Despite the industry's best efforts to prevent such a scenario, counterfeit parts do find their way into the U.S. and onto WDs shelves. Why? The lure of lower prices and higher profits leads some WDs to attempt "direct importing" of parts. Since many brand-name manufacturers now operating plants overseas, the thinking goes, why not just buy the parts directly via the Internet or import specialists?
The answer is because such a course if fraught with peril. As noted in an October 2007 Special Report, "Direct Importing: Do the Risks Outweigh the Reward," issued by the Automotive Aftermarket Suppliers Association (AASA) division of the Motor & Equipment Manufacturers Association (MEMA), "Distributors which import products from abroad are considered by the National Highway Traffic Safety Administration (NHSTA) as statutory manufacturers."
This designation opens a large can of worms in terms of responsibility for the parts, compliance with federal standards, payment of duties, and communications requirements with NHTSA that most distributors would do well to steer clear of.
Parts manufacturers, as might be expected, are doing what they can to prevent a fake part from making it into their box.
KYB America, for example, may be based in the U.S. heartland community of Addison, Ill, but it's a global corporation that operates in more than 100 countries around the world. That makes the threat of counterfeiting a fairly large issue that must be confronted, says Aaron Shaffer, the company's marketing manager.
"The way we have elected to deal with the issue is head-on in the countries where the counterfeit product is being produced," Shaffer says. "We work very closely with police and customs officials. We conduct training seminars and create documents and bulletins for them that instruct them how to identify a real KYB product from a counterfeit one. Basically, we try to deal with this before the product is ever exported."
According to Shaffer, the easiest way to identify a potentially counterfeit part is through the bar coding on the box's labels. The coding on a counterfeit part is in a different format than that on a genuine part. "If we instruct people how to identify the KYB code from the counterfeit code, they can find it pretty quickly," he says.
Counterfeiting hasn't been as big a problem in North America as it has been in some other countries that don't enforce intellectual property rights laws as closely as the U.S. does, Shaffer adds. Still, he offers a simple piece of advice for WDs anywhere who are looking to protect themselves from falling victim to a counterfeiting scam: "Just know who you're buying from," he says.
Dan Freeman, president and CEO, Automotive Parts agrees that counterfeiting is more of an overseas problem than a U.S. problem, and also sins the praises of buying from known, reputable sources. He also offers advice for WDs who may inadvertently purchase counterfeit parts.
"I would advise a WD in that situation to contact the manufacturer first and the Federal Bureau of Investigation (FBI) second," Freeman says. "The last thing you want is to have something in your building that's counterfeit, and you haven't contacted the FBI and made them aware that you want to do something about it. It would be a mistake to just let it sit around and hope that nobody finds out."
As far as a WD realizing that it may have sold counterfeit parts, Freeman says honesty is the best policy.
"I would tell my customers flat out that we have found counterfeit product in our inventory, we have contacted the manufacturer and the FBI, and here's how to identify the product(s)," Freeman says. "At that point, it's up to the WD to make things right with the customers."
According to the U.S. Department of Commerce, citizens who are suspicious that merchandise claiming to be "made in the USA" really isn't should contact the Federal Trade Commission at (877) 382-4357. To report suspicions concerning the manufacture or sale of counterfeit or pirated goods, call the FBI at (202) 324-3000 to obtain contact information at your local FBI office.
