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liquor issued.

Sub-Section 3 of Section 3 of Ordinance No.27 is also very (( conclusive in the matter.

"The duty upon intoxicating liquors distilled made or "prepared in the Colony shall be payable before the removal "of such liquors from the factory or place in which they are " distilled made or prepared

No where in the Ordinance are these Sections repealed.

From above quotations it is clear that all wines distilled in the Colony should pay duty but such is not the case.

Wine removed from a distillery for export or wine that is removed from a distillery to a licensed warehouse for blending and for ultimate exportation does not pay duty. It is only the wine that is recorded by the distillers sold for local consumption that paya duty and for this liquor only a foil and counterfoil is filled in in accordance with paragraph 5 quoted above.

No foil or counterfoil is filled in by the distiller for the wine exported or removed to a licensed warehouse under export and removal permits.

This misconception, if there should be one, probably emanates from Section 23 of Ordinance No.27 which would lead one to

think that a distillery having a license is deemed to be a licensed warehouse #ith the privileges of a bonded warehouse in the matter of exporting wine from bond and consequently not liable to duty.

I have visited all the distilleries the principal ones in company with Lieut. Beckwith. I found that they all attempt to conform with the instructions but it is very difficult to effect a control. To do so accurately would necessitate a daily and constant supervision by an European Revenue officer who would keep account of the output of each distillery, wine in stock and issue permits for deliveries.

Distillers would have to restrict the deliveries to

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