DFARS Anti-Counterfeiting Rule

Overall Description

The U.S. Department of Defense (DoD) published on May 6, 2014, its rule regarding the “Detection and Avoidance of Counterfeit Electronic Parts.” The rule prescribes the policies and procedures that DoD contractors are to establish and maintain to detect and avoid the introduction of counterfeit electronic parts into the defense supply chain.

How is it affecting the electronics industry?

The rule promotes the buying of electronic components from authorized sources. The DFARS (Defense Federal Acquisition Regulation Supplement) affects all electronic parts that may be acquired by the DoD either through direct purchase or incorporated as components into products sold to DoD.

Does this apply to my company?

The DFARS applies to defense contractors that are subject to the Cost Accounting Standards (CAS) and further provides that these contractors flow-down the requirements to all subcontractors at all tiers without regard to whether the subcontractor itself is subject to CAS or is a commercial item. As a result, electronic component manufacturers and their authorized distributors may expect contractors to flow down the requirements set forth in the DFARS to them.

The authorized supply chain should expect contractors to ask for their counterfeit detection and avoidance policy. This policy should contain provisions regarding traceability, returns, control of obsolete parts, and other processes to abolish counterfeit parts proliferation.

What is ECIA doing about this?

ECIA monitors and informs members about proposed changes to the DFARS that may affect the authorized supply chain. The association works with other associations to coordinate a unified response to proposed rules. ECIA frequently files industry comments during any rule-making proceeding.

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