Indian officials are checking whether some bulk Scotch imports by Pernod Ricard and Diageo were assigned the wrong customs category, lowering duties under a new UK trade pact, Reuters reported, citing five industry sources.
The India–UK Comprehensive Economic and Trade Agreement took effect July 15. It reduced India's tariff on covered Scotch whisky from 150% to 75%, with the rate scheduled to reach 40% over 10 years.
India's tariff schedule gives Scotch under code 22083092 an initial 75% rate. That category can include shipments in containers holding more than two liters. A separate category for other spirits, code 22089099, starts at 110% and is scheduled to fall to 75% over 10 years.
United Spirits Limited, Diageo's Indian business, disclosed on Oct. 17 that the Directorate of Revenue Intelligence (DRI) had searched several company locations the previous day. United Spirits described the searches as part of an exercise across the industry and said it was cooperating. Its disclosure did not identify the goods involved or connect the searches to the trade pact.
The Scotch Whisky Association raised the tariff distinction in an August 2025 submission to a UK parliamentary committee. It said regulatory requirements led most bulk Scotch exports to use code 22089099, which received less relief than the Scotch-specific lines. Bulk Scotch is shipped to India for bottling and for use in Indian whiskies. The association says lower import costs could benefit Scottish exporters and Indian producers that use Scotch as an ingredient.
Three industry sources told Reuters that inspectors had visited Pernod's India office during the week before its Oct. 19 report. Pernod told Reuters it was cooperating with the DRI, while Diageo said it had complied with local laws. The DRI did not respond to Reuters' request for comment. Neither United Spirits' disclosure nor the tariff schedule identifies which codes the companies declared for the imports under examination.
