Leather Exports Get a Major Boost: Govt Scraps Port and Testing Restrictions

In a landmark move to energize India’s leather export sector, the government has eliminated two major procedural hurdles, making it easier and faster for exporters to ship value-added leather products worldwide.

Key Highlights:

The Directorate General of Foreign Trade (DGFT) has removed port restrictions on the export of finished leather, wet blue leather, and EI (East India) tanned leather.

Exports of these products are now permitted from any port or Inland Container Depot (ICD), ending the previous requirement to use only specific notified ports.

The government has revoked the mandatory testing and certification by the Central Leather Research Institute (CLRI) for finished, wet blue, crust, and EI tanned leather.

These checks were originally put in place to distinguish processed leather from raw hides and monitor dutiable items, but have become redundant due to the removal of export duties and clear physical distinctions between product types.

The reforms are expected to streamline export procedures, reduce transaction costs, and especially benefit MSME exporters.

The decision follows consultations with key stakeholders, including the Council for Leather Exports, exporters, and CLRI.

This move is part of a broader government push to enhance India’s export competitiveness in the global leather value chain while maintaining transparency and quality standards under general customs provisions.

The sector has already shown strong growth, with leather, non-leather footwear, and related product exports rising by about 25% year-on-year to USD 5.7 billion in 2024–25, and projections to cross USD 6.5 billion this fiscal.

Industry Reaction:
Exporters have welcomed the announcement, citing improved ease of doing business and a significant boost to India’s leather export ambitions.

Source: Mint