DOD Counterfeit Parts Rule Signals Tough Enforcement

Law360, New York (May 6, 2014, 4:53 PM EDT) -- The U.S. Department of Defense issued a final rule Tuesday intended to remove counterfeit electronic parts from its supply chain, taking a tough stance on high-risk electronics and resisting contractor calls for commercial exemptions that could have blunted the rule's costs for the defense industry.

The DOD rule, proposed in May 2013, requires defense contractors to scour their supply lines for counterfeit electronics, which pose greater risk of failure and sabotage, and it puts contractors on the hook for the costs of replacing any counterfeits that...
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