FedEx sues U.S. Commerce Department over export controls in Huawei dispute
- 5 years ago
Global delivery firm FedEx has a 'special delivery' for the U.S. government.... and it's not the kind you look forward to.
Caught in the crossfire in the conflict between the U.S. and Huawei, FedEx is suing the U.S. Commerce Department over export rules that are being enforced against it.
For more on this and other news from around the world, let's turn to our Hong Yoo.
Tell us more on about what is driving FedEx to do this.
This lawsuit announced by FedEx on Monday comes after a dispute over diverted shipments that prevented a Huawei package from being delivered to the U.S.,... and mistakenly returned to China.
FedEx claims changes to export rules designed to keep tech away from certain entities or people that the U.S. government considers a potential risk to U.S. national security or foreign policy interests are damaging its business.
Last month, the Commerce Department added Huawei to its entity list preventing transfers of technology to the Chinese telecoms giant without a special license.
And then came China's investigations into FedEx over misdelivered Huawei packages to which FedEx apologized on Sunday, saying it was an operational error.
Early this month, FedEx said its relationship with its Chinese customers is important and it will fully cooperate with any regulatory investigations.
The delivery company says the rules assume they can screen millions of packages shipped daily... when it's virtually impossible.
On top of that, with 1-thousand-1-hundred entities on the list, it puts them at risk of being fined for not having the pieces delivered and for possibly violating rules by shipping goods to enlisted entities.
U.S. Commerce Department said Tuesday that they haven't yet reviewed the complaint, but look forward to defending Commerce's role in protecting U.S. national security.
Caught in the crossfire in the conflict between the U.S. and Huawei, FedEx is suing the U.S. Commerce Department over export rules that are being enforced against it.
For more on this and other news from around the world, let's turn to our Hong Yoo.
Tell us more on about what is driving FedEx to do this.
This lawsuit announced by FedEx on Monday comes after a dispute over diverted shipments that prevented a Huawei package from being delivered to the U.S.,... and mistakenly returned to China.
FedEx claims changes to export rules designed to keep tech away from certain entities or people that the U.S. government considers a potential risk to U.S. national security or foreign policy interests are damaging its business.
Last month, the Commerce Department added Huawei to its entity list preventing transfers of technology to the Chinese telecoms giant without a special license.
And then came China's investigations into FedEx over misdelivered Huawei packages to which FedEx apologized on Sunday, saying it was an operational error.
Early this month, FedEx said its relationship with its Chinese customers is important and it will fully cooperate with any regulatory investigations.
The delivery company says the rules assume they can screen millions of packages shipped daily... when it's virtually impossible.
On top of that, with 1-thousand-1-hundred entities on the list, it puts them at risk of being fined for not having the pieces delivered and for possibly violating rules by shipping goods to enlisted entities.
U.S. Commerce Department said Tuesday that they haven't yet reviewed the complaint, but look forward to defending Commerce's role in protecting U.S. national security.