New Delhi, Nov. 11 -- Indian customs authorities are holding more than 80 containers of bulk Scotch whisky imported by Pernod Ricard and Diageo over a dispute on the applicable import duty under the India-UK trade agreement.

The dispute centres on whether bulk Scotch concentrates used in manufacturing whisky brands qualify for the reduced 75 Percent import duty under the trade pact, which came into effect in July. Customs investigators maintain that the concession applies only to finished products, such as bottled Scotch, and not to concentrates that undergo further processing. They have insisted that the shipments attract a 150 Percent duty, TOI reported.

Following industry representations, the Commerce Ministry assured senior executiv...