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Government eases port restriction for leather exporters to enhance trade

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New Delhi | May 27, 2025 8:13:55 AM IST
In a move to facilitate leather traders, the Union Government has removed key procedural restrictions on the export of value-added leather products.

Easing port norms will enhance the export of leather from the country and enhance Ease of Doing Business in India.

The Directorate General of Foreign Trade (DGFT), Ministry of Commerce & Industry, has issued a Notification No. 15/2025-26 dated May 26, 2026, removing key procedural restrictions applicable to the export of value-added leather products.This step is expected to reduce compliance burden and improve ease of doing business for exporters, the Commerce Ministry said.

Port restrictions have been withdrawn, allowing export of Finished Leather, Wet Blue Leather, and EI Tanned Leather from any port or Inland Container Depot (ICD).

Earlier, these exports were restricted to specific notified ports. The mandatory requirement for testing and certification by the Central Leather Research Institute (CLRI) for export of Finished Leather, Wet Blue Leather, Crust Leather, and EI Tanned Leather has also been dispensed with.

These procedural requirements were originally instituted to monitor the export of value-added leather products and distinguish them from raw hides and dutiable items.

However, with the removal of export duties on such leather categories and the clear physical distinction between processed and raw leather, the existing checks were considered redundant.

The decision follows consultations with stakeholders, including the Council for Leather Exports, Leather Exporters and Central Leather Research Institute (CLRI).

It is expected to streamline export procedures, reduce transaction costs, and benefit MSME exporters in particular, the Commerce and Industry Ministry added.

The Council for Leather Exports (CLE) has set a target of USD 47 billion by 2030, of which USD 13.7 billion is for the export sector.

The government has implemented several reforms to boost trade and industry. The Basic Customs Duty (BCD) on wet blue leather has been reduced from 10 per cent to zero, effective 2nd February 2025, addressing a key industry demand, while export duty on crust leather has been eliminated.

The reforms also support India's efforts to enhance export competitiveness in the global leather value chain while maintaining transparency and quality standards under general customs provisions, the Ministry added. (ANI)

 
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