Plastic Toys are one of the most widely used toys comprising of 19 per cent of the toys market. According to global market research on toys, the market is expected to grow beyond 135 billion dollars due to increasing demand for innovative toys with advanced technology. Indian Toys Industry is estimated to be $1.5 bn making up 0.5% of the global market share. This blog will explain the guidelines related to the Import of Plastic Toys.
With this increase in the demand for toys, the Import of Plastic Toys, which constitute around 90 per cent of the toys industry, is also projected to increase.
|S.No.||Countries Importing Plastic Toys||Value (in Million US Dollars)|
Import of Plastic Toys
According to the latest notification of the Government of India relating to the Import of Plastic Toys, the importer has to fulfil certain conditions, including: –
- According to the Directorate General of Foreign Trade notification, the testing of the sample product of each trading shipment and there will be no permission granted for sale without the quality testing is successful in order to regulate the import of sub-standard and cheap toys.
- The Importer also has to give anti-dumping duty, which is implemented for regulating and managing the negative effect of dumping and establishing fair trade.
- In order to Import of Plastic Toys and plastic articles, the importer must obtain a test report from an accredited laboratory authorised or governed by importing country is required. A necessary sample of imported Plastic Toys is drawn as per the procedures and rules of importing country and submitted to the authorised laboratory and obtained as an Environmental analysis report. Generally, three sets of product samples of importing Plastic and plastic articles are drawn and forwarded to the laboratory notified by the environment and forest department. Test report retains for a minimum of two years to confirm obligation fulfilment by the importer on importation of Plastic and plastic articles. Such certificate is submitted with the customs location of importing country to process the importation of Plastic and plastic articles. If non-fulfilment of obligation by the importation of Plastic and plastic product, the importer of plastic toys should export back the hazardous waste within 90 days from the date of arrival into importing country according to hazardous waste management, handling and trans boundary rules.
Process of Import of Plastic Toys
According to the mutual contract between buyer and seller, the import shipment is taken place. Pricing, quality specifications, terms of payment, terms of delivery, mode of transport and other terms and conditions are agreed upon and mentioned in the purchase order, and import shipment of Toys, Games, Sports Equipment, Parts and Accessories is impacted accordingly.
As per the general knowledge, for Import of Plastic Toys, required import certification/documentation and customs clearance process at importing country have to be completed by either importer’s customs broker or the importer directly as per the foreign trade policy of the respective importing country. For Import of Plastic Toys, Games and Sports Equip, Parts and Accessories also, import entry certificate/documents with the required carrier’s authorisations like Bill of Lading or Airway bill, commercial invoice, certificate of origin, list and any other required/mandated documents are filed, and required import procedures are done to take delivery of imported goods under Toys, Games and Sports Equip, Parts and Accessories.
Environmental Compliances for Import of Plastic Toys
Along with acquiring the general licenses and authorisation, Plastic toy manufacturers also have to file for Environmental compliances that are governed by the Ministry of Environment, Forest and Climate Change.
EPR Authorisation needed for Import of Plastic Toys
EPR Authorisation for Import of Plastic Toys is governed under Plastic Waste Management Rules, 2016. Importers have to file the Authorisation under Form I from the official online portal of the Pollution Control Committee or The State Pollution Control Board, which is once again submitted with the stipulated documents. after the authorisation application is submitted, it is inspected and scrutinised by authorities, following which the Manufacturer is provided with the authorisation.
Documents required for acquiring EPR Authorisation
- EPR plan;
- Economic plan for EPR;
- Self-declaration under RoHS;
- Copy of authorisation issued by Pollution Control Committee of the Union Territory/State Pollution Control Board before in case of those importers who are working in the country before 01-10-2016;
- Information on future awareness programmes and associated initiatives;
- Copy of the approval from the applicable state authority for marketing various products or for doing the business as given below:
- TIN details;
- PAN details;
- Incorporation certificate;
- Copy IEC;
- Copies of agreement document with major Stakeholders like collection centres, dealers, Manufacturers, dismantlers, storage, treatment and disposal facilities (TSDFs) etc.
- Consent to Establish (CTE) acquired before the establishment of Industry under the Air and Water (Prevention and Control of Pollution) Act
- Consent to Operate (CTO) acquired after the establishment of Industry under the Air and Water (Prevention and Control of Pollution) Act
The procedure of both the consent certificate is mandated under the Air and Water Act, which follows the similar steps of applying through the online portal of the Pollution Control Committee/The State Pollution Control Board with documents required by the Central Pollution Control Board, which are followed by a review of an application by an authority. After that, an inspection takes place by the authorised personnel who make the report according to the inspection, and at last, the certificate is granted.
Documents required for consent certificate
- SSI Certificate;
- Industry Department Certificate;
- The layout plan/Site plan;
- Details on channelisation;
- Total open land
- Total constructed area
- The project report
- Water usage breakdown
- DG Specifications
- Raw material list with daily MTD/monthly quantity
- Effluent / Sewage Treatment Plant Flow Diagram
- Boiler type, fuel used, and quantity
- Specifics on air pollution controls
- Product/by-product list with daily MTD/monthly quantity
- Permission from the state’s groundwater authority.
- Factory/Trade License
- Authorisation Letter
- Pan Card
- The Aadhar Card
- Municipality or Industry license
- Registration Proof of unit
- Site Plan
- Water Bill
General Business Setup Licenses
Before acquiring and obtaining environmental authorisation, the Importer of the Plastic Toy industry has to procure general business licenses and authorisation from the concerned State/Central authorities. Some of these licenses are: –
Documents required for establishing the company
- PAN Card;
- Address Proof such as
- Election Card or Voter Identity Card;
- Ration Card;
- Driving License;
- Electricity Bill;
- Telephone Bill;
- Aadhaar Card;
- Residential, Proof such as
- Bank Statement
- Electricity Bill
- Telephone Bill
- Mobile Bill
- GST Registration Certificate;
- MOA (Memorandum of Association);
- AOA (Article of Association);
Udyog Aadhaar MSME Registration
For obtaining MSME (Micro, Small and Medium Enterprise) authorisation, one has to register through the official online portal of the concerned authority and upload the authorised documents.
Documents needed for MSME registration
- ApplicantOfficial Name
- Name and type of enterprise
- Aadhar Card
- PAN Number
- The NIC Code
- Account Details
- The social category of the applicant
- The business operations of the enterprise
- Date of Incorporation of a business
- Details related to employment
BIS Certificate/Authorisation is required to make sure that the merchandise does not harmfully affect public health. As per the BIS (Bureau of Indian Standards), the manufacturer/Importer has to complete the application/authorisation form along with the authorised documents and send the test reports of the samples that are verified at the BIS (Bureau of Indian Standards) documented lab, the report of which will be examined and reviewed by the government authorised personnel. Once the report is studied, the BIS certificate is granted.
Documents required for BIS Certificate needed by Plastic Toy Manufacturer
- The record of resources/raw materials that are being utilised during the production process
- A detailed layout/site plan
- Description of the industrial procedure
- Information on the types of machinery being operated
- layout plan of the Manufacturing Plant
- The Test Reports of the Plastic toy sample sent by the Importer of the Plastic Toy that is to be authorised strictly by a BIS Recognised Laboratory
- Photographs/Pictures of the plastic toy
- An Undertaking duly signed by the applicant
- Identification Proof like Permanent Account Number Card or Aadhar Card
- Registration for Factories Documents
- The authorisation form which is correctly filled and signed by the official personnel
Document required for GST Certificate
- PAN Card
- the Ministry of Corporate Affairs authorised Incorporation Certificate
- MOA (Memorandum of Association)
- AOA (Article of Association)
- Aadhar Card of the applicant
- Address proof
- Bank Details
Trade license for Import of Plastic Toys
A trade license is approved by Municipal Corporation, which is determined by the rules and regulations set by the state authorities /government. The mandated documents required for Trade licenses are submitted along with the application.
Documents required for trade license
- Address proof (can be either Electricity bill or water bill)
- Aadhaar card
- MOA (Memorandum of Association)
- CIN (Certification of incorporating) in case of Companies
- Recent municipal property tax receipt in case the premises are owned, else lease document or consent letter of the owner of the property where the business/manufacturing plant is an authorisation.
- No Objection Certificate of the people living in the neighbourhood (nearby property owners)
- Layout plan/Site plan
The Import of Plastic Toys, despite being a very lucrative business with a positive market overview, does hurt the environment and human health due to its presence of plastic. It also poses a choking hazard to the children who are most demographic of these industries. Therefore, for any critical and acquiring consent certificates, they also obtain a BIS license to avoid challenges in the future.
Read our Article:How to set up Plastic Waste Recycling Business?