2012
New Import Vendor – Toys R Us Background & Requirements
Toys R Us Background
Company founded in 1948 consisting of:








Toys "R" Us, U.S. – Nearly 600 stores throughout the United States
Babies "R" Us – Since opening its first store in Westbury, NY in early 1996 has grown to 260
locations nationwide.
FAO Schwarz – Toys “R” Us, Inc. acquired iconic toy retailer FAO Schwarz in May 2009
Flag Ship Stores, all located in New York City range in size from 55,000 – 100,000 sq ft (5,109 –
9,290 sq meters)
o Toys “R” Us Times Square, the company’s international flagship store opened in 2001
o Babies “R” Us Union Square, the company’s flagship juvenile store located in New York
City
o FAO Schwarz, located on 5th Avenue in New York City since 1986, but has been located
in 6 other locations in Manhattan over its 100 year history. FAO is celebrating it’s 150
year history and the creator was inducted into toy book hall of fame
Toys "R" Us, International – More than 524 international stores and 220 licensed stores in 33
countries and jurisdictions outside the United States abroad. Joining the international scene in
1984 with stores in Canada and Singapore then adding Central Europe (Germany, Austria &
Switzerland), UK, Iberia (Spain & Portugal), France, Australia. Just recently added Poland and
TRU China. Franchises in Northern Europe, Mid-East, Asia, South Africa
Portfolio of Online Brands
o Toysrus.com – Founded in 1998
 Note: Please visit this site to see the variety of products offered and sold by us.
o Babiesrus.com – Launched in June 2000
o Toys.com – In March 2009, Toys “R” Us Inc. obtained one of the most commonly used
URLs when consumers search online for toys.
KB Toys – In August 2009, Toys “R” Us, Inc. acquired the KB Toys™ brand, which includes its URL,
KBToys.com its trademarks and other intellectual property rights
Worldwide sales for 2011 were over US$13.9 billion across all store formats
Costs & Terms


Prices Quoted
Quote both LCL (Less than container load) and FCL (Full container load) pricing. Note: Toys R Us
– U.S. normally places orders for more frequent, smaller shipments (LCL), while certain other
countries may be able to take advantage of full container (FCL) shipments. Prices quoted must
be a single, global LCL cost that includes compliance with all standards, packaging, and any
other requirements needed for importation into the countries where we operate. We will
communicate any exceptions to this up front.
o For each product, US, Canadian and International Quotes must be provided using SpeedQuote software. The first 10 quotes are free using the Speed Quote “Trial Version”, then
after that there is an annual fee of $100.00 paid to Apptastic, the software provider. To
1








order and download direct your web browser to:
https://www.apptastic.org/sales/toysrus_order.html.
o Manufacturer’s Number – The MFR # will be assigned by Toys “R” Us and it is expected
to be reflected on the Quote Sheets.
RoHS Compliance (where applicable) quote
Payment terms – Net 60 days
Product Liability Insurance for TRU-U.S. –Must have minimum coverage of either US
$5,000,000, $10,000,000, or $15,000,000 per occurrence, naming “Toys “R” Us, Inc. and its
subsidiaries” as additionally insured. Coverage amounts are based on classification of goods
being sold to Toys “R” Us.
o $15,000,000 in coverage is required for Furniture and Baby Gear (e.g. cribs, crib tents,
rockers, high chairs, sleep wedges, travel system, strollers, buggies, car seats, infant
carriers, etc.).
o $10,000,000 in coverage is required for select sporting goods (e.g. bicycles, scooters,
skateboards, swing sets, floating devices, etc.).
o All other items require a minimum of $5,000,000 in coverage.
o Insurance carrier must have a U.S. office and Best’s Rating of AX.
RGD (Returned Goods Defective) Vendor acknowledges that the RGD Allowance will be
deducted from invoice. At the end of the TRU fiscal year, actual defect rate incurred will be
applied to landed receipts for the year. Vendor will be charged if the result is greater than the
allowance dollars withheld off invoice. RGD rate assigned to vendor is based on category of
goods at the current Global 3-year average for Toys R Us vendors.
Other Allowances – Toys R Us strives to obtain net pricing for Private Brand products being
purchased, but some allowance deals may be negotiated at times based on individual
circumstances.
Global Master Purchase Order Agreement – All vendors must sign the GMPOA. It also includes
additional details on the contractual obligations when conducting business with Toys R Us.
Minimum Order Quantities – Toys R Us does not accept vendor minimum order quantities. We
will order based on our needs.
Competitive Sourcing – Toys R Us will, from time to time, conduct reverse auctions and other
competitive means to ensure we are receiving the best cost. There are times Toys “R’ Us will
look to do “Cost Benchmarking”. This will involve looking at a competitive component cost
offerings from a sample lot of vendors.
Logistics





EDI – (Electronic Data Interchange) required to receive POs from all markets.
MID (Manufacturer ID) Code – Toys R Us – U.S. requires complete factory name and address (to
be noted on quote sheet) in order to comply with Customs compliance. Country of origin for the
product and the factory address provided must match. Hong Kong and China are not the same.
VIM – Vendor Item Management is a tool that allows the vendor to set-up new items for the
United States market through the Vendor Extranet.
Delivery to Toys R Us Consolidator – Inland freight costs to Toys R Us consolidator (DHL Supply
Chain) are at vendor expense.
Consolidation Charges – Vendor is responsible for all consolidation charges (CFS). These charges
will be billed to their account by the Toys R Us consolidator. Further details on these charges
may be obtained from our consolidator (DHL Supply Chain). Consolidation charges (RMB$ per
CBM) for goods shipped from Yantian are shown in the table at the end of this document.
2

Other documentation charges – Vendor responsible for any other customary charges related to
cargo delivery. This would include, but is not limited to, such charges as Forwarders Cargo
Receipts (FCR) issuance and Origin Receiving Charge. Further details may be obtained from our
consolidator (DHL Supply Chain).

Global Quality Assurance Highlights
TRU Global QA
Process Summary.docx
C-TPAT (Customs Trade Partnership Against Terrorism)

Toys R Us - U.S. requires all of its import suppliers to be C-TPAT compliant in order to facilitate
timely receipt of goods into the U.S. Intertek has been designated as our C-TPAT Vendor Audit
Partner. Intertek will perform this audit at a cost of US$550, to be paid by the vendor. Intertek
will conduct an on-site factory visit as well as explain the process and provide all relevant forms
and details
Tooling Ownership and Exclusives



Toys R Us may elect to pay for and own tooling related to the production of specific items. In
those cases, vendor will be responsible for maintenance of that tooling and provide access to it
by Toys R Us at any time. Toys R Us reserves right to move that tooling to another factory at any
time. Items produced from such tooling are to be shipped ONLY to Toys R Us and its designated
affiliates. Vendors will be required to sign a document attesting to this.
Exclusive items will be covered by a separate, signed exclusivity agreement between vendor and
Toys R Us. This agreement stipulates that vendor will NOT produce and ship stated item(s) to
any recipient other than Toys R Us or its affiliates without express written consent of Toys R Us.
All Private Label items are to be treated as exclusives and that in no circumstances are you
permitted to sell or dispose of to any customer.
Packaging



Toys R Us Private Brand packaging – Toys R Us will provide the artwork (or style guide) for all
private brand packaging. Vendor is responsible for producing such packaging to Toys R Us
specifications. Cost of packaging production to be paid by vendor. NOTE: Creation of packaging
for Toys R Us Europe and Canada is charged to vendor by our nominated studios. Vendor works
directly with those nominated studios, negotiates the price and pays them directly. (All Private
Brand proofs must be sent to HK graphics team for review/approval)
Non-private brand items – Vendor is responsible for producing acceptable packaging for any
item purchased by Toys R Us that is not in private brand packaging. Cost of this packaging to be
paid by vendor.
Translations – Vendor is responsible for the translation cost for any required multi-lingual
packaging for Toys R Us Europe and translating into Japanese for Japan. Translations for TRUU.S. packaging (English/Spanish) are paid for and done by TRU-U.S. Translations for Canadianonly packaging (English/French ONLY) are paid for and done by TRU-CA.
3




All poly-bags must have a minimum thickness of 50 microns and be printed with the relevant
suffocation warnings in 9 languages
Package creation (artwork) costProvided by U.S. at no charge to Vendor. Vendor pays TRUdesignated HK studio for packaging creation cost. Estimate of the expense may be optained
from our European Packaging Group. Dependent on package size and type. Package production
costAt vendor expense.
Print proof and film separationAt vendor expense. 3 sets of print proof are required for
approval in U.S. At vendor expense. 3 sets of print proof are required for approval by our office
in HK.
As a global company with an ongoing commitment to sustainability in our operations, it is
essential that our business partners and their respective suppliers utilize sustainable forestry
management practices when sourcing materials for the production of exclusive brands sold by
Toys“R”Us, Inc. Any questions on this please send to: sustainablepack@toysrus.com
Toys R Us Import Shipping Manual – Provided to every vendor via the Vendor Extranet











Updated every 6 months.
Testing information for all Toys R Us countries
Packaging instructions
Shipping and delivery instructions
Includes latest requirements, contacts and addresses of each country.
Consolidator addresses and contact information
Documentation requirements for each country
Specific requirements for certain products by country
Carton marking requirements
Specimen forms
GS1-128 Label requirements
Additional Internet resource for new vendor set-up


https://vendorconnect.toysrus.com provides more details on specific requirements by TRU-U.S.
on becoming a new vendor. Vendors will receive assistance from TRU in answering any
questions regarding these requirements.
Product LifeCycle Management (PLM) – PLM is a Global Product Development tool used to
collaborate with vendors, develop new products, and ensure milestones are achieved on-time.
Costs for PLM are listed below.
Summary of TRU-U.S. & TRU-International Requirements
Program
TRU-U.S.
4
TRU-International
Summary of TRU-U.S. & TRU-International Requirements
Program
Factory Audit
FOB cost quote
Payment terms UPDATE
Payment made
TRU-U.S.
TRU-International
If factory is selected for audit,
Accepts TRU-U.S. audit results
vendor to pay cost.
Usually buys @ LCL cost but
Usually buys @ FCL cost but
also quote FCL
also quote LCL
Net 60 days, open acct
Please check with China Sourcing Office for more details.
Allowances
RGD and New Store Allowance – Contact China Sourcing Office for
details
EDI (Electronic Data
Interchange)
New Global Private Label vendors must use EasyLink’s Trade
Gateway EDI service
“An annual subscription fee of $75.00 will be billed with the first
transaction invoice and annually thereafter. In addition, a Monthly
Hosting and Maintenance Fee and a Monthly Transaction Fee will
be charged to each Customer based on the number of documents
processed between the Customer and the Trading Partner. The
monthly fees are as follows, Hosting fee followed by Transaction
fee:
 $20.00, $50.00 (provides 0-25 transactions)
 $30.00, $125.00 (provides 26-75 transactions per month)
 $35.00, $175.00 (provides 76-150 transactions per month)
 $40.00, $225.00 (provides 151-300 transactions per month)
 $45.00, $275.00 (provides 301-500 transactions per month)
Transactions over 500 will be billed at $0.50 per transaction.”
*Prices accurate as of March 16, 2012. Contact Trade Gateway for
current pricing.
RGD Allowance (Return Goods
Defective)
RGD rate assigned to vendor is based on category of goods at the
current Global 3-year average for Toys R Us vendors.
Product Liability Insurance
Must have minimum coverage of either US $5,000,000,
$10,000,000, or $15,000,000 per occurrence, naming “Toys “R”
Us, Inc. and its subsidiaries” as additionally insured. Coverage
amounts are based on classification of goods being sold to Toys
“R” Us. $15,000,000 in coverage is required for Furniture and
Baby Gear (e.g. cribs, crib tents, rockers, high chairs, sleep wedges,
travel system, strollers, buggies, car seats, infant carriers, etc.).
$10,000,000 in coverage is required for select sporting goods (e.g.
bicycles, scooters, skateboards, swing sets, floating devices, etc.).
All other items require a minimum of $5,000,000 in coverage.
Insurance carrier must have a U.S. office and Best’s Rating of AX.
5
Summary of TRU-U.S. & TRU-International Requirements
Program
Package creation (artwork) cost
Package production cost
Print proof and film separation
Testing charges
TRU-U.S.
TRU-International
Provided by U.S. at no charge to
vendor
Vendor pays TRU-designated
HK studio for packaging
creation cost. Estimate of this
expense may be obtained from
our European Packaging Group.
Dependent on package size and
type.
At vendor expense
At vendor expense. 3 sets of
At vendor expense. 3 sets of
print proof are required for
print proof are required for
approval in U.S.
approval by our office in HK.
Paid by vendor – must comply
Paid by vendor – must comply
with all relevant ASTM, CPSC
with all relevant EN71, RoHS,
and any other U.S. regulations
WEEE, Phthalate and any other
International regulations.
2nd Item Test
Not done at this time
Green Point Fees (Waste
Packaging)
Not applicable in U.S.
C-TPAT compliances
Required for TRU-U.S.
compliance. 3rd party performs
audit and provides certification
guidance. Vendor cost of audit
is US$600
Paid by vendor
Inland freight costs to
consolidator
Late shipment chargeback
Item Non-Compliance Program
Item may be tested once more,
after receipt, at vendor
expense, in the UK.
All TRU-Europe countries
(France, Spain, Germany and
UK) will deduct from payment a
fee based on the weight of the
packaging materials. Our
testing lab will measure the
weights of all packaging
materials during the normal
testing procedures.
Not applicable if vendor is not
shipping to TRU-U.S.
Failure to ship complete and on-time within the PO ship window
will result in the following chargeback:
 1-7 days late = 1% of extended cost of shipment
 8-14 days late = 2% of extended cost of shipment
 More than 14 days late = 5% of extended cost of shipment
 Minimum - US$500
 Violations are assessed per PO/Item
Item received in shipment at DC
N/A
before item is verified – $250.
6
Summary of TRU-U.S. & TRU-International Requirements
Program
Item Non-Compliance Program
New Item Setup/Verification
Product LifeCycle Management
Software tool
TRU-U.S.
More than 2% item cube
variance (physical vs. TRU item
master) OR More than 2%
carton cube variance (physical
vs. TRU item master) OR More
than 20% carton weight
variance (physical vs. TRU item
master) OR Variance on Pack or
Inner Pack configuration
(physical vs. TRU item master) $1 per carton shipped
(calculated from ASNs received)
Every new item purchased for
Stores - $250
New User Setup - $3,000 setup
/ $575 annual renewal
7
TRU-International
N/A
N/A
Same as TRU – USA Price covers
both