India probes Pernod, Diageo Scotch import classification
Reuters reports Indian tax officials are examining whether bulk Scotch was misclassified to pay lower duties — an early test of how the India-UK trade pact's tariff tiers are policed.
Indian tax officials are investigating whether Pernod Ricard and Diageo wrongly classified some bulk Scotch imports, allowing them to pay lower tariffs, Reuters reported on October 19, citing unnamed sources. The inquiry centres on how bulk Scotch is classified for duty purposes under the tariff tiers set by the India-UK trade pact, according to the report. Neither company has confirmed the inquiry, and the sources are not named, so the scope and status remain unverified. Both are the largest Scotch importers into India and are expanding there, which makes the classification question consequential beyond the two firms, per Reuters.