New Delhi, Nov. 2 -- The government has assured domestic liquor makers that the ambiguity over the customs classification of bulk Scotch whisky imports will be resolved amicably, three people aware of the matter said. The development came after the Union commerce secretary met industry representatives from the International Spirits & Wines Association of India (ISWAI) and the Confederation of Indian Alcoholic Beverage Companies (CIABC) on Monday.

The dispute centres on how bulk Scotch whisky imported into India should be classified for customs purposes. Under the FTA, import duty on eligible Scotch whisky fell from 150% to 75%, with a gradual reduction to 40% over 10 years. The industry argues that bulk Scotch, which is imported in large...