1959-HKRS30-8-49_Part04 — Page 43

Citation

Interpreta. ti-c

Application for licence.

Fees.

Payment of royalties to be condition of licence.

Royalty

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PEARL CULTURE (CONTROL) ORDINANCE, 1958.

(No. 26 of 1958).

Pearl, Culture (CONTROL) REGULATIONS, 1959.

In exercise of the powers conferred by section 16 of the Pearl Culture (Control) Ordinance, 1958, the Governor in Council has made the following regulations-

1. These regulations may be cited as the Pearl Culture (Control: Regulations, 1959.

2. In these regulations, unless the context otherwise requires- "embedding" means the insertion of a foreign body into an oyster for

the purpose of producing a cultured pearl;

"harvest" means the removal of pearl oysters from cultivation areas for

the purpose of extracting pearls therefromt

3. Every application for the grant of a licence under section 6 of the Ordinance shall be made in writing addressed to the Director. and the Director may upon receipt of such application request from the applicant such further information relating thereto as may appear to him necessary for the purpose of determining the suitability of the applicant for grant of a licence.

The grant or renewal of every licence shall be subject to pay- ment in advance of the following fees-

(a) in the case of a temporary licence, one thousand dollars; and

(b) in the case of a licence, five thousand dollars: Provided that where upon the expiration of a temporary licence, a Licence is issued the fee payable in respect of that period of licence shall be four thousand dollars only.

5. The payment of the royalties proscribed under these regulations shall be a condition of every licence granted under section 6 of the Ordinance.

6. (1) The licensee shall pay to the Government for each twelve- monthly period of his licence a royalty calculated on his net profit for that period derived from the cultivation of pearl oysters and the culture of pearls under his licence and from the sale of such pearl oysters and pearls.

(2) Such royalty shall be-

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(a) for each of the first three twelve-monthly periods, fifteen per

cent of such net profit; and

(6) for the fourth and each subsequent twelve-monthly period,

twenty-five per cent of such net profit.

(3) For the purposes of this section, the period during which a licensee is operating under a temporary licence granted under paragraph (a) of subsection (1) of section 6 of the Ordinance shall, where such licence is not followed by a licence under paragraph (5) of subsection (1) of that section, be deemed to be a twelve-monthly period.

7. (1) The net profit referred to in regulation 6 shall be ascer- Ascertainmeat tained in accordance with Part IV of the luland Revenue Ordinance :

of net profit. (Cap. 112, Provided that-

1956 Reprin0.

(a) in making the deduction set forth in section 16 of the said Ordinance due regard shall be had to the current level of prices and costs, so that any such deduction shall be limited to a sum which in the opinion of the Financial Secretary is reasonable, and so that allowance of any sum by way of depreciation of a capital asset shall be limited to an amount which represents the allowance approved under Part VI of the said Ordinance on what in the opinion of the Financial Secretary is a reason- able price for such asset;

(6) in ascertaining the net profit as aforesaid, no deduction shall be made in respect of any sum which may be payable as royalty by the licensee to the Government;

(c) for the purpose of ascertaining the net profit as aforesaid, all sales of pearl oysters and pearls shall be deemed to have taken place in the Colony.

(2) The Financial Secretary and any person authorized by him in writing shall for the purpose of ascertaining the net profit be an authorized representative of the licensee for the purposes of section 4 of the Inland Revenue Ordinance to the intent that the Commissioner of Inland Revenue and any assessor or person appointed to carry out duties under the said Ordinance shall, on demand by the Financial Secretary, disclose all such matters relating to the affairs of the licensee as the Financial Secretary or such authorized person may require, and such disclosure shall not be a breach of the duties imposed by the said Section upon the person making it.

(3) In the event of the licensee failing to agree with the ascertain- ment of net profit made by the Financial Secretary, an appeal, by way of petition, shall lie to the Governor in Council whose decision shall be final.