OVERVIEW OF FINAL SECTION 4682 REGULATIONS

     These final regulations provide guidance on exports of
ozone-depleting chemicals (ODCs), taxes imposed on ODCs used as
medical sterilants or propellants in metered-dose inhalers, and
floor stocks taxes on ODCs.  The regulations affect persons that
manufacture, import, export, sell, or use ODCs, and are effective
on January 1, 1993, the date set forth in the proposed
regulations.
     Under the law, tax is imposed on the sale or use of ODCs by
the manufacturer or importer of the ODCs.  In addition, persons
other than manufacturers or importers are liable for tax if they
hold ODCs for sale, or for use in manufacturing articles for
sale, on January 1 of each year (the floor stocks tax).  A
limited exemption from tax for ODCs that are exported is
provided.
     Under the regulations, tax is not imposed with respect to
ODCs that are sold for export, to the extent that the tax
benefits from the sales for export do not exceed certain limits,
and the procedures specified in the regulations are followed.  If
the tax benefits that the manufacturer or importer must take into
account for the calendar year exceed the relevant exemption
amount, tax is imposed on the sale, even if the ODCs are sold for
export.  The required procedures include registration of persons
selling and purchasing ODCs for export, and documentation of
actual export of the ODCs.  If a person purchases ODCs tax free
for export, and does not export the ODCs or sell them to a second
purchaser for export, the person is liable for tax when the ODCs
are sold or used.
     The regulations also provide procedures for manufacturers or
importers of ODCs to claim a credit or refund of tax paid with
respect to ODCs that are exported.
     In 1992, the law was amended to provide a reduced rate of
tax for ODCs used as medical sterilants or propellants in
metered-dose inhalers, and to extend the floor stocks tax to
calendar years after 1994.  These final regulations modify and
extend existing rules to apply to ODCs used as medical sterilants
or propellants in metered-dose inhalers.
     The full text of the regulations is published in the Federal
Register for October 11, 1995.