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FRIDAY, SEPTEMBER 23, 1983
UNDER THIS RULE, A QUOTA-HOLDER WHO TRANSFERS OUT TEMPORARILY, OVER TWO CONSECUTIVE YEARS, 50 PER CENT OR MORE OF HIS TOTAL QUOTA HOLDINGS IN EITHER THE GARMENT OR NON-GARMENT GROUP OF CATEGORIES FOR ANY PARTICULAR MARKET IS LIABLE TO HAVE HIS QUOTAS REDUCED IN THE THIRD YEAR. HOWEVER, THIS LIABILITY CAN BE REDUCED OR ELIMINATED BY ANY TRANSFERS IN.
THIS HAS MADE IT POSSIBLE FOR SOME QUOTA-HOLDERS WHO HAVE PERSISTENTLY TRANSFERRED OUT QUOTAS IN HIGH-DEMAND CATEGORIES TO EVADE THE RULE BY TRANSFERRING IN QUOTAS IN LOW-DEMAND CATEGORIES FOR OFFSETTING PURPOSES. QUOTAS THUS TRANSFERRED IN HAVE OFTEN NOT BEEN USED FOR SHIPMENT AND HAVE THUS BEEN WASTED.
TO COUNTER THIS PRACTICE, ONLY TRANSFERRED-IN QUOTAS WHICH HAVE BEEN UTILISED WILL IN FUTURE BE TAKEN INTO CONSIDERATION IN CALCULATING A QUOTA-HOLDER'S LIABILITY UNDER THIS RULE.
IN ADDITION, STRINGENT CONDITIONS WILL ALSO BE INTRODUCED TO ENSURE THAT A COMPANY SUPPLYING QUOTAS FOR A PARTICULAR SHIPMENT IS GENUINELY AND DIRECTLY CONCERNED WITH THE MANUFACTURE OR THE EXPORT OF THE GOODS. THIS IS AIMED AT STRENGTHENING THE DETERRENT AGAINST +UNDERGROUND+ TRANSFERS OF QUOTAS.
THE OTHER MODIFICATIONS RECOMMENDED BY THE TEXTILES ADVISORY BOARD ARE AIMED MAINLY AT DISCOURAGING SPECULATIVE APPLICATIONS FOR FREE QUOTAS.
MR MACLEOD SAID THAT THE TRADE DEPARTMENT WILL SHORTLY BE ANNOUNCING DETAILED ARRANGEMENTS FOR IMPLEMENTING THE VARIOUS MODIFICATIONS.
+SOME OF THE CHANGES CAN BE IMPLEMENTED IMMEDIATELY. OTHERS CAN ONLY BE PUT INTO EFFECT AT THE BEGINNING OF THE NEXT RESTRAINT PERIOD BECAUSE THEY WOULD AFFECT THE DISPOSITION ALREADY MADE BY QUOTA-HOLDERS,+ MR MACLEOD SAID.
AS REGARDS THE TIMING OF THE NEXT REVIEW, MR MACLEOD SAID THAT, AS RECOMMENDED BY THE TEXTILES ADVISORY BOARD, THE QUOTA SYSTEM WILL HENCEFORTH BE +CONTINUOUSLY MONITORED AND CONSTANTLY REVIEWED, AND ITS PROVISIONS MODIFIED WHERE AND WHEN NECESSARY.+
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