The National Electrical Manufacturers Association (NEMA), Rosslyn, Va., and other electrical trade groups are stepping up efforts to stop the flow of counterfeit electrical products, including extension cords, power strips and circuit breakers, from entering the United States.
The Bureau of Customs and Border Protection currently seizes approximately $1 million per month in counterfeit electrical merchandise, up from $4.5 million worth of counterfeit electrical products seized in total from 1997 through 2002. Those products not seized often end up in the market.
The damage of counterfeiting goes beyond economic loss to the original equipment manufacturers. Counterfeit products jeopardize the performance of electrical systems and place personnel in danger of electrical accidents. Although hard data does not exist that ties counterfeit products to industrial accidents, in 1999, there were 17,200 industrial facility fires, according to the National Fire Protection Association (NFPA). These events resulted in 29 deaths, 609 injuries and $1.1 billion in direct property damage.
“Counterfeit electrical products are a threat to the health and safety of persons who use or benefit from electrical products,” said Clark Silcox, general counsel for NEMA.
Many manufacturing companies are combating counterfeiting via the NEMA anti-counterfeiting program. Established in 2003, the anti-counterfeiting program helps NEMA members understand how to protect their intellectual property rights, informs the public about counterfeit electrical products, exchanges information with other organizations concerned about counterfeiting, and works with law enforcement officials to address this problem.
“The continued growth of counterfeit electrical products is a real concern for us,” said Randy Carson, senior vice president and group executive of Eaton Corp.’s electrical business. “We’re in the business of improving the safety and performance of our customers’ facilities. When counterfeit products enter the market, property and lives are put at risk. Our responsibility to our customers, our Westinghouse heritage, and our current brands is to increase awareness of the issue, educate those who can make an impact and assist law enforcement agencies whenever possible.”
One product that is particularly susceptible to counterfeiters because of its small size and ubiquity is the low-voltage circuit breaker. It’s the most common type of overcurrent protection, ensuring the safe flow of electricity in residential, commercial and industrial applications. Without circuit breakers, the safe flow of electricity becomes nearly impossible. Lives and property are put at risk when breakers do not perform properly.
“Counterfeit circuit breakers have been found that are nothing more than a good-looking switch providing no electrical protection whatsoever,” said Silcox.
In addition to jeopardizing Code compliance and personnel safety, use of unauthorized products can invalidate existing warranties. For example, counterfeit breakers installed in switchgear can void the switchgear warranty. Warranty issues oftentimes result in unnecessary repair and replacement costs for the end user.
The first line of defense against counterfeiting is engineers and operators. They are encouraged to know their original equipment, including the manufacturer, and ensure they replace the equipment with new, approved products.
The next steps for NEMA’s anti-counterfeiting committee include developing training programs for members and examining potential enforcement initiatives.
Meanwhile, other electrical associations are backing initiatives to stop the spread of counterfeit electrical products. The National Association of Manufacturers (NAM), Washington, said it praised the administration’s newly announced initiative to fight and reduce trade in counterfeit and pirated goods. The Strategy Targeting Organized Piracy (STOP) will integrate the efforts of several federal agencies.