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Council for Leather Exports (CLE): Documents, Fees, Benefits, Membership

Home List of Export Promotion Councils in India Council for Leather Exports (CLE): Documents, Fees, Benefits, Membership
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Updated: 22-09-2020 09:21:27 AM

The Council for Leather Exports (CLE) is a non-profit organization that engages in the promotion of leather exports and developing leather & leather products industry. CLE, being a body of 3500 plus members is a part of the Export Promotions Council, falls under the banner of the Ministry of Commerce & Industry. The council works aggressively towards the development of leather exports through various government assisted schemes and bank facilitated measures.
The core idea behind the functioning of this council lies in the efforts of the government to boost exports. CLE continuously makes efforts to provide necessary guidance to entrepreneurs who want to set up or merge with Indian Leather companies. There have been substantial efforts in improvising the process of loan disbursement, and gathering credit in form of business loans for startup enterprises, SMEs or MSMEs.
CLE undertakes various activities around the year to establish a link between buyers and sellers, both from the domestic and international markets. It not only encourages the companies to participate in global trade shows, but also organizes expositions to foster the Indian Leather and Leather Products Market.
CLE mandates a certification provided by an issuing authority to avail the benefits under the Export Promotion Scheme.
The Registration-cum-Membership Certificate (RCMC) is issued to an exporter after he/she becomes the member of CLE. RCMC is valid for 5 years and subject to renewal every year. It has categorised its members on the basis of the export Freight on Board (FOB) turnover value, namely,

  1. Associate Members – FOB value of exports below Rs. 15 lakh.
  2. Ordinary Members – FOB value of exports above Rs. 15 lakh.

This membership would enable the members to participate in numerous schemes.

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Documents Required, Fees & Charges to Become a CLE Member
Benefits of Becoming a CLE Member
FAQs

Documents Required, Fees & Charges to Become a CLE Member

An individual or a company manufacturing or trading leather and leather products can apply for the membership of the CLE. The applicant requires the following documents:

  • Application form of CLE
  • Application form for Registration-cum-Membership Certificate (RCMC)
  • A self-attested copy of GST Registration
  • A self-attached copy of the Import-Export Code (IEC) Number issued by the concerned authority
  • In case the exporter is in manufacturing, a self-attested copy of registration under Department of Industries and Commerce. A Udhyog Aadhaar Memorandum, Industrial Licence, IEM certificate etc. are examples of the documents that are considered valid
  • A copy of the export performance of last 3 years duly signed by a banking authority
  • A membership fee is supposed to be paid through a Demand Draft or an Account Payee Cheque drawn in favor of “Council for Leather Exports”

Click here to submit the application form and become a CLE member.

There are different categories based on the export FOB value. The following schedule explains the different segments.

Member category based on previous year export FOB value Entrance fee Annual Fees GST 18%  

Total
Associate Members:
Below Rs.15 lakh (G) Rs.3500 Rs.5000 Rs.1530 Rs.10030
Ordinary Members:
Above Rs.15 lakhs & upto 1 crore (F) Rs.5000 Rs.7000 Rs.2160 Rs.14160
Above Rs. 1 crore & upto 5 crore (E) Rs.5000 Rs.15000 Rs.3600 Rs.23600
Above Rs. 5 crore & upto 10 crore (D) Rs.5000 Rs.20000 Rs.4500 Rs.29500
Above Rs. 10 crore & upto 50 crore (C) Rs.5000 Rs.30000 Rs.6300 Rs.41300
Above Rs. 10 crore & upto 100 crore (B) Rs.5000 Rs.40000 Rs.8100 Rs.53100
Above Rs. 100 crore (A) Rs.5000 Rs.50000 Rs.9900 Rs.64900

Note: The above fees and charges are taken from the official website of CLE; however the exact fees and charges shall be defined by the council itself.

Benefits of Becoming a CLE Member

The members have an added advantage to participate in the schemes that help in promotion of the business through marketing, financing and strategic decision-making.

1. Marketing Development Assistance: A member who has completed 12 months of Membership in CLE and has complied with the monthly filing of export returns can avail the benefit of aggressive marketing campaigns organized by CLE in the form of exhibitions in India and abroad under the banner of Marketing Development Assistance (MDA). Exporters who have a FOB value of export from Rs. 3 lakh and up to Rs. 30 crore per annum can participate in the MDA scheme and avail reimbursement on their part of the expenditure incurred on trade delegations, fairs, exhibitions, etc. in India and abroad.

2. Duty Free Import Scheme (DFIS): The following schedule explains the category and rate of duty free import that can be benefited under the DFIS scheme.

Notified Eligible Inputs 3% of FOB value of export realization
Lining and Interlining materials for leather garments exporters 2% of FOB value of export realization
Manufacturer-exporters of leather garments 3% of FOB value of export realization
Merchant-exporters of Leather Garments 3% of FOB value of export realization
Footwear and other leather products for Manufacturer-Exporters only 3% of FOB value of export realization

3. Merchandising Exports from India Scheme (MEIS): This scheme, falling under the umbrella of Export Promotion Schemes notified under the Foreign Trade Policy, allows for a 3% duty scrip for notified leather products and footwear and 2% scrip for finished leather for export to Group A and Group B countries. This duty scrip can be used to offset the payment of custom duty charged on import of goods or inputs, payment of excise duty on domestic purchases.

4. Zero Duty Export Promotion Capital Goods (EPCG) Scheme: Capital goods for pre-production, production and post-production can be imported at zero Customs Duty subject to the fulfillment of an export obligation equivalent to 6 times of duty saved on imports under this scheme in 6 years from Authorization issue-date.

5. Market Access Initiative (MAI) Scheme: Under MAIS, an exporter is benefited from the subsidy that is passed on by the CLE for organizing India Leather Expositions and participation in exhibitions.

 6. Integrated Development of Leather Sector (IDLS): This scheme focuses on upgradation of leather industries into a modern and technologically advanced production houses.

 The following schedule will explain the investment that can be availed under the Indian Leather Development Programme:

Upgradation of plant and machinery in Small Scale Industries Upto 30% of cost subject to a ceiling of Rs. 50 lakh
Upgradation of plant and machinery in non – Small Scale Industries Upto 20% of cost subject to a ceiling of Rs. 50 lakh

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FAQs

What is CLE?

Council for Leather Exports, part of the Export Promotions Council, thrives to promote and develop the Indian leather and leather products market. A plethora of benefits in marketing, financing, participation in global trade fairs to promote the leather industry are added advantages for a member of the CLE.

Is it compulsory to have RCMC certification to avail the benefits under CLE?

Various schemes require an individual to have both, a valid RCMC certificate and continuing membership. Hence, it becomes mandatory to hold a valid certificate.

Does CLE provide financial assistance to its members?

CLE indirectly helps its members financially by subsidizing, exempting, or off-setting duties on import of input and goods. However, core financial assistance of trade financing, discounting export bills, pre-shipment credit et al. cannot be availed as a service from CLE.

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