Rewriting Chemical Safety Laws May Save Toymakers ‘Millions’

[The Straight Story]

Rewriting Chemical Safety Laws May Save Toymakers ‘Millions’

Feb. 3 (Bloomberg) -- Asian toymakers supplying most of the world’s dolls and games say their costs may drop 15 percent if U.S. and European Union watchdogs follow through on plans to streamline the limits on chemicals in children’s playthings.

American and European Union laws contain different measurements for acceptable amounts of compounds in toys, so Barbie dolls and Thomas the Tank Engine trains undergo different tests tailored to their destinations. Some U.S. states have different restrictions than the federal government, and some European nations set different limits than the EU.

A test conducted for one jurisdiction often isn’t accepted by another, so it has to be done repeatedly, according to manufacturers in Asia. That duplication costs millions of extra dollars, they said.

“The idea of these multiple standards is crazy,” said William Fung, managing director of Li & Fung Ltd., the world’s biggest supplier of toys to retailers including Wal-Mart Stores Inc. and Toys “R” Us Inc. “If you look at all these compliances, it’s like the UN flag. It’s higher prices for everyone.”

Eric Levin, president of Techno Source, a closely held Hong Kong company, said he doubled his budget last year for testing the Animal Yakkers and Eggs he made in China to ensure they met U.S. federal and state laws. His costs were “in the millions.”

http://www.businessweek.com/news/2010-02-02/rewriting-chemical-safety-laws-may-save-toymakers-millions-.html