Centre Reduces Customs Duty on Bourbon Whiskey to 50%, keeps other Alcoholic Beverages at 100% [Read Notification]
The Ministry of Finance reduced the customs duty on bourbon whiskey to 50%, and other alcoholic beverages remained taxed at 100%
![Centre Reduces Customs Duty on Bourbon Whiskey to 50%, keeps other Alcoholic Beverages at 100% [Read Notification]](https://www.taxscan.in/wp-content/uploads/2025/02/Customs-Duty-Bourbon-Whiskey-Alcoholic-Beverages-taxscan.jpg "Centre Reduces Customs Duty on Bourbon Whiskey to 50%, keeps other Alcoholic Beverages at 100% [Read Notification]")
The Ministry of Finance ( Department of Revenue ) issued Notification No. 14/2025-Customs, dated February 13, 2025, announcing a revision in customs duty rates for alcoholic beverages. The notification reduces the customs 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...
The Ministry of Finance ( Department of Revenue ) issued Notification No. 14/2025-Customs, dated February 13, 2025, announcing a revision in customs duty rates for alcoholic beverages. The notification reduces the customs 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 attract 100% customs duty.
The amendment, made under the Customs Act, 1962, read with Section 124 of the Finance Act, 2021, was introduced in the interest of trade and economic policy adjustments.
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As per the notification, the customs duty changes are outlined in the following table:
| Sl. No. | Tariff Item | Description of Goods | Customs Duty |
| 9 | 2204, 2205, 2206, 2208 (other than tariff item 2208 30 11 and 2208 30 91) | All goods (other than bourbon whiskey) | 100% |
| 9C | 2208 30 11, 2208 30 91 | Bourbon whiskey | 50% |
The bourbon whiskey market in India is small but expanding, with increasing consumer interest in premium spirits. Bourbon accounts for less than 1% of the total Indian whiskey market, rising disposable income and a shift toward luxury drinking experiences have fueled demand for high-end options like bourbon.
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The lower duty on bourbon whiskey is expected to encourage more imports and make bourbon more competitively priced. This move benefits American whiskey producers, particularly as brands like Weller gain popularity in India. Other imported alcoholic beverages, including Scotch whisky and wine, will continue to face a 100% customs duty, keeping their prices high.
The new customs duty rates take effect immediately from February 13, 2025. The last amendment to this policy was made under Notification No. 06/2025-Customs, dated February 1, 2025.
To Read the full text of the Notification CLICK HERE
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