• It was known as the Sugar Act in America and titled American Revenue Act by Britih Parliament.

• The Sugar Act was passed by Parliament on April 5, 1764.

• It was introduced by Prime Minister George Grenville as a permanent act.

• The Sugar Act replaced the Sugar and Molasses Act of 1733 that was about to expire.

• The Act consists of 47 clauses that stipulate rates and duties, restrictions on trade, requirements for shippers, penalties and provisions for prosecution. See original text.

• Its purpose was to undermine illegal trade and raise revenue to pay for debt incurred during the French Indian War and to pay for additional troops to defend the border.

• The 1764 Act lowered the duty of sugar and molasses from 6 to 3p per gallon. In 1766 the duty was lowered to 1p per gallon which virtually eliminated smuggling.

• Direct export of colonial lumber and iron to continental Europe or Ireland was prohibited.

• Taxes on wine imported directly from Madeira, the Azores and the Canary Islands increased to £7 per ton instead of 10s or 1/14 the rate if shipped from Britain. Local wine traders lost all their business to British merchants.

• Exports of wine from New York shrank from over 250 pipes in 1763 to 7 in 1769.[1]

• Total wine imports from New York in 1769 were half of those in 1763.[2]

• Revenue collected amounted to an average of £30,000 a year from 1765 to 1774.

• Sugar Act revenue reached its high in 1772 with £42,570. See table in 1764 Sugar Act page

• Half the revenue came from the duty on molasses, followed by sugar and Madeira wine.

• Duties on pimiento, coffee and indigo generated little revenue.

• Vessels were prohibited to transport cargo to the colonies unless they had been loaded in Britain.

• Vessels containing cargo from other places had to unload in Britain, pay duties, reload its cargo and then proceed to the colonies.

• The Act required shipmasters to take out a cocket or sealed certificates itemizing the goods on board.

• Every vessel carrying colonial products had to give bond to pay duty on any foreign molasses taken aboard during the course of its journey. The bond was £1,000 sterling for vessels under 100 tons and £2,000 if over 100 tons.

• Failure to follow the law would result in the seizure of vessel and cargo.

• The 1764 Sugar Act strengthened the jurisdiction and power of vice-admiralty courts in the colonies.

• The Act limited damages on customs officials and awarded half the goods seized if a violation of customs law was proved. Vice admiralty courts did not required trial by jury.

Back to Sugar Act Category

Back to Stamp Act History Homepage