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December 2006

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Subject:
From:
Bernard Kessler <[log in to unmask]>
Reply To:
TechNet E-Mail Forum <[log in to unmask]>, Bernard Kessler <[log in to unmask]>
Date:
Wed, 6 Dec 2006 16:01:56 -0800
Content-Type:
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Hi---
In all fairness to buyers and others, the problem is not related to
price alone---it's also a  function of availability.  The center of
the component world has moved to China and with it a whole new set of
opportunists having no trouble finding willing buyers.  The
re-marking of parts has
been with us for years and years --- and any component dealer at any
stage/level in the distribution network can tell you horror
stories.  Years ago I was saved from a mess in Singapore because I
knew the salesman selling re-marking equipment who knew the source
---- his customer.

The issue is to buy from qualified sources and retain
recourses.  First there are reputable, reliable sources here in the
USA who bring in goods from China and guarantee the parts.  Second,
for the do-it-yourselfers, there is the escrow route ---- you're one
step up if the source is willing to send goods for inspection before
the funds are released.  Then there are the sources who will sell on
open account for limited term--- enough
to permit your inspecting and testing the parts.   The real sad part
of all this is that precautions are necessary and not only from
Chinese sources.   Parts from European sources have also been
troublesome because they are also buying parts from China and
re-selling them here.
While many complaints have involved deliberate acts of fraud --- some
are inadvertent and that makes it all the more difficult to deal with.

By the way, the latest approach to trying to avoid the problem is to
request photos with the quote and/or prior to shipment.  You can't always
tell whether the part is real or has been re-marked but it's a way of
confirming that the source does have the parts and the simple request
tends to eliminate some of the predators.

Two steps that we, as an organization, can take as a service to our
membership-----

1.  Set up a Component Procurement Committee chartered to collect
information on sources anywhere and everywhere that have shipped
counterfeit parts, shipped re-marked parts or otherwise attempted to
defraud the buyer.  Important is the issue of remedies.  Companies do
make mistakes and ship parts that are counterfeit without being aware
of it.   If they refund your money or replace the goods or take whatever
corrective action is requested, that would not be reportable.   The
interest is in the negative element to be avoided.  (The positive tends to
encourage endorsements which is a different matter.)

2.  Have a segment on the IPC web in which the collected and
confirmed information re these companies can be accessed.   Be aware
that there are forums in the broker community that already do
this.  We're not re-inventing the wheel --- we're just bringing into
our own scope
as a membership benefit and developing our own experience set.

For those of us active in the prime and second markets, the problem
of counterfeit parts is a frustrating one in that it tends to make all
non-franchised sources suspect.  The ethical surplus dealer and
broker has a large stake in keeping his business environment clean and
professional.  Solving the problem of fraudulent parts helps everyone.

Good luck
Bernie Kessler

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