The new scheme will, on the face of it, benefit the Steam-ship Companies on the Yang-tsze, as it will tend to increase the amount of opium carried by steamer. Hitherto steamers have been practically debarred from taking opium destined for the four inner provinces, i.e., Hunan, Hupei, Kiangsi, and Anhui (these including the important markets of Shasi, Hankow, Changteh, Kiukiang, and Wuhu), owing to a differential tax in favour of junk-borne opium amounting to 118.93 Haikwan taels on junk-borne and 134.79 Haikwan taels on steamer-borne, the actual duties charged being: For junk-borne opium, "koa chuan" tax, 82.79 Kuping taels; l-kin, 38.10 Kuping taels; total, 120.89 Kuping taels (118.93 Haikwan taels); for steamer-borne, "kao chuan," 82.79 Haikwan taels; customs export duty, 52 Haikwan taels; total, 134.79 Haikwan taels per picul.
With a uniform tax of 115 Kuping taels, steamers, offering speedy and safe transport, should obtain the bulk of the opium shipped from this port.
The new Regulations have, as far as I can learn, been well received by the local opium shippers, although they are taking exception to the clause providing for the payment of the tax in ready money. They seem to think, however, that the present comparatively low tariff will be increased as soon as the scheme gets into proper working order.
One or more Taotais are to be appointed to each province as delegates of the Board of Revenue to superintend the collection of the new tax. Taotai Ts'ai Yuan-shun assumed charge here on the 16th instant as Superintendent for Hunan and Hupeh, his official title being "Tu pan Liang Hang t'u yao t'ung shui tsung pan."
I venture to think that the new scheme, in so far as it affects the opium trade of Western China, deserves careful watching, as although the avowed object of its promoters is to regulate, limit, and eventually suppress altogether opium growing in China, it seems quite possible that the new tax, which, if properly administered, will simplify procedure and reduce taxation in the most productive areas, will have the effect of increasing and stimulating rather than diminishing and discouraging the production of opium in China.
(Translation.)
I have, &c.
HARRY E. FOX.
(Signed)
Inclosure 3 in No. 1.
A PROCLAMATION by Ko Feng-Shih, Junior Vice-President of the Board of Revenue, Imperial Commissioner for the Reform of the Currency, Imperially appointed to supervise the arrangements for the collective taxation of native opium throughout the Empire.
WHEREAS the Board of Revenue and the Board of Financial Reorganization have jointly memorialized the Throne with regard to a uniform scheme for the conversion into one collective tax of all taxes and dues hitherto levied on raw and prepared opium in the various provinces, and whereas the Imperial sanction has now been received to the universal adoption of this scheme, be it known that hereafter all opium, no matter in what province it is produced or in what province it is consumed, shall pay its dues in full at the first custom-house or barrier en route, have a label affixed, and receive a certificate, after which it may be conveyed for sale into any province without any further charges whatsoever, thus securing uniformity of treatment.
The Boards having memorialized for the appointment of high officials in all the provinces who, in consultation with the territorial authorities, will establish offices for the administration of the new scheme, hereby issue this Proclamation, in which are embodied the most important Articles of the Regulations which have received the Imperial sanction for the information and guidance of the public.
Regulations.
1. For the purposes of taxation a package of opium without its outer covering and inside wrappings will be called "net weight opium"; on this no deduction will be allowed under any circumstances. Weights will be calculated at the uniform rate of 16 Kuping ounces to the catty.
2. One picul of "net weight opium" shall pay a collective tax of 100 Kuping taels, and at the same time a supplementary fee of 15 Kuping taels, no distinction being made between raw opium, l-kin, and boiled opium excise, and no other charges. All levies coming under the heading of production tax, consumption tax, fees for reporting to barrier, meltage fees, charges for loss by exchange, office repairs, examination, labels, certificates, &c., are now abolished.
If the slightest addition is made by any office or official to the 115 taels above mentioned, the merchant should report the case, giving particulars, when the case will be inquired into and the guilty parties dismissed or punished.
"Net weight" opium reported to the Foreign Customs for export shall pay in accordance with these Regulations 115 taels per picul. There shall be no further charges.
Kuping taels will henceforth be substituted for Haikuan taels in assessing duties.
On payment by the merchant of the collective tax and supplementary fee a label will be affixed to each ball of opium, and a certificate will be issued for each package; the Foreign Customs will in addition affix a box label. There shall be no further charge, no matter to what province the opium is conveyed for sale.
No matter in what province the opium is produced, it is to be taxed according to these Regulations. No compromises of any kind shall be permitted. Duty-paid opium conveyed for sale into another province shall at the first office or barrier across the frontier be reported for examination of weights, numbers, labels, and certificates. If found to be in order the opium will be stamped and released. It shall not be subjected to any delays or exactions. If not in order the opium shall be confiscated.
The offices and barriers are strictly forbidden to allow the payment of fines. If it is found when the opium comes up for examination that the labels have not been properly affixed but are handed in by the merchant, or if the label has been removed and fastened on in another place, or if the label is torn or mutilated in any way, or if the label is not accompanied by a certificate, or vice versa, or if the label is in any way not in order, then the opium shall be detained, and the name of the office and official responsible for the issue of the original documents shall be reported for punishment and dismissal.
All documents such as labels, certificates, duty-paid memorandums, Customs certificates ("chuan chao"), box labels, &c., shall be supplied by the Head Office and distributed to the various branch offices, where they will be in charge of special deputies. In order to avoid complications no documents shall be made in the provinces.
When an opium merchant intends selling his opium in any province he shall report to the nearest office or barrier and have the original certificate cancelled; the official in charge shall issue in exchange a box label on which will be indorsed the number and "yin hua" and which will be affixed to the package. Every package locally sold shall have its documents in order, that is to say, the box label must agree with the "yin hua," otherwise the opium is liable to confiscation. In the case of box labels fixed by the Foreign Customs, the merchant shall produce (to the office or barrier) the Customs certificate and the red stamp indorsement showing the opium's destination. These documents may be handed in at any office or barrier free of charge.
No opium can be sold until its documents have been properly cancelled.
An opium merchant, having paid the tax and received his documents from the barrier, shall, if the opium is to be transported by steamer, report at the nearest custom-house, hand in his certificate for examination, and will receive in return a new certificate and a Customs box label. No further "yin hua" will be issued. It may then be transported anywhere free of charge. Arrived at its destination, the Customs certificate and box label must, as above stated, be handed in for cancellation.
The offices shall, in consultation with the territorial authorities, make arrangements for the taxation of opium produced for local consumption. The Head Office will issue labels and quadruplicate duty-paid memorandums, on which will be indorsed the number of balls, weights, and serial number of "yin hua," but no certificate will be issued. Such opium is for local consumption only; if sent into another province it will be treated as contraband.
The revenue hitherto derived by the various provinces from opium duties and levies now included in the collective tax will be refunded in full to each province. No further levies of any kind are to be made. Any attempt by provincial offices and officials to levy taxes on their own account should be reported by the merchants, and will be dealt with according to the circumstances of the case.
The collective tax must be paid in ready money; if the merchant has no ready money his opium will be detained and a receipt given.