On 23rd May 2025, the Central Government issued a fresh statutory order (S.O. (E)) exercising its powers under Section 3 read with Section 5 of the Foreign Trade (Development & Regulation) Act 1992 and Paras 1.02 & 2.01 of the Foreign Trade Policy 2023.
This order rescinds Public Notice 23(RE‑2013)/2009‑14 dated 13th August 2013 and, with immediate effect, sweeps away two long‑standing export conditions that had shaped India’s leather trade for more than a decade.
What Exactly Has Changed?
Revoked Condition | Earlier Requirement | Status Now |
Port restrictions on the export of Finished Leather, Wet Blue Leather & EI‑Tanned Leather | Shipments were permitted only through a limited list of designated sea/air ports. | Removed – exporters may now ship through any Indian port. |
Mandatory drawal of samples, testing & certification by the Central Leather Research Institute (CLRI) for Finished Leather, Wet Blue Leather, Crust Leather & EI‑Tanned Leather | Every export consignment required CLRI sampling, lab testing and a quality certificate before customs clearance. | Abolished – CLRI involvement is no longer required for export clearance. |
Effective date:
The relaxations apply immediately to all shipments exported on or after 23rd May 2025.
Why Does This Matter?
- Reduced dwell time: Eliminating CLRI sampling can shave 2‑3 working days off the average export cycle.
- Cost savings: Testing & certification fees (₹4,000 – ₹8,000 per consignment) disappear, directly improving your FOB margins.
- Logistics flexibility: Freedom to route cargo through the nearest or most cost‑effective port lowers inland haulage expenses and mitigates port‑congestion delays.
- Working‑capital relief: Faster clearance translates into quicker realisation of export proceeds and lower interest costs.
Immediate Action Points for Exporters
- Update shipping instructions & purchase orders – remove outdated CLRI clauses.
- Inform your freight forwarders & CHA that CLRI certificates are no longer mandatory.
- Revise internal QC check‑lists – retain your own quality checks, but drop CLRI paperwork.
- Re‑negotiate delivery timelines with overseas buyers, leveraging the shorter turnaround.
- Monitor DGFT notifications for any subsequent clarifications or FAQs.
Impact on the Leather Ecosystem
- Manufacturers & tannery clusters in Tamil Nadu, Karnataka, Telangana and Uttar Pradesh will see quicker outward movement of finished stock.
- Logistics operators gain routing freedom, likely increasing throughput at inland container depots (ICDs) and minor ports such as Kattupalli and Krishnapatnam.
- Overseas buyers may shift orders back to India, attracted by reduced lead times.
The Compliance Lens
While CLRI certification is gone, the following obligations remain intact:
- Filing e‑SANCHIT documents and uploading the self‑declared quality certificate.
- Adherence to REACH, CPSIA and other market‑specific standards demanded by destination countries.
- Maintenance of proper records for GST, DGFT and customs audits for a period of 5 years.
Conclusion
The removal of port‑wise routing and CLRI testing marks a significant liberalisation of India’s leather export regime. Exporters who move swiftly to realign their logistics and documentation stand to gain a clear competitive edge.
Notification Reference: DGFT
Notification No.15/2025-26
26/05/2025
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