Requirement of Licenses for Toys may arise from March

India could introduce a phased license regime among other non-tariff barriers on imported toys from next March as the Indian Government wants the domestic industry to meet the recently announced quality norms first before curbing overseas products.

The Department for Promotion of Industry and Internal Trade (DPIIT) recently extended the enforcement of compulsory certification by Bureau of Indian Standards (BIS) for toys to January 1, 2021 from September 1, 2020 to encourage domestic manufacturing.

Some key highlights have been mentioned hereunder:

  • Out of India’s $1.75 billion toy market, more than 85% comprises imports, which amounted to around $1.5 billion in FY20. China and Taiwan account for around 90% of India’s imports. The Country also imports from US, Sri Lanka, Malaysia, Germany and Hong Kong.
  • The domestic toy industry comprises around 4,000 MSMEs and is primarily in the unorganised sector.
  • The order is applicable to toys such as rattles, dolls and puzzles, which don’t need batteries and electronic components.
  • BIS has started providing licences to both domestic and foreign manufacturers of toys for use of BIS Standard mark.
  • The top priority for the domestic manufacturers is to meet the Quality Control Order (QCO).

This initiative has come in the wake of study by the Quality Council of India (QCI) revealing that 67% of the imported goods failed the testing survey, which prompted an aggressive push to produce safe toys in the country.

 -Apoorv Aggarwal, Audit Associate, ShineWing India