Reuters reported that Indian officials are reviewing bulk Scotch imports by Pernod Ricard and Diageo, putting the eligibility rules behind sharply different duties under a UK trade pact in focus.
United Spirits Limited, Diageo’s Indian unit, disclosed that the Directorate of Revenue Intelligence (DRI) searched several of its locations on Oct. 16. The company described the searches as part of an industry-wide exercise, said it supplied requested information and reported no effect on its activities at the time. The filing did not say what the searches concerned.
India’s trade agreement with Britain took effect July 15, 2026. Its tariff schedule reduced the first-year duty on specified Scotch categories from 150% to 75%, with a 40% rate scheduled for year 10. The duty on a shipment depends on its correct classification and whether it meets the concession’s conditions, including origin and, for some categories, a minimum import price.
One Scotch category, code 22083092, covers containers holding more than two liters. Shipping whisky in bulk therefore does not automatically exclude it from the 75% rate. Separate categories for alcoholic-beverage concentrates and other alcohol carry conditional 110% first-year rates. Code 22071011 requires a minimum import price of $6 per 750-milliliter bottle, while code 22089099 requires $5 per liter. Both rates are scheduled to reach 75% in year 10.
The Scotch Whisky Association told UK lawmakers in August 2025 that regulatory rules steer most bulk Scotch exports into code 22089099, which receives a smaller tariff cut than the Scotch-specific categories. It said the difference could limit gains for exporters and Indian producers that bottle bulk Scotch or use it in other products. India received the equivalent of more than 220 million bottles of Scotch in 2025, the association says.
Citing five industry sources, Reuters reported that officials were examining whether some bulk concentrates had been claimed under a lower-duty category without qualifying for it. Reuters also reported that Pernod executives were questioned about Scotch imports. Both companies told Reuters they were cooperating with Indian authorities. Their initial responses were covered in EconoTimes’ earlier report on the inquiry.
The pact’s next annual tariff step is scheduled for Jan. 1, 2027.
