On October 1st 2024, the Ministry of Commerce and Industry issued an important amendment to the Toys (Quality Control) Order, 2020. This amendment, known as the Toys (Quality Control) Amendment Order, 2024, brings significant changes aimed at promoting research and development in the toy manufacturing sector.
Background of the Toys (Quality Control) Order
The Toys (Quality Control) Order, 2020 was implemented to ensure that toys sold in India meet specific quality standards set by the Bureau of Indian Standards (BIS). This order is a crucial step in safeguarding children’s health and safety, considering the rising concerns regarding the quality of imported and domestically manufactured toys.
Key Features of the Amendment
1. Scope of the Amendment
The most notable feature of the Toys (Quality Control) Amendment Order, 2024 is the introduction of a new provision in paragraph 3 of the original order. This provision allows manufacturers certified by the Bureau of Indian Standards (or those who have applied for certification) to import a limited quantity of toys and related components for research and development purposes.
2. Import Allowance
Under the new amendment, each manufacturer is permitted to import up to 300 items per financial year, with a maximum of 5 items of each type of sample. This allowance is specifically designated for R&D activities, enabling manufacturers to explore new designs, materials, and technologies without the immediate pressure of commercial sales.
3. Conditions for Import
While this amendment opens new avenues for manufacturers, it comes with specific conditions:
- The imported goods must not be sold commercially.
- They must be disposed of as scrap after the research is completed.
- Manufacturers are required to maintain detailed records of all imported goods and submit this information annually to the Central Government.
- A formal declaration confirming compliance with these conditions must be provided to the Department for Promotion of Industry & Internal Trade (DPIIT).
Implications for the Industry
Promoting Innovation
This amendment is a clear indication that the government is keen to foster innovation within the toy industry. By allowing manufacturers to engage in R&D without the constraints of immediate commercial viability, it encourages experimentation and the development of safer, more creative products.
Compliance and Accountability
The requirement for record-keeping and declarations adds a layer of accountability. Manufacturers must ensure compliance with these regulations to avoid penalties, which will likely lead to better governance in the industry.
Economic Impact
Allowing R&D imports could stimulate economic growth by enabling manufacturers to create higher-quality products that could compete both domestically and internationally. This potentially leads to increased exports and a stronger position in the global toy market.
