Sony has put on sale 165,000 PlayStation 2 games consoles in the
UK from today most of which have already been sold by advanced
orders. However, Sony is paying tax on the imports os the console
which it has this week appealed.
As reported earlier this month in OUT-LAW News, Sony believes
that the new 128 bit, DVD and (in future) web enabled PS2 should be
categorised as a “digital processing unit.” Products in this
category, mainly computers, are exempt from import duty in Europe.
However, the European Commission has endorsed the opinion of UK
customs officials, that the PS2 is not significantly different from
the original PlayStation which was classified as a games console.
Games consoles are subject to a 2.2% import duty.
This week, Sony appealed the decision by requesting a
departmental review. If that fails, Sony has said it might take the
case to court. Sony is absorbing the import duties of around £6.60
per unit rather than passing them on to European consumers who are
already facing higher retail prices than those in the US. The PS2
is retailing at £299 in the UK, compared with $299 (around £213) in
the US where it went on sale in October, selling 500,000 units in
its first weekend.
