Reservation can’t ensure purchase

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: your first query, the answer is yes. The customs notification 21/2002, sr. no. 22 allows nil rate of duty subject to conditions. Semi-processed, half- cut, broken diamonds can be imported against Gems and Jewellery Replenishment authorisation at nil rate of duty Appendix 12 B clarifies your second query on replenishment entitlements.

The Board of Approval is part of the foreign trade policy and powers there under. Their action/ decisions are as good as the policy provisions.

Successive FMs promised to phase out the Central Sales Tax. What is a realistic target? Do you see movement on the GST, proposed by the Kelkar Committee. We are in the field of logistics and a decision on CST is crucial.

Mischelle, Rolling Stones Pvt. Ltd, Mumbai through email

The empowered committee of state finance ministers on Vat is considering a four-year phase out (as per their meeting in March ’06). The phase-out plan is gradual: first to 3%, then 2% and 1% and a final phase-out by 2009. The states, however, are yet to agree on a compensation formula for loss of revenue.

With regard to GST, the target set is 2010. In any case, CST has to be phased out before GST.