The automated system for accounting for mobile devices has brought 6 billion UAH to the budget in five years

The automated system for mobile device accounting (AISOMTU) has provided more than UAH 6 billion in revenues to the state budget in the first five years of operation. This is stated in the response of the State Enterprise “Ukrainian State Center of Radio Frequencies” (UCRF) to the information request of UNN.

DetailsThe Ukrainian State Center of Radio Frequencies reported that the Generalized Database of International Mobile Equipment Identities (IMEI) as part of the automated information system for accounting of mobile terminals in Ukraine (AISOMTU) was launched in May 2009.

The introduction of AISOMTU on the basis of the legislation in force at that time led to a significant increase in the official import of mobile terminals and increased customs payments to the budget by 17 times in the first year of its operation. In general, during the period of AISOMTU’s operation in 2009-2014, more than UAH 6 billion of value added tax was received to the budget only from the import of mobile terminal equipment 

In 2014, Ukraine abolished the mandatory requirements that required mobile operators to check IMEI codes and block illegal devices. As a result, due to the lack of updated legislation, the system partially lost its effectiveness. Despite this, the Ukrainian State Center of Radio Frequencies (UCRF) continues to technically support the IMEI database and cooperates with importers on a voluntary basis. At the same time, this format of work does not provide full control over the market.

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According to UCRF experts, returning to active accounting and effective identification of devices by IMEI codes can significantly reduce the volume of the “gray” market. This will allow a comprehensive response to such problems as illegal trafficking in mobile equipment, counterfeiting, theft, corruption, unauthorized change of IMEI codes, underestimation of customs value and tax evasion. The issue now is legislation.

At the legislative level, work is currently underway to restore a full-fledged accounting mechanism. Draft Law No. 6183 is under consideration in the Verkhovna Rada, which provides for amendments to the Law of Ukraine “On Electronic Communications.” The document proposes to introduce a mandatory register of terminal equipment and introduce comprehensive measures to combat counterfeiting, illegal import of products, violations of customs rules and the use of prohibited devices in mobile networks 

The UCRF also explained that the IMEI code cannot simply be invented or assigned independently. It is assigned to the device at the production stage – for example, when a phone, tablet or separate communication module is manufactured. Only the GSM Association has this right – an international organization that unites manufacturers of mobile equipment. It issues code series exclusively to manufacturers, and only for those devices or modules that have a built-in GSM or UMTS module for operation in a mobile network. 

The Ukrainian format of the database maintained by the UCRF contains three lists of mobile devices: white, gray and black. The white list includes gadgets officially imported into Ukraine, which are allowed to work in the network. The gray list includes devices that are temporarily allowed to be used, for example, while verification is in progress. The black list contains phones that are prohibited from being used, including stolen or counterfeit ones. This distribution helps to control the market and distinguish legal devices from those that entered Ukraine in violation of the rules. 

Let us remind youThere is also a database of the Ministry of Internal Affairs in Ukraine, which allows users to check their devices by IMEI code, however, according to words of experts, technical solutions are not enough to effectively combat the “gray” market − a systematic fight against corruption and illegal imports, primarily at customs, is needed.

UNN also reported on the leak 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 Asian countries – 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 sole proprietorships, which allows minimizing taxes and avoiding liability.

All this indicates the relevance of the issue and the need not only for a technical, but also for a comprehensive approach to combating the shadow circulation of electronics.