Govt notification on imported toys to have ramifications on retailers: RAI

Key highlights:

• RAI said that it has contention with the notification by the government on the new standards for toys
• The government had issued a notification on September 1 which specifies that all imported toys to be tested locally
• Ramifications for a huge section of retailers, most of whole are small retailers

The Retailers Association of India (RAI) said that it has contention with the notification by the government on the new standards for toys. RAI, CEO, Kuman Rajagopalan said that the notification has ramifications for a huge section of retailers, most of whole are small retailers has been issued with no consultation with stakeholders.

The government had issued a notification on September 1 which specifies that all imported toys to be tested locally and should comply with the standards prescribed by the Bureau of Indian Standards (BIS) only.

Rajagopalan said, “We understand that this move is intended to ensure quality and safety of toys with respect to Indian standards. However, our main contention is that such a notification that has ramifications for a huge section of retailers, most of whom are small retailers has been issued with no consultation with stakeholders. Furthermore, it comes out of the blue, with no forewarning and gives no time for retailers to prepare for compliance.”

As a result, he said it will have grave consequences such as losses in terms of huge amounts of money paid as advance by retailers to suppliers overseas, loss of jobs as some businesses that sell only toys will have to shut shop.

“All this at a time which is peak business season for retail as toys are one of the most common gift items. Compounding the problem is the fact that India simply does not have the infrastructure for such a kind of testing and building it will take time. We hope that the government looks into the matter and considers our recommendations bringing relief to scores of small retailers who will be affected by the said notification,” he added.

RAI further made some recommendations to the government such as offering adequate transition period for implementation of notification.

“It is therefore absolutely imperative to ensure adequate transition period of 12 to 18 months as is the norm in many other large markets for the 'Transition Period' such that business is not disrupted and there are sufficiently adequate number of independent labs (particularly in the Asia Pacific region including India) which are accredited to NABL with capability to test all the Parts of IS 9873, particularly Part 9 and IS 15644 to ensure speedy testing,” RAI suggested.

It also said that there should be a consultation meeting with stake holders from the industry to put forth recommendations.