise finished into end-use products.
.11 Taxable chemical. The term “taxable chemical” means a chemical listed under
§ 4661(b).
.12 Taxable substance. Except as provided in this section 3.12, the term “taxable
substance” means—
(1) any substance that is one of the 50 taxable substances in the list under
§ 4672(a)(3),
(2) any substance that is one of the 101 taxable substances listed in section 4 of
Notice 2021-66, and
(3) any substance that the Secretary has determined under § 4672(a)(2) or (4) to
add to the List described in section 3.05 of this revenue procedure.
The term “taxable substance” does not include any substance that the Secretary has
removed from the List pursuant to § 4672(a)(2) or (4).
.13 United States. The term “United States” has the meaning given such term by
§ 4612(a)(4) by reason of §§ 4662(a)(2) and 4672(b)(2).
.14 Value. The term “value” means the average market price, during the preceding
twelve months, of each material in the stoichiometric material consumption equation
describing the production of the substance.

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SECTION 4. REQUESTS FOR MODIFICATIONS TO THE LIST OF TAXABLE
SUBSTANCES UNDER § 4672(a)
.01 Importers, exporters, and interested persons. An importer or exporter of any
substance, or a person other than an importer or exporter of such substance (interested
person), may request to add such substance to the List or remove such substance from
the List by submitting a petition to the IRS in accordance with the procedures described
in sections 5 and 6 of this revenue procedure. Any requests to modify the List that were
submitted prior to publication of this revenue procedure or in response to the request for
comments in Notice 2021-66 do not meet the requirements of sections 5 and 6 of this
revenue procedure. Such requests will not be processed and must be submitted in
accordance with the procedures described in sections 5 and 6 of this revenue
procedure.
.02 Threshold requirements. An importer, exporter, or interested person may submit
a petition to add a substance to the List if such person determines that taxable
chemicals constitute more than 20 percent of the weight or value of the materials used
to produce such substance, determined on the basis of the predominant method of
production. An importer, exporter, or interested person may submit a petition to remove
a substance from the List if such person determines that taxable chemicals constitute
20 percent or less of the weight and 20 percent or less of the value of the materials
used to produce such substance, determined on the basis of the predominant method of
production.
.03 Separate petitions required. An importer, exporter, or interested person must
submit a separate petition for each substance that the person seeks to have added to or
removed from the List.
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.04 Publication of information in the Federal Register. The determination process
described in this revenue procedure is a public process that is designed to provide the
public with notice of any proposed modifications to the List and the opportunity to
comment on those proposed modifications. Petitioners are strongly discouraged from
submitting confidential business information or trade secrets, because the determination
process is a public process. As described in sections 9.02 and 10.04 of this revenue
procedure, information petitioner submits relating to the petition, including the
petitioner’s name, will be published in the Federal Register as part of the notice and
comment process.
SECTION 5. HOW TO SUBMIT PETITIONS
.01 Overview. An importer, exporter, or interested person (each, a petitioner) may
submit a petition using electronic facsimile, email, or certified mail as described below.
Petitioners are encouraged to submit petitions by electronic facsimile.
.02 When a petition is considered filed. A submitted petition is considered “filed” for
purposes of the 180-day determination period set forth in § 4672(a)(2) only when it is
accepted by the IRS. The filing date of a submitted petition is the date of the
acknowledgement letter from the IRS accepting the submitted petition, as described in
section 5.03 of this revenue procedure. The IRS will accept a submitted petition only if
the petition includes all of the information required in section 6 of this revenue
procedure.
.03 Acknowledgement of petition’s receipt. The IRS will acknowledge receipt of a
submitted petition by letter. Any petition received before July 1, 2022, will be deemed
received on July 1, 2022. The IRS will acknowledge receipt of a submitted petition by

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letter regardless of whether the petition is submitted by electronic facsimile, email, or
certified mail. The acknowledgement letter will indicate whether the IRS has accepted
the submitted petition, or whether the IRS has rejected the submitted petition due to
incomplete or insufficient information. If the IRS accepts the submitted petition, the
filing date of the submitted petition is the date of the acknowledgment letter accepting
the petition. If the IRS rejects the submitted petition, the petitioner may submit a new
petition with the required additional information. The filing date is the date of the
acknowledgment letter accepting the new petition.
.04 Submission by electronic facsimile. A petitioner may submit a petition by
electronic facsimile to the following number: (855) 578-0543. Petitioners and their
representatives are encouraged to use a secure electronic facsimile service for
submitting petitions. When compiling the petition for submission, petitioners should
provide clear titles for the documents and number all pages. If the submission is over
10MB or over 50 pages, petitioners should break it into smaller components, number
the components sequentially, and indicate the total number of components (such as “1
of 4,” “2 of 4,” 3 of 4,” and “4 of 4”). Petitioners should use a cover sheet when
submitting the petition by electronic facsimile. The cover sheet should provide the
petitioner’s contact information, state that the electronic facsimile contains a
determination request under Revenue Procedure 2022-26, and provide the total number
of pages of the electronic facsimile.
.05 Submission by email
(1) Overview. Until further notice, a petitioner may submit a petition by emailing
the petition to: [email protected]. There are more risks associated with

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submitting information by email than by electronic facsimile, such as the possibility that
sensitive taxpayer information could be intercepted. Accordingly, the IRS encourages
petitioners to use a secure electronic facsimile service for submitting petitions. As an
alternative, section 5.05(2) of this revenue procedure provides procedures for using
encrypted email attachments for submitting a petition.
(2) Submission using encrypted email attachments. Petitioners using encrypted
email attachments may choose to use a compression utility compatible with SecureZIP
(note that many open-source utilities are not compatible with SecureZIP), Adobe
Acrobat Pro password encryption, or Microsoft Office 2016/365 Protect Document to
encrypt and send password-protected files. Because these programs do not encrypt
the subject line or body of an email or the file name of the attachment, all sensitive
information should be included only in the encrypted attachment. These programs
require that a sender create a password for the recipient to use to decrypt the
attachments. The password should never be sent in the same email as the encrypted
attachment. Instead, it should be provided to the IRS in a separate email with a subject
line that makes it easy to connect the password to the email with the encrypted
attachment. When compiling the petition package for submission, the petitioner should
provide clear titles for the documents and file names. The petitioner should also encrypt
the files or enable the encryption utility on the email system before generating the email.
If the submission is over 5 MB or over 50 pages, the petitioner should break it into
smaller components that do not exceed 5 MB each, number the components
sequentially, and indicate the total number of components (such as “1 of 4,” “2 of 4,” “3
of 4,” and “4 of 4”). Petitioners should refer to www.IRS.gov/UsingEmail for additional

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information about encrypting files and sending documents to the IRS by email.
Petitioners should use strong passwords for encrypting files (at least twelve characters,
including a mix of upper- and lower-case letters, numbers, and special characters).
.06 Submission by certified mail. A petitioner may submit a petition by certified mail,
return receipt requested to:
Director SB/SE Exam, Specialty Policy
Internal Revenue Service
SE:S:E:HQ:SEP
c/o Specialty Exam Policy, Tech Advisor
5000 Ellin Rd., Mail Stop C3-255
Office C2-156
Lanham, MD 20784
SECTION 6. WHAT MUST BE INCLUDED IN THE PETITION
.01 Required information for all petitions. Except as specifically provided in this
section 6.01, the IRS will accept a submitted petition only if the petition includes all of
the following information:
(1) A statement identifying whether the petitioner is an importer or exporter of the
substance, or an interested person.
(2) The name, address, taxpayer identification number (TIN) of the petitioner; if
someone is filing the petition on behalf of the petitioner, the name of the person filing
the petition and that person’s relationship to the petitioner. An interested person
submitting a petition is not required to provide a TIN.
(3) A Form 2848, Power of Attorney and Declaration of Representative, if the
petition is submitted by the petitioner’s authorized representative.
(4) The name of the substance.
(5) A description of the substance and its use.

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(6) The molecular formula of the substance, the structural formula of the
substance, and the physical form of the substance, as determined by the physical state
of the substance (gas, liquid, solid).
(7) The HTSUS number and the Schedule B number of the substance; the
Chemical Abstract Service Registry (CAS) number of the substance, if applicable. In
connection with the HTSUS number of the substance, the petitioner should also indicate
whether the imported substance is in forms or packings for retail sale at entry; however,
the information regarding forms and packings is not required and a petition will not be
rejected if this information is not included.
(8) The name of the production process that the petitioner has identified as the
predominant method of production of the substance.
(9) The data supporting the petitioner’s position that the production process
identified as the predominant method of production of the substance is, in fact, the
predominant method of production.
(10) An explanation of the production process identified as the predominant
method of production of the substance that emphasizes the overall chemical reaction
used to process the underlying taxable chemical or chemicals into the substance. The
petitioner must include a brief description of all reaction pathways for materials used in
the predominant method of production that are derived from a taxable chemical, as
shown in the example in section 7.02 of this revenue procedure.
(11) The names, HTSUS numbers, Schedule B numbers, and CAS numbers (to
the extent CAS numbers are applicable), of all taxable chemicals used as materials in

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the production of the substance, based on the process identified as the predominant
method of production of the substance.
(12) The molecular formula and the structural formula for each material used in the
production of the substance, based on the process identified as predominant method of
production of the substance.
(13) The stoichiometric material consumption equation based on the process
identified as the predominant method of production of the substance, assuming a 100percent yield. The equation must include all materials that are consumed in the
process.
(14) The conversion factor for each taxable chemical used to produce the
substance, based on the process identified as the predominant method of production of
the substance. Petitioner must use the stoichiometric material consumption equation to
determine the conversion factor(s). If the request is to add a substance to the List, the
petitioner must show that taxable chemicals constitute over 20 percent of the weight or
the value of the materials used to produce the substance. If the request is to remove a
substance from the List, the petitioner must show that the substance meets neither the
weight nor the value test described in § 4672(a)(2)(B).
(15) If the substance is a mixture, the percent composition by weight of each
component in the mixture, including solvents, stabilizers, and additives, as well as a
description of each component’s function in the mixture.
(16) Any tariff classification rulings the petitioner has received from CBP under the
provisions of Part 177 of the Customs Regulations (19 C.F.R. 177) with regard to the
substance. If a petitioner has submitted a tariff classification ruling request under the

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provisions of 19 C.F.R. 177 for the substance, the petitioner must so indicate, and
include that ruling request’s identification number in the petition. To the extent the
petitioner is aware of any tariff classification rulings that classify the same or a
substantially similar substance for which a petitioner seeks a determination, the
petitioner should include such ruling in the petition; however, this information is not
required and a petition will not be rejected if this information is not included. 1
(17) A statement identifying the extent to which any information included in the
petition, other than the information described in section 9.02 and 10.04 of this revenue
procedure, is confidential business information that should not be published as part of
the Notice of Filing or Notice of Determination. As noted in section 4.04 of this revenue
procedure, petitioners are strongly discouraged from submitting confidential business
information because of the public nature of the determination process. A determination
to add or remove a substance from the List will not be based on confidential business
information.
(18) A statement, signed under penalties of perjury, that the petitioner has
examined the petition and to the best of petitioner's knowledge and belief, the
information in the petition is true, correct, and complete.
.02 Additional information for petitions based on value. For petitions based on
value, the following additional information is required:

1 Such rulings may be researched on the Customs Rulings Online Search Service at
https://rulings.cbp.gov/home. Pursuant to 19 CFR 177.1(c), any person who, as an importer or exporter
of merchandise, has a direct and demonstrable interest in the classification question presented in the
ruling request, or their authorized agent, may request a binding Customs ruling at
https://erulings.cbp.gov/s/.

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(1) The per-unit value of each taxable chemical used in the production of the
substance, based on the predominant method of production.
(2) The total value of all materials used in the production of the substance, based
on the per-unit value of each material used in the predominant method of production.
The units of measurement must be the same as those used in section 6.02(1) of this
revenue procedure.
.03 Optional summary of information for Notice of Filing. As part of any submission,
a petitioner may include a separate document that specifically identifies or summarizes
the information from the petition that should be included in the Notice of Filing described
in section 9.02 of this revenue procedure.
SECTION 7. STOICHIOMETRIC MATERIAL CONSUMPTION EQUATION
EXPLANATION AND EXAMPLE
.01 Overview. Section 6.01(13) of this revenue procedure requires the petitioner to
include the stoichiometric material consumption equation for the substance, based on
the process identified as the predominant method of production of the substance. The
petitioner must determine the stoichiometric material consumption equation by
examining the established chemical process. Some of the materials used in the
predominant method of production may be derived from one or more taxable chemicals.
If so, such materials must be examined stoichiometrically to capture all taxable
chemicals used to produce the substance. In such instances, the established chemical
process must be further expanded to include individual chemical reactions/processes
that may be required to produce the substance from the taxable chemical or chemicals.
The final stoichiometric material consumption equation is produced by summing any
individual reactions of taxable chemicals.
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.02 Example. The following is an example that satisfies the requirements of section
6.01(13) of this revenue procedure. This example is for illustrative purposes only. In
addition, this example assumes that the syngas used to produce the methanol was not
derived from coal. See § 4662(b)(4).
Substance: Dimethyl terephthalate
HTSUS item number of substance: 2917.37.00.00
CAS number of substance: 120-61-6
Schedule B number of substance: 2917.37.0000
Predominant method of production: Dimethyl terephthalate is produced by the esterification of
terephthalic acid with methanol. Terephthalic acid is made from p-xylene (an isomer of xylene) and
oxygen. Methanol is made from syngas. Hydrogen for the syngas is made from methane via the
steam methane reforming process.
The chemical equation for the production of dimethyl terephthalate is:
C8H6O4 (terephthalic acid) + 2 CH3OH (methanol)  C10H10O4 (dimethyl terephthalate) + 2 H2O (water)
Derived taxable chemicals:
Terephthalic acid is made from p-xylene and oxygen:
C8H10 (xylene) + 3 O2  C8H6O4 (terephthalic acid) + 2 H2O
Methanol is made from syngas:
2 [CO + 2H2  CH3OH (methanol)]
Hydrogen is made from steam-methane reforming:
CH4 (methane) + 2 H2O  4 H2 (hydrogen) + CO2
Xylene and methane are taxable chemicals. Therefore, the derived stoichiometric material
consumption equation is:
[C8H10 (xylene) + 3 O2 - 2 H2O] + [2 CO +(CH4 (methane) + 2 H2O - CO2)]  C10H10O4 (dimethyl
terephthalate) + 2 H2O
Simplifying to the stoichiometric material consumption equation:
C8H10 (xylene) + CH4 (methane) + 3 O2 + 2 CO  C10H10O4 (dimethyl terephthalate) + 2 H2O + CO2

SECTION 8. CONVERSION FACTOR EXPLANATION AND EXAMPLE
.01 Overview. When submitting a petition to the IRS, the petitioner must identify the
predominant method of production of the substance. The petitioner must also provide
the stoichiometric material consumption equation for the substance, based on the
process identified as the predominant method of production, as shown in section 7.02 of
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this revenue procedure. In addition, the petitioner must use the stoichiometric material
consumption equation to determine the conversion factor for each taxable chemical
used to produce the substance. The conversion factors are used to determine whether
taxable chemicals constitute more than 20 percent, by weight, of the materials used in
the production of the substance, based on the predominant method of production. If the
taxable chemicals used in the production of the substance meet the 20 percent weight
(or value) threshold, the conversion factors may be used to determine the tax rate of the
substance.
.02 Percent composition of taxable chemicals in a substance. The petitioner must
use consistent weight units and should note the units in the petition (the example in
section 8.03 of this revenue procedure uses grams). The petitioner must add the
weights of all the taxable chemicals used to produce the substance (the Tax Weight).
The petitioner must also add the weights of all materials, including taxable chemicals,
used to produce the substance (the Total Weight). If the ratio of Tax Weight to Total
Weight multiplied by 100 percent ((Tax Weight/Total Weight) x 100%) is greater than 20
percent, the substance meets the weight threshold for a taxable substance set forth in
§ 4672(a)(2)(B).
.03 Example. The following is an example that satisfies the requirements of section
6.01(14) of this revenue procedure. This example is for illustrative purposes only.

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Stoichiometric material consumption equation for dimethyl terephthalate:
C8H10 (xylene) + CH4 (methane) + 3 O2 + 2 CO  C10H10O4 (dimethyl terephthalate)+ 2 H2O + CO2
Stoichiometric material consumption equation used to determine the weight (in grams) of materials
used to produce dimethyl terephthalate:
C8H10 (xylene) + CH4
(methane)
106.16 g + 16.06 g = 122.22 g

+

3 O2 + 2 CO



96.00 g + 56.02 g = 152.02 g

C10H10O4

+

2 H2O + CO2

194.19 g

Total Weight = 122.22 g + 152.02 g = 274.24 g
Percent of dimethyl terephthalate produced with taxable chemicals:
(122.22 g Tax Weight) / (274.24 g Total Weight) x 100% = 44.57%
Conversion factors of taxable chemicals: The weight of an individual taxable chemical used in the
stoichiometric material consumption equation is divided by the weight of the substance. This ratio is a
multiplier, i.e. a conversion factor, that is used for each taxable chemical used in the predominant
method of production of the substance to determine an overall tax rate for the substance.
For example:
If:
Taxable chemical A + Taxable chemical B  Substance X
Then:

A conversion factor = (Chemical Weight A) / (Chemical Weight X)
B conversion factor = (Chemical Weight B) / (Chemical Weight X)

C8H10 (p-xylene) + CH4 (methane) + 3 O2 + 2 CO  C10H10O4 (dimethyl terephthalate) + 2 H2O + CO2
Both p-xylene and methane are taxable chemicals.
Conversion factor p-xylene: (106.16 g p-xylene) / (194.19 g dimethyl terephthalate) = 0.55
Conversion factor methane: (16.06 g methane) / (194.19 g dimethyl terephthalate) = 0.08
In summary, dimethyl terephthalate should be added to the list of taxable substances and p-xylene and
methane are the taxable chemicals used to produce dimethyl terephthalate.
Percent Composition Taxable

44.57 %

Conversion factor for p-xylene

0.55

Conversion factor for methane

0.08

The tax rate for dimethyl terephthalate is calculated as follows: [($9.74 rate of tax for p-xylene) x 0.55] +
[($6.88 rate of tax for methane) x 0.08]
Total tax rate for dimethyl terephthalate = $5.91 per ton

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SECTION 9. PUBLIC NOTICE, COMMENTS, REQUESTS FOR A PUBLIC HEARING
.01 Notice of Filing. After a submitted petition has been filed, the IRS will publish a
“Notice of Filing” in the Federal Register on www.federalregister.gov and on
www.regulations.gov. The Notice of Filing will summarize the petition and request
comments.
.02 Information included in Notice of Filing. The Notice of Filing will be based upon
the information provided by the petitioner in the filed petition and will include all of the
following information:
(1) The name of the substance that is the subject of the petition.
(2) The name of the petitioner and whether the petitioner is an importer of the
substance, an exporter of the substance, or an interested party.
(3) The HTSUS number and the Schedule B number of the substance, and the
CAS number of the substance, if applicable.
(4) The filing date of the petition.
(5) A brief description of the petition.
(6) The process identified in the petition as the predominant method of production
of the substance.
(7) The stoichiometric material consumption equation for the substance, based on
the process identified as the predominant method of production of the substance.
(8) In the case of a petition to add a substance to the List, the rate of tax for the
substance, based upon the conversion factors of the taxable chemicals used in the
production of the substance, as provided by the petitioner.

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(9) The public docket on www.regulations.gov for the Notice of Filing and other
information needed for submitting comments.
.03 Written comments. As part of the determination process, the Secretary will
consider all written comments submitted within 60 days of the date the Notice of Filing is
published in the Federal Register on www.federalregister.gov, provided the comments
are submitted in accordance with the comment submission instructions contained in the
Notice of Filing. All commenters are strongly encouraged to submit public comments
electronically via the Federal Rulemaking Portal at www.regulations.gov in accordance
with the instructions for submitting comments contained in the Notice of Filing. The
Treasury Department and the IRS will publish any comment submitted in response to
the Notice of Filing to the public docket for the Notice of Filing on www.regulations.gov.
.04 Public hearing. Any person submitting a written comment in response to the
Notice of Filing may include a request for a public hearing in such person’s written
comment. If a public hearing is scheduled, notice of the time and place of the hearing
will be published in the Federal Register.
SECTION 10. DETERMINATIONS
.01 Actions prior to making determination. The Secretary will make a determination
under § 4672(a)(2) or (4) on a filed petition only after each of the following has occurred:
(1) Publication of the Notice of Filing.
(2) Consideration of all written comments received in response to the Notice of
Filing.
(3) A public hearing, if held.
(4) Consultation with the EPA Administrator and the CBP Commissioner.

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.02 Petition by importer or exporter. In the case of a petition submitted by an
importer or exporter of a substance, the Secretary will make a determination within 180
days after the date the petition is filed. The 180-day determination period may be
extended by agreement between the petitioner and the IRS.
.03 Petition by interested person. The 180-day determination period does not apply
to petitions submitted by interested persons.
.04 Notice of Determination. When the Secretary makes a determination on a
petition, the IRS will publish a “Notice of Determination” in the Federal Register. The
Notice of Determination will include the following information:
(1) The name of the petitioner.
(2) The Secretary’s determination regarding whether to add the substance to the
List or remove the substance from the List.
(3) The HTSUS number and the Schedule B number of the substance, and the
CAS number of the substance, if applicable.
(4) The predominant method of production of the substance.
(5) A synopsis of the reasons for the determination.
(6) The date of the determination.
(7) The effective date for any modification to the List.
(8) In the case of substances added to the List, the rate of tax prescribed by the
Secretary for the substance, based upon conversion factors and the predominant
method of production of the substance.

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SECTION 11. EFFECTIVE DATE FOR MODIFICATIONS TO THE LIST
.01 In general. The date the Secretary’s determination is filed with the Federal
Register is not the same date that a substance is added to or removed from the List.
Determinations made during a calendar quarter will be effective and reflected in the List
as of the first day of the second quarter following the quarter in which the determination
is made. Therefore, importers that will be liable for the tax imposed by § 4671(a) on the
sale or use of taxable substances added to the List, and persons that will no longer be
eligible to claim a credit or refund of the tax imposed by § 4661(a) paid on taxable
chemicals used in the manufacture, for export, of substances removed from the List, will
have a minimum of 90 days’ notice of the changes. Because the tax imposed by
§ 4671(a) is reported on a quarterly basis on Form 6627, Environmental Taxes, which is
attached to Form 720, Quarterly Federal Excise Tax Return, the effective dates of
modifications to the List align with the beginning of a calendar quarter. Thus, the
effective date of any modification to the List will be as follows:
Determinations made between

Effective date 2

July 1 and September 30 ...................

January 1

October 1 and December 31 ………...

April 1

January 1 and March 31 ....................

July 1

April 1 and June 30 ............................

October 1

The Secretary may prescribe the extent, if any, to which any ruling relating to the internal revenue laws
shall be applied without retroactive effect. See § 7805(b)(8).

2

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.02 Retroactive effect of determinations for purposes of refund claims under
§ 4662(e); protective claims for refund of § 4661(a) tax paid.
(1) If the Secretary makes a determination to add a substance to the List and that
substance is exported, for purposes of claims for refund, that substance is deemed to
have been added to the List as of the date the petition was filed. As a result, a person
that paid the § 4661(a) tax to the IRS on taxable chemicals used in the production of a
substance that was exported on or after the filing date of the petition may be entitled to
a refund, if a determination is ultimately made to add the substance to the List. A refund
is available to the person that paid the tax if the person establishes that it has repaid or
agreed to repay the amount of the tax to the exporter of the taxable substance or has
obtained the written consent of the exporter to the making of the refund. See
§ 4662(e)(2). Under certain circumstances, the exporter of the taxable substance may
claim the refund if the person that paid the tax waives its claim to the amount of the
refund. See § 4662(e)(3).
(2) Taxpayers are reminded of the need to file a claim for refund of tax within the
applicable period of limitations, even if a determination to add a substance to the List
has not yet been made. Under § 6511, a claim for refund of an overpayment of tax for
which a return is required must be filed within three years from the time the return was
filed or two years from the time the tax was paid, whichever is later. A person that paid
the § 4661(a) tax to the IRS on the taxable chemicals used as materials in the
production of the substance may file a protective claim for refund of the tax while the
petition is pending.

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(3) Refunds of tax related to a substance for which a petition is pending are
available only for exports made on or after the filing date of the pending petition and
only if a determination is ultimately made to add the substance to the List. In addition, a
refund of tax is available only if the claim is filed within the statutory period of limitations.
(4) In order to expedite processing, claims for refund should be filed on Schedule 6
(Form 8849), Other Claims. If the claim is filed while the petition is pending, the
claimant should write “PROTECTIVE REFUND CLAIM-EXPORT OF SUBSTANCE
FOR WHICH A PETITION IS PENDING” across the top of the claim form to alert the
IRS Service Center of the nature of the claim.
.03 Petitions filed between July 1, 2022, and December 31, 2022. The Treasury
Department and the IRS recognize the short time frame between publication of this
revenue procedure and reinstatement of the Superfund chemical taxes. If certain
substances are listed as taxable substances under § 4672(a) at the time of export, then
§ 4662(e) allows the taxpayer or exporter to claim a credit or refund of the tax paid
under § 4661(a) with respect to the taxable chemicals used in the production of the
exported substance. In consideration of this issue, the Treasury Department and the
IRS have determined that for purposes of section 11.02 of this revenue procedure, it is
in the interest of sound tax administration to deem any submitted petition by an importer
or exporter that is accepted by the IRS between July 1, 2022, and December 31, 2022,
as filed on July 1, 2022. However, for purposes of the time frame within which the
Secretary must make a determination, a petition submitted by an importer or exporter
will be considered filed on the date it is accepted by the IRS as described in section
5.02 of this revenue procedure.

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SECTION 12. EFFECT ON OTHER DOCUMENTS
.01 Notice 89-61, as modified by Notice 95-39 and suspended by Notice 2021-66,
and Notice 95-39, are superseded.
.02 The following notices that were issued pursuant to Notice 89-61 are revoked:
Notice 90-47, 1990-2 C.B. 338; Notice 90-48, 1990-2 C.B. 338; Notice 90-50, 1990-2
C.B. 340; Notice 90-51, 1990-2 C.B. 342; Notice 91-31, 1991-2 C.B. 631; Notice 91-32,
1991-2 C.B. 631; Notice 91-33, 1991-2 C.B. 632; Notice 91-34, 1991-2 C.B. 632; Notice
92-11, 1992-1 C.B. 500; Notice 94-7, 1994-1 C.B. 332; Notice 94-8, 1994-1 C.B. 333;
Notice 94-9, 1994-1 C.B. 334; Notice 94-10, 1994-1 C.B. 334; Notice 94-11, 1994-1
C.B. 335; Notice 94-29, 1994-1 C.B. 344; Notice 94-30, 1994-1 C.B. 345; Notice 94-31,
1994-1 C.B. 345; Notice 94-32, 1994-1 C.B. 346; Notice 94-33, 1994-1 C.B. 346; Notice
94-34, 1994-1 C.B. 347; Notice 94-35, 1994-1 C.B. 348; Notice 94-44, 1994-1 C.B. 355;
Notice 94-45, 1994-1 C.B. 355; Notice 94-64, 1994-1 C.B. 374; Notice 94-65, 1994-1
C.B. 375; Notice 94-66, 1994-1 C.B. 375; Notice 94-74, 1994-2 C.B. 554; Notice 94-75,
1994-2 C.B. 554; Notice 94-76, 1994-2 C.B. 555; Notice 94-80, 1994-2 C.B. 557; Notice
94-81, 1994-2 C.B. 557; Notice 94-82, 1994-2 C.B. 558; Notice 94-83, 1994-2 C.B. 558;
Notice 94-92, 1994-2 C.B. 562; Notice 94-98, 1994-2 C.B. 566; Notice 94-99, 1994-2
C.B. 566; Notice 95-12, 1995-1 C.B. 295; Notice 95-27, 1995-1 C.B. 306; Notice 95-29,
1995-1 C.B. 307; Notice 95-38, 1995-1 C.B. 312; Notice 95-40, 1995-1 C.B. 312; Notice
95-43, 1995-2 C.B. 328; Notice 95-44, 1995-2 C.B. 330; Notice 95-58, 1995-2 C.B. 337;
Notice 95-59, 1995-2 C.B. 338; Notice 96-28, 1996-1 C.B. 376; Notice 97-22, 1997-1
C.B. 408; and Notice 2000-54, 2000-2 C.B. 356.

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.03 The substance of the notices revoked by section 12.02 of this revenue procedure
was often published concurrently in the Federal Register in the form of a determination.
The determinations published in the Federal Register may no longer be relied upon.
SECTION 13. PAPERWORK REDUCTION ACT
The collections of information contained in this revenue procedure have been
submitted to the Office of Management and Budget for review under OMB control
number 1545-2304 in accordance with the Paperwork Reduction Act (44 U.S.C.
3507(d)). An agency may not conduct or sponsor, and a person is not required to
respond to, a collection of information unless the collection of information displays a
valid OMB control number. The collections of information in this revenue procedure are
in sections 5 and 6 of this revenue procedure. This information is necessary and will be
used to determine whether a substance should be added to or removed from the list of
taxable substances under § 4672(a). The collections of information are required for an
importer, exporter, or interested person to obtain a determination regarding whether a
substance is subject to tax under § 4671(a).
SECTION 14. DRAFTING INFORMATION
The principal authors of this revenue procedure are Stephanie Bland and Amanda
Dunlap of the Office of Associate Chief Counsel (Passthroughs & Special Industries).
For legal questions regarding this revenue procedure, contact Elisabeth Shellan or
Camille Edwards Bennehoff at (202) 317-6855 (not a toll-free number). For questions
regarding submitting a petition, please contact Alan Anderson at (503) 265-3736 (not a
toll-free number).

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