There are some great benefits related to the new tariffs.  We expect less counterfeiting, reduced intellectual property violations, and more manufacturing in developed countries.  AERI has definitely been affected by the new tariffs.  Generally, we look at the negative impact it has on our business; higher prices, confusing, more government interaction necessary, etc., but we have to consider the benefits as well.

The potential of reduced counterfeits hits closest to home for our industry.  By our account, and that of every other source we have found, China is the largest offender in the counterfeiting of goods.  One might ask, why is that the case?  By our experience and research, it points to the lack of the Chinese government cracking down on counterfeiters.  Through visits to Shenzhen and the surrounding cities producing counterfeits, it seems apparent that some government officials are actually trying to protect the counterfeiting industry.  One has to be inconspicuous and careful when visiting some of the areas that the fakes are produced.  Officials are watching visitors and discouraging examination and photography.  The demands made by the U.S. on China reach into the production of fakes.  There is a culture of acceptance of intellectual property theft and if flows all the way down to the counterfeiting of electronic components.

The other hope of this tariff war is that, although prices at Walmart may go up, Americans will have better and higher paying jobs to pay for the increases.  Entire U.S. cities were financially devastated when trade agreements were put in place in our recent past.  NAFTA, which meant to help Americans save money on cars, TV’s, and other products, while helping our neighbors, wiped out our auto manufacturing industry.  What good are low prices on cars if you don’t have a job?  It will take some time to see the positive effects of the new tariffs on American jobs, but many companies are already announcing that they are bringing manufacturing home.  Let’s hope that we see some great positives that come from this difficult trade war with China.          

Contact Us to learn more about how you can benefit from these international trade changes. 

Another U.S. electronic components broker has been sentenced to prison.  Check your supplier purchases to see if your company may have bought anything from one of his many different company names.  If so, assess the risk to determine if any action is needed.   

Rogelio Vasquez, a.k.a. James Harrison, last doing business as PRB Logistics Corporation in Costa Mesa California, was sentenced by United States District Judge Josephine L. Staton, who said, “Simply put, the scheme was endangering lives for the sake of illicit profit.” Vasquez was also ordered to pay $144,000 in restitution.

From July 2009 to May 2016 Rogelio instructed Chinese suppliers to refurbish and remark used or discarded electronic components to meet the requirements of defense subcontractors, as well as other industries.  Some of the parts ended up being installed in a classified weapons system used by the U.S. Air Force.  In a sting operation, Vasquez sold 106 counterfeit integrated circuits to an undercover federal agent.

Rogelio’s actions show no concern for the many lives he has put in jeopardy.  It is sad that someone would purposefully put others lives at stake for their own monetary gain.  Not only could his actions cause injury, but our country depends on the tools it uses to defend our country.  It is good to know that the Department of Defense is paying attention to this huge problem and bringing those to justice who violate the law. 

Rogelio Vasquez’s many company names included:

• PRB Logistics Corporation
• Devices Electronics Components
• End-Of-Line Components
• WCG
• EZ Components
• Nexxon Circuits Inc.
• JJ Electronics
• Actual Assembly Inc.
• Chapman Distributors Company
• Electronics Today
• Advanced Thermal Design Inc.
• All Electronic Component
• All American Components Inc.
• Tekchips Inc
• Big Time Electronics
• Nadkyo
• IC Grid

To see how AERI can help you avoid buying fakes from criminals like these please contact one of our search experts.

Read More about Mr. Vasquez.

Alleging that China regularly uses e-waste to counterfeit electronics while returning these dangerous faux products, including critical military equipment, back into the market, a group of Congressmen on July 1 st introduced legislation to stop the export of electronic waste to the Asian giant. If passed by Congress and signed into law by the President, the Secure E-Waste Export and Recycling Act (SEERA) would stop the flow of e-waste from the US and would require domestic recycling of all untested and nonworking electronics, which will also promote the creation of thousands of new jobs in the United States. 

Read the full article here.

To see how AERI can protect your company from receiving counterfeits go here to Learn More.

AERI’s reputation as a leader in counterfeit detection of electronic components led Electronics Sourcing magazine to reach out to us for a “How To” article.  This article gives a detailed overview of how to detect fakes in the ever evolving counterfeit market.  Contact Us to find out how we can help you detect counterfeits and keep your production lines moving.

Life’s no fun without challenges.  While detecting counterfeits we face obstacles every day.  Try to get to the die of a part the size of ground pepper.  Thanks to the latest technology of automated decapsulation and skilled engineers we can get the job done.  One of our lead engineers shared this challenge with us and sent us pictures just for kicks.

Getting access to the die of encapsulated parts is a key process in the detection of counterfeit electronic components.  Doing it well assures that you can distinguish all of the important part information.  Many test houses just blast the parts with acid, leaving a half-eaten piece with lots of scars.  They may be able to get some helpful information, but many times from our experience using a few external test houses, we were unable to authenticate the parts with what was left of the die.  Well trained engineers with quality equipment make all the difference.  Try us out and compare our die images to any of your previous test facilities.  We are sure ours will impress you and give you confidence in our assessment.  

SIGN UP for our free Webinar to learn more about counterfeit detection.

On August 23^rd almost every electronic component made in China will have an additional 25% cost due to sweeping tariffs on Chinese products.  As of yesterday, the US has officially added the following important electronic component segments to their new tariff rates.

• Integrated Circuits, Processors, Controllers, Memories, Amps
• Voltage Regulators 
• Connectors, Electrical Protection & Switching
• LED’s & LED Displays

Including the tariffs on products that went into effect on July 6^th this 2^nd group means almost all electronic components made in China will have the 25% tariff.  In order to avoid these extreme tariffs and keep your costs down order your parts from AERI by Wednesday August 15^th and we will try to get them through customs before the deadline. 

To learn more about the changes see the following articles.

CNN Report

US Government announcement    

We look forward to partnering with you to make this transition as smooth as possible. 

Please contact your AERI search expert for more information.

The US postal service does not require any content documentation from international shippers making it very difficult for Customs and Border Patrol (CBP) to flag and inspect counterfeit or dangerous products entering our borders.  All other shippers, such as UPS and FedEx, are required to provide content lists.  At a growth rate of 232% in the last 4 years, the number of small parcels imported through USPS is alarming and a threat to all industries and public safety.  Just to name some of the illicit material getting through; there are fake medicines, aerospace electronics, auto safety products such as brake pads, and fake batteries which are famous for exploding and causing injury.

https://www.uschamber.com/series/above-the-fold/what-we-know-and-what-we-don-t-about-counterfeit-goods-and-small-parcels