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FedEx Sues U.S. Commerce Department

fedex jun25 lt

FedEx Corp. said it filed a lawsuit against the U.S. Department of Commerce for insisting on the "impossible burden" of knowing the contents of the millions of packages it transports.

This follows the federal government's ongoing restrictions on doing business with Huawei Technologies Co. FedEx recently misplaced certain deliveries of Huawei packages, and is being investigated by the Chinese authorities.

In the suit filed in Columbia District Court, FedEx seeks to urge the Department of Commerce from enforcing prohibitions contained in the Export Administration Regulations or EAR against the company.

According to FedEx, the EAR violates common carriers' rights to due process under the Fifth Amendment of the U.S. Constitution. For a common carrier such as FedEx, it is very difficult to know the origin and technological make-up of contents of all the shipments it handles, the company said.

FedEx said it will continue to defend its rights as a U.S. based global company.

FedEx reportedly said recently that it will accept and deliver all Huawei products, except for shipments to addresses of Huawei and affiliates listed on the U.S. Entity List.

Huawei, the world's largest telecom-equipment maker, was effectively barred by the Trump Administration from doing business with U.S. suppliers over national security concerns.

Meanwhile, FedEx, which is targeted by Chinese Government over the recent delivery issues, is in for addition in China's own list of "unreliable entities".

Huawei is also said to be reviewing its relationship with FedEx after the recent misplacing of certain deliveries.

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