Bulk Scotch whisky imports held up at Indian ports: Commerce, Finance ministries meet to resolve dispute over duties

The Commerce and Finance ministries in India convened a meeting on Wednesday to address the issue of a proposed 150% customs duty on bulk Scotch whisky imports by Pernod Ricard and Diageo. The dispute stems from the classification of imported Scotch whisky as alcoholic beverage concentrate rather than finished whisky, which triggers a dispute over the applicable HS code and customs duty.

The issue has been described as a technical complication in the implementation of the India-UK Free Trade Agreement (FTA), which was implemented in July 2026. The classification of the products as alcoholic beverage concentrate could alter the duty calculation and raise questions about the accuracy of the original declarations. The DRI maintains that the imported concentrate has a higher alcohol strength and is diluted later at a domestic facility, which justifies the higher duty.

Industry representatives have objected to the memorandum issued by the Directorate of Revenue Intelligence (DRI), which classified imported Scotch whisky in this manner. The development comes after representatives of the International Spirits and Wine Association of India (ISWAI) and the Confederation of Indian Alcoholic Beverage Companies (CIABC) met Commerce Secretary Rajesh Agarwal on November 2 and raised concerns over the difference in tariff rates.

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