On 02/23/2011 10:34 AM, RHF wrote:


the Tea Act taxed the tea at source (i.e. in India) so there was no tax
collection in the colonies. The act allowed the tea to go directly to
America instead of having to be imported to Britain and then re-exported
to the colonies. This made the tea 9d per lb cheaper, even with the 3d
tax. It also allowed the East India Company to sell the tea exclusively
to chosen merchants (consignees) in the American colonies. This
established monopolies in America and offended colonial merchants.

In addition the government made a loan of £1.4 million to the East India
Company which was to be allowed to ship tea directly and on its own
account to America. The Company would pay the 3d duty on the tea's entry
into the colonies but was exempt from reimbursing the English customs
for the 1/- English duty which would previously have fallen on it. The
consequence was that tea would sell at 10/- per lb in America, not the
£1 which it had fetched recently. This would increase its consumption
and so the Company would be helped out of its financial difficulties.
Furthermore, the Company aided the government by taking measures against
smuggling now that it was delivering direct to America. The tea was
consigned in known quantities and to authorized merchants acting as
Company agents. However, by that time, the colonists were suspicious of
British motives and the Tea Act led directly to the Boston Tea Party.

http://www.boston-tea-party.org/tea-act.html