India’s Scotch whisky row as firms seek 75% duty instead of 150%
Major spirits companies Diageo and Pernod Ricard are in a dispute with Indian authorities over import duties for Scotch whisky concentrates. The companies argue they should qualify for a reduced 75% tariff under a trade deal, while investigators claim they owe the full 150% rate.
Why it matters
The case highlights the complexities of international trade agreements and the potential impact of customs enforcement on global corporate operations.
India’s investigation into Scotch whisky imports by Diageo and Pernod Ricard has sparked a dispute over the India–UK trade deal, which cut import duties on eligible Scotch whisky from 150 percent to 75 percent, with a further reduction to 40 percent planned over the next 10 years.According to Reuters, the International Spirits and Wines Association of India (ISWAI), which represents the two companies, has written to the commerce minister seeking urgent intervention, warning that India’s interpretation of customs rules could prevent bulk Scotch concentrates imported from Britain from benefiting from the reduced duty.The dispute centres on whether bulk Scotch concentrates imported from Britain qualify for the lower tariff under the trade agreement.
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