New Law Enacted Which Increases Fines, Imprisonment, Financial Responsibility and Debarment of Government Contractors for the use of Counterfeits

The recently enacted National Defense Authorization Act of 2012 has made the accidental use of counterfeit electronic components in government equipment a much more serious offense.  The law increased the fines up to $2 million for individuals and $5 million for companies, increased prison terms up to 10 years for first time offenses, government contractors risk debarment, and the financial burden to correct any counterfeit issue will lie with the contractor, not the taxpayer.  There are many new provisions which elaborate on increased supplier scrutiny, product traceability, and authenticity testing.  Government contractors and their subcontractors are all panicking.  AERI has received multiple inquiries about how we can help with their purchasing of obsolete components and verify the authenticity of their parts currently on their shelves.  See this link for a very concise description of the new NDAA 2012 law.

Robb Hammond is the President of AERI and the chair of the Aerospace Industry’s Counterfeit Electronic Components Mitigation Standard for independent distributors, AS6081, which has become one of the industry’s most respected documents, as well as being adopted by the Department of Defense. Robb is one of the foremost thought leaders in the industry on counterfeit detection and speaks regularly at conferences around the globe.

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