2
4.
Companies which have already increased their quota holdings by swing transfer in Phase I may still participate in Phase II, subject to the quantitative limitations set out in paragraph 3. Companies which have previously swung quota out from a particular category may swing back into that category and vice-versa.
5.
As in Phase I, the yardage required to permit swing into a category may be obtained from the following sources:-
(a) Unused balances of quota held by the applicants.
(b) Unused quota held by other quota holders provided there is mutual agreement to make this available.
(c) 'Free yardage' which the department may make
available on a first-come-first-served basis.
6.
Swing between apparel and fabrics, and cotton and non-cotton apparel is not permitted, and there will be no swing into or out of towel categories.
7.
'Free yardage' will only be available in respect. of fabric categories and will be issued on a first-come-first- served basis under the following conditions:-
(a) any free yardage swing quota approved by the
department is for utilization during the remainder of the current textile year only;
(b) shipments against such free yardage swing quotas
will not be counted as qualifying performance for allocation in 1969/70 in the event there are export restraints in that year;
(c) free yardage swing quotas are not transferable nor
can they be swung out;
(d) all export licences applied for against a free
yardage swing quota must quote the reference number given in the top right-hand corner of the swing form. Any licence not quoting this number will be debited against the company's ordinary quota.
The amount required to be surrendered in respect' of swing transfers should be calculated in accordance with the conversion factors shown at Appendix I. An example of the corver- sion calculation is shown at Appendix II.
9.
Applications for swing may be made with immediate effect on swing forms, specimen copies of which are attached at Appendices III and IV. Applicants should complete three copies of Form 'B' if the intention is to surrender the required yardage from their own quota or to acquire 'Free yardage' from the depart- ment; or 6 copies of Form 'C' if the surrender of yardage is to be made by some other company. In the latter case, the applicant company and the one supplying the necessary yardage must make a joint application for the transfer of the necessary yardage and submit it in the first instance to the Stamp Duty Office, Inland Revenue Department. After payment of duty, 5 copies of the transfer form, duly stamped in the Stamp Duty Office, will be returned to the applicant for submission to this department. Application forms may be obtained from the Textiles Division of the department at 2nd floor, Fire Brigade Building, Hong Kong.
10.
All applications for swing increase received by noon on 12th April, 1969 will be considered together and approved on a pro-rata basis if necessary. For balances remaining available after that date, applications will be considered on a first-come-first- served basis; but a quota holder may not submit an application in
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