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8. Factories manufacturing Chinese smoking tobacco for export to Malaya maintained their exports at a satisfactory level considering the depressed state of trade in that country. The system of drawbacks worked satisfactorily, and by indenting direct on the Treasury instead of applying via the Treasury to the Secretariat, the procedure in force before, it has proved possible to reduce considerably the time for the meeting of drawback applications. The prompt payment of drawbacks is very important for the Chinese manufacturer, working as he does on a sinali capital.
III-MOTOR SPIRIT DUTIES.
As from July 1st a duty of 15 cents per Imperial gallon was levied on all light hydro-carbon oils which fell within the standard set by certain physical tests of volatility. The definition included more than the substances, of varying com- position, sold for use in internal combustion engines, and is identical with the definition in use in England, which was arrived at after exhaustive experiments. Most of the duty was of course collected on the light oil known as petrol, benzine or gasoline, but turpentine and turpentine substitutes of minerai origin also fall within the taxable category. The collection of duty on the latter has been rendered rather difficult owing to the fact that shipping companies have failed to realise that such goods are dutiable, and in many cases have failed to make the necessary returns.
To facilitate the working of the installations belonging to the large oil companies, and more especially in view of their large export trade, special arrangements have been marle, by which approved importers receive a "Special" importer's licence, and furnish security for the payment of duty in arrears each month. The arrangement has worked satisfactorily and most of the duty collected is paid monthly by holders of special importer's licences.
The amount of duty collected was $145,528.49, a fgure rather under that hoped for. A certain amount of motor spirit was in stock in the hands of garage and private owners at the time the duty was introduced, and this was not taxed. It is difficult to estimate what the yield will be in a full year, but at least $300,000 can reasonably be expected for 1931, consider- ing that only five monthly payments by the large importer- came to hand during the period under review.
IV. OPIUM.
1. The revenue collected was $2,835,286.90, a slight iner on the previous year. This was entirely due to increased of Kamshan opium in the last three months of the year. price of Kamushan or Grade I opium was raised to $60 per tael tin in December, and the unusual demand soon
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