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'Will be resolved very soon': India on Scotch imports from UK amid bulk shipments held at ports
Sentiment: NeutralHigh Priority
What Happened?
India's commerce secretary expressed optimism about resolving a dispute over bulk Scotch whisky imports held at ports, which concerns customs duties. The issue revolves around whether these imports qualify for a reduced 75% duty or a higher 150% duty.
Key points
- The dispute involves whether bulk Scotch whisky imports should be taxed at 75% or 150%.
- Commerce Secretary Rajesh Agrawal stated that the Department of Revenue is addressing the classification issue.
- Customs officials argue that the 75% duty applies only to finished products, not bulk concentrates.
- A memo from the Directorate of Revenue Intelligence directed customs to apply the higher duty.
- Around 80% of Scotch whisky imports from Britain arrive in bulk for local manufacturing.
- Affected companies include Pernod Ricard, Diageo, and Bacardi, with significant shipments held at ports.
Key insights
- A swift resolution may restore normal supply chains for affected liquor companies.
- The outcome could influence future trade negotiations between India and the UK.
- Misclassification of imports may lead to significant revenue losses for the government.
Why it matters
The resolution of this dispute could impact the Scotch whisky market in India and the benefits of the India-UK trade agreement.
Tags
Entities
Rajesh Agrawal· PersonPernod Ricard India· CompanyDiageo· CompanyRadico Khaitan· CompanyAllied Blenders and Distillers· CompanyInternational Spirits and Wine Association of India· OrganizationConfederation of Indian Alcoholic Beverage Companies· OrganizationDirectorate of Revenue Intelligence· OrganizationScotch Whisky Association· OrganizationIndia· CountryUK· Country
Source
Times of India
