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๐Ÿ“ฆ Hair sheep and cabretta skins

Hair sheep and cabretta skins

HS Code:

๐Ÿ“ฆ

Overview

Hair sheep and cabretta skins fall under the category of raw hides and skins, specifically under HS Code 4102, which includes raw skins of sheep or lambs (fresh, salted, dried, limed, pickled, or otherwise preserved, but not tanned, parchment-dressed, or further prepared). Hair sheep skins are sourced from breeds with hair rather than wool, predominantly found in tropical and subtropical regions, while cabretta skins are a specific type of hair sheep skin often used for high-quality leather goods such as gloves and shoes due to their fine texture and durability. This category is a critical raw material for the leather industry, with trade driven by demand for sustainable and high-quality leather products.

Total Trade Volume

Approximately $500 million USD

Data from 2022

Source

United Nations Comtrade Database, International Trade Centre (ITC)

Tariff Analysis

Average Rate

5.2% ad valorem

Highest Rate

15% (imposed by certain developing countries to protect domestic leather industries)

Lowest Rate

0% (under free trade agreements or preferential trade schemes like GSP for least developed countries)

Common Restrictions

  • Export bans or quotas in producing countries to support local processing industries
  • Strict sanitary and phytosanitary (SPS) measures for raw hides to prevent disease transmission
  • Environmental regulations on hide preservation and transportation
  • Import licensing requirements in some markets

Market Trends

Growing demand for sustainable leather products

Increased focus on hair sheep skins due to their eco-friendly production in regions with minimal industrial farming; drives export growth from African countries

2021-2022

Shift towards value-added processing

Exporting countries like Nigeria and Ethiopia are investing in local tanning and processing facilities, reducing raw skin exports and increasing semi-finished leather exports

2020-2022

Fluctuations in global leather demand

Decline in demand from traditional markets like Europe due to synthetic leather alternatives; countered by rising demand in Asia for luxury goods

2019-2022

Recent Developments

Nigeria's Export Promotion for Leather Industry

The Nigerian government introduced incentives for leather exporters, including tax breaks and subsidies for processing facilities, to boost value addition in the hair sheep skin sector.

March 2023

Expected to increase Nigeria's trade volume by 10-15% over the next two years, potentially shifting market share from raw to processed skins.

EU Tightens Import Regulations

The European Union implemented stricter environmental and traceability requirements for raw hides and skins to ensure sustainable sourcing and compliance with animal welfare standards.

January 2023

May increase compliance costs for exporters from developing countries, potentially reducing trade volumes to the EU in the short term.

Ethiopia-India Trade Agreement

Ethiopia signed a bilateral trade agreement with India to reduce tariffs on raw and semi-processed hair sheep skins, aiming to boost exports to the growing Indian leather market.

September 2022

Likely to enhance Ethiopiaโ€™s position as a top exporter, with a projected 8% increase in trade volume to India in 2023.