Enforcing other country’s laws in the US

Another report on Gibson guitars in the Economist (Sept 3, 2011) describes the rosewood related production shutdown at Gibson guitars that we discussed earlier. But it claims that US manufacturers have to abide by every plant and wildlife regulation set by any country. Companies claiming they did not know of a regulation are not allowed to use it as an excuse. Even if the country that has the law but does not enforce it in their country, it would be enforced in the US. Gibson’s experience with improting ebony imported from Madagascar, which permitted those exports were legal, but were still impounded by US agents. Should the US Fish and Wildlife Service focus on enforcing other countries laws ? Should companies be allowed to provide legal documentation from the source country as proof ? Is impouding the inventory the best way to manage supply chain impact ?

About aviyer2010

Professor
This entry was posted in Global Contexts, Operations Management, Supply Chain Issues, Sustainability and tagged , , , , , . Bookmark the permalink.

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