MODEL REGULATIONS TO CONTROL CHEMICAL PRECURSORS AND CHEMICAL SUBSTANCES, MACHINES AND MATERIALS

INTRODUCTION

In light of the provisions of the 1961 Single Convention on Narcotic Drugs, as amended by the Protocol of 1972 amending the Single Convention on Narcotic Drugs, 1961, the 1971 Convention on Psychotropic Substances, the 1987 Quito Conference on Essential Chemical Products for the Production of Cocaine, and the 1988 United Nations Convention against the Illicit Traffic in Narcotic Drugs and Psychotropic Substances, the General Assembly of the Organization of American States (OAS) recommends to the member states that, in accordance with the fundamental provisions of their respective domestic legislative systems, they take the following measures aimed at the control of chemical precursors and other specific chemical products, machines and materials used in the production, manufacture, preparation, importation, exportation and/or any other type of illicit transaction involving narcotic drugs and psychotropic substances or others having a similar effect.

I. PURPOSE AND SCOPE OF APPLICATION

A. The purpose of this provision is to monitor and control the production, manufacture, preparation, importation, exportation, distribution and/or other type of transaction involving chemical precursors and other specific chemical products, machines and materials used in the production, manufacture, preparation, or extraction of narcotic drugs, psychotropic substances or other substances having a similar effect.

B. This provision shall be applicable in all national jurisdictions, including free-trade zones and free ports or other customs operations.

II. DEFINITIONS

The following definitions shall be applicable throughout the text of the Model Regulations except when another is expressly indicated or the context calls for another interpretation:

A. Chemical precursors (hereinafter "precursors"): Substances that can be used in the chemical processes involved in the production, manufacture and/or preparation of narcotic drugs, psychotropic substances or substances having similar effects and that incorporate their molecular structure into the final product, which makes them essential for those processes.

B. Other specific chemical products (hereinafter "other chemical products"): Substances such as solvents, reagents or catalysts that, though not precursors, can be used in the production, manufacture and/or preparation of narcotic drugs, psychotropic substances or substances having similar effects.

C. Machines and materials: Equipment to process solids, semisolids or liquids in forms such as powders and crystals, capsules, tablets or pills into various commercial or other forms of narcotic drugs and psychotropic substances, as well as materials used in those processes.

D. Production: The extraction of precursors from natural organisms.

E. Manufacture: Processes whereby precursors or other chemical products are obtained, including the refining and transformation of some into others, and whereby machines and materials are obtained.

F. Distribution: Transfer of a precursor or other chemical product or machines and/or materials from one person to another.

G. Importation and exportation: Entry into or exit from a customs jurisdiction of precursors, other chemical products, machines and/or materials.

H. Customs transit: Customs procedure whereby precursors, other chemical products, machines and materials are transported under customs control from one customs office to another within the same customs territory or as an inter- territorial customs operation.

I. Transshipment: Customs procedure whereby precursors, other chemical products, machines and materials are transferred under customs control from the importing means of transportation to the exporting means of transportation within the jurisdiction of a single customs office that is the port of both entry and exit.

J. User: End recipient who uses precursors, other chemical products, machines and materials.

K. Preparation: The process and result of obtaining precursors, other chemical products, narcotic drugs, psychotropic substances or substances having a similar effect.

III. SCHEDULE OF CHEMICALS

A. Precursors and other chemical products shall be identified by the names and digital classifications under which they are listed in the Customs Cooperation Council Nomenclature (CCCN) and in the Harmonized Commodity Description and Coding System (HS). These classification systems should be used also in statistical records and documents pertaining to importation, exportation, transit and transshipment, other customs operations and to free trade zones and free ports.

Table I

B. PRECURSORS

CCCN(1) HS(2) NAME SYNONYMS

29.02 29.03 Benzyl chloride

29.13 29.14 1-phenyl-2-propanone

29.13 29.14 3,4-methylenedioxphenyl1-2 propanone

29.14 29.16 Phenylacetic acid and its salts

29.23 19.22 O-aminobenzoic acid and its salts Anthranilic acid and its salts

29.23 29.22 N-acetylanthranilic acid and its salts

29.23 29.22 Phenylpropanolamine and its salts

29.27 29.26 Benzyl cyanide

29.27 29.26 Bromobenzyl cyanide Bromo- benzyl- aceto-nitrile

29.35 29.33 Piperidine

29.42 29.39 Lysergic acid

29.42 29.39 Ephedrine, its salts, optical isomers, and salts of its optical isomers

29.42 29.39 Ergometrine and its salts Ergonovine and its sales

29.42 29.39 Ergotamine and its salts

29.42 29.39 Pseudoephedrine, its salts, optical isomers and salts of its optical isomers DCI(3)

(1)CCCN: The Customs Cooperation Council Nomenclature
(2)HS: Harmonized Commodity Description and Coding System
(3)DCI: International Nonproprietary Names of Pharmaceutical
Substances (published by the World Health Organization)

Table II

C. OTHER CHEMICAL PRODUCTS

CCCN(1) HS(2) NAME SYNONYMS

22.08- 22.07- Ethyl alcohol Alcohol, ethanol 22.09 22.08

28.06 28.06 Hydrochloric acid Muriatic acid Hydrogen
chloride

28 08 28.07 Sulfuric acids Vitriol. Fuming sulfuric acid

28.15 28.13 Carbon Sulfide Carbon disulphide

28.16 28.14 Ammonia (anhydrous or in aqueous solution)

28.17 28.15 Potassium hydroxide Caustic Potash

28.17 28.15 Sodium hydroxide Caustic soda

28.38 28.33 Sodium sulfate Disodium sulfate

28.42 28.36 Potassium carbonate Potash

28.42 28.36 Sodium carbonate Soda ash, washing soda

28.47 28.41 Potassium permanganate

29.01 29.02 Benzene

29.01 29.02 Toluene Methylbenzene

29.02 29.03 Methylene chloride Dichloro-methane

29.02 29.03 Chloroform Trichloro-methane

29.02 29.03 Trichloroethylene

29.08 29.09 Ethyl ether Sulfuric ether Ethyl oxide Diethyl ether

29.13 29.14 Acetone Propane

29.13 29.14 Methyl ethyl ketone Butanone

29.14 29.15 Acetic acid

29.14 29.15 Acetic anhydride

(1)CCCN: The Customs Cooperation Council Nomenclature
(2)HS: Commodity Description and Coding System

D. The competent authorities may add, delete or relocate precursors and other chemical products in the pertinent tables.

These decisions will be reported to the Secretary General of the United Nations (UN), the Secretary General of the Organization of American States (OAS), and the Executive Secretary of the Inter-American Drug Abuse Control Commission (CICAD), as well as to the Executive Secretary of the South American Accord on Narcotic Drugs and Psychotropic Substances (ASEP), as applicable.

IV. LICENSING REQUIREMENTS AND RELATED RECORDS

A. Whosoever produces, manufactures, prepares, imports, exports, distributes, uses and/or engages in any other type of transaction involving precursors as listed in Table I or machines or materials shall be subjected to a licensing or similar system.

The competent authorities shall maintain a record of all authorizations, licenses and the like, either granted, denied or revoked.

B. Whosoever produces, manufactures, prepares, imports, exports, distributes, and/or uses massive quantities of other chemical products as listed in Table II, and/or engages in any other type of transaction involving such quantities of these chemicals, shall register with the competent authorities so that the scope and nature of the activities they conduct may be known.

C. The records to which this article refers shall be updated periodically.

V. RECORDS

A. The persons cited in paragraphs A and B of the preceding article shall keep records of the inventory, production, manufacture, acquisition, and distribution of those substances, machines and materials, as appicable, following the procedures outlined bellow.

B. 1. Producers, manufacturers and/or preparers of the substances listed in Tables I and II, and machines and materials, shall keep a complete, accurate and updated inventory of each of these items.

2. Complete, reliable and up-to-date records shall also be kept showing the movement of such substances, machines and materials, including the following information at a minimum:

a. Amount received from other persons and/or companies

b. Amount produced, manufactured or prepared

c. Amount imported

d. Amount used to manufacture or prepare other products

e. Amount distributed internally

f. Amount exported

g. Existing stocks

h. Amount lost through accidents or pilferage.

3. Records of the transactions listed in items 2a, c, e, and f shall include the following information, at a minimum:

a. Date of the transaction

b. Name, address, and license or registry number of each party to the transaction and those of the final consignee if not one of those parties

c. Name, amount, and form of presentation of the precursor, other chemical product or material and/or the brand name, model, and serial number of each machine

d. Means of transportation and identification of the transport company.

C. 1. Distributors, importers, and/or exporters of the substances listed in Tables I and II or of machines and materials shall keep complete, accurate, and up-to-date records thereof.

2. Complete, accurate, and up-to-date records of all transactions involving such substances, machines and materials must also be kept. These records shall include the following information, at a minimum:

a. Date of the transaction

b. Name, address, and license or registry number of each party to the transaction and those of the final consignee if not included among those parties

c. Name, amount, and form of presentation of the precursor or other chemical product, or the brand name, model, and serial number of the machines and materials

d. Means of transportation and identification of the transport company.

VI. REPORTS

A. 1. Persons engaged in the production, manufacture, preparation, distribution, transportation, storage, importation or exportation of precursors or other chemical products listed in Tables I and II, and machines and materials shall immediately report to the competent authorities any transaction or proposed transaction to which they are parties when they have reasonable grounds to suspect that such substances, machines and materials may be used in the production, manufacture, extraction or preparation of narcotic drugs, psychotropic substances or other substances with similar effects.

2. It will be considered that there are reasonable grounds particularly when the quantity of such substances, machines and materials involved in a transaction, the method of payment or the personal characteristics of the purchaser are unusual or are consistent with information provided beforehand by the competent authorities.

3. The competent authorities shall also be apprised of any losses or unusual or excessive disappearances of such substances, machines and materials under the person's control.

B. The report shall contain all available information and shall be made to the competent authorities, as soon as the circumstances that warrant suspicion are known, by the quickest means and as far in advance of the completion of the transaction as possible.

C. After the information has been confirmed, the competent authorities shall notify those authorities of the country of origin, destination or transit as soon as possible and provide them with all available information.

VII. IMPORT AND EXPORT REQUIREMENTS

A. In addition to the license and registry requirements, but without prejudice to any other authorizations required by the respective foreign trade system, importers and exporters of the substances listed in Table I, and machines and materials, shall obtain an import or export permit from the competent authorities.

The competent authorities may subject imports and exports of some or all of the substances listed in Table II to the same system as above.

The competent authorities shall determine which of the substances included in Table II shall be subject to notification.

In all cases, the application for license or the notification shall be submitted at least 30 days prior to the projected date of importation or exportation.

B. Import or export permits shall expire 180 and 90 days after the date of their issue, respectively and shall be valid for one shipment only. Each individual permit shall cover a single substance, machine or material.

C. The import or export application or customs declaration shall contain the following information, at a minimum:

1. The importer's or exporter's name and address, license (or registration), telephone, telex and fax numbers.

2. The name and address and telephone, telex, and fax numbers of the import or broker and forwarder, if any.

3. The name and identification number of each product listed in Tables I and II, and the description appearing on the drums, barrels or other containers or packaging.

When the imported or exported items consist of machines and materials, a description thereof, including the brand name, model, serial number, and the identification number used in the customs nomenclature.

4. Net weight of the commodity, in kilograms and fractions thereof.

5. Quantity and net weight of the drums, barrels or other containers or packaging.

6. Quantity of containers, if applicable.

7. Scheduled shipping and import or export date. Place of origin, and the points of shipment, stopover ports, place of entry into the country, and final destination.

8. Means of transportation and identification of the carrier.

9. Supplier's name, address and telephone, telex and fax numbers.

D. The competent authorities may deny import or export permits for the substances listed in Tables I and II, and for machines and materials when there is substantiated reason to believe that such items are to be used for illicit production, manufacture, extraction, or preparation of narcotic drugs, psychotropic substances, or other substances having similar effects.

VIII. TRANSSHIPMENT AND TRANSIT REQUIREMENTS

Customs transit and transshipment of the substances listed in Tables I and II, and machines and materials will be subject to the procedures established in the preceding article.

IX. OFFENSES

The following acts will be considered to constitute punishable offenses:

A. The production, manufacture, preparation, distribution, transportation, storage, importation, exportation, or possession of -and any other type of transaction involving- precursors or other chemicals listed in Tables I and II, and machines and materials, for the purpose of cultivating, producing, manufacturing, extracting or preparing narcotic drugs, psychotropic substances, or other products having similar effects, in any manner prohibited by law.

B. The organization, management, or financing of the offenses cited in the preceding paragraph.

C. The use of any means to induce or publicly incite the commitment of any of the offenses stipulated in this article.

D. Participation in, association or conspiracy to commit, attempts to commit and aiding, abetting, facilitating and counseling the commission of any of the offenses cited in this article.

THE WORKING GROUP RECOMMENDS TO THE GOVERNMENTS OF THE MEMBER STATES OF THE ORGANIZATION OF AMERICAN STATES:

A. That each state enact legislation or update its current legislation, to control chemical precursors and other chemical products, machines and materials in national and international transactions. Insofar as possible, such laws should be compatible with those of the other countries, taking into account these Model Regulations prepared by the Group.

Thus, each country should enact laws or such procedures that:

1. Establish severe penal, civil and/or administrative sanctions applicable to those who intentionally commit any of the offenses mentioned in Article IX of the Regulations.

2. Establish penal, civil and/or administrative sanctions to be applied to those who do not comply with the administrative procedures established.

3. Ensure that national and/or international communication systems be established for the exchange of information on transactions of precursors, other chemical products, machines and materials.

4. Adopt a flexible administrative system for the inclusion, deletion or relocation of precursors and other chemical products in the respective Tables, as well as for any relevant communications.

5. Require that records be kept of the activities contemplated in article 5 of these Regulations and that they be available to the appropriate authorities for not less than 3 years.

6. Establish the quantity of each one of the products contained in Table ll which shall be exempt from the system established under these Regulations in each field of activity.

7. Ensure the application of a surveillance system of any movement of precursors, other chemical products, machines and materials at crossings and borders wherever traffic between or border trade with, neighboring countries takes place.

8. Ensure that the authorities entrusted with border control exercise a close watch over any large quantities of chemical products held there that are not used for consumption in the area or for a licit transaction.

B. That each state should designate and transmit to the other member states of the OAS the name of the competent authority that will be the authorized point of contact for cooperative efforts between member states for purposes of monitoring and controlling transactions in precursors, other chemical products, machines and materials, conducting investigations, and facilitating the timely exchange of information.

Each shall respond promptly to any specific request for information made by the competent authorities and agencies of other countries.

C. That the competent authorities shall investigate alleged diversion and illicit uses of precursors or other chemical products, machines and materials at another country's request and report their findings promptly.

Finally, the Group of Experts wishes to make clear that these Model Regulations are not intended to be an exhaustive treatment of this extensive subject matter.

Issues such as safe storage, low risk disposal and re-exportation of such chemical products remain to be studied. Similarly, the laws governing certain sanctions should be considered.