Appendix E.
REPORT OF THE SUPERINTENDENT OF IMPORTS AND EXPORTS FOR THE YEAR 1929.
I.-LIQUOR.
1. The net Revenue collected was $1,740,350.42 including licence fees. Chinese spirit showed a decrease of $123,400.81, this decrease occurred chiefly in the last half of the year. European liquor showed an increase of $18,087.64.
Collections on Chinese liquor remained very unsatisfactory, although larger seizures of Chinese spirit and spirits of wine were made. In the course of investigations made into various cases it was proved that a large amount of spirit consumed by Chinese never paid duty, and that the general evasion of duty was far greater than was realised before.
2. Distilleries.-Collections from local Chinese distilleries showed a decrease of 14 per cent. This decrease was partly due to bad trade, partly to water shortage, and partly to the competition of spirits of wine smuggled in from Macau. The competition caused by smuggled spirits of wine caused some distilleries to take a hand in this illicit trade themselves.
(b) The Distillery Regulations continued to work satisfactorily, and all distilleries are now being worked in a systematic manner, and the old, careless, haphazard, and confused methods have been entirely abandoned. All fermenting vessels are arranged in systematic order and are emptied for the purpose of distillation in strict rotation.
(c) Two distilleries were detected in possession of smuggled spirits of wine and convictions were obtained. These distilleries were practically bankrupt at the time and closed at once when detected. The spirits of wine were generally used for the purpose of blending with their own output.
(d) Five distilleries were found to be engaged in extensive frauds on the Revenue by means of the concealment of about half of their production of rice spirit. They actually reduced by a half the time they claimed necessary for proper fermentation, distilling at half time and not accounting at all for the spirit so produced. Fresh rice was then put to ferment and distilled at the stated time, the spirit so produced being duly accounted for. The records kept in the distillery, of course, failed to show the distillation at half-time and the putting on of fresh rice to ferment. These frauds had probably been going