We talked to LMI this morning, and their view is the actual news gatherers at Fox are doing a fine job, but the editors and on-air talent is adding a lot of bulls#!t that has nothing to do with reality. Which is par for the course, of course, and ends up meaning that the stories going out on air should be treated with extreme caution.
On the other hand, the folks at FWS HAVE informed them that any Indian rosewood over 6mm is illegal, never mind that the government of Indian disagrees. In the even, this only effects fingerboards and bridge blanks, and does not effect backs and sides. But I am quite certain that, given a single court hearing, the FWS interpretation will be rejected on site. Certainly, NAMM is going to be sending a bunch of members out to lobby congress.
The big problem with all this is that Indian is the country with the best record of sustainable forestry anywhere in the world, and they do an exceptional job of ensuring that as much labor as possible is kept in country. Which is to say, they are doing things are right as can be, and FWS interpretation of Indian law is penalizing them for doing things right. India is a perfect example of how the logging industry SHOULD work (creating a market for the project, thus encouraging the natives to maintain and preserve the forests), but it is important to note that it works so well there because there are a great number of regulations in place to maintain the system. One thing it is NOT is a unregulated "free" market, so it isn't much of a Tea Party ideal to be sure.
But as for this costing Gibson "millions of dollars" in business, I very much doubt it. They don't make THAT many guitars in a day, not at that factory, and it isn't like FWS took everything they had there. They were back at work the next day, and if they had played by the rules with the Madagascar rosewood in 2009 (which was, without doubt, illegal wood), they wouldn't be having this problem. Buying any wood from Madagascar is illegal these days, but even if it wasn't it would still be immoral. They don't have a government, they have a criminal conspiracy.
Gabriel