India is finally moving to sort out the Scotch whisky import mess that has been blocking shipments at ports.
The holdup began over disagreements about how bulk whisky should be taxed, leaving big brands like Pernod Ricard and Diageo with their products stuck at entry points.
Commerce Secretary Rajesh Agrawal says the government is working to clear things up.
Bulk scotch duty dispute India UK
The main debate is whether bulk imports of Scotch whisky deserve a lower 75% duty under the new India-UK trade deal, which kicked in last July.
Customs officials argue that only finished products, such as bottled Scotch whisky, gets this break, while bulk shipments still face a hefty 150% duty due to classification rules and revenue concerns.
Until this gets sorted, those benefits from the trade deal, like boosting whisky business by $1.34 billion over five years, risk being undermined in practice.