Daijiworld Media Network - New Delhi
New Delhi, May 26: In a move aimed at boosting exports and easing business procedures, the Directorate General of Foreign Trade (DGFT) on Monday lifted key procedural restrictions on the export of value-added leather products.
The Ministry of Commerce announced that the step is set to reduce compliance burdens and enhance ease of doing business for exporters, particularly small and medium enterprises.
Under the new guidelines, port restrictions have been removed, enabling exporters to ship Finished Leather, Wet Blue Leather, and EI Tanned Leather from any port or Inland Container Depot (ICD) across India. Previously, such exports were confined to a list of notified ports.
Additionally, the mandatory requirement for testing and certification by the Central Leather Research Institute (CLRI) has been scrapped. This applies to exports of Finished Leather, Wet Blue Leather, Crust Leather, and EI Tanned Leather.
These procedural requirements were initially introduced to monitor exports and differentiate processed leather from raw hides and dutiable items. However, with the removal of export duties and the clear physical distinction between processed and raw leather, these checks have now been deemed unnecessary.
The decision comes after consultations with key stakeholders including the Council for Leather Exports (CLE), leather exporters, and the CLRI. The reforms are expected to streamline export procedures, cut transaction costs, and significantly benefit MSME exporters.
Officials stated that the changes align with India’s goal of strengthening its position in the global leather value chain while upholding transparency and quality standards under general customs provisions.
India's leather and non-leather footwear exports have seen a 25% surge in FY25, reaching $5.7 billion, and are expected to cross the $6.5 billion mark in FY26, according to the CLE. Demand remains strong from both developed and developing nations.
The footwear and leather industry in India is labour-intensive, employing around 42 lakh people and contributing an overall $19 billion turnover, with $5 billion coming from exports.