Rev. Proc. 2022-26 (2022-29 I.R.B.

90), as modified by Rev. Proc. 202320 (2023-15 I.R.B. 636), provides the exclusive process by which an importer, exporter, or interested person may request a determination that a particular substance be added to or removed from the List.

Section 4671(b)(3) authorizes the Secretary to prescribe a tax rate for taxable substances in lieu of the tax rate specified in section 4671(b)(2). The tax rate prescribed by the Secretary for a substance added to the List is calculated by multiplying the conversion factor for each taxable chemical used in the production of the substance by the corresponding tax rate for such taxable chemical under section 4661(b). Conversion factors are determined on the basis of the predominant method of production of the substance. See sections 8 and 10.04(8) of Rev. Proc. 2022-26. Importers are not required to use the prescribed tax rate for a taxable substance and may calculate their own rate under section 4671(b)(1).

Request to Add Polyoxymethylene to the List

Celanese Ltd. (Petitioner) is an exporter of polyoxymethylene. Petitioner submitted a petition to the IRS in accordance with Rev. Proc. 2022-26 requesting a determination under section 4672(a) (2) to add polyoxymethylene to the List. According to the petition, the taxable chemical methane constitutes 50.08 percent, by weight, of the materials used to produce polyoxymethylene.

Explanation of Determination

The Secretary’s determination with regard to polyoxymethylene is in paragraph (a) of the “Modification to the List of Taxable Substances” section of this notice. The Secretary made the determina

Bulletin No. 2024–26 1789 June 24, 2024

the petition and requesting comments was published in the Federal Register (87 FR 79938) on December 28, 2022. The Treasury Department and the IRS received no written comments in response to the notice of filing. A public hearing was neither requested nor held.

The Secretary followed the process in section 4672(a)(2)(B) in making this determination. A review of the stoichiometric material consumption equation and other information in the petition shows that methane, a taxable chemical, constitutes more than 20 percent by weight of the materials used in the production of polyoxymethylene, based on the predominant method of production. Therefore, the test in section 4672(a)(2) (B) is satisfied.

(4) Date of determination: May 30, 2024. Pursuant to section 10.02 of Rev. Proc. 2022-26, Petitioner and the IRS agreed to extend the 180-day determination period.

(5) Effective dates for addition of poly- oxymethylene to the List :

(i) Effective date for purposes of the section 4671 tax (see section 11.01 of Rev. Proc. 2022-26) : October 1, 2024.

(ii) Effective date for purposes of refund claims under section 4662(e) (see sections 11.02 and 11.03 of Rev. Proc. 2022-26, as modified by section 3 of Rev. Proc. 2023- 20) : July 1, 2022. (6) Tax rate prescribed by the Secre- tary : $3.65 per ton. The conversion factor for the methane used in the production of polyoxymethylene is 0.53. The tax rate is calculated by multiplying the conversion factor by the tax rate for methane (0.53 x $6.88 = $3.65).

(b) Classification numbers . (1) The Secretary has no basis to object to the following classification numbers proposed by Petitioner :

(i) HTSUS number : 3907.10.0000 (ii) Schedule B number : 3907.10.0000 (iii) CAS number : 9002-81-7 (2) The Secretary is unable to confirm the following classification numbers pro- posed by Petitioner : Not applicable.

Krishna P. Vallabhaneni, Tax Legislative Counsel.

2023 Section 45K(d)(2)(C) Reference Price