If you’re diving into the world of Original Equipment Manufacturers (OEMs) or exploring the idea of “deemed OEMs,” you’re not alone.
For many in the tech, auto, and electronics industries, understanding what a deemed OEM is—and how it differs from an OEM—can help make sense of complex supply chains and equipment sourcing.
This article will clarify what it means to be a deemed OEM, how it compares to a traditional OEM, and why these distinctions are important.
What Does Deemed OEM Mean?
The term deemed OEM refers to companies or manufacturers that are given the designation of an Original Equipment Manufacturer (OEM) for specific products, even though they are not the original producers of these items.
Essentially, deemed OEMs are recognized as OEMs due to regulatory compliance or certification, often by industry standards or government bodies, for a particular line of products.
In practical terms, deemed OEMs don’t manufacture the components themselves but are certified to sell, distribute, or rebrand products as though they are the original manufacturers.
They are “deemed” OEMs in that they have permission to act with the authority of an OEM without necessarily producing the original equipment themselves.
Deemed OEM vs. Traditional OEM: Key Differences
To understand what a deemed OEM does, let’s start with a breakdown of what a traditional OEM is and how it contrasts with a deemed OEM.
Original Equipment Manufacturer (OEM)
An OEM is a company that designs and produces components or products that are then sold to another company, which incorporates these parts into their final product.
For example, a company that manufactures high-quality engine components for cars may sell these to an automaker, which then includes them in the vehicles they sell. A OEM can be any manufacturer in any category.
Deemed OEM
A deemed OEM operates differently. They don’t design or produce the original equipment themselves. Instead, deemed OEMs may import, assemble, or distribute components, and they have the necessary certifications or permissions to label these products as though they were OEM products. In many cases, these companies receive a deemed OEM certificate to formalize their role.
Why Does the Deemed OEM Concept Exist?
The concept of deemed OEMs exists mainly for regulatory, economic, and logistical reasons. In some cases, certain markets may require a company to be deemed an OEM to streamline product distribution and compliance. For instance, in countries with specific trade restrictions, a deemed OEM designation allows businesses to operate with OEM status while adhering to local laws and regulations.
Deemed OEM on GEM (Government e-Marketplace)
In some countries, especially in public procurement systems, deemed OEM status is particularly relevant. For instance, on platforms like GEM (Government e-Marketplace) in India, the term “deemed OEM” designates sellers who have been certified to offer products as OEMs, despite not manufacturing them. This designation is especially critical in public tenders, where the government may require OEM warranties, services, or components. By giving certain suppliers deemed OEM status, the government ensures that they meet the criteria to act as OEMs for specific products.
Deemed OEM Certificate: What It Means and How to Obtain One
For a company to gain deemed OEM status, it typically needs a deemed OEM certificate. This certificate is a formal acknowledgment by an official body, industry organization, or governmental authority that the company meets all necessary qualifications to act as an OEM for a particular product. The certificate might require the company to meet criteria related to product quality, warranty provisions, support infrastructure, or other standards comparable to those expected of traditional OEMs.
Steps to Obtain a Deemed OEM Certificate
- Application: The first step is to apply for deemed OEM status with the relevant authority or regulatory body. This application often involves documentation proving the company’s capability and quality standards.
- Evaluation: The authority reviews the company’s qualifications, examining factors like operational facilities, quality assurance protocols, and warranty policies.
- Certification: Upon approval, the company receives a deemed OEM certificate, officially granting them OEM-equivalent status for the designated product category.
Deemed OEMs vs. Resellers: Are They the Same?
While it might seem that deemed OEMs are essentially resellers, there are significant differences. Resellers purchase products from an OEM and sell them to end users without modifying or rebranding them. They act as intermediaries rather than as manufacturers. However, deemed OEMs can rebrand, package, or even alter the product to some extent, as long as it complies with their deemed OEM certification standards.
Unlike resellers, deemed OEMs are held to standards that align them closer to OEMs. They may also have to provide warranties, support services, or other assurances akin to those provided by the original manufacturers.
Deemed OEM in Practice
Let’s consider an example. Suppose Company A imports’ electronics from various manufacturers and repackages them for sale in a region that requires OEM warranties. Company A applies for and receives deemed OEM certification. This designation allows Company A to sell the electronics as if they were the OEM, providing necessary warranties and services required by law.
Such a setup is common for companies that operate in international markets where regional regulations or industry standards demand an OEM designation. By being recognized as a deemed OEM, they bypass some restrictions and can serve markets that require these OEM-grade assurances.
Difference Between OEM and Deemed OEM: A Summary
Let’s break down the core differences:
| Aspect | OEM | Deemed OEM |
|---|---|---|
| Manufacturing | Directly manufactures components or products | Does not manufacture but has certification to act as OEM |
| Certification | Must meet warranty requirements as specified in the certification | Requires deemed OEM certificate for OEM status |
| Warranty Provision | Provides warranties as per OEM standards | Must meet warranty requirements as specified in certification |
| Role | Primary producer of the original equipment | Authorized distributor or assembler with OEM-level authority |
| Compliance | Generally follows own production standards and warranties | Adheres to regulatory or industry standards for deemed OEM status |
Deemed OEM Name: What Does It Mean?
The deemed OEM name refers to the brand or company name under which deemed OEMs are recognized. This name may appear on packaging, documentation, and warranties, as though the product were manufactured by an OEM. For businesses on government marketplaces, this name helps buyers understand that the supplier is authorized and recognized as a deemed OEM, ensuring quality and support expectations are met.
FAQs about Deemed OEMs
Here are some additional questions people often have about deemed OEMs:
- Do deemed OEMs need to provide the same warranty as original manufacturers?
- Yes, deemed OEMs often have to meet specific warranty requirements, as outlined in their certification.
- Can a deemed OEM lose its certification status?
- Yes, if the deemed OEM does not meet quality or regulatory standards, it may risk losing its certification.
- Are deemed OEMs only relevant to certain industries?
- No, deemed OEMs can be found across various sectors, including electronics, automotive, and even software industries.
- What are some advantages of being a deemed OEM for a company?
- It allows companies to compete with OEMs directly, access restricted markets, and often receive better supplier contracts.
- Is there a difference between an authorized dealer and a deemed OEM?
- Yes, authorized dealers primarily resell products without OEM branding or warranty requirements, while deemed OEMs are authorized to act in an OEM capacity.
Conclusion
Deemed OEMs provide an essential function within complex global supply chains, bridging the gap between traditional OEMs and companies that can offer OEM-level services and warranties. Whether you’re a business looking to become a deemed OEM or a consumer interested in understanding the source of your products, knowing the distinction between deemed OEMs and traditional OEMs can help you make more informed decisions.