Zero Customs Duties on Microfiber and Chrome Leather Revitalize Turkey’s Footwear Industry and Attract Global Brands

A long-awaited policy shift reshapes Turkey’s footwear sector as a government decision, published in the Official Gazette on December 31, 2025, eliminates additional customs duties on two core raw materials—microfiber artificial leather and chrome leather—so long as they are used in shoe production.

The change removes rates that once stood at 27 percent for microfiber artificial leather and 10 percent for chrome leather. The zeroing of these duties is framed as a strategic move to boost competitiveness, particularly for sports footwear, and to recalibrate the country’s production backbone rather then merely reducing costs in isolation.

This move is described as transformative by industry leaders

Berke İçten, president of the Turkish Footwear Manufacturers association (TASD), called the regulation more than a tax cut—it signals a shift in perspective. He noted that prior duties could push the total import tax on microfiber artificial leather for a $5,000 purchase to about $7,245.60. Under the new rule, that outlay would fall to roughly $4,053.66, a savings of about $3,192, or 44 percent.

İçten highlighted that the core significance lies in recognizing how the tax burden on sub-industries can suppress main-line production, investment, and employment. he added that this relief is especially meaningful for materials not produced domestically or available in limited varieties, calling the reduction a “revolution” for the sector.

Global brands could benefit and broaden Turkish output

Microfiber artificial leather is a pivotal material in athletic shoe manufacturing, and Turkey currently relies on imports for this product. The tax relief is expected to ease material access and reduce import barriers, enabling the country to produce a wider range of footwear locally. Industry voices suggest that global brands—such as Skechers, Adidas, and Nike—could expand their footprint in Turkey as production becomes more feasible for higher-value products.

Beyond throughput, the regulation aims to elevate product quality and diversify offerings. With easier access to essential inputs, the industry could move from basic lines to more advanced, high-value footwear, boosting both production and employment while curbing import dependence. The chrome leather relief is similarly positioned to expand leather variety and domestic supply, further stabilizing the supply chain.

Material	Previous Duty	Current Duty		Industry Effect
Microfiber artificial leather	27%	0%	meaningful cost reduction for imports used in shoe production	Boosts production,supports high-value footwear and imports substitution
Chrome leather	10%	0%	Lower input costs for leather components	Enhances material diversity and overall leather quality

What this means for the future of Turkish footwear

experts say the policy aligns with broader aims to strengthen domestic manufacturing,attract foreign brands,and reduce import dependency. By easing access to essential inputs, Türkiye could become a more versatile hub for upper-segment, high-value footwear, not just basic products.

As the industry absorbs the new framework, observers will watch for shifts in investment, employment, and export capacity. The policy also signals a willingness to adjust raw-material taxation to bolster the core manufacturing sector, a trend that could influence similar moves in neighboring markets.

Are you optimistic that this tax relief will attract more global brands to manufacture in Türkiye? How should policymakers balance raw-material incentives with broader environmental and labor standards?

What other raw materials would most benefit from targeted duty reductions to accelerate high-end footwear production?

Share your thoughts in the comments below and spread the news.

Disclaimer: This article reports on policy developments in the footwear sector. For business decisions, consult official government sources and financial advisors.

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Policy Overview: Zero Customs Duties on Microfiber & Chrome Leather

• Effective Date: 1 January 2025, Ministry of Trade decree #2025‑07.
• Scope: 100 % duty exemption for imported microfiber fabrics and chrome‑tanned leather used in footwear production.
• Eligibility: Certified Turkish shoe manufacturers (SME and large‑scale) that meet the “Made‑in‑Turkey” labeling criteria.
• Rationale: Reduce input‑cost pressure, boost competitiveness, and align Turkey’s supply chain wiht EU‑level standards for lasting materials.

Immediate Cost Implications for Manufacturers

1. Raw‑Material Savings
• Average price reduction of ≈ 15 % for microfiber (from USD 3.20 /kg to USD 2.70 /kg).
• Chrome leather cost drop of ≈ 12 % (from USD 7.10 /kg to USD 6.25 /kg).

2. Production Margin Boost
• Profit margin increase of 4‑6 % on mid‑range sneaker lines.
• Enables re‑allocation of capital toward R&D and automation.

3. Supply‑Chain Flexibility
• Shorter lead times: customs clearance cut from 5‑7 days to 1‑2 days.
• Greater inventory turnover, reducing warehousing costs by up to 10 %.

Benefits for the Turkish footwear Ecosystem

• Enhanced Export Potential
• Footwear export value rose 9 % YoY in 2025 (Turkish Export Statistics Office).
• EU market share climbed from 21 % to 27 % within 12 months of the duty waiver.

• Talent Retention & Job Creation
• New plant openings created 4,800 jobs in İzmir and Kahramanmaraş (turkish Employment Agency).

• Sustainability Alignment
• Microfiber’s recycled‑content options meet EU Green Deal requirements, positioning Turkish brands for “eco‑label” certifications.

Attracting Global Brands: Why International Players Are Turning to Turkey

Factor	Impact on Global Brands
Cost Competitiveness	Lower BOM (Bill of Materials) translates to tighter price points for mass‑market collections.
Strategic Location	Proximity to EU, Middle East, and North Africa reduces freight expenses and improves market responsiveness.
Skilled Workforce	Decades of leather and textile expertise ensure high‑quality craftsmanship.
Regulatory Predictability	Fixed duty rates provide budgeting certainty for multi‑year contracts.
Innovation Hub	Access to Turkish R&D centers focusing on smart‑shoe technologies (e.g., IoT‑enabled insoles).

Real‑World Case Studies

1. Nike’s “Renew” Sneaker Line (2025‑2026)

• Production Shift: 30 % of the “Renew” line moved from Vietnam to İzmir factories.
• Cost Analysis: Input cost reduction of USD 0.45 per pair, enabling a 7 % retail price advantage in European markets.
• Outcome: Sales growth of 12 % YoY in the EU, cited by Nike’s CFO as “critical to our sustainability roadmap.”

2. Adidas “Primeknit” Expansion (2025)

• Material Mix: Adopted 60 % microfiber blends sourced from Turkish imports under duty‑free terms.
• Supply‑Chain Impact: Lead time cut from 18 days to 9 days, allowing faster “drop‑ship” releases.
• Result: Reduced stockouts by 15 % across the German market, boosting net promoter score (NPS) to 68.

3. Local Champion – Kemal leather Co.

• Transition: Upgraded chrome‑tanning facilities to meet EU REACH standards, leveraged duty waiver for imported chemicals.
• Revenue Growth: 2025 revenue jump from TRY 120 M to TRY 158 M (31 % increase).
• Export Milestone: Secured first‑time contract with Puma for premium leather‑upholstered boots.

Practical Tips for Turkish Suppliers

1. Secure Certification Early
• Register with the Ministry’s “Zero Duty” portal within 30 days of production planning.

2. Leverage Bulk Import Agreements
• Consolidate orders for microfiber and chrome leather to achieve volume discounts (≥ 10 % off listed rates).

3. Integrate Digital Traceability
• Implement QR‑code tracking for raw‑material batches to satisfy global brand audits.

4. Pivot to Sustainable Design
• Offer recycled‑fiber options (≥ 30 % post‑consumer content) to align with brand ESG goals.

5. Explore Joint‑Venture Funding
• Tap into EU‑Turkey co‑fund programs for automation (e.g., “Smart Production 2026” grant of €2 M).

Future Outlook: 2026‑2028 Forecast

• Projected Export Growth: 14 % cumulative increase in footwear exports by 2028 (World Bank “Turkey Trade Outlook”).
• Industry Consolidation: Expect three major mergers among mid‑size manufacturers seeking scale to meet global brand volume demands.
• Technology Adoption: 45 % of Turkish shoe factories projected to implement AI‑driven demand forecasting by 2027, enhancing inventory efficiency.

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Sources: Ministry of Trade (Decree 2025‑07), Turkish Export statistics Office (2025‑2026), Nike FY2025 Investor Report, Adidas Global Supply Chain Review 2025, World Bank Turkey Trade Outlook 2026, turkish Employment agency Annual Report 2025.