NEW DELHI: Amid problems faced by importers of Scotch in bulk form, commerce secretary Rajesh Agrawal on Monday assured industry representatives that India will stand by its commitment under the trade agreement with the UK and ensure that the duty concession is not affected.At the heart of the controversy is the import of bulk Scotch, which accounts for 80% of the whisky shipments from the UK. Under the trade agreement, effective July 15, customs duty has been halved to 75% under the FTA, which is to be reduced to 40% in 10 years. Bulk imports are crucial for blending whisky in India and bottling.The Directorate of Revenue Intelligence has, however, been questioning the product classification of bulk whisky with the duty concession available to 220830 tariff line provided they are imported in containers bigger than two litres.
India assures Scotch whisky industry that UK trade deal duty concessions will remain intact amid bulk import classification dispute
Companies have been importing bulk Scotch under three HSN or product codes, 22083092, 22083093 and 22083099. DRI is examining if imports under heading 2208 covering spirits and whisky should be used or it should be 2106, which relates to food preparations that are not included elsewhere.Industry is arguing that classification under heading 2106 will render the duty concession meaningless. It has demanded that the tariff concession should be available to finished whisky as well as bulk Scotch, otherwise Indian companies will suffer.Govt officials said that the commerce and revenue departments will discuss the issue and seek to address industry concerns in the coming weeks.“The ministry of commerce and industry today assured the Indian Alcobev industry that the ambiguity surrounding the current HSN code classification for bulk Scotch imports will soon be resolved amicably… The aim is to resolve the situation fully in due time and to maintain business continuity for companies in the sector,” the Confederation of Indian Alcoholic Beverage Companies said after a meeting with commerce secretary Rajesh Agrawal.
