FedEx Refuses to Deliver Huawei Smartphone Headed to US From UK

Posted June 26, 2019

In a complaint that doesn't specifically mention Huawei, FedEx claims that requiring the carrier to police packages headed to companies on the so-called Entity List is a violation of the carrier's rights to due process. "FedEx is a transportation company, not a law enforcement agency", the company said in a statement Monday. FedEx claims that the US Export Administration Regulations "violate its carrier right by making them liable for deliveries". The delivery company goes on to say that the regulations as they now stand "essentially deputize [s] FedEx to police the contents of the millions of packages it ships daily even though doing so is a virtually impossible task, logistically, economically, and in many cases, legally".

FedEx had apologized saying it was an "operational error" after PC Magazine, an American computer magazine, said on Friday FedEx refused to ship the phone. A large note was slapped onto the package, which contained the Huawei phone that read “parcel returned by FedEx, Due U.S. Government issue with Huawei and China government.

We've contacted FedEx's main media relations team, but they haven't been able to come up with any further explanation. Huawei's spokesman then said the incident had "undermined their confidence" in the US-based shipping company.

"FedEx can accept and transport all Huawei products except for any shipments addressed to listed Huawei entities on the US Entity List", FedEx said in a statement cited by the newspaper.

FedEx says that doing so is both legally and logistically impossible. To offset its financial loss, Huawei said that it will do what it can to gain 50% market share in China over the next year.

The incident comes just weeks after China announced it was investigating FedEx for "wrongful" deliveries. It is ridiculous why FedEx would do this yet Huawei P30 Pro and other Huawei devices are selling on Amazon's U.S. website. China's Ministry of Commerce is now compiling a list of "unreliable foreign entities", comparable to the U.S. Commerce Department's Entity List. Huawei says it provided all the necessary information it was asked to regarding the equipment, and that it was discovered Huawei didn't need an export license according to the US Export Administration Regulations.

Huawei is on the Trump administration's trade blacklist (by executive order) after the administration deemed it a national security threat, which means us companies may not use Huawei's technology.

In a statement to NPR on Tuesday, the Commerce Department said: "We have not yet reviewed the complaint, but nevertheless look forward to defending Commerce's role in protecting USA national security".