Inclosure 4 in No. 3.
Revised Regulations for the issue to prepared Opium Shops of Licences whereby they agree to pay the within mentioned prepared Opium Levy.
THE present farm is charged with the extension of the licence levies on native raw opium and foreign prepared opium, the reason being the payment of the foreign indemnity; and, in accordance with Viceregal instructions, prepared opium, whether native or foreign, must pay 1 mace 2 candareens per tael ounce. As regards native opium, the farm will establish offices at the places of production for the collection of the tax in accordance with these Regulations. As to foreign opium sold by the opium shops, the levy can only be imposed after such opium has been boiled.
2. All opium dealers, whether dealing in the foreign or native prepared drug, must present themselves to the farm before the day of the moon and receive their licences, which shall be of three kinds. Dealers who hold a first-class licence shall be permitted on report being made of the number of balls purchased by them, to boil the same themselves. Holders of second-class licences shall bring their own workmen and boiling utensils and boil their opium under the farm's superintendence at furnaces erected by the farm. Holders of third-class licences must purchase from the farm the prepared opium they desire to sell. The above conditions will be explicitly stated on the licences. Licences having been accepted shall never be changed, nor shall any additional ones ever be issued.
3. The number of licences issued to prepared opium shops shall be limited, but no matter whether the said shops are of recent or long establishment, they shall all be allowed to present themselves at the same date and receive their licences. Applications will, however, be attended to as they are presented, and when all the licences have been taken out no additional ones shall be issued. Accordingly, if any application is late in arriving, the fault is the fault of the applicants. The licences expressly state the quantity of foreign or native prepared opium dealt in by the holder, and there must be no concealment. Each tael ounce shall pay 1 mace, 2 candareens. As regards native prepared opium, the amount paid by it in its raw state on the basis of a prepared opium calculation is clearly stated, and it shall not, therefore, be liable to be taxed again. Notwithstanding this, however, any shop which deals exclusively in the prepared native drug must be provided with a licence from the farm before proceeding to boil and sell. In this manner, the necessary investigations will be prosecuted.
4. All prepared opium shops, by their acceptance of the licences, acknowledge themselves liable to pay a fixed and determined levy, and must not therefore misrepresent the quantity of opium in which they deal. If such misrepresentation is discovered, they shall either be heavily fined or have their business cancelled. The amounts for which they acknowledge themselves to be responsible, as stated in their licences, shall, on the date of the inauguration of the tax being fixed, be remitted to the farm month by month, and an account book shall be kept in which will be entered the amounts received. If there is any delay in making the remittances or any short payment, the farm shall, at its own time and discretion, send men to collect the amounts outstanding, and if the sums due are considerable, the farm shall petition the authorities to procure payment, and even seal up the goods and the shop to be sold to meet the debt. Thus, will the importance of this Government levy be emphasized. If any shop closes its doors which is not short in its tax payments to the farm, it must, in order to avoid application being made for it, return its licence to the farm for cancellation.
As regards shops which only deal in prepared native opium which is not subject to be taxed again, as they hold a licence, they must, if they close their houses, also report to the farm and have their licences cancelled.
5. All prepared opium shops which are unprovided with the farm's licences and which boil and sell secretly at any place, manifestly intend to disregard these Regulations and the farm, on obtaining information thereof, whether privately or openly, which is supported by clear evidence, shall request their deputy to take soldiers to arrest and deal with them, to seal up their premises and punish them, and to sell the illicit opium for the benefit of those connected with its seizure; also to arrest the men engaged in the secret boiling and hand them over to the authorities for punishment and fine as a warning.
6. The prepared opium shops, after the establishment of the Kuang Hing Kung Ssu, did not pay a single cash to it, and lost no time in seizing the opportunity to raise the price of opium to such a figure that the increase almost equalled 1 mace, 2 candareens (the farm's levy), and thereby made considerable profits. What we then now intend to do is to impose a tax equal to this increase in price, and there will thus be no injury done to their business. It is easy for them to obey, and the farm trusts that they are of the same opinion as itself, and will exert themselves to assist it in its imposition of a levy equal in amount to the rise in price induced by them, and thus help the Government revenue.
7. All these licence levies, therefore, though levied on the prepared opium shops, are, since the selling price of the drug is raised, actually paid by the consumer. The farm intends to do is to discover the exact quantity of opium consumed; in other words, only to do its duty. Consequently, it will do no harm to your business, but, on the contrary, will bring you advantage. All that is necessary is for the levy to be conducted in a friendly spirit, so that each side may mutually benefit, trouble be avoided, and the revenue assisted. The farm believes that you will rejoice to help it, and that you share its own opinions in this matter.
8. The Foreign Indemnity, as every one has long since known, is now most urgent; and the present tax on native raw opium and foreign prepared opium will realise a large sum. The Provincial Government, therefore, being compelled to raise funds for remittance to the Imperial Government, cannot oppose the levy. The present farm is entrusted with its management, and intends to assist the revenue. Its intentions are very just, and its only hope is to prevent the revenue falling short. If you will inform the farm of anything which is inconvenient to you, it will, of course, discuss it amicably with you; but if you fail to appreciate the circumstances of this matter, and have not receded from your former stand, the farm fears it will have to withdraw in favour of others, causing further trouble which would not be in accordance with your wishes, so be sure to look before you leap.
9. Any person who, for his own interest, and in order to avoid the payment of the tax, secretly boils opium in any unfrequented place, will do great harm to the business of the prepared opium shops; and the farm, therefore, requests its deputy to take soldiers to search for them at any time or place, and, as soon as they are discovered, to send them to the authorities to be severely punished in accordance with the Regulations, so that the business of the prepared opium shops may be protected without fail.
10. Bad characters in Canton are very numerous, and the farm, therefore, fears that their licences may be forged and falsely sold in the hope of profit being made thereby. This must be resisted, and in addition to the secret investigations which the farm will make, all you prepared opium shops must come personally to the farm to obtain your licences. You will thus know that you have a proper licence, and will avoid the risk of being tricked to your own detriment.
Should you find the above Regulations in any way unsatisfactory, you prepared opium shops may at any time present yourselves at the farm to discuss the same with a view to a satisfactory arrangement.
Regulations drawn up and memorialized by the Hêng Chi Farm for the collection of a licence levy in Kuangtung on all opium from Ssuch'uan and Yünnan, and foreign prepared opium.
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