FedEx Sues US Government Over Huawei Shipping Regulations
A few days ago, FedEx reportedly refused to deliver a package containing a Huawei P30 smartphone from London to New York. At the time, it was unclear why Fed Ex refused to deliver what was supposed to be a perfectly legal product. Later, it’s was revealed that the whole ordeal was a mistake and the company was not acting under the orders of the US government. In the latest turn of events, FedEx is suing the US government because it is creating an ‘impossible burden’ for the company. According to a statement delivered by company chairman Fred Smith to Fox News
We contacted the Department of Commerce today and told them that the increasing use of restrictions on exports and imports by the Commerce Department in various geopolitical and trade disputes creates just an impossible burden on FedEx and common carriers
FedEx complained of an unfair and “impossible burden” of liability due to the ruling. The statement further adds, “FedEx is a transportation company, not a law enforcement agency,” The complaint also says the current Export Administration Regulations violate FedEx’s Fifth Amendment rights. FedEx has to either risk legal penalties or refuse to ship any package that seems even remotely risky and can be fined up to $250,000 per item shipped.
US Commerce Secretary Wilbur Ross told Fox News in the same interview that carriers cannot knowingly ship items in contravention of the entity list or other export control authorities and that a carrier doesn’t have to be policemen or to know what’s in every package. Conversely, the Chinese government recently said it’s investigating FedEx for misrouting some Huawei parcels a few days ago. FedEx insisted that no external parties requested that FedEx misroute these packages, which apparently contained only documents. The company promises to deliver all products made by Huawei to addresses other than those of Huawei and affiliates placed on the U.S. national security blacklist.