India holds Pernod, Diageo Scotch shipments as investigators seek higher tariff
DEO•Indian customs is holding dozens of containers of bulk Scotch imported by Pernod Ricard and Diageo as investigators seek a 150% tariff, rather than the 75% rate the companies say applies under the India-UK trade pact. Each company has more than 40 containers held at ports, according to industry sources.
1. Tariff dispute
Indian customs investigators say bulk Scotch concentrates are not eligible for the India-UK trade pact’s 75% duty and have instructed customs officials to apply a 150% tariff. A November 4 finance ministry memo called the imports compound preparations for further manufacturing, rather than finished whisky.
2. Shipments held
Customs has held dozens of containers belonging to Pernod Ricard and Diageo, which are unwilling to pay the higher duty, according to people familiar with the matter. Two industry sources said each company has more than 40 containers stuck at ports; Bacardi has five.
3. Industry exposure
About 80% of Scotch imported from Britain arrives in bulk. Scotch exports to India totalled $335 million in 2024, and the Scotch Whisky Association has forecast the trade deal could increase that figure by $1.34 billion over five years.
