India looks to settle Scotch whisky disputes with UK soon

India hopes to resolve the recent issue of bulk Scotch whiskey imports from the UK and will honour all commitments under the free trade agreement, Commerce Secretary Rajesh Agrawal said on Friday.

His comments come at a time when several containers of bulk Scotch whiskey are held at Indian ports by the customs authorities, calling for higher tariffs of 150% as against the concessional 75% rate under the India-UK FTA.

“There are certain technical issues. The department of revenues is closely engaged with stakeholders,” Agrawal said, adding that he is hopeful that it will be resolved soon.

He elaborated that there are essentially duties on three lines and concerns are over these three lines. “As a country, we have given concessions…these will be respected,” he underlined.

The India-UK FTA came into effect on July 15 this year and this issue is one of the first issues that has cropped up since then. Under the FTA, bulk Scotch whiskey from the UK for blending and manufacturing in India qualifies for a lower import duty of 75% but the customs department is understood to have sought 150% duty because they are not eligible for the concessions.

Officials from the ministries of commerce and finance are understood to have met industry representatives as well to understand the classification dispute.

Meanwhile, commerce ministry data revealed that India’s exports to countries with which it has FTAs has risen steadily this year. India’s exports to the UK have risen by 7% to $7.32 billion between April and September this fiscal from $6.83 billion a year ago.

Its exports to ASEAN countries have seen the highest growth—at 58% in the first half of this fiscal to $28.06 billion from $17.75 billion a year ago. Exports to Oman have also increased by 47% to $3.29 billion in the period.