Overview
- The India‑UK free trade agreement that took effect on July 15, 2026, halved the duty on eligible Scotch from 150% to 75% for qualifying imports.
- A confidential Directorate of Revenue Intelligence memorandum dated November 4 ordered customs to continue applying the 150% duty to bulk shipments it regards as concentrates rather than finished whisky.
- Customs have held multiple containers at Indian ports, with Pernod Ricard and Diageo reported to have more than 40 containers each and Bacardi five while importers resist paying the higher duty.
- Commerce and Finance ministry officials have met and Commerce Secretary Rajesh Agrawal said the Department of Revenue is engaged with stakeholders and expects a resolution in the next few days.
- Because about 80% of Scotch imports by volume arrive in bulk for blending and bottling, the classification dispute could disrupt supplies to Indian bottlers, affect government revenue, and test how the FTA is enforced in practice.