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Business News/ News / India/  Govt denies extension for enforcement of BIS’s toy certification order
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Govt denies extension for enforcement of BIS’s toy certification order

Absence of such compulsory certification will entail criminal liability under the BIS Act, 2016 including imprisonment and substantial fines
  • The order, effective 1 Sep, requires all toys and materials designed or intended for use in play by children below 14 years of age to be certified by BIS
  • The February order was issued for maintaining quality standards for toys to be used in the Indian market that is estimated to be to the tune of around $38.1 billion as of 2020, according to Statista, (Reuters)Premium
    The February order was issued for maintaining quality standards for toys to be used in the Indian market that is estimated to be to the tune of around $38.1 billion as of 2020, according to Statista, (Reuters)

    NEW DELHI: India’s toy industry has been caught in a bind with the government rejecting additional time sought by manufacturers, importers and retailers for the enforcement of Bureau of Indian Standards’ (BIS) compulsory certification for toys, said three people aware of the development.

    With the Toys (Quality Control) Order coming into effect from 1 September; all toys and materials designed or intended for use in play by children below 14 years of age shall be certified by BIS. The certification is necessary to be eligible to do business in the domestic market dominated by Chinese imports. The absence of such certification entails criminal liability including imprisonment and substantial fines.

    Toy manufacturers majorly comprising micro, small and medium enterprises have been complaining about the delays in securing certification from BIS in the backdrop of the disruption caused by the novel coronavirus disease that originated in Wuhan, China.

    The February order was issued for maintaining quality standards for toys to be used in the Indian market that is estimated to be to the tune of around $38.1 billion as of 2020, according to Statista, a German markets data website. The market dominated by Chinese imports is expected to grow at 9.6% compounded annual growth rate (CAGR) till 2023.

    The denial of extension for the enforcement of the BIS order comes in the backdrop of fresh tensions with China, even as the earlier issues that led to a deadly border clash in Ladakh in mid-June, which left 20 Indian soldiers and an unspecified number of Chinese soldiers dead, remains unresolved.

    Industry associations have said that the process of complying with the order will significantly hamper India’s toy trade.

    “Effectively this is more of a process change. Whenever a process is changed worldwide there is a period given to complete the process because it is a transition. Earlier, it was given to us for six months, but Covid happened. The whole thing—the quality control order process was released on 21 August. Marking fees were given on 29 August, and September 1 everything is closed. If this is what the thing is, then how do we do it," said Rehan Dorajiwala, spokesperson, All India Toys Federation (AITF), a lobby group.

    AITF represents over 59 toy associations across India—including toy manufacturers, wholesalers and importers. The lobby group is apprehensive that toy MSMEs, facing a financial crunch, would not be able to adhere to these standards right away, and a valid BIS license is mandatory to continue to manufacture and import new toys.

    “The Indian toy industry is currently struggling with a large-scale slump in demand and issues stemming from economic uncertainties. The current Covid-19 pandemic caused a shortage in the supply of toys to the Indian market. We also hope that the government gives us some more time to gain a certification from the Bureau of Indian Standards," said Abdullah Sharif, vice president, AITF in a 1 September statement.

    Queries emailed to BIS officials and spokesperson for the ministry of consumer affairs, food and public distribution on Monday remained unanswered.

    “It’s intriguing that the ministry of commerce has not extended the timeline for compliance to exclude the time lost in the pandemic, considering that it initially gave six months' time to the industry to secure the BIS license thereby recognising that this much time will be needed," said Abhixit Singh, partner at ASP Advocates, a New Delhi based law firm.

    “This has now led to a situation where from petty manufacturers and sellers to directors of corporate houses all will be exposed to criminal prosecution, which can be triggered not only by the enforcement officers but also by a consumer," Singh added.

    BIS, that works under the ministry of consumer affairs, food and public distribution, has been turning the screws on certification of Chinese products. A case in point being delays in certification and testing approvals for imported solar equipment from China, Mint reported earlier.

    India has also restricted the import of tyres and other auto components from China, and barred hundreds of Chinese apps, including Bluehole’s PUBG, Bytedance’s TikTok, and Alibaba’s UC Browser, citing national security concerns.

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    Utpal Bhaskar
    "Utpal Bhaskar leads Mint's policy and economy coverage. He is part of Mint’s launch team, which he joined as a staff writer in 2006. Widely cited by authors and think-tanks, he has reported extensively on the intersection of India’s policy, polity and corporate space.
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    Published: 08 Sep 2020, 10:57 AM IST
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