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