ML093620098 

UNITED STATES 

NUCLEAR REGULATORY COMMISSION 

OFFICE OF NUCLEAR REACTOR REGULATION 

OFFICE OF NEW REACTORS 

WASHINGTON, DC 20555-0001 

April 7, 2008 

NRC INFORMATION NOTICE 2008-04: COUNTERFEIT PARTS SUPPLIED TO NUCLEAR 

POWER PLANTS 

ADDRESSEES

All holders of operating licenses for nuclear power reactors and applicants for combined license 

to construct nuclear power plants under Title 10 of the Code of Federal Regulations

(10 CFR) Part 52, “Licenses, Certifications, and Approvals for Nuclear Power Plants.” 

PURPOSE

The U.S. Nuclear Regulatory Commission (NRC) is issuing this information notice (IN) to inform 

addressees of the potential for counterfeit parts to enter their supply chains. Addressees should 

review this information and consider actions, as appropriate, to avoid similar problems. The 

suggestions contained within this IN are not NRC requirements; therefore, no specific action or 

written response is required. 

DESCRIPTION OF CIRCUMSTANCES 

Counterfeit Valves

In November 2007, NRC became aware that Hatch Unit 2 had discovered a counterfeit valve 

(5" 150# Ladish stop check valves) on the stator cooling water skid. The licensee at Hatch later 

determined that it had two counterfeit valves in its facility: one in the warehouse and another one 

installed in Unit 2, as the "B" stator cooling water pump discharge stop check valve. The valve 

installed on Unit 2 had been in service for 8 months as of the time of discovery. Upon 

discovering the counterfeit valve, the licensee began to closely monitor the performance of the 

valve and plans to replace it during the next refueling outage in the spring of 2009. The valve 

installed at Hatch Unit 2 is being used in a non-safety related system. 

Counterfeit Circuit Breakers

NRC is aware that on December 27 and October 30, 2007, and November 16, 2006, the U.S. 

Consumer Product Safety Commission (CPSC) had announced a recall of counterfeit circuit 

breakers labeled as "Square D" distributed by North American Breaker Co., Inc., Connecticut 

Electric and Switch Co, and Scott Electric Co. Inc. The recalled circuit breakers labeled "Square 

D" were manufactured in China and distributed from March 2003 through April 2006, February 

2005 through August 2006, and May 2005 through May 2006, respectively. The counterfeit 

circuit breakers can fail to trip when overloaded, posing a fire hazard to consumers. 
IN 2008-04 

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A licensee database search indicated that Catawba, McGuire, and Oconee nuclear power plants 

had purchased Square D circuit breakers during the suspected time frame. After inspecting their 

Square D circuit breakers, Oconee and McGuire Plants confirmed that the Square D breakers 

that they had purchased during the suspected time frame were genuine. Catawba Nuclear 

Plant, however, could not confirm the authenticity of four of its Square D circuit breakers that it 

had purchased during the suspected time frame. Subsequently, Catawba removed these circuit 

breakers from stock. The NRC is not aware that the counterfeit circuit breakers have been 

installed in safety-related applications. The CPSC reports are available at 

http://www.cpsc.gov/cpscpub/prerel/prhtml08/08151.html, 

http://www.cpsc.gov/cpscpub/prerel/prhtml08/08054.html, and 

http://www.cpsc.gov/cpscpub/prerel/prhtml07/07036.html. 

BACKGROUND 

Over the past two decades, the NRC has issued several generic communications to inform 

licensees of counterfeit or misrepresented vendor products. In March 1989, the NRC staff 

issued Generic Letter (GL) 89-02, “Actions to Improve the Detection of Counterfeit and 

Fraudulently Marketed Products” (Agencywide Documents Access and Management System 

(ADAMS) Accession No. ML031140060). The GL informed licensees of program elements that 

are effective in detecting counterfeit or fraudulently marketed products and in assuring the 

quality of vendor supplied products. Additionally, in October 1989, the staff issued IN 89-70, and 

a supplement in April 1990, “Possible Indications of Misrepresented Vendor Products,” to inform 

licensees of misrepresented vendor products and to provide information related to the detection 

of such products (ADAMS Accession No. ML031180470). 

DISCUSSION 

Although none of the counterfeit items described above were installed in safety-related 

applications, these examples demonstrate the need for licensees to remain vigilant and maintain 

effective quality assurance programs to reduce the potential for introduction of counterfeit parts 

into their supply chains. 

In recent years many vendors, including foreign companies, with little to no experience in the 

nuclear industry have entered the market to supply parts and components for both safety and 

non-safety applications to nuclear power plants. It remains the licensees’ responsibility to 

ensure that all suppliers use standards and processes that conform to US standards. Effective 

oversight of suppliers becomes increasingly more important as the nuclear industry begins 

construction of new nuclear power plants in the US. 

As discussed in GL 89-02, three characteristics of effective procurement and dedication 

programs are (1) the involvement of engineering staff in the procurement and product 

acceptance process; (2) effective source inspection, receipt inspection, and testing programs; 

and (3) thorough, engineering-based programs for review, testing, and dedication of 

commercial-grade products for suitability for use in safety-related applications. Licensees may 

want to consider the applicability of these characteristics to their programs to reduce the 

likelihood of the introduction of counterfeit or fraudulent products into their plants and to assure 

the quality of procured vendor products. 
IN 2008-04 

Page 3 of 3 

CONTACT

This information notice requires no specific action or written response. Please direct any 

questions about this matter to the technical contacts listed below. 

/RA by TQuay for/ /RA/ 

Michael Case, Director Glenn Tracy, Director 

Division of Policy and Rulemaking Division of Construction Inspection and 

Office of Nuclear Reactor Regulation Operational Programs 

 Office of New Reactors 

Technical Contacts: Omid Tabatabai Robert Pettis 

 NRO/DCIP/CCIB NRR/DE/EQVB 

 (301) 415-6616 (301) 415-3214 

 omid.tabatabai@nrc.gov robert.pettis@nrc.gov 

 Richard McIntyre 

 NRO/DCIP/CQVB 

 (301) 415-3215 

 richard.mcintyre@nrc.gov

Note: NRC generic communications may be found on the NRC public Web site, 

http://www.nrc.gov, under Electronic Reading Room/Document Collections 
IN 2008-04 

Page 3 of 3 

CONTACT

This information notice requires no specific action or written response. Please direct any 

questions about this matter to the technical contacts listed below. 

/RA by TQuay for/ /RA/ 

Michael Case, Director Glenn Tracy, Director 

Division of Policy and Rulemaking Division of Construction Inspection and 

Office of Nuclear Reactor Regulation Operational Programs 

 Office of New Reactors 

Technical Contacts: Omid Tabatabai Robert Pettis 

 NRO/DCIP/CCIB NRR/DE/EQVB 

 (301) 415-6616 (301) 415-3214 

 omid.tabatabai@nrc.gov robert.pettis@nrc.gov 

 Richard McIntyre 

 NRO/DCIP/CQVB 

 (301) 415-3215 

 richard.mcintyre@nrc.gov

Note: NRC generic communications may be found on the NRC public Web site, 

http://www.nrc.gov, under Electronic Reading Room/Document Collections 

DISTRIBUTION: 

IN File 

ADAMS ACCESSION: ML080790266 

OFFICE CCIB:DCIP:NRO Tech Ed. TL:CCIB:DCIP:NRO BC:CCIB:DCIP:NRO BC:CQVP:DCIP:NRO 

NAME OTabatabai HChang RLaura RRasmussen JPeralta 

DATE 03/18/08 03/10/08 03/19/08 03/20/08 03/24/08 

OFFICE BC:CQVB:DCIP:NRO BC:EQVB:DE:NRR D:DE:NRR OGC (NLO) LA:PGCB:NRR 

NAME JNakoski DThatcher PHiland SBrock CHawes 

DATE 03/20/08 03/24/08 03/24/08 03/26/08 03/26/08 

OFFICE PM:PGCB:NRR BC:PGCB:NRR D:DCIP:NRO D:DPR:NRR 

NAME DBeaulieu MMurphy GTracy TQuay for MCase 

DATE 04/02/08 04/03/08 04/07/08 04/03/08 

OFFICIAL RECORD COPY