India Confirms 75% Duty on UK Scotch Imports
India has reaffirmed its commitment to implementing reduced import duties on Scotch whisky under its free trade agreement with the United Kingdom. Commerce Secretary Rajesh Agrawal said on Friday, November 13, that the government would honour the agreed tariff concessions following a customs dispute involving shipments of bulk Scotch whisky held at Indian ports.
India-UK Trade Deal Cuts Scotch Whisky Duty to 75%
The India-UK trade agreement, which came into effect on July 15, 2026, reduced import duties on eligible Scotch whisky from 150% to 75%.
The agreement also provides for a gradual reduction in tariffs to 40% over ten years, improving access for British whisky manufacturers to the Indian market.
However, disagreements emerged over whether bulk Scotch imported for blending and bottling in India qualified for the reduced tariff.
Customs Dispute Affects Diageo and Pernod Ricard Shipments
Indian customs authorities detained dozens of containers carrying bulk Scotch whisky imported by major companies, including Diageo and Pernod Ricard.
Investigators sought to impose the earlier 150% duty, arguing that certain bulk whisky products might not qualify for concessions available under the trade agreement.
The disagreement centres on customs classification, particularly whether the imported products fall under tariff headings covering whisky or other food preparations.
Government Assures Resolution of Scotch Import Dispute
Agrawal confirmed that the Finance Ministry’s Department of Revenue was consulting affected stakeholders to address the classification dispute.
He maintained that India would respect its commitments under the bilateral agreement and indicated that the issue could be resolved within days.
The government also clarified that preferential duties would apply to products covered by the negotiated tariff provisions.
The dispute represents an early test of the implementation of the India-UK trade agreement, particularly its provisions governing imported alcoholic beverages.
