I think one of the key points is that this is not based on a law on our books, but rather our enforcements interpretation of the meaning of another countries laws, and a lot of ambiguity in what that law allows.
IMO, if the material Gibson imported from India violates India law, they should address the Indian company that exported it. If a foreign country specs out something from your company that violates your countries laws, you should not take or fill the order. I'm not saying that Gibson was not aware of the law and may have been aware that they were in the grey area of differing interpretations, but the source company should be crystal clear about what it can and cannot do under it's own laws.
In this particular case they are talking about the differences in "sawn wood" which some people might term as, for example 4/4, rough sawn wood, rough raw wood. From what I understand, Gibson was purchasing wood that was milled to the approximate sizes they need for fretboards, however, they were not made into fretboards, as there are many variations in radius, nut/bridge width, etc that are not done to the fretboard until after the neck is assembled. If the law were to be interpreted as they are saying now, it would be impossible to have an instrument from many of our prominent high end "Made In America" companies using many of the tonewoods that have made them and their sounds so widely coveted, as well as taking away the ability to make custom instruments to the client's desires (go ahead and talk to pro guitarist about fingerboard radius and try and get a consensus...)
At the same time, there are cases of "products" that are nothing more than dimensional lumber with a groove milled into one corner being imported as "finished" to get around these laws.
The whole thing is a big gray area, involving different countries, different laws, different interpretations of those laws, and what appears to be selective enforcement of the laws with certain high profile parties.
And Steve, according to the Government officials involved, if Gibson had their fretboards completely finished in India they would be in compliance with Lacey, but they cannot say for sure what "finished" means. Do the Indian workers need to size and radius the boards? Slot them for the frets? Drill out marker dots? Apply any finish to the wood? They don't know where to draw the line, and almost none of the options would allow the instrument to remain "Made In America".