Form 6627 (Rev. 1-2020)
Page 3
User or exporter of crude oil. Tax is imposed on domestic
crude oil used or exported before it is received at a U.S.
refinery. The user or exporter is liable for the tax. Crude oil
used for extracting oil or natural gas on the premises where
the crude oil is produced is not taxable.
Imported petroleum products. Tax is imposed on imported
petroleum products when they are entered into the United
States for use, consumption, or warehousing. Petroleum
products include crude oil, refined and residual oil, and other
liquid hydrocarbon refinery products. The person entering
the petroleum product into the country is liable for the tax.
The tax on petroleum is imposed only once on any
imported petroleum product. The enterer must provide
documentation of the tax imposed on imported crude oil to
the refinery operator if requested by the refinery operator.
Fractional barrels. Fractional barrels are taxed at a
proportionate rate using the fraction produced by the
number of gallons in the barrel over 42 gallons. Multiply the
resulting fraction by the $.09 per barrel tax.
Part II. Tax on Ozone-Depleting Chemicals
(ODCs), IRS No. 98
The following ODCs are taxable.
Post-1989 ODCs
Tax Per
Pound in 2020
CFC-11 . . . . . . . . . . . . . . . . $16.60
CFC-12 . . . . . . . . . . . . . . . . 16.60
CFC-113 . . . . . . . . . . . . . . . . 13.28
CFC-114 . . . . . . . . . . . . . . . . 16.60
CFC-115 . . . . . . . . . . . . . . . . 9.96
Halon-1211 . . . . . . . . . . . . . . . 49.80
Halon-1301 . . . . . . . . . . . . . . . 166.00
Halon-2402 . . . . . . . . . . . . . . . 99.60
Post-1990 ODCs
Tax Per
Pound in 2020
Carbon tetrachloride . . . . . . . . . . . . 18.26
Methyl chloroform . . . . . . . . . . . . . 1.66
CFC-13, CFC-111, CFC-112, and CFC-211 through
CFC-217 . . . . . . . . . . . . . . . . 16.60
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CAUTION
The tax per pound rates above are figured using
the ozone-depletion factor. Do not multiply the tax
per pound by the ozone-depletion factor.
Mixture elections. Generally, the creation of a mixture
containing one or more ODCs by the manufacturer or
importer of an ODC is treated as the use of the ODC in the
mixture. However, the manufacturer or importer may elect to
treat the sale or use of the mixture as the first sale or use of
the ODC in the mixture.
Post-1989 ODCs (the 1990 election). If this election is
made, the tax on the post-1989 ODCs (listed earlier)
contained in the mixture is imposed on the date of sale or
use of the mixture. To make the election, check the first box
in Part II, under Elections. This election may be revoked only
with the consent of the IRS.
Post-1990 ODCs (the 1991 election). If this election is
made, the tax on the post-1990 ODCs (listed earlier)
contained in the mixture is imposed on the date of sale or
use of the mixture. To make the election, check the second
box in Part II, under Elections. This election may be revoked
only with the consent of the IRS.
Column (c). Enter the tax per pound using the chart earlier.
Part III. ODC Tax on Imported Products,
IRS No. 19
An imported taxable product is any product entered into the
United States for consumption, use, or warehousing if any
ODC was used as material in the manufacture or production
of the product. The product must also be listed in the
imported products table issued by the IRS. See Regulations
section 52.4682-3(f)(6). The tax is based on the weight of
ODCs used in the manufacture of the product. If the weight
cannot be determined under the exact method or table
method (see below), the tax is 1% of the entry value of the
product (value method).
Importer election. Generally, an imported taxable product is
taxed when it is sold or used by the importer. However, an
importer may elect to treat the entry of products into the
United States as the use of such products. This election
applies to all products held by the importer when the election
becomes effective. It also applies to all products the importer
enters into the United States after the election becomes
effective. If an election applies to an imported taxable
product, tax is imposed on the product on the date of entry.
To make the election, check the box in Part III, under Election.
This election may be revoked only with the consent of the IRS.
Figure the ODC weight of the product as follows.
Exact method. If you determine the weight of each ODC
used as a material in the manufacture of the product and you
can support this determination, the ODC weight is the weight
you determine.
Table method. If you don’t use the exact method and the
ODC weight is listed in the imported products table, use the
ODC weight listed to figure the tax. See Pub. 510 for more
information.
Figure the tax for Part III.
Column (a). Enter the imported product and the
applicable ODC. Use additional lines if there is more than
one ODC.
Column (b). Enter the number of taxable products
imported.
Column (c). Enter the ODC weight of the product in
pounds. If you are using the value method, don’t complete
this column.
Column (d). Enter the tax per pound from the chart in the
instructions for Part II, earlier. If you are using the value
method, enter 1% (0.01).
Column (e). If you are using the value method to figure the
tax, enter the entry value of the total number of imported
products.
Column (f). Figure the tax due by multiplying the number
of products in column (b) by the ODC weight in column (c) by
the tax per pound in column (d). If you are using the value
method, multiply the 1% (0.01) rate in column (d) by the
entry value in column (e).
