The Hindu Business Line : Raw material import quarantine hits TN leather units

Quarantine issues
The annual imports of skin and hide through the Chennai port are estimated at about Rs 1,000 crore.
Quarantine issues do not arise in the case of semi processed leather, which is chemically treated, says trade body.
The manufacturers have also taken up the issue with the Department of Animal Husbandry at the Centre, and a notification clarifying the issue is expected.

R. Balaji

Chennai, April 2

Supply of imported raw material to leather products manufacturing units has been hit in Tamil Nadu as Customs authorities have stopped clearing imported semi-processed leather demanding quarantine certification, according to the All India Skin and Hide Tanners and Merchants Association (AISHTMA).

Mr Rafeeque Ahmed, President, AISHTMA, said that Customs Department officials in Chennai started demanding quarantine certificates for semi processed leather – wet blue and crust leather – imported for further processing and leather product making by exporters. This followed a letter issued by the Animal Quarantine and Certification Service authorities in Chennai, according to AISHTMA.

This has affected raw material supply to the units, which also face heavy demurrage charges due to delay in getting the consignments cleared. Quarantine issues do not arise in the case of semi processed leather, which is chemically treated. The certification is needed only for raw skins and hides, he said.

The annual imports of skin and hide through the Chennai port are estimated at about Rs 1,000 crore with semi-processed leather constituting over three-fourths of the imports. At least half of this is used as raw material in units in Chennai and the production centres in Arcot, a major leather products manufacturing centre, about 100 km from here. But this sudden development last month is threatening raw material supply, he said.

The manufacturers have approached the Central Leather Research Institute, which has endorsed that semi-processed and finished leather do not pose a quarantine hazard. The manufacturers have also taken up the issue with the Department of Animal Husbandry at the Centre, and a notification clarifying the issue is expected, according to Mr Ahmed.

However, as of now the exporters are hit by the delay in clearing the goods, which are stuck with the authorities. Each container load is valued at Rs 30-50 lakh and demurrage charges rise sharply with the delay. The quarantine officials complain of a shortage of staff and say that established protocols are not available for testing semi-finished and finished leather, he said.

Also, following the developments in Chennai, questions over import procedures are also being raised in other leather product manufacturing hubs in the north. The manufacturers are hoping that the issue is settled fast, he said.

More Stories on : Leather | Exports & Imports | Tamil Nadu

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