mcloudy.png
Friday August 14th, 2020 6:57PM

FedEx sues US government over export rules in Huawei case

By The Associated Press
Related Articles
  Contact Editor

DALLAS (AP) — A lawsuit filed by FedEx against the U.S. government over export rules follows a dispute over diverted shipments that were intended for Huawei Technologies, the Chinese telecommunications-equipment giant.

The lawsuit challenges changes to export rules designed to keep technology out of the hands of entities or people that the U.S. government considers potential risks to national security.

In May, the U.S. government added Huawei to a list of entities and people barred from receiving U.S. technology without a special license from the Commerce Department. Shortly after that, Huawei complained about FedEx diverting several company shipments.

FedEx apologized to Huawei for the missed deliveries, which it said were accidental. However, China announced that it was investigating FedEx over the matter.

The delivery company complains that the rules "essentially deputize FedEx to police the contents of the millions of packages it ships daily even though doing so is a virtually impossible task."

FedEx Corp. sued the Commerce Department and Commerce Secretary Wilbur Ross in federal district court in Washington on Monday. It asked the court to block the government from enforcing export controls against it.

The Commerce Department said in a statement that it has not reviewed the complaint but looks forward to "defending our role in protecting U.S. national security."

On Sunday, the dispute flared again when Huawei complained on Twitter about FedEx blocking shipment of a Huawei phone from the United Kingdom to the U.S. FedEx Chairman and CEO Fred Smith called it a mistake by a junior employee and took a swipe at the export regulations.

"We are expected to be policemen for these export and import controls, and there are about 1,100 entities now on this list," Smith told Fox News. If the company makes a mistake on any shipment, he said, it can be fined $250,000 per piece without having a trial or due process of law.

In its lawsuit, FedEx said most packages are sealed when customers drop them off, making it impossible for the company to know the contents. FedEx said it compares names and addresses of shippers and recipients against the government's watch list of restricted groups and people.

Meanwhile, tension between the U.S. and China over trade, tariffs and the export rules continues to rise. Huawei filed a lawsuit in federal court in Texas to challenge the constitutionality of a law that bars the government and its contractors from using Huawei equipment.

FedEx has run afoul of export controls before. Last year, the company agreed to pay $500,000 to settle government allegations that it violated the rules with some shipments to flagged entities in France and Pakistan.

Memphis, Tennessee-based FedEx was scheduled to release its latest financial results later Tuesday.

FedEx shares were down for a second straight day. In afternoon trading, they lost $4, or 2.5%, to $156.90 after falling 2.7% on Monday.

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Corporate News, AP Business - Economy, AP Technology News
© Copyright 2020 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
AP Exclusive: Imprisoned supercop's escape from Venezuela
Political fugitive Iván Simonovis was racing toward an island rendezvous with freedom when Venezuela's crisis, in the form of water and sediment-filled gasoline, choked off his boat's motor _ almost sabotaging a meticulously planned escape
2:49PM ( 20 minutes ago )
Girl Scout, 11, killed by falling tree at Indiana camp
A county sheriff says an 11-year-old Girl Scout was walking along a gravel road when she was fatally struck by a falling tree at a southern Indiana campground
2:47PM ( 22 minutes ago )
Stocks move lower on economic data, Powell remarks
Stocks are down on Wall Street in afternoon trading after discouraging data on U.S. consumer confidence and housing stoked investors' worries that the U.S. economy is slowing
2:43PM ( 26 minutes ago )
Associated Press (AP)
Lawyers pause plan to divide any national opioid settlement
The differences between state and local governments on how to handle any future settlement with the drug industry over the toll of opioids won't play out in court just yet
2:20PM ( 49 minutes ago )
Mitsubishi Motors to relocate North America HQ to Tennessee
Mitsubishi Motors has announced it's relocating its North America headquarters from California to Tennessee
2:13PM ( 56 minutes ago )
Report: Hackers using telecoms like 'global spy system'
Boston-based cybersecurity firm Cybereason says in a report that hackers are breaking into telecoms firms to gain sweeping access to VIPs' call records, location data and device information
1:58PM ( 1 hour ago )
AP Business
SpaceX launches hefty rocket with 24 satellites, experiments
SpaceX launches its heftiest rocket with 24 research satellites, experiments
11:48AM ( 3 hours ago )
Cryptocurrencies need close scrutiny, monitor warns
An international financial monitor is warning that wider use of cryptocurrencies by retail shoppers would call for "close scrutiny" by regulators and should be subjected to tough regulation
11:11AM ( 3 hours ago )
Financial monitor says digital money needs 'close scrutiny'
An international financial monitor is warning that wider use of cryptocurrencies by retail shoppers would call for "close scrutiny" by regulators and should be subjected to tough regulation
11:07AM ( 4 hours ago )
AP Technology News
AP Exclusive: Imprisoned supercop's escape from Venezuela
Political fugitive Iván Simonovis was racing toward an island rendezvous with freedom when Venezuela's crisis, in the form of water and sediment-filled gasoline, choked off his boat's motor _ almost sabotaging a meticulously planned escape
2:49PM ( 20 minutes ago )
Girl Scout, 11, killed by falling tree at Indiana camp
A county sheriff says an 11-year-old Girl Scout was walking along a gravel road when she was fatally struck by a falling tree at a southern Indiana campground
2:47PM ( 22 minutes ago )
Stocks move lower on economic data, Powell remarks
Stocks are down on Wall Street in afternoon trading after discouraging data on U.S. consumer confidence and housing stoked investors' worries that the U.S. economy is slowing
2:43PM ( 26 minutes ago )
Pickup driver pleads not guilty in fatal motorcycle crash
A driver for a transport company has pleaded not guilty to seven counts of negligent homicide in a collision with a group of motorcyclists on a rural highway
2:40PM ( 29 minutes ago )
AbbVie makes $63B bid for Botox maker Allergan
AbbVie is buying Botox maker Allergan in a deal valued around $63 billion
2:39PM ( 31 minutes ago )