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Tea Act

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Many colonists opposed the Act, not so much because it rescued the East India Company, but more because it seemed to validate the Townshend Tax on tea. Merchants who had been acting as the middlemen in legally importing tea stood to lose their business, as did those whose illegal Dutch trade would be
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the tea to be landed. Matters reached a crisis when the time period for landing the tea and paying the Townshend taxes was set to expire, and on December 16, 1773, colonists disguised as Indians swarmed aboard three tea-laden ships and dumped their cargo into the harbour in what is now known as the
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had been required to sell its tea exclusively in London on which it paid a duty which averaged two shillings and six pence per pound. Tea destined for the North American colonies would be purchased by merchants specializing in that trade, who transported it to North America for eventual retail sale.
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In New York and Philadelphia, opposition to the Act resulted in the return of tea delivered there back to Britain. In Charleston, the colonists left the tea on the docks to rot. Governor Hutchinson in Boston was determined to leave the ships in port, even though vigilant colonists refused to allow
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was one of several people who suggested things would be greatly improved if the Company was allowed to export its tea directly to the colonies without paying the taxes it was paying in London: "to export such tea to any of the British colonies or plantations in America, or to foreign parts, import
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In 1770 most of the Townshend taxes were repealed, but taxes on tea were retained. Resistance to this tax included pressure to avoid legally imported tea, leading to a drop in colonial demand for the Company's tea and a burgeoning surplus of the tea in the company's English warehouses. By 1773 the
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saw an opportunity to achieve several goals with a single bill. If the Company was permitted to directly ship tea to the colonies, this would remove the markups of the middlemen from the cost of its tea. Reducing or eliminating the duties paid when the tea was landed in Britain (if it was shipped
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onward to the colonies) would further lower the final cost of tea in the colonies, undercutting the prices charged for smuggled tea. Colonists would willingly pay for cheaper Company tea, on which the Townshend tax was still collected, thus legitimizing Parliament's ability to tax the colonies.
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The Act granted the Company the right to directly ship its tea to North America and the right to the duty-free export of tea from Britain, although the tax imposed by the Townshend Acts and collected in the colonies remained in force. It received the
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warehouses and to help the struggling company survive. A related objective was to undercut the price of illegal tea, smuggled into Britain's North American colonies. This was supposed to convince the colonists to purchase Company tea on which the
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were paid, thus implicitly agreeing to accept Parliament's right of taxation. Smuggled tea was a large issue for Britain and the East India Company, since approximately 86% of all the tea in America at the time was smuggled Dutch tea.
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as they were called by the colonists, passed by Parliament in response to the Boston Tea Party. These harsh measures united many colonists even more in their frustrations against Britain and were one of the many causes of the
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on December 16, 1773, when colonists (some disguised as Native Americans) boarded tea ships anchored in the harbour and dumped their tea cargo overboard. Parliamentary reaction to this event included the passage of the
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mobilized opposition to the delivery and distribution of the tea. The company's authorised consignees were harassed, and in many colonies, successful efforts were made to prevent the tea from being landed. In
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Proposals were made that the Townshend tax also is waived, but North opposed this idea, citing the fact that those revenues were used to pay the salaries of crown officials in the colonies.
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The Boston Tea Party appalled British political opinion makers of all stripes. The action united all parties in Britain against the American radicals. Parliament enacted the
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of 1767 created a profitable opportunity for American merchants to import and distribute tea purchased from the Dutch in transactions and shipments that violated the
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repealed the tea tax and others that had been imposed on the colonies, but it proved insufficient to end the war. The Tea Act became a "dead letter" as far as the
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undercut by the Company's lowered prices. These interests combined forces, citing the taxes and the Company's monopoly status as reasons to oppose the Act.
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recognized the implications of the Act's provisions, and a coalition of merchants, smugglers, and artisans similar to that which had opposed the
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Company was close to collapse due in part to contractual payments to the British government of £400,000 per year, together with war and
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Duties on tea (charged in Britain) destined for North America "and foreign parts" would either be refunded on export or not imposed.
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a number of taxes (including the tea tax that underlay this act) as one of a number of conciliatory proposals presented to the
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The Company was granted a license by the North administration to ship tea to major American ports, including
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which drastically reduced the Company's revenue from India, and economic weakness in European markets.
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encouraged the consumption of smuggled tea as a political protest against the Townshend taxes.
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An act to allow a drawback of the duties of customs on the exportation of tea or oil to any of
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Consignees receiving the Company's tea were required to pay a deposit upon receipt of tea.
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was a part-owner of the business hired by the Company to receive tea shipped to Boston.
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The markups imposed by these merchants, combined with the tea tax imposed by the
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The Company was eligible to be granted a license to export tea to North America.
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were concerned, and was formally removed from the books in 1861.
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to be sold at the East India Company's sales, and to empower the
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Divided Loyalties, How the American Revolution came to New York
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The Company was no longer required to sell its tea at the
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his Majesty's colonies or plantations or farms in America
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on May 10, 1773, contained the following provisions:
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Unsourced material may be challenged and removed. 1286: 1284: 1726: 1354:John Hancock, Merchant King and American Patriot 1281: 1385: 1275:"Tea Act | Great Britain [1773]" 941: 1079:and were treated by British authorities as 1392: 1378: 948: 934: 1750:Repealed Great Britain Acts of Parliament 1427:, and other legal issues relating to the 106:Learn how and when to remove this message 1204: 1123: 1740:Laws leading to the American Revolution 1727: 1189:, and appointed by the proprietors in 353:Declaration of Independence (painting) 1755:Great Britain Acts of Parliament 1773 1373: 324:Text of statute as originally enacted 1014:, this resistance culminated in the 44:adding citations to reliable sources 15: 1087:was more appealing in flavor, some 13: 1239:Coercive Acts, or Intolerable Acts 470:No taxation without representation 348: 14: 1776: 1156: 1709: 1708: 1401: 916: 129: 20: 1696:Taxation without representation 1228: 1029:royal governor of Massachusetts 31:needs additional citations for 1302: 1293: 1267: 1193:). 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"Tea Act"
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Parliament of Great Britain
Long title
his Majesty's colonies or plantations or farms in America
bohea tea
commissioners of the treasury
East India Company
Citation
13 Geo. 3
The Rt. Hon.
Lord North
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MP
Prime Minister
Chancellor of the Exchequer
Leader of the House of Commons
Great Britain
British Dominions
Royal assent
Commencement

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