The finance ministry has extended a concessional Customs duty to China for import of toys. This comes under the Bangkok Agreement, to which China became a signatory in 2001.

Chinese toys will now attract a Customs duty of 20 per cent, against 25 per cent for other countries, except South Korea, Bangladesh and Sri Lanka. These three countries are also signatories to the Bangkok Agreement.

While a Cabinet decision to this effect was taken in June last year, the provisions were not operationalised so far.

Apart from toys, import of 55 other items, including cloves, coconut oil, tyres, tubes, rubber mats, TV picture tubes, cathode ray tubes and amplifier equipment, from China will get special tariff concessions.

The Chinese government has offered similar concessions on 182 items imported from India like chemicals, leather and textiles. These items account for 30 per cent of India's exports to China.

Currently, there are around 800 toy and games manufacturers, exporters and suppliers in the small-scale sector, with a turnover of around $2.5 million. The toys and games market in India stands at around Rs 250 crore.

China supplies 75 per cent of the global demand for toys. According to the China Toy Association, in 2002, Chinese toy exports were valued at $9.93 billion, up 31 per cent over $7.58 billion in 2001.