FedEx Sues U.S. Commerce Department Over Export Controls In Huawei Dispute

China launched an investigation into Fed Ex earlier this month over parcels delivered to the wrong address without giving details about the deliveries in question

Now, the giant shipper is suing the U.S. Commerce Department to block the agency from enforcing export regulations against FedEx.

Basically, the suit says the Export Administration Regulations "unreasonably" hold carriers like FedEx liable for shipments it handles without knowing they violate the blacklist. Huawei's President has said that the company will lose $30 billion over two years as a result of the Trump Ban, so in such a situation, the Chinese OEM has chose to fight back with economic warfare of its own. However, we believe that the EAR, as now constructed and implemented, place an unreasonable burden on FedEx to police the millions of shipments that transit our network every day.

The rules in question, Export Administration Regulations, put the onus on carriers like FedEx to ensure packages containing restricted items aren't exported to blacklisted recipients unless the required licenses have been issued.

The department in May added Huawei and its affiliates to an "entity list", a move that under Export Administration Regulations (EAR) barred U.S. companies from supplying the Chinese company with parts such as electronic chips or providing other technologies without United States government approval.

That's the role of the government, which argues that they have the right to ask for this in order to protect United States national security. That followed USA curbs on Huawei Technologies Co.

On Friday, PCMag said FedEx refused to ship a package that reportedly contained a Huawei phone. The phone was shipped using Parcelforce and FedEx, and to ship it internationally, the P30's model number had to be listed on a shipping form.

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China's commerce ministry and FedEx did not respond immediately to a request for comment on the likelihood of the company being added to the "unreliable" list.

FedEx says that doing so is both legally and logistically impossible. In the case of FedEx, the firm has already come under fire for two Huawei package incidents. We have invested heavily in our internal export control compliance program.

After PCMag posted an article about the incident, FedEx made a public apology to the tech site, citing "operational error" as the cause of the return. All problems can be cited to the company's trade ban by the U.S. earlier last month.

Shortly after Smith's interview, Commerce Secretary Wilbur Ross told Fox News that "the regulation states that common carriers can not knowingly ship items in contravention of the entity list or other export control authorities".

Last month, China said it would launch an investigation after two parcels sent via FedEx destined for Huawei addresses in Asia were diverted to the United States.

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