Leather EXIM Project

8/3/2019 Leather EXIM Project

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Leather

IMPORT & EXPORT

Submitted to

Sohel Kazi

BMS Degree

Names Roll NoArkar Matin 04Joshua D’souza 08Faria Idrisi 15Aakash Khadye 20Jim Sebastian 31

Nargis Merchant 34Bhagesh Nanaposhe 37Zeeshan sayyed 47Riyaz Sheikh 50Afsha Syed 59

Class:SYBMS Semester: 3 Div: A

Studying at:

Rizvi Education Society’s

Rizvi College of Arts Science &Commerce

Bandra (west), Mumbai-400050.

Academic Year: 2011-2012

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Declaration

I and my all group member student of SYBMS, Semester -4, Div A, academic years 2011-12

studying at Rizvi college of arts science, & commerce, hereby declare that the work done on

the project entitled leather product is true & original & any reference used in the project isduly acknowledged.

Date :

{Signature}

ACKNOWLEDGEMENT

This work is a synergistic product of many minds. We would like to thank few individuals

who help us immensely in completing this project successfully. They helped not only

providing information but also by boosting my confidence and giving us moral support.

The manufacture of different leather product owner who were our respondents, help in

conducting personal interview for their kind cooperation and patience.

My project guide, Mr.Sohel Kazi for being ever ready to give us the necessary guidance to go

about the project.

And last but not the least, our family and friends without whose invaluable support this would

not have been possible.

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ContentsIntroduction to leather and leather industry……………………………………………………………….4

Licenses:……………………………………………………………………………………… …........... 8

Availability of resources (raw material)………………………………………………………………………………………………………..9

Analysis and Research & Development of leather industry……………………………………………….15

Demand for leather in regional and internationalmarket…………………………………………………..17

Promotion:…………………………………………………………………………………………………………………………………

……………………20

Export procedures and Documentation:……………………………………………………………………. 21

Existing Companies in themarket............................................................................................................22

Growth…………………………………………………………………………………………………………………………………………………………….23

Insurance…………………………………………………………………………………………………………………………………………………………24

Swotanalysis………………………………………………………………………………………………………………………

…………………………..26

Swot analysis

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Introduction to leather and leather industry

A. Leather:

Leather is a durable and flexible material created via the tanning of putrescible animal rawhide

and skin, primarily cattle hide.

B. Leather Industry

The leather industry occupies a place of prominence in the Indian economy in view of its massive

potential for employment, growth and exports. There has been an increasing emphasis on its

planned development, aimed at optimum utilization of available raw materials for maximizing the

returns, particularly from exports. The exports of leather and leather products gained momentum

during the past two decades. There has been a phenomenal growth in exports from Rs.320 million

in the year 1965-66 to Rs.69558 million in 1996-97. Indian leather industry today has attained

well merited recognition in international markets besides occupying a prominent place among the

top seven foreign exchange earners of the country.The leather industry has undergone a dramatic transformation from a mere exporter of raw materials in

the sixties to that of value added finished products in the nineties. Policy initiatives taken by the

Government of India since 1973 have been instrumental to such a transformation. In the wake of

globalization of Indian economy supported with liberalized economic and trade policies since

1991, the industry is poised for further growth to achieve greater share in the global trade.

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Apart from a significant foreign exchange earner, leather industry has tremendous potential for

employment generation. Direct and indirect employment of the industry is around 2 million. The

skilled and semi-skilled workers constitute nearly 50% of the total work force.

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BUSINESS PLAN:

In practical, we have to follow following steps to start a business in India or anywhere. These steps are as

follows.

Chose a business name and business startup strategy.

Incorporate business and get license to start

Make suitable business plan

Financial arrangements

-Marketing and advertisement of business and products

Research and development and growth of business.

We will be starting business in partnership and above mention members will be our partner. The work

will be divided as per their specialized skill and interest in business. We will setup business as traders of

product. In order to know the market demand and growth, our first step will be R & D and market

research.

After our research completed, then we will decide the nature of product. And the research made by our

partners clearly shows that leather industry is one of the growing industries in India. This is the main

reason for choosing this business. This will help us in practical life too.

A. Description:The leather and leather products industry is one of India’s oldest manufacturing industries that

catered to the international market right from the middle of the nineteenth century. India is the

largest livestock holding country (21% large animals and 11% small animals). It is a source for

over 10% of the global leather requirement. Availability of raw material will help us in growth of

industry and also in manufacturing leather product. Our research shows that leather & leather

product exports forecasted and expected to increase due to various favorable policies and

subsidies from our government to promote leather & leather products in other countries.

After this we will register our business with sales tax and get VAT TIN and CST TIN Nos. Which help us

to trade in Maharashtra or in our country. After we succeed in this stage, we will apply for import

and export license.

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B. COMPETITORS FINANCE:i. RED TAPE

jacketsdenims men’s footwear the brand has now diversified into Women’s footwear

i. BATABagsBeltsJacketsShoes

We are targeting some brands like woodland, red tape etc. initially we sell our product at regional level

then after few years we will go for export procedure. We decided to export leather in Europe

countries as they are in great need of leather as these countries are considered as cold. We also

found that financial assistance to the exporters are generally provided by Commercial Banks,

before shipment as well as after shipment of the said goods. The assistance provided before

shipment of goods is known as per-shipment finance and that provided after the shipment of

goods is known as post-shipment finance. Pre-shipment finance is given for working capital for

purchase of raw-material, processing, packing, transportation, ware-housing etc. of the goods

meant for export. Post-shipment finance is provided for bridging the gap between the shipment of

goods and realization of export proceeds. The later is done by the Banks by purchasing or

negotiating the export documents or by extending advance against export bills accepted on

collection basis. While doing so, the Banks adjust the pre-shipment advance, if any, already

granted to the exporter.

A. AVAILABILITY OF RAW MATERIAL :

There exists a large raw material base. This is on account of population of 194 million cattle, 70 million

buffaloes, and 95 million goats. According to the latest census, India ranks first among the major

livestock holding countries in the world. In respect of sheep with 48 million sheep’s, it claims the

sixth position. These four species provide the basic raw material for the leather industry.

The annual availability of 166 million pieces of hides and skins is the main strength of the

industry. This is expected to go up to 218 million pieces by the end of year 2000. Some of the

goat/calf/sheep skins available in India are regarded as specialty products commanding a good7



market. Abundance of traditional skills in training, finishing and manufacturing downstream

products and relatively low wage rates are the two other factors of comparative advantage for

India. Easy availability of raw material and human force lead to growth in business and help us to

trade internationally.

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Licenses:An export license is a document issued by the appropriate licensing agency after which an exporter is

allowed to transport his product in a foreign market. The license is only issued after a careful review of

the facts surrounding the given export transaction. Export license depends on the nature of goods to be

transported as well as the destination port. So, being an exporter it is necessary to determine whether the

product or good to be exported requires an export license or not.

To determine whether a license is needed to export a particular commercial product or service, an

exporter must first classify the item by identifying what is called ITC (HS) Classifications. Export license

are only issued for the goods mentioned in the Schedule 2 of ITC (HS) Classifications of Export and

Import items. A proper application can be submitted to the Director General of Foreign Trade (DGFT).

The Export Licensing Committee under the Chairmanship of Export Commissioner considers such

applications on merits for issue of export licenses.

After getting license from government we will move towards registration with dock or custom to store

our goods or product before shipment procedure.

A. Customs Formalities:

Central Board of Excise and Customs (CBEC) is assigned a number of tasks, some of which are:

• Collection of customs duties on imports and exports as per basic customs laws (Customs Act

1962 and customs tariff Act 1975)• Enforcement of the various provisions of the Customs Act governing imports and exports of

cargo, baggage, postal articles and arrival & departure of vessels, air craft’s etc.• Discharge of various agency functions and enforcing various prohibitions and restrictions on

imports and exports under the Customs Act and other allied enactments;• Prevention of smuggling including introduction of narcotics drug trafficking; and International

passenger processing.

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Availability of resources (raw material)

Leather is a durable and flexible material created via the tanning of putrescible animal rawhide and skin,

primarily cattle hide. It can be produced through different manufacturing processes, ranging from cottage

industry to heavy industry.

The leather and the fur industries are differentiated by the manufacturing importance of the raw materials used to

make the wares. In the leather industry, the skin and rawhide are by-products of the meat industry, because the

meat has greater commercial value than the rawhide and skin. In the fur industry, the meat is a by-product, because

the skins and hides have greater commercial value. Moreover, in taxidermy, the raw materials usually are only the

animal’s head and back; hide and skin also are the raw materials for manufacturing, animal, glue and gelatin.

A. Forms Of leather

Several tanning processes transform hides and skins into leather:

1. Vegetable-tanned leather is tanned using tannin and other ingredients found in vegetable

matter, tree bark, and other such sources. It is supple and brown in color, with the exact shade

depending on the mix of chemicals and the color of the skin. It is the only form of leather

suitable for use in leather carving or stamping.

2. Chrome-tanned leather, invented in 1858, is tanned using chromium sulfate and other salts of chromium. It is more supple and pliable than vegetable-tanned leather, and does not discolor

or lose shape as drastically in water as vegetable-tanned. It is also known as wet-blue for its

color derived from the chromium. More esoteric colors are possible using chrome tanning.

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3. Aldehyde-tanned leather is tanned using glutaraldehyde or oxazolidine compounds. This is the

leather that most tanners refer to as wet-white leather due to its pale cream or white color. It is

the main type of "chrome-free" leather, often seen in shoes for infants, and automobiles.

4. Synthetic-tanned leather is tanned using aromatic polymers such as the Novolac or Neradol

types. This leather is white in color and was invented when vegetable tannins were in short

supply during the Second World War.

5. Alum-tawed leather is transformed using aluminium salts mixed with a variety of binders and

protein sources, such as flour and egg yolk.

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6. Rawhide is made by scraping the skin thin, soaking it in lime, and then stretching it while it

dries. Like alum-tawing, rawhide is not technically "leather", but is usually lumped in with the

other forms. Rawhide is stiffer and more brittle than other forms of leather, and is primarily

found in uses such as drum heads where it does not need to flex significantly; it is also cut up

into cords for use in lacing or stitching, or for making many varieties of dog chews.

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A. Types of leather

In general, leather is sold in four forms:

1. Full-grain leather refers to the upper section of a hide that previously contained theepidermis and hair, but were removed from the hide/skin. Full-grain refers to hides that have

not been sanded, buffed, or snuffed (as opposed to top-grain or corrected leather) in order to

remove imperfections (or natural marks) on the surface of the hide. The grain remains in its

natural state allowing the best fiber strength and durability. The natural grain also has natural

breathability, resulting in less moisture from prolonged contact. Rather than wearing out, it

will develop a natural patina over time, with some cracking and splitting. The finest leather

furniture and footwear are made from full-grain leather. For these reasons, only the best raw

hide is used to create full-grain leather. One way to test if leather is full-grain is to lightly

scratch its surface with your nail. If it leaves a lighter-colored streak, it's full-grain. Full-

grain leathers are typically available in two finish types: aniline and semi-aniline.

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2. Top-grain leather is a misnomer: it gives the false impression that it is "top" quality. In fact,

full-grain is the highest quality. Top-grain leather is the second-highest quality. Its surface

has been sanded and refinished. As a result, it has a colder, plastic feel, less breathability,

and will not develop a natural patina. However, it does have 2 advantages over full-grain

leather: it is typically less expensive, and has greater resistance to stains.

3. Corrected-grain leather is any leather that has had an artificial grain applied to its surface.

The hides used to create corrected leather are of inferior quality that does not meet the high

standards for use in creating vegetable-tanned or aniline leather. The imperfections are

corrected and an artificial grain applied. Most corrected-grain leather is used to make

pigmented leather as the solid pigment helps hide the corrections or imperfections. Corrected

grain leathers can mainly be bought as two finish types: semi-aniline and pigmented.

4. Split leather is leather created from the fibrous part of the hide left once the top-grain of therawhide has been separated from the hide. During the splitting operation, the grain and drop

split are separated. The drop split can be further split (thickness allowing) into a middle split

and a flesh split. In very thick hides, the middle split can be separated into multiple layers

until the thickness prevents further splitting. Split leather then has an artificial layer applied

to the surface of the split and is embossed with a leather grain (Bycast leather). Splits are

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also used to create suede. The strongest suede’s are usually made from grain splits (that have

the grain completely removed) or from the flesh split that has been shaved to the correct

thickness. Suede is "fuzzy" on both sides. Manufacturers use a variety of techniques to make

suede from full-grain. For example, in one operation, leather finish is applied to one side of

the suede, which is then pressed through rollers; these flatten and even out one side of the

material, giving it the smooth appearance of full-grain. Latigo is one of the trade names for

this product. Reversed suede is grained leather that has been designed into the leather article

with the grain facing away from the visible surface. It is not a true form of suede. The

International Union of Leather Technologists and Chemist Societies have a glossary of

leather terms that can be found at IULTCS.

A. Manufacturing Process:

The leather manufacturing process is divided into three fundamental sub-processes: preparatory

stages, tanning, and crusting. All true leathers will undergo these sub-processes. A further sub-

process, surface coating can be added into the leather process sequence, but not all leathers

receive surface treatment. Since many types of leather exist, it is difficult to create a list of

operations that all leathers must undergo. The preparatory stages are when the hide/skin is

prepared for tanning. Preparatory stages may include: preservation, soaking, fleshing, reliming.

Tanning stage is the process which converts the protein of the raw hide or skin into a stable

material which will not putrefy and is suitable for a wide variety of end applications. Crusting is

the process by which the hide/skin is thinned, retanned, and lubricated. Often a coloring operation

is included in the crusting sub process. The chemicals added during crusting must be fixed in

place. For some leathers, a surface coating is applied.

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Analysis and Research & Development of leather industry

A. Analysis

The global trade in leather and leather products has been increasing over the years from mere US$

4 billion in 1972 to US$ 70 billion in 1997. Although the exports of Indian leather and leather

products have grown manifold during the past decades, our country's share in global trade is

around 3% among world imports of leather products. Whereas India's share in world imports of

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leather footwear is 1%. Major exporting countries of leather footwear are China (14% share),

Portugal (6% share), Brazil (5% share) and Indonesia (4% share).

India's share in world imports of leather garments is 6%. Major exporting countries of leather

garments are China (36% share), Germany (9% share), Italy (7% share), Turkey (5% share) and

Pakistan (4% share) India's share in world imports of leather goods is 7%. Major exporting

countries are China (22% share), Italy (22 % share), France (7% share) and Greece (5% share),India's share in world imports of harness and saddlery is 8%. Major exporting countries of harness

& saddlery are Germany (14 % share), U.K. (14 % share), China (12% share).

Overall, India is facing fierce competition in international market from countries like China,

Vietnam, Thailand, Indonesia, etc., which are emerging as major manufacturing countries.

East European countries like Poland, Romania, Czech and Slovak Republics have re-emerged as

major production centers particularly for footwear sector. These countries pose major challenge to

Indian exporters as they enjoy geographical advantage.

B. Research and Development

Leather in modern culture

Due to its excellent resistance to abrasion and wind, leather found a use in rugged occupations.

The enduring image of a cowboy in leather chaps gave way to the leather-jacketed and leather-

helmeted aviator. When motorcycles were invented, some riders took to wearing heavy leather

jackets to protect from road rash and wind blast; some also wear chaps or full leather pants to

protect the lower body. Many sports still use leather to help in playing the game or protecting players; its flexibility allows it to be formed and flexed.

The term leathering is sometimes used in the sense of a physical punishment (such as a severe

spanking) applied with a leather whip, martinet, etc. Leather fetishism is the name popularly used

to describe a fetishistic attraction to people wearing leather, or in certain cases, to the garments

themselves. Many rock groups (particularly heavy metal and punk groups in the 1980s) are well-

known for wearing leather clothing. Leather clothing, particularly jackets, almost come as

standard in the heavy metal and Punk subculture. Extreme metal bands (especially black metal

bands) and Goth rock groups have extensive leather clothing, i.e. leather pants, accessories, etc.

Many cars and trucks come with optional or standard 'leather' seating. This can range from cheap

vinyl imitation leather, found on some low cost vehicles, to real -Nappa leather, found on luxury

car brands like Mercedes-Benz, BMW, and Audi. Leather biodegrades slowly, and takes 25–40

years to decompose.

Religious sensitivities to leather17



In religiously diverse countries, leather vendors are typically careful to clarify the kinds of leather

used in their products. For example, leather shoes will bear a label identifying the animal from

which the leather was taken. In this way, a Muslim would not accidentally purchase pigskin

leather, and a Hindu could avoid cow leather.

Such taboos increase the demand for religiously neutral leathers like ostrich and deer .Judaism

forbids the comfort of wearing shoes made with leather on Yom Kippur, Tisha B'Av, and duringmourning.

Demand for leather in regional and international market

A. Leather industry International demand

The country’s tanneries and leather and leather goods makers are putting on war paint to battle for

more orders in the international markets

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The latest data published on the website of Export Promotion Bureau (EPB) shows that the

country’s leather export earnings rose 29.94 per cent to US $149.46 million, in the last seven

months of the fiscal 2010-11, as against $115.02 million in the corresponding period of the

previous year. The EPB’s data revealed that leather goods exports, during the period between July

2010 and January 2011, were to the tune of $149.46 million, which is 8.46 per cent lower than the

target of $163.28 million.

An analysis of the EPB data showed that the country’s leather product export earnings were forging

ahead due to growing international demand for Bangladeshi leather products, mainly for quality

and cheaper prices. But in terms of export earnings leather products lag far behind finished

leather.

According to the statistical data of EPB, the country earned $31.40 million through exports of

leather products during the July 2010-January 2011 period; the earning was 62.11 per more than

the targeted figure of $19.37 million.

During the last seven months of the current fiscal, exporters of leather products registered 145.70

per cent earnings growth over that in the corresponding period of the previous year.

B. Leather industry regional demand

Recently, the Indian leather industry experienced a boom. It stood to gain a bigger share of the

global market, with leading brands from US and Europe either importing or planning to source

leather and leather products from India . If one is to believe reports by the Department of Industrial

Policy and Promotion of various industries, the leather industry has been developing rapidly. India

has around 3% share in the global trade of leather in comparison to China’s 20%. In order to

promote the rapid advancement of this industry, the Government of India has been constantly

making efforts to show improvements. Leather industry is the 10th largest sector in the Indian

manufacturing sector, providing employment to 2.5 million people and weaker

sections/minorities, of which about 30 % are women. Also, due to its considerable export revenue,

prospects and expansion, this sector holds a prominent place in the Indian Economy. It is also the

largest manufacturing sector and its products are considered amongst the top ten export earners of the country.

Leather garments and other leather goods in India are among the major production and thus have a

lot of demand even overseas. India has colossal natural resources of raw hides & skins due to

which the export of leather products has undergone a structural transformation resulting in

increased exports of various leather products .

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http://www.made-from-india.com/Categories/Textiles_Leather_Products/

http://www.made-from-india.com/


http://products.made-from-india.com/


http://www.made-from-india.com/Categories/Textiles_Leather_Products/





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Promotion:

We will go for web designing and billboards. Our marketing strategy will be getting orders more as we

can and the will concentrate on dispatch the orders on time. We will try to maximize our productivity by

giving our best in selected business.

In India there is a council for leather export and products. The Council for Leather Exports (popularly

known as CLE) set up in July 1984, is an autonomous non-profit company registered under the Indian

Companies Act, 1956 entrusted with export promotion activities and development of the Indian leather

industry. CLE's activities are multiple and directed towards assisting its members in extending their

global reach thereby increasing their exports. We will try to register with above institution as soon as we

can.

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Export procedures and Documentation:

Setting up an export business requires basic documentation such as a Permanent Account Number (PANcard), Importer Exporter Code (IEC) from DGFT office and opening a bank account. Other key factors

include knowledge of trading systems, FTP and Industrial Policy, access to market information (for

which internet is a good source), ensuring product quality and compliance with export procedures &

documentation. The Ministry of Commerce, through the Director General of Foreign Trade (DGFT),

controls the Foreign Trade Policy (FTP), while the Ministry of Finance, through the Reserve Bank of

India (RBI) and the Indian Customs, controls the physical movement of goods and services and the

transactions of foreign exchange (both inflow & outflow) from the country. Receipts of proceeds of

exports by way of foreign exchange and payment for imports to foreign suppliers by way of foreignexchange are to be routed through normal banking channels only.

A. Documentation:

The entire documentation in export trade can be basically divided into two categories:

• Export Documents• Pre-shipment Documents• Post-shipment Documents

The standard pre-shipment documents include:

• Customs Invoice• Packing List• G R Form (original and duplicate)• ARE-1 Form (original and duplicate)• Copy Of Export order • Letter Of Credit

The standard pre-shipment documents include:

• Custom attested invoice• Custom attested packing list

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Existing Companies in the market

1. Tata International Ltd.

2. Florind Shoes Ltd.

3. Punihani International

4. Farida Shoes Ltd.

5. Mirza Tanners Ltd.

6. T. Abdul Wahid & Company

7. Hindustan Lever Ltd.8. Super House Leather Ltd.

9. RSL Industries Ltd.

10. Presidency Kid Leather Ltd.

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Growth

Whilst IT spends growth is expected to hardly change in September 2011 compared with August for all

manufacturers, the top growing manufacturing sectors will see advancement. The highest spend increases

are projected for Petrochemicals followed by Leather Products manufacture.

A. Cow and Buffalo Leather

We are the manufacturers and exporters of Cow and Buffalo leather used in various leather

products. With our wide experience and efficient manufacturing, we have achieved remarkablegrowth in both domestic and global markets. Cow Leather Indian origin cow skin is one of the top

grades of raw materials available around the world. Our cow leather is available in various

finishes and colors. Finished Cow Leather Our finished cow leather is available in soft, nappa,

natural milled, wrink .

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Insurance

Export credit insurance protects you from the consequences of the payment risks, both political and

commercial. It enables you to expand your overseas business without fear of loss. Further, it creates a

favorable climate for you under which you can hope to get timely and liberal credit facilities from the

banks at home.

You can obtain Export Credit Insurance from the Export Credit and Guarantee Corporation of India

Limited. In order to provide you Export Credit Insurance, the following covers are issued by the ECGC:

Standard policies to protect you against the risk of not p 7 3 receiving payment while trading with

overseas buyers on short-term credit.

Specific policies designed to protect you against the risk of not receiving payment in respect of:

• exports on deferred payment terms

• services rendered to foreign parties

• construction work, including turnkey projects undertaken abroad

The policies are either:

Whole Turnover Policies in the form of 'Open Cover' in respect of shipments made during 24 months

period. You have to obtain credit limit on each one of your buyers to enable ECGC to approve a limit on

the basis of credit worthiness of the buyer. These policies are basically similar to whole turnover policies

but only apply to specific contracts.

Specific Policies for exports of capital goods on medium or long-term credit, turnkey projects, civil

construction works and technical services. These policies are basically similar to whole turnover policies

but only apply to specific contracts.

Financial guarantees issued to banks against risk involved in providing credit or guarantee facilities to

you, and Special schemes viz. transfer guarantee issued to protect banks which add confirmation to letters

of credit, Insurance cover for Buyers' Credit, Lines of Credit, Joint Ventures and Overseas Investment

Insurance, and Exchange Fluctuation Risk Insurance. The other guarantees which banks can offer to you

through ECGC schemes are :--- Bid Bonds,--- Advance Payments Guarantee,--- Bank guarantee for due25



performance of the contract by the exporter,---Bank guarantee for payment of retention money,--- Bank

guarantee for loans in foreign currencies. Details of these schemes can be obtained from your own banker

or local office of the Export Credit and Guarantee Corporation of India Ltd.

The Shipments (Comprehensive Risks) Policy is the one ideally suited to cover risks in respect of goods

exported on short-term credit. Shipments to associates or to agents and those against letter of credit can

be covered for only political risks by suitable endorsements to the shipments (comprehensive risks)Policy. Premium is charged on such shipments at lower rates.

For obtaining a policy you should apply to the nearest office of the ECGC in the prescribed Form no.121

(obtainable from ECGC) along with the following documents:

• Bank Certificate about the financial position

• Application form for fixing the credit limit

• Name/address of foreign buyer fixing sub-limits

After examining the proposal, ECGC would send the exporter an offer letter stating the terms of its cover

and premium rates. The policy will be issued after the exporter conveys his consent to the premium rate

and pays a non-refundable policy fee of Rs. 100 for policies with maximum liability limit p 7 3 up to Rs.

5 lakhs; Rs. 200 between Rs. 5 lakhs and Rs. 20 lakhs and Rs. 100 for each additional Rs. 10 lakhs or part

thereof subject to a ceiling of Rs. 2500.As commercial risks are not covered in the absence of a credit

limit, you are advised to apply to ECGC for approval of credit limit on buyer in the prescribed Form

No:144 (obtainable from ECGC) before making shipment. Credit limit is the limit up to which claim can

be paid under the policy for losses on account of commercial risks. If no application for credit limit on a

buyer has been made, ECGC accepts liability for commercial risks up to a maximum of Rs. 5, 00,000 for

D.P. /C.A.D. transactions and Rs. 2, 00,000 for D.A. transactions provided that at least three shipments

have been effected to the buyer during the preceding two years on similar terms, at least one of them was

not less than the discretionary limit availed of by the exporter and the buyer had made payment on the

due dates

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Leather EXIM Project

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