Counterfeit Parts Prevention Policy

1. Overarching Policy

It is the policy of ASAP Semiconductor and all its business names, affiliates, divisions, and subsidiaries to conduct all business activities in compliance with the rules and regulations applicable to our industry and the laws in the countries in which the company operates. In all cases, these business activities are conducted to the highest ethical standards. ASAP Semiconductor’s reputation is built on the integrity of our employees and their commitment to maintaining the highest standard of business practice.

2. Counterfeit products

There is increased evidence that the number of counterfeit aerospace parts and electronic components in the market is rising. Counterfeit parts and components are defined as being those that are misrepresented in their origins or quality. Although we are not aware of any specific manufacturers producing counterfeit parts and selling them on as ASAP Semiconductor product, we understand the potential for this situation.

3. Prevention Policy

There are two main ways that suppliers can help to guard against counterfeit goods entering the supply chain. These are doing our due diligence when inspecting parts for quality and authenticity and protecting the supply chain.

a.   ASAP Semiconductor does its due diligence when inspecting all parts and components that come in and go out of our facilities; all parts and accompanying paperwork are checked for veracity and authenticity.

b.   The company's Counterfeit Prevention Policy is based on having a secure supply chain. This is the most effective method of preventing counterfeit components entering the industry. ASAP Semiconductor is a stocking distributor, and all of our goods are held in the Company's secure warehouses. ASAP Semiconductor is compliant with the Aviation Security Act, which restricts access to these secure, bonded, warehouses. ASAP Semiconductor is regularly audited on the security of these warehouses. ASAP Semiconductor has a network of reputable suppliers who also use secure warehouses; they are also similarly audited. Goods are shipped between warehouses using secure reputable couriers.

4. Suppliers

ASAP Semiconductor only uses audited and proven suppliers for the purchasing of parts and components. These materials are verified upon receipt and held in secure warehouses. The company maintains a quality system accredited to AS9120B, ISO 9001:2015, and FAA 0056B.

5. Part Traceability

ASAP Semiconductor parts and components come with appropriate trace paperwork in the package as applicable. The trace paperwork enables the part or component to be traced back to their origin.

6. Gray (or Grey) Market

When buyers are under pressure to meet deadlines and the genuine products are not available in the lead time required, there is a temptation to search the internet for any source of supply. This gray, or parallel, market is where goods are traded outside of the manufacturers’ authorized trading channels. Buying from this gray market, although not illegal, does carry risk. This is when counterfeit products are most likely to enter the supply chain with potentially catastrophic results.

ASAP Semiconductor customers are advised against using the gray market for sourcing parts and components. In doing so, there is a risk to the integrity of the customer’s end product, and the reputation of their company.

7. Encountering Counterfeit Products

In the event that ASAP Semiconductor discovers counterfeit materials, those materials will be quarantined, and an investigation will be undertaken to discover the source. Full details of the infringement will be reported to the appropriate government trading standards agency for criminal investigation.

In the event that an ASAP Semiconductor customer believes they may have discovered counterfeit materials they are to quarantine the goods, contact the source from which they obtained the products, and make their concerns known. The customer is advised to report the incident to the appropriate government trading standards agency, if appropriate.

8. Purchasing of Components

To guard against receiving counterfeit parts and components, customers are advised to only buy direct from ASAP Semiconductor or from other reputable sources.