👜 Big Relief for Leather Exporters: DGFT Removes Port Restrictions & CLRI Testing

📅 Published on: May 27, 2025
✍️ By CA M.F. Khan | Indian EXIM Compliance Expert
🌐 www.camfkhan.com

📢 DGFT Issues Major Export Policy Update – Notification No. 15/2025-26

In a landmark decision, the Directorate General of Foreign Trade (DGFT) has issued Notification No. 15/2025-26 dated May 26, 2025, revoking several key restrictions on the export of finished leather products. This move is expected to provide a major boost to Indian leather exporters, enhancing global competitiveness and ease of doing business.

🔗 Official Notice: Click here to view on DGFT portal

🚢 What Has Changed? – Key Highlights

✅ 1. Port Restrictions Removed

Exporters can now ship the following leather products from any port or Inland Container Depot (ICD):

• Finished Leather

• Wet Blue Leather

• EI Tanned Leather

Previously, exports were restricted to specific ports, complicating logistics for many exporters across India.

✅ 2. CLRI Certification No Longer Required

The mandatory testing and certification by the Central Leather Research Institute (CLRI) has been dispensed with for the following leather types:

• Finished Leather

• Wet Blue Leather

• Crust Leather

• EI Tanned Leather

This reform eliminates delays, reduces costs, and simplifies compliance procedures.

✅ 3. Tariff & Duty Reforms

Significant tax incentives have been introduced:

• Basic Customs Duty (BCD) on Wet Blue Leather has been reduced from 10% to 0%, effective February 2, 2025

• Export Duty on Crust Leather has been completely eliminated

These changes are likely to lower the overall cost burden on exporters, making Indian leather more price-competitive globally.

💡 Why Were These Changes Made?

Historically, the restrictions were designed to:

• Prevent the illegal export of raw hides

• Ensure export quality through CLRI verification

However, the government has observed that:

• Export taxes no longer apply

• There is now a clear distinction between raw and processed leather

• India's leather industry is ready for greater autonomy and global expansion

These changes align with India’s broader goal of enhancing ease of doing business and strengthening exports in key manufacturing sectors like leather.

📈 Impact on the Leather Industry

This policy shift is a game-changer for:

• MSME exporters in non-port cities

• Large-scale exporters seeking cost and time efficiency

• Global buyers looking for stable and scalable suppliers from India

By lifting outdated compliance barriers, the Indian government is making the sector leaner, faster, and globally aligned.

📌 Conclusion

The easing of port restrictions and removal of CLRI testing are progressive moves that reflect the maturity of India's leather export ecosystem. Exporters should align quickly with the new norms and take advantage of the relaxed policies to expand their global footprint.

📩 For assistance with leather export compliance, DGFT procedures, or international trade consultancy:

👉 Contact: www.camfkhan.com

👨‍💼 About the Author

CA M.F. Khan is a Chartered Accountant with expertise in:

• Indian EXIM Compliance

• E-Commerce Exports

• UAE & USA Business Tax Advisory

• Global Trade Setup for Amazon FBA & B2B platforms

Visit: www.camfkhan.com for more insights and personalized consultation.