India Assures Lower Tariff For Bulk Scotch Amid UK Trade Pact Dispute
What Happened
Indian commerce ministry officials have assured liquor companies that the government intends to honour the India-UK trade pact, with officials saying bulk Scotch imports are covered by the tariff concessions. The assurance follows a dispute after tax investigators argued that bulk Scotch did not qualify for the reduced 75% tariff, down from 150%. The issue is significant because around 80% of Scotch shipped to India arrives in bulk, and companies including Diageo, Pernod Ricard, Radico Khaitan and Allied Blenders and Distillers have been affected by the dispute.
Key Takeaways
India appears to be moving towards resolving the first significant dispute under the new UK trade pact by ensuring the agreed tariff benefit is not impaired for bulk Scotch imports.