New Delhi, Nov 13 (PTI) India will honour the duty concessions offered on bulk Scotch whisky imports from the UK under its trade deal, and the issue will be resolved in the next few days, Commerce Secretary Rajesh Agrawal said on Friday.
The Department of Revenue in the finance ministry is engaged with the stakeholders on the issue, he said.
Ambiguity has arisen as to whether bulk Scotch should be classified under Chapter 22, Heading 2208, which specifically covers spirits and whisky, or Heading 2106, relating to food preparations not elsewhere specified or included.
The India-UK trade agreement, implemented in July this year, provides lower customs duties on whisky, including bulk Scotch whisky imported in containers of more than two litres. The duty has been reduced from 150 per cent to 75 per cent when the agreement came into force on July 15, 2026, and will be further cut to 40 per cent over 10 years.
Replying to reporters, the Commerce Secretary said there are certain technical issues which are involved in the import of Scotch whisky.
"I think Department of Revenue is very closely engaged with the stakeholders, and they are trying to resolve it. It is largely a classification issue as the duties in three potential lines where the Scotch can come in are very different... But I am sure it will be resolved very soon,' Agrawal said.
Bulk Scotch imports, if classified under a different customs code, such as Heading 2106 (for food/alcoholic preparations), would require importers to pay the full 150 per cent duty.
The industry maintains that bulk Scotch remains whisky, whether imported in retail bottles or larger containers for subsequent blending and bottling.
"That concession which we have given will be respected...we are very hopeful it will be resolved in the next few days. There is nothing much to worry about," said the Secretary while interacting virtually from Kolkata.
As per industry estimates, the issue has implications as about 80 per cent of Scotch whisky imports from Scotland by volume comprise bulk shipments.
Indian companies use these imports for blending and bottling operations, including producing Indian-made whiskies using proprietary recipes.
The alcoholic beverage industry is seeking clarity on how bulk Scotch whisky imports are classified and whether they qualify for duty concessions under the India-UK trade pact.
It wants the government to confirm that bulk Scotch imported for blending and bottling in India qualifies under the tariff commitments of the Comprehensive Economic and Trade Agreement (CETA), subject to applicable product and origin requirements.
