PART 52—ENVIRONMENTAL TAXES 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). § 52.0-1 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. [T.D. 8442, 57 FR 48186, Oct. 22, 1992] § 52.4681-1 Taxes imposed with respect to ozone-depleting chemicals. (a) Taxes imposed. (1) Tax on ODCs. (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. (3) Floor stocks tax Imposition of tax. (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 (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. (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 Tax on ODCs. (2) Tax on imported taxable products. (3) Floor stocks tax. (4) Returns, payments, and deposits of tax. (c) Definitions of general application. (1) Ozone-depleting chemical. (2) United States. (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. (4) Entry into United States for consumption, use, or warehousing In general. (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. (iii) Entries described in two or more provisions. (iv) Certain imported products not entered for consumption, use, or warehousing. (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. (6) Sale. (7) Use In general. (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. (iii) Cross-references to exceptions. (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. (9) Post-1990 ODC; post-1989 ODC. (d) Effective date. (1) Post-1989 ODCs that the manufacturer or importer thereof first sells or uses after December 31, 1989, and post-1990 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. [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. (b) Taxable ODCs; taxable event Taxable ODCs In general. (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. (iii) 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 In general General rule. (B) Example. 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. (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 Permitted elections. ( 1 ( 2 (B) In general. (C) Applicability of elections. ( 1 ( 2 (D) Making the election; revocation. (iv) Special rule for exports. (v) Special rule for use as a feedstock. (c) ODCs used as a feedstock Exemption from tax. (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 In general. (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. (3) Definition. (4) Qualifying sale. (d) ODCs used in the manufacture of rigid foam insulation Phase-in of tax In general. (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. (2) Excess payments In general. (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 (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 used in the manufacture of rigid foam insulation. (3) Definition Rigid foam insulation. (ii) Rigid foam In general. (B) Examples of rigid foam products. (4) Use in manufacture. (5) Qualifying sale. (e) Halons; phase-in of tax. (f) Methyl chloroform; reduced rate of tax in 1993. (g) ODCs used as medical sterilants Phase-in of tax. (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 In general. (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. (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. (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. (4) Qualifying sale. (h) ODCs used as propellants in metered-dose inhalers Reduced rate of tax. (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 In general. (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. (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 (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. (4) Qualifying sale. (i) [Reserved] (j) Exports; cross-reference. (k) Recycling. [T.D. 8370, 56 FR 56307, Nov. 4, 1991, as amended by T.D. 8622, 60 FR 52849, Oct. 11, 1995] § 52.4682-2 Qualifying sales. (a) In general Special rules applicable to certain sales. (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. (b) Requirements for qualification Use as a feedstock. (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. (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. (3) Use as medical sterilants. (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. (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 In general. (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. (d) Certificate In general Rules relating to all certificates. (ii) Special rule relating to certificates executed before January 1, 1992. (2) Certificate relating to ODCs used as a feedstock ODCs that will be resold for use by the second purchaser as a feedstock. 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 The undersigned purchaser (“Purchaser”) hereby certifies the following under penalties of perjury: The following percentage of ozone-depleting chemicals purchased from (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) This certificate applies to (check and complete as applicable): ______ All shipments to Purchaser at the following location(s): ______ All shipments to Purchaser under the following Purchaser account number(s): ______ All shipments to Purchaser under the following purchase order(s): ______ One or more shipments to Purchaser identified as follows: 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 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. Signature Printed or typed name of person signing Title of person signing Name of Purchaser Address Taxpayer Identifying Number (ii) ODCs that will be used by the purchaser as a feedstock. 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 The undersigned purchaser (“Purchaser”) hereby certifies the following under penalties of perjury: The following percentage of ozone-depleting chemicals purchased from (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 Kilograms to be transformed 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): ______ All shipments to Purchaser at the following location(s): ______ All shipments to Purchaser under the following Purchaser account number(s): ______ All shipments to Purchaser under the following purchase order(s): ______ One or more shipments to Purchaser identified as follows: 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. Signature Printed or typed name of person signing Title of person signing Name of Purchaser Address Taxpayer Identifying Number (3) Certificate relating to ODCs used in the manufacture of rigid foam insulation ODCs that will be resold to a second purchaser for use by the second purchaser in the manufacture of rigid foam insulation. Certificate of Purchaser of Chemicals That Will Be Resold for Use by the Second 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 Expiration Date (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 (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 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): ______ All shipments to Purchaser at the following location(s): ______ All shipments to Purchaser under the following Purchaser account number(s): ______ All shipments to Purchaser under the following purchase order(s): ______ One or more shipments to Purchaser identified as follows: 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. 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 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. Signature Printed or typed name of person signing Title of person signing Name of Purchaser Address Taxpayer Identifying Number (ii) ODCs that will be used by the purchaser in the manufacture of rigid foam insulation. 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 Expiration Date (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 (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). 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): ______ All shipments to Purchaser at the following location(s): ______ All shipments to Purchaser under the following Purchaser account number(s): ______ All shipments to Purchaser under the following purchase order(s): ______ One or more shipments to Purchaser identified as follows: 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. Signature Printed or typed name of person signing Title of person signing Name of Purchaser Address Taxpayer Identifying Number (4) Certificate relating to ODCs used as medical sterilants ODCs that will be resold for use by the second purchaser as medical sterilants. 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 Expiration Date (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: (Name of seller) (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 CFC-12 __________ This certificate applies to (check and complete as applicable): ______ All shipments to Purchaser at the following location(s): ______ All shipments to Purchaser under the following Purchaser account number(s): ______ All shipments to Purchaser under the following purchase order(s): ______ One or more shipments to Purchaser identified as follows: 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 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. Name of Purchaser Address of Purchaser Taxpayer Identifying Number of Purchaser Title of person signing Printed or typed name of person signing Signature (ii) ODCs that will be used by the purchaser as medical sterilants. 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 Expiration Date (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: (Name of seller) (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 Percentage CFC-12 __________ This certificate applies to (check and complete as applicable): ______ All shipments to Purchaser at the following location(s): ______ All shipments to Purchaser under the following Purchaser account number(s): ______ All shipments to Purchaser under the following purchase order(s): ______ One or more shipments to Purchaser identified as follows: 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. 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. Name of Purchaser Address of Purchaser Taxpayer Identifying Number of Purchaser Title of person signing Printed or typed name of person signing Signature (5) Certificate relating to ODCs used as propellants in metered-dose inhalers ODCs that will be resold for use by the second purchaser as propellants in metered-dose inhalers. 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 The undersigned purchaser (Purchaser) certifies the following under penalties of perjury: The following percentage of ozone-depleting chemicals purchased from: (Name of seller) (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 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): ________ All shipments to Purchaser at the following location(s): ________ All shipments to Purchaser under the following Purchaser account number(s): ________ All shipments to Purchaser under the following purchase order(s): ________ One or more shipments to Purchaser identified as follows: 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 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. Name of Purchaser Address of Purchaser Taxpayer Identifying Number of Purchaser Title of person signing Printed or typed name of person signing Signature (ii) ODCs that will be used by the purchaser as propellants in metered-dose inhalers. 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 The undersigned purchaser (Purchaser) certifies the following under penalties of perjury: The following percentage of ozone-depleting chemicals purchased from: (Name of seller) (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): ________ All shipments to Purchaser at the following location(s): ________ All shipments to Purchaser under the following Purchaser account number(s): ________ All shipments to Purchaser under the following purchase order(s): ________ One or more shipments to Purchaser identified as follows: 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 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. Name of Purchaser Address of Purchaser Taxpayer Identifying Number of Purchaser Title of person signing Printed or typed name of person signing Signature [T.D. 8370, 56 FR 56308, Nov. 4, 1991, as amended by T.D. 8622, 60 FR 52850, Oct. 11, 1995] § 52.4682-3 Imported taxable products. (a) Overview; references to Tables; special rule for 1990 Overview. (2) References to Tables. (i) The term Imported Products Table (ii) The term current Imported Products Table (3) Special rule for 1990. (b) Imported taxable products In general Rule. (A) Is entered into the United States for consumption, use, or warehousing; and (B) Is listed in the current Table. (ii) 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 In general. (A) The product is listed in Part I of the current Table and the adjusted tax with respect to the product is de minimis (B) The product is listed in Part II of the current Table, the adjusted tax with respect to the product is de minimis (ii) De minimis adjusted tax. de minimis adjusted tax (c) Taxable event In general. (2) Election to treat importation as use In general. (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. (iii) Applicability of election. (iv) Making the election. (3) Treating the sale of an article incorporating an imported taxable product as the first sale or use of such product In general. (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. (iii) Establishment of consistent treatment. (iv) Example. 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 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. (d) ODCs used as materials in the manufacture of imported taxable products ODC weight. (2) ODCs used as materials in the manufacture of a product. (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. (4) 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-conditioning 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 In general. (2) Exact method. (3) Table method In general. (ii) Special rules Articles assembled in the United States. (B) Combination method. (C) ODCs used in the manufacture of rigid foam insulation. (4) Value method General rule. (ii) Special rule for mixtures. (5) Adjustment for prior taxes In general. (ii) Taxed component. (iii) Taxed chemical. (6) 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, Example 1, Example 3. B imports and sells mixtures of ethylene oxide and CFC-12. The mixture is 88 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. (f) Imported Products Table In general. (2) Applicability of Table In general. (ii) Treatment of certain products (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 In general. (ii) Electronic items not listed by specific name In general. ( 1 ( 2 1 (B) Electronic component. (C) Certain items not included. (iii) Examples. 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. (4) Rules for listing products. (i) Listing in part I. (A) The ODC weight of the product is not de minimis (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. (iii) Listing in part III. (5) Table ODC weight. (6) Table. Imported Products Table Product name Harmonized tariff schedule heading 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 Harmonized tariff schedule heading ODC ODC weight 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 8415.82.00.50 CFC-12 0.344 Chillers: 8415.82.00.65 Charged with CFC-12 CFC-12 1600. Charged with CFC-114 CFC-114 1250. Charged with R-500 CFC-12 1920. Refrigerator-freezers, household: Not >184 liters 8418.10.00.10 CFC-11 1 >184 liters but not >269 liters 8418.10.00.20 CFC-11 1 >269 liters but not >382 liters 8418.10.00.30 CFC-11 1 >382 liters 8418.10.00.40 CFC-11 1 Refrigerators, household: Not >184 liters 8418.21.00.10 CFC-11 1 >184 liters but not >269 liters 8418.21.00.20 CFC-11 1 >269 liters but not >382 liters 8418.21.00.30 CFC-11 1 >382 liters 8418.21.00.90 CFC-11 1 Freezers, household 8418.30 CFC-11 1 Freezers, household 8418.40 CFC-11 1 Refrigerating display counters not >227 kg 8418.50 CFC-11 1 Icemaking machines 8418.69 Charged with CFC-12 CFC-12 1.4 Charged with R-502 CFC-115 3.39 Drinking water coolers 8418.69 Charged with CFC-12 CFC-12 0.21 Charged with R-500 CFC-12 0.22 Centrifugal chillers, hermetic 8418.69 Charged with CFC-12 CFC-12 1600. Charged with CFC-114 CFC-114 1250. Charged with R-500 CFC-12 1920. Reciprocating chillers 8418.69 Charged with CFC-12 CFC-12 200. Mobile refrigeration systems 8418.99 Containers CFC-12 15. Trucks CFC-12 11. Trailers CFC-12 20. Refrigeration condensing units: not >746W 8418.99.00.05 CFC-12 0.3 >746W but not >2.2KW 8418.99.00.10 CFC-12 1.0 >2.2KW but not >7.5KW 8418.99.00.15 CFC-12 3.0 >7.5KW but not >22.3KW 8418.99.00.20 CFC-12 8.5 >22.3 KW 8418.99.00.25 CFC-12 17.0 Fire extinguishers, charged w/ODCs 8424 Electronic typewriters and word processors 8469 CFC-113 0.2049 Electronic calculators 8470.10 CFC-113 0.0035 Electronic calculators w/printing device 8470.21 CFC-113 0.0057 Electronic calculators 8470.29 CFC-113 0.0035 Account machines 8470.40 CFC-113 0.1913 Cash registers 8470.50 CFC-113 0.1913 Digital automatic data processing machines w/cathode ray tube, not included in subheading 8471.20.00.90 8471.20 CFC-113 0.3663 Laptops, notebooks, and pocket computers 8471.20.00.90 CFC-113 0.03567 Digital processing units w/entry value: Not >$100K 8471.91 CFC-113 0.4980 >$100K 8471.91 CFC-113 27.6667 Combined input/output units (terminals) 8471.92 CFC-113 0.3600 Keyboards 8471.92 CFC-113 0.0742 Display units 8471.92 CFC-113 0.0386 Printer units 8471.92 CFC-113 0.1558 lnput or output units 8471.92 CFC-113 0.1370 Hard magnetic disk drive units not included in subheading 8471.93.10 for a disk of a diameter: Not >9 cm (3 1 2 8471.93 CFC-113 0.2829 >9 cm (3 1 2 1 4 8471.93 CFC-113 1.1671 Nonmagnetic storage units w/ entry value >$1,000 8471.93 CFC-113 2.7758 Magnetic disk drive units for a disk of a diameter over 21 cm (8 1 4 8471.93.10 CFC-113 4.0067 Power supplies 8471.99.30 CFC-113 0.0655 Electronic office machines 8472 CFC-113 0.001 Populated cards for digital processing units in subheading 8471.91 w/value: Not >$100K 8473.30 CFC-113 0.1408 >$100K 8473.30 CFC-113 4.82 Automatic goods-vending machines with refrigerating device 8476.11 CFC-12 0.45 Microwave ovens with electronic controls, with capacity of 8516.50 0.99 cu. ft. or less CFC-113 0.0300 1.0 through 1.3 cu. ft CFC-113 0.0441 1.31 cu. ft. or greater CFC-113 0.0485 Microwave oven combinations with electronic controls 8516.60.40.60 CFC-113 0.0595 Telephone sets w/entry value: Not >$11.00 8517.10 CFC-113 0.0225 >$11.00 8517.10 CFC-113 0.1 Teleprinters and teletypewriters 8517.20 CFC-113 0.1 Switching equipment not included in subheading 8517.30.20 8517.30 CFC-113 0.1267 Private branch exchange switching equipment 8517.30.20 CFC-113 0.0753 Modems 8517.40 CFC-113 0.0225 Intercoms 8517.81 CFC-113 0.0225 Facsimile machines 85l7.82 CFC-113 0.0225 Loudspeakers, microphones, headphones, and electric sound amplifier sets, not included in subheading 8518.30.10 8518 CFC-113 0.0022 Telephone handsets 8518.30.10 CFC-113 0.042 Turntables, record players, cassette players, and other sound reproducing apparatus 8519 CFC-113 0.0022 Magnetic tape recorders and other sound recording apparatus, not included in subheading 8520.20 8520 CFC-113 0.0022 Telephone answering machines 8520.20 CFC-113 0.1 Color video recording/reproducing apparatus 8521.10.00.20 CFC-113 0.0586 Videodisc players 8521.90 CFC-113 0.0106 Cordless handset telephones 8525.20.50 CFC-113 0.1 Cellular communication equipment 8525.20.60 CFC-113 0.4446 TV cameras 8525.30 CFC-113 1.423 Camcorders 8525.30 CFC-113 0.0586 Radio combinations 8527.11 CFC-113 0.0022 Radios 8527.19 CFC-113 0.0014 Motor Vehicle radios with or w/o tape player 8527.21 CFC-113 0.0021 Radio combinations 8527.31 CFC-113 0.0022 Radios 8527.32 CFC-113 0.0014 Tuners w/o speaker 8527.39.00.20 CFC-113 0.0022 Television receivers 8528 CFC-113 0.0386 VCRs 8528.10.40 CFC-113 0.0586 Home satellite earth stations 8528.10.80.55 CFC-113 0.0106 Electronic assemblies for HTS headings 8525, 8527, & 8528 8529.90 CFC-113 0.0816 Indicator panels incorporating liquid crystal devices or light emitting diodes 8531.20 CFC-113 0.0146 Printed circuits 8534 CFC-113 0.001 Computerized numerical controls 8537.10.00.30 CFC-113 0.1306 Diodes, crystals, transistors and other similar discrete semiconductor devices 8541 CFC-113 0.0001 Electronic integrated circuits and microassemblies 8542 CFC-113 0.0002 Signal generators 8543.20 CFC-113 0.6518 Avionics 8543.90.40 CFC-113 0.915 Signal generators subassemblies 8543.90.80 CFC-113 0.1265 Insulated or refrigerated railway freight cars 8606 CFC-11 1 Passenger automobiles 8703 Foams (interior) CFC-11 0.8 Foams (exterior) CFC-11 0.7 With charged a/c CFC-12 2.0 Without charged a/c CFC-12 0.2 Electronics CFC-113 0.5 Light trucks 8704 Foams (interior) CFC-11 0.6 Foams (exterior) CFC-11 0.1 With charged a/c CFC-12 2.0 Without charged a/c CFC-12 0.2 Electronics CFC-113 0.4 Heavy trucks and tractors, GVW 33,001 lbs or more: 2 8704 Foams (interior) CFC-11 0.6 Foams (exterior) CFC-11 0.1 With charged a/c CFC-12 3.0 Without charged a/c CFC-12 0.2 Electronics CFC-113 0.4 Motorcycles with seat foamed with ODCs 8711 CFC-11 0.04 Bicycles with seat foamed with ODCs 8712 CFC-11 0.04 Seats foamed with ODCs 8714.95 CFC-11 0.04 Aircraft 8802 CFC-12 0.25 lb/1000 lbs Operating Empty Weight (OEW). CFC-113 30.0 lbs./1000 lbs.OEW Optical fibers 9001 CFC-12 0.005 lb/thousand feet. Electronic cameras 9006 CFC-113 0.01 Photocopiers 9009 CFC-113 0.0426 Avionics 9014.20 CFC-113 0.915 Electronic drafting machines 9017 CFC-113 0.12 Complete patient monitoring systems 9018.19.80 CFC-12 0.94 Complete patient monitoring systems; subassemblies thereof 9018.19.80.60 CFC-113 1.9320 Physical or chemical analysis instruments 9027 CFC-12 0.0003 Oscilloscopes 9030 CFC-11 0.49 Foam chairs 9401 CFC-11 0.30 Foam sofas 9401 CFC-11 0.75 Foam mattresses 9404.21 CFC-11 1.60 Electronic games and electronic components thereof 9504 CFC-113 Electronic items not otherwise listed in the Table: Included in HTS chapters 84, 85, 90 CFC-113 0.0004 pound/$1.00 of entry value. Not included in HTS chapters 84, 85, 90 3 CFC-113 0.0004 pound/$1.00 of entry value. PART III—Products that are not Imported Taxable Products: Room air conditioners 8415.10.00.60 Dishwashers 8422.11 Clothes washers 8450.11 Clothes dryers 8451.21 Floppy disk drive units 8471.93 Transformers and inductors 8504 Toasters 8516.72 Unrecorded media 8523 Recorded media 8524 Capacitors 8532 Resistors 8533 Switching apparatus 8536 Cathode tubes 8540 1 2 3 (g) Requests for modification of Table In general. (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. (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. (4) 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. (b) Identifying rules ODCs subject to floor stocks tax; ODCs held for sale or for use in further manufacture In general. (ii) Held for sale In general. sale (B) ODCs held by a government. (iii) Held for use in further manufacture. (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 In general. ( 1 ( 2 (B) ODCs used in equipment. (v) Storage containers. (vi) Examples. 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. 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. (2)(i) Mixtures Tax imposed on January 1, 1990. (B) Taxes imposed after 1990 1 In general. ( 2 Exception. stabilizer (C) Examples. 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. (iii) Recycled ODCs. (iv) ODCs held by the manufacturer or importer. (v) ODCs used as a feedstock In general. (B) Post-1989 ODCs sold before January 1, 1990; post-1990 ODCs sold before January 1, 1991. (vi) ODCs to be exported In general. (B) ODCs sold before January 1, 1993. (vii) ODCs used as propellants in metered-dose inhalers; years after 1992 In general. (B) ODCs sold before January 1, 1993. (viii) ODCs used as medical sterilants; 1993. (c) Person liable for tax In general. (2) Special rule. (d) Computation of tax; tentative tax amount In general Generally applicable rules. (ii) Floor stocks tax imposed on post-1989 ODCs on January 1, 1990. (iii) Floor stocks tax imposed on post-1990 ODCs on January 1, 1991. (iv) Other floor stocks taxes In general. ( 1 ( 2 (B) Example. 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 In general. (ii) Post-1989 ODCs sold before January 1, 1990; post-1990 ODCs sold before January 1, 1991. (3) Halons; 1990, 1991, 1992, and 1993. (4) Methyl chloroform; 1993. (e) De minimis exception 1990 and 1992. (2) 1991. (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. (4) 1994. (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. (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. 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, post-1990 ODCs and ODCs that will be used in the manufacture of rigid foam insulation are disregarded in determining whether the de minimis Example 4. (a) The facts are the same as in Example 3, de minimis (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 Halon-1301 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). (f) Inventory In general. (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 work-back 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. de minimis de minimis (3) 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. 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. (g) Time for paying tax. [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. (b) Exemption or partial exemption from tax In general. (2) Tax imposed if exemption amount exceeded Post-1989 ODCs. (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. (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 Post-1989 ODCs. (B) Post-1990 ODCs. (c) Exemption amount Post-1989 ODC exemption amount. (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 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. (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 1986 export percentage. 1986 export percentage. (ii) 1989 export percentage. 1989 export percentage. (d) Procedural requirements relating to tax-free sales for export Qualifying sales In general. (A) The seller is the manufacturer or importer of the ODCs and the purchaser 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 ( 2 (ii) Qualifying resale. (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 ( 2 (iii) Special rule relating to sales made before July 1, 1993. (iv) Registration. (2) Good faith reliance. (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 In general. (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 ODCs sold for export by the purchaser. 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.) Effective Date Expiration Date (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 __________. Purchaser's registration has not been suspended or revoked by the Internal Revenue Service. The following percentage of ozone-depleting chemicals purchased from: (Name of seller) (Address of seller) (Taxpayer identifying number of seller) are purchased for export by Purchaser. Product Percentage CFC-11 __________ CFC-12 __________ CFC-113 __________ CFC-114 __________ CFC-115 __________ Halon-1211 __________ Halon-1301 __________ Halon-2402 __________ Carbon tetrachloride __________ Methyl chloroform __________ Other (specify) ______________ __________ This certificate applies to (check and complete as applicable): ______ All shipments to Purchaser at the following location(s): ______ All shipments to Purchaser under the following Purchaser account number(s): ______ All shipments to Purchaser under the following purchase order(s): ______ One or more shipments to Purchaser identified as follows: 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 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 registration has been revoked or suspended. 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. Name of Purchaser Address of Purchaser Taxpayer Identifying Number of Purchaser Title of person signing Printed or typed name of person signing Signature (B) ODCs sold by the purchaser for resale for export by the second purchaser. 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.) Effective Date Expiration Date (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 __________. Purchaser's registration has not been suspended or revoked by the Internal Revenue Service. The following percentage of ozone-depleting chemicals purchased from: (Name of seller) (Address of seller) (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 __________ CFC-114 __________ CFC-115 __________ Halon-1211 __________ Halon-1301 __________ Halon-2402 __________ Carbon tetrachloride __________ Methyl chloroform __________ Other (specify) ______________ __________ This certificate applies to (check and complete as applicable): ______ All shipments to Purchaser at the following location(s): ______ All shipments to Purchaser under the following Purchaser account number(s): ______ All shipments to Purchaser under the following purchase order(s): ______ One or more shipments to Purchaser identified as follows: 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. Name of Purchaser Address of Purchaser Taxpayer Identifying Number of Purchaser Title of person signing Printed or typed name of person signing Signature (4) Documentation of export After December 31, 1992. (ii) Before January 1, 1993. (e) Purchaser liable for tax Purchaser in qualifying sale. (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. (f) Credit or refund In general. (2) Limitation. (i) In the case of tax paid on post-1989 ODCs sold during a calendar year, to the amount (if any) by which the post-1989 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 post-1990 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. (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. (g) Examples. Example 1. (i) Facts. (ii) Components of limit on tax benefit. (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. Example 1 (iv) Application of limit on tax benefit. Example 2. (i) Facts. (ii) Limit on tax benefit. (iii) Application of limit on tax benefit. Example 3. (i) Facts. (ii) Limit on tax benefit. (iii) Application of limit on tax benefit. (h) Effective date. [T.D. 8622, 60 FR 52853, Oct. 11, 1995]