Revenue Intelligence Agency Seizes Consignments Belonging to Radico Khaitan Over Trade Agreement Tariff Disputes

Radico Khaitan has encountered enforcement action involving the seizure of consignments by the Directorate of Revenue Intelligence (DRI) over disputes regarding product classifications linked to the India-United Kingdom Free Trade Agreement (FTA). The investigative agency is probing whether the imported items met the strict rules of origin and classification criteria required to claim concessional customs duty rates under the bilateral trade pact. Customs and international trade regulations grant preferential import duties on specific goods originating from partner countries that have signed free trade pacts with India, provided importers furnish valid certificates of origin and satisfy value-addition thresholds.

When enforcement authorities suspect misclassification or improper claims of preferential duty, they initiate investigations, demand differential duties, and execute provisional or absolute seizures of disputed cargo. The standard procedure requires importers to establish compliance with trade agreement notifications, whereas revenue authorities scrutinize product descriptions and technical specifications to prevent tariff evasion. Corporate tax teams and customs consultants must conduct rigorous compliance audits of all import documentation, bills of entry, and country-of-origin certificates when utilizing bilateral trade agreements.

Businesses should maintain detailed technical justification files for every imported product line to withstand sudden scrutiny from revenue intelligence officials. In short, this case highlights the growing enforcement risks surrounding trade treaty classifications, directly impacting working capital and supply chain timelines for importers.