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Russia - What awaits the Russian children's goods industry

Russia (bbabo.net), - The Ministry of Industry and Trade has begun discussing with the market the mandatory labeling of children's goods. Antonina Tsitsulina, president of the Association of Children's Goods Industry Enterprises, told Rossiyskaya Gazeta about what kind of goods these could be, why a "children's card" is needed, and whether it is necessary to produce toys from recycled materials.

What changes in legislation should be expected this year in the children's goods industry?

Antonina Tsitsulina: The main discussion revolves around two changes. The first concerns the labeling of children's products. Recently, the Ministry of Industry and Trade proposed a list (it is still non-public) of such goods, which includes toys, games, children's furniture, etc. The main question is which next group will be labeled.

The second change is related to the introduction of a recycling fee. There is an initiative of the Ministry of Natural Resources to include children's goods (toys, children's student furniture, publishing products, textbooks, etc.) in the list, goods from which manufacturers must put into secondary circulation. This is a big turn in the development of the industry in general and the children's industry in particular. Someone is afraid of this, believes that he is not ready.

What difficulties arise in connection with this?

Antonina Tsitsulina: This is a restructuring of the entire technological process. Any slightest change is always a big investment, labor costs for a number of industries (and the children's goods industry includes about 15 industries). We have national legislation and supranational. So, the technical regulations of the Eurasian Economic Union (EAEU) directly prohibit the use of secondary raw materials in the production of games and toys.

At the same time, the Ecology national project, as well as the draft amendments to a number of federal laws, directly translate that manufacturers must undertake obligations to introduce their products into recycling. Let's first allow the use of recycled materials in toys, in terms of the legislative cycle, this is possible by 2025. Then we will start building a circular economy for those segments where secondary raw materials are currently prohibited for processing.

The development of a green production standard will start in 2023, but what measures will be taken this year?

Antonina Tsitsulina: While research work is underway, we are studying the experience of our foreign colleagues. There is a class of toys that are already made from recycled materials. These are toys that include food grade plastic. However, in Russia and the countries of the Customs Union it is forbidden to use secondary raw materials in the production of toys. There is no such ban anywhere else in the world. We believe that it is time to remove this restriction, especially since we are not talking about the introduction of reduced security requirements. Recycled toys, like recycled toys, must meet the same safety requirements.

Today, recycled products are a bit more expensive because recycling itself is in its infancy. When the assembly chain of goods for recycling is built, ordinary toys and recycled toys will equalize in value. We see in a number of industries, for example in clothing, that consumers prefer products that are more expensive if they see that the company is following the principles of sustainable development.

Should manufacturers expect tax breaks for baby products?

Antonina Tsitsulina: Now we have the only benefit that applies to absolutely all enterprises that operate in the children's goods industry (both manufacturers and trade organizations): this is a value added tax (VAT) ). But the product categories that are included in the list of goods for children subject to VAT at 10% are limited and do not include all children's goods.

We have segments where benefits apply to almost the entire product group, for example, to children's clothing. But there are product categories where there are no benefits at all. It is proposed to expand the list to account for the "dropped out" product groups and subcategories - goods that make up the largest item in the cost of providing for a child. These include goods for babies, hygiene and safety products, stationery. Tax incentives should apply to all basic product categories that are included in the children's basket of essential goods.

VAT is still a consumer tax, which seriously affects the development of the industry. The state is actively working with this tax. For example, now the government has expanded this list for a number of premium salmon fish. But why are baby products worse than trout? Do we eat it 99% of families with children? It is right that food products, especially those products that our country is rich in, are entitled to preferential VAT. But approaches to the provision of benefits, in my opinion, should be the same for everyone.

The "Children's Card" can be introduced from 2024. The question of the amount of funds has not yet been discussed. AIDT proposes to take 10 thousand rubles as a basisThe issue of introducing a "children's card" is being discussed at the Ministry of Industry and Trade, to which funds will be credited for the purchase of goods necessary for the child. Can you tell us more about this project? When will such a map appear?

Antonina Tsitsulina: Now the state policy of supporting families with children is being seriously restructured. We believe that property support measures are very important and have several additional effects. The tool with cards (electronic certificate) works effectively because the families themselves determine what they will use the money for. In the case of the "Children's Card", the social ruble becomes an industrial ruble, as in the case of the cultural ruble of the "Pushkin Card", when it stimulates the development of the entire infrastructure - museums, cinemas, cultural figures, content producers. In this way we will be able to significantly stimulate the development of national production and national industry. Parents with their ruble will vote for what they really need. The map helps you see what each ruble is spent on. This is not when someone, as in a gift for newborns, determines what items should be. Parents themselves know what the child has grown out of today, what he wants to read, what he wants to watch, what to play.

Of course, it is necessary to determine for whom support is most important: for young families, for all newborns, or for schoolchildren. If a discussion starts this year and a positive decision is made, then most likely the study will take at least a year. In my optimistic view, the "children's card" can be introduced from 2024. The issue of the amount of funds for the "children's card" has not yet been discussed. We propose to take as a basis the amount of 10 thousand rubles, equal to school payments in 2021 and proven to be in demand.

Will a national toy appear in Russia and what is being done for this?

Antonina Tsitsulina: Today we don't have a national doll, and it's useless to create it without an exciting story and a talented animated film. Only the synergy of the animation film industry and the children's goods industry can create those national heroes that our children will love.

We have much to be proud of even now. For example, we have game aids, playing which children learn to invent. We have educational games that are recognized by experts in science and education abroad. For example, a large number of children in the UK use our kit, which was invented by colleagues from St. Petersburg, to teach chemistry. They combined the traditional "Junior Chemist" game with augmented reality and experiments in a digital laboratory. And everything that is dangerous to do at home on the kitchen table can be done digitally. Unfortunately, there are not so many such sets in our schools.

We can already see that when coming to the store, parents prefer those toys that are made in Russia. Already on products that are not made in Russia, they begin to write: "made in Russia."

Russia - What awaits the Russian children's goods industry