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FedEx sues Commercial Department for restrictions on Huawei



FedEx
Corp.

After bungling some supplies for Huawei Technologies Co., Huawei filed suit on Monday to prevent the US government from demanding that the package giant enforce a crackdown on the Chinese telecommunications equipment supplier.

The lawsuit was filed with a federal court in Washington, DC, alleging that the recent US Commerce Department's restrictions are essentially forcing FedEx to monitor millions of parcels it sends out daily to ensure that banned items are not sent to it Huawei are exported. FedEx claims that this is legally and logistically impossible.

"FedEx is a transportation company, not a law enforcement agency," it said in a statement.

A Commercial Department spokesman said FedEx's complaint had not been investigated yet, but the agency wanted to defend its role in US national security.

Citing concerns over national security, the Department of Commerce announced in May that it would put Huawei and its affiliates on the "entity list" to prevent companies from using Huawei technology originating in the US without US approval Government.

Huawei warns that US restrictions could raise up to $ 30 billion from its revenue this year and next. Several US suppliers, including chipmakers

Broadcom
Inc.,

warned of a blow to their own sales through the escalating trade dispute.

The 1

9-page complaint from Monday does not name Huawei, but FedEx is involved in the larger dispute between the US and China. Last month, FedEx apologized after misdirecting some of Huawei's packages, including two sent to the global hub in Memphis, Tennessee, instead of China.

Huawei publicly complained and Chinese officials said they were investigating FedEx.

The Wall Street Journal reported that the packages were misdirected after FedEx changed its internal systems to comply with the Ministry of Commerce's new restrictions.

FedEx once again apologized last week after a Huawei smartphone sent to the United States by a journalist in Britain was returned to its sender.

In its lawsuit, FedEx claims that as a common carrier, FedEx, like the US Postal Service or a telecommunications company, is generally not liable for the content of messages or broadcasts.

The lawsuit states that FedEx checks the sender and recipient names to make sure they are not on the entity list. Even if FedEx opened any package, it would not be able to make a technical decision as to whether the content violated US restrictions.

Steve Gaut, a spokesman for

United Parcel Service
Inc.,

According to UPS, there were no exceptional circumstances regarding his business.

"We did not have any particular shipping issues for Huawei or any of our other customers, and we would not choose to join or make such a claim," Gaut said.

The Trump Administration In a major trade dispute with China, it launched a global campaign against Huawei, the world's largest provider of telecommunications equipment, which, according to some US officials, is due to the Chinese government, and Huawei says its equipment poses no security risk and is independent of the government Operated by Beijing.

The Chinese Department of Commerce issued a response stating that it had created an "unreliable list of entities" – blacklisting foreign companies, organizations and individuals breaking contracts, harming Chinese companies for non-commercial reasons, or national security concerns

China was a key market for both FedEx and UPS, carrying components and finished products to and from the country's production centers. FedEx is likely to face stand-up issues when it reports quarterly results on Tuesday night.


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