One bottle of imported whiskey sold by the company from warehouse may be at Rs.100/- before any State taxes/excise. The landed cost of the bottle after heavy customs duty may be 90 and hence, the margin of Rs.10.
Now if you are importing in bulk with lower customs duty, the landed cost per bottle/unit may be lower than bottled one. You incur cost for setting/managing a bottling plant and then sell it as “bottled in India”. So if sold at the previous price, the margins can be high which can be passed on by lower pricing.
Additionally, one may even consider importing in bulk, undertake in-bond manufacturing and then export. Here one dont have to pay import duty as well or even if paid, would get back the duty as drawback or refund.
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