Exclusive-India holds Pernod, Diageo Scotch shipments as investigators seek higher tariff

Résumé détaillé

By Aditya Kalra NEW DELHI, Nov 11 (Reuters) - Indian customs is holding dozens of containers of bulk Scotch imported by Pernod Ricard and Diageo as investigators press for a 150% tariff, even though the companies rely on a New Delhi assurance of lower duties under the India-UK trade pact, according to four people with knowledge of the matter and a confidential government memo.

NEW DELHI, Nov 11 (Reuters) - Indian customs is holding dozens of containers of bulk Scotch imported by Pernod Ricard and Diageo as investigators press for a 150% tariff, even though the companies rely on a New Delhi assurance of lower duties under the India-UK trade pact, according to four people with knowledge of the matter and a confidential government memo.

In the first major dispute linked to the trade deal, which took effect in July, customs investigators have ordered the higher tariff on the shipments arguing that bulk Scotch concentrates used to make whisky brands are not eligible for the pact's reduced 75% duty.

The investigators say the lower rate applies only to finished products such as bottled, ready-to-drink Scotch.

Following industry lobbying, India's commerce ministry assured senior executives on November 2 that it would honour the pact and resolve the dispute as soon as possible, leading liquor companies to believe the lower tariff would be applied.

However, a memo by the finance ministry's Directorate of Revenue Intelligence dated November 4, reviewed by Reuters, asks customs commissioners across India to continue to take a different view.

The memo said importers were "incorrectly" claiming benefits under the India-UK pact on bulk Scotch, which should attract a 150% tariff under a customs classification in effect since May 1 for so-called "compound alcoholic preparations".

Any misclassification by importers has "large-scale, recurring substantial revenue implications", the memo said, instructing customs officials to ensure the correct application of the 150% duty.

"Preliminary investigation revealed that the imported goods are not finished whisky/brand/rum as such, but are concentrates/compound preparations which are subjected to further manufacturing," the confidential memo said, providing the clearest explanation yet of investigators' position.

India's finance ministry, which oversees customs authorities, and the commerce ministry did not respond to…

Début de l'article, extrait de Euronext. Pour lire la suite, ouvrez l'article chez le média.