New Delhi, May 26, 2025, in a noteworthy move to simplify leather exports and minimize compliance burdens, the Directorate General of Foreign Trade (DGFT) has announced the exclusion of port restrictions and mandatory testing requirements for the export of Finished Leather, Wet Blue Leather, EI Tanned Leather, and Crust Leather. The new policy, which is effective immediately, aims to benefit exporters in the leather sector, especially micro, small and medium enterprises (MSMEs).

The Ministry of Commerce and Industry, exercising powers under the Foreign Trade (Development & Regulation) Act, 1992, has withdrawn the earlier public notice that imposed specific port restrictions and needed mandatory testing and certification by the Central Leather Research Institute (CLRI).

Key Changes in the Notification:

• Port restrictions on exports of Finished Leather, Wet Blue Leather, and EI Tanned Leather have been lifted.
• Compulsory testing and certification by CLRI for exports of Finished Leather, Wet Blue Leather, Crust Leather, and EI Tanned Leather have been withdrawn.

The removal of these procedural barriers is expected to simplify export processes, minimize reversal times, and significantly cut compliance costs for leather exporters.

Boost for Leather Industry and MSMEs

India’s leather industry, which is a major contributor to employment and exports, has long advocated for enabling outdated regulatory standards. MSMEs, which form the backbone of the sector, often face constraints due to high compliance burdens and logistical limitations posed by designated ports. 

By eliminating the port restrictions and removing compulsory testing and certification requirements, the government has opened up better flexibility for exporters to ship goods from any port of their convenience, resulting in improved logistics efficiency and cost savings. Industry leaders have welcomed the step, and called it a "landmark step" that aligns with the government's broader vision to increase ‘Ease of doing Business’ and improving India’s global trade competitiveness.

Global Market Competitiveness

Finished leather, Wet Blue Leather, Crust Leather and EI Tanned Leather are one of India's major export commodities, which are in high demand in Europe, the United States and East Asia. The new policy shift is expected to increase India's capacity to respond to global orders more quickly, enhancing its position in International supply chains.

The DGFT’s decision marks a progressive step towards modernizing the trade policy for leather sector, which supports the development of MSMEs and streamlines export operations. These policy change is expected to strengthen India's position as a key player in the global leather market, while enhancing export potential and streamlining regulatory compliance for leather exporters.