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.
In a submission to the commerce ministry, the Confederation of Indian Alcoholic Beverage Companies (CIABC) has proposed slashing the effective customs (or import) duty on bottled products such as wines and spirits from 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.
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 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.