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Dated: 01.02.2025
Key Budgetary Changes in Customs Tariff-Notfn No 03/2025-Customs dtd 01st February 2025
The Government of India issued Notification No. 03/2025-Customs on 1st February 2025 to amend Notification No. 27/2011-Customs, making modifications to the customs duties related to leather and hides. Below are the key highlights:
1. Amendments to Existing Leather & Hide Duty Exemptions
- Revised entries for leather products under Serial Numbers 25C, 25D, and 25E:
- S. No. 25C: Now covers Tanned hides and skins of bovine (including buffalo) or equine animals, excluding E.I. tanned leather.
- S. No. 25D: Now covers Tanned skins of sheep or lambs, excluding E.I. tanned leather.
- S. No. 25E: Now covers Tanned hides and skins of other animals, excluding E.I. tanned leather.
2. Introduction of New Duty Exemption for Crust Leather
- A new Serial No. 25J added, covering:
- Crust leather (hides and skins) under tariff codes 4104 41 00, 4104 49 00, 4105 30 00, 4106 22 00, 4106 32 00, and 4106 92 00.
- Customs duty: Nil (Fully exempted from import duty).
3. Effective Date
- This notification comes into force on 2nd February 2025.
Comparative Table: Notification No. 27/2011-Customs vs. Notification No. 03/2025-Customs
This table highlights the key differences and amendments introduced in Notification No. 03/2025-Customs compared to Notification No. 27/2011-Customs:
| Aspect | Notification No. 27/2011-Customs | Notification No. 03/2025-Customs (Amended) |
| Date of Notification | 1st March 2011 | 1st February 2025 |
| Purpose | Established customs duty structure for leather & hides | Amended duty exemptions & classifications for leather and hides |
| Tanned Hides & Skins (Bovine, Buffalo, Equine) (S. No. 25C) | Standard customs duty applied | Modified to exclude E.I. tanned leather |
| Tanned Skins of Sheep/Lambs (S. No. 25D) | Standard customs duty applied | Modified to exclude E.I. tanned leather |
| Tanned Hides & Skins of Other Animals (S. No. 25E) | Standard customs duty applied | Modified to exclude E.I. tanned leather |
| New Duty-Free Leather Category | No previous exemption | New exemption for Crust Leather (S. No. 25J) |
| Crust Leather (S. No. 25J) | Previously taxed | Now fully exempted (Nil duty) under tariff codes 4104 41 00, 4104 49 00, 4105 30 00, 4106 22 00, 4106 32 00, 4106 92 00 |
| E.I. Tanned Leather Exemptions | Previously included in exemptions | Now explicitly excluded from exemptions |
| Impact on Leather Industry | Standard duty applied to all hides & skins | Encourages imports of raw leather for processing while excluding certain types |
| Implementation Date | 1st March 2011 | 2nd February 2025 |
Summary of Key Changes
β Modifications in customs duty structure for tanned hides and skins.
β Exclusion of E.I. tanned leather from revised duty exemptions.
β New exemption granted for Crust Leather imports (fully duty-free).
β Aims to boost leather processing and trade by easing raw material imports.
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Source: Cbic, Ministry of Finance, Govt of India
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