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FedEx imposes restrictions on Huawei's Trade Department



FedEx
Corp.

, after botched some deliveries to Huawei Technologies Co., a Monday was filed to stop the US government from demanding the package giant to enforce a breakdown on the Chinese telecommunications equipment manufacturer.

The process, filed in a federal court in Washington, DC, claims that US trade department's latest restrictions essentially force FedEx to police millions of packages it is sent daily to ensure that prohibited items are not exported to Huawei. It's a task FedEx claims, it's legal and logistically impossible.

"FedEx is a carrier, not a law enforcement agency," the company said in a statement.

A spokesman for the Trade Department said it had not yet reviewed FedEx's complaints, but the Agency intended to defend its role in US national security.

The Department of Commerce, referring to national security issues, said in May that it was adding Huawei and its subsidiaries to its "listings" to prevent companies from delivering US-based technology to Huawei without US government approval.

Huawei has warned the US restrictions can beat as much as $ 30 billion from revenue this year and next. Several US suppliers, including chip maker

Broadcom
Inc.,

have warned of a hit to their own sales from the escalating trade dispute.

Monday's 1

9-sided complaint is not called Huawei, but FedEx has ended up in the major dispute between the US and China. Last month, FedEx apologized for misunderstanding some Huawei packages, including two sent to its global hub in Memphis, Tenn. Instead of China.

Huawei publicly complained and Chinese officials said they initiated an investigation by FedEx.

The Wall Street Journal reported that the packages were inaccurate after FedEx changed its internal systems to follow the trade department's new constraints.

FedEx apologized last week after a Huawei smartphone was sent by a US journalist to the US returning to the sender.

In his trial, FedEx claims that as an ordinary carrier, it is very common as the US postal service or a telecommunications company. It is generally not responsible for the content of messages or deliveries.

The suit says FedEx screens the names of shippers and recipients to ensure they are not on the business list. Although it opened every package, FedEx argues in its suit that it could not make technical determinations if the content violates US restrictions.

Steve Gaut, a spokesman for

United Parcel Service
Inc.,

UPS has not experienced any extraordinary circumstances regarding its business.

"We have not had any particular problems with shipping for Huawei or any of our other customers, and we would not support joining such a process or making such claims," ​​Said Gaut.

The Trump administration, among a broader trade display with China, has established a global campaign against Huawei, the world's largest provider of telecoms supplies, which some US officials believe remain for the Chinese government. Huawei says the equipment is not a security risk and it works independently of the Beijing government.

China's Department of Commerce responded in response to the creation of an "untrustworthy entity list" – a black list of foreign companies, organizations, and individuals breaking contracts, harming Chinese companies for non-commercial reasons, or harming national security interests.

China has been a key market for both FedEx and UPS, carrying components and finished goods in and out of the country's manufacturing center. FedEx is likely to ask standoff questions when reporting quarterly results Tuesday night.


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