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Details come to light on Gibson’s Lacey Act Raid

August 12, 2010

I've been waiting for more details on last November's raid by federal authorities on Gibson Guitar's Nashville, Tenn., facilities, which involved claims that wood the plant was using was illegally logged under the new Lacey Act amendments.

This was the first major "bust" associated with the amendments, so there was a pretty big spotlight on it. But information on what was happening was spotty.

Just this week, the U.S. Attorney's Middle District office in Tennessee filed documents to confiscate items it believes are or were made using illegal timber. Those documents detail some of what has been happening.

The documents say that federal law enforcement officials took from Gibson: a pallet of ebony fingerboards, two other pallets of ebony wood products, ebony necks, drying ebony, plus a good many records and six guitars.

Here are the details of the investigation:

In September 2009, U.S. Customs and Border Protection reported to a U.S. Customs and Immigration Enforcement agent the import of a shipment of Madagascar ebony wood at the port of Newark, N.J., from a Germany company called Nagel to Gibson Guitars.

Its import declaration package and invoices were for 5,200 pieces of sawn ebony and 2,133 pieces of sawn Madagascar black ebony, with a total value $76,437.

Gibson had placed the order via Nagel GMBH and Co KG of Hamburg, Germany, which exported the ebony through its affiliate Hunter Trading Corp. of Westport, Conn.

When the wood entered the U.S. en route to Gibson, it was missing the plant products declaration required by the Lacey Act. This looks like it's where Gibson got caught.

When the declaration was made a day later, it was listed as ebony harvested from Madagascar.

Madagascar has had rules in place restricting the harvest and export of ebony and rosewood since 2000. From what I've read, it does authorize some shipments of fallen timber. But mostly, that ebony is illegal timber.

Nagel has been Gibson's exclusive supplier of imported Madagascar ebony since 2006 and continued to import from it after the Lacey Act Amendments came into effect on May 22, 2008.

Nagel purchased the timber from its exclusive supplier of Madagascar timber, Roger Thunam, whose business dealt "almost exclusively in sawn wood or logs which at least as of 2006 were illegal to export from Madagascar," court documents said.

In fact, at the end of one of its footnotes, the U.S. FWS agent discussing Thunam in the court documents says in bold type: Supplier of Madagascar Ebony to Nagel Deals Almost Exclusively in Illegal Ebony.

Bank records indicated that Nagel had exported at least $1.3 million worth of timber between 2005 and 2009 from Thunam.

While Thunam was authorized to export some ebony finished product by Madagascar government officials, he was not authorized to export unfinished, semi-worked or sawn ebony since 2006, court documents indicate.

Those types of wood appear to be the pieces the government is trying to seize, or at least that's my guess.

The U.S. government also couldn't find where Thunam's stock of ebony was registered with the Madagascar government, which keeps records of timber stock and exports. The documents also indicate that Gibson officials were aware that it was illegal to harvest and export ebony and rosewood from Madagascar.

With no species on the import documents - it looks like Gibson might've been a sitting duck here.

Posted by Heath E. Combs on August 12, 2010 | Comments (13)

December 26, 2011
In response to: Details come to light on Gibson’s Lacey Act Raid
lop7693 commented:

Fender uses the same company for their wood and they didn't get raided. Fender is liberal and union, Obama thuggery.


December 3, 2011
In response to: Details come to light on Gibson’s Lacey Act Raid
Steffi commented:

Full of salient points. Don't stop believing or wirnitg!


December 2, 2011
In response to: Details come to light on Gibson’s Lacey Act Raid
Steffie commented:

It's about time smoeone wrote about this.


August 30, 2011
In response to: Details come to light on Gibson’s Lacey Act Raid
Gama Xul commented:

The Feds will claim that Gibson "knew or should have known" about their supplier. This is a classic tactic to charge an entity with conspiracy. But as soon as the U.S. Customs and Border Protection allowed the shipment into the country without confiscation, the US govt. waived their authority to enforce that instance of "so called" illegal activity. So, this raid was groundless, and certainly, no one who purchased guitars from Gibson post the year of 2008 is at fault either.

Also, now that the executive branch (Obama) has told Congress that he doesn't need their permission to start wars, we are in an effective state of dictatorship and taxation without representation. It is our duty to execute full non-compliance against these types of regulations and attacks on private enterprise. And, we have to dissolve this instance of the executive branch and it's orders, as they are illegal.

On another note, yet related:
The Rawesome Foods raid was a direct attack on private contracts, as all their inventory was and still is owned by private individuals. There was no tax to be paid because it was not a store. What we have here is mercenary government thugs following orders without proof of legality. They're like Nazi's, they'll kill you if you stand your ground and they'll probably get a promotion for it.
-Gama Xul


August 28, 2011
In response to: Details come to light on Gibson’s Lacey Act Raid
Woodshedder commented:

It has not been picked up by the main stream media because they are liberal, and biased, and Gibson Guitars has essentially been a supporter of Republicans and conservatives, and anti-Union. Were it the Bush administration, as soon as the hurricane was finished, you'd see it on the Sunday morning talkathons.


August 22, 2010
In response to: Details come to light on Gibson’s Lacey Act Raid
wheres commentz commented:

what is going on with the missing comments in the ft online area?what happened to readers making their ideas known on whats going on and responses to the news they read?
is furn tdy so scared of what the people reading the news want to say ? what is going on here,why no more comments section in the site?


August 13, 2010
In response to: Details come to light on Gibson’s Lacey Act Raid
P. Lowry commented:

Nearly 100% of the ebony (and rosewood) exported from Madagascar is exploited illegally from within officially protected parks and reserves, including several designated as UNESCO World Heritage sites. Thunam is a member of a small, powerful mafia that has been bleeding Madagascar for decades, buying off government officials the whole way, although harvesting has gone on at an unprecedented rate since the current wave of political instability began in February 2009 (for a very detailed analysis, see "Rosewood of Madagascar: Between democracy and conservation" by H. Randriamalala and Z. Liu, recently published in the journal "Madagascar Conservation and Development"). The exploitation of precious hardwoods in Madagascar represents a critical threat to the remaining humid forests in this globally important biodiversity hotspot. Ebony and rosewood are the local equivalent of Africa's blood diamonds.

P. Lowry
Head, Africa and Madagascar Department
Missouri Botanical Garden


August 13, 2010
In response to: Details come to light on Gibson’s Lacey Act Raid
Heath Combs commented:

Bill, after a long lull in coverage of Gibson and the Lacey Act, other than recent announcements about how it would step up efforts to make sure wood is sourced legally, I noticed a piece in the Nashville Business Journal online this week on the subject. It didn't really get into how Gibson was investigated, but focused on what U.S. authorities were seizing.

The U.S. FWS details were a little harder to find because of how the documents were labeled, United States of America Vs. Ebony Wood in Various Forms. Nowhere in that header was Gibson's name, which I thought was a little odd.

I continue to think this is a story well worth following. The Lacey Act is being enforced currently for some, but not all, furniture items. How this Gibson case is handled may be a good indicator for future enforcement cases.


August 13, 2010
In response to: Details come to light on Gibson’s Lacey Act Raid
JORJ commented:

This whole thing is complicated by the fact that Madagascar's government is completely complicit in the illegal logging leading to these illegal shipments of ebony and rosewood. Nonetheless, it is incumbent upon Gibson to do due diligence and not deal with shady importers like Thunam.


August 13, 2010
In response to: Details come to light on Gibson’s Lacey Act Raid
Bill commented:

I find it interesting that this story has essentially surfaced in Furniture Today and not been picked up by the mainstream media. I do remember reading an initial piece in the Tennessean, but I find the whole thing rather odd. Am I missing something here?


August 13, 2010
In response to: Details come to light on Gibson’s Lacey Act Raid
Heath Combs commented:

Can't see the forest for the trees can you fellers?


August 13, 2010
In response to: Details come to light on Gibson’s Lacey Act Raid
quido kobain commented:

your the only one watching this......so what ?


August 13, 2010
In response to: Details come to light on Gibson’s Lacey Act Raid
zebulon toklis 3rd commented:

wow this must mean the 1000 s of grams used in the furniture industry,mostly egypt and turkey,for inlays and tiny little details on very small cabinets,called bone or colored wood to avoid usa border problems,is a huge threat to the future of our furniture industry ebony needs this is real important news ,thanks for such detailed reporting on our behalf we need stories that are this important to read ,after all its ebony and ivory our main stays of woods we use in our industry.

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