The standard requires distributors to disclose to customers which lines they are authorized for and which ones they are not.
“It’s putting some teeth in authorized,” Sink says.
To that end, Sink says many distributors are now having excess product ground up and melted down, and getting paid for the raw metals the process yields.
The payment is far less than what you’d get for reselling the product, but Sink says it’s a practice everyone should follow.
Here’s a look at five ways the fight to keep counterfeit components out of the supply channel is evolving. DFARS Update In May, the federal government issued an update to its rules for companies who sell equipment containing electronic components to the federal government.
Known as the Defense Federal Acquisition Regulation Supplement (DFARS), the update addresses new requirements that arose from the National Defense Authorization Act for fiscal years 20 surrounding the detection and avoidance of counterfeit parts.
Sink is a member of standard-setting organization SAE International’s G19 Committee, which works to address prevention, detection, and electronics industry response to the counterfeit threat.
Sink points to the high activity level in preparation for the DFARS update and subsequent quiet period in recent months.Sink also points to a fairly recent proposal to create a standard for original component manufacturers.AS6496 helps clarify the role of the authorized channel—an issue that wasn’t 100% clear to many buyers of electronic components, Sink and others agree.Nonetheless, the path parts follow to get into the hands of counterfeiters is something everyone is taking a closer look at these days.The industry recommendation is that excess inventory should be destroyed so that it can’t fall into the wrong hands and be misrepresented.Essentially, the update tells government contractors what they must do to detect and keep counterfeit parts out of the defense supply chain, and it has direct implications for suppliers of those components.For the most part, the update reflects what the industry expected, so most companies have built their procedures around those expectations, says Kevin Sink, vice president of total quality for authorized distributor TTI Inc.“But it’s only through diligence that they’re making that happen.” Snider agrees that awareness of the counterfeit problem has risen dramatically in the last several years, and he points to recent government actions to highlight the problem as a key reason.New standards and regulations surrounding selling to defense organizations is at the heart of the issue and is driving continued change on the counterfeit front.A host of recent events, including newly released standards and a long-awaited update to the federal government’s requirements for companies who supply equipment containing electronic components to the government, is keeping everyone in the channel on their toes.“Overall, the supply chain is doing a better job of keeping this stuff out as much as they can—out of the end user’s supply chains,” says Mark Snider, president of ERAI, an association representing independent distributors of electronic components.