How the IMEI system works, who can check their phone and why technical solutions alone are not enough to combat the “gray” market – expert commentary

In Ukraine, there is a database of the Ministry of Internal Affairs that allows users to check their devices by IMEI code, but, according to experts, systemic counteraction to corruption and illegal import is needed to effectively combat the “gray” market of technical solutions, primarily at customs, writes UNN.

The International Mobile Equipment Identifier (IMEI) is a unique 15-digit number assigned to each mobile device (phone, tablet, modem, etc.) during manufacture. This code allows you to accurately identify the phone in GSM and UMTS networks, and is also used to block lost or stolen devices.

IMEI is a unique number that is affixed by the manufacturer. It is difficult to get rid of it, individual companies try to conduct such activities, but they usually do not exist for long

A search database of mobile phones is operating on the platform of the Ministry of Internal Affairs of Ukraine, which is constantly updated. To check the device, users need to enter the IMEI code – this allows you to find out whether the phone is wanted. You can find out the IMEI by typing *#06# on your phone, in the settings or on the device’s case.

According to Korsun, some electronics manufacturers, including Apple, already use IMEI not only for the smartphone as a whole, but also for individual components. This means that it is impossible to install parts from a stolen device on an iPhone – only original parts are needed. At the same time, this practice is currently typical only for large companies, while Chinese and some other manufacturers are still ignoring such standards.

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In Ukraine, the Ukrainian State Center of Radio Frequencies has been keeping a general record of IMEI since 2009. The database was divided into a “white” list (legal devices), a “gray” list (requiring verification) and a “black” list (prohibited or stolen phones). However, in 2014, due to changes in legislation, the mandatory accounting of IMEI was abolished. This led to an increase in “gray” imports and a decrease in budget revenues – for example, in the first six months after the system was stopped, the budget received only UAH 700 million, while in 2013 – UAH 1.3 billion.

At the same time, according to cyber expert Kostyantyn Korsun, technical initiatives cannot replace the systematic work of law enforcement and regulatory agencies. He emphasizes that market control measures are unlikely to have a real effect without eliminating the main problems – large-scale illegal imports and corruption at customs. Even the most modern IT solutions will not change the situation if deep-seated problems are not solved, and stricter regulation often only complicates the lives of citizens, while criminals quickly find new ways to circumvent the rules.

The main causes of smuggling are corruption at customs, corruption at the border. Without eliminating these problems, the situation will not change. Even the most modern IT solutions do not help if you do not treat the root cause. (…) If you go to the doctor and something hurts, they can treat the affected area with iodine and apply a bandage. But if you don’t find out what is the source of the problem, you will have to be treated for the rest of your life

Let us remind youUNN also reported on the leakage of internal descriptions of “gray” schemes for the supply of Apple equipment in one of the small networks. Equipment is purchased through intermediaries in Southeast Asia – mostly new or refurbished devices. It is imported into Ukraine by minibuses with forged customs declarations, where cheap accessories are indicated instead of expensive gadgets. Experts suggest the existence of a “green corridor” at customs. In the future, the equipment is sold through a wide network of stores, formally registered for hundreds of FOPs, which allows to minimize taxes and avoid liability.

At the same time, recently the State Tax Service of Ukraine discovered schemes for evading VAT payment of over UAH 286 million in the “Yabko” and Yabluka networks. The head of the department, Ruslan Kravchenko, said that during the inspections, tax officials found massive facts of trade without the use of RRO/PRRO and the absence of documents on the origin of the equipment. At the same time, the State Tax Service also handed over to law enforcement officers the facts of artificial division of sales by the above-mentioned networks: legal entities involved up to 300 related FOPs on a simplified system. Tax officials identified 170 entrepreneurs involved in these manipulations. Their total income is UAH 1.72 billion.