Customs holds Diageo and Pernod Ricard Scotch at ports, seeking 150% duty instead of the 75% in the India–UK deal
Officials say bulk Scotch is a 'compound alcoholic preparation', not whisky, so the trade deal's lower duty should not apply.
- Containers held: 40+ each for Diageo and Pernod
- Bulk share of UK Scotch imports: ~80%
- Deal duty: 75%
The dispute
The India–UK trade deal, in force since July, cut the duty on Scotch whisky to 75%. Customs officers now argue that bulk Scotch, shipped in large containers and bottled in India, is a concentrate and should pay the full 150%. Pernod Ricard (Chivas, Royal Stag) and Diageo (Johnnie Walker) each have more than 40 containers held at Indian ports, and Bacardi has five.
Why it matters
Bulk shipments make up about 80% of the Scotch India imports from the UK by volume. The commerce ministry told the industry on 2 November that it would honour the deal, and the finance and commerce ministries are reportedly working on a fix. If it drags on, prices of popular whisky brands could go up.
