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