HS Code:
The 'Full grains, unsplit; grain splits' category (HS Code: 4104.11 and 4104.19 for tanned or crust hides and skins of bovine or equine animals, in the wet state) includes leather that has been tanned but not further prepared. This category primarily consists of raw or semi-processed leather materials used in the production of various goods such as footwear, handbags, and upholstery. Full grains refer to leather that retains the original grain surface, while grain splits are layers of leather split from the original hide. This category is a critical intermediary product in the leather industry, with significant demand in both developed and developing markets for high-quality leather goods.
Total Trade Volume
USD 5.2 billion
Data from 2022
Source
United Nations Comtrade Database
USD 1.1 billion
21.2% of total trade of total trade
Increasing
USD 850 million
16.3% of total trade of total trade
Stable
USD 620 million
11.9% of total trade of total trade
Increasing
USD 480 million
9.2% of total trade of total trade
Decreasing
USD 350 million
6.7% of total trade of total trade
Increasing
Average Rate
6.5%
Highest Rate
15% (applied by certain developing countries to protect domestic leather industries)
Lowest Rate
0% (under free trade agreements like EU-India FTA or within NAFTA/USMCA)
Rising demand for sustainable and eco-friendly leather
Increased investment in environmentally friendly tanning processes and certifications, pushing exporters to adopt greener technologies
2021-2022
Shift towards high-value leather products
Growing preference for premium full-grain leather in luxury markets, benefiting countries with high-quality production like Italy
2020-2022
Supply chain disruptions due to geopolitical tensions
Delays and increased costs in leather exports from key regions, affecting trade volumes in countries like Argentina
2022
The European Union introduced new regulations in mid-2022 requiring leather imports to meet stringent environmental and chemical usage standards, impacting exporters from countries with less regulated tanning industries.
July 2022
Increased compliance costs for exporters, particularly from developing countries, but potential long-term benefits for sustainable producers
Brazil signed new trade agreements with several Asian countries, including Vietnam and South Korea, to boost exports of full-grain leather, capitalizing on growing demand in the regionโs footwear industry.
March 2023
Expected to increase Brazilโs market share in Asia, potentially offsetting declines in traditional markets like Europe
The United States initiated a review of tariffs on leather imports from certain countries as part of broader trade policy adjustments, aiming to balance domestic industry protection with supply needs.
September 2023
Potential reduction in tariffs could benefit exporters like India, increasing trade volumes to the US