Appendix E.

REPORT OF THE SUPERINTENDENT OF IMPORTS AND EXPORTS FOR THE YEAR 1932.

I. LIQUOR.

The net revenue collected was $2,461,497.68 as compared with $2,416,838.04 in 1931. The decrease of over $50,000 in duties on European Type Liquor was accounted for partly by the rise in exchange and the consequent diminution of the figure of the factor. Duties on Spirituous Liquor increased by approximately $168,000 owing to the new duties, imposed in September 1931, but of this amount $116,022.44 was paid to firms manufacturing perfumes and medicines for Export on Drawback. The number of gallons of Chinese Spirit paying duty was 1,118,126.

2. Frauds. During 1932 no frauds either outside or inside the office were discovered and this is no doubt due to the measures taken during 1931. The usual smuggling upon the water front continued and considerable ingenuity was displayed by the smugglers. One consignment of drums of black paint from Macao proved to contain, instead of paint, arrack with which had been mixed Chinese ink powder which could subsequently be separated with ease from the arrack. The volume of smuggled liquor however is chiefly produced by cumulative totals of innumerable petty cases representing a gallon or even less.

3. Local Distilleries.-The amount of spirit upon which duty was paid by local distilleries increased by approximately 110,000 gallons. This increase was largely due to the system of control which has been brought into force in recent years. The improved type of still has in most cases proved satisfactory, though a considerable amount of trouble has developed owing to faulty materials being used in their construction. The distilleries themselves are certainly in a more sanitary condition than they have been for the last twenty years though there is still room for improvement.

4. Chinese Imported Spirit.-There was a small decrease in the amount of Northern Spirit imported for local consumption and a large decrease in import from South China. The decreases were probably due to some extent to adverse trade conditions and also to increased competition from spirit distilled in Hong Kong.

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