15 May 2001, 12:00 am
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.