should be used in the first instance for outstanding orders for which import licences are not forthcoming under the relevant country quota.
(c) There may be importers who have placed before December 8, 1971 firm orders covered by irrevocable letters of credit opened before that date for cotton textiles to be imported from any of the countrics subject to quota restrictions but who did not receive in 1971 an import licence under the global quota or under the relevant country quota for cotton textiles in that category. Such importers should apply to ILB giving full particulars of these orders.
All quota levels will be increased by 1 per cent over the 1971 level, but it is not possible to give any assurance that the 1 per cent increase will be reflected precisely in individual licences granted under the global quotas.
ILB will be prepared to consider applications from importers for licences to cover cotton textiles for re-export whether or not after further processing.
The arrangements for obtaining duty relief for certain cotton textiles exported in 1971 under the 1971 quota limits from restricted countries in the Commonwealth Preference Area are set out in the separate notice below.
The following is the text of a joint notice of the Department of Trade and Industry and HM Customs which is being published in the DTI series of Notices to Importers.
RELIEF FROM IMPORT DUTY ON CERTAIN COTTON TEXTILES IMPORTED ON OR AFTER JANUARY 1, 1972.
Tuis Notice sets out arrangements for obtaining duty relief in certain cases, on certain cotton textiles exported in 1971 from certain countries in the Commonwealth Preference Arca. An Order was laid before Parliament on December 6 imposing new duties on certain Commonwealth Preference Arca cotton textiles which will where necessary raise new tariff headings. These duties will come into effect on January 1, 1972. A list of the proposed headings and duty rates was published in Trade and Industry on June 30, 1971 (pages 662 and 676). It should be noted however that the recom- mended change to the description of goods for BN heading 59.13 has been withdrawn and will remain as in the current tariff.
Statutory conditions for duty relief
2. Section 2 of the Finance Act 1971 enables an Order to be made under Section 5 of the Import Dutics Act 1958 to relieve from import duty cotton yarn and manufactures of woven cotton if:
a. they are goods of the Commonwealth Preference Area, and b. they are imported on or after January 1, 1972 under the authority of an import licence which restricts the quantity of goods which may be imported thereunder, and
c. the Secretary of State for Trade and Industry certifies that he is satisfied that they were exported from their country of origin before January 1, 1972, and
d. import duty would not have been chargeable on them if they had been imported on December 31, 1971.
An Order Under Section 5 was laid on December 15, 1971.
Sources qualifying for duty relief
3. It will be noted that to qualify for relief by virtue of any order under Section 5 goods will require to be imported under a licence from Import Licensing Branch of the DTI that limits the amount of goods to be imported (see paragraphs 4 and 5 below). Such import licences will be required after December 31, 1971 for the cotton textiles concerned imported from countries and territories of the Commonwealth Preference Arca subject to quota restrictions. Cotton textiles imported from other countries and territories of the Commonwealth Preference Area under any import licence which does not restrict the quantity of goods which may be imported thereunder or cotton textiles imported from sources outside the Commonwealth Preference Arca will not meet the statutory conditions for duty relief,
Country quotas and India and Hong Kong bilatoral quotas
4. Import licences will be issued for goods imported under 1971 country quotas from the countries and territories of the Common-
wealth Preference Arca subject to quota restrictions, upon receipt of export certificates from the authorities of the countries concerned and provided the quota limits have not been exceeded (no antici- pation will be permitted of 1972 quotas in respect of goods exported in 1971). If the Department of Trade and Industry are satisfied that such goods have been exported before January 1, 1972 the import licence will be stamped with the certificate referred to in paragraph 2(c) above.
1
5. Importers holding global quota licences valid for 1971 which have not been fully used by December 31, 1971 should, if they wish to make use of the balance, apply to Import Licensing Branch for individual import licences on a consignment basis. If importers consider that goods imported under such a licence may qualify for duty relief they should when applying for an import licence, supply Import Licensing Branch with satisfactory evidence (eg the Bill of Lading) of the date of exportation from the country of origin. If the DTI are satisfied that the goods have been exported before January 1, 1972 the import licence will be stamped with the certificate referred to in paragraph 2(c).
Date of issue of licences with certificates.
6. No uniform date has been set for issuing import licences under country quotas stamped with certificates to meet condition (c) of paragraph 2 above as the period of transit from the different coun- tries of origin varies considerably. If importers receive such licences in 1971 without a certificate and consider that the goods are likely to be imported after December 31, 1971 they should return the licence to Import Licensing Branch with a request for the issue of the necessary certificate.
Exports from countries of origin after December 31, 1971 .
7. Import Licences for cotton textiles exported on or after January 1, 1972 from the countries and territories of the Commonwealth Preference Area subject to quota restrictions will be clearly marked to show that they are not certified for duty relief.
Goods imported in 1971 and put in bonded. warehouse
8. Cotton textiles imported in 1971 from the countries and terri- torics of the Commonwealth Preference Arca subject to quota restrictions and then put into bonded warehouse will be subject to whatever duty is in force when they are taken out. If this occurs in 1972 they will not be eligible for duty relief as condition (b) in paragraph 2 above will not be satisfied.
Customs requirements.
9. For Customs purposes import licences, bearing the certificate of the Secretary of State, should, as stated thereon, accompany the Customs entry documents. The name and address of the individual firm or company to whom the licence is issued, together with the number of the licence, should appear on the relative Customs entry. It should be noted that the licence will be treated as covering only the goods which are actually being imported in the one consign- ment covered by the Customs entry and that even if the quantity and/or value of goods specified in the licence is greater than the quantity and/or value of the consignment the licence will be regarded as exhausted and retained by the Customs. In such cases an application may be made to Import Licensing Branch for a further licence for the balance of the goods. Where Customs are satisfied that goods covered by import licences bearing the certificate of the Secretary of State are of Commonwealth Preference Arca origin and would have been admitted free of import duty under the conditions of Customs Notice No. 27A if they had been imported on December 31, 1971, they will allow them to be imported without payment of import duty in accordance with the Import Duty Relief (No. 1) Order 1971 under Section 5 of the Import Duties Act 1958.
DEAR EDITOR...
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KLE OMNED, yo Tiw Letters to the Editor should be addressed to the Editor, Trade and Industry, Room 437, Department of Trade and Industry, ↑ Victoria Stroot, London SW1H 0ET, and not to HMSO.
TRADE AND INDUSTRY 16 DECEMBER 1971
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