Over 80 Containers of Scotch Stuck at Indian Ports in Duty Row Under India–UK Trade Deal
Customs investigators say bulk Scotch should pay 150% duty, not the 75% FTA rate; Pernod Ricard, Diageo and Bacardi shipments are held up.
More than 80 containers of Scotch whisky from the UK are waiting for clearance at Indian ports because of a dispute over how much import duty they should pay under the India–UK free trade agreement, ABP Live reported.
Whose shipments are held
According to the report, Pernod Ricard and Diageo each have over 40 containers awaiting clearance, while Bacardi has five.
The duty dispute
Under the India–UK FTA, in force since 15 July 2026, the import duty on certain Scotch whisky was halved from 150% to 75%. Customs officials and the companies now disagree on which kinds of Scotch qualify for the lower rate.
Scotch reaches India in two forms: bottled and ready to drink, or in bulk for further processing here. Bulk Scotch arrives at around 62–66% alcohol strength, against about 42–46% for the bottled product, and is diluted and blended in India.
The Directorate of Revenue Intelligence (DRI) argues that bulk Scotch should be classified as an alcoholic beverage concentrate rather than finished liquor, so the FTA concession should apply only to bottled Scotch and bulk imports should pay 150%. The companies say the 75% rate under the trade deal should apply to their imports.
Why it matters for supply
The report said about 80% of the Scotch that India imports from the UK comes in bulk and goes into Indian-made foreign liquor (IMFL) brands. If clearances stay stuck, makers could run short of this input, and supply of some brands could be affected. There is no official word yet of a shortage.
What the government said
Officials from the commerce and finance ministries have discussed the issue. On 13 November, Foreign Trade Secretary Rajesh Agrawal said India would honour the duty concessions it agreed to under the trade deal. The finance ministry has also held talks with the parties involved.
Featured image: Jura Distillery casks at warehouse – panoramio by Bjarne Henning Kvaal…, CC BY-SA 3.0, via Wikimedia Commons.
Sources
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