New phase of processing from crust

Tanners around the world cite many reasons for preferring crust these days. Many like to start their processing from a 'cleaner' stage; wet-blue is more expensive and awkward to transport long distances and warehousing is critical. Producing crust keeps many tanneries ticking over where leather is experiencing a downturn, or relocating to lower cost continents. In Türkiye, tanneries have long preferred to process leather from the raw state. Most say they can control quality better on raw hides and that it is difficult to alter established processes and machinery parks overnight. But, Turkish agents report renewed interest in bringing crust to tanneries. Izmir-based Nuran Yenisehirli, agent for Colomer Group's Ledexport division, said she had been in discussions with the Spanish company about moving more crust and pickled leathers into Türkiye. Avram Kastro, an established trader, also in Izmir, agrees that crust is slow in catching on but identifies the reason. 'Raw leather attracts a 1% value added tax (VAT) coming in as unprocessed material', he explained. Crust and wet-blue, however, are deemed semi-finished for import purposes and attract VAT at the standard rate of 18% when sold on locally. This large imbalance works against tanners who import doubleface skins. A solution is slow to materialise and, with finance already a concern, producers will opt for raw leather imports for the forseeable future.