Update: Gibson Case Sets Precedent for Lacey Act Enforcement (investigation resolved)
Gibson Case Sets Precedent for Lacey Act Enforcement
The investigation into whether Gibson Guitar violated the Lacey Act has been resolved, leaving some lessons for the forest products industry.
The U.S. Department of Justice’s (DOJ) recently resolved a high-profile case involving alleged violations of the Lacey Act by Gibson Guitar Corp. Federal authorities claimed that the guitar maker illegally purchased and imported rosewood ebony wood. Gibson recently settled with the government to avoid a costly trial although the company denied any wrongdoing. This case brought national attention to something that the wood products industry has known for a long time – regulating foreign wood products is not an easy task. But now that it is over, many in the industry are left wondering what repercussions could come from this case.
The Gibson investigation has caused some uncertainty over how the Lacey Act applies in different situations and what steps the government expects companies to take to ensure the legality of imported wood products that they receive. The Lacey Act, which is intended to protect endangered species and prohibits the trade of goods that are illegally obtained, was amended in 2008 to include logs and wood products under the regulated goods.
According to the agreement signed between the DOJ and the guitar company, Gibson was sourcing wood products that are used in manufacturing its renowned guitars through a company based in Germany. Rather than personally ensuring that the wood it was purchasing through this supplier was legally harvested, Gibson relied on the fact that the supplier was an established Forest Stewardship Council (FSC) chain of custody certified supplier.
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Gibson officials maintain that the company did nothing criminally wrong, simply that it could have done better and that there is always room for improvement. Gibson will not face criminal charges, but will pay a penalty of $300,000, a service payment of $50,000 to the National Fish and Wildlife Foundation and withdraw its claims to almost $262,000 worth of seized wood products. In addition, the company has agreed to implement a compliance program designed to ensure the legality of its imported wood products.
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