The Ministry of Finance (Department of Revenue) has issued Notification No. 14/2025-Customs, dated February 13, 2025, revising customs duty rates on alcoholic beverages.
The notification reduces the duty on bourbon whiskey (tariff items 2208 30 11 and 2208 30 91) to 50%, while other alcoholic beverages under tariff items 2204, 2205, 2206, and 2208 (excluding bourbon whiskey) will continue to be subject to a 100% customs duty.
This amendment, enacted under the Customs Act, 1962, in conjunction with Section 124 of the Finance Act, 2021, aims to align trade policies with evolving economic strategies.
India’s bourbon whiskey market, though small, is growing steadily as consumer interest in premium spirits rises. Currently, bourbon accounts for less than 1% of the country’s whiskey market, but increasing disposable income and a shift toward luxury drinking experiences have fueled demand for high-end options.
The reduced duty on bourbon whiskey is expected to boost imports and enhance its competitive pricing, benefiting American whiskey producers, particularly as brands like Weller gain popularity in India. Meanwhile, other imported alcoholic beverages, including Scotch whisky and wine, will continue to face a 100% customs duty, maintaining their premium pricing.
The revised customs duty rates take effect immediately from February 13, 2025. The last amendment to this policy was introduced under Notification No. 06/2025-Customs, dated February 1, 2025.
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