Chinese Toys Final)

8/8/2019 Chinese Toys Final)

1/35

Chinese toysChinese toys

Compiled and presented by:Compiled and presented by:Manoj Gupta(09020241016)Manoj Gupta(09020241016)

AliAli RizviRizvi(09020241113)(09020241113)MihirMihir DeshpandeDeshpande(09020241124)(09020241124)

BiswajitBiswajit Nag(09020241117)Nag(09020241117)


2/35

In storeIn store

IntroductionIntroduction Chinese toysChinese toys Effects of chinese toys on childrenEffects of chinese toys on children

Indias stand on use of Chinese toysIndias stand on use of Chinese toys Ban on chinese toysBan on chinese toys Impact of Ban on ChinaImpact of Ban on China Chinas Presentation of issue in WTOChinas Presentation of issue in WTO

Principle of the issuePrinciple of the issue Indias response to issueIndias response to issue After effectsAfter effects


3/35

Lets startLets start

Toys market in India is estimated at about $2.50Toys market in India is estimated at about $2.50--billionbillion

VolumeVolume--driven, pricedriven, price--competitive Chinese toys controlcompetitive Chinese toys controlroughly about 70 per cent of the global toy market.roughly about 70 per cent of the global toy market.

In India, organised sector makes up to $1 billion of theIn India, organised sector makes up to $1 billion of thetotal $2.50total $2.50--billion Indian toy industry.billion Indian toy industry.


4/35


5/35

Chinese toysChinese toys TruthTruth

uncovereduncovered Chemical risk from chinese toysChemical risk from chinese toys

Components of plasticComponents of plastic

Paints and glues used in productionPaints and glues used in production

Heavy metals in alloysHeavy metals in alloys

Various other constituents of itemsVarious other constituents of items


6/35


uncovereduncovered CHEMICAL RISKS FROM TOYSCHEMICAL RISKS FROM TOYS

PhthalatesPhthalates

Toy name:Toy name: Animal farm setAnimal farm set

Contains:Contains:High lead contentHigh lead content

CyclohexanoneCyclohexanone

Dibutylphthalate (classified asDibutylphthalate (classified asreprotoxicreprotoxic substance)substance)


7/35


uncovereduncovered CHEMICAL RISKS FROM TOYSCHEMICAL RISKS FROM TOYS

PhthalatesPhthalates

Squeeze animal toys Safety ToysSqueeze animal toys Safety Toys

Excessive content ofExcessive content of

phthalatesphthalates

Ref.:http://europa.eu.int/comm/dgs/health_consumer/dyna/rapex/create_rapex.cfm?rx_id=7


8/35


uncovereduncovered Toy:Toy: "Funny Bubble Putty"Funny Bubble Putty

Contains:Contains: Boric acidBoric acid

Risk:Risk: Boric acid content poses a risk if theBoric acid content poses a risk if theputty is placed in the mouth or swallowed.putty is placed in the mouth or swallowed.


9/35


uncovereduncovered Toy:Toy: Plush teddy BearPlush teddy Bear

Contains:Contains: Coloured plushColoured plush

and artificial leatherand artificial leather

Red bow was found to containRed bow was found to contain

3.3'3.3'-- Dimethylbenzidine(CarcinogenicDimethylbenzidine(Carcinogenicchemical)chemical)


10/35

Lead in Toys(US) fromLead in Toys(US) from

China 2007China 2007 Toy Industry:Toy Industry:

Hasbro $161.6 million in profits, $1.14 billion inHasbro $161.6 million in profits, $1.14 billion inrevenue 2006revenue 2006

Mattel produces 800million toys yearlyMattel produces 800million toys yearly

80% of the worlds toys made in China80% of the worlds toys made in China

Lead makes paint brighter and more durableLead makes paint brighter and more durable


11/35


China 2007China 2007 Federal Hazardous Substances Act (FHSA)Federal Hazardous Substances Act (FHSA)

Hazardous Substance:Hazardous Substance: AnyAny

substancewhich is toxicif such substancesubstancewhich is toxicif such substancemay cause substantial personal injury ormay cause substantial personal injury or

substantial illness during or as a result ofsubstantial illness during or as a result of

customary or reasonably foreseeable handling orcustomary or reasonably foreseeable handling or

use, including ingestion by children.use, including ingestion by children.

Banned Hazardous Substance:Banned Hazardous Substance: Any toy, orAny toy, or

other article intended for use by children, whichother article intended for use by children, which

is a hazardous substanceor contains ais a hazardous substanceor contains a

hazardous substance in such a manner as to behazardous substance in such a manner as to be

susceptible of access by a childsusceptible of access by a child


12/35

It has been all about price, and it is that very desire for lower pricesIt has been all about price, and it is that very desire for lower prices

that creates the problem ~ Charlesthat creates the problem ~ Charles HinnantHinnant, president,, president, CharkitCharkit

ChemicalChemical

Large toy companies dependent on cheap Chinese production forLarge toy companies dependent on cheap Chinese production for

most of their waresmost of their wares

Limited regulatory environment in China, Quality control aLimited regulatory environment in China, Quality control a

significant issue, Chinese feel bullied by foreign companies to cutsignificant issue, Chinese feel bullied by foreign companies to cut

costs, thus squeezing their own supplierscosts, thus squeezing their own suppliers


China 2007China 2007


13/35

BargainingBargaining you get what you pay for, price negotiation mayyou get what you pay for, price negotiation may

implicitly negotiate qualityimplicitly negotiate quality

Some companies had products more affected than others,Some companies had products more affected than others,

depending on how stringent company testing and inspectiondepending on how stringent company testing and inspection

policies werepolicies were


China 2007China 2007


14/35

Can I taste itCan I taste it Are youAre you

KidKid--ding?ding?

Risks ofchildrens behaviour:Risks ofchildrens behaviour:

Exploring theirenvironment:Exploring theirenvironment: InterestingInterestingtaste! maybe it is a candy?taste! maybe it is a candy?

Imitate adults practices: Play adults usingImitate adults practices: Play adults usingadults stuffadults stuff

Get confused easilyGet confused easily Closer contact to materials: Bedtime toysCloser contact to materials: Bedtime toys

Do not perceive dangerDo not perceive danger


15/35

Can I taste itCan I taste it Are youAre you

KidKid--ding?ding? Possible effects:Possible effects: Skin irritationSkin irritation

Skin sensitizationSkin sensitization CarcinogenicityCarcinogenicity

Estrogenic effectsEstrogenic effects

Metal charmsMetal charms Some may contain leadSome may contain lead

Some may contain nickelSome may contain nickel

Some may contain other substancesSome may contain other substancesRef.: U.S.Consumer Product Safety Commission, http://www.cpsc.gov


16/35

History of Childhood LeadHistory of Childhood Lead

PoisoningPoisoning 19041904 Australian physician, Dr. Lockhard Gibson, links leadAustralian physician, Dr. Lockhard Gibson, links lead

based paint to childhood lead poisoning. He urges use of leadbased paint to childhood lead poisoning. He urges use of leadpaint within the reach of children should be prohibited by lawpaint within the reach of children should be prohibited by law

19141914 In Baltimore, Henry Thomas & KennethIn Baltimore, Henry Thomas & Kenneth BlackfanBlackfandetail the case of a boy who died of lead poisoning after eatingdetail the case of a boy who died of lead poisoning after eatingwhite lead paint from his crib railingwhite lead paint from his crib railing

1920s, 1930s1920s, 1930s several countries, including Belgium, Cuba,several countries, including Belgium, Cuba,Great Britain, Greece, Poland, Spain, Sweden, Tunisia,Great Britain, Greece, Poland, Spain, Sweden, Tunisia,Yugoslavia ban/restrict lead paint useYugoslavia ban/restrict lead paint use

19301930 Noted in the US that lead poisoning resulting fromNoted in the US that lead poisoning resulting from

paint on toys, cradles and woodwork is increasing in childrenpaint on toys, cradles and woodwork is increasing in children


17/35

History of Childhood LeadHistory of Childhood Lead

PoisoningPoisoning 1930s1930s Lead industry publicly targets advertising to children,Lead industry publicly targets advertising to children,

advocates for interior lead paint while internallyadvocates for interior lead paint while internallyacknowledging the danger lead paint poses to these childrenacknowledging the danger lead paint poses to these children

19351935 researchers recommend prohibiting the use of leadresearchers recommend prohibiting the use of lead--containing paints fortoys, childrens furniture and for interiorcontaining paints fortoys, childrens furniture and for interiorworkwork

19521952 lead paint industry blames victims, says problemlead paint industry blames victims, says problemrooted in slums and uneducable parentsrooted in slums and uneducable parents

19701970 federal legislation prohibits use of lead paint, thefederal legislation prohibits use of lead paint, thefollowing year NYC tests paints and finds them to have highfollowing year NYC tests paints and finds them to have high

lead levelslead levels


18/35

LeadLead((PbPb)) Effects in ChildrenEffects in Children

Clinical evaluations indicate that the victim of leadClinical evaluations indicate that the victim of lead

poisoning ispoisoning is brain damagedbrain damaged rather than simply arather than simply a

less intelligent child*less intelligent child* Neuropsychological impairments decrease academicNeuropsychological impairments decrease academic

potential and impair activities of daily livingpotential and impair activities of daily living

Different deficit patterns in different childrenDifferent deficit patterns in different children

** LidskyLidsky & Schneider, 2005& Schneider, 2005


19/35

LeadLead((PbPb)) Effects in ChildrenEffects in Children

Clinical evaluations indicate that the victim of leadClinical evaluations indicate that the victim of lead

poisoning ispoisoning is brain damagedbrain damaged rather than simply arather than simply a

less intelligent child*less intelligent child* Neuropsychological impairments decrease academicNeuropsychological impairments decrease academic

potential and impair activities of daily livingpotential and impair activities of daily living

Different deficit patterns in different childrenDifferent deficit patterns in different children

** LidskyLidsky & Schneider, 2005& Schneider, 2005


20/35

Indian concern over toxicIndian concern over toxic

toystoys In 2006In 2006--07, a report by Delhi based NGO07, a report by Delhi based NGO Toxics Link,Toxics Link,

highlighted the presence of toxic material in a range of toyshighlighted the presence of toxic material in a range of toyspriced below Rs. 150 found across the country.priced below Rs. 150 found across the country.

Consumer Welfare association of Mumbai filed the PIL afterConsumer Welfare association of Mumbai filed the PIL afterthis report.this report.

Provocation steered towards Govt. due to its failure to checkProvocation steered towards Govt. due to its failure to checkimport of harmful toys.import of harmful toys.


21/35

Ban on Chinese toysBan on Chinese toys

On 23 January, 2009On 23 January, 2009 Indias DepartmentIndias Departmentof Commerce of Ministry and Industryof Commerce of Ministry and Industry

issued Notification imposing a generalissued Notification imposing a generalban only on Chinese toys for at least sixban only on Chinese toys for at least sixmonths without specifying reasons for themonths without specifying reasons for therestriction.restriction.

On 2On 2ndnd March, 2009 another notification,March, 2009 another notification,imposing conditional prohibition of importimposing conditional prohibition of import

ofof chinesechinese toys.toys. See Notifications


22/35


23/35

Chinas PresentationChinas PresentationofIssue in WTOofIssue in WTO


24/35

BACKGROUNDBACKGROUND

Indias Department of Commerce of Ministry ofIndias Department of Commerce of Ministry ofCommerce and Industry issuedCommerce and Industry issued Notification No.Notification No.82 on 23 January 200982 on 23 January 2009, which declares that:, which declares that:

Import of Toys from ChinaImport of Toys from China appearing under ITCappearing under ITCCodes 9501, 9502, 9503 of ScheduleCodes 9501, 9502, 9503 of Schedule--I of ITC (HS)I of ITC (HS)Classification of Export and Import Items isClassification of Export and Import Items is

prohibited for six monthsprohibited for six months with immediate effect andwith immediate effect and

until further orders.until further orders.

This Notification imposes a general ban only onThis Notification imposes a general ban only onChinese toys for at least six months withoutChinese toys for at least six months withoutspecifying reasons for the restriction.specifying reasons for the restriction.


25/35

BACKGROUNDBACKGROUND

After aAfter a 3838--day implementation, a new notification(on 2day implementation, a new notification(on 2ndnd marchmarch2009), namely Notification No. 912009), namely Notification No. 91, was issued by the Department of, was issued by the Department ofCommerce ofIndias Ministry of Commerce and Industry on 2Commerce ofIndias Ministry of Commerce and Industry on 2March, which states:March, which states:

Import of Toys from China appearing under ITC Codes 9501, 9502,Import of Toys from China appearing under ITC Codes 9501, 9502,9503 of Schedule9503 of Schedule--I of ITC (HS) Classifications of Export and ImportI of ITC (HS) Classifications of Export and ImportItems is prohibited for six months with immediate effect and until furtherItems is prohibited for six months with immediate effect and until furtherorders.orders. However, import of toys from China accompanied by theHowever, import of toys from China accompanied by thefollowing certificationsfollowing certifications shall be permitted:shall be permitted:

((ii)) A certification that the toys being imported conform to theA certification that the toys being imported conform to thestandards prescribed in ASTM F963 or standards prescribed in ISOstandards prescribed in ASTM F963 or standards prescribed in ISO8124 (Parts I8124 (Parts I--III) or IS 9873 [Parts IIII) or IS 9873 [Parts I--III];III];

(ii)(ii) A certification of Conformance from the manufacturer thatA certification of Conformance from the manufacturer thatrepresentative sample of the toys being imported have been tested byrepresentative sample of the toys being imported have been tested byan independent laboratory which is ILAC accredited and found to meetan independent laboratory which is ILAC accredited and found to meetthe specifications indicated above. The certificate would also link thethe specifications indicated above. The certificate would also link the

toys in the consignment to the period of manufacture indicated in thetoys in the consignment to the period of manufacture indicated in theCertificate of ConformityCertificate of Conformity..


26/35

INCONSISTENT WITH WTOINCONSISTENT WITH WTO

OBLIGATIONSOBLIGATIONS

China notes thatChina notes that Notification No. 82Notification No. 82applies only to Chinese toys while notapplies only to Chinese toys while not

applicable to toys ofIndian origin orapplicable to toys ofIndian origin orthose originating from other WTOthose originating from other WTOMembersMembers..

Notification No.Notification No. 82 constitutes a general82 constitutes a generalban and a discriminatory measureban and a discriminatory measure

against Chinese toysagainst Chinese toys


27/35


OBLIGATIONSOBLIGATIONS PRINCIPLEPRINCIPLE

OF ISSUEOF ISSUE Breach of fundamental principlesBreach of fundamental principles

embodied in the multilateral tradingembodied in the multilateral trading

agreementsagreements General elimination ofquantitativeGeneral elimination ofquantitative

restrictions under Article 11 of GATT 1994,restrictions under Article 11 of GATT 1994,

TheThe most favored nation treatmentmost favored nation treatment andandNational treatmentNational treatment principles in Articles 1principles in Articles 1and 3 of GATT 1994 respectivelyand 3 of GATT 1994 respectively

Articles 2.1 and 5.1 of the TBT Agreement.Articles 2.1 and 5.1 of the TBT Agreement.


28/35



India issued Notification No. 91 on 2 March 2009 to replaceIndia issued Notification No. 91 on 2 March 2009 to replaceNotification No.Notification No. 82 but the discriminative nature of the82 but the discriminative nature of therestriction remains unchanged.restriction remains unchanged.

Notification No. 91 requires Chinese toys to conform toNotification No. 91 requires Chinese toys to conform tothe related standards while toys manufactured in India arethe related standards while toys manufactured in India arenot subject to the same requirement.not subject to the same requirement.Therefore, theTherefore, theNotification discriminates against toys from China and isNotification discriminates against toys from China and isinconsistent with Indias obligations ofnational treatmentinconsistent with Indias obligations ofnational treatmentunder Article 3 ofGATT 1994 and Article 2.1 ofthe TBTunder Article 3 ofGATT 1994 and Article 2.1 ofthe TBTAgreement.Agreement.

China notes that theChina notes that the conformance requirement is notconformance requirement is notimposed by India on toys originating from other WTOimposed by India on toys originating from other WTOMembers.Members.Therefore, it violates the MFN principle providedTherefore, it violates the MFN principle providedunder Article I ofthe GATT 1994 and Article 2.1 ofthe TBTunder Article I ofthe GATT 1994 and Article 2.1 ofthe TBTAgreementAgreement..


29/35



Notification No. 91 imposes a ban on Chinese toys without relatedNotification No. 91 imposes a ban on Chinese toys without relatedcertificates while toys from India and other origins, regardless ofcertificates while toys from India and other origins, regardless oftheir conformance to the standards provided, are exempted fromtheir conformance to the standards provided, are exempted from

the discriminatory ban.the discriminatory ban.

Therefore, China believes that Notification No. 91 accordsTherefore, China believes that Notification No. 91 accordsunfavourable treatment to Chinese toys specifically andunfavourable treatment to Chinese toys specifically andobviously violates WTO fundamental principles ofnationalobviously violates WTO fundamental principles ofnationaltreatment, MFN and general elimination ofquantitativetreatment, MFN and general elimination ofquantitativerestrictions provided under Articles I, III and XI ofthe GATTrestrictions provided under Articles I, III and XI ofthe GATTand Articles 2.1 and 5.1 ofthe TBT Agreementand Articles 2.1 and 5.1 ofthe TBT Agreement..

China notes that India didnt notify its Notification No. 82, andChina notes that India didnt notify its Notification No. 82, andhas not notified Notification No. 91 to the WTOhas not notified Notification No. 91 to the WTO.China would.China wouldlike to remind India ofits transparency obligations underlike to remind India ofits transparency obligations underArticles 2.9, 2.10, 5.6 and 5.7 ofthe TBT Agreement.Articles 2.9, 2.10, 5.6 and 5.7 ofthe TBT Agreement.


30/35

Indias Response toIndias Response to

issueissueNOTIFICATIONNO.113/(RENOTIFICATIONNO.113/(RE--2008)/2008)/

20042004--20092009NEW DELHI, DATED 16TH JUNE, 2009NEW DELHI, DATED 16TH JUNE, 2009


31/35

NOTIFICATIONNO.113NOTIFICATIONNO.113

"Import of Toys appearing under ITCCodes 9501, 9502,"Import of Toys appearing under ITCCodes 9501, 9502,9503 ofSchedule9503 ofSchedule--1 of ITC(HS)Classifications ofExport1 of ITC(HS)Classifications ofExportand Import items is prohibitedand Import items is prohibited uptoupto 23rd January,201023rd January,2010and until further orders.and until further orders. However, import of toysHowever, import of toysaccompanied by the following certificates shall be permitted:accompanied by the following certificates shall be permitted:

A certificate that the toys being imported conform to theA certificate that the toys being imported conform to thestandards prescribed in ASTM F963 or standards prescribed instandards prescribed in ASTM F963 or standards prescribed inISO 8124 (Parts IISO 8124 (Parts I--III) orIS 9873 [Parts IIII) orIS 9873 [Parts I--III] or standardsIII] or standardsprescribed in EN 71;prescribed in EN 71;

A certificate of Conformance from the manufacturer thatA certificate of Conformance from the manufacturer thatrepresentative sample of the toys being imported have beenrepresentative sample of the toys being imported have beentested by an independent laboratory which is accredited undertested by an independent laboratory which is accredited underILAC, MRA and found to meet the specifications indicatedILAC, MRA and found to meet the specifications indicatedabove. The certificate would also link the toys in theabove. The certificate would also link the toys in theconsignment to the period of manufacture indicated in theconsignment to the period of manufacture indicated in theCertificate of Conformity."Certificate of Conformity."


32/35

AfterEffectsAfterEffects

Change in FTP (2009Change in FTP (2009--2014) by2014) by

MINISTRY OF COMMERCE ANDMINISTRY OF COMMERCE ANDINDUSTRYINDUSTRY


33/35

NOTIFICATION NO. 27/2009NOTIFICATION NO. 27/2009--

20142014 NEW DELHI,27NEW DELHI,27ththJanuaryJanuary

20102010 In exercise of powers conferred underIn exercise of powers conferred under

section 5 of the Foreign Tradesection 5 of the Foreign Trade(Development and Regulation) Act, 1992(Development and Regulation) Act, 1992

read with paragraph 2.1 of the Foreignread with paragraph 2.1 of the ForeignTrade Policy, 2009Trade Policy, 2009--14, the Central14, the CentralGovernment hereby makes the followingGovernment hereby makes the followingamendments in the Schedule 1 (Imports) ofamendments in the Schedule 1 (Imports) of

the ITC (HS) Classifications of Export andthe ITC (HS) Classifications of Export andImport Items,Import Items, in supersession of notificationin supersession of notificationNo. 113/(RENo. 113/(RE--2008)/20042008)/2004--09 dated 1609 dated 16thth

June, 2009June, 2009


34/35

For more informationFor more information

www.dgftcom.nic.inwww.dgftcom.nic.in

www.wto.orgwww.wto.org

W304.docW304.doc

http://www.wto.org/english/news_e/news09_e/tbt_16mar09_http://www.wto.org/english/news_e/news09_e/tbt_16mar09_e.htme.htm

CHEST training package for health sectorCHEST training package for health sector

LidskyLidsky & Schneider, 2005& Schneider, 2005

http://europa.eu.int/comm/dgs/health_consumer/dyna/rapex/http://europa.eu.int/comm/dgs/health_consumer/dyna/rapex/create_rapex.cfm?rx_id=7create_rapex.cfm?rx_id=7


35/35

Thank youThank you

Documents

Chinese Toys Final)