Introduction of Indian leather
- In today’s time, the importance of leather products has increased. Wherever we look, we need leather products. Like, kitchen, footwear, bag, jacket, watch, wallets, furniture, sportswear, belt, automobile accessories, etc. India exports billions of dollars every year. India is the 5th largest exporter and 2nd largest producer of leather in the world.
- This industry increases day by day. Because people are forward to fashion, and leather is the best product in the fashion industry.
Animal skin-wise leather
- Buffalo Leather
- Horse Leather
- Goat Leather
- Sheep Leather
- Lamp Leather
- Pig Leather
- Other Animal Leather
Advantages of Leather
- Long lasting
- Repairable
- Recycle
- Versatile
- Comfortable
- Beautiful and Luxurious
HS Code of Leather
- Raw Leather Chapter no: -41
- Finished Leather Chapter no :-42
- Finished Leather: -42023120
Government Benefits
- Duty Drawback DBK :- 5.30% or 78.9 Per Piece (Whichever is low)
- RoDTEP :- 1.20%
Council of Leather Export (CLE)
- The Council for Leather Export (CLE) is the organization that develops and grows the Indian leather and leather product industry. CLE is developing the Indian leather sector and enhancing the growth of export leather from the Indian global trade ministry of commerce. The government of India is handling CLE. CLE is promoting Indian leather at a global level and providing guidance on how to export leather from India.”
Objectives of CLE
- The Council of Leather Export is developing leather industrial development and leather export.
- CEL is promoting Indian leather for global reach. It promotes Indian leather products at the world level.
- CEL is providing necessary information to the global importer for establishing business collaboration with Indian companies.
Activities of Council of Leather Export
- The Council of Leather Export is publishing information on commercial, technical, and technological developments in the Indian leather industry.
- CLE participates in international trade fairs and specialized trade shows across the world.
- It meets the buyer and seller at a single place and organizes a leather show.
- It is inviting resource persons/exports to the trade fair, work shop, and seminar to exchange information, knowledge, ideas, and strategies.
Interest Equalization Scheme for Pre & Post shipment credit Export
- Manufacturer Exporter: -3%
- Merchant Exporter: – 2%
Total Market Size
- Total market size of leather product export is Rs. 24000 crore.
- India is the 4th largest leather goods exporter in the world.
- Exports of leather and leather products touched $5 billion during 2019-2020.
Sourcing of the leather in India
- Tamil Nadu
- West Bengal
- Utter Pradesh
- Maharashtra
- Punjab
- Karnataka
- Telangana
- Haryana
- Delhi
- Madhya Pradesh
- Kerala
- Rajasthan
- Jammu Kashmir
Different countries importing leather from India
- USA
- Germany
- U.K
- Italy
- France
- Spain
- Netherland
- UAE
- China
- Hongkong
- Belgium
- Poland
Different countries produced leather
- China
- Russia
- Italy
- Argentina
- Brazil
- India
- South Korea
Documentation in Leather Export
One time documentation
- Company Registration
- IEC
- RCMC (APEDA)
- Company Registration
- GST Certificate
- Wild life protection certificate
- Animal quarantine department
- AD Code
All time Documentation
- Performa Invoice
- Packing List
- Bill of Lading
- LR Lorry Receipt
- Insurance Certificate
- Fumigation Certificate
- BRC Bank Realization Certificate
Optional
- Testing Report
- COO Certificate of Origin
Packaging in Leather export
- First product keeps in PP bag, then put in corrugated box.
- Other packaging material is used in leather export.
- Eco-friendly packaging
- Wooden Box
- Cotton bag
- Bubble raping
How to transport Leather
- Leather is a non-damage and durable product. Leather can be easily transferred from one place to another. By road, by sea, by air.
Insides in Leather export
- We have to maintain finishing and quality control in leather products.
- You can see in leather products that there are lots of varieties available. You have to learn all the product information.
Types of Leather
- 1st grade leather — Best quality
- 2nd grade leather — Medium quality
- 3rd grade leather — Not good quality
- Poor quality leather
- Full grain leather
- Fine leather
- Top grain leather
- Corrected grain
- Bonded leather
Procedure of leather export
- Take price from supplier
- Take price from CHA
- Start finding buyers.
- When the buyer is ready to buy, then send the catalogues and quotation.
- Sign Performa invoice or contract
- Then receive 30% advance payment and 70% against BL.
- Supplier will arrange goods
- Packaging of the goods
- Then the consignment is ready to move port
- When consignment is clear custom, then call the buyer for another pending payment and send the document to the buyer through courier.
Profit margin in leather export
- Profit margin in leather products is high as compared to other products. Profit margin in leather products is 50% or more than 50% margin.
How to find buyer for Leather
- Paid Data
- Indian Embassy
- Website/Blog
- Social Media
- Friends & Relatives
- E-mail Marketing
- Exhibition Google Map
- Find Buyer from agent
- B2B Website
- Countries Wise Directories
- Country wise Yellow Pages
Offline Buyer Find
- Export Promotion Bodies
- Chamber of Commerce
- Third Party Agencies
- Market Research Companies
- Industry Resource and Personal
- Exhibition and Trade Fair
- Open Office in abroad
- Trade Delegation
- Personal visit in target market
- Friends and Relatives
Best B2B website for buyer inquiry
- Alibaba
- India Mart
- Trade India
- Go4World Business
- Jim Trade
- Trade Ford
- Amazon Business
- Exporter India
Ways of finding suppliers for Leather Export
- Indian B2B websites like India Mart, Trade India
- Personally visit the supplier. Kolkata, Kanpur, Agra, and other many states produce leather. You can meet the supplier and start business.
- Find Leather Business Directory, In the leather business directory, register all the businesses that have a leather business.
- Find a leather exhibition directory, in this directory, we get a genuine supplier of leather. This directory has an exhibition organizer or their websites.
Payment terms in Leather Export
- 100% Advance
- 30% Advance & 70% Before Delivery
- 30% Advance & 70% Copy of BL
- 30% Advance & 70% Document against payment
- 30% Advance & 70 Document against accept
- 50% Advance & Letter of Credit
- 100% Document against payment DP
- 100% Document against acceptance 30 days DA
- 100% Letter of Credits