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.
Hong Yoo reports.
FedEx announced Monday it is suing the U.S. Department of Commerce for requiring it to enforce export bans through extra screening efforts.
This comes after a dispute over diverted shipments that prevented a Huawei package from being delivered to the U.S.,... and being mistakenly returned to China.
FedEx claims its business is suffering due to changes to export rules designed to prevent those that the U.S. government considers a potential risk to national security from getting hold of key technology.
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.
Earlier 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 FedEx can screen the millions of packages shipped daily something it says is virtually impossible.
On top of that, with 1-thousand-1-hundred entities on the list, FedEx is at risk of being fined by Chinese firms for not delivering packages, and at risk of possibly violating U.S. rules by shipping goods to enlisted entities.
The U.S. Commerce Department said Tuesday that it hasn't yet reviewed the complaint, but that it looks forward to defending its role in protecting U.S. national security.
Hong Yoo, Arirang News.