India-UK trade deal faces tariff dispute as 150% duty demand holds bulk Scotch shipments at ports

A tariff classification dispute between Indian customs authorities and liquor companies Pernod Ricard and Diageo has left dozens of bulk Scotch whisky containers awaiting clearance at Indian ports. Customs investigators are seeking a 150% import duty, arguing that bulk Scotch concentrates do not qualify for the 75% preferential rate under the India-UK trade agreement, which came into effect in July 2026. The disagreement could affect whisky supplies and the expected benefits of the bilateral trade pact.

India’s customs authorities have detained dozens of containers of bulk Scotch whisky imported by Pernod Ricard and Diageo amid a dispute over the tariff concessions available under the India-UK trade agreement.

According to a Reuters report, investigators are seeking to impose a 150% import duty instead of the 75% preferential rate provided under the agreement. The Directorate of Revenue Intelligence (DRI) maintains that bulk Scotch used in further manufacturing does not qualify as finished whisky under the tariff provisions.

The dispute is emerging as the first major tariff-related disagreement since the India-UK trade agreement came into effect in July 2026.

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