While India and the European Union (EU) are close to a trade agreement, manufacturers of local alcoholic beverages have requested a gradual reduction in tasks on wines and minds rather than an immediate radical reduction. They also demanded adequate guarantees to prevent improper use of relaxations in the treaty.
In a letter to the Ministry of Commerce, the Confederation of Indian alcoholic beveraging companies (CIABC) said that imported imports on bottled products such as wines and spirits should exceed a period of 10 years. The government can immediately reduce 100% 150% tasks, then bring them further back to 50% in 10 years. He also suggested similar cuts for loose wines.
For bulk spirits, the industry body recommended an even higher reduction from 150% to 75% immediately and gradually bringing them to 25% in a decade.
In the FTA with the United Kingdom, recently finalized, India has agreed to lower prices on whiskey and Gin to 75%, going from 150% immediately and more to 40% after the end of a 10-year period
However, the CIABC warned that tariff concessions should be closely linked to the measures preventing misuse of the ALE by the transith or subinvolution, in particular between the EU and third countries like the United Kingdom.
“There is a porous border between Northern Ireland and the South (Ireland Republic) which offers a significant extent for unscrupulous elements to import additional neutral alcohol in the United Kingdom and transmit it to India as Gin and Vodka after the cosmetic value added,” he said.
In addition, there is no customs service on alcoholic beverages between the EU and the United Kingdom, and with low transport costs, there is a large range for alcoholic drinks produced in the United Kingdom, both in bottles and in bulk, as transport in India, he added.
He also put pressure for rules of strict origin and minimum import price thresholds (MIP) to protect the national industry against cheap imports of wines and spirits.
“Under the billing of alcoholic beverages, it is crawling and the domestic market is already flooded with alcoholic drinks at low prices imported to CIF values (cost, insurance, freight) of $ 3 or even less per bottle of 750 ml. A backup against these malprations is the most essential and, therefore, the inclusion of minimum import prices is highly recommended ”, the CIABC director general said.
He strongly recommended the imposition of a minimum import price (MIP) of $ 5 per bottle of wines of 750 ml (similar to the trade agreement with Australia) to qualify for any reduction in prices. On bulk wines, the CIABC recommended a MIP of $ 6.70 per liter in bulk.
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