THE DUTY PRESENTLY APPLICABLE ON
RAW MATERIALS, CAPITAL GOODS AND INPUT USED BY THE LEATHER & LEATHER
PRODUCTS INDUSTRY ARE BRIEFLY STATED BELOW:
The raw hides and skins falling under Customs Tariff Heading No. 41.01,
41.02 & 41.02 is exempted from import duty in accordance with
Chapter 41 of the Customs Tariff Act.
The import of wet blue chrome tanned leather, crust leather, finished
leather of all kinds including splits and sides thereof exempted from
customs duty in terms of CN 17/2001 vide SI No. 136. These are exempted
from Countervailing Duty also.
Raw, tanned dressed fur skins etc., including lamb fur skins falling
under Chapter 43.01 & 43.02 have been exempted from Basic Customs
duty in terms of SI No. 137 of CN 17/2001.
265 specified machinery & equipments for use in leather &
leather products Industry are eligible for concessional import duty of
5% as per List 6 of CN 17/2001. And these are also exempted from levy of
Countervailing Duty (CVD)
Certain leather chemicals, finishing axillaries, components,
consumables etc used in leather & leather products Industry are
eligible for concessional import duty 25% CVD equivalent to Central
Excise duty is leviable on such inputs. These are listed under List 3A &
3B of CN17/2001 vide SI No. 159.
The import of saddle tree required for Harness & Saddlery goods
Industry and which fall under Sub Heading 3926.90 of the Customs Tariff,
is allowed at concessional duty of 5% in terms of SI.No. 128 of CN
17/2001.
The import of fasteners and poly wadding materials and certain other
inputs are allowed duty free import by the manufacture-exporters of
leather garments to the extent of 3% of their previous year’s
export performance.
Tags, label, printed bags, stickers, belts, buttons or hangers,
imported by bona fide exporters, are exempted from duty in terms of SI
No. 130 of CN 17/2001.
Tanning extracts like wattle extract, quebracho extract etc are allowed
to be imported with 10% Basic Customs Duty. No countervailing duty is
leviable on Wattle Extract falling under Chapter 3201.20. However,
import of other vegetable tanning extracts under Chapter 32 would
continue to attract countervailing duty of 16%.
4% Special Additional Duty of Customs (SADC) will continued to levied
on imports of all items. However, the imports under Advance Licenses,
DEPB Scheme, EPCG Scheme etc are exempted from levy of Special
Additional Duty of Customs, in terms of Notification No. 19/2001 dated
1st march 2001.
10% surcharge on the Basic Customs duty has been removed for all the
imports.
Leather chemicals and finishing axillaries, component, accessories and
consumables indigenously produced will be subject to 16% Central Excise
duty.
For further information on the above, please contact CLE.
(Abbreviation for CN 17/200 = Customs Notification No. 17/2001 dated
1st March 2001
