The Board of Investments (BoI) is to allow textile exporters to reduce export commitments to give them time to adjust to new rules laid out by the Garments and Textile Export Board (GTEB).

The BoI, however, stressed that this would be done only on a case-to-case basis.

BoI rules state that local firms that seek incentives should be able to export at least 50 per cent of its goods. The requirement is 70 per cent for foreign companies.

A ranking BoI official said textile exporters are having difficulty complying with their export commitments especially after the GTEB issued its new quota rules early this year.

"These textile exporters were caught up by the new policy of GTEB since many of them are dependent on quota," the official said.

Enhancements were made in the quota allocation system in an effort to prepare the garments and textile industry for a quota-free market in 2005 as mandated by the World Trade Organization (WTO).

The garments board was aiming at simplifying the quota allocation process to ready the market for its removal.

The official, however, said only those firms that have good track records prior to the new GTEB rules will be allowed to lessen export requirements.

The official added that the company would have to submit an export build-up schedule that should indicate when the firm would be able to make up for the shortfall.