Govt removes port restrictions on certain value-added leather products

Leather exporters said the move would help in boosting the exports.

The government on Monday removed port restrictions on exports of certain kinds of value-added leather products, including finished, wet blue and El tanned, a move hailed by sector exporters.

It has also revoked the requirement for testing and certification by the Central Leather Research Institute (CLRI) for finished Leather, wet blue Leather, crust leather and El (East India) tanned leather.

"The notification removes, with immediate effect, port restrictions on the export of" these leather products, the Directorate General of Foreign Trade (DGFT) said in a notification.

Leather exporters said the move would help in boosting the exports.

An official said this step is expected to reduce the compliance burden and improve ease of doing business for exporters.

Export of finished leather, wet blue leather, and EI-tanned leather is now allowed from any port or Inland Container Depot (ICD). Earlier, these exports were restricted to specific notified ports.

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 official said.

The decision was taken after consultations with stakeholders, including the Council for Leather Exports, exporters and CLRI.

It is expected to streamline export procedures, reduce transaction costs, and benefit MSME exporters in particular.

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 official added.

The country's leather, non-leather footwear and products exports rose by about 25 per cent year-on-year to USD 5.7 billion in 2024-25, and shipments are likely to cross the USD 6.5 billion mark this fiscal, exporters' body CLE has said.