The Tea Act Of 1773 Essay

1019 words - 5 pages

The Tea Act of 1773
The Tea Act was passed on May 10, 1773 by Parliament. The act granted the British East India Company Tea a monopoly on tea sales in the American colonists. The main reason this passed was to get the East India Company out of bankruptcy, which the company was in due to reduced sales of their tea. The act gave the East India Company two benefits. One was to allow it to market its tea directly to America, using its own agents there. This allowing it to bypass the network of auctions, wholesalers, and colonial merchants through which the tea previously had seen sold. The other benefit was to free the company of the duty on tea that it imported to Britain and then reshipped to America.
“John Hancock organized a boycott of tea provided by the East India Company, which was subject to an import tax, and helped to enforce the boycott by smuggling tea in so that the colonists would not go without their favored beverage.” This is what resulted in the Tea Act. "The trade in tea with China that was the most viable in the 18th century. Tea accounted for more than 60% of the Company’s total trade in the late 1700's. Customs duty on tea was providing 10% of the British government's annual revenues.” The Tea Act being passed was not aimed to make the American colonists angry, but it made many mad. American colonists could buy no tea unless it came from the company. American colonists saw this law as yet another meaning of “taxation without representation” because it meant that they could not buy tea from anyone else without spending a lot more money. There was a bad reaction to the Tea Act.
The Tea Act was during the American Revolution. During this time not just only the Tea Act was a major event leading to the Revolutionary War so was other acts. “The Tea Act was a follow-up to the Revenue Act that was one of the laws in the Townshend Acts which set new import duties (taxes) on British goods including paint, paper, lead, glass and tea.” Due to protesting of the on British goods, trade was really affected because the American colonists refused to buy goods.
The provisions of the Tea Act of 1773
The provisions in the Tea Act let tea be shipped to East India Company ships directly from China to the American colonists, this avoided tax on goods first sent to England. Another provision was for a tax of three pence per pound to be collected on tea delivered to America.
“The tea was to be marketed in America by special consignees (receivers of shipments) who were to be selected by the East India Company.” The tea consignees was based on four colonies: Boston, New York, Philadelphia, and Charleston.
Effect of the Tea Act of 1773 on the Colonists
Middlemen had a chance of losing their businesses to the East India Company agents.
Merchants also had a chance of losing their jobs. “The Tea Act directly impacted shop keepers who would only allowed to purchase tea from merchants...

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