NEW PROCEDURE

New Zealand Herald, Volume LXXVII, Issue 23618, 30 March 1940, Page 14

NEW PROCEDURE

OVERSEAS EXCHANGE UNUSED ALLOCATIONS NOTIFICATION NECESSARY When exchange allocations for payment of goods under import licences are not needed in the specified month through delays in deliveries and other causes, they 110 longer will automatically he carried forward, according to now procedure announced by the Reserve Bank, Such allocations will he cancelled unless a request for postponement is lodged by the importer at the trnding bank concerned before the end of the allotted month. The Reserve Hank stales that in order to make the most effectivo use of available overseas funds for the Dominion's requirements, it is necessary that the hank should know to what extent exchange authorities already issued will not be availed of. Every importer who will not have occasion to remit the full amount of his exchange allocations during the period covered by the exchange authority is therefore requested to notify his bank at his earliest convenience in order to enable • surplus allocations to be cancelled.

"While these requirements will lint affect the existing arrangements whereby importers may, subject to arrangement with their bankers, carry forward those allocations which are found to be required in months later than provided for in the original allotment, the Reserve Bank points out that it should be borne in mind that any allocations not used in the month specified are automatically cancelled unless the request for postponement is lodged at the bank concerned before the end of the specified month. It seeks the co-operation of all importers in the matter, so that the future issue of exchange authorities may be dealt with under the most favourable conditions possible.

In explanation of the .Reserve Bank's notification, it is stressed that facilities for carrying forward exchange allocations apply only to those that are likely to be required for later months in respect of the licences to which they are related.