Appendix E.
REPORT OF THE SUPERINTENDENT OF IMPORTS AND EXPORTS FOR THE YEAR 1924.
I.- LIQUOR.
The net revenue collected under the heading of Liquor was $1,229,262.66 as against $1,276,152.87 in 1923.
European and Chinese Liquors both show decreases. The collection of duty on Chinese Liquor still remains unsatisfactory. Whereas in 1913, 240 licensees in Hongkong and Kowloon paid duty on 1,461,320 gallons of Chinese Liquor, an average of 6,088 each, in 1924, 341 licensees in the same districts paid duty on 1,238,306 gallons, an average of 3,603 gallons each only. Evasion of duty on part of many Distilleries in the New Territory was discovered, and it was decided to transfer the complete control of distilleries in the New Territory from the Police to this department, the staff of which has been strengthened for the purpose. Towards the end of the year a Distillery at Aberdeen in a large way of business was detected in a systematic fraud on the Revenue. Unfortunately the account books of the firm in current use were not found, and hence it was impossible to ascertain how much they had defrauded the revenue, but there were certain indications that they had been for some time paying at most half of the correct amount. Steps were taken during the year to bring the manufacture of Chinese vinegar from spirit more strictly under control. Considerable work was done in investigating the crude methods employed by Chinese Distilleries, in order to devise some better method of control than that at present employed. The great difficulty is that the crude methods employed do not give any constant result; large losses of alcohol are incurred during distillation owing to the defective apparatus employed, and such losses are very variable even in the same plant. To insist on adequate alterations might result in the closing down of all distilleries here, which on the whole produce a liquor much superior to that imported from Macau and China, which has been recently of a very inferior quality, compounded with a large proportion of silent spirit. Chinese spirit is sold at such a low price that the legitimate profits of a distillery are small, hence they cannot well afford the structural alterations needed, or the new outfit of modern stills which would enable this department to keep a proper check on the production. Revision of the law concerned with the taxation of liquor has been approved and the work is now in hand.
Detailed figures are as follows :--
Duties on European Liquors 1923 $458,256.77 810,325.10 1924 $421,181.85 800,663.32 Overtime Fees 7,250.00 7,062.49 321.00 355.00 Chinese Liquor Licensed Warehouse Fees 1,276,152.87 1,229,262.66