Indian Finance Minister Nirmala Sitharaman has announced a major foreign trade liberalization plan for the Finance Bill 2024-2025. A plan that provides for the reduction of import duties on leather at different stages of processing: wet white, crust, and finished. From July 24, duties on leather imports will decrease from an average of 10% to zero, writes laconceria.it.
Experts believe that the decision to reduce duties on leather imports in India is a measure to support its own large producers of leather goods and may be associated with the entry into force of the European EUDR regulation (EU Deforestation Regulation) from December 30, 2024.
The EUDR effectively imposes its own discipline to monitor the import of bovine hides at each stage of processing, but these rules do not apply to finished leather products. Thus, anyone who imports wet blue leather into the EU must undergo a comprehensive check, as required by the regulations. But the import of finished leather products, such as bags or shoes, is not subject to the regulations.
Perhaps import liberalization is a way to make India a more convenient manufacturing hub for those who want to create leather goods for the European market without the burden of European regulations.
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