Best Practice for OEMs, distributors and component manufacturers

If you are aware of any additional sources of best practice for detecting and / or mitigating against counterfeit components, please contact us.

There are numerous sources providing sound advice on best practice to be adopted to minimize the threat posed by counterfeit components. These are listed further down this page however the UK Electronics Alliance strongly recommends the following:

Electronics components should be sourced directly from the manufacturer or authorised distributor or, where this is not possible, from grey market operatives (brokers) with a physical operation in the UK. When using the grey market, buyers should insist on documentary evidence of component authenticity and/or an agreement that payment only becomes due after satisfactory verification of the origin of the goods
OEMs should develop and maintain greater co-ordination between product and component lifecycles and implement proactive lifecycle management to reduce the level of short term component purchases, which often necessitate sourcing from the grey market
Component manufacturers should exercise greater control over their sub-contractors to ensure that scrap products, pilot runs and bad yield devices are disposed of beyond use. Component manufacturers should also improve the traceability of their products by the use of unique product identifiers, serial coding and E-marking and by better control of documentation and returns from customers, which must only be accepted in manufacturer’s sealed boxes. Component manufacturers should also be more diligent in ensuring that their authorised distributors end the common practice of purchasing via the grey market when their customers make unrealistic delivery demands
Authorised distributors should continue to maintain and enhance the manufacturers’ traceability documentation, assist in the dissemination of counterfeit product information and physically scrap written-off inventory. Distributors should be more flexible in their willingness to supply smaller quantities, especially where the manufacturer’s minimum shipment multiple is high.

The following is a list of sources of information on best practice to reduce the risk of exposure to counterfeit components:

A Suggested Process for Detecting Counterfeit Components
Paper by David Bernard, Dage Precision Industries and Bob Willis, ASKbobwillis.com - 24 March 2009
Reprinted with permission from SMTA by EMS2007 http://www.ems007.com/pages/zone.cgi?a=48990

AS5553 - Counterfeit Electronic Parts; Avoidance, Detection, Mitigation, and Disposition
Standard by SAE International – April 2009
To order go to http://www.sae.org/technical/standards/AS5553

AS6081 - Counterfeit Electronic Parts; Avoidance Protocol, Distributors
Standard by SAE International Inc.
Currently work in progress - not yet available http://www.sae.org/servlets/productDetail?PROD_TYP=STD&PROD_CD=AS6081&HIER_CD=TEAG19&WIP_SW=YES

AS9120 - Quality management system requirements for stockist distributors
Standard by SAE (Society for Automotive Engineers) International
For information on achieving accreditation go to http://www.bsigroup.co.uk/en/Assessment-and-Certification-services/Management-systems/Standards-and-Schemes/AS9100-9110-9120/?gcid=S17014x011&keyword=as9120

Avoid counterfeit electronics components
Article by James Carbone, Purchasing – 14 June 2007
http://www.purchasing.com/article/CA6450781.html

CCAP101 – Certification for Counterfeit Avoidance
Standard by Components Technology Institute Inc.
Contact for further details by going to http://www.techexpo.com/firms/techasoc.html

Counterfeit electronic components – an overview
Paper by Robert K Lowry, Oneida Research Services Inc. - undated
http://www.ors-labs.com/pdf/MASH07CounterfeitDevice.pdf

Counterfeits continue flooding supply chain
Article by Diane Trommer - 2007
http://www.distributioninsider.eetimes.com/CounterfeitsFloodSupplyChain.jhtml;jsessionid=MM1XWBUFELWZWQSNDLOSKH0CJUNN2JVN

Defending against counterfeit electronic parts and gray market practices
Paper by Rochester Electronics – January 2008
http://www.rocelec.com/downloads/Rochester_Anti-Counterfeit_Paper_Jan2007.pdf

ERAI recommended inspection process
Document by ERAI – April 2009
http://www.erai.com/download.aspx?mode=attachment&file=97297b4c-7a6a-4ae5-aedf-c2ed23243004&id=280&type=file

IDEA-STD-1010 - Acceptability of electronic components distributed in the open market
Standard by the Independent Distrbutors of Electronics Association (IDEA) – October 2006
To order go to http://www.idofea.org/products/52-idea-std-1010-a

NEDA Guidelines for Product Returns
Document by NEDA (National Electronic Distributors Association)
This publication provides clear processes to ensure that product purchased through the authorised channel is legitimate http://www.nedassoc.org/documents/NIGP113_001.pdf

Reliable Electronic Component Supplier's Classification (RECS)
Standard by Chinese Ministry of Industry
RECS is jointly administered by the China Electronic Purchasing Association (CEPA) and the China Quality Association for the Electronics Industry (CQAE) http://www.cepa.org.cn/eng/

The Counterfeit Electronic Components Minefield
Publication by Charles Battersby, Semelab – first published 2008
http://www.cog.org.uk/PDF/booklets/Counterfeit%20Minefield%20Issue%201%20November%202008%20(sample).pdf