CONNECT WITH US
eCommerce

eCommerce

India holds Pernod, Diageo Scotch shipments as investigators seek 150 pc tariff

ET Retail – Ecommerce logo

Published on

Add as a preferred source on Google
India holds Pernod, Diageo Scotch shipments as investigators seek 150 pc tariff

India holds Pernod, Diageo Scotch shipments as investigators seek 150 pc tariff

Indian customs has detained dozens of containers of bulk Scotch imported by Pernod Ricard and Diageo, seeking a 150% tariff instead of the reduced 75% duty under the India-UK trade pact. The dispute persists despite assurances from the commerce ministry, raising concerns over supply disruptions and the trade deal's implementation.

Share Icon Copy Link Share on Whatsapp Share on Linkedin Share on X Share on Telegram Share on Facebook

New Delhi: Indian customs is holding dozens of containers of bulk Scotch imported by Pernod Ricard and Diageo as investigators press for a 150% tariff, even though the companies rely on a New Delhi assurance of lower duties under the India-UK trade pact, according to four people with knowledge of the matter and a confidential government memo.

In the first major dispute linked to the trade deal, which took effect in July, customs investigators have ordered the higher tariff on the shipments arguing that bulk Scotch concentrates used to make whisky brands are not eligible for the pact's reduced 75% duty.

The investigators say the lower rate applies only to finished products such as bottled, ready-to-drink Scotch.

Following industry lobbying, India 's commerce ministry assured senior executives on November 2 that it would honour the pact and resolve the dispute as soon as possible, leading liquor companies to believe the lower tariff would be applied.

However, a memo by the finance ministry's Directorate of Revenue Intelligence dated November 4, reviewed by Reuters, asks customs commissioners across India to continue to take a different view.


Source link
Related Topics:eCommerce

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We TheMorningPulse.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It's possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.