NEWS
INDIA PROBES DIAGEO & PERNOD RICARD OVER BULK SCOTCH TARIFFS
By Staff Reporter
20-10-2026
Source: Unsplash
Indian tax and customs authorities have opened an investigation into global drinks giants Diageo and Pernod Ricard, examining whether the two firms misclassified bulk Scotch whisky shipments to secure preferential lower import duties under the India‑UK trade pact.
Inspectors carried out surprise visits to Pernod Ricard’s headquarters near New Delhi last week, questioning senior executives and reviewing import documentation related to Scotch shipments.
Diageo’s Indian subsidiary United Spirits also disclosed in a stock exchange filing that multiple office locations were searched.
The India-UK free trade agreement, effective on 15 July 2026, cuts import tariffs on qualifying bottled Scotch from 150 percent to 75 percent.
Investigators are focusing on whether bulk Scotch whisky imported in tankers for local bottling were incorrectly labelled to qualify for the reduced rate, which officials argue was designed for finished bottled Scotch rather than bulk spirits.
Both companies said they are fully cooperating with the Directorate of Revenue Intelligence.
“Pernod Ricard is providing all information requested by authorities and remains committed to full compliance with Indian law,” a spokesperson commented.
Diageo issued a parallel statement, noting it has consistently followed local customs and tax regulations.
The inquiry carries high stakes for India’s USD 65 billion alcoholic beverage market.
Diageo and Pernod Ricard are major players in the country, selling a mix of premium imported Scotch and domestic blended whiskies made using bulk Scottish spirit.
If the authorities uphold allegations of wrongful classification, the firms could face penalties and tighter documentation rules for all future whisky imports.
Trade observers warn the outcome may reshape how international spirit groups structure bulk import operations into India, potentially limiting the ability to use discounted bulk Scotch to produce popular domestic blended whisky brands.
The probe also adds another layer of regulatory uncertainty for foreign alcohol investors in India, a market already known for periodic tax disputes.
(the writer can be contacted at: info@thewinechronicle.com)
ALL RIGHTS RESERVED
**IF YOU THINK THE WINE CHRONICLE IS WORTH SUPPORTING, PLEASE MAKE A DONATION TO HELP US IMPROVE AND CONTINUE OUR WORK**
TRENDING│ FOCUS│ MISSION│ ABOUT US│ CONTACT
| 