Publication 510 - Excise Taxes For 2005 - Department Of Treasury Page 4
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47Taxable Event
Floor Stocks Tax
•
It is an electronic component whose oper-
ation involves the use of nonmechanical
Tax is imposed on an imported taxable product
Tax is imposed on any ODC held (other than by
amplification or switching devices such as
when the product is first sold or used by its
the manufacturer or importer of the ODC) on
tubes, transistors, and integrated circuits.
importer. The importer is liable for the tax.
January 1 for sale or use in further manufactur-
•
It contains components described in (1),
ing. The person holding title (as determined
Use of imported products. You use an im-
which account for more than 15% of the
under local law) to the ODC is liable for the tax,
ported product if you put it into service in a trade
cost of the product.
whether or not delivery has been made.
or business or for the production of income or
These chemicals are taxable without regard
use it in the making of an article, including incor-
These components do not include passive
to the type or size of storage container in which
poration into the article. The loss, destruction,
electrical devices, such as resistors and capaci-
the ODCs are held. The tax may apply to an
packaging, repackaging, warehousing, or repair
tors. Items such as screws, nuts, bolts, plastic
ODC whether it is in a 14-ounce can or a
of an imported product is not a use of that prod-
parts, and similar specially fabricated parts that
30-pound tank.
uct.
may be used to construct an electronic item are
You are liable for the floor stocks tax if you
Entry as use. The importer may choose to
not themselves included in the listing for elec-
hold any of the following on January 1.
treat the entry of a product into the United States
tronic items.
as the use of the product. Tax is imposed on the
1. At least 400 pounds of ODCs other than
Rules for listing products. Products are
date of entry instead of when the product is sold
halons or methyl chloroform,
listed in the table according to the following
or used. The choice applies to all imported tax-
2. At least 50 pounds of halons, or
rules.
able products that you own and have not used
when you make the choice and all later entries.
3. At least 1,000 pounds of methyl chloro-
1. A product is listed in Part I of the table if it
Make the choice by checking the box in Part II of
form.
is a mixture containing ODCs.
Form 6627. The choice is effective as of the
If you are liable for the tax, prepare an inven-
2. A product is listed in Part II of the table if
beginning of the calendar quarter to which the
tory on January 1 of the taxable ODCs held on
the Commissioner has determined that the
Form 6627 applies. You can revoke this choice
that date for sale or for use in further manufac-
ODCs used as materials in the manufac-
only with IRS consent.
turing. You must pay this floor stocks tax by
ture of the product under the predominant
Sale of article incorporating imported prod-
June 30 of each year. Report the tax on Form
method are used for purposes of refrigera-
uct. The importer may treat the sale of an
6627 and Part II of Form 720 for the second
tion or air conditioning, creating an aerosol
article manufactured or assembled in the United
calendar quarter.
or foam, or manufacturing electronic com-
States as the first sale or use of an imported
For the tax rates, see the Form 6627 instruc-
ponents.
taxable product incorporated in that article if
tions.
both the following apply.
3. A product is listed in Part III of the table if
ODCs not subject to floor stocks tax. The
the Commissioner has determined that the
•
The importer has consistently treated the
floor stocks tax is not imposed on any of the
product meets both the following tests.
sale of similar items as the first sale or use
following ODCs.
of similar taxable imported products.
a. It is not an imported taxable product.
1. ODCs mixed with other ingredients that
•
The importer has not chosen to treat entry
b. It would otherwise be included within a
contribute to achieving the purpose for
into the United States as use of the prod-
list in Part II of the table.
which the mixture will be used, unless the
uct.
mixture contains only ODCs and one or
For example, floppy disk drive units are listed
more stabilizers.
in Part III because they are not imported taxable
Imported Products Table
2. ODCs contained in a manufactured article
products and would have been included in the
in which the ODCs will be used for their
Part II list for electronic items not specifically
The table lists all the products that are subject to
intended purpose without being released
identified, but for their listing in Part III.
the tax on imported taxable products and speci-
from the article.
fies the ODC weight (discussed later) of each
ODC weight. The Table ODC weight of a
product.
3. ODCs that have been reclaimed or re-
product is the weight, determined by the Com-
Each listing in the table identifies a product
cycled.
missioner, of the ODCs used as materials in the
by name and includes only products that are
manufacture of the product under the predomi-
4. ODCs sold in a qualifying sale for:
described by that name. Most listings identify a
nant method of manufacturing. The ODC weight
product by both name and Harmonized Tariff
a. Use as a feedstock,
is listed in Part II in pounds per single unit of
Schedule (HTS) heading. In those cases, a
product unless otherwise specified.
b. Export, or
product is included in that listing only if the prod-
Modifying the table. A manufacturer or im-
uct is described by that name and the rate of
c. Use as a propellant in a metered-dose
porter of a product may request the IRS add a
duty on the product is determined by reference
inhaler.
product and its ODC weight to the table. They
to that HTS heading. A product is included in the
also may request the IRS remove a product from
listing even if it is manufactured with or contains
the table, or change or specify the ODC weight
a different ODC than the one specified in the
of a product. To request a modification, see
table.
Regulations section 52.4682-3(g) for the mailing
Part II of the table lists electronic items that
address and information that must be included
are not included within any other list in the table.
in the request.
An imported product is included in this list only if
the product meets one of the following tests.
Page 4
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial