Indian customs authorities are holding dozens of bulk Scotch whisky containers imported by Pernod Ricard and Diageo at ports while they dispute how the India-UK free trade agreement applies to the shipments. Multiple outlets say customs officials are seeking a 150% import duty, arguing over whether the imported goods are classified as concentrates subject to the higher rate.
The disagreement is framed as a classification issue under the trade deal that took effect in July. Reportedly, customs investigators and internal revenue documentation distinguish between bulk concentrates and finished Scotch whisky, with the companies maintaining that the preferential 75% tariff should apply. Outlets note that India’s Finance and Commerce ministries are discussing a resolution, after earlier assurances from the Commerce Ministry.
Coverage also points to potential supply-chain impacts for India’s alcoholic beverages industry, which uses imported bulk Scotch for local production. Some reports add context on the scale of bulk imports and mention projections for increased Scotch exports under the agreement, while others focus more narrowly on the port delays and companies involved.
