The commerce ministry stepped in after domestic tax officials questioned the lower tariff eligibility for bulk Scotch shipments and searched multiple corporate offices. Commerce secretary Rajesh Agrawal clarified that the concession cutting the previous 150 percent duty will remain intact. This decision stabilizes operations for distillers that blend foreign imports into Indian-Made Foreign Liquor. The resolution also addresses diplomatic concerns raised by the British and Scottish governments regarding bilateral trade deal terms.
Key points
Bulk Scotch whisky imports will officially retain the reduced 75 percent duty despite cha…: Bulk Scotch whisky imports will officially retain the reduced 75 percent duty despite challenges from tax authorities.
Major producers like Diageo, Pernod Ricard, Radico Khaitan, and Allied Blenders and Disti…: Major producers like Diageo, Pernod Ricard, Radico Khaitan, and Allied Blenders and Distillers avoid blending supply chain disruptions.
Intervention by the commerce ministry resolves a critical trade friction point raised by…: Intervention by the commerce ministry resolves a critical trade friction point raised by British and Scottish officials.
Sources checked by our analysis pipeline: 1
The government has moved to resolve a dispute over Scotch whisky imports under the UK trade pact, assuring liquor companies that bulk shipments qualify for the reduced 75 percent import duty after tax officials questioned their eligibility for the concession.
According to a Reuters report citing six people with direct knowledge of the matter, commerce ministry officials gave the assurance during a closed-door meeting with liquor industry executives on Monday, saying New Delhi would honour the trade agreement in letter and spirit.
One government source said, "We are potentially moving towards a resolution. Bulk Scotch whisky imports are indeed part of concessions under the trade deal."
A second source said commerce secretary Rajesh Agrawal told attendees that necessary steps were being taken to address the issue "so that the duty concession on bulk Scotch whisky is not impaired".
The dispute centres on the agreement to reduce import duty on Scotch whisky in India from 150 per cent to 75 percent under the India-UK Comprehensive Economic and Trade Agreement (CETA), which came into effect in July 2026.
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