# India probes Diageo and Pernod over Scotch tariff classification

> India investigates if Diageo and Pernod wrongly claimed lower tariffs on bulk Scotch concentrates under UK trade deal.
- Title: India probes Diageo and Pernod over Scotch tariff…
- Summary: India investigates if Diageo and Pernod wrongly claimed lower tariffs on bulk Scotch concentrates under UK trade deal. India's authorities say Diageo and…
- Keywords: india, diageo, pernod ricard, scotch whisky, tariff, uk trade deal, import duty, whisky classification, news, probes, Pernod, Scotch
- Source: mint — https://livemint.com/companies/news/why-diageo-and-pernod-are-under-probe-india-says-bulk-scotch-may-not-qualify-for-new-lower-tariff-uk-trade-deal-11792771096199.html
- Author: Aachal Maniyar
- Published: 2026-10-23T16:29:48+00:00
- Read time: 1 min
- Topics: india, diageo, pernod ricard, scotch whisky, tariff, uk trade deal, import duty, whisky classification, news
## India probes Diageo and Pernod
Indian investigators are examining whether Diageo and Pernod Ricard wrongly claimed a lower import duty on bulk Scotch concentrates after the India-UK free trade agreement took effect.
## Authorities search firms
The Directorate of Revenue Intelligence searched both companies' offices this month and questioned executives as part of the probe.
## Tariff classification issue
Authorities privately told companies the reduced 75% tariff does not cover bulk Scotch concentrates which must pay full 150% duty.
## How companies import whisky
Companies import bulk Scotch concentrates from Britain to blend into Indian brands like Royal Stag and Blenders Pride.
## Trade deal background
India cut whisky import tax from 150% to 75% immediately under the pact with the UK, which took effect on July 15.
## ISWAI concerns
The Indian Spirits and Wines Association warned the classification issue risks undermining the trade deal's market access benefits.
## Market impact
India's $65 billion alcohol industry faces uncertainty as Britain supplies 75% of imported spirits.
## Key takeaway

India's authorities say Diageo and Pernod may not qualify for reduced 75% whisky tariffs under India-UK trade agreement.