HS Code:
Grain splits, classified under HS Code 4104, refer to leather prepared after tanning or crusting, including parchment-dressed leather, of bovine or equine animals, further split into layers. This category excludes leather of heading 41.14 and primarily caters to industries like footwear, upholstery, and accessories manufacturing. Grain splits are valued for their durability and aesthetic appeal, making them a significant commodity in global leather trade.
Total Trade Volume
USD 1.2 billion
Data from 2022
Source
United Nations Comtrade Database
USD 320 million
26.7% of total trade of total trade
Increasing
USD 250 million
20.8% of total trade of total trade
Stable
USD 180 million
15.0% of total trade of total trade
Decreasing
USD 120 million
10.0% of total trade of total trade
Increasing
USD 90 million
7.5% of total trade of total trade
Stable
Average Rate
6.5%
Highest Rate
12% (imposed by certain developing countries to protect domestic leather industries)
Lowest Rate
0% (under free trade agreements like EU-USA or within ASEAN)
Rising demand for sustainable leather
Increased investment in eco-friendly tanning processes and certifications, driving up costs but also opening premium markets
2021-2022
Shift towards Asian markets
Growing manufacturing hubs in countries like Vietnam and Bangladesh are increasing demand for grain splits, reshaping trade flows
2020-2022
Fluctuating raw material prices
Volatility in cattle hide prices due to supply chain disruptions and climate impacts affects profitability and trade volumes
2022
The EU introduced stricter environmental regulations under the Green Deal, mandating sustainable sourcing and production for leather imports, including grain splits.
March 2023
Increased compliance costs for exporters but potential long-term benefits in accessing the EU market with premium pricing
A new bilateral agreement reduced tariffs on leather products, including grain splits, between Brazil and India to boost trade.
January 2023
Expected to increase Brazil's export volume to India by 15% over the next two years
The US imposed a 5% additional tariff on leather imports, including grain splits, from countries without free trade agreements due to domestic industry lobbying.
September 2022
Likely to reduce imports from non-FTA countries while benefiting FTA partners like Mexico