The Delhi Excise Department has directed wholesale liquor licence holders to apply for a revision of the maximum retail prices (MRPs) of imported liquor brands covered under the India-UK Comprehensive Economic and Trade Agreement (CETA), following a reduction in customs duty on such products.

The revised duty comprises 25% Basic Customs Duty and 50% Agriculture Infrastructure and Development Cess. (Representational)

In an order issued last month, the department said the trade agreement, which came into effect on July 15, has reduced the aggregate effective customs duty on specified liquor imports from the UK from 150% to 75% of the assessable value.

The revised duty comprises 25% Basic Customs Duty and 50% Agriculture Infrastructure and Development Cess.

The department said the reduction in customs duty requires a corresponding revision to the MRPs of affected brands, as customs duty is a direct component of the formula used to determine the maximum retail price of imported liquor under the terms and conditions for L-1F licences for 2026-27.

“All the L-1F licensees whose registered brands fall under the tariff items covered by the ... notification” have been directed to submit applications for MRP revision, said the order.

The licence holders have been directed to submit details of the revised cost card, a self-attested copy of the latest Bill of Entry and the Unique Reference Number (URN) of the certified Origin Declaration.

The department has also directed licensees to submit the required documents.

The department warned that failure to furnish the required information could invite action under the terms and conditions of the L-1F licence and provisions of the Delhi Excise Act and Rules.

According to excise department officials, the excise department is analysing prices, and the final decision will be taken once the excise commissioner is appointed.

Ravi Jha, who was holding the excise charge, was transferred to Arunachal Pradesh last month.

“The final decision will be taken once the commissioner is appointed. The government does not want to rush into the decision. There is an existing stock in the market. If the prices get revised, the new stock will come with a low price tag,” the official said, on the condition of anonymity.

As the old stock will be difficult to sell if prices are revised, the department may set a cut-off date for the availability of new stock at lower prices, the official said.

The excise department is also studying how the revised tariff structure will affect liquor prices in the Capital.