India imports around 68% of the footwear/leather items from China, the news declaring the rise of import duty on the leather & footwear panics the Indian leather importers. The amount of leather and footwear import in India is very high comparing to the export of similar items. This news has alarmed many Indian leather importers, who are importing finished leather products from China for years. Other leather items such as handbags, belts, harnesses etc. also will be charged high while importing to India from China.
If we look at the Indian export data of finished leather products to China, the statistics are simply incomparable. However if we keep them in figures, the export of Indian footwear to China in the year 2018-19 was $34.1 Million whereas the leather products were $21.3 Million respectively.
How much import duty is increased on Chinese leather and footwear?
The industry representative in China has declared that they have asked for the hike of 10%, i.e., the import duty to be increased from 25% to 35% on the import of Chinese leather and footwear. This is a major hike on the import of Chinese leather products and can become a major hurdle for growth to the importers of many countries including India.
INDIA EXPORT TO CHINA JUMPED BY 16.15% TO $20.87 BILLION IN 2020
As per the Asia Pacific Trade Agreement: China Imposes
- 5-7% import duty for bovine finished leather
- 5-6% import duty for sheep/lamb finished leather
- 8% tariff on goat finished leather
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