FedEx lawsuit says EAR violates common carrier status

Express carrier giant argues when it comes to compliance with the Export Administration Regulations that it’s “a transportation company, not a law enforcement agency.”

FedEx lawsuit says EAR violates common carrier status

Express carrier giant argues when it comes to compliance with the Export Administration Regulations that it’s “a transportation company, not a law enforcement agency.”

FedEx lawsuit says EAR violates common carrier status

Express carrier giant argues when it comes to compliance with the Export Administration Regulations that it’s “a transportation company, not a law enforcement agency.”

 

   FedEx Corp. on Monday filed a lawsuit in U.S. District Court in the District of Columbia against the Commerce Department for enforcing export control regulations against the global express carrier.
    Specifically, FedEx said the Export Administration Regulations (EAR) violate common carriers’ rights to due process under the Fifth Amendment of the U.S. Constitution since they “unreasonably hold common carriers strictly liable for shipments that may violate the EAR without requiring evidence that the carriers had knowledge of any violations.”
    “This puts an impossible burden on a common carrier such as FedEx to know the origin and technological makeup of the contents of all the shipments it handles and whether they comply with the EAR,” the company said in a statement regarding the lawsuit.
    The case follows FedEx’s recent refusal to ship a Huawei mobile phone from Britain to the U.S. The Chinese government has criticized the express carrier for the incident.

   The Trump administration’s recent crackdown on the Chinese telecom Huawei Technologies Co. Ltd. for its alleged U.S. export control regulations violations and recent inclusion, along with 68 overseas affiliates, on the Commerce Department’s Entity List has compounded the export compliance quandary in which many U.S. companies now find themselves.
    FedEx said it “strongly supports the objectives of U.S. export control laws” and has “invested heavily in our internal export control compliance program.”
    “However, we believe that the EAR, as currently constructed and implemented, place an unreasonable burden on FedEx to police the millions of shipments that transit our network every day,” the company added. “FedEx is a transportation company, not a law enforcement agency.”   

The strategy of only relying on unilateral pressure is causing a lot of collateral damage in the United States and elsewhere. We should stop bashing our allies, threatening tariffs with them [and] collaborate with them.

Drewry’s World Container Index, a composite of container freight rates on eight major routes to and from the U.S., Europe and Asia, was down 1.4% to $1,351.15 per 40-foot container as of June 13.

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FedEx lawsuit says EAR violates common carrier status

Express carrier giant argues when it comes to compliance with the Export Administration Regulations that it’s “a transportation company, not a law enforcement agency.”

Jun 25, 2019 on Dec 27, 2018AmericanShipper.com

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FedEx lawsuit says EAR violates common carrier status

Express carrier giant argues when it comes to compliance with the Export Administration Regulations that it’s “a transportation company, not a law enforcement agency.”

Jun 25, 2019 on Dec 27, 2018AmericanShipper.com