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'India Holds Pernod, Diageo Scotch Shipments As Investigators Seek Higher Tariff' - Reuters Exclusive
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  • Investigators' memo puts spotlight on Scotch dispute linked to India-UK pact
  • Memo says bulk Scotch is a compound preparation, not finished whisky
  • India investigators ask customs officers to charge 150% duty
  • About 80% of Scotch shipped to India arrives in bulk

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.

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