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Government assures Scotch importers of FTA benefits

By · Via Times of India · Published by Everything Blog

In short

Commerce Secretary Rajesh Agrawal met with the Confederation of Indian Alcoholic Beverage Companies to address customs disputes regarding Scotch shipments. The Directorate of Revenue Intelligence has questioned whether bulk containers exceeding two litres should fall under food preparations rather than standard spirits headings. Industry groups warned that shifting these tariff codes would effectively nullify the recent pact's duty relief. Government departments will coordinate in the coming weeks to finalize classification rules and ensure business continuity.

Key points

  • The commerce and revenue departments will hold joint discussions to settle the tariff cla…: The commerce and revenue departments will hold joint discussions to settle the tariff classification issues amicably.
  • Reclassifying bulk Scotch imports under food preparations would cancel out negotiated tra…: Reclassifying bulk Scotch imports under food preparations would cancel out negotiated trade agreement concessions for domestic bottlers.
  • Industry representatives secured official assurances that agreed tariff reductions will b…: Industry representatives secured official assurances that agreed tariff reductions will be protected to maintain domestic business continuity.

Sources checked by our analysis pipeline: 1

NEW DELHI: Amid problems faced by importers of Scotch in bulk form, commerce secretary Rajesh Agrawal on Monday assured industry representatives that India will stand by its commitment under the trade agreement with the UK and ensure that the duty concession is not affected.

At the heart of the controversy is the import of bulk Scotch, which accounts for 80% of the whisky shipments from the UK. Under the trade agreement, effective July 15, customs duty has been halved to 75% under the FTA, which is to be reduced to 40% in 10 years. Bulk imports are crucial for blending whisky in India and bottling.

The Directorate of Revenue Intelligence has, however, been questioning the product classification of bulk whisky with the duty concession available to 220830 tariff line provided they are imported in containers bigger than two litres.

India assures Scotch whisky industry that UK trade deal duty concessions will remain intact amid bulk import classification dispute

Companies have been importing bulk Scotch under three HSN or product codes, 22083092, 22083093 and 22083099. DRI is examining if imports under…

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