Business · Trade · 11 hrs ago
India says bulk Scotch imports are covered by lower trade-pact tariffs
India has assured liquor companies it will honour the UK trade pact and resolve a dispute over Scotch whisky tariffs.
The issue involves bulk Scotch imported into India and bottled locally, as well as companies including Pernod and Diageo.
Under the pact, the duty on eligible Scotch fell from 150% to 75% in July, with further reductions planned over 10 years.
Industry groups argue bulk whisky should qualify because it remains Scotch, but tax authorities have questioned whether it belongs in a category charged the higher rate.
The classification could determine whether bulk imports get the tariff cut, affecting costs for companies that bottle or blend whisky in India.
Lower duties have already begun to support margins at some liquor makers, although the size of the benefit remains uncertain.
The commerce ministry is expected to discuss the dispute with industry representatives, and the companies have sought a legal opinion.
India's government said bulk Scotch whisky imports are covered by lower tariffs under the India-UK trade pact.
The assurance followed a dispute over whether bulk imports qualify for the tariff cut from 150% to 75%.
The pact provides for eligible Scotch tariffs to fall gradually to 40% over 10 years.
The industry argues that Scotch should qualify for the concession whether shipped in bulk or bottled.
The government said it would resolve the classification ambiguity, while the extent of the benefit for companies remains uncertain.
- Who
- India's government and liquor industry representatives, including ISWAI and CIABC.
- What
- The government said it would honour the trade pact's lower tariffs for bulk Scotch imports and resolve a customs-classification dispute.
- When
- Monday, 2 November 2026.
- Where
- India; the commerce secretary met industry representatives. The specific meeting location is not stated.
- Why
- Industry representatives sought clarity on whether bulk Scotch imports qualify for the tariff concession.
Indian government
Domestic liquor industry
Tariff eligibility
Indian government
The government said bulk Scotch imports are included in the trade pact's concessions.
Domestic liquor industry
The industry says bulk Scotch should qualify because it remains Scotch whisky, regardless of how it is shipped.
Customs classification
Indian government
Authorities have been examining whether certain bulk imports should receive a different classification with a higher duty.
Domestic liquor industry
Industry representatives have sought clarity, arguing that a higher duty would limit the pact's benefits.
The India-UK free trade agreement came into effect.
India began investigating major companies and said bulk Scotch imports were not eligible for the tariff reduction, according to Business Standard.
The commerce secretary met industry representatives, and the government assured liquor makers it would honour the trade pact.
- Tariff before pact
- 150%
- Tariff after pact
- 75% for eligible Scotch whisky
- Long-term tariff
- 40% over 10 years
- Bulk imports
- About 80% of Scotch whisky imported into India arrives in bulk, according to Amar Sinha
- Industry value
- $65 billion, according to Business Standard
2 sources
What people are saying
Bulk Scotch whisky imports are indeed part of concessions under the trade deal
The ministry's commitment to honour FTA obligations, while safeguarding the interests of domestic alcobev industry, gives the sector the confidence it needs.
Nearly 80% of Scotch whisky imported into India arrives in bulk and is bottled locally, while only about 20% comes in finished bottles.