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The new system has worked well after the officers concerned had got accustomed to it and certain practical adjustments in the methods of assessment of raw leaf had been made after experiment.
2. Legislation.—By an amendment of the Tobacco Ordinance duty became payable on raw leaf as soon as it was imported or drawn from bonded warehouse for removal to any factory. This system is in force in most other countries where Tobacco is taxed, including the United Kingdom.
The United Kingdom. To facilitate manufacture for export a system of drawbacks was introduced, based on the amount of duty-paid tobacco which had been used in each case.
3. Licences. The fees for importers and retail licences were raised on the 1st January, and an unexpectedly large number of retailers renewed their licences at the enhanced fee which was graded according to locality.
4. Tariff.—As a sequence to the transfer of taxation on to the raw leaf instead of the manufactured product in the case of local factories, a flat rate was adopted for all imported manufactured tobacco, instead of the former classified ad valorem tariff. It had in fact proved increasingly difficult to assess at their true value the numerous and often ephemeral brands of imported cigarettes and cigars, and the only assessment which found ready acceptance was that in the importer's favour. The manufacturer abroad now knows in advance exactly what the duty will be on any new brand which he may wish to introduce. Formerly every manufacturer had to consider carefully how to adjust his price and quality so as to bring his goods just within the lowest possible tariff class.
III. OPIUM.
The Revenue collected was $2,705,858.20, a decrease of $670,262.75 on the figures for 1928.
2. Sources of illicit opium.—(a) Prepared Opium.
(i) Wuchow, in spite of the West River being closed to trade twice by the invasions of the Kwong Sai forces, supplied the largest quantity of prepared opium.
(ii) Macau supplied the second largest quantity, this was in one-tael brass tins bearing an impressed device of a Lion and a globe, and is commonly known to Chinese as the Red Lion brand. This brand has been sent to Malaya in large quantities and has been discovered frequently in the Netherlands Indies and elsewhere. Whether this brand is actually prepared in Macau itself is unknown, but it is very frequently found on ships which are known to have come direct from Macau and to have been to no other port. The tin differs from those sold in Macau itself on behalf of the official Monopoly. Smokers report that this opium is a blend of Persian and Chinese raw opium with a considerable admixture of some adulterant.