The government plans to scrap its tariffs on toys in April to ease the burden on domestic makers that sell imported products, Finance Ministry sources said on Wednesday.
About 80 percent of the nation’s toy companies make products overseas, such as in China, to take advantage of lower labor costs.
But the companies have to sort out their products before shipping them to Japan because there are three tariff rates on toys that are determined by the types and materials used, sending shipping costs higher.
The government imposes tariffs of up to 3.9 percent on imported toys.
Even if the tariffs are repealed, there will be no competitive disadvantage for the domestic toy industry because its production is limited mostly to traditional items, the sources said.