Cabletron Systems, a holding company for leading US networking and
telecommunications companies, today announced that the European
Court of Justice has ruled in its favour regarding the customs
classifications of networking products imported into Europe.
Networking communications equipment imported into Europe was
reclassified by the European Union in 1995 as telecommunications
equipment. This reclassification brought data processing products,
including Cabletron's networking products, into a higher tariff
range, effectively doubling the applicable tariff. Cabletron argued
that this reclassification was erroneous.
The legal proceedings, taking place over the past five years,
were led by former Cabletron Chairman Craig Benson and current
Chairman Piyush Patel with the support of the Ameican Electronics
Association, The Commerce Department, The United States Trade
Representative, The World Trade Organisation, The World Customs
Organisation, and other networking communications industry
leaders.
Piyush Patel, Chairman, President and CEO of Cabletron Systems
said, "The European Union's former position on tariff
classifications cost the industry and consumers hundreds of
millions of dollars." Patel continued, "The Court's recent decision
to reclassify network communication equipment as data processing
equipment is a substantial win for Cabletron and the entire network
communications industry."
Cabletron believes that the ruling entitles the US networking
industry to refunds of the excess tariffs.
