India’s dispute over bulk Scotch imports puts tariff rules in the India-United Kingdom Comprehensive Economic and Trade Agreement (CETA) to the test, as customs classification determines whether some shipments get reduced rates, Reuters reported Monday.
Indian tax officials have told companies that some bulk whisky shipments should be classified under customs item 21069051, which carries a standard 150% duty, rather than receive the pact’s lower Scotch rates, Reuters reported. India’s Finance Act 2026 sets the 150% rate for a category covering alcoholic preparations made for beverage production with alcohol content above 0.5% by volume.
The CETA took effect July 15, 2026. For Scotch under codes 22083012 and 22083092, the pact sets an initial 75% duty against a 150% baseline, with the scheduled rate declining to 40% in year 10. Other tariff lines — code 22071011 for alcoholic-beverage concentrates and 22089099 for other products — start at 110% and are scheduled to reach 75% in year 10.
The Scotch Whisky Association (SWA) argues that the reductions should cover both bottled Scotch and bulk exports. In written evidence to a UK parliamentary committee, the group said regulatory requirements lead most bulk Scotch exports to use code 22089099, a tariff line that received a smaller reduction than Scotch-specific codes.
Bulk Scotch is imported for bottling in India and as an ingredient in Indian-Made Foreign Liquor, which blends Scotch with other spirits and ingredients. SWA data show India received 220 million 70-centiliter-bottle equivalents of Scotch in 2025, valued at £286 million.
The effect at the shelf depends on more than the import tariff: evidence to the UK committee says Indian states set their own alcohol excise rates and other rules. EconoTimes previously covered the classification issue in its report on India’s bulk Scotch import-code review.
Reuters reported that the Indian government is scheduled to meet domestic and international liquor companies Monday, Nov. 2.
