The Act, which received the royal assent on May 10, 1773, contained the following provisions:
- The Company was eligible to be granted license to export tea to North America.
- The Company was no longer required to sell its tea at the London Tea Auction.
- Duties on tea (charged in Britain) destined for North America "and foreign parts" would either be refunded on export or not imposed.
What was the major objective of the Tea Act?
What was the major objective of the Tea Act of 1773? The Tea Act 1773 (13 Geo 3 c 44) was an Act of the Parliament of Great Britain. The principal objective was to reduce the massive amount of tea held by the financially troubled British East India Company in its London warehouses and to help the struggling company survive.
What is the main idea of the Tea Act?
The act was intended to bail out the struggling East India Company, which was very important for the British economy, and the Tea Act would raise revenue from the 13 colonies.
How did the Tea Act effect the price of tea?
How did the Boston Tea Party affect the economy? The act, however, didn’t increase taxes: It lowered the price of tea by allowing the struggling East India Company to sell directly to colonists without first stopping in England. This cut out colonial middlemen and essentially gave the company a monopoly on tea sales.
What were provisions of the Tea Act?
What Was the Tea Act?
- Provisions of the Tea Act. Before the introduction of the Tea Act, the British exclusively sold their tea through auctions in London.
- Implications of the Tea Act. A salient objective of the Tea Act was to undercut the prices of illegal tea which was smuggled into the North American British colonies.
- Repeal of the Tea Act in 1861. ...
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What was the Tea Act in simple terms?
What Was the Tea Act? In 1773, tea was the most popular drink among the American colonists. The Tea Act was a law set in place on May 10, 1773 by the British Parliament, giving all control of the trade and delivery of tea to the East India Tea Company, which had struck a deal with parliament.
Why did the colonists hate the Tea Act?
American colonists were outraged over the tea tax. They believed the Tea Act was a tactic to gain colonial support for the tax already enforced. The direct sale of tea by agents of the British East India Company to the American colonies undercut the business of colonial merchants.
What was the Tea Act and why was it created?
On April 27, 1773, the British Parliament passes the Tea Act, a bill designed to save the faltering East India Company from bankruptcy by greatly lowering the tea tax it paid to the British government and, thus, granting it a de facto monopoly on the American tea trade.
What are 3 facts about the Tea Act?
THE COLONIES' RESPONSEMany colonists rejected the Tea Act. ... Merchants who had been importing tea would lose their business. ... Opposition to the Tea Act affected imported tea in many colonies. ... Over £90,000 of tea was destroyed by colonists at the Boston Tea Party on December 16, 1773.
How did the Tea Act impact the colonists?
The Tea Act aborted this restriction and granted the British East India Company license to export their tea to the American colonies. This opened up the British East India Company's markets to the lucrative American colonies.
What was the purpose of the Tea Act quizlet?
The Tea Act meant that the colonists had to buy their tea from the East India Company. They could either pay the tax on tea or not drink tea at all.
Why did the colonists object to the Tea Act quizlet?
The colonists opposed the Tea Act because they believed that Parliament did not have the right to tax the tea, and they did not want to be forced to buy it from only one company. What was the Boston Tea Party? On December 16, 1773, three ships carrying British tea lay anchored in Boston Harbor.
Why did the colonists oppose the Tea Act of 1773 even though it provided tea at lower prices?
Why did the colonists oppose the Tea Act of 1773 even though it provided tea at lower prices? They denied Parliament's right to establish a monopoly on their trade.
How did the Tea Act of 1773 aggravate the tensions between Britain and the colonies?
It raised taxes on tea without allowing colonial representation. The principle that the colonists must be represented in Parliament if they were to be taxed. Colonists were only willing to pay internal taxes that their assemblies or Parliament enacted with their consent.
Why did Parliament believe the colonists would accept the Tea Act?
Why did Parliament believe the colonists would accept the Tea Act? parliament purchased the tea at a cheap rate with the small tax it would still cost less than the normal rate of tea and england believed the colonists would like the cheaper price.
What was the purpose of the Tea Act?
The principal objective was to reduce the massive amount of tea held by the financially troubled British East India Company in its London warehouses and to help the struggling company survive. A related objective was to undercut the price of illegal tea, ...
What was the tea act 1773?
Tea Act 1773. Parliament of Great Britain. Long title. An act to allow a drawback of the duties of customs on the exportation of tea or oil to any of his Majesty's colonies or plantations or farms in America; to increase the deposit on bohea tea to be sold at the East India Company's sales; and to empower the commissioners ...
How much tea did the smugglers import?
Smugglers imported some 900,000 pounds (410,000 kg) of cheap foreign tea per year. The quality of the smuggled tea did not match the quality of the dutiable East India Company tea, of which the Americans bought 562,000 pounds (255,000 kg) per year.
Why did the Sons of Liberty encourage the consumption of smuggled tea?
Although the British tea was more appealing in flavor, some Patriots like the Sons of Liberty encouraged the consumption of smuggled tea as a political protest against the Townshend taxes. In 1770 most of the Townshend taxes were repealed, but taxes on tea were retained.
What happened to the tea in the colonies?
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 the tea to be landed.
What was the Boston Tea Party?
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 Boston Port Act, which closed Boston Harbor until the dumped tea was paid for. This was the first of the so-called Coercive Acts, or Intolerable Acts 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 American Revolutionary War .
When did the Boston Tea Party happen?
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 Boston Tea Party.
What was the purpose of the Tea Act?
A salient objective of the Tea Act was to undercut the prices of illegal tea which was smuggled into the North American British colonies. Consequently, the colonists would resort to buying company tea that incorporated the Townshend duties. Agreeing to purchase the tea meant that the colonists supported the Parliament of Britain’s right of taxation. The bone of contention in this matter was that about 85% of tea consumed in America at the time was smuggled Dutch tea.
What was the Tea Act?
Nevertheless, the war was unstoppable. The colonies called the Tea Act a “dead letter” leading to its removal from the books in 1861.
How did the Tea Act help the British?
Hence, the Tea Act was a great relief to the company. The Act allowed the company to directly export its tea to the American colonies which would lead to an expansion of its markets. Additionally, the British East India Company would enjoy duty-free export of tea from Britain. The taxes imposed by the Townshend Acts and those taxes remitted by the colonies remained in force.
Why did the British pass the Tea Act?
The objective of the Act was to grant the British East India Company a monopoly in selling tea to the American colonies. Before the passing of the Act, the company had been financially troubled which resulted in 17 million pounds of tea held in stock. The Act would allow the British East India Company to sell its tea to the vast American colonies’ markets and not just the London markets. However, the Act was rejected by the colonies.
Why was the Tea Act important?
The Tea Act was not intended to anger American colonists, instead it was meant to be a bailout policy to get the British East India Company out of debt. The British East India Company was suffering from massive amounts of debts incurred primarily from annual contractual payments due to the British government totaling £400,000 per year.
What was the Tea Act?
The Tea Act was the final straw in a series of unpopular policies and taxes imposed by Britain on her American colonies. The policy ignited a “powder keg” of opposition and resentment among American colonists and was the catalyst of the Boston Tea Party. The passing of the Tea Act imposed no new taxes on the American colonies.
Why did the colonists oppose the Tea Act?
American colonists were outraged over the tea tax, which had existed since the 1767 Townshend Revenue Act and did not get repealed like the other taxes in 1770, and believed the Tea Act was a tactic to gain colonial support for the tax already enforced .
What was the direct sale of tea by agents of the British East India Company to the American colonies?
The direct sale of tea by agents of the British East India Company to the American colonies undercut the business of colonial merchants. Prior to the Tea Act, colonial merchants purchased tea directly from British markets or smuggled from illegal markets. They then shipped it back to the colonies for resale.
What angered the American colonists about the Tea Act?
Besides the tax on tea which had been in place since 1767, what fundamentally angered the American colonists about the Tea Act was the British East India Company’s government sanctioned monopoly on tea. The Tea Act …was what ultimately compelled a group of Sons of Liberty. on the night of December 16, 1773 to disguise themselves as Mohawk Indians, ...
What was the catalyst for the Boston Tea Party?
The Tea Act: The Catalyst of the Boston Tea Party. The Tea Act , passed by Parliament on May 10, 1773, granted the British East India Company Tea a monopoly on tea sales in the American colonies. This was what ultimately compelled a group of Sons of Liberty members on the night of December 16, 1773 to disguise themselves as Mohawk Indians, ...
Why was the Tea Tax repealed?
Due to boycotts and protests, the Townshend Revenue Act’s taxes were repealed on all commodities except tea in 1770. The tea tax was kept in order to maintain Parliament’s right to tax the colonies.
Why did the Tea Act not raise taxes?
The act was not intended to raise revenue in the American colonies , and in fact imposed no new taxes. It was designed to prop up the East India Company which was floundering financially and burdened with eighteen million pounds of unsold tea. This tea was to be shipped directly to the colonies, and sold at a bargain price.
Where did the tea ships go when the colonists left the ship?
Colonists in Philadelphia and New York turned the tea ships back to Britain. In Charleston the cargo was left to rot on the docks. In Boston the Royal Governor was stubborn and held the ships in port, where the colonists would not allow them to unload.
Why did the Townshend Duties still exist?
The Townshend Duties were still in place, however, and the radical leaders in America found reason to believe that this act was a maneuver to buy popular support for the taxes already in force. The direct sale of tea, via British agents, would also have undercut the business of local merchants.
Overview
The Tea Act 1773 (13 Geo 3 c 44) was an Act of the Parliament of Great Britain. The principal objective was to reduce the massive amount of tea held by the financially troubled British East India Company in its London 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 …
Background
In the 1760s and earlier the East India Company 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. The markups imposed by these merchants, combined with tea tax imposed by the Townshend Acts of 1767 created a profitable …
Provisions of the Act
The Act, which received the royal assent on May 10, 1773, contained the following provisions:
• The Company was eligible to be granted license to export tea to North America.
• The Company was no longer required to sell its tea at the London Tea Auction.
• Duties on tea (charged in Britain) destined for North America "and foreign parts" would either be refunded on export or not imposed.
Implementation
The Company was granted license by the North administration to ship tea to major American ports, including Charleston, Philadelphia, New York City, and Boston. Consignees who were to receive the tea and arrange for its local resale were generally favorites of the local governor (who was royally appointed in South Carolina, New York, and Massachusetts, and appointed by the proprietors in Pennsylvania). In Massachusetts, Governor Thomas Hutchinson was a part-owner …
Reaction
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 undercut by the Company's lowered prices. These interests combined forces, citing the t…
Consequences
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 Boston Port Act, which closed Boston Harbor until the dumped tea was paid for. This was the first of the so-called Coercive Acts, or Intolerable Acts 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 th…
Provisions of The Tea Act
Implications of The Tea Act
- A salient objective of the Tea Act was to undercut the prices of illegal tea which was smuggled into the North American British colonies. Consequently, the colonists would resort to buying company tea that incorporated the Townshend duties. Agreeing to purchase the tea meant that the colonists supported the Parliament of Britain’s right of taxation...
Repeal of The Tea Act in 1861
- In a bid to end the American Revolutionary War, the Parliament of Great Britain repealed the oppressive Taxation of Colonies Act 1778. Nevertheless, the war was unstoppable. The colonies called the Tea Act a “dead letter” leading to its removal from the books in 1861.