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Time of India
26-05-2025
- Business
- Time of India
Alcohol makers seek phased import duty cuts, strong safeguards to prevent EU FTA misuse
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. "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. "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.>
Time of India
26-05-2025
- Business
- Time of India
Alcohol makers seek phased import duty cuts, strong safeguards to prevent EU FTA misuse
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.
Economic Times
26-05-2025
- Business
- Economic Times
Alcohol makers seek phased import duty cuts, strong safeguards to prevent EU FTA misuse
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel 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 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 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."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 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."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 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 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 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 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 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/ 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 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.
Economic Times
16-05-2025
- Business
- Economic Times
Import duty cuts on wine in FTAs may hurt local makers: CIABC
Alcoholic beverage maker's body CIABC on Friday said any import duty cuts in future trade deals on wine could hurt the domestic makers, as concessional tariffs on imported spirit from the EU, US, Australia and New Zealand may flood the Indian market. The Confederation of Indian Alcoholic Beverage Companies (CIABC) also suggested the government to impose a minimum import price clause to prevent inbound shipments of low-cost and low-quality bottled spirits, bulk and bottled wines. ADVERTISEMENT It added that the duty reduction agreed by India on Scotch whisky under the free trade agreement with the UK may impact the domestic premium category whisky brands due to the likely influx of lower-priced Scotch whiskies. As per the agreement, India will reduce duty on UK whisky and gin from 150 per cent to 75 per cent and further to 40 per cent in the tenth year of the deal. "If similar duty concessions are granted on other spirits, including wines under future FTAs with wine-producing countries such as those in the EU, USA, Australia and New Zealand it could place undue pressure on domestically produced quality wine brands by opening the Indian market to lower-priced wine imports," CIABC director general Anant S Iyer said. India is not providing any duty concessions on British wines and is offering only limited import duty benefits on UK beer under the free trade agreement between the two countries. India has given the duty concession on wines to Australia under a trade pact, which came into force on December 29, 2022. In that deal, tariffs on premium imported wine were reduced from 150 per cent to 75 per cent. The main wine-producing states include Maharashtra and Karnataka. (You can now subscribe to our Economic Times WhatsApp channel)
Time of India
16-05-2025
- Business
- Time of India
Import duty cuts on wine in FTAs may hurt local makers: CIABC
Alcoholic beverage maker's body CIABC on Friday said any import duty cuts in future trade deals on wine could hurt the domestic makers, as concessional tariffs on imported spirit from the EU, US, Australia and New Zealand may flood the Indian market. The Confederation of Indian Alcoholic Beverage Companies (CIABC) also suggested the government to impose a minimum import price clause to prevent inbound shipments of low-cost and low-quality bottled spirits, bulk and bottled wines. It added that the duty reduction agreed by India on Scotch whisky under the free trade agreement with the UK may impact the domestic premium category whisky brands due to the likely influx of lower-priced Scotch whiskies. As per the agreement, India will reduce duty on UK whisky and gin from 150 per cent to 75 per cent and further to 40 per cent in the tenth year of the deal. "If similar duty concessions are granted on other spirits, including wines under future FTAs with wine-producing countries such as those in the EU, USA, Australia and New Zealand it could place undue pressure on domestically produced quality wine brands by opening the Indian market to lower-priced wine imports," CIABC director general Anant S Iyer said. India is not providing any duty concessions on British wines and is offering only limited import duty benefits on UK beer under the free trade agreement between the two countries. India has given the duty concession on wines to Australia under a trade pact, which came into force on December 29, 2022. In that deal, tariffs on premium imported wine were reduced from 150 per cent to 75 per cent. The main wine-producing states include Maharashtra and Karnataka.
