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India, August 7th 2008
Another turn in India’s excise drama

by Subhash Arora
 
The government of Maharashtra, India’s wine producing state, has temporarily allowed shipments of imported wines lying ready for shipment post payment of customs and excise duties. It had abruptly stopped all shipments five weeks ago, pending the announcement of a new policy.

The earlier circular effectively froze the sale of imported wine, beer and spirits in the state. According to a Mumbai distributor who would not give his name, the government has allowed a trade to trade transfer; wine that has had excise paid and which is lying at the distributor's warehouse may be released to the licensed customers like hotels and restaurants.

However, no fresh shipments may be made till the new policy is announced. 'Hopefully tomorrow 'is the standard response of the excise officials for all queries regarding the date of re-starting de-bonding and shipments.

The underlying cause for the abrupt suspension is the pressure from the federal government to adopt a uniform policy for Indian and imported wines. Both the USA and EU have threatened to file a complaint with WTO again on the grounds that the state is discriminating against the imported wines and spirits.

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