India-UK trade deal faces early test as customs hold scotch imports over tariff row

AI Summary

Indian customs authorities are holding bulk Scotch whisky shipments amid a dispute over whether concentrates qualify for the reduced tariff under the India-UK trade agreement. The authorities say the shipments remain subject to a 150% duty, rather than the pact’s 75% rate, disrupting supply chains for Pernod Ricard, Diageo, and other companies.

Indian customs authorities are holding containers of bulk Scotch whisky due to a tariff dispute involving Pernod Ricard and Diageo. Authorities insist these shipments are subject to a 150% import duty despite trade pact assurances. The dispute arises over whether concentrates qualify for the reduced 75% tariff established in the India-UK trade agreement. This situation has led to delays in the supply chain for many companies.