More on the Gibson raid

[Dave W]

Media Matters has published an article about the raid, with a direct link to the federal affidavit. I'm putting it here with a warning: it discusses Fox News' coverage of events, but we're not going to discuss Fox News. Period. What we do need to look at is the way Henry J. may have misrepresented what the raid was about. Each of you can draw your own conclusions about news coverage (by Fox and others) and whether or not they might have been misled by Gibson.

Gibson Raid story

The real story is what the affidavit actually alleges: that sawn logs of Indian ebony (and later, Indian rosewood) were imported, but were represented to the Indian export authorities as finished guitar parts, represented to US Customs as veneer sheets with a false tariff code to match, and represented as being imported by Luthier's Mercantile (LMII) when in fact they were always headed for Gibson.

Read the affidavit (.pdf)

The story also discusses the raid from a couple of years ago.

Now these are allegations, not proven fact, and we don't know if the US government is properly interpreting Indian laws. But it looks to me like Gibson has severely misrepresented what the raid was about.

[uwe]

Why am I not surprised. So Comrade Obama was after all not trying to run KKKibson and its Grand Wizard Henry J. to the ground. Another conspiracy theory gone awry, poor Americans.

You mean the authorities might have had a case and there is no dark conspiracy cloud looming over this?  You mean Gibson might have done something wrong after all because their internal compliance was non-existent or not up to par?  You mean the fact that Gibson got raided and Ric and Fender not has to nothing to do with how these two companies are ardent communist entities set to destroy the free guitar market in the US?

You mean Gibson got its hands slapped for - at best - sloppy abidance with wood import regulations? How disgustingly banal. There must be something else lurking behind all this.

See, I didn't mention Fox News and Herr Murdoch, that savior of data protection and victims' rights, once.

[dadagoboi]

I, too, am not mentioning FOX.

The affidavit is pretty specific as to what is permitted by Indian law and the definition of a fretboard.  There's a mention of thickness of more than 6mm being prohibited for export.  This might explain all the legal Indian rosewood boards in the US.

Thanks so much for staying on top of this Dave!

[fur85]

Very interesting. Thanks for posting that Dave. Gibson's media blitz only gives their side. FWS doesn't get to go to the media. I think a lot of the media outlets were just being lazy.

I don't think the media efforts will help when the case goes to court and Henry was trying to protect the Gibson brand. If the allegations are proven to be true and Gibson is smuggling illegal, endangered wood, that could really hurt their business and the media blitz could backfire.

[ramone57]

Why am I not surprised. So Comrade Obama was after all not trying to run KKKibson and its Grand Wizard Henry J. to the ground. Another conspiracy theory gone awry, poor Americans.

not so fast, Uwe.  we generally don't let facts stand in the way!   

[OldManC]

Comrade Obama doesn't get off too easily though. Not defending Henry if his actions were as described, but the Justice Department reportedly told Henry he could avoid all this by moving his manufacturing off shore, which indicates the inherent problem with cross border trade and governments who pick and choose who gets hit and who is allowed to fly under the radar (or is granted "waivers").

Note: I'm not slamming open trade or the Obama administration in particular. Every administration does the same thing to one degree or another. It's just makes one cynical to see one group prosecuted while others are ignored or even celebrated in their malfeasance (or given government backed loans with creative ideas on what constitutes repayment).

[dadagoboi]

"...but the Justice Department reportedly told Henry he could avoid all this by moving his manufacturing off shore."

Reported by whom?  I very seriously doubt this is true, if it is I'd sure like to see some corroboration.

[Dave W]

We have no evidence that anyone in the administration suggested that he move Gibson offshore. Henry claims that, but I doubt it, especially since he is misrepresenting the allegations.
I never saw any evidence that this was political, just that the raids looked like overkill.

It's possible that this is all a misunderstanding by Fish and Wildlife of normal procedures. LMII may broker wood imports regularly, for Gibson and others. The mislabeling may just be a clerical error. And remember, there aren't any charges yet, just an investigation.

But now we know exactly what was in the affidavit that led to the raid. And it doesn't match what Henry J. has said publicly about it.

[Pilgrim]

I can see the potential for Gibson to point at the shipper, claiming that the shipment was incorrectly labeled or was cut 4MM too thick...and the potential for ginger-pointing back the other way.

But clearly, sheets of ebony and rosewood are not finished parts, nor are they anything but material which must be re-sawn, shaped, fitted and finished.  It is becoming increasingly difficult to believe that Gibson didn't know of the problems with this purchase and shipment.  Evidently they used another company as a delivery site, which raises the question of whether they did that to provide a "fall guy" to take the hit if the shipment was discovered.

I also have no comment about Fox.  

[uwe]

Thank you Comlade Obama fol blinging Gibson guital manufactule to People's Lepublic!!!



We no have ploblems with Indian wood, just little boldel incidents!!!



Note: Due to change of ownelship, imminent Gibson lelease of Custom Shop Dalai Lama Signatule LP has been put on hold ...

[Highlander]

My middle name is Murdoch and we get a Fox that comes into the garden every so often... Oh yeah, Rupert is a popular bear that wear a black and yellow scarf...

(did I get away with that?)

[the mojo hobo]

The affidavit states that India prohibits exoprt of sawn fretboards nder HS 4407 but Warmoth will build a neck with an "Indian Rosewood" fretboard. Maybe it's the Tennessee office of the FWS that is over-enthusiastic.

Of course it soon won't matter. I did listen to Obama's jobs speech, and he said: "That’s why I ordered a review of all government regulations. So far, we’ve identified over 500 reforms, which will save billions of dollars over the next few years. We should have no more regulation than the health, safety and security of the American people require. Every rule should meet that common-sense test."

So how long will it take to rescind the Lacey Act?

In the meantime, if I were in charge at Gibson I would introduce The All-American Series: Ash and Alder bodies with Maple necks and fretboards. And Red, White and Blue accents, or a flag on the pickguard.

[Psycho Bass Guy]

Maybe it's the Tennessee office of the FWS that is over-enthusiastic.

As I said in the previous thread, Henry made the argument he did because it makes hay in this state and others which view the federal government mostly negatively. The FWS turned a blind eye for decades to fish (and farm animals and arguably people) kills in the Little Pigeon River by dumping from Champion Paper Company in Canton, North Carolina because the poor farmers around Newport didn't have much of a voice in Nashville or Washington. I know our current governor personally and it disgusts me to see such a good man who was such a stellar mayor of Knoxville fall into the national Republican party's sphere of influence because he's being prepped for a presidential run by the same type of folks who write news releases tailored for Fox News. I repeat, Tennessee is so damn Republican it can't stand itself, and party antipathy extends across the board.  A "motivated" (especially partisan) federal regulator who has no real grounds for raiding such a high-profile business just doesn't exist.    

[dadagoboi]

The affidavit states that India prohibits exoprt of sawn fretboards nder HS 4407 but Warmoth will build a neck with an "Indian Rosewood" fretboard. Maybe it's the Tennessee office of the FWS that is over-enthusiastic.

The affidavit says more than once that India permits exports of veneer less than 6mm thick.  That's what Gibson claimed they were receiving and was described incorrectly in the shipping documents.

[Dave W]

The affidavit states that India prohibits exoprt of sawn fretboards nder HS 4407 but Warmoth will build a neck with an "Indian Rosewood" fretboard. Maybe it's the Tennessee office of the FWS that is over-enthusiastic.

This case originated in Texas, and I suspect the agents who handle international shipments aren't the same people who handle in-state matters.

Re Warmoth's website, either they have wood of the same species but grown elsewhere, or they have stocks of wood from before India prohibited export in 2009. The same probably goes for anyone else claiming to sell Indian rosewood boards.

Of course it soon won't matter. I did listen to Obama's jobs speech, and he said: "That’s why I ordered a review of all government regulations. So far, we’ve identified over 500 reforms, which will save billions of dollars over the next few years. We should have no more regulation than the health, safety and security of the American people require. Every rule should meet that common-sense test."

So how long will it take to rescind the Lacey Act?

The Lacey Act isn't costing any jobs, no matter what Henry says, and it had broad bipartisan support. That doesn't make it good or bad, of course, but if another country prohibits exporting a wood, I don't see how it's a problem to tell a US company that they can't disregard the other country's law.