Laws: Cases and Codes : U.S. Code : Title 26 : Section 4682


   
U.S. Code as of: 01/19/04
Section 4682. Definitions and special rules

    (a) Ozone-depleting chemical
      For purposes of this subchapter - 
      (1) In general
        The term "ozone-depleting chemical" means any substance - 
          (A) which, at the time of the sale or use by the
        manufacturer, producer, or importer, is listed as an
        ozone-depleting chemical in the table contained in paragraph
        (2), and
          (B) which is manufactured or produced in the United States or
        entered into the United States for consumption, use, or
        warehousing.
      (2) Ozone-depleting chemicals


            Common name:                   Chemical nomenclature:       
    --------------------------------------------------------------------
      CFC-11                        trichlorofluoromethane              
      CFC-12                        dichlorodifluoromethane             
      CFC-113                       trichlorotrifluoroethane            
      CFC-114                       1,2-dichloro-1,1,2,2-tetra-         
                                     fluoroethane                       
      CFC-115                       chloropentafluoroethane             
      Halon-1211                    bromochlorodifluoro-   methane      
      Halon-1301                    bromotrifluoromethane               
      Halon-2402                    dibromotetrafluoroethane            
      Carbon tetrachloride          Tetrachloromethane                  
      Methyl chloroform             1,1,1-trichloroethane               
      CFC-13                        CF3Cl                               
      CFC-111                       C2FCl5                              
      CFC-112                       C2F2Cl4                             
      CFC-211                       C3FCl7                              
      CFC-212                       C3F2Cl6                             
      CFC-213                       C3F3Cl5                             
      CFC-214                       C3F4Cl4                             
      CFC-215                       C3F5Cl3                             
      CFC-216                       C3F6Cl2                             
      CFC-217                       C3F7Cl.                             
    --------------------------------------------------------------------

    (b) Ozone-depletion factor
      For purposes of this subchapter, the term "ozone-depletion
    factor" means, with respect to an ozone-depleting chemical, the
    factor assigned to such chemical under the following table:

    Ozone-depleting chemical:                         Ozone-depletion
                                                         factor:        
        CFC-11                                                  1.0  
        CFC-12                                                  1.0  
        CFC-113                                                 0.8  
        CFC-114                                                 1.0  
        CFC-115                                                 0.6  
        Halon-1211                                              3.0  
        Halon-1301                                             10.0  
        Halon-2402                                              6.0  
        Carbon tetrachloride                                    1.1  
        Methyl chloroform                                       0.1  
        CFC-13.                                                 1.0  
        CFC-111                                                 1.0  
        CFC-112                                                 1.0  
        CFC-211                                                 1.0  
        CFC-212                                                 1.0  
        CFC-213                                                 1.0  
        CFC-214                                                 1.0  
        CFC-215                                                 1.0  
        CFC-216                                                 1.0  
        CFC-217                                                  1.0.
    (c) Imported taxable product
      For purposes of this subchapter - 
      (1) In general
        The term "imported taxable product" means any product (other
      than an ozone-depleting chemical) entered into the United States
      for consumption, use, or warehousing if any ozone-depleting
      chemical was used as material in the manufacture or production of
      such product.
      (2) De minimis exception
        The term "imported taxable product" shall not include any
      product specified in regulations prescribed by the Secretary as
      using a de minimis amount of ozone-depleting chemicals as
      materials in the manufacture or production thereof. The preceding
      sentence shall not apply to any product in which any
      ozone-depleting chemical (other than methyl chloroform) is used
      for purposes of refrigeration or air conditioning, creating an
      aerosol or foam, or manufacturing electronic components.
    (d) Exceptions
      (1) Recycling
        No tax shall be imposed by section 4681 on any ozone-depleting
      chemical which is diverted or recovered in the United States as
      part of a recycling process (and not as part of the original
      manufacturing or production process), or on any recycled
      Halon-1301 or recycled Halon-2402 imported from any country which
      is a signatory to the Montreal Protocol on Substances that
      Deplete the Ozone Layer.
      (2) Use in further manufacture
        (A) In general
          No tax shall be imposed by section 4681 - 
            (i) on the use of any ozone-depleting chemical in the
          manufacture or production of any other chemical if the
          ozone-depleting chemical is entirely consumed in such use,
            (ii) on the sale by the manufacturer, producer, or importer
          of any ozone-depleting chemical - 
              (I) for a use by the purchaser which meets the
            requirements of clause (i), or
              (II) for resale by the purchaser to a second purchaser
            for a use by the second purchaser which meets the
            requirements of clause (i).

        Clause (ii) shall apply only if the manufacturer, producer, and
        importer, and the 1st and 2d purchasers (if any), meet such
        registration requirements as may be prescribed by the
        Secretary.
        (B) Credit or refund
          Under regulations prescribed by the Secretary, if - 
            (i) a tax under this subchapter was paid with respect to
          any ozone-depleting chemical, and
            (ii) such chemical was used (and entirely consumed) by any
          person in the manufacture or production of any other
          chemical,

        then an amount equal to the tax so paid shall be allowed as a
        credit or refund (without interest) to such person in the same
        manner as if it were an overpayment of tax imposed by section
        4681.
      (3) Exports
        (A) In general
          Except as provided in subparagraph (B), rules similar to the
        rules of section 4662(e) (other than section
        4662(e)(2)(A)(ii)(II)) shall apply for purposes of this
        subchapter.
        (B) Limit on benefit
          (i) In general
            The aggregate tax benefit allowable under subparagraph (A)
          with respect to ozone-depleting chemicals manufactured,
          produced, or imported by any person during a calendar year
          shall not exceed the sum of - 
              (I) the amount equal to the 1986 export percentage of the
            aggregate tax which would (but for this subsection and
            subsection (g)) be imposed by this subchapter with respect
            to the maximum quantity of ozone-depleting chemicals
            permitted to be manufactured or produced by such person
            during such calendar year under regulations prescribed by
            the Environmental Protection Agency (other than chemicals
            with respect to which subclause (II) applies),
              (II) the aggregate tax which would (but for this
            subsection and subsection (g)) be imposed by this
            subchapter with respect to any additional production
            allowance granted to such person with respect to
            ozone-depleting chemicals manufactured or produced by such
            person during such calendar year by the Environmental
            Protection Agency under 40 CFR Part 82 (as in effect on
            September 14, 1989), and
              (III) the aggregate tax which was imposed by this
            subchapter with respect to ozone-depleting chemicals
            imported by such person during the calendar year.
          (ii) 1986 export percentage
            A person's 1986 export percentage is the percentage equal
          to the ozone-depletion factor adjusted pounds of
          ozone-depleting chemicals manufactured or produced by such
          person during 1986 which were exported during 1986, divided
          by the ozone-depletion factor adjusted pounds of all
          ozone-depleting chemicals manufactured or produced by such
          person during 1986. The percentage determined under the
          preceding sentence shall be computed by taking into account
          the sum of such person's direct 1986 exports (as determined
          by the Environmental Protection Agency) and such person's
          indirect 1986 exports (as allocated to such person by such
          Agency in determining such person's consumption and
          production rights for ozone-depleting chemicals).
        (C) Separate application of limit for newly listed chemicals
          (i) In general
            Subparagraph (B) shall be applied separately with respect
          to newly listed chemicals and other chemicals.
          (ii) Application to newly listed chemicals
            In applying subparagraph (B) to newly listed chemicals - 
              (I) subparagraph (B) shall be applied by substituting
            "1989" for "1986" each place it appears, and
              (II) clause (i)(II) thereof shall be applied by
            substituting for the regulations referred to therein any
            regulations (whether or not prescribed by the Secretary)
            which the Secretary determines are comparable to the
            regulations referred to in such clause with respect to
            newly listed chemicals.
          (iii) Newly listed chemical
            For purposes of this subparagraph, the term "newly listed
          chemical" means any substance which appears in the table
          contained in subsection (a)(2) below Halon-2402.
    (e) Other definitions
      For purposes of this subchapter - 
      (1) Importer
        The term "importer" means the person entering the article for
      consumption, use, or warehousing.
      (2) United States
        The term "United States" has the meaning given such term by
      section 4612(a)(4).
    (f) Special rules
      (1) Fractional parts of a pound
        In the case of a fraction of a pound, the tax imposed by this
      subchapter shall be the same fraction of the amount of such tax
      imposed on a whole pound.
      (2) Disposition of revenues from Puerto Rico and the Virgin
        Islands
        The provisions of subsections (a)(3) and (b)(3) of section 7652
      shall not apply to any tax imposed by this subchapter.
    (g) Chemicals used as propellants in metered-dose inhalers
      (1) Exemption from tax
        (A) In general
          No tax shall be imposed by section 4681 on - 
            (i) any use of any substance as a propellant in
          metered-dose inhalers, or
            (ii) any qualified sale by the manufacturer, producer, or
          importer of any substance.
        (B) Qualified sale
          For purposes of subparagraph (A), the term "qualified sale"
        means any sale by the manufacturer, producer, or importer of
        any substance - 
            (i) for use by the purchaser as a propellant in metered
          dose inhalers, or
            (ii) for resale by the purchaser to a 2d purchaser for such
          use by the 2d purchaser.

        The preceding sentence shall apply only if the manufacturer,
        producer, and importer, and the 1st and 2d purchasers (if any)
        meet such registration requirements as may be prescribed by the
        Secretary.
      (2) Overpayments
        If any substance on which tax was paid under this subchapter is
      used by any person as a propellant in metered-dose inhalers,
      credit or refund without interest shall be allowed to such person
      in an amount equal to the tax so paid. Amounts payable under the
      preceding sentence with respect to uses during the taxable year
      shall be treated as described in section 34(a) for such year
      unless claim thereof has been timely filed under this paragraph.
    (h) Imposition of floor stocks taxes
      (1) January 1, 1990, tax
        On any ozone-depleting chemical which on January 1, 1990, is
      held by any person (other than the manufacturer, producer, or
      importer thereof) for sale or for use in further manufacture,
      there is hereby imposed a floor stocks tax in an amount equal to
      the tax which would be imposed by section 4681 on such chemical
      if the sale of such chemical by the manufacturer, producer, or
      importer thereof had occurred during 1990.
      (2) Other tax-increase dates
        (A) In general
          If, on any tax-increase date, any ozone-depleting chemical is
        held by any person (other than the manufacturer, producer, or
        importer thereof) for sale or for use in further manufacture,
        there is hereby imposed a floor stocks tax.
        (B) Amount of tax
          The amount of the tax imposed by subparagraph (A) shall be
        the excess (if any) of - 
            (i) the tax which would be imposed under section 4681 on
          such substance if the sale of such chemical by the
          manufacturer, producer, or importer thereof had occurred on
          the tax-increase date, over
            (ii) the prior tax (if any) imposed by this subchapter on
          such substance.
        (C) Tax-increase date
          For purposes of this paragraph, the term "tax-increase date"
        means January 1 of any calendar year after 1991.
      (3) Due date
        The taxes imposed by this subsection on January 1 of any
      calendar year shall be paid on or before June 30 of such year.
      (4) Application of other laws
        All other provisions of law, including penalties, applicable
      with respect to the taxes imposed by section 4681 shall apply to
      the floor stocks taxes imposed by this subsection.



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