The World Trade Organisation’s appellate body has ruled in favour of an appeal made by the US against the high customs dutes imposed by India on wines and spirits. The ruling will, however, not impact the duties and prices of imported liquor in India. These were already lowered as per commitments made to the WTO last July following complaints from the EU and the US.

The EU and the US had appealed against the customs duties (ACD) imposed by India on wines and spirits over and above the basic customs duties to offset state taxes imposed on domestic liquor. India decided to withdraw the ACD in July last year, reducing its customs duty to 150%.

India, however, is concerned about a fresh complaint made by the EU against the states like Goa, Maharashtra and Tamil Nadu. These states levy much higher taxes on imported liquor compared to the domestically produced variant and this goes against the WTO concept of national treatment, according to the complainant. The Centre is talking to the states concerned in an attempt to resolve the issue.