FOR IMMEDIATE RELEASE                                                   CIV
FRIDAY, JANUARY 27, 1995                                     (202) 616-2765
                                                         TDD (202) 514-1888
                                     
                FEDERAL EXPRESS WILL PAY U.S. $1.1 MILLION
                  TO SETTLE INTERNATIONAL SHIPMENT CLAIMS

     WASHINGTON, D.C. -- Federal Express Corporation will pay the
United States $1.1 million to settle allegations it failed to pay
$239,000 in duties on 1,300 shipments of foreign merchandise that
passed through its Memphis, Tennessee, hub from January 1987
through January 1989, the Department of Justice announced today.
     The Department said Federal Express also processed the
shipments without receiving the required clearance from the
United States Customs Service.  There are several statutes
requiring a shipper to disclose and identify goods imported into
the United Sates and provide the information to the Customs
Service, the Department said.
     The merchandise included such items as textiles, jewelry and
electronic, medical, watch and motor vehicle parts.
     Auditors from the Customs Service discovered the
irregularities and, in a subsequent investigation, Customs
confirmed that Federal Express knew about the violations but
failed to correct the problem or notify the United States, the
Department said.  Today's settlement resolves Federal Express'
potential liability.  
                                   #####
95-048