Checklist of Key Best Practices for Mitigating the Risk of Counterfeits
D Provide institutionalized policies and procedures on how to avoid and handle counterfeit components.
D Provide clear written guidance on
how to test, handle, and track incoming and outgoing parts and how to manage and dispose of suspected counterfeits.
D Maintain a register of approved
suppliers.
D Purchase electronic components through reputable distributors with stringent quality-control procedures.
D Determine if a distributor is
certified by ISO (ISO 9001:2000), SAE International (AS9120), and Electrostatic Discharge Associa- tion (ESD S-2020-2007).
D Determine if a distributor follows
IDEA-STD-1010-A inspection techniques for counterfeit detection.
D Determine if a distributor has CTI
CCAP-101 certification for coun- terfeit avoidance and detection.
D Determine if a distributor has
memberships in leading trade organizations such as IDEA and ERAI.
D Determine if a distributor uses
escrow accounts and offers prod- uct warranties.
D Review the distributor's past busi-
ness practices, request letters of recommendation, and schedule on-site visits.
D Determine if a distributor offers potential buyers enough time to carefully inspect or test compo- nent lots prior to final payment.
D Check with the Better Business
Bureau or similar organizations to assess whether a distributor uses ethical business practices.
D Before trading with an unknown
supplier, check trade references.
D Build strong relationships with suppliers you trust.
D Specify a preference to procure directly from OCMs or authorized distributors.
D When possible, buy parts directly from OCMs and their authorized distributors.
D Require supply chain traceability to the OCM or after-market manufacturer.
D Require suppliers to trace parts back to OCMs in order to prove part authenticity.
D Require suppliers to provide proof of a valid OCM warranty.
D Specify quality requirements in contracts and purchase orders intended to minimize the risk of being provided counterfeit parts.
D Visit or audit potential suppliers to
verify their quality practices, including their ability to perform authenticity testing, ensure compliant parts, and identify and block counterfeit parts.
D Periodically test components to confirm that they meet or exceed OEM specifications.
D Verify how the components were
handled, stored, and shipped.
D Confirm that suppliers use effec- tive counterfeit avoidance policies and practices.
D Ensure that suppliers maintain effective processes for mitigating the risks of buying and selling counterfeit parts.
D Assess potential sources to
determine the risk of receiving counterfeit parts.
D Communicate with suppliers,
monitor supplier performance, and provide feedback to suppliers.
D Require independent third-party
inspection and testing.
D Avoid buying batches of compo- nents with different colors, dates, or batch codes.
D Use contractual clauses that help protect the buyer from counterfeit parts.
D Train all employees who handle electronic parts (including pur- chasing, quality assurance, and receiving personnel) on how to inspect parts and identify possible counterfeits.
D Conduct training and increase
awareness about counterfeit risks and risk mitigation.
Notes: CCAP = Counterfeit Components Avoidance Program, CTI = Components Technology Institute, ERAI = Electronic Resellers
Association, Inc., and IDEA = Independent Distributors of Electronics Association.
Other sources of information: Aerospace Industries Association's Counterfeit Integrated Project Team, Coalition Against Counterfeiting and Piracy, Government Electronics and Information Technology Association, and National Electronics Distributors Association.
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