From mint · Aachal Maniyar · · 1m 20s
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.
In brief
India investigates if Diageo and Pernod wrongly claimed lower tariffs on bulk Scotch concentrates under UK trade deal. India's authorities say Diageo and Pernod may not qualify for reduced 75% whisky tariffs under India-UK trade agreement. Originally reported by mint.
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.
The big picture
India's authorities say Diageo and Pernod may not qualify for reduced 75% whisky tariffs under India-UK trade agreement.
