1940 EXCHANGE

New Zealand Herald, Volume LXXVII, Issue 23851, 30 December 1940, Page 8

1940 EXCHANGE

ALLOCATIONS LAPSE CANCELLATION ANNOUNCED BANK EXPLAINS PROCEDURE [by TELEGRAPH—PRESS association] WELLING TON, Sunday Tlie Reserve Hank announces the procedure Arranged for dealing with exchange allocations outstanding at the end of the current year. On January 1, 1941, nil outstanding exchange allocations in respect of third and fourth period import licences will be cancelled—including allocations for months in ]941. 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 January 1, 19-11, and the trading banks are accordingly being authorised, if requested before Januarv 21, ]941, by tho importers concerned, to reinstate such allocations or, where applicable, to carry them forward from 1910 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. Reniittnnees 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 prior to January ], 1941, under third or fourth period exchange authorities or third party certificates. In the latter case the amount applied for under fifth period exchange authorities should be correspondingly reduced. ft is explained by the Reserve Bankthat the above procedure is occasioned partly by the expiry of third and fourth period licences on December -SI, 1940, and partly to provide a basis for the bank to deal with fifth period allocations to the best advantage of all imjxtrtcrs.