Supply Chain News Bites - Only from SCDigest
 

-June 19, 2007

 
 

Global Supply Chain: Will Safety Issues with Toys Made in China Cause Regulatory Backlash?

 
 

Thomas the Tank Engine in Lead Paint, amid Rising Calls for Action

 
 

SCDigest Editorial Staff

 
 

On top of recent issues raised concerning the safety of food items imported from China, a growing number of critics are pointing to safety problems with toys made there, calling for tougher regulations and monitoring by both the US and Chinese governments. This comes after last week’s announced recall of 1.5 million units of the popular Thomas and Friends toy railroad system, after it was discovered that lead-based paint was used on many of the parts.

Critics note that each of the 24 toys recalled in the US thus far this year was made in China, and call for stronger regulation and inspection of Chinese made goods. However, it’s also worth noting that toys have traditionally been among the most actively recalled products, often due to safety issues that don’t emerge until the products hit the market, and it’s no surprise all the recalled toys have been made in China – it currently manufactures as much as 80% of all toys sold in the US.

Still, of the record 467 recalls ordered by the federal Consumer Product Safety Commission across all product categories, 60% were from products made in China, up from 36% in 2000.

Many are calling for increased action and resources from the commission, arguing that safety issues are inherently higher for imported products, especially from China, and that the commission’s resources have simply not kept pace with supply chain realities.

With toys, safety issues are most prominent in two categories: low cost, non-name brand toys sold in dollar stores and other venues, and counterfeit goods, which are often difficult to detect. The low price, non-name brand goods often have murky supply chains and no major manufacturer or importer directly responsible for quality or safety, and must be made for just a few cents, encouraging cutting corners to reduce costs. The counterfeit goods look like the name brands, but rarely have the same standards for production, including safety specifications.

It appears that the Chinese government itself is likely to take some action here as well, worried these issues could dampen export activity.

 
     
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