Sony Computer Entertainment Europe Ltd has been the sole
importer of the PS2 into the UK since the console's launch in 2000.
At the time, UK customs officials classified it as a games console,
and subjected all imports to a duty of 2.2%.
With sales being rather lower than anticipated, Sony was forced
to absorb the import duties of around £6.60 per unit, rather than
pass them on to consumers. It objected to the classification,
arguing that the PS2 was as complex as a computer and should be
categorised as a "digital processing unit". Products in this
category, mainly computers, are exempt from import duty in
Europe.
The case went to the European Court of Justice, and resulted in
a verdict last Tuesday from the Court of First Instance in
Luxembourg.
It was, said the court, "undeniable that, both by the manner in
which the PlayStation 2 is imported, sold and presented to the
public and by the way it is configured, it is intended to be used
mainly for playing video games, even though, as is apparent from
the contested regulation, it may also be used for other purposes,
such as playing video DVDs and audio CDs, in addition to automatic
data processing".
Accordingly Sony cannot reclaim the duties it has paid.
New legislation coming into force in the New Year means that all
imports of games consoles after that time will be zero rated – with
no duty payable.
The judgment is available
here
