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 press for a 150% tariff, despite a trade pact rate of 75%. Each company has more than 40 containers held at ports, industry sources said.
1. Tariff dispute
Indian customs investigators say bulk Scotch concentrates used to make whisky brands do not qualify for the India-UK trade pact’s reduced 75% duty, which they say applies only to finished products such as bottled Scotch. A November 4 finance ministry memo directed customs commissioners to apply a 150% tariff to the imports, classifying them as “compound alcoholic preparations.”
2. Shipments held
Pernod Ricard and Diageo are unwilling to pay the higher duty, and customs authorities have held dozens of their containers at Indian ports. Each company has more than 40 containers stuck, two industry sources said; Bacardi has five containers on hold, another source said. Prolonged delays are likely to disrupt supplies.
3. Trade pact context
India’s commerce ministry assured senior executives on November 2 that it would honour the pact and resolve the dispute, while a senior finance ministry source said the ministries were discussing a resolution. About 80% of Scotch imported from Britain arrives in bulk. Scotch exports to India totalled $335 million in 2024, and the Scotch Whisky Association forecast the trade deal could boost that figure by $1.34 billion over five years.
