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Substitute Product Codes

The June 6, 2011 release of EDI version 2.2.4 restricts book adjustment receipts for certain product codes. Terminal operators with product reclassifications or conversions into these restricted product codes have received error messages. Our EDI Help Desk has instructed terminal operators to report restricted transactions as gains and losses until a solution is implemented.

Software programming to remove the current restriction is under development. Until this revision is complete, we have established substitute product codes to permit product reclassifications and conversions. Only terminal operators reporting transactions from a restricted product code may use the substitute equivalent.

Terminal operators are not required to use substitute codes and may continue to use gains and losses or some other reasonable reporting method.

If you choose to use substitute codes, EDI testing is not necessary. Amended returns are not required for any prior reports in which you reported restricted codes as gains and losses, or used some other, merit based, alternative method. Report all of the product transactions under the new code and make book adjustments to transfer any inventory from the restricted product code.

In most cases, we have replaced the first digit of the restricted product codes with the letter "S," indicating that it is a substitute for the original. The substitute product codes are effective as of October 15, 2011 and may be used on reports due after May 31, 2011. Substitute product codes will remain available until a software revision is implemented.

Below you will find the substitute product code table and illustrated examples.

If you have any questions regarding EDI submissions please:

  • Send an e-mail to exstars@irs.gov
  • Contact the ExSTARS EDI Help Desk at 216-898-6432
ExSTARS Product Codes
Description Restricted Product Codes  Substitute Product Codes 
Ethanol E00 S00
Crude (any) 001 S01
TAME 121 S21
Raffinates 223 S23
Aviation Gasoline 125 S25
Liquified Natural Gas 225 S26
Benzene 248 S48
Condensate (not Crude) 049 S49
ETBE 249 S50
Ethane 052 S52
Propane 054 S54
Methane 265 S65
Propylene 075 S75
Xylene 076 S76
Excluded Liquid (Mineral Oil) 077 S77
Marine Diesel Oil 279 S79
Marine Gas Oil 280 S80
Mineral Oils 281 S81
Asphalt 188 S88
Additive - Miscellaneous 090 S90
Undefined (Other) Product 092 S92
MTBE 093 S93
Ethylene 196 S96
Butylene 198 S98
Toluene 199 S99

Substitute Product Code Examples

Book adjustments (BA) are product reclassifications or conversions.  ExSTARS currently restricts certain product codes (PC) from book adjustments. Example transaction types include the following:

  • Denaturing grain alcohol with gasoline to create ethanol (PC - E00)
  • Inadvertent contamination of products
  • A product “downgrade” e.g., dyed diesel fuel #4 mixed with bunker oil (marine diesel oil).

Book adjustments may be reported as itemized transactions or in summary. See Publication 3536 for specific reporting instruction.

When product is blended or re-classified, there will be, at a minimum, two transactions reported.  The total BA disbursement gallons will equal total BA receipt gallons, with each side of the transaction reflecting distinct product codes.

Example 1

A terminal blends 100,000 gallons of grain alcohol (PC-E00) with 2,000 gallons of gasoline (PC-065) for denaturing purposes. PC-E00 is currently restricted for BA receipts therefore the substitute PC-S00 is used to complete the transaction. The terminal reports BA disbursements (15B) of 100,000 gallons from PC-E00 and 2,000 gallons from PC-065 to reflect a reduction in inventory. A corresponding BA receipt (15A) of 102,000 gallons into PC-S00 is made to increase the denatured ethanol inventory. The book adjustments are illustrated below.

 

TFS~T3~15B~PG~065~94~BA\ «Terminal disbursement book adj. for product code 065»
REF~SU~IRS\  
REF~55~1000000001\  
N1~OT~~TC~T96GR6292\ «TCN where reclassification happened»
FGS~D~BM~51564\  
REF~55~2000000001\  
DTM~095~20120628\ «Date reclassification took place»
TIA~5005~~~2000~GA\ «Net amount of gallons for transaction»
TIA~5006~~~2000~GA\ «Gross amount of gallons for transaction»
   
TFS~T3~15B~PG~E00~94~BA\ «Terminal disbursement book adj. for product code E00»
REF~SU~IRS\  
REF~55~1000000002\  
N1~OT~~TC~T96GR6292\ «TCN where reclassification happened»
N1~ON~NMCA~24~123456789\ «PH name control and EIN of E00»
FGS~D~BM~51564\  
REF~55~2000000002\  
DTM~095~20120628\ «Date reclassification took place»
TIA~5005~~~100000~GA\ «Net amount of gallons for transaction»
TIA~5006~~~100000~GA\ «Gross amount of gallons for transaction»
   
TFS~T3~15A~PG~S00~94~BA\ «Terminal receipt book adj. for substitute product code S00»
REF~SU~IRS\  
REF~55~1000000003\  
N1~DT~~TC~T96GR6292\ «TCN where reclassification happened»
N1~ON~NMCA~24~123456789\ «PH name control and EIN of S00»
FGS~D~BM~51564\  
REF~55~2000000003\  
DTM~095~20120628\ «Date reclassification took place»
TIA~5005~~~102000~GA\ «Net amount of gallons for transaction»
TIA~5006~~~102000~GA\ «Gross amount of gallons for transaction»

In this example, the total inventory decrease from product codes E00 and 065 (100,000 + 2,000) equal the total inventory increase in substitute PC-S00 (102,000). The denatured ethanol (PC-S00) can be disbursed for further blending with gasoline (PC-065) to create other ethanol mixtures. Note: If using the substitute PC-S00 the terminal should report all receipts of denatured ethanol into PC-S00.

Example 2

A terminal inadvertently combines 6,200 gallons of asphalt (PC-188) with 800 gallons of soy oil (PC-285), rendering the blended product unusable. To discard this inadvertent mix, undefined (other) product (PC- 092) would normally be utilized however PC-092 does not currently permit BA receipts. The terminal would report this transaction under substitute PC-S92. BA disbursements (15B) of 6,200 gallons of asphalt (PC-188) and 800 gallons of soy oil (PC-285) decreases the respective inventories. A corresponding BA receipt of 7,000 gallons increases the PC-S92 inventory.  The book adjustments are illustrated below.

 

TFS~T3~15B~PG~188~94~BA\ «Terminal disbursement book adj. for product code 188»
REF~SU~IRS\  
REF~55~1000000001\  
N1~OT~~TC~T96GR6292\ «TCN where reclassification happened»
FGS~D~BM~51567\  
REF~55~2000000001\  
DTM~095~20120628\ «Date reclassification took place»
TIA~5005~~~7200~GA\ «Net amount of gallons for transaction»
TIA~5006~~~7200~GA\ «Gross amount of gallons for transaction»
   
TFS~T3~15B~PG~285~94~BA\ «Terminal disbursement book adj. for product code 285»
REF~SU~IRS\  
REF~55~1000000002\  
N1~OT~~TC~T96GR6292\ «TCN where reclassification happened»
FGS~D~BM~51567\  
REF~55~2000000002\  
DTM~095~20120628\ «Date reclassification took place»
TIA~5005~~~800~GA\ «Net amount of gallons for transaction»
TIA~5006~~~800~GA\ «Gross amount of gallons for transaction»
   
TFS~T3~15A~PG~S92~94~BA\ «Terminal receipt book adj. for substitute product code S92»
REF~SU~IRS\  
REF~55~1000000003\  
N1~DT~~TC~T96GR6292\ «TCN where reclassification happened»
FGS~D~BM~51567\  
REF~55~2000000003\  
DTM~095~20020628\ «Date reclassification took place»
TIA~5005~~~8000~GA\ «Net amount of gallons for transaction»
TIA~5006~~~8000~GA\ «Gross amount of gallons for transaction»

In this example, the total disbursement gallons of 6,200 and 800 from PC-188 and PC-285 respectively, equal the 7,000 gallon BA receipt which increased the PC-S92 inventory. Upon truck removal, the terminal reports a mode code J truck disbursement of 7,000 gallons from PC-S92.

Example 3

4,000 gallons of diesel fuel #4 dyed (PC-153) is blended with marine diesel oil (PC-279), as a product downgrade. BA receipts are not currently permitted into PC-279. The terminal would use substitute PC-S79. A 4,000 gallon BA disbursement (15B) to PC-153 is reported to decrease the inventory of diesel fuel #4 dyed. A corresponding 4,000 gallon BA receipt (15A) PC-279 is recorded to increase marine diesel oil. The book adjustments are shown below.

 

TFS~T3~15B~PG~153~94~BA\ «Terminal disbursement book adj. for product code 153»
REF~SU~IRS\  
REF~55~1000000001\  
N1~OT~~TC~T96GR6292\ «TCN where reclassification happened»
FGS~D~BM~51569\  
REF~55~2000000001\  
DTM~095~20120628\ «Date reclassification took place»
TIA~5005~~~4000~GA\ «Net amount of gallons for transaction»
TIA~5006~~~4000~GA\ «Gross amount of gallons for transaction»
   
TFS~T3~15A~PG~S79~94~BA\ «Terminal receipt book adj. for substitute product code S79»
REF~SU~IRS\  
REF~55~1000000002\  
N1~DT~~TC~T96GR6292\ «TCN where reclassification happened»
FGS~D~BM~51569\  
REF~55~2000000002\  
DTM~095~20120628\ «Date reclassification took place»
TIA~5005~~~4000~GA\ «Net amount of gallons for transaction»
TIA~5006~~~4000~GA\ «Gross amount of gallons for transaction»

PC-279 inventory would reflect 4,000 gallons for disbursement. The terminal should consolidate its inventory of marine diesel oil into PC-S79 product code by reporting a pair of book adjustment transactions to convert its existing inventory of PC-279 into substitute PC-S79.


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Page Last Reviewed or Updated: 24-Jan-2017