Importation of Slop Oil Subject to 20% Advance Sales Tax

November 24, 1986 BIR RULING NO. 260-86 163 (4) 000-00 260-86 Gentlemen : This refers to your letter dated November 8, 1986 requesting that you be allowed to pay the advance sales tax on your importation of slop oil which arrived on November 4, 1986 on board the vessel "MV KEMINA" under Bill of Lading No. 86-10-01. It appears that slop oil is a term designating the small amounts of oil lost in various refining operations which are collected and used as charge stocks. (Petroleum Products Hand Book by Gethrie, 1st Ed. 1960). As charged stock, it is considered raw material. Moreover slop oil does not have any generating capacity like bunker or diesel fuel oil. In reply, please be informed that under the foregoing nature and description of your importation of slop oil, the same is subject to the advance sales tax at the rate of 20% in accordance with Section 162(c) of the Tax Code, in relation to Section 163(4) of the same Code, as amended by Executive Order No. 36. aisadc Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner of Internal Revenue