Counterfeit electronic components are entering the UK market in huge numbers, costing the economy an estimated £1bn a year, according to the UK Electronics Alliance (UKEA).
The UKEA, which represents over 13,000 companies, has called on government to combat this problem by increasing the amount of resources put into detection and prevention, introducing tougher penalties for those caught with counterfeit goods.
“Counterfeiting has hit UK electronics manufacturing hard. We urgently need to give our manufacturers more protection against the threat. We fully accept that industry has a self-policing role to play, and that combating counterfeiting is very difficult. However, the government must also do all it can to help us,” said Henry Parker, electronics manager from UKEA member association Intellect.
According to UKEA estimates, the UK has only two HM Revenue & Customs (HMRC) officers directly responsible for intercepting counterfeit goods coming into the UK.
“We believe that Britain must follow the lead set by European Parliament and the US Customs Service and more resource must be allocated to HMRC, so that it can effectively enforce legislation already in place,” said the UKEA.
“A full review of whether successful additional measures already enacted by the U.S. can be applied in the UK should be also be held,” added the report.
Adam Fletcher, chairman of component distributor association Afdec believes that the problem will take years to tackle.
“Driving producers of counterfeit components out of the supply network will probably take at least five years and is reliant on our industry collaborating well, regulating itself better and gaining international government and their agencies support,” said Fletcher.
The rising tide of counterfeit components is causing manufacturers to tighten their grip on the supply chain. Many are recommending that customers only buy from authorised sources. But is this the new commercial reality or an over-simplification? Can the market really exist on authorised-only sources? Asks Edmund Coady of Charcroft.