Current customs and import controls are failing to tackle the rising numbers of counterfeit components entering the UK, says industry body Intellect.

"It is important is recognition of the threat posed by counterfeit components to the UK electronics sector," said Henry Parker, programme manager for technology markets at industry lobbyist Intellect.

"Current measures are doing little to stem what is becoming an increasing tide of cleverly disguised counterfeits, often from China and Eastern Europe, that are increasing costs for EMS companies,"

The increasing volume of counterfeit components in the supply chain has also been identified as a problem by component distribution organisation Afdec. "There is real concern in the supply network about the increasing prevalence of counterfeit components within the supply network," said Adam Fletcher, chairman of Afdec.

Intellect is pressing for the authorities to follow the US which is trying to tackle the problem.

"The US has already recognised the threat posed and taken active measures to address it. These measures have already intercepted $70m worth of counterfeits," said Parker.

"The UK would do well to follow the US example and engage with industry to tackle the problem," said Parker.

However, when EW contacted a number of distributors they all played down the threat from counterfeit components.

According to the head of a major UK distributor: "There have always been counterfeit parts in the supply chain, we do not see a significantly bigger threat today than in the past."

The worry is any increase in the number of counterfeit components in the supply change will add further price pressure on a UK components market which has been contracting in four of the last six years.

Fletcher believes the resulting price erosion and the weak dollar will cause the distribution market to decline by 1.8 per cent in 2008.