FedEx rejects package with Huawei handset sent to US

Bloomberg

FedEx Corp rejected a package containing a Huawei Technologies Co phone being sent from the UK to the US in what the mail company says was a mistake, which has elevated beyond routine because of President Donald Trump’s decree in May that limits trade with the Chinese technology company.
The phone was being sent to a PCMag.com phone analyst, who posted a tweet about the package being sent back and containing a label that said FedEx rejected the parcel “due to US government issue with Huawei and the China government.”
FedEx confirmed it was sent back to the shipper, but said the label giving the reason wasn’t from FedEx and probably
was written by a third-party handler.
The error may have been insignificant if not for the tensions between the US and China after Trump slapped tariffs on Chinese goods and barred selective trade with Huawei on the grounds of protecting US national security. Huawei has said the restrictions may cost it $30 billion of revenue.
The phone wasn’t new and was being sent by a writer for PCMag.com in the UK to Sasha Segan, who writes reviews on phones for the online publication, according to the tweet.
“The package in question was mistakenly returned to the shipper, and we apologise for this operational error,” FedEx said in a statement.
“As a global company that moves 15 million shipments each day, we are committed to compliance with all rules and regulations and minimising impact to our customers as we adjust our operations to comply with a dynamic US regulatory environment.”
Earlier this month, FedEx apologised for delivery errors on Huawei packages following reports that parcels were returned to senders, and China’s biggest tech company said it’s reviewing its relationship with the US delivery service.
Two packages containing documents being shipped to the company in China from Japan were diverted to the US without authorisation, Reuters reported.
China ratcheted up tensions later by saying it was drawing up a list of “unreliable entities” that harm the interests of Chinese companies.
This latest mistake didn’t involve Huawei directly, but underscores how a complicated US legal decree that took effect in May makes it difficult for FedEx’s thousands of employees who handle millions of packages to know how to interpret the new regulations.
FedEx clarified that it “can accept and transport all Huawei products except for any shipments to listed Huawei entities on the US Entity List.”
United Parcel Service Inc in an emailed statement said it hasn’t had any unusual issues with the Huawei decree.