Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News Editorials & Other Articles General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

ToxMarz

(2,861 posts)
16. Found a long (AI) answer
Mon Feb 23, 2026, 10:00 PM
8 hrs ago

Here is why they are filing the lawsuit themselves despite passing costs to customers:
Legal Standing: Under U.S. trade law, only the party that actually paid the government—the Importer of Record—has the legal standing to demand a refund. Because FedEx’s logistics arm often formally "entered" the goods into the U.S., they are the only entity the government recognizes as the payer.
Administrative Responsibility: FedEx frequently uses its own funds to pay duties at the border to ensure packages aren't delayed. While they then invoice the shipper or recipient to get that money back, the original transaction was between FedEx and U.S. Customs and Border Protection (CBP).
Corporate Rights: In its February 23, 2026, filing, FedEx explicitly stated it is taking action to "protect the company's rights as an importer of record".
The "Pass-Through" Problem: Whether FedEx will eventually pass these refunds back to their customers is a major point of debate. Currently, there is no legal requirement for them to do so, and some lawmakers are already calling for legislation to ensure consumers get their share.
In short: FedEx is acting as the "legal owner" of the payment, regardless of who they billed later. If the government owes a refund, it goes to the person who signed the check at the border—which, for millions of packages, was FedEx.

Recommendations

0 members have recommended this reply (displayed in chronological order):

When we absolutely positively have to have it back /nt bucolic_frolic 12 hrs ago #1
Pamela Jo is going to be busy. underpants 12 hrs ago #2
Love it. efhmc 12 hrs ago #3
After which they'll refund consumers for any costs they passed on BWdem4life 11 hrs ago #4
Well they should because in most cases FedEx didn't pay the tariffs, their customers did VMA131Marine 10 hrs ago #9
Let the lawsuits begin Bluetus 9 hrs ago #15
I think we should demand consumer refunds, ala Gov Pritzker delisen 10 hrs ago #5
I so agree with you, delisen! slightlv 9 hrs ago #13
they deliver twodogsbarking 10 hrs ago #6
Why would FedEx pay tariffs, importers pay them on the goods not the shipping. ToxMarz 10 hrs ago #7
Unless Fedex is receiving the goods at port of entry and have to make the payments then. erronis 10 hrs ago #8
When the tariffs aren't pre-paid by the shipper ... VMA131Marine 10 hrs ago #10
I finally found a link to the suit and added to the OP - BumRushDaShow 9 hrs ago #12
Found a long (AI) answer ToxMarz 8 hrs ago #16
If FedEx doesn't pass the refunds back to the recipient VMA131Marine 7 hrs ago #18
No, not at all. VMA131Marine 8 hrs ago #17
What I posted was referenced directly from the lawsuit BumRushDaShow 2 hrs ago #19
Imagine how confused the average thumb-sucking RWNJ will be when they hear about this case AZJonnie 10 hrs ago #11
I want my share! BadgerMom 9 hrs ago #14
One of their CEOs was rabidly pro-tRUMP wolfie001 27 min ago #20
Latest Discussions»Latest Breaking News»FedEx sues for refund of ...»Reply #16