Government wants EC to change definition of whisky

Kavita K Bhaskaran

New Delhi, Nov 27: The government has responded to the European Union Council’s demand for reduction in custom duty on liquor by seeking a change in the definition of whisky by the Council which has hit exports from India.

The government has also told the EU that it has not violated the World Trade Organisation (WTO) norms in any way by putting in place the new duty structure for liquor.

This was conveyed to the EU Council by the government at the recently concluded India-EU Summit.

The EU delegation, which included representatives of the Scotch Whisky Association (SWA), was told that it would look into the duty structure but did not give them any assurance on reducing it.
A senior government official told The Financial Express: “The government conveyed to the EU that despite the latter’s claims of opening up of markets and pleas for a reduced duty rate for liquor imports to India, the EU on its part has put a barrier on spirit exports from India.”

The official said: “The EU has its list of demands from the Indian government. In the name of opening up of markets and WTO, they have been persistent about duty reduction and making claims about the Indian government circumventing WTO norms.”

According to the official, the duty structure was framed after studying the rules and regulations framed by WTO hence no norms were violated.

He said: “We have assured them that we will examine the case and give the matter a fair hearing but we have not assured them of reduction in the duty structure.”

The official said: “We felt that we should take up the problems faced by the Indian whisky manufacturers due to the definition of whisky which has been implemented by the EU. We have asked the EU to relax some norms and allow entry of Indian whisky into their countries.”

The government had taken up this issue with the EU at the behest of the Indian liquor companies who had urged the Centre to approach the EU Council for changing the definition of whisky.