Can Indian Footwear Exporters Import Crust Leather Duty-Free?

1 day ago

4 min read

Yes, if the finished goods are exported. As of November 2026, Indian makers of leather footwear, garments, leather goods and shoe uppers can import crust leather at nil basic customs duty under the IGCR scheme (Customs Notification 45/2025, extended to 31 March 2028), provided the products are exported within 12 months. Factories selling only in India pay the standard 10% duty.

Key Takeaways (Updated November 2026)

Exporters of leather footwear, garments, leather goods and shoe uppers can import crust leather at nil basic customs duty under IGCR (Notification 45/2025, extended to 31 March 2028).
The finished products must be exported within 12 months of importing the leather.
Factories and brands selling only in India pay the standard 10% basic customs duty on imported crust.
Basic customs duty on wet blue has been nil for every importer since 2 February 2025.
Shoe-upper exporters were added to the IGCR facility from 2 February 2026 (Notification 2/2026-Customs).

Who Can Import Crust Leather Duty-Free in India?

The duty-free route runs through IGCR, the Customs (Import of Goods at Concessional Rate of Duty or for Specified End Use) Rules, 2022. Notification 45/2025-Customs of 24 October 2025 restored nil basic customs duty on notified inputs, including wet blue, crust and finished leather, for exporters of leather garments and of leather footwear and other leather products. Budget 2026-27 (Notification 2/2026, effective 2 February 2026) extended the facility to 31 March 2028, added shoe-upper exporters and lengthened the export window from six to twelve months, as the Council for Leather Exports' Budget 2026-27 circular sets out.

Your business	Duty on imported crust (Nov 2026)	Key condition
Leather footwear or leather goods exporter	Nil basic customs duty	IGCR procedure; export within 12 months
Leather garment and jacket exporter	Nil basic customs duty	IGCR procedure; export within 12 months
Shoe-upper exporter (from 2 Feb 2026)	Nil basic customs duty	IGCR procedure; export within 12 months
Factory or brand selling only in India	10% basic customs duty, plus surcharge and IGST	No end-use condition

The question matters more this season. At IILF 2026 the Council for Leather Exports said global demand has shifted from finished to crust leather, and in May 2026 leather and footwear makers, citing input costs up 40-60% after the West Asia crisis, asked the government for duty-free crust and finished leather imports for domestic manufacturing too. Until a general exemption is notified, domestic-only units pay the standard rate, so confirm the current tariff with your customs broker before booking a shipment.

Raw material inspection of leather hides at Sanwas International, India, a domestic option for factories that cannot import crust leather duty-free

Duty-free does not mean paperwork-free. Under IGCR you give advance information to customs before import, keep records showing how the imported crust was used, and prove export of the finished goods. For small lots, mixed domestic and export runs or fast reorders, buying crust within India avoids end-use tracking and port clearance. Our guide to choosing a crust leather supplier in India covers grades, thickness and GST.

Sanwas International is an LWG-certified OEM and private label leather manufacturer based in Jalandhar, Punjab, India, producing footwear, outerwear, furniture leather and hides for brands in India and worldwide.

Sanwas International supplies leather hides and crust from Jalandhar, Punjab to footwear, garment and leather-goods factories across India, alongside OEM and private-label manufacturing. Supply is LWG certified, lots pass AQL inspection before dispatch and buyers can request sample hides for approval, so you can test domestic crust against an imported lot before committing. See our leather materials and expertise page, or request a quote from Sanwas International.

Frequently Asked Questions

Is imported wet blue leather duty-free in India?

Yes, for every importer. Basic customs duty on wet blue was cut from 10% to nil from 2 February 2025, with no export condition attached. IGST still applies at import, and GST-registered manufacturers can usually claim it as input tax credit.

Can shoe-upper makers import crust leather duty-free?

Yes, since 2 February 2026. Notification 2/2026-Customs extended the IGCR facility, earlier limited to exporters of footwear, garments and other leather products, to exporters of shoe uppers. The uppers must be exported within twelve months of importing the leather.

What if duty-free crust ends up in goods sold in India?

The exemption covers only leather used in goods exported within the permitted period. Leather diverted to domestic production loses the concession, and the IGCR rules make the duty foregone payable with interest, so keep separate stock records for export and domestic lines.

What paperwork does IGCR need for duty-free crust leather imports?

You give advance information to customs before import, keep records showing how the imported crust was used, and prove export of the finished goods within the permitted period. Duty-free under IGCR does not mean paperwork-free, so plan the record-keeping before the first consignment.

Is buying crust leather within India simpler than importing it under IGCR?

Often, yes. For small lots, mixed domestic and export runs or fast reorders, buying crust within India avoids end-use tracking and port clearance. Sanwas International supplies leather hides and crust from Jalandhar, Punjab to factories across India, with LWG-certified supply and AQL inspection before dispatch.

Get a Quote for Crust Leather Supplied in India

Footwear, garment and leather-goods factories, brands and traders in India: share the leather type and tannage, substance, quantity, delivery city and target date. Sanwas supplies across India and exports worldwide, and you can request sample hides before bulk.

Include these details in your enquiry: