From the Desk of Chairman


Chairman Column

Dear Member

Union Budget 2020-21

I wholeheartedly thank the Hon’ble Union Minister for Finance Smt. Nirmala Sitharaman ji and Hon’ble Union Minister for Commerce & Industry Shri Piyush Goyal ji  for  several measures announced in Union Budget 2020-21. This is an innovative and growth oriented  Budget. Significant announcements made in the budget including creation of Investment Clearance Cell to provide end-to-end support to investors; Digital reimbursement of un-refunded duties to exporters, move to make every district an export hub, launching of National Logistics Policy and continuation of debt restructuring scheme for MSMEs till March 2021 will foster export growth and will play a major role in achieving 5 Trillion Economy by 2022. Focus on “Skilling” in the budget will help the industry to get more organized workforce”.


Enhancement of import duty on footwear from 25% to 35% will not only prevent dumping of cheap footwear into the country but will also help in enhancing the price competitiveness of domestic footwear sector, thereby helping them to tap the huge and growing footwear market in India. On the whole, the Union Budget 2020-21 has laid a strong foundation for sustainable and growth of leather, leather products and footwear sector.


India Leather Week 2020

The series of events held in Chennai coinciding with the India International Leather fair popularly called India Leather Week ended on a successful note.

The fact that India International Leather Fair (ILF) 2020 attracted more number of visitors shows the great optimism in the industry for growth. CLE’s Designers Fair, Raw Material Sourcing Meet, and Executive Panel Discussion Forum on Global Perspectives on Indian Footwear and Leather Accessories/ Garments evoked very good response.

Considering the huge potential offered by overseas market, we are confident of achieving about 5% export growth in value terms this year. The Council for Leather Exports is keen to attract overseas investments to achieve higher growth levels. Overall, there are good growth prospects for the industry in the coming months“


Declaration sought by Mumbai Nhava Sheva Customs on non – usage of imported finished leather in export product

Some of the member-exporters had informed the Council that Mumbai Customs was asking for a declaration from exporters on non-usage of imported finished leather in their export product for drawback shipment.  This issue was taken up by Council for Leather Exports with the Directorate of Drawback requesting not to ask for such a declaration since there is only one All Industry Rates of Duty Drawback based on actual duty incidence in leather and leather products.

We have now received a communication from the Drawback Directorate stating that the matter was taken up with Mumbai customs and the Office of Chief Commissioner of Customs (Mumbai Zone II) has intimated that they have issued an Office circular dated 17.1.2020 whereby all field formations have been directed for not asking any declaration from the exporter/CHA regarding non-usage of imported leather in the export product.


With best wishes


P.R. Aqeel Ahmed