HS Code:
The Raw Hides and Skins (other than furskins) and Leather category, classified under HS Code 41, encompasses raw hides and skins of bovine, equine, ovine, caprine, and other animals, as well as leather prepared after tanning or crusting. This category includes products like wet-blue leather, crust leather, and finished leather used in industries such as footwear, automotive upholstery, and fashion accessories. It is a critical raw material sector in global trade, with significant environmental and ethical considerations due to its association with the meat industry and sustainability concerns.
Total Trade Volume
USD 25.6 billion
Data from 2022
Source
United Nations Comtrade Database
USD 3.8 billion
14.8% of total trade of total trade
Stable
USD 3.5 billion
13.7% of total trade of total trade
Increasing
USD 2.9 billion
11.3% of total trade of total trade
Increasing
USD 2.4 billion
9.4% of total trade of total trade
Decreasing
USD 1.8 billion
7.0% of total trade of total trade
Stable
Average Rate
6.5% ad valorem
Highest Rate
20% (applied by certain developing countries to protect domestic industries)
Lowest Rate
0% (under free trade agreements like EU-USA or within regional blocs like ASEAN)
Rising demand for sustainable and ethically sourced leather
Increased investment in traceability systems and eco-friendly tanning processes; shift towards vegan leather alternatives in some markets
2021-2023
Growth in automotive leather applications
Higher demand for high-quality leather from emerging markets with expanding automotive sectors
2020-2022
Decline in raw hide exports from China
Shift in supply chains towards South American and African exporters due to stricter environmental regulations in China
2019-2022
The European Union's Green Deal has introduced stricter regulations on leather tanning chemicals and waste management, affecting exporters to the EU market.
January 2023
Increased compliance costs for exporters; potential market shift towards non-EU buyers for non-compliant producers
Brazil and India signed a bilateral agreement to reduce tariffs on raw hides and finished leather products, aiming to boost trade between the two nations.
March 2023
Expected increase in Brazilian raw hide exports to India, strengthening supply chains for India's leather goods industry
Innovations in lab-grown and plant-based leather alternatives have gained traction, with major fashion brands adopting these materials.
June 2022
Potential long-term reduction in demand for traditional leather, especially in luxury and fashion sectors