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Indian Footwear Industry A Status Note

The footwear sector is a very significant segment of the leather industry in India; rather it is the engine of growth for the entire Indian leather industry. India is the second largest global producer of footwear after China, accounting for 13% of global footwear production of 16 billion pairs. India produces 2065 million pairs of different categories of footwear (leather footwear - 909 million pairs, leather shoe uppers - 100 million pairs and non-leather footwear - 1056 million pairs). India exports about 115 million pairs. Thus, nearly 95% of its production goes to meet its own domestic demand. The major production centers in India are Chennai, Ranipet, Ambur in Tamil Nadu, Mumbai in Maharastra, Kanpur in U.P., Jalandhar in Punjab, Agra, Delhi, Karnal, Ludhiana, Sonepat, Faridabad, Pune, Kolkata, Calicut and Ernakulam. About 1.10 million are engaged in the footwear manufacturing industry. . Footwear exported from India are Dress Shoes, Casuals, Moccasins, Sport Shoes, Horrachies, Sandals, Ballerinas, Boots, Sandals and Chappals made of rubber, plastic, P.V.C. and other materials. Brands sourced from India:

Footwear Acme, Ann Taylor, Bally, Charter Club, Clarks, Coach, Colehann, Daniel Hector, Deichmann, DKNY, Double H, Ecco, Elefanten, Etienneaigner, Florsheim, Gabor, Geoffrey Beene, Guess, Harrods, Hasley, Hush Puppies, Kenneth Cole, Liz Claiborne, Marks & Spencer, Nautica, Next, Nike, Cole Haan, Nunn Bush, Pierre Cardin, Reebok, Rockport, Salamander, Stacy Adams, Tommy Hilfiger, Tony Lama, Versace, Yves St. Laurent, Zara, Johnston & Murphy, Docksteps, Timberland, Armani, Geox, Diesel, Ted Baker, Lacoste, Kickers, Calvin Klein, Sioux, Brasher, Zegna, Massimu Dutti, Buggatti, Lloyd, Christian Dier, Salamander, Camper, Bata, Espirit, French Connection, Legero, Mercedez, H & M and many more famous brands

Besides, major brands are sourced from India, MNC brands are sold in India and Indian brands sold in India.

MNC Brands Sold in India

Indian Brands sold in India

Aldo, Bally, Clarks, Ecco, Florshiem, Ferragammo, Hush Puppies, Lee Red Tape, Bata, Liberty, cooper, Lloyd, Marks & Spencer, Khadims, Lakhani, Metro, Nike, Nine West, Action New Balance, Reebok, Rockport, Stacy Adams, Tods, Geox , Louis Vuitton US Retail giant Wal-Mart has also begun sourcing footwear from India since the last two years. The Footwear sector is now de-licensed and de-reserved, paving the way for expansion of capacities on modern lines with state-of-the-art machinery. To further assist this process, the Government has permitted 100% Foreign Direct Investment through the automatic route for the footwear sector. Conducive Investment climate towards attracting overseas investments and increasing cost competitiveness. The Government of India is setting up dedicated Footwear Complex and Footwear Components Part where footwear clusters are located. There has been active interest in collaborating with Indian Footwear companies from European countries like Italy, Spain and Portugal. Footwear Imports Global Trend: Major Importing Countries of Footwear (Leather and Non-Leather) (Value in Million US$)

Country USA Germany

2006 19835.93 5591.77

2007 20039.13 5966.99

2008 20104.41 6529.33

2009 17904.13 6037.73

2010 21530.97 6814.89

France UK Italy Hong Kong Japan Russia Spain Netherlands Belgium Canada

4778.07 4950.49 4047.37 4984.59 3509.83 1121.68 2036.21 1978.33 2057.39 1507.21

5473.04 5281.55 4529.77 4881.67 3750.04 2067.82 2388.74 2297.95 2543.04 1677.05

5714.00 5213.00 4810.25 4944.40 4112.99 2843.81 2917.97 2570.86 2892.62 1748.04

5379.78 4772.59 4484.10 3974.30 4077.58 2149.42 2464.34 2481.35 2554.50 1645.09

5802.18 5529.01 4928.22 4676.06 4468.16 3768.80 2816.83 2752.38 2554.59 1869.25

Source: ITC, Geneva Major Exporting Countries of Footwear (Leather and Non-Leather) (Value in Million US$)

Country China Italy Hong Kong Vietnam Belgium Germany

2006 21014.63 8246.51 5692.82

2007 24181.69 9712.94 5639.64

2008 28115.96

2009

2010

26571.20 33665.11 8754.52 5243.74

10218.75 8189.14 5666.05 4502.49

2960.28 2607.89

3375.63 2999.19

3680.80 3611.90

3464.10 3194.69

3716.77 3443.61

Spain Indonesia Netherlands France Portugal Brazil India

2147.74 1514.63 1577.03 1535.21 1465.11 1863.07 1236.91

2440.47 1567.05 1811.96 1840.51 1695.88 1911.74 1489.35

2670.35 1828.44 2240.70 2015.13 1797.00 1881.30 1534.32

2487.12 1688.35 2235.80 1800.70 1552.74 1359.98 1507.59

2449.73 2428.72 2412.14 1969.58 1719.67 1472.42 1732.04

Source: ITC, Geneva Footwear Global Scenario and Indias share The global import of Footwear (both leather footwear as well as non-leather footwear) has increased from US$ 73.79 billion in 2006 to US$ 91.37 billion in 2010, growing at a CAGR of 5.48%. During 2010, the Indias share in the global import is 1.95%. (In Million US$) 2006 2007 2008 2009 2010

Global import of Footwear 73795.96 81574.25 88731.08 78249.66 91373.82 India's export of Footwear & Uppers % Share of India 1236.91 1489.35 1534.32 1.67% 1.82% 1.72% 1507.59 1758.67 1.92% 1.92%

Source: ITC, Geneva & DGCI &S, Kolkata Global Footwear import includes leather & non-leather Indias Footwear includes Leather, non-leather and uppers Footwear is the engine of growth of the leather industry in India. Indias export of Footwear touched US$ 2077.27 million in 2011-12, accounting for a share of 42.67% in Indias total export from the leather sector of US$ 4868.71 mn

Indias Footwear export (leather, uppers & non-leather) is growing at a CAGR of 8.67% in the last five years ending 2011-12

Indias export of leather footwear had increased from US$ 1174.03 million in 2007-08 to US$ 1715.17 million in 2011-12 Indias export of footwear components had increased from US$ 269.30 million in 2007-08 to US$ 281.83 million in 2011-12 Indias export of non-leather footwear has increased from US$ 46.02 million in 2007-08 to US$ 80.27 million in 2011-12

Indias Footwear Export Growth over the last Four Decades Export of footwear from India increased manifold over the last four decades. During 2011-12, Indias footwear export is valued at US$ 2077.27, constituting 42.67% share in total export of leather & leather products.

Footwear exports has increased from US$ 119.72 million in 1981-82 to US$ 2077.27 million in 2011-02 Major Markets: During 2010-11, the main markets for Indian Footwear are UK with a share of 19.16%, Germany 16.15%, Italy 12.46%, USA 8.04%, France 8.93%, Spain 6.45%, Netherlands 4.51%, Portugal 1.41%, U.A.E 2.45% and Denmark 0.97.%. These 10 countries together accounts for 80.53% share in Indias total footwear export. Nearly 90% of Indias export of footwear goes to European Countries and the USA. Future growth of Indian footwear in India will continue to be market driven. The European countries and the US are major consumers for the Indian footwear.

A Statement showing Indias Export of Footwear to different countries: (Value in Million $) Country Germany UK Italy USA France Spain Netherlands Portugal UAE Denmark Australia Sweden Canada South Africa Japan Others Total 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 % Share 170.97 195.78 134.35 131.07 74.48 63.7 32.96 22.15 25.78 18.37 11.58 6.77 11.95 8.26 3.17 133.9 217.23 208.2 186.11 127.15 99.81 64.57 48.57 35.03 34.64 14.65 10.11 7.99 10.91 12.11 3.07 156.76 246.84 241.37 229.81 136.92 116.03 76.69 72.91 37.34 39.23 17.48 12.52 12.04 10.41 8.52 4.63 226.61 229.65 247.06 221.09 163.03 119.2 91.86 76.2 28.21 39.4 14.78 13.34 12.64 8.96 8.49 8.23 252.18 224.3 296.45 210 123.6 144.56 95.94 65.13 22.63 39.45 17.01 15.5 12.2 9.3 9.87 5.45 216.2 286.7 339.65 219.72 143.02 154.95 112.05 6.19 25.69 41.82 16.55 12.82 12.07 10.56 11.33 7.51 358.04 353.77 360.48 219.79 183.1 159.27 113.85 101.72 28.77 62.06 24.3 15.59 14.08 15.01 14.75 14.63 17.03% 17.35% 10.58% 8.81% 7.67% 5.48% 4.90% 1.38% 2.99% 1.17% 0.75% 0.68% 0.72% 0.71% 0.70%

396.10 19.07%

1045.24 1236.91 1489.35 1534.32 1507.59 1758.67 2077.27 100.00%

Future Trends: - Keeping in view its past performance, current trends in global trade, the industrys inherent strengths and growth prospects, the footwear industry aims to augment production, thereby enhancing its exports from the current level of US$ 2.07 billion.

Indian footwear industry poised for growth India has state-of-the-art manufacturing plants. The footwear sector has matured from the level of the manual footwear manufacturing method to the automated footwear manufacturing systems. Footwear production units are installed with world class machines. Manned by skilled technicians, these machines help to turn any new innovative idea into reality. Support systems created for the sector have indeed served the footwear industry well. India has a well developed footwear component manufacturing industry. The future growth of the footwear industry in India will continue to be market-driven, and oriented towards EU and US markets. With technology and quality of the footwear improving year after year, Indian Footwear industry is stamping its class and expertise in the global footwear trade.

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For More details Click Here Skip to main content Search 1. Home 2. Businesses and self-employed 3. Manufacturing 4. Import and export of manufactured goods Updated 13 June 2013 Fixing references to specialist guides 13 June 2013 15:17 First published. 11 September 2012 10:58 UK Trade & Investment

Clothing, footwear and fashion: international trade regulations

Regulations affecting exporters and importers in the clothing, footwear and fashion sector in the adult and children's markets. This replaces Business Link

Contents
1. Introduction 2. Export regulations in the clothing, footwear and fashion sector 3. Export licensing and certification in the clothing, footwear and fashion sector 4. Researching your export destination 5. Tariffs and duties in the clothing, fashion and footwear industry 6. Import regulations in the clothing sector 7. Importing children's clothing into the UK 8. Sources of help and support in the clothing, footwear and fashion sector 9. Further information 10. See more like this

Introduction
This guide provides an overview of the clothing, footwear and fashion sector in the adult and childrens markets, the key regulations you will need to comply with as an exporter or importer and selected sources of further help and support. This guide will show you how to research your export destination for a wide range of garments and products, comply with and benefit from tariffs and duties and meet the quality requirements for childrens clothing in particular. You can find commodity codes and other measures applying to imports and exports by accessing the free online UK Trade Tariff. See the detailed guides for help with classifying textile apparel and classifying footwear.

Export regulations in the clothing, footwear and fashion sector

Regulations, charges or other restrictions may apply to clothing, footwear and fashion exports as they leave the UK and when they arrive at their destination country. It is important that you research both sides of the transaction. For more information, see the guides on exporting your goods from the EU to a third country and dispatching your goods within the EU.

First, you need to classify your goods. Use of standardised classification codes makes it easier to check if any restrictions or charges apply. You can use the Integrated Tariff of the United Kingdom (the Tariff) to classify your goods. For more information, see the guide on classification of goods. Find commodity codes and other measures applying to imports and exports by accessing the free online UK Trade Tariff. Remember that in general it is much simpler to trade with other EU countries than with countries outside the EU. This is because the goods are in free circulation. The EU is a single market and the UK is in a Customs Union, so you can trade with other EU countries without restriction (although some local charges may still apply). Some markets, eg the Ukraine, require exports of second-hand clothes to be washed before theyre packed for consignment. UK Trade & Investment advisers will advise you on a country-by-country basis about sanitary regulations for exports of second-hand clothes and shoes. Find your local international trade team on the UK Trade & Investment website.

Exporting goods for processing

You may be able to obtain relief from customs duties when you re-import EU goods that have previously been exported from the EU for processing. Outward Processing Relief (OPR) enables you to claim relief from customs duty if you can show that the exported goods were used in - or incorporated into - the products being imported. Before you can claim duty relief under OPR, however, you must have the appropriate authorisation. For more information, read notice 235 on OPR on the HM Revenue & Customs (HMRC) website and see the guide on outward processing relief (OPR).

Export licensing and certification in the clothing, footwear and fashion sector
If you export goods with military uses or textiles or garments over 50 years old and above a certain value, you will need an export licence.

Goods with military uses

You may require an export licence for goods with a potential military use, eg clothing with camouflage capabilities. Read about strategic export controls in the section on the Export Control Organisation. An export licence is required in order to export specified goods with military uses - eg camouflage textiles or garments. You should consult the Military List and Dual-Use List to find out if you need a licence for any product. You can also find out if restrictions

apply to your exports on the Department for Business, Innovation & Skills (BIS) Goods Checker website (registration required). Watch a video about your export control responsibilities and how you can ensure you have the correct licences on the BIS website.

Textiles or garments over 50 years old

Textiles or garments that are over 50 years old and worth more than 12,000 need an export licence as they qualify as antiques or works of art. These licences are issued by the Arts Council Export Licensing Unit. Contact the Arts Council Export Licensing Unit on 020 7973 5188, via email at elu@artscouncil.org.uk or post your enquiry to: Export Licensing Unit Arts Council England 14 Great Peter Street London SW1P 3NQ For information on export licences, read the guide Do your goods need an export or import licence?

Researching your export destination

As a starting point you may wish to seek advice from UK Trade & Investment. Find your local international trade team on the UK Trade & Investment website. There are also various ways that you can research a potential export destination. These include:

online databases - you can search by destination country and category of goods on the Market Access Database website trade associations

You can find commodity codes and other measures applying to imports and exports by accessing the free online UK Trade Tariff. You should also consider product safety and other technical standards in your export market. Your goods may need to be adapted to comply with these where they differ from those in the UK. For a general guide to market information on sectors and countries, see the guide on researching and entering overseas markets.

Find information on exporting on the UK Trade & Investment website.

Tariffs and duties in the clothing, fashion and footwear industry

There is a range of import-specific regulations that must be complied with by all businesses in this sector. The key issues relate to the Tariff, duties, Intrastat and intellectual property (IP).

Using the Integrated Tariff

A common customs tariff is applied across all EU countries on goods imported from outside the EU. Details of specific tariff duties and measures are contained in the Integrated Tariff of the United Kingdom. Find commodity codes and other measures applying to imports and exports by accessing our free online UK Trade Tariff. For more information on classifying your goods, see the guide on classification of goods. The Tariff is used to determine the specific classification code of your goods and to find out:

any licensing requirements that apply the rates of duty and import VAT that apply any additional charges, such as anti-dumping duties any available preferential duty rates

Preferential rates of duty

Often used by textile industry traders, the Generalised System of Preferences (GSP) allows originating products from a wide range of countries to be imported into the EU at a reduced or zero rate of duty. For more information on how to determine whether a product is an originating one, read Notice 830 - Tariff Preference: New GSP rules of origin on the HMRC website. The European Community has a number of other preferential trade agreements with third countries (countries outside the EU), as a result of which goods may attract preferential rates of duty.

Intrastat
If you are VAT registered and the goods you acquire from or supply to VAT-registered businesses in other EU countries reach the Intrastat exemption threshold for the year, you

must submit monthly supplementary declarations to HMRC. The thresholds are 600,000 for Arrivals and 250,000 for Dispatches. Intrastat is the method of collecting information and producing statistics on goods traded between EU member states. See the guide on Intrastat - reporting the value and volume of intra-EU trade. Intrastat is only applicable to VAT-registered traders.

Intellectual property
You should ensure that imported goods do not breach the IP rights of other businesses, eg watch out for counterfeit goods and design infringements. Infringing goods can be seized and destroyed by HMRC. You can ask HMRC to check for imported counterfeit versions of your goods. Read how HMRC can help protect your IP rights on the HMRC website.

Import regulations in the clothing sector

As the EU is a Customs Union, you can buy most goods from other member countries without restrictions - although VAT and excise duty can still apply. If you import from outside the EU, you may have to comply with import licensing requirements and with common customs tariffs that apply across the EU. For more information, see the guide on importing your goods from outside the EU.

Import licences
Import restrictions can be product-specific or trade-specific. Many products are subject to product-specific standards and need to be supported by applicable certificates, productspecific licences and documentation. Quite separately, quantitative restrictions or limitations and anti-dumping duties may apply to certain imported commodities. For more information, see the guide on antidumping and countervailing duties. For help identifying whether you require an import licence see the guide: do you need an export or import licence? Use the Tariff for classifying your goods in order to find out which duties and measures apply. See the guide on an introduction to the Tariff. The trade in some goods may be prohibited unless you have a specific licence issued by the competent authority. The Import Licensing Branch of the BIS issues licences where it needs to implement trade policy measures. Trade restrictions currently include certain textiles originating in Belarus, North Korea and Uzbekistan. Import licences are no longer required for certain

textiles originating in China - for further information download Notice 2767 from the BIS website (PDF, 32K).

Safety regulations and labelling requirements

If you sell imported clothes and footwear in the UK, you need to check that your products meet relevant safety regulations and labelling requirements, including:

the Footwear (Indication of Composition) Labelling Regulations 1995 - download guidance on footwear labelling from the BIS website (PDF, 58K) the Textile Products (Indication of Fibre Content) Regulations 1986 - find information on how to label items of clothing on the Trading Standards website correct use of the textile names set out in EU directives, you can download Directive 2008/121/EC setting out definitions and tables of textile fibres from the Europa website (PDF, 116K)

Clothes sizes tend to vary from country to country and even from store to store. There are no regulations that you have to follow by law, but there are three European standards on clothes sizing which aim to establish a common sizing system. They are known as: EN 13402-1:2001, EN 13402-2:2002 and EN 13402-3:2004. You must also comply with safety requirements for childrens clothes and footwear.

Domestic business standards

Goods imported into the UK must comply with domestic business standards, including safeguarding any intellectual property, pollution regulations, and packaging and textile labelling rules. You must also comply with other product safety standards, such as nightwear labelling and restrictions on the use of some dyes.

Importing childrens clothing into the UK

When you import childrens clothing and footwear, you will need to meet certain quality requirements if they are being sold to customers in the UK.

Regulations applicable to childrens clothing

The rules and regulations you should be aware of include:

the General Product Safety Regulations 2005 the Childrens Clothing (Hood Cords) Regulations 1976 the Nightwear (Safety) Regulations 1985

You can read further details about the regulations affecting childrens clothing on the National Archives website.

BSI Code of Practice

A BSI British Standards Code of Practice (reference number BS 7907:2007) is available to purchase. It recommends materials, design and manufacturing guidelines to promote the safety of childrens clothing. Read detailed information about BS 7907:2007 on the BSI website (registration required).

VAT reduced and zero rates

Under VAT rules, most items of childrens clothing and footwear are eligible for a reduced rate of 0 per cent VAT (ie no VAT) in the UK, but there are some exceptions. If your business has been declared exempt from VAT registration because it only sells zerorated items, you should check that the items you are importing meet the necessary requirements. You can find out about the conditions for VAT zero-rating on the HMRC website. Some goods are also outside the scope for VAT, which means you do not need to charge VAT. Generally, goods are considered outside the scope if they are supplied by someone who isnt VAT registered, supplied outside the UK or the Isle of Man, or if the goods are not part of your daily business. See the guide on VAT rates explained: standard, reduced, zero, exempt. If you are unsure whether to charge VAT on your goods, call the HMRC VAT helpline on 0845 010 9000.

Sources of help and support in the clothing, footwear and fashion sector
As an importer or exporter in the clothing, footwear and fashion sector, you can turn to a range of bodies for help and information. The government organisation with primary responsibility for providing trade support is UK Trade & Investment. You can find information on the services they offer to exporters on the UKTI website. You can also find details of your local International Trade Team using a postcode search on the UKTI website.

Government sources of help and information

In addition to UK Trade & Investment, other government bodies that provide business support in the clothing, footwear and fashion sector include:

HMRC - you can find information about importing and exporting on the HMRC website

Trade associations and other bodies

Links to useful associations for exporters are listed below:

visit the British Fashion Council website find out about the Creative Industries Unit of the British Council on the British Council website visit the Textile Recycling Association website visit the British Fur Trade Association website visit the 5 Portland Place website

You can also find contact details for trade associations and other bodies from our website.

Further information
HMRC Tariff Classification Service Enquiry Line
01702 366 077

UK Trade & Investment Enquiry Line

020 7215 8000

BIS ECO Helpline

020 7215 4594

HMRC VAT Helpline

0845 010 9000 Import and export guidance on the HMRC website International trade team search on the UK Trade & Investment website Trade data information on the uktradeinfo website Export restriction checker on the BIS Goods Checker website (registration required) Outward Processing Relief information on the HMRC website Export licensing information on the Arts Council website Country and category of goods database on the EU Market Access Database website

Generalised System of Preferences guidance on the BIS website EU-wide customs tariffs guidance on the HMRC website Import goods licences listed on the BIS website Clothing labelling information on the Trading Standards website BS 7907:2007 available to purchase on the BSI website Back to contents

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