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Gibson Guitar to fight U.S. probe of its wood imports

CHICAGO | Thu Aug 25, 2011 5:27pm EDT

CHICAGO (Reuters) - Gibson Guitar Corp's chief executive said on Thursday he would fight a federal investigation of the legendary guitar maker's wood imports after agents raided the company for the second time in two years.

Federal agents raided Gibson facilities in Nashville and Memphis, Tennessee, on Wednesday, seizing wood imported from India, and workers were sent home.

In an affidavit, authorities indicated they are weighing charges against the company or its executives for illegally importing wood under a U.S. law barring importation of endangered plants and woods. The company has sued to recover its property.

"Gibson has complied with foreign laws and believes it is innocent of any wrong doing," Chief Executive Officer Henry Juszkiewicz said in a statement. "We will fight aggressively to prove our innocence."

Juszkiewicz said the company, which began more than a century ago and makes some of the world's most prized guitars, has worked with environmental groups such as the Rainforest Alliance to ensure its wood imports are from sustainable sources.

"(The government) has suggested that the use of wood from India that is not finished by Indian workers is illegal, not because of U.S. law, but because it is the Justice Department's interpretation of a law in India," Juszkiewicz said.

If the same wood from the same tree was finished by Indian workers, the material would be legal, he said.

In an affidavit, agent John Rayfield of the U.S. Fish and Wildlife Service said U.S. Customs agents in June detained a shipment of sawn ebony logs from India.

The paperwork accompanying the shipment identified it fraudulently as Indian ebony fingerboards for guitars and it did not say it was going to Gibson, the affidavit said.

In July, agents observed Indian ebony and rosewood delivered to a storage facility for Gibson, according to the affidavit, which asked permission to seize Gibson's business computers.

Gibson plants also were raided in 2009, when agents confiscated ebony imported from Madagascar.

(Reporting by Andrew Stern; Editing by Bill Trott)

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Comments (4)
NeoSlave wrote:
For them to spend even a single dime of my hard earned money on nonsense like this is beyond the pale!!

Only in the insane world of the left could something like this ever happen.

Keep your hands in car at all times and hang on – we are in for a bumpy ride (1917 Bolshevik revolution style)!!!

Aug 26, 2011 1:19pm EDT  --  Report as abuse
screennamed wrote:
NeoSlave…one thing we can always count on everytime a conservative opens his mouth is that ignorance will surely spill out. “Insane world of the left”? The artcle above was brought to you via the Lacey Act, amended and signed by no other than your very own GEORGE W BUSH.

And they let people like you vote.

Aug 26, 2011 5:13pm EDT  --  Report as abuse
StateRights wrote:
@screennamed – Your blanket comment about conservatives makes you sound like you are unable to argue a point intellectually.
Because an ammendment is signed by the ‘left’ or ‘right’ doesnt make it right or wrong.
—–
This could be the result of a big labor power grab. Also, the Lacey act sounds like federal overreach. I wonder how many tax dollars are spent enforcing laws in other countries.

Here is an excerpt from the Lacey Act FAQ -
“The Lacey Act now makes it unlawful to import, export, transport, sell, receive, acquire, or purchase in interstate or foreign commerce any plant, … in violation of the laws of the United States, a State, an Indian tribe, or any foreign law that protects plants or that regulates certain plant related offenses.” http://www.aphis.usda.gov/plant_health/lacey_act/downloads/faq.pdf

Aug 29, 2011 6:57pm EDT  --  Report as abuse
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