AdvanSix petitions US to impose Superfund taxes on imports of nylon 6, capro

HOUSTON (ICIS)–AdvanSix has requested that the US impose Superfund taxes on imports of nylon 6 and caprolactam (capro).

On Tuesday, AdvanSix did not immediately respond to a request for comment.

AdvanSix proposed a tax rate of $14.77/ton.

The next step is for the government to gather comments and consider requests for hearings about AdvanSix’s request. The deadline to file comments or request hearings is 22 April.

HOW THE SUPERFUND TAX WORKS
The US introduced the Superfund taxes in mid-2022 on taxable chemicals and imports of taxable substances. The proceeds raised by the taxes will help replenish the government’s Superfund program, which pays for clean-up at waste sites.

The Superfund tax regime divides materials into two groups.

The first group is levied on the sale or use of 42 chemicals by producers or importers. Many of these chemicals are fundamental building blocks such as ethylene, propylene, butadiene (BD), benzene, toluene, xylene and methane.

The second group is restricted to imports and covers substances that are sold or used in the US. This second batch of taxes applies to substances that contain at least 20% of the 42 taxable chemicals. In addition, the taxable rate would depend on the proportion of the 42 taxable chemicals contained in the substance.

The request by AdvanSix falls under this second group. As part of its request AdvanSix filed two petitions asking the US to add nylon 6 and capro to its list of taxable substances.

Thumbnail shows nylon Image by Shutterstock.