Gibson Guitar Corp., a big user of ebony and other scarce woods, for years has allied itself with Greenpeace and other environmental groups to show it was serious about preserving forests.
That didn't stop the Nashville-based company, whose guitars are used by such musicians as B.B. King and Angus Young of AC/DC, from running afoul of U.S. authorities over allegedly illegal imports of wood. Though no charges have been filed, Gibson factories have been raided twice, most recently last week, by federal agents who say ebony exported from India to Gibson was "fraudulently" labeled to conceal a contravention of Indian export law.
Henry Juszkiewicz, chief executive officer of the closely held company, said in an interview that a broker probably made a mistake in labeling the goods but that the sale was legal and approved by Indian authorities.
Gibson's predicament, which raises concerns for musical instrument makers and other importers of wood, illustrates the pitfalls of complying with U.S. law while dealing with middlemen in faraway countries whose legal systems can be murky.
The law ensnaring Gibson is the Lacey Act of 1900, originally passed to regulate trade in bird feathers used for hats and amended in 2008 to cover wood and other plant products. It requires companies to make detailed disclosures about wood imports and bars the purchase of goods exported in violation of a foreign country's laws.
Leonard Krause, a consultant in Eugene, Ore., who advises companies on complying with the Lacey Act, is telling clients they should hire lawyers in countries where they obtain products. "How many people know the statutes in India?" Mr. Krause said. "The net effect is that it raises everybody's cost of doing business.".......................
