Budget 2025: Export Duty Reduced on Crust Leather

Seeks to further amend notification No. 27/2011-Customs dated 30th June, 2017 so as to reduce the export duty on crust leather

Ministry of Finance has issued Notification No. 03/2025-Customs, amending the principal Notification No. 27/2011-Customs dated March 1, 2011, to revise export duties on specific leather products. Effective February 2, 2025, the changes primarily focus on reducing export duty on crust leather, categorized under specific tariff headings, which will now attract zero export duty. Amendments have been made to entries concerning tanned hides and skins of bovine and equine animals, tanned skins of sheep and lambs, and other animal hides. Additionally, a new entry, “Crust leather (hides and skins),” has been included with a nil duty rate, encompassing specific tariff codes like 4104 41 00 and others. This step aligns with the government’s initiative to enhance competitiveness in the global leather market. The notification supersedes prior amendments made in July 2024 and is issued under Section 25(1) of the Customs Act, 1962. Businesses and exporters dealing in leather products should take note of the revised duty structure to ensure compliance and leverage cost advantages.

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)

Notification No. 03/2025-Customs| Dated: 1st February, 2025

G.S.R… (E).- In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 27/2011- Customs, dated the 1^st March, 2011, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 153(E), dated the 1^st March, 2011, namely :-

In the said notification, in the Table,-

(i) against serial number 25C, for the entry in column (3), the following entry shall be substituted, namely :- “Tanned hides and skins of bovine (including buffalo) or equine animals, other than I. tanned leather”;

(ii)  against serial number 25D, for the entry in column (3), the following entry shall be substituted, namely :- “Tanned skins of sheep or lambs, other than E.I. tanned leather”;

(iii)  against serial number 25E, for the entry in column (3), the following entry shall be substituted, namely :- “Tanned hides and skins of other animals, other than E.I. tanned leather”;

(iv) after No. 25I and the entries relating thereto, the following S. No. and the entries shall be inserted, namely:-

2. This notification shall come into force on the 2^nd day of February, 2025.

[F. No. 334/03/2025-TRU]

(Amreeta Titus)
Deputy Secretary to the Government of India

Note: The principal notification No. 27/2011-Customs, dated the 1st March, 2011 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 153(E), dated the 1^st March, 2011 and last amended vide notification No. 37/2024-Customs, dated the 23rd July, 2024, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub- section (i), vide number G.S.R. 440(E), dated the 23^rd July, 2024.