logo
Alcohol makers seek phased import duty cuts, strong safeguards to prevent EU FTA misuse

Alcohol makers seek phased import duty cuts, strong safeguards to prevent EU FTA misuse

Time of India26-05-2025

Alcoholic beverage maker's body CIABC has urged the government to adopt a phased reduction in import duties on liquor products under the proposed India-EU free trade agreement (FTA), while calling for strong safeguards to prevent misuse of trade concessions under the pact. In a submission to the commerce ministry, Confederation of Indian Alcoholic Beverage Companies (CIABC) has proposed slashing the effective customs (or import) duty on bottled products like wines and spirits from the current 150 per cent to 100 per cent immediately and then down to a resting customs duty rate of 50 per cent in 10 years. It has suggested similar cuts for bulk wines also.
For bulk spirits, the industry has recommended an even steeper cut from 150 per cent to 75 per cent right away, reaching 25 per cent in a decade.
However, CIABC warned that any tariff concessions must be tightly linked to measures preventing misuse of the FTA through trans-shipment or under-invoicing, especially between the EU members and countries like the UK.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Huong Tho Phu: Unsold Furniture Liquidation 2024 (Prices May Surprise You)
Unsold Furniture | Search Ads
Learn More
"There is a porous border between Northern and Southern Ireland (Republic of Ireland) that provides significant scope for unscrupulous elements to import extra neutral alcohol from the UK and transmit it to India as Gin and Vodka after cosmetic value addition," it said.
Additionally, there is no customs duty on alcoholic beverages between the EU and UK, and with transportation cost being low, there is ample scope for alcoholic beverage products manufactured in the UK, both in bottles and bulk, being trans-shipped to India, it added.
Live Events
"The Republic of Ireland is part of the European Union (EU) while Northern Ireland is an entity of the UK. Since FTAs between the EU and UK shall be distinct, there is a need for safeguards from misuse of concessions offered to the EU," CIABC Director General Anant S Iyer said.
He also pressed for strict rules of origin and minimum import price (MIP) thresholds to protect the domestic industry from cheap imports of wines and spirits.
"Under invoicing of alcoholic beverages is rampant, and the domestic market is already flooded with cheap imported alcoholic beverages being imported at impossibly low CIF (cost, insurance, freight) values of USD 3 or even less per 750 ml bottle. A safeguard against such malpractices is most essential and, therefore, inclusion of the minimum import prices is strongly recommended," Iyer said.
He strongly recommend imposition of an MIP of USD 5 per 750ml bottle of wines (as per trade agreement with Australia) to qualify for any proposed tariff reduction in the free trade pact with the 27-nation bloc on bottled products; and an MIP of USD 6.70 per bulk litre can be imposed for wines imported in bulk to qualify for any proposed tariff reduction.
The director general further called for fair customs valuation and scrutiny at the port of entry.
"We also suggest strict application of transfer pricing rules so as to eliminate the possibility of undervalued import prices," he said, adding that no products should be permitted for concessions under the India-EU FTA if it has been manufactured in a third country.
Iyer said that if an alcoholic product is a GI (Geographical Indications) tagged product, such as Scotch Whisky, Irish Whiskey, Cognac, Champagne, Tequila, then the GI-linked country should be the origin for the purpose of tariff rate, regardless of where the shipment is coming from.
Further, the CIABC urged that the EU should remove the condition of maturation for a minimum of three years for Indian whiskies since it is scientifically established that in warm Indian conditions, whisky ages 3 to 3.5 times faster than in Europe/UK.
Indian whiskies should be allowed to be sold in the EU as whiskies irrespective of whether they are made from malt, grain spirits or molasses-based spirits, and they should accept Indian recipes as India accepts European or British recipes for whisky, he said.
"The domestic industry in turn would have no objection to brand their whiskies as 'Indian Whisky' to provide the consumers an informed choice as is being done in the case of Japanese whisky, Tennessee/Bourbon whiskies from USA, Canadian Whisky and Irish Whiskey," he said, adding that when regulatory authorities in India are flexible in implementing local laws to accommodate entry of imported beverages, there should be reciprocity in according similar flexibility by allowing Indian alcoholic beverages access to EU markets.
The Indian alcoholic beverage industry generates Rs 3,00,000 crore in taxes, employs 20 lakh people and sustains the livelihood of 50 lakh farmers in India, as per the body.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

US President Donald Trump open to extend July 8 trade talks deadline, US to send deal letters
US President Donald Trump open to extend July 8 trade talks deadline, US to send deal letters

Time of India

time30 minutes ago

  • Time of India

US President Donald Trump open to extend July 8 trade talks deadline, US to send deal letters

ADVERTISEMENT ADVERTISEMENT ADVERTISEMENT WASHINGTON: U.S. President Donald Trump said on Wednesday he would be willing to extend a July 8 deadline for completing trade talks with countries before higher U.S. tariffs take effect, but did not believe that would be told reporters before a performance at the Kennedy Center that trade negotiations were continuing with some 15 countries, including South Korea, Japan and the European Union."We're rocking in terms of deals," he said. "We're dealing with quite a few countries and they all want to make a deal with us." He said he did not believe a deadline extension would be "a necessity."Trump said the U.S. would send out letters in coming weeks specifying the terms of trade deals to dozens of other countries, which they could then embrace or reject."At a certain point, we're just going to send letters out ... saying, 'This is the deal. You can take it, or you can leave it,'" Trump said. "So at a certain point we'll do that. We're not quite ready."U.S. Treasury Secretary Scott Bessent told lawmakers earlier that the Trump administration could extend the July trade deal deadline - or "roll the date forward" for countries negotiating in good faith, in certain cases.A 90-day pause in Trump's broadest, "reciprocal" tariffs will end on July 8, with only one trade deal agreed with Britain and some 17 others at various stages of negotiation."It is highly likely that those countries - or trading blocs as is the case with the EU - who are negotiating in good faith, we will roll the date forward to continue the good-faith negotiations," Bessent told the House Ways and Means Committee. "If someone is not negotiating, then we will not."Bessent's remarks marked the first time a Trump administration official has indicated some flexibility around the expiration date for the reiterated the possibility of more negotiating time at a second hearing before the Senate Appropriations Committee on Wednesday, saying it was "my belief that countries that are negotiating in good faith could be rolled forward."He said the European Union had previously been slower to come forward with robust proposals, but was now showing "better faith," without providing specifics. Trump echoed that more upbeat view on Wednesday, saying, "They do want to negotiate."A deal struck on Tuesday in London with China to de-escalate that bilateral trade war is proceeding on a separate track and timeline, with an August 10 deadline set last president has been the final decision-maker on his administration's tariff and trade policies, but Bessent's influence has increased in recent months and the Treasury chief has been viewed by many trading partners as a moderating announced the pause on April 9, a week after unveiling "Liberation Day" tariffs against nearly all U.S. trading partners that proved to be so unexpectedly large and sweeping that it sent global financial markets into near S&P 500 Index plunged more than 12% in four days for its heftiest run of losses since the onset of the COVID-19 pandemic in early 2020. Investors were so rattled they bailed out of safe-haven U.S. Treasury securities, sending bond yields rocketing higher. The dollar started their recovery on April 9 when Trump unexpectedly announced the pause. The recovery continued in early May when the Trump team agreed to dial back the triple-digit tariff rates it had imposed on goods from China. Those events have given rise to what some on Wall Street have parodied as the "TACO" trade - an acronym for Trump Always Chickens Out."The only time the market has reacted positively is when the administration is in retreat from key policy areas," Democratic Representative Don Beyer of Virginia told Bessent before pressing him on what to expect when the July deadline expires."As I have said repeatedly there are 18 important trading partners. We are working toward deals with those," Bessent said before going on to signal a willingness to offer extensions to those negotiating in good faith.

'Trump Card is coming': $5m gold card offering US residency now accepting applications; key details
'Trump Card is coming': $5m gold card offering US residency now accepting applications; key details

Time of India

time44 minutes ago

  • Time of India

'Trump Card is coming': $5m gold card offering US residency now accepting applications; key details

(Source: Donald Trump's Truth Social account) The much-hyped 'Trump Card' is now officially open for registration, offering wealthy foreigners a chance to join a waiting list. US President Donald Trump describes it as a premium route toward US citizenship, for a hefty $5 million price tag. The official website, features an image of the shiny gold-coloured card, complete with Trump's photo, signature and name. The form asks for basic details like name, email, region of origin, and whether the applicant is applying as an individual or a business. The Trump Card is coming! Trump announced the launch on his social media platform Truth Social, 'For five million $DOLLARS, The Trump Card is coming! Thousands have been calling and asking how they can sign up to ride a beautiful road in gaining access to the greatest country and market anywhere in the world.' 'The waiting list is now open,' he added. The website lists eight regions for applicants to choose from: Europe, Asia (including the Middle East), North America, Oceania, Central America, South America, the Caribbean and Africa. Above the details, the site ensures that applicants will be notified when access opens: 'Enter your information below to be notified the moment access opens.' What the card promises — and what it doesn't Trump claims the card offers a 'path to citizenship,' but he has clarified that it does not guarantee immediate entry or naturalisation. 'It's somewhat like a green card , but at a higher level of sophistication,' the POTUS has claimed. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Memperdagangkan CFD Emas dengan salah satu spread terendah? IC Markets Mendaftar Undo The Trump administration insists the new card does not require approval from Congress, as it doesn't provide citizenship outright. White House officials have said more information will be released soon, reports USA Today. Under the existing US naturalisation system, immigrants must typically be lawful permanent residents for at least five years, meet age and language criteria, and have a clean record. A replacement for EB-5? Trump first proposed the Trump Card earlier this year as a replacement for the EB-5 investor visa programme, which grants green cards to foreigners who invest between $800,000 and $1.05 million into US job-creating projects. The EB-5 programme has long suffered from backlogs and accusations of fraud. 'Wealthy people will be coming into our country by buying this card,' Trump said in February. 'They'll be wealthy, and they'll be successful, and they'll be spending a lot of money, and paying a lot of taxes and employing a lot of people.' He added, 'It's a road to citizenship for people and essentially people of wealth or people of great talent where people of wealth pay for those people of talent to get in.' Major tax advantage for card holders One of the key selling points of the Trump Card appears to be its potential tax benefits. Trump has suggested that gold card buyers would only be taxed on their US earnings, unlike green card holders, who are taxed on worldwide income. This is likely to appeal to many high-net-worth individuals who have avoided relocating to the US due to its global tax obligations. Trump Card does not seem to require applicants to create US-based jobs or launch businesses, unlike the EB-5 visa programme. US commerce secretary Howard Lutnick has claimed that 1,000 cards were sold in a single day, even though the programme has yet to officially launch. According to Lutnick, some 37 million people worldwide could afford the Trump Card. Trump has claimed he was the first to purchase the Trump Card himself. 'I had no idea who would be the second,' he said. However, the programme is not designed for American citizens. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now

Morning Digest: Harvey Weinstein convicted of top sexual assault charge in #MeToo case retrial; Jaishankar says India-EU FTA will elevate strategic partnership, and more
Morning Digest: Harvey Weinstein convicted of top sexual assault charge in #MeToo case retrial; Jaishankar says India-EU FTA will elevate strategic partnership, and more

The Hindu

timean hour ago

  • The Hindu

Morning Digest: Harvey Weinstein convicted of top sexual assault charge in #MeToo case retrial; Jaishankar says India-EU FTA will elevate strategic partnership, and more

Jury convicts Harvey Weinstein of top charge in the retrial of his landmark #MeToo sex crimes case Former movie mogul Harvey Weinstein was convicted Wednesday (June 11, 2025) of one of the top charges in his sex crimes retrial but acquitted of another, and jurors were as yet unable to reach a verdict on a third charge. The split verdict meted out a measure of vindication to his accusers and prosecutors — but also to Weinstein — after the landmark case was thrown into limbo. India-EU FTA will elevate strategic partnership: Jaishankar India and the European Union have made progress in discussions related to a free trade pact that will be 'comprehensive, balanced and meaningful', said External Affairs Minister S. Jaishankar on Wednesday (June 11, 2025). Mr. Jaishankar made the remarks after meeting Maros Sefcovic, European Commissioner for Trade and Economic Security in Brussels. IRCTC Tatkal ticket booking will require Aadhaar from July 1 With the objective of ensuring equitable access to Tatkal tickets and curbing misuse, Indian Railways on Wednesday (June 11, 2025) announced a series of modifications to the Tatkal ticket booking system. The new provisions include Aadhaar-based authentication as a prerequisite for online Tatkal bookings. 'Effective from July 1, Tatkal tickets booked through IRCTC's official website and mobile app will be available only to users authenticated with Aadhaar,' a spokesperson of the Ministry of Railways said. Government strengthening IT cells to counter terrorist propaganda on social media: Union Home Secretary The government is strengthening Information Technology (IT) cells and cybersurveillance to counter terrorist propaganda being spread on social media, Union Home Secretary Govind Mohan said on Wednesday. He said terrorists were using social media and advanced drone technology 'not just for surveillance and espionage, but also to carry out pinpointed and focused attacks.' Axiom space mission postponed to repair rocket's oxygen leak SpaceX has said that it is standing down from Falcon 9's launch of Axiom Space Ax-4 mission which will carry Indian astronaut Group Captain Shubhanshu Shukla's to the International Space Station. 'SpaceX is standing down from Falcon 9's launch of Axiom Space's Axiom Mission 4 (Ax-4) to the International Space Station from Launch Complex 39A (LC-39A) at NASA's Kennedy Space Center in Florida on Wednesday, June 11, to allow additional time for SpaceX teams to repair the LOx leak identified during post static fire booster inspections. Once complete – and pending Range availability – we will share a new launch date,' SpaceX said. Congress president Kharge justifies fresh caste census in Karnataka Leader of Opposition in the Rajya Sabha and Congress president Mallikarjun Kharge justified the decision to conduct a fresh caste census in Karnataka, saying it is necessary to reflect current realities. 'The last caste census was conducted 10 years ago during Siddaramaiah's first tenure as Chief Minister. Much has changed since then, with several communities being reclassified. A new survey is essential to assess the present socio-economic and educational status of each caste. The same parameters used in the previous census will be applied again, along with new parameters,' he explained. India unlikely to ratify 'High Seas Treaty' at U.N. Ocean Conference India is unlikely to ratify the Biodiversity Beyond National Jurisdiction (BBNJ) agreement—also known informally as the 'High Seas Treaty'—at the ongoing United Nations Ocean Conference in Nice, France, sources indicated to The Hindu. Constitution does not avert its gaze from caste, poverty, injustice: CJI The Chief Justice of India B.R. Gavai has hailed the Indian Constitution as an unpretentious social document that does not avert its gaze from the brutal truths of caste, poverty, exclusion and injustice in the country. Two Maoists killed in Sukma; anti-Maoist operations to continue through the monsoon season Two Maoists, including a Local Organisation Squad Commander carrying a reward of ₹5 lakh on his head, were killed by security forces during an operation in Chhattisgarh's Sukma on Wednesday (June 11, 2025), the police said. Earlier, Chhattisgarh Chief Minister Vishnu Deo Sai said that such anti-Maoist operations, which are usually dormant during the rainy season, would continue through the monsoon. U.S. reduces presence of staffers not deemed essential in West Asia as tensions with Iran rise The United States is drawing down the presence of staffers who are not deemed essential to operations in West Asian and their loved ones due to the potential for regional unrest, the State Department and military said Wednesday (June 11, 2025). The State Department said it has ordered the departure of all nonessential personnel from the U.S. Embassy in Baghdad based on its latest review and a commitment 'to keeping Americans safe, both at home and abroad.' The embassy already had been on limited staffing, and the order will not affect a large number of personnel. Netanyahu's government faces possible collapse as the opposition seeks to dissolve it Israeli Prime Minister Benjamin Netanyahu's government faces a major test on Wednesday after the opposition submitted a Bill to dissolve the government, with his ultra-Orthodox coalition partners threatening to support the measure and force early elections. The ultra-Orthodox parties are furious that the government has failed to pass a law exempting their community from mandatory military service, an issue that has bitterly divided the Israeli public during the war in the Gaza Strip. Trump says trade deal with China is done; China will supply rare earths, U.S. to allow students U.S. President Donald Trump said on Wednesday (June 11, 2025) the U.S. deal with China is done, with Beijing to supply magnets and rare earth minerals while the U.S. will allow Chinese students in its colleges and universities. 'WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%. RELATIONSHIP IS EXCELLENT!' Trump wrote on Truth Social without elaborating. World Test Championship Final: Starc strikes as Australia fight back against South Africa Mitchell Starc led Australia's recovery as the defending champions fought back with the ball against South Africa on the first day of the World Test Championship final at Lord's on Wednesday (June 11, 2025). Australia were dismissed for just 212 after South Africa captain Temba Bavuma won the toss in overcast, bowler-friendly, conditions, with spearhead quick Kagiso Rabada taking 5-51. But at stumps South Africa had slumped to 43-4 in reply, a deficit of 169 runs.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store