By CA Dinesh Kumar Agrawal, Ex-IRS

INDIA has prohibited import of ‘Toys’ from China appearing under ITC Codes 9501, 9502, 9503 of Schedule – I of ITC(HS) Classifications of Export and Import Items. The prohibition has come with effect from 23 January 2009 and will remain in force for six months. Prohibition covers following toys from China:

9501 Wheeled toys designed to be ridden by children (for example, tricycles, scooters, pedal cars); dolls’ carriages

9502 Dolls representing only human beings

9503 Other toys; reduced-size (“scale”) models and similar recreational models, working or not; puzzles of all kinds

Although DGFT notification No. 82 /(RE-2008)/2004-2009 dated 23 January 2009 says that “Import of Toy” are prohibited, since the prohibition covers all goods falling under Codes 9501, 9502, 9503, even parts of such toys are covered within the said prohibition.

The apparent reason for import ban on Chinese toys is concern about child safety. It is believed that Chinese toys contain high level of toxicity injurious to the health of a child. High levels of lead in children’s bodies can cause physical illnesses, including diarrhea and nausea, and can also, reportedly, harm children’s intellectual development and their IQ levels. Phthalates -DEHP, DBP and BBP, commonly added to plastic products to make them soft and pliable, found in soft plastic toys may cause serious long-term side effects, such as hormone malfunctioning and reproductive defects. CPC and other hazardous chemicals used in doll dress are believed to be carcinogenic. It is also alleged that Chinese toys have loose small parts which may come off from the toys while playing and may be a health hazard when swallowed by the child.

In recent months, Chinese toys have created a scare worldwide for above reasons and led to recall of many toys. Mattel recalled "Sarge" vehicles, Dora the Explorer products, gangly dolls of Big Bird from Sesame Street and almost a million other toys from its Fisher-Price line and Nickelodeon characters, all manufactured in China. RC2's Thomas & Friends Wooden Railway toy line were recalled. In January 2009, DDI Inc., Iowa, USA recalled Toy Construction Play Sets and Fantas-Eyes Inc., New York, USA recalled High School Musical Manicure Kits all manufactured in China due to lead containment. A comprehensive list of the Chinese toys recalled in recent months in USA can be accessed @ http://www.cpsc.gov/cpscpub/prerel/category/toy.html

It is really very scary to know that our children are playing with life threatening Chinese toys and it appears that Government has really done a commendable job. USA and European countries have taken a lead in recalling the Chinese toys, and India, a latecomer joined the bandwagon by banning the import. Many countries in the world have quality standards for Toys & Children's Products. Most of these seek to limit potential hazards, such as choking or fire hazards that could cause injury. Children, especially very small ones, often put toys into their mouths, so the materials used to make a toy are regulated to prevent poisoning. Materials are also regulated to prevent fire hazards. Children have not yet learned to judge what is safe and what is dangerous, and parents do not always think of all possible situations, so such warnings and regulations are important on toys. Presently, India does not have quality standard for toys. It is reported in media that Government is working out quality standard for toys and within six months we will have our own standard. Till such time, our children are deprived from the pleasure of toys.

I think you know all what I have told as you may also be following the frenzied media reporting about the recall of dodgy Chinese products from superstore shelves in the US, UK and other European countries. All this happened in spite of the fact that they have very tough quality standard. We also know that quality of Chinese toys exported to US and Europe is much higher than what the Indian importers have been importing into India. Therefore, India is rather facing a much more precarious situation at home.

Still I am wondering whether ban on Chinese toys is correct. Are Chinese toys actually lethal or “toxic toys” drama is a poisonous metaphor for contemporary fears of China, of its apparently rapacious economic growth, of adulteration of milk and chocolate products. Lead-based paints are dangerous when the lead is leached and indigested by the children. Lead can’t be inhaled or absorbed through the skin. Lead from the paint can be leached only by continuous sucking on such toys and putting them in the mouth for days at a stretch, or by indigestion of significant amount of scrapings of paints. Children often suck on toys, but not for ‘days at a stretch’.

In the year 1998-99, the George Foundation under "Project Lead Free" screened blood of children in major cities and found that over 51% of the children below the age of 12 living in major urban areas of India had unacceptably elevated levels of blood lead of 10 mcg/dl or more. Blood lead levels in children of around 10 mcg/dl are associated with disturbances in early physical and mental growth and in later intellectual functioning and academic achievement. Lead contamination most often arises from the dust and soil, but can also come from lead water pipes or environmental pollution. Lead concentrations in blood of residents near waste dump, where you can see a large number of children playing, is typically high. However, none of the various studies have ever pointed out lead in paints of toys as a contributing factor for higher lead concentration in children blood.

I am not writing this for toys importers who have been importing cheap toys and making a huge profit. I am also not writing this in mourning of demise of extra income to custom officials on import of Chinese toys. It is general belief that toys consignments are imported at about 30% of their actual value to evade customs duty and VAT. Still I am mourning on the ban of Chinese toys because I love children playing with toys.

Toys have a history as old as human civilization itself. The origin of toys is prehistoric; dolls representing infants, animals and soldiers are readily found at archaeological sites. They have been written about in some of our oldest literature. Toys excavated from the Indus valley civilization (3000-1500 BCE) include small carts, whistles shaped like birds, and toy monkeys which could slide down a string. Toys, like play itself, serve multiple purposes in both humans and animals. They provide entertainment while fulfilling an educational role. Toys enhance cognitive behavior and stimulate creativity. They aid in the development of physical and mental skills which are necessary in later life. Toys for infants often make use of distinctive sounds, bright colors, and unique textures. Through play with toys infants begin to recognize shapes and colors. Repetition reinforces memory.

We grew with toys made from clay and wood. They were simple toys produced by village artisan. Fancy toys were luxury meant for affluent. A lot of water has flown in Ganges since the import of toys was de-regulated. Now, Chinese toys are not only available to urban kids but even invaded remotest and poorest household in India. Chinese toys are complicated with flashing lights and sounds which appeal to children. Cheap Chinese toys create a 'wow' moment for kids that have fun, innovative features and include new technologies and engaging content. I am amazed with a cheap Chinese helicopter which goes 10 feet up in the air and cost just Rs 800/.

Chinese toys are not “Toxic” but “Exotic” for the children. There are more toxic substances out there ruining health of our kids and killing them. A World Bank study of 2000 put the number of yearly deaths in India among children due to dirty water at 2.06 million. The maximum permissible level (MPL) of lead recently proposed by Codex Alimentarius Commission is 0.1 µg/g for cocoa butter (a key ingredient in chocolate) and 1.0 µg/g for cocoa mass and cocoa powder (COPAL 2004b). In a recent study of cocoabased chocolates sold in India, Dahiya found the average lead concentrations to be 1.92 µg/g, which is much higher than MPL. By banning the import of Chinese toys, we are depriving our children from some cheap exotic toys which the kid has become accustomed to. I fail to understand how parents are going to convince the child about harmful effect, or it is going to be “Tabilisation” of childhood.

Some may argue that Government has banned import of toys only from China and imports from other countries are still allowed and therefore our children will not be deprived of the pleasure of toys. Import statistics of toys for past 5 years reveals that about 90% of imported toys were from China. Korea is a distant 2nd source.

Therefore, other countries are unlikely to fill in the vacuum created on banning of Chinese toys. The notification has banned import of toys parts also. Domestic toy manufacturer importing parts from China are also likely to suffer. China has shown the world that mass production can bring the cost of products to ridiculous low level. Even if Indian entrepreneurs tries to fill in the gap, they will never be able to match the price which our remotest and poorest household in India have witnessed in near past.

Surprisingly, notification prohibits import of ‘Toys’ from China. It is estimated that about 75% of toys sold in USA are manufactured in China. It is also known that parts and components manufactured in China are widely used by toys manufacturer around the world. It is a question of interpretation whether Chinese toys imported from USA or other countries will be permitted free import. Toys sold by Mattel, Funskool & Lego will also be affected as either toys or parts are Chinese.

Many quality standards around the worlds are available for toys. International Organization for Standardization (ISO) has certain quality standards, ISO 8124-1:2000 for Safety of Toys, ISO 8124-2:1994 for Flammability, ISO 8124-3:1997 for Migration of Certain Elements. Similarly, ASTM, American and European standards are also available. Till our standards are drafted, Chinese toys may be allowed importation as per ISO or ASTM standard. I Hope that cry of our children will be heard by the policy makers in near future. Till then, I am mourning the demise of Chinese toys from the life of our kids.

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