Directorate of Revenue Intelligence searched the offices of Pernod and Diageo and questioned executives this month as part of an investigation into whether they misclassified imported products (Photo: AdobeStock)
India's move to exclude bulk Scotch imports from a reduced 75 per cent tariff goes against provisions agreed in an India-UK trade deal, a group representing liquor makers Diageo and Pernod Ricard wrote in a letter seen by Reuters.
Whisky tariffs were a sticking point during the years of protracted negotiations leading up to the deal's July 15 implementation, though India ultimately agreed to halve import taxes on certain Scotch imports from 150 per cent to 75 per cent immediately and to 40 per cent over 10 years.
The British government said "iconic UK products" like whiskies would benefit from the pact. Indian investigators, however, have privately told companies the reduced rate does not apply to bulk Scotch concentrates, creating the first significant dispute over the free trade agreement since it took effect.
India's Directorate of Revenue Intelligence searched the offices of Pernod and Diageo and questioned executives this month as part of an investigation into whether they misclassified imported products to benefit from the reduced rate.