India: United Breweries wants to face the removal of protectionist measure of additional custom duties

United Breweries (UB) is willing to face the removal of protectionist measure of additional custom duties by the Government of India on liquor, India Business Insight reported June 20.

UB, which has more than 50 percent market share in the Indian made foreign liquor segment, had demanded for protectionist measures since 2001. At present, the tariff on imported brands is in the range of 225 percent to 550 percent.

Under the new proposal, the imported liquor would have state levies as well as 150 percent basic custom duty, which is permitted under the World Trade Organisation (WTO) obligations.

The new regulation is likely to become operational later in 2007. The Scotch Whisky Association (SWA), the European Union and other international liquor bodies had asked WTO to look into additional custom duties levied by the Government of India. With the abolition of the additional custom duties, SWA expects scotch whiskeys to capture five percent share of the Indian market by 2015.

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