EXCHANGE CONTROL

Nelson Evening Mail, Volume LXXIII, 30 December 1940, Page 6

EXCHANGE CONTROL

OUTSTANDING ALLOCATIONS PROCEDURE OUTLINED RESERVE BANK STATEMENT [United Press Association] WELLINGTON, This Day. The procedure arranged for dealing with exchange allocations outstanding at the end of the year is announced as follows by the Reserve Bank of New Zealand:— On Ist January, 1941, all outstanding exchange allocations in respect of third and fourth period import licences will be cancelled—including allocations for months in 1941. This provision is not intended to deprive importers of exchange allocations which are still required in respect of goods actually admitted under third or fourth period licences before Ist January, 1941; and the trading banks are accordingly being authorised, if requested before 21st January, 1941, by the importers concerned, to reinstate such allocations, or where applicable, to carry them forward from 1940 into 1941. This applies to third party certificates as well as to exchange authorities. An important stipulation is that no allocation on a third or fourth period exchange authority or third party certificate may be used to cover any remittance in respect of goods admitted under a fifth period licence. Remittances in respect of goods ordered under third or fourth period licences, but admitted in 1941 under fifth period licences, will of course be provided for in the relative fifth period exchange authorities, unless remittance has been made before Ist January, 1941, under third or fourth period exchange authorities of third party certificates. In the latter case the amount applied for under fifth period exchange authorities should be correspondingly reduced. It is explained by the Reserve Bank that the above procedure is occasioned partly by the expiry of third and fourth period licences on 31st December, 1940, and partly to provide a basis for the bank to deal with fifth period allocations to the best advantage of all importers.