Customs hold Pernod Ricard, Diageo Scotch shipments over tariff dispute
Customs investigators say bulk Scotch concentrates do not qualify for the reduced 75% duty under the pact and should instead attract a 150% tariff
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Published: Nov 11, 2026 2:45 PM | 1 min read
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- Indian customs authorities have detained dozens of containers of bulk Scotch whisky imported by Pernod Ricard and Diageo due to a dispute over import duties.
- Customs investigators argue that bulk Scotch concentrates do not qualify for the reduced 75% duty under the India-UK trade pact, which they assert applies only to finished, bottled whisky.
- Despite assurances from the commerce ministry on November 2 regarding the trade pact, a finance ministry memo dated November 4 instructed customs to continue imposing a 150% tariff.
- Pernod Ricard and Diageo each have over 40 containers held at Indian ports, while Bacardi has five, potentially impacting supplies of Scotch whisky used in Indian-made foreign liquor.
As per latest media reports, Indian customs authorities have held dozens of containers of bulk Scotch whisky imported by Pernod Ricard and Diageo over a dispute on import duties, despite the companies being assured of lower tariffs under the India-UK trade pact.
Customs investigators say bulk Scotch concentrates do not qualify for the reduced 75% duty under the pact and should instead attract a 150% tariff. According to them, the lower rate applies only to finished, bottled whisky.
The commerce ministry had assured liquor companies on November 2 that the government would honour the trade pact and work towards resolving the issue. However, a finance ministry memo dated November 4 asked customs officials to continue applying the 150% duty.
Pernod Ricard and Diageo have more than 40 containers each held at Indian ports, while Bacardi has five containers held up.
The delay could affect supplies, as most Scotch whisky imported from the UK comes in bulk and is used to make Indian-made foreign liquor.
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