NEW DELHI: India is working on new regulations for toy imports which would make it mandatory for all countries wanting to sell toys to India to
meet prescribed quality norms. The move follows China’s complaint that the quality restrictions imposed by India on Chinese toys violated the World Trade Organization (WTO) rule of treating all member countries alike.
The directorate general of foreign trade (DGFT)—the section handling foreign trade issues in the ministry of commerce and industry—is likely to draft a notification bringing about appropriate changes in import rules for toys, a commerce department official said.
Since more than 90% of India’s toy imports are from China, the move is unlikely to generate any resistance or debate, a commerce department official said. Whatever little that is imported from other countries including South Korea and Japan are high-segment toys which already follow international quality norms, the official added.
“We don’t foresee any problems bringing out a legislation where quality restrictions will be imposed on all countries,” the official said.
India had placed a blanket ban on import of toys from China earlier this year for a period of six months. The ban was subsequently lifted partially with India prescribing that only toys which adhere to prescribed quality norms will be allowed.
China raised objections to the restrictions on the ground that it was only placed on toys from the country. In a representation to the WTO, China said that the restrictions violated basic norms of WTO which lays down that countries should treat all member countries alike (the most favoured nation status) and give another businesses from member countries the same treatment given to those in the home country (national treatment).
When Chinese vice minister of commerce Zhong Shan visited India recently, he was assured by the commerce ministry that China’s grouses will be looked at.
India will, however, find it difficult to implement quality norms on domestic industry as there a large number of cottage industries making toys which cannot follow the regulations. “Talks are on between the ministry of consumer affairs and ministry of micro, small and medium enterprises on how best to implement quality regulations on the domestic industry. We will see if very small units could be given an exemption,” the official said.
The restrictions on Chinese imports has come as a relief to the domestic toy industry which has been reeling under intense competition from the neighbouring country. As per industry estimates, Chinese toys constitute more than 60% of toys sold in India. The Indian toy industry is approximately worth Rs 2,500 crone of which Rs 1,000 crore is in the organised sector and the rest is in the unorganised sector.
Source : The Economic Times