Gibson Guitars, what's up?!
Gibson Guitars- who I hold to be an American institution- was raided by armed federal agents last week. This is the second time in 2 years. The company still does not know the basis for the prior raid much less this latest one. Since the true reasons for the raids are sealed there is no rational explanation for this action. Some vague reasons are mentioned such as the wood used for the products was imported from India and Madagascar contrary to laws in those countries. What some are calling grey market ebony. Yet the company claims it has proper documentation for those imports. DOJ suggests Gibson knowingly skirted export laws of those countries. However, those countries are not pursuing legal claims and all impetus for pursuing the action apparently originates from the Dept. of Justice division of environmental law under their interpretation of foreign laws.
Who knows the whole story but the lack of understanding and reasoning coming out of the Justice Dept. is leaving me to think why just Gibson? Many other firms are importing these same products including other music instrument makers.
Gibson. Made in America by skilled craftsmen. Raided by armed agents of the beckoning of the DOJ (Fish and Wildlife Service for crying out loud?). What gives? This continued action by the DOJ could put them out of business. Just a FYI to keep an eye on this story.
its from Fox..so there has to be a political connection
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Is Fed Raid on Gibson Guitar Company Enforcing Policy . . . or a Push to Target 'Made in the USA'?
http://www.foxnews.com/politics/2011...jobs-overseas/
On August 24, armed agents from the U.S. Fish and Wildlife Service and Homeland Security raided the corporate headquarters and two factories of the Gibson Guitar company. The agencies took away 24 pallets of Indian rosewood and ebony, as well as a number of guitars and computer files.
The federal agents’ contention is that Gibson had illegally imported the exotic wood, which is used to make fretboards and bridges for their high-end instruments. Under the 1900 Lacey Act, which was amended in 2008 to include wood products, American companies must abide by the laws of source countries when importing products. The intent of the law is to protect endangered species of wildlife and plants. U.S. Fish and Wildlife claims that the Gibson wood – in the form of fingerboard ‘blanks’ -- was illegal to export from India and therefore illegal to import into the United States.
Now here’s the rub. While the feds say the wood – as imported – is illegal, had it been ‘finished’ by workers in India, it would have been perfectly legal to import. The wood itself was not banned, just the manufacturing process – or lack of it.
“I think they’re taking the position that we should be shifting these jobs overseas,” says Bruce Mitchell, the chief legal counsel for Gibson. “We have – probably 40 people in our factory here just at USA who are doing the inlays into the fingerboard … that are putting the fret on. If all that was to be done over in India, then …. those jobs would be lost.