RESTRICTED
WORLD TRADE WT/BOP/R/33
18September 1997
ORGANIZATION(97-3758)
Committee onBalance-of-Payments Restrictions
REPORT ONTHE 1997 CONSULTATIONS WITH THE CZECH REPUBLIC
1. TheCommittee onBalance-of-payments Restrictions consulted withtheCzech Republic on
14and15July1997. Theconsultations wereheldunder theChairmanship ofMr.Peter R.Jenkins
(United Kingdom) inaccordance withtheterms ofreference ofArticle XII:4(a) oftheGATT 1994
andtheUnderstanding ontheBalance-of-Payments Provisions oftheGATT 1994. TheInternational
Monetary Fund wasinvited toparticipate intheconsultations inaccordance withArticle XV:2 of
GATT 1994.
2. TheCommittee hadbefore itthefollowing documents:
WT/BOP/N/19 andAdd.1 Notification from theCzech Republic
WT/BOP/G/3 Basic Document Supplied bytheCzech Republic
WT/BOP/S/3 Background Paper bytheSecretariat
IMF Czech Republic: Recent Economic Developments,
12November 1996
Opening Statement bytheRepresentative oftheCzech Republic
3. Theopening statement bytherepresentative oftheCzech Republic isattached asAnnex I.
Statement bytherepresentative oftheInternational Monetary Fund
4. Thestatement bytherepresentative oftheInternational Monetary Fundisattached asAnnex II.
Discussion intheCommittee
(i) Balance-of-payments position andprospects; alternative measures torestore equilibrium
5. Members welcomed thereforms thattheCzech Republic hadintroduced overthepastfewyears
andthegenerally liberal trade regime itpursued. Inparticular, theywere appreciative oftherecent
packages ofmeasures adopted following theextreme slowdown ingrowth andthedeterioration of
theexternal position. Many ofthenegative trends intheeconomy could beconsidered astemporary,
withgrowth predicted topickupagain inthesecond halfoftheyear. Nevertheless, itwaspointed
out,ashadbeenhighlighted bytheIMF, thattheimbalances hadbeencreated asaresult ofweak
macroeconomic policies, inparticular theslowpaceofenterprise restructuring andinsufficient corporate
governance.MemberssupportedtheIMFviewthatfiscalpolicycouldbetightenedfurther;thewidening
ofthecurrent account deficit could beascribed tothestrength ofdomestic demand fuelled bystrong
wagegrowth. Adjustment could beachieved byacombination offurther fiscal tightening, wagerestraint
ordepreciation ofthecurrency. Some Members doubted whether there wasanimminent threat ofWT/BOP/R/33
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adecline inmonetary reserves, withreserves at3.5months ofimports ofgoods andservices; the
currency hadrecovered substantially since thespeculative attack onthekoruna andtheGovernment
could borrow internationally withrelative ease.
(ii) System, method andeffect ofrestrictions
6. Members welcomed thetimely notification oftheimport deposit scheme under consideration
butnotedtheabsenceofaphase-outplanandrequestedthatsuchbeprovided.SomeMembersapplauded
themeasure inthatitwasprice-based, others criticized itonthegrounds thatitdidnotmeetthecriterion
ofparagraph 4oftheUnderstanding, i.e.thatrestrictions aretobeapplied across theboard. Curiosity
wasexpressed astothebasisonwhich those products subject tothemeasure hadbeenselected. Some
doubted whether trademeasures could redress macroeconomic imbalances, andnoted evidence which
suggested thatthemeasure hadnotsignificantly affected growth inimports subject tothedeposit scheme.
Some members pointed outthatthescheme hadadiscriminatory effect onsmall enterprises because
itrequired financial resources. Themajority ofmembers suggested thatthemeasure beeliminated
assoonaspossible.
Replies from therepresentative oftheCzech Republic
7. Inhisreply, therepresentative reminded theCommittee thathisGovernment pursued anopen
trade policy including alowincidence ofnon-tariff measures andanimport-weighted tariff of
5.5percent. Henoted thatreserves werecurrently 3.5months ofimports compared to4.5months
inApril and6.5months theprevious yearandthattransition economies weremore likely tobeatthe
mercy ofunpredictable adverse factors. Pointing outthattheimport deposit scheme waspartofa
package ofmeasures torestore equilibrium, headded thatitwasthemeasure leastdisruptive totrade,
thatthere wasnointention toprovide protection toanysectors andthatitwasnotclearthatsmaller
firms werehurtdisproportionately bythismeasure asborrowing wasalways apossibility. Inanycase,
theCzech authorities were keeping developments inthemacro-economic indicators under constant
scrutiny andwould bereviewing theimport deposit scheme during September.
Conclusions
8. TheCommittee welcomed themacroeconomic reforms introduced bytheCzech authorities
since1990andapplauded theprogress made towards anopen, market-based economy. TheCommittee
expressed appreciation forthetimely Czech notification ofthemeasure under consideration, while
regretting theabsence from itofanytime-schedule fortheelimination ofthemeasure.
9. Some Members oftheCommittee tooktheviewthattheCzech Republic 'sbalance-of-payments
circumstancesdidnotjustifyrecoursetoArticleXIIoftheGATT1994.TheCzechdelegationreaffirmed
theirconfidence thatthemeasure wasanecessary response tocircumstances corresponding tothose
setoutinArticle XII.
10. AmajorityofMembersoftheCommitteearguedthatthemeasurewasinappropriate,particularly
inthatitscoverage ofimports wasselective, andill-designed toredress macroeconomic imbalances.
Theyurged theCzech authorities toeliminate itduring orbefore theirforthcoming review; ortopresent
totheCommittee, before anyresumption oftheconsultation, atime-schedule foritselimination within
1997. TheCzech delegation maintained thatthemeasure wasinfullconformity withCzech obligations
under Article XIIandthe1994 Understanding, andstressed thatitwaswithout protectionist intent.WT/BOP/R/33
Page3
11. Noting thattheCzech authorities wereplanning tocarryouttheirreview before mid-September,
theCommittee agreed tosuspend theconsultations andtoresume intheweek of22September. The
Committee welcomed theCzech authorities 'readiness totakeaccount, during thereview, oftheopinions
expressed during thismeeting.WT/BOP/R/33
Page4
ANNEX I
Statement bytheRepresentative oftheCzech Republic
Mr.Chairman,
Firstofall,allow metoexpress ourappreciation forthereadiness ofCommittee Members
toconsult withus,inaccordance withrespective provisions ofArticle XIIoftheGATT 1994, onimport
depositschemeintroducedtocombatthebalance-of-paymentsdifficultiesofourcountry.Equally,Iwould
liketothank theWTO Secretariat andtheIMFRepresentative fortheirhighly instructive contributions.
Andnow, Mr.Chairman, Iwould wishtostartmyintroductory statement byashort update
ofbasic macroeconomic dataoftheCzech Republic, ascontained inourBasic Document.
Inthefirstquarter of1997, thenegative tendencies which appeared inthenational economy
attheendof1996, further proliferated. TheGDP growth decelerated. Itincreased by1.5percent,
compared tothesame period ofthepreceding year.
InJanuary-March ofthisyear, theindustrial output decreased, compared tothesame period
of1996, by4.2percent.Following anincrease by6.3percentinApril, industrial output registered
anewdecline inMaywhich wasequal to3.3percent.
Duetodecelerated growth ofeconomic activity, thefirstsixmonths of1997terminated with
thestatebudgetdeficitamountingtoCZK14.8billion,orequivalentof2percentofexpectedhalf-a-year
GDP. Tocompare, intheprevious years thestatebudget ended either balanced orevenwithsurpluses.
Theconsumers price index reached asober levelof6.8percent.
TheCzechRepublic´scurrentaccountdeficitexpandedsubstantiallyandtotalledUS$4.5billion
in1996. According torecently revised dataonGDP, itrepresented 8.2percentofGDP, instead of
8.6percent, asmentioned inourBasic Document. Inthefirstquarter of1997, thedeficit further
widened toUS$1.1 billion, i.e.9percentofGDP. Inthesame period of1996, thedeficit wasequal
toUS$0.54billion, i.e.4.8percentonly.
Foratrade balance. thepicture seems tobeslightly more positive forthefirstfivemonths
of1997. Although thetotaltrade deficit continued toincrease (byCZK 9.4billion, compared tothe
same period oftheprevious year), intheannual interval oftherecent 12months, May1997monthly
tradedeficit contributed toadecline ofthisannual indicator fromCZK173billion toCZK169billion.
InMay, thecumulated imports increased by8.6percent, exports by6.7percent. The
corresponding datafor1996were15.4percentand8.6percent,respectively. Asaresult ofthistrend,
thedifference between exports andimports dynamics hasnarrowed from6.2to1.9percentage points.
Thedatawhich Imentioned should, however, beconsidered cautiously, sinceacurrent change intrends
remains tobeconfirmed byfuture developments.
OurBasic Document indicates thatin1996, theaggregate capital account surplus amounted
toonlyhalf-a-level oftheprevious year. Thetrend ofslowing down ofthenetinflow ofthecapital
continued inthefirstquarter of1997 andamounted toUS$0.8 billion.
Asaresult ofthedevelopment ofcurrent andcapital accounts, thebalance ofpayments in1996
ended withaslight deficit. Inthesame yearreserves declined byUS$800 million. Slight decreaseWT/BOP/R/33
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continued inthefirstquarter 1997 (US$40 million). AttheendofMay1997 theofficial reserves of
theCzech National Bank amounted toUS$10 billion equivalent to3½months ofimports ofgoods
andservices. Thisagain demonstrates asharp deterioration oftheexternal balance oftheCzech Republic
bearing inmind thatin1996 thereserves covered approximately 4.4month imports while in1995
itwas6.2month ofimports ofgoods andservices.
Thedeteriorating parameters inthedevelopment oftherealeconomy resulted inweakening
ofthecrown exchange ratewhich began attheendofApril andfurther deepened inMay. TheCzech
National Bank responded byintervening ontheforeign exchange market andbyincreasing interest
ratesonthemoney market. On26May, theCzech National Bank changed theexchange rateregime
which ledtoabandoning ofthefluctuation band, introduction ofamanaged floatsystem andlinking
ofthecrown ´sexchange ratetotheDM. Thisstepwassupported byincreases ofthediscount and
Lombard rates.
Annow, letmecharacterize briefly thesetsofeconomic measures adopted recently bythe
Czech Republic, asaresponse tothepreviously mentioned developments, existing economic imbalances
andstructural problems. TheCzech authorities, therefore, adopted, on16April andon28Mayof
thisyeartwoconsecutive packages ofcorrective economic measures.
Thepolicy mixconsists ofbothshort-term stabilizing andconsolidating programme forthe
economy andamedium- andlong-term programme toimprove theoverall macroeconomic framework.
Theobjectives ofthefirstpartofthemeasures adopted are:balanced budget, diminution of
trade andcurrent account deficits, stability ofthenational currency andcontainment ofinflation.
Inpursuingoftheseobjectives,theGovernmentregardsasessentialtouseitsfiscalandmonetary
policies astheprimary stepsandcomplementary administrative orregulatory interventions asmerely
secondary measures.
Ontherestrictive side,theprincipal components are,inparticular:
- budgetary cutsamounting toCZK 42billion orequivalent of2.5percentofGDP,
affecting wage billinpublic sector, transfers tohouseholds andenterprises,
budget-funded investment, non-investment subsidies aswellaslimitation ofaccess to
deficit financing forlocalauthorities;
- wage restraint instate-controlled enterprises through theexercise oftheownership
rights and,inprivate entrepreneurial sector, through tripartite negotiations withsocial
partners;
- further priceliberalization, asof1July1997, intheareaofenergy, fuelsandapartment
rentsaswellasVATadjustments onfuelsandenergy, witheffect since1January 1998;
- import deposit scheme toplayitsroletorestrict excessive imports.
Longer-term andlasting solutions totheexisting problems maybesecured onlybyadopting
andimplementing measures ofasystemic nature, aiming, inparticular, at:
- acceleration andcompletion ofprivatization ofbanks andenterprises thatremain under
statecontrol;WT/BOP/R/33
Page6
- enhancement oftransparency ofcapital market bymeans oftheestablishment ofan
independentSecuritiesCommissiontosupervisecapitalmarketoperationsandtoenforce
observance ofrespective legalnorms;
- improvement ofeffectiveness ofownership structure byseparating theroleofbanks
asshareholders from theirroleasloanproviders;
- improvement ofentrepreneurial framework byreducing corporate revenue taxfrom
39percentto35percent,bywidening ofthescope forwriting-off ofirrecoverable
"badloans", byintroducing legislative amendments concerning thebankruptcy;
- more active export promotion policy based onextended access toinsurance andcredit
financing services provided bytheCzech Export Bank andbytheExport Guarantee
andInsurance Company, onimproved market access forCzech exports andonthe
establishment oftrade promotion organization -CzechTrade; and,lastbutnotleast,
- combatting economic andfinancial crime andincreasing observance oflaws by,
interalia,establishing ateamconsisting ofdifferent stateadministration bodies and
office tofightcriminality inthebanking sector;
Anintegral partoftheApril package consists inintroduction ofanimport deposit scheme which
isdescribed widely inthedocuments before us.Thisscheme should notbeseenasasubstitute for
on-going structural adjustment efforts. Atthesame time, itshould notberegarded asadeviation from
anopenandtraditionally liberal trade policy oftheCzech Republic.
Thistypeoftradepolicy ismanifested inasmooth andsuccessful implementation oftheWTO
commitments, lowlevel oftariff protection, limited incidence ofnon-tariff measures, commitment
toparticipateinvarioussectoralinitiatives,includingITA,andinvaluablecontributiontothenegotiations
onbasic telecommunications aswellasonfinancial services.
Simultaneously, wefeelcommitted tothenature andpurpose oftrade measures taken for
balance-of-payments reasons. Therefore, themeasure inquestion isofatemporary, price-based and
non-discriminatory nature having theleastdisruptive effect oninternational trade. From theeconomic
point ofview, theimport deposit represents ameasure withlessinflationary impact ondomestic prices
thaninthecaseofother available options.
Mr.Chairman, Iwould liketostress thattheGovernment iscommitted toapply themeasure
foraperiod notexceeding oneyearfrom itsintroduction. However, taking intoaccount therecent
economic development characterized bymonetary exchange ratedevelopment, further fiscal tightening
andwagerestraints, anddepending onfurther development ofthebalance ofpayments, theGovernment
intends toassess theneedoffurther application ofimport deposit scheme notlaterthaninSeptember
ofthisyear.WT/BOP/R/33
Page7
ANNEX II
Statement bytheIMFRepresentative
1. TheCzech Republic hasmade impressive strides ineconomic reform overthepastseven years
within anenvironment ofsocial peace andpolitical stability. Quick progress incontaining inflation
andrebuilding foreign reserves wasfollowed byaresumption ofgrowth in1994; moreover, remarkable
progress hasbeenmade indeveloping market mechanisms andinstitutions. However, macroeconomic
imbalances haveemerged inrecent years thathavetheirrootsinslowenterprise restructuring andweak
corporate governance. Inresponse toawidening current account deficit andturbulence intheforeign
exchangemarket,theauthoritieshaverecentlyannouncedsignificantpolicymeasuresaimedatcontaining
domestic demand andaccelerating structural reform. While themeasures arewelcome, elimination
oftheimbalances willrequire fiscal adjustment beyond thatcurrently envisaged, increased efforts to
reininwage growth, andspeedy implementation oftheannounced plans forstructural reform.
2. Recenteconomicdevelopmentshavebeencharacterizedbygrowingmacroeconomicimbalances.
Specifically, thecurrent account deficit widened by5½percentage points to8½percentofGDP in
1996, andfurther to10percentofGDP intheyeartoMarch 1997, reflecting strong import demand
andsluggish exports. Rapid wage growth (by6-8percentinrealterms inrecent years) contributed
tobooming consumer demand, especially forimported goods andservices, andtoaworsening of
enterprise profitability andexternal costcompetitiveness. Fixed investment, mainly ininfrastructure
andservices, rosestrongly in1995-96 butstagnated, yearonyear, inearly 1997. Adecline inannual
inflation (consumer prices) from 8-10percentinrecent years to6¼percentinMay1997 reflects
mainlytheeffectsofthe(subsequentlyreversed)korunaappreciationandapostponementofadministered
price increases —theunderlying ratehasprobably remained ataround 10percent.RealGDP growth
decelerated slightly toaround 4percentin1996, andfurther to1½percent, yearonyear, in1997
Q1.Meanwhile, theunemployment rateedged upto4percentinMay1997.
3. Themacroeconomic imbalances eventually culminated indisorderly conditions intheforeign
exchange market inlateMay1997. After appreciating toalmost 6percentabove itscentral parity
inlateFebruary 1997 (from nearparity inmid-1996) inresponse totighter monetary conditions, the
exchange rateofthekoruna came under downward pressures asthemarket became increasingly aware
oftheweak fundamentals. OnMay27,theCzech National Bank (CNB) wasforced toabandon the
fluctuation margins infavor ofa“managed float”,aftermassive speculative pressures hadrequired
unsustainable foreign exchange intervention andsteepincreases ininterbank interest rates.1Thekoruna
immediately depreciated toabout 12percentbelow its(former) central parity, buthassubsequently
recovered significantly andinterest rateshavedeclined from immediate post-crisis levels.
4. These economic circumstances reflect structural rigidities intheCzech economy andthe
limitations oftheprevailing policy mix:
- Weakcorporategovernancehasmadewageincreasesseeminglyimpervioustomonetary
conditions andfaroutoflinewithenterprises ’financial circumstances. Thisreflects
inpartdiffuse share ownership andresidual stateshareholdings, which havepreserved
forthestateacontrolling interest inmajor enterprises andbanks. Wage increases in
1Since 1991, thecentral ratehadbeen pegged toabasket ofhardcurrencies (theDeutshe mark andthe
U.S. dollar since 1993). TheCNB hadwidened theexchange rateband from ±½percentto±7½ percent
around thecentral rateatend-February 1996.WT/BOP/R/33
Page8
state-controlled enterprises (and,untilrecently, inthecentral administration) havebeen
among thehighest intheeconomy.
- Supply responsiveness torapidly growing demand hasbeenverylimited. Thisisthe
result ofcapacity constraints (which areinpartattributable toaslowpaceofenterprise
restructuring andevidenced bytherelatively lowunemployment rate), andofa
deterioration intheexternal costcompetitiveness oftheCzech industry.
- Fiscal policy, though generally prudent, hasnotbeenadequately supportive ofmonetary
policy: atighter policy fiscal stance would havecontained thecurrent account deficit
without putting upward pressures oninterest ratesandreducing enterprise investment.
Thegeneral government registered adeficit of1¼percentofGDP in1996,
representing asmall improvement from theprevious year. Thefiscal deficit grew to
anestimated 2percentof(semiannual) GDPinthefirsthalfof1997, reflecting alarge
revenue shortfall thatwasdueonlypartly tolower-than-expected economic activity.
- The12-month growth rateofbroad money declined from almost 20percentatend-
1995, to9percentatend-1996 and7½percentatend-May 1997. Therapid decline
inbroad money growth mayoverstate somewhat thecurrent tightstance ofmonetary
policy astheimplied riseinbroad money velocity reflected inpartarunning down
ofexcess liquidity which hadreached apeakatend-1995 owing toexceptionally large
capital inflows inthelatter halfof1995.
5. OnApril 16andMay28ofthisyear, theauthorities announced asetofpolicy measures to
address theeconomic imbalances:
- Onthefiscal front, theauthorities adopted expenditure cutsof2½percentofGDP,
affecting thecentral government wage bill(which istorisebyonly4percentin1997),
transfers tohouseholds (family benefits andpensions) andenterprises, andinvestment
spending intheStateBudget. TheFund staffexpects thesemeasures tolimitthegeneral
government deficit to¾percentofGDP in1997. For1998, theauthorities have
announced plans forasmall State Budget surplus, tobeachieved inpartthrough a
freeze ofthenominal wage bill;thistarget isprobably consistent withabalanced
position forthegeneral government.
- Onthewage front, theauthorities announced theirintention tocontain nominal wage
growth instate-controlled enterprises inlinewithproductivity changes, andtoseek
understandings withthesocial partners onadeceleration ofwage growth intheprivate
sector.
- Onthestructural front, theauthorities haveundertaken toaccelerate privatization of
banks andenterprises thatremain under state control; toenhance capital market
transparency, including theestablishment ofanindependent Securities Commission,
soastoimprove investor confidence intheCzech securities market; andtofurther
strengthen thefinancial position ofbanks through intensive supervision andcontinued
progress inrestructuring small banks under stress.
6. IntheFund’sview, therecently adopted measures should helpcontain theeconomic imbalances
andaddress some ofthestructural problems. Thefiscal measures would holdthegeneral government
balance tothelevelinitially budgeted (adeficit ofabout ¾percentofGDP) in1997, compared with
adeficit of1¼percentofGDPin1996. Onthewage front, while thecontainment ofthegovernmentWT/BOP/R/33
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wage billiswelcome, nomeasures havebeenimplemented sofartocontain wage growth outside the
budget sphere inlinewiththeofficial objectives. Inthecircumstances, theFund staffhasadvised the
authorities toadopt abolder strategy thataimsatamore rapid reduction ofthecurrent account deficit,
andinvolves stronger fiscal andwage restraint thaniscurrently envisaged. TheFund isencouraged
bytheauthorities ’intention toconsider suchastrategy inthefuture, butnotes theirconcern thatadoption
offurther restrictive measures inthenearfuture would besocially andpolitically difficult, especially
aftertworounds ofsizable expenditure cutsinrecent months.
7. Theexternaloutlookisforamodestnarrowingoftheexternalimbalancein1997-98.Specifically,
theannounced policy measures —inconjunction withaweakening ofinvestment activity andthe
depreciation ofthekoruna (toanassumed average level intheremainder of1997 andin1998 of
10percentbelow theoldcentral parity) —arelikely tobeconsistent withcurrent account deficits of
7½-8½ percentofGDPin1997and1998. Provided thatconfidence inthecurrency isstrengthened,
consistent withtherecent recovery ofthekoruna intheforeign exchange market, these deficits should
befinancable through acombination ofdebtandnondebt creating capital inflows and,in1997, a
drawdown ofreserves. Nondebt capital inflows (FDI andportfolio equity investment) would likely
amount totheequivalent of2percentofGDPin1997—andperhaps twice thatamount in1998owing
toplanned privatization salesandthepositive response ofportfolio inflows tocapital market reforms.
Given theCzech Republic ’sstillrelatively lownetexternal indebtedness andexcellent credit rating,
medium- andlong-term borrowing byenterprises andlocal authorities islikely toamount toabout
4percentofGDP in1997-98, inlinewithpastyears. Adrawdown offoreign reserves (byUS$1.5
billion or3percentofGDP) during 1997should finance theremainder ofthecurrent account deficit
andanetshort-term capital outflow —thespeculative outflow inthefirsthalf-year isexpected tobe
onlypartly reversed intheremainder oftheyear. Asaresult, theCNB’sofficial reserves —which
amountedtoaboutUS$10billion,equivalentto3½monthsofimportsofgoodsandservices,atend-May,
1997—areexpected toremain atasatisfactory levelinrelation toimports andtoshort-term debt(US$6
billion atend-1996). Total external debtreached theequivalent of40percentofGDP atend-1996
(about US$21 billion), andisexpected torisetoabout 44percentofGDP in1997-98, reflecting in
partvaluation effects.
8. TheCzech Republic generally maintains aliberal tradeandpayments system. Import andexport
licences arerequired onlyforafewitems, andtheaverage import tariff isrelatively low(8percent
onMFN basis). TheCzech Republic accepted theobligations ofArticle VIIIoftheIMF’sArticles
ofAgreement onOctober 1,1995, andbecame amember oftheOECD inNovember 1995. TheCzech
Republic alsomaintains acustoms union agreement withtheSlovak Republic, anAssociation Agreement
withtheEU,andfreetrade agreements withVisegrad andEFTA countries.
9. OnApril 21,1997, inresponse tothecontinued deterioration intheexternal accounts, the
Czechauthoritiesintroducedanimportdepositscheme,whichisadministeredthroughtheimportsystem,
applies toconsumer goods andfoodstuffs (about 30percentoftotalimports), andrequires asix-month
noninterest-bearing deposit equal to20percentofimport value. Itwasoriginally intended toremain
ineffect forabout ayear. According toIMFstaffestimates, thescheme islikely toraisethecostof
affected imports byabout 1½-2 percentontheassumption thatthedeposited amount willbeborrowed
frombanks; however, thisdoesnottakeintoaccount liquidity constraints andadministrative coststhat
especially affect small importers. TheFund’sviewisthatthismeasure —much likeother administrative
measures toreduce imports —isoverly complex, hasdistortionary effects andisnotasubstitute for
macroeconomic policy action tocorrect theeconomic fundamentals. Rather, macroeconomic policy
corrections should beintroduced assoonaspossible, soastofacilitate theearlyremoval oftheimport
deposit scheme.