SHIPLOADS of toys are being kept adrift following the European Union's hasty imposition of quotas on Chinese-made toys last month. It is estimated that up to 1,000 containers, filled with toys worth about $200 million, will be stranded at European ports as the countries' importers await their import licences. The problem has arisen because the EU has failed to process quotas for its 12 member states, which are in turn unable to issue licences to their importers. Without import licences, the countries are not allowed to take delivery of the shipments of toys. The Trade Development Council's toys advisory member Bill Blaauw said the crisis was a result of the suddenness of the EU's decision to impose the quotas. The changes are expected to slash China's toy imports by $5 billion, or 40 per cent. ''The whole thing was done at very short notice and has caused great hardship to the industry as no one had time to prepare for the changes,'' Mr Blaauw said. ''Without an import licence, European importers cannot take delivery of toys which have been manufactured in China. ''As such, shipments of toys which are headed for Europe will not be able to leave their destinations.'' This has led to manufacturers incurring high storage charges in Europe. ''Shipments of toys currently docked in Hong Kong are also incurring storage charges,'' Mr Blaauw said. He said European importers were still in the dark as to when they would receive the licences, and that department stores in Europe would soon be experiencing shortages as China was the world's leading toy supplier. ''How can you find an alternative source for toys in such a short space of time?'' Mr Blaauw said, adding that the EU's move, although directed at China, would be more harmful to Hong Kong. ''Over 90 per cent of the 3,000-odd toy factories in China are owned by Hong Kong businessmen. The problem has hit Hong Kong entrepreneurs really hard,'' he said.