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

Jawed Ashraf writes: India and Europe can anchor a multipolar world
Jawed Ashraf writes: India and Europe can anchor a multipolar world

Indian Express

time20 minutes ago

  • Indian Express

Jawed Ashraf writes: India and Europe can anchor a multipolar world

External Affairs Minister S Jaishankar's second visit to Europe within a month reflects a deepening India-Europe engagement even as the two sides deal with volatile US policies, era-shaping geopolitical shifts, terrorism from Pakistan and escalating conflict in Europe. Highlights include Prime Minister Narendra Modi's visit to France to co-chair the AI Action Summit and the visit by the re-elected European Commission President, Ursula Von der Leyen, and the college of commissioners to India in February. The MEA-supported Raisina Dialogue also makes a debut this week in the strategic port city of Marseille. Europe faces extraordinary challenges. War has returned. Economic difficulties, concerns over security and immigration, and rising issues of identity and culture are reshaping politics. The European Union's (EU's) many internal stresses and faultlines have made managing the European project more complex, though Brexit has dissuaded even the most nationalist governments from abandoning the EU. The external challenges are greater. Europe must contend with US President Donald Trump's disdain for NATO and near dismantling of long-adrift transatlantic relations, the rupture in relations with Russia, and the geopolitical and economic strain in ties with China. Multilateralism, Europe's refuge for order and its instrument of international influence, is crumbling. Europe risks strategic irrelevance and a rising gap with the US and China in innovation and competitiveness. The world's most open major economy faces an upturned global trade regime. And, as it happens in continental landmasses, to Europe's east, the lines that define the political and cultural geography of what constitutes Europe are perennially contested. But the EU has shown remarkable cohesion and resilience in its response to Covid, the Ukraine war and Trump's onslaught. Its project of horizontal and vertical integration continues. Relations with the UK are improving. Europe is waking up to the need for independence in foreign and security policy, the pursuit of industrial and digital sovereignty, a resilient internal supply chain and a stronger defence industrial base. It has the intellectual, industrial and investment capacity for that. But Europe cannot do it by itself. It needs new patterns of alignment. Equally, global uncertainty has reinforced India's traditional proclivity for a diversified portfolio of partnerships. Engagement with Europe involves two levels. With the EU in its areas of exclusive and shared competences, there is a long tradition of summits, and now, expansion of strategic dialogues, including in trade, technology, security and foreign policy. With older and major member states, ties are strengthening and acquiring new dimensions. The Nordic region is the new frontier and attention has returned to the dynamic east. The EU is a leading and growing trade and investment partner for India. According to a Institut Montaigne study on the EU's ties in the Indo-Pacific, Eurostat data shows that between 2015 and 2022, EU27 FDI stock registered the strongest growth in India at 96 per cent, exceeding Taiwan's 93 per cent and China's 52 per cent. From France alone, the FDI stock grew a whopping 373 per cent. In trade, too, between 2015 and 2023, EU27 exports to India grew 47 per cent, behind 83 per cent to Taiwan and 54 per cent to China. EU imports from India grew by over 100 per cent, second behind Taiwan from the Indo-Pacific. Surveys indicate a trend toward diversification away from China, though less than that of US companies. The EU must conclude the EU-India trade and investment agreements quickly, starting with an early harvest, and also waive the Carbon Border Adjustment Mechanism for India in view of India's progress in green energy. These will accelerate IMEC, the great new strategic initiative that reprises an old India-Europe corridor, and will survive the current instability in the Middle East. It aims to be not just a trade route but a new global corridor of investment, innovation, enterprise and energy. India must invest more in Europe. India and Europe converge on the public character and purpose of digital technology and in preventing a global duopoly. As Modi said at the AI Action Summit, we can collaborate in innovation, application, regulation, governance, standards and serving public good globally. That also applies to digital public infrastructure. India can benefit from Europe's leadership in deeptech, digital manufacturing, enterprise technologies and key areas of the semiconductor chain. Indeed, science, technology and innovation should drive our partnership — to lead industries of the future and address global priorities, including diverse clean energy sources, climate resilience, health and food security, biodiversity and the sustainability of Earth and its oceans. This also requires a comprehensive mobility programme of higher ambition for students, scholars and scientists. Europe is a significant source of armaments for India. Europe, seeking to rearm itself, and India pursuing atmanirbharta, must prioritise collaboration and full transfer of technology in joint design, development and manufacturing of defence equipment. We have robust cooperation in the areas of maritime, underwater, space and cyber security, as also in counter-terrorism with many European partners. Beyond technical and intelligence cooperation, Europe, hit by Islamist terrorism, and sometimes with the provenance of Pakistan, needs to do more to penalise Pakistan for terrorism. Great powers believe they can bend the world to their will but often cause chaos. Middle powers need to leverage partnerships and institutions to resist and maximise their roles. India and the EU have a broader global agenda that rises beyond differences on Ukraine or Pakistan. India and a united, cohesive Europe, with an independent voice and capabilities, can build a stable multipolar world, anchored in international law, underpinned by the discipline of multilateralism and free from territorial ambitions. India and Europe approach challenges through coalitions, not unilateral initiatives or the use of asymmetric bilateral power. That calls for collaboration, not the EU's prescriptive approach on its norms. For the Global South, partnerships can protect our interests against mounting competition and also mitigate global fragmentation. In the Indo-Pacific region, while France is a key security partner for India, working with others and the EU, India can help countries avoid coercion by one hegemon or a forced choice between two major powers. Attention and time, imagination and ambition, and sensitivity to each other's concerns transform relationships. Europe and India need more of that despite other immediate preoccupations in Brussels, Delhi and European capitals. We must involve all stakeholders and also reshape media stereotypes and public perceptions. The author is a retired Indian ambassador

"Discussions were constructive and forward-looking," Piyush Goyal expresses satisfaction on meetings in Sweden
"Discussions were constructive and forward-looking," Piyush Goyal expresses satisfaction on meetings in Sweden

India Gazette

time23 minutes ago

  • India Gazette

"Discussions were constructive and forward-looking," Piyush Goyal expresses satisfaction on meetings in Sweden

Stockholm [Sweden], June 12 (ANI): Union Commerce and Industry Minister Piyush Goyal expressed satisfaction after attending a series of business events during his visit to Sweden, adding that discussions were constructive and forward-looking. After arriving in Sweden after concluding his successful trip to Switzerland, Union Commerce and Industry Minister addressed the India-Sweden Business Leaders' Roundtable (ISBLRT) lunch, hosted by Marcus Wallenberg, Chair of Wallenberg Investments AB. His visit reinforces India's commitment to strengthening bilateral economic ties with Sweden. Recalling the establishment ISBLRT in a post on social media platform X, he added that the entity was envisioned in 2016 by the leadership of both nations. Goyal said the platform has evolved into a vital forum for advancing trade, innovation, and investment collaboration. He called for deeper partnerships rooted in shared innovation, technological progress, and mutual prosperity, and said enhanced business engagement would further accelerate Indo-Swedish ties. Later, Goyal co-chaired the concluding session of the Indo-Swedish Joint Commission for Economic, Industrial and Scientific Cooperation with Swedish Minister for International Development Cooperation and Foreign Trade, Benjamin Dousa. He underlined that the exchange of capital, talent, and technology continues to form the backbone of India-Sweden economic relations, adding that science, innovation, and technology remain among the most vibrant areas of cooperation between the two countries. 'It was a pleasure to address the India-Sweden Business Leaders' Roundtable (ISBLRT) lunch, hosted by Marcus Wallenberg, Chair, Wallenberg Investments AB,' he added in the post on X. 'Addressed the concluding session at the Ministerial meeting of the Indo-Swedish Joint Commission for Economic, Industrial and Scientific Cooperation along with Benjamin Dousa, Minister for International Development Cooperation and Foreign Trade, Sweden,' Goyal added in the post. In another meeting, Goyal met Mattias Perjos, President & CEO of Getinge, a global medtech company with a presence in India. 'Discussed opportunities to boost manufacturing under the Make In India initiative and strengthen collaboration in medical technology,' Goyal added. Attending India-Sweden Business Delegation meetings in Stockholm, Union Minister Goyal said, India and Sweden complement each other. Inviting the business community to invest in India, Goyal further added, 'We would like to invite all the distinguished business leaders of Sweden to come to India to experience our country. I am sure this tested partnership can really grow beyond the frontiers of what we have achieved so far.' Goyal said India is not only the largest and fastest-growing economy, but it will continue to grow for the next 20-30 years. He highlighted that India has one of the lowest inflation rates and strong forex reserves. Citing the favourable business ecosystem, he appealed to the investor community to make investments in India. (ANI)

PM Modi 3.0: Can the government deliver on jobs and private investment?
PM Modi 3.0: Can the government deliver on jobs and private investment?

India Today

timean hour ago

  • India Today

PM Modi 3.0: Can the government deliver on jobs and private investment?

As the Prime Minister Narendra Modi-led government has completed 11 years in power, a key question looms over its economic legacy - has the Indian economy truly performed well under its watch? While supporters point to improved macroeconomic stability, critics often highlight the lack of progress in job creation and private investment. An analysis of key economic data provides a mixed but telling picture of the country's journey so far and the road of the most prominent indicators used to evaluate a government's economic record are GDP growth and inflation. During the UPA era (2004–2014), GDP growth averaged 6.8 percent. Under the Modi government, which took office in 2014, the average stands slightly lower at 6.2 percent. However, if the outlier years of the COVID-19 slump in 2020–21 and the subsequent rebound in 2021–22 are excluded, the adjusted average under Modi rises to 7.1 another major talking point - especially under the UPA government - has been a mixed story. During the UPA years, inflation averaged 5 percent. Under Modi, the number has been higher at 8.1 percent, although this increase is partly attributable to global volatility and changes in inflation benchmarks. Despite this, the Modi administration has received praise for maintaining relative stability in food prices, thanks to improved supply chains and quicker policy One factor that played a quiet but crucial role in controlling inflation has been the global crude oil price. When the Modi government came to power in June 2014, the Indian crude oil basket was priced at USD 107 per barrel. By June 2025, the price had dropped to US 67.38 per barrel. Despite the depreciation of the rupee over the years, the rupee cost per barrel is now 11 percent lower than it was 11 years ago. This favourable trend has significantly helped in managing inflation to leading economists, several macroeconomic indicators suggest that India's economic fundamentals remain strong. Inflation is within the Reserve Bank of India's comfort zone. Corporate and banking sector balance sheets are healthier compared to a decade ago. Fiscal data is transparent, the current account deficit is within manageable limits, and public debt remains low. India is expected to grow at 6.5 percent in FY26, although global uncertainty continues to pose two persistent concerns threaten to overshadow these achievements - sluggish private sector investment and a lack of formal job creation. These issues gained significant traction in recent state elections and were a major talking point during the 2024 Lok Sabha polls. With rising automation, AI, and tech adoption, employment opportunities - particularly in the formal sector - are becoming scarcer. The government is increasingly looking to the private sector to generate jobs, but private players have indicated they need more policy of the bottleneck lies in unfinished reforms. Two major reform areas - land acquisition and labor codes - remain mired in political resistance. The Modi government's initial attempt at land reform in 2014 was rolled back after widespread protests. Although labor codes have been passed by Parliament, their implementation remains stalled as several states have delayed India moves to sign more free trade agreements, these structural reforms become more pressing to ensure competitiveness and sustained economic roadblocks don't end there. Plans for privatization and asset monetisation - once touted as critical to funding infrastructure and reducing the fiscal burden - have been put on hold. With coalition politics making a comeback in Modi's third term, such strategic initiatives may now require more political negotiation. However, with a fresh mandate and regained political capital, the government may accelerate action in the coming challenges continue to emerge. The World Bank recently revised India's GDP forecast for FY25 down to 6.3 percent from an earlier estimate of 6.7 percent, attributing the cut to weaker global demand and a slowdown in investment growth. Nevertheless, India is still expected to be the fastest-growing major economy in the world. The World Bank also highlighted positive trends such as contained inflation, improving fiscal indicators, and a slow but steady decline in public debt. It recommended lowering tariffs and strengthening fiscal discipline to stimulate global economic Modi 3.0 begins, the economic path forward is lined with both opportunities and challenges. While India's macroeconomic foundation appears resilient, the missing piece - jobs and private investment - will be the key to sustaining long-term growth and addressing rising voter Watch

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