Page:United States Statutes at Large Volume 100 Part 2.djvu/660

 100 STAT. 1762

PUBLIC LAW 99-499—OCT. 17, 1986

"For periods before 1992, the item relating to xylene in the preceding table shall be applied by substituting '10.13' for '4.87'." 26 USC 4662.

(b) EXEMPTION FOR EXPORTS OF TAXABLE CHEMICALS.—

(1) Section 4662 of such Code (relating to definitions and special rules) is amended by redesignating subsection (e) as subsection (f) and by inserting after subsection (d) the following new subsection: "(e) EXEMPTION FOR EXPORTS OF TAXABLE CHEMICALS.— "(1) TAX-FREE SALES.—

"(A) IN GENERAL.—No tax shall be imposed under section 4661 on the sale by the manufacturer or producer of any taxable chemical for export, or for resale by the purchaser to a second purchaser for export. '•

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"(B) PROOF OF EXPORT REQUIRED.—Rules similar to

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the

rules of section 4221(b) shall apply for purposes of subparagraph (A). "(2) CREDIT OR REFUND WHERE TAX PAID.—

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Post, p. 1764.

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d

"(A) IN GENERAL.—Except as provided in subparagraph (B), i f "(i) tax under section 4661 was paid with respect to any taxable chemical, and "(ii)(I) such chemical was exported by any person, or "(II) such chemical was used as a material in the manufacture or production of a substance which was exported by any person and which, at the time of export, was a taxable substance (as defined in section 4672(a)), credit or refund (without interest) of such tax shall be allowed or made to the person who paid such tax. "(B) CONDITION TO ALLOWANCE.—No credit or refund shall be allowed or made under subparagraph (A) unless the person who paid the tax establishes that he— "(i) has repaid or agreed to repay the amount of the tax to the person who exported the taxable chemical or taxable substance (as so defined), or "(ii) has obtained the written consent of such exporter to the allowance of the credit or the making of the refund. "(3) REGULATIONS.—The Secretary shall prescribe such regulations as may be necessary to carry out the purposes of this • subsection." (2) Paragraph (1) of section 4662(d) of such Code (relating to ' ' refund or credit for certain uses) is amended— (A) by striking out "the sale of which by such person would be taxable under such section" and inserting in lieu thereof "which is a taxable chemical", and (B) by striking out "imposed by such section on the other

i, substance manufactured or produced" and inserting in lieu thereof "imposed by such section on the other substance ' ' manufactured or produced (or which would have been imposed by such section on such othei- substance but for subsection (b) or (e) of this section)". (c) SPECIAL RULE FOR XYLENE.—Subsection (b) of section 4662 of such Code (relating to exceptions; other special rules) is amended by adding after paragraph (6) the following new paragraph: "(7) SPECIAL RULE FOR XYLENE.—Except in the case of any substance imported into the United States or exported from the

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