The increase in the surveillance fee for the import of remote-controlled toy cars from 8 thousand dollars to 15 thousand dollars as of the new year has caused serious cost pressure in the toy industry. Industry representatives state that the regulation will be directly reflected in prices and mean an average increase of 40 percent.
Toy Manufacturers Association (TOYDER) Chairman Raşit Akar emphasized that the domestic production rate in the remote-controlled toy group in Türkiye is only 3 percent and said that the decision will negatively affect both the industry and the consumer.
“Prices Will Increase by 40 Percent”
Akar stated that remote-controlled toys constitute approximately 60 percent of total toy imports and 30 percent of the market. Stating that the additional cost introduced on this scale will be seriously reflected on product prices, Akar said:
“We are both manufacturers and importers, but also parents. Toys in Türkiye are already 2-3 times more expensive than abroad due to the high tax burden. The share of domestic production in remote-controlled toys is only 3 percent due to the abundance of product diversity, lack of sufficient infrastructure and Far Eastern dominance. The increase in the surveillance fee will directly affect the prices, make it difficult for children to access toys and negatively affect inflation.”
“The increase in products that are not domestically produced is not understandable”
Stating that they support existing protective practices in sectors produced in Türkiye, Akar said that battery-powered toy cars are an example of this. Stating that Türkiye is an important producer in this product group, Akar said, “However, we have difficulty understanding the reason for these increases in product groups with little or no production.”
He drew attention to the decline in birth rates
Pointing out that birth rates in Türkiye have decreased significantly in recent years, Akar reminded that the number of babies born annually has fallen to 900 thousand, and that there has been a potential child population loss of 4-5 million in the last 10 years.
Akar warned: “In such a situation, products for children becoming more expensive may have negative social and economic consequences.”
Difficulty in Importing Parts and Parts
Industry representatives state that procedures have become more difficult not only in finished products but also in the import of parts and components.
Akar stated that previously, an out-of-scope certificate could be obtained for toy parts imports, but with the new application, a separate letter must be obtained from the relevant institutions for each part. He stated that this situation will slow down the business processes of both importers and manufacturers and increase costs.
75 Percent of the Sector Is Based on Imports
Stating that the toy industry in Türkiye has a size of approximately 1 billion dollars, Akar said that the share of imports varies depending on the product group, but is at an average level of 75 percent.
Stating that a significant acceleration was achieved in the domestic market and exports during the pandemic period, but this advantage has been lost in recent years, Akar emphasized that reducing the tax and VAT burden, especially on children’s products, will both revitalize the domestic market and support the purchasing power of families.
Industry representatives are calling on ministry officials to reduce the surveillance fee for remote-controlled toys to its previous level.
