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

Bengaluru ranks 14 in top 20 startup ecosystems: Report
Bengaluru ranks 14 in top 20 startup ecosystems: Report

Time of India

time38 minutes ago

  • Time of India

Bengaluru ranks 14 in top 20 startup ecosystems: Report

Bengaluru: Bengaluru is ranked 14th among the top 20 global ecosystems, an impressive improvement of seven positions from last year, according to the Startup Genome's Global Startup Ecosystem Report 2025. Silicon Valley, New York City, and London secured the top three positions, followed by Tel Aviv in fourth place, with Boston and Beijing tied for fifth. Startup Genome defines ecosystem value as the sum of valuations of funded startups, including unicorns, plus the post-money valuation of exits in the past two and a half years. Globally, the total value of exits decreased by 4%, and the number of exits decreased by 9% compared with 2023. Across last year's top 40 ecosystems, the total count of large exits decreased by a troubling 31%—and for the aggregate of all ecosystems in our database, the decline was 40%. In 2024, the ecosystem experienced a remarkable surge in billion-dollar exits. Food delivery giant Swiggy made its public debut with a $12 billion valuation, marking one of India's largest IPOs. Insurance innovator GoDigit followed with a $3.6 billion public listing, while digital health commercialisation firm Indegene reached a valuation of $1.3 billion. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch CFD với công nghệ và tốc độ tốt hơn IC Markets Đăng ký Undo Logistics leader Blackbuck, transforming India's freight industry, closed the year with a $1 billion IPO. These milestones were not isolated events but reflected a deepening and maturing ecosystem, which saw its total value soar to $136 billion in 2024. India, the report said, secured $38 billion in total VC funding between 2020 and 2024, underscoring investor confidence in its innovation pipeline. Even amid global headwinds, Bengaluru startups raised $268 million in seed funding in 2024 alone—a 26% increase from the previous year. Deal activity remained healthy, growing by 4% year-over-year to hit 114. This reflects a robust early-stage pipeline supported by more than 1,500 venture capital firms, more than 2,200 corporate venture investors, and a flourishing community of 17,000 angel investors. Bengaluru now ranks 5th among the Top 50 AI cities globally, and AI & big data have emerged as the most resilient and forward-moving sector, with increases in both deal volume and funding in recent years. "Bengaluru is building a platform where corporations, researchers, startups, and policymakers can co-create the future—not just for India, but for the world. Bengaluru's next chapter will be written in deep code, hard science, and global collaboration," said Ravi Narayan, president, Middle East & South Asia, Startup Genome. Follow more information on Air India plane crash in Ahmedabad here . Get real-time live updates on rescue operations and check full list of passengers onboard AI 171 .

Some private universities in Karnataka see rise in applications after adopting JEE for admissions
Some private universities in Karnataka see rise in applications after adopting JEE for admissions

Time of India

time39 minutes ago

  • Time of India

Some private universities in Karnataka see rise in applications after adopting JEE for admissions

Bengaluru: Many private universities in the city, which dropped their entrance tests and adopted JEE ranks for admission this year, reported a remarkable increase in the applications they received. The state higher education department had asked private universities not to hold their entrance exams to help students who are forced to take multiple entrance tests for engineering. Instead, the universities decided to use the score from a national entrance like JEE or the Karnataka Common Entrance Test, which holds the key to the govt quota seats in the engineering colleges here. Universities said the move worked out well for them as they received applications from a national pool of students, as well as a higher number. PES University, which received 24,000 applications last year, said it saw a rise of 10% in applications. After the JEE-Mains 1, the university held one round of early admissions. After the combined JEE results were announced, it drew up a merit list based on the applicants' scores, and admissions were made. The majority of the students who got admissions in this list were above the 85th percentile. A similar process will follow for PESU-CET after the first round of K-CET counselling. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Buy Brass Idols - Handmade Brass Statues for Home & Gifting Luxeartisanship Undo "Not only have the numbers gone up, but the parents have been very happy with the system. They feel that with JEE being a widely accepted exam, with a more credible standing, the stature of the university has also gone up," said Ajoy Kumar, COO, PES University. RV University, which had around 7,000 applications last year for their exam, jumped up to 10,000 applications this year. The cut-off percentile was 80%. The university has 243 seats for this category. "There are advantages and disadvantages to the new system. While the applications have increased, giving us a national pool of students, it is also a task for us to follow up with each candidate. Not all of them would be interested in joining the university. They would have applied as it has become an easier process, but it has added to our administrative tasks," said DP Nagaraj, pro-chancellor, RV University. Reva University said there was no considerable change in the number of applications they received. The university said while the single entrance system has been mandated by the govt, they would have preferred a system where they could choose the students based on their interests and whether they align with the ideas of the university. quote Sanjay Chitnis, vice-chancellor of REVA University Exams like JEE are designed to eliminate candidates through a standardised process. However, it does not assess critical 21st-century skills such as problem-solving, innovation, entrepreneurship. We would have liked to engage students in a two-week immersion, allowing us to evaluate their soft skills, understand their aspirations, and mentor them accordingly. In such a model, an average JEE score would not have been a constraint. Unfortunately, the current regulatory framework does not allow this flexibility Follow more information on Air India plane crash in Ahmedabad here . Get real-time live updates on rescue operations and check full list of passengers onboard AI 171 .

Govt decides to hand over elderly services to NGOs, corporate houses
Govt decides to hand over elderly services to NGOs, corporate houses

Time of India

time39 minutes ago

  • Time of India

Govt decides to hand over elderly services to NGOs, corporate houses

1 2 Bhubaneswar: To ensure smooth operation and management of the integrated infrastructure complex meant to provide quality services to the elderly and people with disabilities, the state govt has decided to hand over these facilities to corporate houses and NGOs. The social security and empowerment of persons with disabilities department has come up with a detailed guideline in this regard, forming high-level committees that will oversee selection of such NGOs and reputed corporate houses. As per the guidelines, a six-member committee headed by the department's director will look after the selection of corporate houses, which will see aspects like the track record of houses in terms of providing services in the social security sector. Similarly, a five-member committee, headed again by the director of the department, will look after the issuance of expressions of interest to select the NGOs. The NGOs should have a clean record along with experience of at least 10 years in the field of social security services. Notably, the govt is constructing integrated infrastructure complexes in each district that will provide a range of services such as homes for senior citizens, schools for persons with disabilities, and early intervention centres. 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 These facilities will also provide services like homes for mentally ill persons, physiotherapy, disability rehabilitation, advanced rehabilitation, and more. The social security department will provide a grant of Rs 2.10 crore annually for the operation and maintenance of these facilities. "The number of elderly persons increased from 22.81 lakh in 1991 to 30.39 lakh in 2001 and 39.8 lakh in 2011. The present proportion of 9.5% of senior citizens is estimated to reach 13.8%, numbering 62.69 lakh in 2026," the guideline reads. It mentioned that the number of persons with disabilities in Odisha increased from 10.21 lakh in 2001 to 12.44 lakh in 2011. "The estimated population of PwDs comes to 14.62 lakh in 2019. Different estimates show the current rate of prevalence of disability will be between 10% to 15%," it reads. "The state govt has taken up construction of such complexes, looking at these numbers and the need for such facilities in the future. Currently, eight such complexes have been grounded while four are in different stages of construction," said state commissioner, SSEPD, Bratati Harichandan. She said guidelines have been issued to ensure smooth operation and maintenance of these facilities. "The new guideline supersedes the previous one issued in 2021. It covers major aspects of the complexes," said Harichandan. Follow more information on Air India plane crash in Ahmedabad here . Get real-time live updates on rescue operations and check full list of passengers onboard AI 171 .

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