FedEx sues US government over 'impossible burden'

World | AGENCE FRANCE-PRESSE 26 Jun 2019

American logistics giant FedEx has sued the US government, saying Washington's restrictions on exports and imports due to growing trade disputes and sanctions created an "impossible burden" for delivery firms.

The announcement of the lawsuit comes as Beijing and Washington face off in a trade war with steep tariffs on hundreds of billions in exports.

The US has sought to bar Chinese telecom giant Huawei from the American market and limit its ability to purchase American technology.

FedEx said the restrictions placed "an unreasonable burden to police the millions of shipments that transit our network every day" or face heavy fines.

The statement was released hours after China called on FedEx to explain why a parcel from Huawei to the US went undelivered, in the second spat between the two companies in less than a month.

"Despite the fact that we handle 15 million shipments a day, if we make an error on any one of them ... we can be fined US$250,000 (HK$1.95 million) per piece."

IT publication PC Mag said on Friday a FedEx package to the US that contained a Huawei phone was returned to the UK. An accompanying note explained a US government "issue" with China prevented the delivery.

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