Pernod Ricard India on Thursday confirmed that officials from the Directorate of Revenue Intelligence (DRI) visited its premises, amid reports of an investigation into the classification of bulk Scotch whisky imports and the customs-duty concessions claimed under the India-UK trade pact, IANS reported.

Source: IANS

"We confirm that officials from the Directorate of Revenue Intelligence visited our premises. Pernod Ricard India has been fully cooperating with the authorities and providing all information requested," the company told IANS, adding that it remains confident in its position and committed to the highest standards of compliance.

Reuters reported on October 19 that Indian tax officials are investigating whether Pernod Ricard and Diageo wrongly classified some bulk Scotch imports, allowing them to pay lower tariffs introduced under the recently agreed India-UK trade pact, citing five industry sources familiar with the matter. The investigation is an allegation under examination; no findings have been announced.

Source: Reuters via SRN News

According to Reuters, tax inspectors made an unexpected visit last week to Pernod's India headquarters near New Delhi and questioned executives about the imports. Diageo's Indian unit, United Spirits, said in a stock-exchange filing that its offices were searched as part of what it called an "industry-wide exercise"; Diageo told Reuters it is cooperating and has always complied with local laws.

The DRI did not respond to a request for comment, Reuters reported. Import tariff disputes have long been a sore point for foreign investors in India, often involving large back-tax demands raised years after goods were imported, with officials saying they are only enforcing the law.