CBIC Lifts Port and Testing Restrictions on Leather Exports | June 2025 Update
By Aaerm Law Associates | June 3, 2025
🧭 Introduction
In a progressive step to strengthen India’s leather export industry, the Central Board of Indirect Taxes and Customs (CBIC) released Instruction No. 13/2025-Customs on June 2, 2025. This directive removes long-standing port restrictions and mandatory testing requirements for exporting finished leather, wet blue leather, El tanned leather, and crust leather.
This policy change is expected to simplify procedures, cut operational costs, and make Indian leather goods more globally competitive.
📌 Key Changes in the CBIC Instruction
The instruction clearly outlines the removal of several regulatory hurdles. Let’s explore the highlights:
1. Port Restrictions Removed
CBIC has lifted all previous restrictions on designated ports for exporting finished leather, wet blue leather, and El tanned leather. Exporters are now free to ship from any port, improving flexibility and reducing transit time.
2. Testing by CLRI No Longer Required
The mandatory testing and certification by the Central Leather Research Institute (CLRI) is no longer needed. This applies to:
- Finished Leather
- Wet Blue Leather
- Crust Leather
- El Tanned Leather
As a result, exporters will experience faster clearances and lower compliance costs.
3. 2013 Instruction Withdrawn
CBIC has officially withdrawn its April 16, 2013 instruction, which introduced strict inspections to prevent semi-processed leather from being falsely exported as finished leather.
🌍 Positive Impact on India’s Leather Sector
This policy shift is likely to transform the leather export ecosystem in several ways:
✔ Enhanced Global Competitiveness
Exporters no longer need to spend time and resources on restrictive inspections or certifications. This will lower product costs and increase pricing competitiveness, particularly in European and American markets.
✔ Increased Export Volumes
Easier compliance encourages exporters to scale operations. As a result, India’s foreign exchange earnings from leather goods may see a significant boost.
✔ Job Creation and Industry Growth
A growing export market typically leads to job creation across the leather value chain—from tanneries to logistics. This aligns with the government’s goals of supporting MSMEs and rural employment.
🗣️ Industry Response
Stakeholders in the leather industry have responded positively to this decision:
Council for Leather Exports (CLE)
The CLE applauded the CBIC’s decision, calling it a long-overdue reform that would help exporters overcome regulatory bottlenecks.
Leading Exporters
Exporters across Chennai, Kanpur, and Kolkata welcomed the move. Many emphasized that logistical costs and shipment delays will now reduce, making them more agile and competitive.
🔍 Alignment with National Goals
This instruction aligns with several national initiatives:
- Make in India: Encourages domestic production and value addition
- Ease of Doing Business: Cuts red tape in customs procedures
- Export Promotion Policy: Enhances India’s image as a global manufacturing hub
📃 Legal Framework
The new instruction is supported by DGFT’s Office Memorandum No. 15/2025-26 dated May 26, 2025, which confirmed the removal of conditions related to ports and CLRI testing. CBIC’s formal instruction on June 2 ensures these updates are applied uniformly across customs jurisdictions.
Officials are instructed to sensitize field staff immediately. Additionally, all previous conflicting instructions are deemed withdrawn.
📈 What Exporters Should Do Now
Here’s how stakeholders can respond quickly to this change:
- Update Documentation: Remove references to old port or testing conditions from your export files.
- Inform Buyers: Communicate shorter lead times to international clients.
- Coordinate with CHA & Port Authorities: Ensure all port offices are aware of the new directive.
- Monitor Notifications: Stay updated with any clarifications from CBIC or DGFT.
✅ Conclusion
CBIC’s Instruction No. 13/2025-Customs represents a decisive shift toward a more business-friendly export regime. By eliminating port restrictions and testing requirements, the government has reduced bureaucracy and boosted confidence among exporters.
As India seeks to solidify its position in the global leather market, such regulatory reforms will prove crucial. For now, stakeholders across the board are optimistic—and rightly so.
