HS Code:
The 'Of leather, cut to shape' category (typically classified under HS Code 4202 or related subheadings) includes leather products that have been pre-cut into specific shapes for further manufacturing or assembly into final goods such as bags, wallets, belts, and other leather accessories. This category represents a critical intermediary stage in the leather goods supply chain, where raw or tanned leather is transformed into components for consumer products. It is a significant segment in global trade due to the high demand for leather goods in fashion and luxury markets.
Total Trade Volume
Approximately $2.5 billion USD
Data from 2022
Source
United Nations Comtrade Database and International Trade Centre (ITC)
$600 million USD
24% of total trade of total trade
Increasing
$450 million USD
18% of total trade of total trade
Increasing
$400 million USD
16% of total trade of total trade
Stable
$300 million USD
12% of total trade of total trade
Increasing
$200 million USD
8% of total trade of total trade
Increasing
Average Rate
8.5%
Highest Rate
25% (imposed by certain developing countries to protect domestic industries)
Lowest Rate
0% (under free trade agreements like EU-India FTA for specific partners)
Shift towards sustainable leather production
Increased demand for eco-friendly and ethically sourced leather products, pushing exporters to adopt greener practices
2021-2023
Rise of vegan leather alternatives
Moderate competition for traditional leather cut-to-shape products, especially in fashion markets
2020-2022
Growth in luxury goods demand
Higher demand for high-quality leather components from countries like Italy and France for luxury brands
2019-2023
The European Union introduced stricter environmental and ethical sourcing standards for leather imports, requiring detailed certification of origin and processing methods.
March 2023
Increased compliance costs for exporters from developing countries, potentially reducing trade volumes in the short term but improving sustainability in the long term.
The Indian government announced new export incentives under the Production Linked Incentive (PLI) scheme to support leather goods manufacturers, including cut-to-shape products.
January 2023
Expected to increase India's share in global trade by 5-7% over the next two years, strengthening its position as a top exporter.
Vietnam inaugurated several new leather processing facilities to cater to growing demand from Western markets, focusing on cut-to-shape components for footwear and accessories.
September 2022
Likely to solidify Vietnam's position as a key supplier, with trade volume projected to grow by 10% annually.