FedEx sued the US Department of Commerce, claiming that it had been "essentially [deposed] [d]" to enforce its trade blacklist. The lawsuit comes one month after Huawei announced a reassessment of its relationship with the supply giant after several packages destined for shipping within Asia were instead redirected or mislabeled for shipment to the United States. FedEx claimed the packages (which, according to Huawei, did not contain any) The technology falling under the Trump Administration's trade ban had been mistakenly misdirected.
In a statement released today, FedEx said the current export ban "represents an unreasonable burden on FedEx to monitor the millions of people watching broadcasts that cross our network every day. "The lawsuit was filed on Monday, and asks the District Court of Columbia District District District Court to prevent the Department of Commerce from enforcing prohibitions in the Export Administration Regulations (EAR) against FedEx.
FedEx said in its court filing that it has developed "a sophisticated proprietary, risk-based compliance system" to comply with US export laws by checking for security or recipients on the list of accepted sites that they pose a national security risk. Huawei, unnamed in either the FedEx announcement or its complaint against the US government, was added to the list last month. FedEx believes, however, that the US government will fulfill a "virtually impossible logistical, economic, and in many cases, legal, task" by processing millions of parcels every day and sealing off most of its customers before handing them over to the company become. Therefore, the company argues that EAR violates its rights to due process under the fifth amendment.
China is an important growth market for FedEx, but earlier this month, its future was in jeopardy there, as the Chinese government said it was being investigated for violation of laws and regulations following the incident involving Huawei's packages. Last year, the company had to cut its earnings forecast for 201