BIS studies impact of counterfeit electronics trade
The U.S. Commerce Department’s Bureau of Industry and Security has been asked by the Naval Air Systems Command to assess the scope and impact of counterfeit electronics on U.S. supply chain integrity, defense readiness, and industrial capabilities.
“This study will allow defense and industrial planners to better understand the scope and magnitude of counterfeit electronics and identify actionable solutions for policy makers,” Mario Mancuso, Commerce undersecretary, said in a July 8 statement.
Military and related industrial supply chains are vulnerable to counterfeit electronics that, if undetected, can cause the malfunction and failure of defense systems and critical civilian infrastructures, the agency noted.
The BIS assessment will focus on:
' Quantifying the number of reported counterfeits.
' Documenting industry and government business practices, including procurement processes, which contribute to counterfeit product infiltration.
' Identifying best practices to prevent counterfeit electronics from entering critical supply chains.
A publicly available report with recommendations will be developed from five separate assessments of buyers and sellers in the electronics supply chain, including original component manufacturers, circuit board assemblers, electronic component distributors and brokers and defense prime contractors and subcontractors. The assessments will also examine the Defense Department’s depots, arsenals and procurement operations.
BIS has authority under the 1950 Defense Production Act to survey and assess the financial health and economic competitiveness of U.S. industries that support defense capabilities and requirements.