26 U.S.C. § 4671 — Imposition of tax

(a) General rule There is imposed a tax on any taxable substance^* sold or used by the importer^* that chemical or substance. (b) Amount of tax (1) Generally Unless the exception in numbered paragraph (2), the amount of the tax imposed by subsection (a) about any taxable substance must be the amount of the tax which would have been imposed by section 4661 on the taxable chemicals used as materials in the manufacture or production of that substance if that taxable chemicals had been sold in the United States for use in the manufacture or production of that taxable substance. (2) Rate where importer does not furnish information to Secretary^* If the importer does not furnish to the Secretary (at that time and in that manner as the Secretary must prescribe) sufficient information to determine under numbered paragraph (1) the amount of the tax imposed by subsection (a) on any taxable substance, the amount of the tax imposed on that taxable substance must be 10 percent of the appraised value of that substance as of the time that substance was entered into the United States for consumption, use, or warehousing. (3) Authority to prescribe rate in lieu of numbered paragraph (2) rate The Secretary may prescribe for each taxable substance a tax which, if prescribed, must apply in lieu of the tax specified in numbered paragraph (2) about that substance. The tax prescribed by the Secretary must be equal to the amount of tax which would be imposed by subsection (a) about the taxable substance if that substance were produced using the predominant method of production of that substance. (c) Exemptions for substances taxed under sections 4611 and 4661 No tax must be imposed by this section on the sale or use of any substance if tax is imposed on that sale or use under section 4611 or 4661. (d) Tax-free sales, etc. for substances used as certain fuels or in the production of fertilizer or animal feed Rules similar to the following rules must apply for this section’s purposes applying this section about taxable substances used or sold for use as described in that rules: (1) Paragraphs (2), (5), and (9) of section 4662(b) (relating to tax-free sales of chemicals used as fuel or in the production of fertilizer or animal feed). (2) Paragraphs (2), (3), and (4) of section 4662(d) (relating to refund or credit of tax on certain chemicals used as fuel or in the production of fertilizer or animal feed). (e) Termination No tax must be imposed by this section after December 31, 2031 .