PEARL CULTURE (CONTROL) REGULATIONS

PEARL CULTURE (CONTROL) REGULATIONS

PEARL CULTURE (CONTROL) REGULATIONS

ARRANGEMENT OF REGULATIONS

Regulation Page

1. Citation ... ... ... ... ... ... ... ... ... ... ... ... ... ... A2

2. Interpretation ... ... ... ... ... ... ... ... ... ... ... ... ... A2

3. Application for licence ... ... ... ... ... ... ... ... ... ... ... A 2

4. Fees ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... A 2

5. Payment of royalties to be condition of licence ... ... ... ... ... ... A 2

6. Royalty ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... A 2

7. Ascertainment of net profit ... ... ... ... ... ... ... ... ... ... A 3

8. Power of the Financial Secretary to call upon the licensee and certain persons
dealing with the licensee to produce books and statements of account ... A 3

9. Payment of royalty ... ... ... ... ... ... ... ... ... ... ... ... A 4

10. Record and accounts ... ... ... ... ... ... ... ... ... ... ... ... A 4

11. Half-yearly returns ... ... ... ... ... ... ... ... ... ... ... ... A 4

12. Marking of cultivation areas ... ... ... ... ... ... ... ... ... ... A 5

13. Size of rafts ... ... ... ... ... ... ... ... ... ... ... ... ... ... A 5

14. Mooring of rafts ... ... ... ... ... ... ... ... ... ... ... ... ... A 5

15. Marking of rafts ... ... ... ... ... ... ... ... ... ... ... ... ... A 5

16. Notice of removal of rafts ... ... ... ... ... ... ... ... ... ... ... A 5

17. Inspection of rafts ... ... ... ... ... ... ... ... ... ... ... ... A 6

18. Protection of Pteria oysters ... ... ... ... ... ... ... ... ... ... A 6

19. Conservation of pearl oysters ... ... ... ... ... ... ... ... ... ... A 6

20. Penalties ... ... ... ... ... ... ... ... ... ... ... ... ... ... A 6





PEARL CULTURE (CONTROL) REGULATIONS

(Cap. 307, section 15)

[15 May 1959]

1. These regulations may be cited as the Pearl Culture (Control)
Regulations.

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 therefrom.

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.

4. The grant or renewal of every licence shall be subject to
payment in advance of the following fees

(a) in the case of a temporary licence, $1,000; and

(b) in the case of a licence, $5,000.

5. The payment of the royalties prescribed 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-

(a)for each of the first 3 twelve-monthly periods, 15 per cent of
such net profit; and

(b) for the fourth and each subsequent nt twelve-monthly
period,
25 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
subsection (1)(a) of section 6 of the Ordinance shall, where such licence
is not followed by a licence under subsection (1)(b) of that section, be
deemed to be a twelve-monthly period.





7. (1) The net profit referred to in regulation 6 shall be ascertained
in accordance with Part IV of the Inland Revenue Ordinance:

Provided that

(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 reasonable
price for such asset;

(b)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;

(e)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 alTairs 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
ascertainment 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.

8. (1) It shall be lawful for the Financial Secretary for the purpose of
ascertaining the net profit of the licensee during any period in respect of
which royalty is payable under the provisions of regulation 6 or of
ascertaining whether any deduction which the licensee has made or may
be seeking to make from profits is reasonable, by writing under his hand
to call upon the licensee and any person (other than a bank) who has
entered into any agreement with the licensee to produce to such person
and at such time and place as may by any general or particular
description be specified in such writing such books and statements of
account (including bank statements) as he may by such writing require.

(2) The licensee or any person aggrieved by any exercise of the
discretion conferred upon the Financial Secretary may appeal, by way of
petition, to the Governor in Council whose decision shall be final.





(3) Subject to the right of appeal conferred by paragraph (2), it
shall be an offence to fail to comply with any requirement lawfully made
under paragraph (1) or any requirement which may have been confirmed
or substituted therefor on appeal under paragraph (2): Penalty: a fine of
$100 in respect of each day during which such failure continues.

9. The royalty referred to in regulation 6 shall be paid within 14
days of the dispatch to the licensee of the notice of ascertainment of
the net profits:

Provided that if the net profits have not been ascertained within 6
months of the end of the twelve-monthly period for which the royalty is
due a provisional royalty equal to 5 per cent of the licensee's gross
sales shall be payable forthwith. As soon as the net profit has been
ascertained a final adjustment shall be made and the Government shall
refund any sum paid by way of provisional royalty in excess of the
royalty due for that twelve-monthly period, or if the amounts paid by
way of provisional royalty by the licensee are less than the royalty due,
the licensee shall pay to the Government the balance thereof.

10. Every licensee shall keep in relation to the culture of pearls
carried on by him

(a)accurate and regular accounts of all sales by or on his behalf
of cultured pearls; and

(b) an accurate record of-

(i) the total number of live pearl oysters collected,
purchased or acquired, otherwise than by cultivation;

(ii) the total number of pearl oysters under cultivation from
time to time,

(iii) the total number of pearl oysters embedded from time to
time and the dates upon which embedding was effected;

(iv) the total number of pearl oysters harvested from time to
time and the dates upon which harvesting was effected; and

(v) the total number of pearls extracted from pearl oysters
so harvested.

11. It shall be the duty of every licensee to render to the Director
not later than 31 January and 31 July in each year a half-yearly situation
report showing

(a)a statement of account of sales of cultured pearls during the
preceding half year, that is to say, the half year ending on 31
December or 30 June, as the case may be;

(b)the total number of live pearl oysters collected, purchased or
acquired, otherwise than by cultivation during the preceding
half year;





(c)the total number of pearl oysters under cultivation by him as at
the preceding 31 December or 30 June, as the case may be;

(d)the total number of oysters embedded as at the preceding 31
December or 30 June, as the case may be;

(e)the total number of pearl oysters harvested during the
preceding half year; and

the total number of pearls extracted during the preceding half
year.

12. The licensee of every cultivation area shall mark such area by
means of buoys of such type and in such number and sited in such
manner as the Director shall approve and the licensee shall cause to be
exhibited from each such buoy between the hours of sunset and sunrise
a fixed white light visible all round for a distance of not less than 3
kilometres.

13. No licensee shall use or cause or permit to be used any raft
which is so constructed as to exceed 150 metres in length or 20 metres in
breadth.

14. Every licensee shall cause each raft used by him to be at all
times anchored to the satisfaction of the Director.

15. (1) Every licensee shall cause his name to be marked in
conspicuous lettering in English upon each and every raft used by him
and between sunset and sunrise shall cause to be exhibited the
following lights

(a)in the case of a raft exceeding 50 metres in length, a fixed white
light visible all round for a distance of not less than 1500
metres situated at each end of the raft at a height of not less
than 2 metres above water level; and

(b)in the case of any raft not exceeding 50 metres in length, a
fixed white light visible all round for a distance of not less than
1500 metres situated midway along the length of the raft at a
height of not less than 2 metres above water level.

(2) Where by reason of any emergency any raft is temporarily
moved out of a cultivation area to any other place, the licensee of the
area from which it is removed shall cause such raft to be marked for the
purpose of identification at all times during which it is outside the
cultivation area, in addition to the marks specified in paragraph (1), by a
rectangular flag flown from the raft and of a size not less than 900
millimetres by 600 millimetres bearing the name of such licensee in
conspicuous lettering in English.

16. If any raft is moved from a cultivation area the licensee of that
area shall give prior notice of his intention to move the raft to the
Director; and, in any case in which it is not reasonably possible in the
circumstances to give such notice prior to moving the raft, such notice
shall be given so soon as reasonably practicable after removal is
effected.





17. (1) The Director and any person authorized in that behalf by
him may at any time by day or by night inspect any raft including all
moorings, marks, cages and other equipment whatsoever ancillary
thereto.

(2) If any person resists or obstfucts any inspection authorized by
paragraph (1), he shall be guilty of an offence against this regulation.

18. (1) No person shall wilfully kill, or cause to be killed, any oyster
of the genus Pteria which measures less than 57 millimetres when
measured through a plane drawn at right angles to the hinge.

(2) Any person who contravenes any of the provisions of this
regulation shall be guilty of an offence and liable to a fine of $10,000 and
6 months imprisonment.

19. For the purpose of conserving the natural stocks of pearl
oysters in the waters of the Colony, the Director may from time to time
by notification in the Gazette prohibit the collection of pearl oysters, or
restrict the number of pearl oysters which may he collected, in any
particular area or areas specified by him in such notification during such
periods or during such seasons as may be specified in such notification.

20. Any person who contravenes any of the provisions of
regulations 10 to 17 inclusive shall be guilty of an offence and liable to a
fine of $500 and in the case of a continuing offence to a further daily
penalty of $10; and in the case of any contravention of any notification
made under regulation 19 to a fine of 51,000 and imprisonment for 6
months and in the case of a continuing offence to a further daily penalty
of $50 a day.
G.N.A. 31/59. G.N.A. 85/60. G.N.A. 20/61. L.N. 60/81. Citation. Interpretation. Application for licence. Fees. G.N.A. 20/61. Payment of royalties to be condition of licence. Royalty. Ascertainment of net profit. (Cap. 112.) Power of the Financial Secretary to call upon the licensee and certain persons dealing with the licensee to produce books and statements of account. Payment of royalty. Record and accounts. Half-yearly returns. Marking of cultivation areas. L.n. 60/81. Size of rafts. L.N. 60/81. Mooring of rafts. Marking of rafts. L.N. 60/81. Notice of removal of rafts. Inspection of rafts. Protection of Pteria oysters. G.N.A. 85/60. Conservation of pearl oysters. Penalties.

G.N.A. 31/59. G.N.A. 85/60. G.N.A. 20/61. L.N. 60/81. Citation. Interpretation. Application for licence. Fees. G.N.A. 20/61. Payment of royalties to be condition of licence. Royalty. Ascertainment of net profit. (Cap. 112.) Power of the Financial Secretary to call upon the licensee and certain persons dealing with the licensee to produce books and statements of account. Payment of royalty. Record and accounts. Half-yearly returns. Marking of cultivation areas. L.n. 60/81. Size of rafts. L.N. 60/81. Mooring of rafts. Marking of rafts. L.N. 60/81. Notice of removal of rafts. Inspection of rafts. Protection of Pteria oysters. G.N.A. 85/60. Conservation of pearl oysters. Penalties.

https://oelawhk.lib.hku.hk/items/show/3166

1964

v20

307

6