Counterfeit products - Combating Grey Imports

With an estimated £30 million worth of counterfeit electrical products reaching the UK annually, combating the devious 'masterminds' behind them is a serious issue.

The manufacture, distribution and retailing of counterfeit electrical products - 'copy cats', forgeries, grey imports - is an insidious, sizeable 'business'.

The consequences of counterfeit electrical accessories entering the supply chain are damaging. Loss of revenue and reputation for manufacturers. For consumers it's safety - these inferior quality products could cause fires, explosions, injuries/fatalities. While reputations of electrical wholesalers, contractors and specifiers are at stake if counterfeit products not meeting the required standards are supplied/installed.

Positive action

BEAMA Installation has been successful with its anti-counterfeiting drive. Working with European Federation Orgalime, it encourages co-operation between the EU and other countries to stamp out counterfeiting.

There are also moves to join up with ANIE, the Italian Federation, in a joint project against counterfeiters. Bticino, Italy's largest manufacturer of accessories has already joined the raid action.

Our working group has masterminded direct activity in China, Dubai, Qatar and Yemen, and advised members on activity in Oman, Nigeria and Kenya. However, more action and controls by inspection firms and governments is essential.

While free trade zones (eg in the Gulf) are very useful for facilitating trade in products, WTO agreements (including TRIPS) still apply. These free zones must avoid becoming clearing houses for dangerous counterfeits.

Smuggled, low price counterfeit goods also mean significant loss of revenue for countries with import tariffs. Reduced prices and duties arising from copied electrical accessories impact on countries' economies.

Despite the efforts of Chinese trading standards authorities supporting anti-counterfeiting initiatives, China is still a problem area.

95% of counterfeit products that potentially could kill are made there.

China must deal more effectively with the culture, which creates the counterfeit problem. Stricter penalties and inspection procedures need extending to counter copied products using apparently reputable brand names and country of origin markings.

A permanent 'electric dragon' campaign is now in place. Working with the Chinese authorities over 100 illegal factories producing counterfeit electrical products have been raided.

Over 5 million counterfeit products have been discovered, plus moulds and printing templates being destroyed. In one factory, 280,000 counterfeit electrical accessories (bearing a renowned BEAMAInstallation member brand) were seized. In another, 118,000 switches with another member's brand.

A Chinese export commodities fair revealed hundreds of stands alarmingly - and openly - displaying counterfeit electrical installation products. Our report to the Fair Complaints Office resulted in stands being raided.
Recent months have seen products valuing $1.25+ million at counterfeit prices being seized.

In recent weeks interest in 'electric dragon' has grown. Italian, French, American, Canadian and Australian associations have expressed strong interest in joining the campaign.

In Kenya, seized containers of counterfeit electrical products have been destroyed. While Yemen has seen a huge reduction in counterfeit products finding their way onto the marketplace. The largest distributor reports a massive upturn in business concerning

genuine products.

It's not just UK brands - all well-known brands are targets. For example, 70,000 copy-cat Italian style socket-outlets and 80,000 American made circuit breakers have been found by 'accident' during raids.

Throughout the Middle East, BEAMAInstallation-designed anti-counterfeiting posters are appearing in every electrical shop in Qatar, through work with the local authorities and Qatar's Ministry of Economics and Commerce.
The message: counterfeit products are dangerous and it is a criminal offence to trade in them.

Our hard-hitting 'Counterfeit Kills' film, available on CD world-wide, plays a pivotal part in the fight against the large-scale manufacture of counterfeit products.
These are not just threatening jobs and eroding market share of bona fide British electrical installation manufacturers,

but are often such poor quality that they are potentially lethal. For example, in Dubai, potentially lethal 'circuit breakers,' which are just push button switches, and in Yemen 600A 'fuses' with copper straps instead of fuse elements, were discovered.

The film is used in presentations to UK wholesalers and contractors.
The sequel will stress the specific responsibilities of the key players in the supply chain.

Everyone in the supply chain must ensure the authenticity of the products they buy or install. The alternative could be extremely costly to them - and kill their customers. A new European Directive seeks to enforce intellectual property rights with retailers facing jail for knowingly selling counterfeit or copied goods.

Manufacturers should register their logo and brand. Country of origin and brand name should be stamped - embossed is more effective - on the products. This ensures crucial evidence if counterfeit tooling is discovered. Products with branded adhesive labels are no deterrent.

If anyone doubts a product's authenticity they should immediately check with the manufacturer. Products should only be purchased from an authorised supplier/distributor, and that's where electrical wholesalers can play a big part by being especially vigilant.

The responsibility for ensuring that only genuine quality products are used lies with all those specifying, purchasing and installing electrical equipment.
Our association's campaign aims to stem the flow of counterfeit products at source - in the marketplace and transit. To ensure the UK and European markets do not suffer from a flood of these dangerous products as has happened elsewhere.

We urge all manufacturers affected by this illegal trade to join with us and take group action. Governments should empower whatever controls they have to be effective, before someone is killed.

There are huge safety and moral issues here. No action is not an option -

COUNTERFEIT KILLS

About BEAMAInstallation

· Part of BEAMA - the association for the British electrotechnical industry.

· UK's trade body for manufacturers of electrical installation and cable management products.

· Plays a potent part in the war against product counterfeiters.

· Promotes and advances interests of its members, provides contacts, information, advice.

· Members turnover is more than £900 million; 25% is exports.

· Represented on committees/councils and seeks points of contact between industry and government departments, European Union and major users. These contacts are used to represent the collective view of the industry on safety legislation, EU directives, environmental issues, market intelligence etc..

· Director Dave Dossett is also chief executive of BEAMA and vice chairman on the Board of Orgalime, the European federation of national associations representing the mechanical, electrical, electronic and metal articles industries.

For more information concerning BEAMAInstallation's anti-counterfeit campaign and free copies of its 'Counterfeit Kills' CD phone: 020 7793 3013; email: cac@beama.org.uk or visit www.beamainstallation.org.uk.