After the recent historic Free Trade Agreement (FTA) between India and the United Kingdom (UK), it was expected that the prices of foreign products, especially British Scotch Whiskey, would fall drastically in the country’s market and imports would increase. Under this agreement, it was being speculated that premium whiskey coming from Britain would now be available to Indian consumers at very affordable prices, due to which a new enthusiasm was being seen in the liquor lovers and the market. But amidst all this, a shocking and surprising news is coming out from the business corridors. Despite the opening of trade routes between India and the UK and the signing of the agreement, the supply of Scotch whiskey at major ports and custom warehouses of the country has suddenly stopped. The situation is that dozens of containers filled with Scotch made from Britain are stuck with the Indian Customs Department for the last several days and clearance is not being given to send them to the market. This sudden supply crisis has given sleepless nights to importers and distributors, due to which there are fears of shortage of premium brands in the market.
The country’s customs and excise duty rules for foreign goods coming to India, especially alcoholic drinks, are considered very strict and complex. After the implementation of the India-UK agreement, the tariff rates have been changed, but there is still confusion at the ground level regarding the new administrative and technical procedures associated with it. According to experts, there are some technical issues between the customs officials and importers regarding the new tax structure, hallmarking, labeling standards and rules of statutory warnings. Apart from this, huge time is being taken in matching the paperwork of Bureau of Indian Standards (BIS) certification and local acquisition duty, due to which the containers of Scotch arriving at the ports are left dumped at one place instead of being cleared. Unless these administrative and policy complications are completely resolved, there seems to be little hope of getting these containers out.
The country’s big liquor importers, distributors and hotel-restaurant industry are facing huge financial losses due to stoppage of supply of Scotch and containers being stuck in customs. During the festive season and weddings, the demand for premium Scotch whiskey is at its peak in the market, but due to not getting the delivery of goods on time, businessmen are feeling disappointed. Experts say that if this obstruction is not removed soon, an artificial shortage of Scotch may arise in the market and the possibility of its price increasing also cannot be ruled out. Distributors say that the government and concerned departments should simplify this process as soon as possible so that the claims of ease of doing business can be implemented and the confidence of foreign investors and businessmen can be maintained.
After this entire incident came to light, a round of diplomatic level talks have started between the Commerce Ministry of the Government of India and the UK business representatives so that these technical hurdles can be removed with immediate effect. Senior officials of the Customs Department say that the process of documents is being processed expeditiously and as soon as all the legal and legal formalities are completed, all these containers will be released one by one. It is expected that the situation will become normal within the next few days and the supply of Scotch whiskey will once again start smoothly in the country’s markets. Till then, consumers and businesses will have to wait for this administrative impasse to end, so that the real benefits of the India-UK trade deal can reach the general public.