KARACHI, Dec 8: The prices of Chinese toys have surged by 25-30 per cent in the local markets owing to sharp devaluation of the rupee against the dollar and increase in world plastic prices witnessed in the first six months of 2008.

However, the international plastic prices have now fallen to $900 per ton from $1,600 per ton five months, but no price cuts have so far been witnessed in the toy sector.

Imran Saeed Baghpatee, a toy dealer, said that Chinese companies had not fully lifted the cheaper plastic from the world markets and it would take at least two to three months to procure the main raw materials.

He said Chinese companies were likely to procure plastic after Christmas holidays at reduced rates and its impact in shape of price in finished products would arrive by April next. Chinese toys hold 98 per cent of local market as toys manufactured in the US and UK origin has negligible share.

He said some 15-16 containers of Chinese toys (worth $15,000-$20,000) found their way into the port city while 20-22 containers were procured by Lahore-based importers monthly.

Baghpatee, who is also chairman of Tajir Action Committee (TAC), said that importers were now paying duties and taxes between Rs400,000-Rs425,000 per container as against Rs300,000-Rs325,000 when the rupee in stood at Rs62 to a dollar.

There is 25 per cent import duty on import of toys followed by 16 per cent sales tax, four per cent income tax and one per cent federal excise duty, he added.

The import trade price (ITP), charged by the Customs, ranges between $1.40 to $3.0 per kg and C grade quality of Chinese toys hold a major share in Pakistan while A and B qualities are destined for Europe and America, he said.

The very low priced Chinese toys hold 70 per cent market share while medium and big price-range toys hold rest of the share, he added.