Copying electrical products is an insidious, sizeable business. Copycat products include plugs, sockets, switches, fuses, lamps, cables, miniature circuit-breakers, moulded case circuit-breakers, connectors and appliances. Sophisticated production techniques mean that it is often difficult to distinguish counterfeit versions from genuine items. Some copies are complete replicas, including product design, branding, packaging, internal components and external appearance. Other copies involve patents, trademarks and safety marks. Most are sold at prices that are too good to be true.
The consequences of counterfeit electrical equipment entering the supply chain are damaging. They threaten loss of revenue and reputation for manufacturers. For consumers, it's safety – these inferior quality products could cause fires, explosions and fatalities. While for wholesalers, contractors and specifiers, their reputations are at stake if counterfeit products not meeting the required standards are supplied or installed.
Positive action
BEAMA Installation has been successful with its anti-counterfeiting drive. Working with the European federation of trade associations Orgalime, it encourages co-operation between the EU and other countries to stamp out counterfeiting.
There are also moves to partner with ANIE, the Italian body, in a joint project against counterfeiters. Bticino, Italy's largest manufacturer of accessories, has already joined the action.
The BEAMA Installation Anti-counterfeiting Working Group has masterminded direct action in China, Dubai, Qatar and Yemen, and advised members on activity in Oman, Nigeria and Kenya. However, more action by inspection firms and governments is essential.
While free trade zones are very useful for facilitating business, World Trade Organisation agreements still apply. These zones should take care they don't become clearing houses for dangerous counterfeits. Local authorities and inspectors must get tougher. More control is needed to combat counterfeiting.
With lives at risk, countries lacking effective controls must guard against becoming dumping grounds for unsafe counterfeit products. Smuggled, low-price goods also mean a significant loss of revenue for countries with import tariffs. Reduced prices and duties arising from copied electrical accessories impact on countries' economies.
Problem areas
Despite the efforts of Chinese trading standards authorities supporting BEAMA Installation's anti-counterfeiting initiatives, China remains a problem area. 95% of counterfeit products that potentially could kill are made there.
Often these products are for export only – foreign currency cash cows. China must deal more effectively with the culture that creates the counterfeit problem. Inspection procedures must be extended and enforced to counter copied products using apparently reputable brand names and country of origin markings. Stricter penalties must be put in place to discourage criminals from profiteering from this trade.
A visit by BEAMA Installation to a Chinese export commodities fair revealed hundreds of stands alarmingly – and openly – displaying counterfeit electrical installation products. Its report to the Fair Complaints Office resulted in stands being raided. Yet, this is just the tip of the iceberg.
Working with the Chinese authorities, over 70 illegal factories producing counterfeit electrical products have been raided. Over 2·5 million counterfeit products have been discovered, leading to most – plus moulds and printing templates – being confiscated and destroyed. In one factory alone, 280 000 counterfeit electrical accessories bearing a renowned BEAMA Installation member brand were seized. In another, 118 000 switches with another member's brand were removed. That's 400 000 potentially lethal products from just two factories.
The success stories
Despite the scale of the problem, BEAMA Installation's anti-counterfeiting initiatives have proven successful.
In China, during the past six months products valued at more than $1.25 million at counterfeit prices have been seized. Most activity has been driven out of large factories to smaller units which, although more difficult for the investigators to unearth, significantly reduces the manufacturing capacity. A permanent campaign is now in place, known as Electric Dragon, which is sure to make a further impact.
In Kenya, several seized containers of counterfeit electrical products have been destroyed by order of the Court. The Chinese defendants have absconded, but are no longer operating in Kenya. They will be arrested if they dare return.
In Yemen, there has been a huge reduction in counterfeit goods finding their way onto the marketplace. The largest distributor reports a massive rise in sales of genuine products.
It's not just UK brands – all well-known brands are targets. For example, 70 000 copycat Italian socket outlets and 80 000 American-made circuit-breakers have been found during raids.
In Dubai, potentially lethal circuit-breakers that are just push button switches, were seized. And in Yemen, 600 A fuses with copper straps instead of fuse elements were discovered.
With raids happening throughout the Middle East, anti-counterfeiting posters designed by BEAMA Installation are appearing in every electrical shop in Qatar, through work with the local authorities. The campaign is enforced by Qatar's Ministry of Economics and Commerce. The message is clear: counterfeit products are dangerous and it is a criminal offence to trade in them.
The Anti-counterfeiting Working Group has helped persuade Kenya's Government to act on counterfeiters due to lost revenue on import duty. This approach is being promoted throughout other African countries.
Reality tv
BEAMA Installation has accelerated its campaign against counterfeit products by making its hard-hitting Counterfeit kills film widely available on CD. The anti-counterfeiting team also visited the Middle East Electricity Exhibition in Dubai where the film was premiered; an Arabic version has been produced.
The film plays a pivotal part in the fight against the large-scale manufacture of counterfeit products. Such goods are threatening jobs and eroding market share of bona fide British electrical installation manufacturers and are often such poor quality that they are potentially lethal. 20 000 of the CDs have been issued to electrical contractors, distributors, specifiers, consultants, local authorities and housing associations.
This six minute-long CD graphically highlights the potential dangers – fire, death and injury – and the risk of loss reputation when specifying or installing inferior quality copycat electrical goods.
Targeting electrical trade and related audiences, the film has been distributed worldwide. It's received a terrific response and has been used in presentations to groups of UK contractors and wholesalers. It is essential to keep communicating the message globally that product counterfeiting is a danger to consumer safety and a serious threat to the British electrical industry.
The sequel to Counterfeit kills is in production. This will emphasise the specific responsibilities of the key players in the supply chain, including governments, in putting an end to these potentially killer products.
Maintaining vigilance
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 goods.
To counter the problem, manufacturers should register their logo and brand. The country of origin and brand name should be stamped – embossing is more effective – on the products. This ensures crucial evidence if counterfeit tooling is discovered. Products with branded adhesive labels are no deterrent. The counterfeiter produces them separately from the product and the labels are added in the country where they are sold.
If anyone is in doubt about a product's authenticity they should immediately check with the manufacturer. The best solution is to purchase products only from an authorised supplier or distributor.
The responsibility for ensuring that only genuine quality products are used lies with all those specifying, purchasing and installing electrical equipment.
BEAMA Installation's campaign aims to stem the flow of counterfeit products at source – in the marketplace and transit. Its aim is to ensure that the UK and European markets do not suffer from a flood of these dangerous products as has happened elsewhere.
No action is not an option. Your support is needed. Counterfeiters beware – BEAMA Installation is on your trail.
Source
Electrical and Mechanical Contractor
Postscript
For free copies of BEAMA Installation's Counterfeit kills CD phone: 020 7793 3013 or e-mail: cac@beama.org.uk.
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