Ban on Chinese toys made fool-proof, action compliant with WTO rules

NEW DELHI: Ignoring a threat of being dragged to WTO on ban on import of Chinese toys, India on Friday plugged loopholes in the rules that could have allowed manufacturers in China to dispatch toys into a vast Indian market.

The Commerce Ministry has alerted the customs authorities to ensure that Chinese toys do not enter the Indian ports through a third country route.

"Prohibition shall be applicable on all such toys which have originated from China, irrespective of the country of import. 'Originated' shall mean 'manufactured' in China," the Directorate General of Foreign Trade said in a directive to all commissioners of customs and the licensing authorities.

Commerce and Industry Minister Kamal Nath said the ban on Chinese toys was on ground of public health and safety and the action was compliant with the rules of the World Trade Organisation. "India is a responsible country and before we take any action we make sure that it should be WTO compatible," Nath told reporters here.

However, the minister said banning imports of toys would not sour India's commercial ties with China because "this (ban) is a matter of public ... rather than commercial concern".

After India slapped ban on import of toys from China on January 23, Chinese official media reported that Beijing was contemplating a WTO action against New Delhi.