2 -
Down swing from quota in categories with specific limits into group yardage quota within the same group remains unlimited; but where the yardage to be surrendered for swing increase of a group yardage quota comes from another group, the amount of swing increase permissible will be subject to the restraint limit of the group into which yardage is to be swung. All shipments against group yardage quota are required to be covered by export authorizations.
4.
Companies which have already increased their quota holdings by swing transfer in Phase I may still partici- pate 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.
The yardage required to permit swing into a category may be obtained from the following sources:-
6.
(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.
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 conversion calculation is shown at Appendix II.
7.
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 and six 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. Application forms
may be obtained from the Textiles Licensing Office of the Department at 2nd floor, Fire Brigade Building, Hong Kong.
8.
All applications for swing increase received by noon on 12 April, 1969 will be considered together and approved on a pro-rata basis if necessary. For balances remaining avail- able after that date, applications will be considered on a first- come-first-served basis; but a quota holder may not submit an application in respect of any one category exceeding the maximum amount specified in paragraph 3, nor may he submit more than one application for that category on any one day.
2.
Shippers are reminded that, in calculating ship- ment performance for the purpose of future quota allocations, shipments against a swing transfer will be considered as perfor- mance in the category from which quota has been swung out; this performance being credited to the company from whose permanent quota the necessary surrender of yardage for the swing transfer has been made. Failure to ship any swing quantities may result in penalties being applied to those companies which originally surrendered the swing yardage.
10. contact:-
Should you require further information, please
Mr. M. Chan
Assistant Trade Officer (U.S. Textiles)
Tel. No. H-447888
/Mr. K.H. Tsui......