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**Drug         Trafficking in the United States**

The         illegal drug market in the United States is one of the most profitable         in the world. As such, it attracts the most ruthless, sophisticated, and         aggressive drug traffickers. Drug law enforcement agencies face an enormous         challenge in protecting the country's borders. Each year, according to         the U.S. Customs Service, 60 million people enter the United States on         more than 675,000 commercial and private flights. Another 6 million come         by sea and 370 million by land. In addition, 116 million vehicles cross         the land borders with Canada and Mexico. More than 90,000 merchant and         passenger ships dock at U.S. ports. These ships carry more than 9 million         shipping containers and 400 million tons of cargo. Another 157,000 smaller         vessels visit our many coastal towns. Amid this voluminous trade, drug         traffickers conceal cocaine, heroin, marijuana, MDMA, and methamphetamine         shipments for distribution in U.S. neighborhoods.

Diverse         groups traffic and distribute illegal drugs. Criminal groups operating         from South America smuggle cocaine and heroin into the United States via         a variety of routes, including land routes through Mexico, maritime routes         along Mexico's east and west coasts, sea routes through the Caribbean,         and international air corridors. Furthermore, criminal groups operating         from neighboring Mexico smuggle cocaine, heroin, methamphetamine, amphetamine,         and marijuana into the United States. These criminal groups have smuggled         heroin and marijuana across the Southwest Border and distributed them         throughout the United States since the 1970s. In addition to distributing         cocaine and methamphetamine in the West and Midwest, these Mexico-based         groups now are attempting to expand the distribution of those drugs into         eastern U.S. markets. 

Likewise,         the use of the drug 3, 4-methylenedioxymethamphetamine (MDMA), also known         on the street as "Ecstasy," has increased at an alarming rate         in the United States over the last several years. Israeli and Russian         drug trafficking syndicates and Western Europe-based drug traffickers         are the principal traffickers of MDMA worldwide. MDMA, primarily manufactured         clandestinely in Western Europe, is smuggled into the United States by         couriers via commercial airlines, as well as through the use of express         package carriers. Finally, criminal groups based in Southeast and Southwest         Asia smuggle heroin into the United States. Using New York City as a major         distribution hub, these criminal groups move heroin up and down the eastern         seaboard and into the Midwest. 

Besides         these criminal groups based abroad, domestic organizations cultivate,         produce, manufacture, or distribute illegal drugs such as marijuana, methamphetamine,         phencyclidine (PCP), and lysergic acid diethyamide (LSD). By growing high-potency         sinsemilla, domestic cannabis growers provide marijuana that easily competes         with other illegal drugs. With demand for methamphetamine remaining high,         especially in the West and Midwest, so, too, does the number of illicit         laboratories that supply methamphetamine to a growing number of addicts.         Additionally, a small number of chemists manufacture LSD that is subsequently         distributed primarily to high school and college students throughout the         United States.

**COCAINE**

Cocaine         trafficking and abuse continue to threaten the health and safety of American         citizens. According to drug abuse indicators, the use of both powder and         crack cocaine have stabilized, albeit at high levels. The trafficking,         distribution, and abuse of cocaine and crack cocaine have spread from         urban environments to smaller cities and suburban areas of the country,         bringing a commensurate increase in violence and criminal activity. The         level of violence associated with cocaine trafficking today, however,         does not compare to the rampant violence of the 1980s when the crack epidemic         was at its worst.

**Trafficking         by Colombian and Mexican Organizations**

The         U.S./Mexico border is the primary point of entry for cocaine shipments         being smuggled into the United States. According to a recent interagency         intelligence assessment, approximately 65 percent of the cocaine smuggled         into the United States crosses the Southwest border. Cocaine is readily         available in nearly all major cities in the United States. Organized crime         groups operating in Colombia control the worldwide supply of cocaine.         These organizations use a sophisticated infrastructure to move cocaine         by land, sea, and air into the United States. In the United States, these         Colombia-based groups operate cocaine distribution and drug money laundering         networks comprising a vast infrastructure of multiple cells functioning         in many major metropolitan areas. Each cell performs a specific function         within the organization, e.g., transportation, local distribution, or         money movement. Key managers in Colombia continue to oversee the overall         operation.

Over         the past decade, the Colombia-based drug groups have allowed Mexico-based         trafficking organizations to play an increasing role in the U.S. cocaine         trade. Throughout most of the 1980s, the criminals in Colombia used the         drug smugglers in Mexico to transport cocaine shipments across the Southwest         border into the United States. After successfully smuggling the drugs         across the border, the Mexican transporters transferred the drugs back         to the Colombian groups operating in the United States. However, the seizure         of nearly 21 metric tons of cocaine in 1989 led to a new arrangement between         transportation organizations operating from Mexico and the organized crime         groups operating from Colombia. This new arrangement radically changed         the role and sphere of influence of the Mexico-based trafficking organizations         in the U.S. cocaine trade. By the mid-1990s, Mexico-based transportation         groups were receiving up to half the cocaine shipment they smuggled for         the Colombia-based groups in exchange for their services. Both sides realized         that this strategy eliminated the vulnerabilities and complex logistics         associated with large cash transactions. The Colombia-based groups also         realized that relinquishing part of each cocaine shipment to their associates         operating from Mexico ceded a share of the wholesale cocaine market in         the United States.

Today,         traffickers operating from Colombia continue to control wholesale-level         cocaine distribution throughout the heavily populated northeastern United         States and along the eastern seaboard in cities such as Boston, Miami,         Newark, New York, and Philadelphia. There are indications, however, that         other drug trafficking organizations are playing a larger role in the         distribution of cocaine in conjunction with the Colombian organizations.         Dominican drug trafficking organizations have traditionally been responsible         for the street-level distribution of cocaine. The DEA Philadelphia Field         Division reports that the primary sources of supply for cocaine in the         city are Colombian and Dominican organizations, which are capable of moving         multikilogram quantities. The DEA Boston Field Division reports that Dominican         traffickers are expanding their roles in cocaine distribution, and have         been instrumental in obtaining multikilogram quantities of cocaine for         distribution in New England. In New York City, Colombian, Dominican, and         Mexican drug trafficking organizations distribute multikilogram quantities         of cocaine. Furthermore, Mexican drug trafficking organizations are increasingly         responsible for the transportation of cocaine from the Southwest border         to the New York market. 

Traffickers         operating from Mexico now control wholesale cocaine distribution throughout         the western and midwestern United States. Mexico-based trafficking groups         in cities such as Chicago, Dallas, Denver, Houston, Los Angeles, Phoenix,         San Diego, San Francisco, and Seattle control the distribution of multiton         quantities of cocaine, once dominated by the Colombia-based drug groups.         In the early 1990s, when the organized crime groups from Mexico were expanding         their roles as cocaine transporters and wholesale-level distributors,         most of their U.S.-based command and control operations were in southern         California. Today, Chicago is also a key command and control center for         their cocaine operations, and Atlanta is increasingly important as a trafficking         hub for cocaine movement. Currently, these traffickers control cocaine         shipments from the time they are smuggled across the border until they         are distributed to markets across the country.

The         role of Mexico-based trafficking organizations is continuing to evolve.         Recent reports suggest that some major international criminals in Colombia         are further distancing themselves from day-to-day wholesale-level cocaine         distribution in the United States by turning this task over, at least         occasionally, to the organizations operating from Mexico. A likely motivation         for this change is the non-retroactive extradition law enacted by the         Colombian National Assembly in December 1997. Accordingly, Colombian traffickers         now face the prospect of extradition for overt acts committed on or after         the date (December 17, 1997) that the extradition amendment went into         effect. By distancing themselves from overt acts in the United States,         Colombian drug lords hope to minimize the threat that the United States         will gather sufficient evidence to support an extradition request. This         shift does not mean to suggest that traffickers operating from Colombia         will abandon the U.S. cocaine market en masse. Emerging drug lords-who         do not face the difficulties in micro-managing operations as do the jailed         Cali criminal leaders-have little reason to forego the profits generated         by the wholesale U.S. cocaine market.

Colombian         drug trafficking organizations increasingly rely upon the eastern Pacific         Ocean as a trafficking route to move cocaine to the United States. Law         enforcement and intelligence community sources estimate 65 percent of         the cocaine shipped to the United States moves through the Central America-Mexico         corridor, primarily by vessels operating in the eastern Pacific. Colombian         traffickers utilize fishing vessels to transport bulk shipments of cocaine         from Colombia to the west coast of Mexico and, to a lesser extent, the         Yucatan Peninsula. The cocaine is off-loaded to go-fast vessels for the         final shipment to the Mexican coast. The loads are subsequently broken         down into smaller quantities to be moved across the Southwest border.

However,         cocaine continues to be transported through the Caribbean; Puerto Rico,         the Dominican Republic, and Haiti are the predominant transshipment points         for Colombian cocaine transiting the Caribbean. Because of lawlessness         and deteriorating economic conditions, Haiti is a growing transshipment         point for Colombian cocaine destined for eastern U.S. markets. Haitian         drug traffickers, utilizing maritime shipments to transport cocaine to         South Florida, are becoming a major threat. Law enforcement reporting         indicates that Jamaica is an increasingly significant transshipment point         for cocaine destined for the United States since it is located midway         between South America and the United States. Cocaine is primarily smuggled         into Jamaica by maritime methods, and the cocaine transshipped through         Jamaica often is destined for the Canadian, European, and U.S. markets.         Cocaine destined for the United States is usually smuggled from Jamaica         to the Bahamas aboard go-fast boats. The cocaine is subsequently smuggled         to the Florida coast using go-fast boats, pleasure craft, and fishing         vessels. 

**Crack         Cocaine Trafficking**

Crack,         the inexpensive, smokable form of cocaine, continues to be distributed         and used in most major cities. While cocaine use in the United States         has declined over the past decade, the rate of use in recent years has         stabilized at high levels. Crack cocaine usage, which initially drove         these rates, has similarly stabilized, and shows some indications of declining         although it also remains at a high level. Street gangs, such as the Crips         and the Bloods, and criminal groups of ethnic Dominicans, Puerto Ricans,         and Jamaicans dominate the retail market for crack cocaine nationwide.         The directed expansion of these gangs to smaller U.S. cities and rural         areas, as well as a growth in street gangs that imitate their urban counterparts,         results in an increase in homicides, armed robberies, and assaults as         gang members use physical violence to maintain their drug distribution         monopolies.

**Prices         and Purity**

Cocaine         prices in 2001 remained low and stable, suggesting a steady supply to         the United States. Nationwide, wholesale cocaine prices ranged from $12,000         to $35,000 per kilogram. In most major metropolitan areas, however, the         price of a kilogram of cocaine ranged from $13,000 to $25,000. Average         purity for cocaine at the gram, ounce, and kilogram levels remained stable         at high levels. In 2001, the average purity of a kilogram of cocaine was         73 percent. Typically, cocaine HCl is converted into crack cocaine, or         "rock," within the United States by the secondary wholesaler         or retailer. Crack cocaine is often packaged in vials, glassine bags,         and film canisters. The size of a crack rock can vary, but generally ranges         from 1/10 to 1/2 gram. Rocks can sell for as low as $3 to as high as $50,         but prices generally range from $10 to $20. 

**Seizures**

According         to the Federal-wide Drug Seizure System (FDSS), U.S. federal authorities         seized over 111 metric tons of cocaine in Calendar Year 2001. This moderate         increase over the nearly 107 metric tons seized in 2000 is due in part         to an increase in maritime seizures in the Southwest Pacific. Maritime         seizures in this region increased by 9 metric tons between CY 2000 and         CY 2001. Two of the more notable seizures in the Eastern Pacific corridor         in CY 2001 reflect the importance of the region in cocaine movement to         the United States. In February 2001, the fishing vessel *Forever My         Friend* was intercepted with over 17 metric tons of cocaine. In May         2001, the fishing vessel *Svesda Maru* was seized with another 17         metric tons of cocaine on board.

**HEROIN**

Heroin         is readily available in many U.S. cities as evidenced by the unprecedented         high level of average retail, or street-level, purity. Criminals in four         foreign source areas produce the heroin available in the United States:         South America (Colombia), Southeast Asia (principally Burma), Mexico,         and Southwest Asia/Middle East (principally Afghanistan). While virtually         all heroin produced in Mexico and South America is destined for the U.S.         market, each of the four source areas has dominated the U.S. market at         some point over the past 30 years. Over the past decade, the United States         has experienced a dramatic shift in the heroin market from the domination         of Southeast Asian heroin to a dominance of the wholesale and retail markets         by South American heroin, especially in the East. In the West, by contrast,         "black tar" and, to a lesser extent, brown powdered heroin from         Mexico have been, and continue to be, the predominant available form.

The         increased availability of high-purity heroin, which can effectively be         snorted, has given rise to a new, younger user population. While avoiding         the stigma of needle use, this user group is ingesting larger quantities         of the drug and, according to drug treatment specialists, progressing         more quickly toward addiction.

**South         American Heroin**

The         availability of South American (SA) heroin, produced in Colombia, has         increased dramatically in the United States since 1993. SA heroin is available         in the metropolitan areas of the Northeast and along the East Coast. Independent         traffickers typically smuggle SA heroin into the United States via couriers         traveling aboard commercial airlines, with each courier usually carrying         from 500 grams to 1 kilogram of heroin per trip. These traffickers increased         their influence in the lucrative northeastern heroin market, which has         the largest demand in the United States, by pursuing an aggressive marketing         strategy. They distributed high-quality heroin (of purity frequently above         90 percent), undercut the price of their competition, and used their long-standing,         effective drug distribution networks. Investigations also indicate the         spread of SA heroin to smaller U.S. cities. 

Since         the mid-1990s, Colombian heroin traffickers have diversified their methods         of operation. Couriers still come into Miami, New York City, San Juan,         and other U.S. cities on direct commercial flights from Colombia. Increasingly,         however, Colombian traffickers are smuggling heroin from Colombia into         the United States through such countries as Costa Rica, the Dominican         Republic, Ecuador, Panama, Mexico, Argentina, and Venezuela.

In response         to increased drug law enforcement presence at eastern ports of entry,         some SA heroin traffickers have sought alternative routes. They transship         heroin through the Dallas/Fort Worth International Airport before it reaches         its final destination of New York City's LaGuardia Airport. Their couriers         often transport heroin impregnated within clothing. Couriers with other         destinations also smuggle the drug using this same method of concealment.         In January 2002, USCS agents at the Miami International Airport arrested         a courier who had arrived from Venezuela with 14 kilograms of heroin-saturated         clothing. The following month, 18 kilograms of clothing saturated with         heroin were seized in New York. Another increasingly used method is to         smuggle heroin by sewing it into clothing. In New York in March 2002,         two couriers were arrested at a hotel with approximately 8 to 10 kilograms         of heroin sewn into 24 pieces of clothing. Also in New York that month,         a married couple, Venezuelan nationals, who had arrived at JFK International         Airport on a flight from Caracas, had in their luggage jackets that had         a combined total of 6 kilograms of heroin sewn into them. 

Colombian         heroin traffickers have also used commercial maritime methods to move         larger amounts of their drug into the United States. Some of the past         maritime heroin shipments have been intermixed with larger shipments of         cocaine, and some have been transported via cruise ships. Larger shipments         of heroin have also been smuggled via containerized cargo, as evidenced         by the May 16, 2001, seizure of 54 kilograms of SA heroin in New York.         The heroin, packaged in 1.5 pound bricks, was secreted in false bottoms         of 1,400 25-pound boxes of frozen plantains. This seizure represents the         largest seizure of SA heroin to date in the United States.

Within         the United States, ethnic Dominican criminal groups have played a significant         role in retail-level heroin distribution in northeastern markets for at         least the past two decades. During the 1990s, Dominican groups secured         their role in the heroin trade by selling high-purity SA heroin. Currently,         Dominican groups dominate retail heroin markets in northeastern cities         such as New York City, Boston, and Philadelphia. New York City is the         primary base of operation for ethnic Dominican groups. Colombian distribution         networks at the wholesale level deal directly with Dominican trafficking         groups responsible for retail sales. 

**Mexican         Heroin**

Mexican         heroin has been a threat to the United States for decades. It is produced,         smuggled, and distributed by polydrug trafficking groups, many of which         have been in operation for more than 20 years. Nearly all of the heroin         produced in Mexico is destined for distribution in the United States.         Organized crime groups operating from Mexico produce, smuggle, and distribute         the black tar heroin sold in the western United States. Traditionally,         trafficking groups operating from Mexico evaded interdiction efforts by         smuggling heroin to the U.S. market as they received orders from customers.         By keeping quantities small, traffickers hoped to minimize the risk of         losing a significant quantity of heroin in a single seizure. Even large         polydrug Mexican organizations, which smuggle multiton quantities of cocaine         and marijuana, generally limited smuggling of Mexican heroin into the         United States to kilogram and smaller amounts. Nevertheless, trafficking         organizations were capable of regularly smuggling significant quantities         of heroin into the United States. 

Although         illegal immigrants and migrant workers frequently smuggle heroin across         the U.S./Mexico border in 1- to 3- kilogram amounts for the major trafficking         groups, seizures indicate that larger loads are being moved across the         border, primarily in privately owned vehicles. Once the heroin reaches         the United States, traffickers rely upon well-entrenched polydrug smuggling         and distribution networks to deliver their product to the market, principally         in the metropolitan areas of the midwestern, southwestern, and western         United States with sizable Mexican immigrant populations.

Indicative         of larger shipments of Mexican heroin being smuggled into the United States         are several seizures that occurred in the Southwest in recent years. Following         a traffic stop in April 2002 near Pleasanton, Texas - about 25 miles south         of San Antonio - Department of Public Safety troopers seized 34 kilograms         of brown powder heroin. The heroin bundles, placed inside metal boxes,         were found in all four tires of a pickup truck which was headed for San         Antonio. In January 2001, the USCS in Del Rio, Texas, seized 42 kilograms         of black tar heroin and in December 2000, they seized 27 kilograms of         black tar heroin at the Laredo port of entry. Texas has not been the only         border state where large amounts of black tar heroin have been seized.         In October 2000, 46 kilograms of black tar heroin were seized in Arizona         at the San Luis port of entry. This seizure ranks as one of the largest         ever made along the Southwest border.

Although         recent DEA cases have involved Mexican black tar heroin trafficking groups         east of the Mississippi River, there has been no successful, long-term         penetration of the East Coast markets by organizations selling Mexico-produced         heroin.

**Southeast         Asian Heroin**

High-purity         Southeast Asian (SEA) heroin dominated the market in the United States         during the late 1980s and early 1990s. Over the past few years, however,         all indicators point to a decrease in SEA heroin available domestically.         Significant investigations led to the incarceration in Thailand and extradition         to the United States of more than a dozen high-level violators who played         key roles in moving SEA heroin shipments to the United States. SEA heroin         trafficking links run from independent brokers and shippers in Asia through         overseas Chinese criminal populations to ethnic Chinese criminal wholesale         distributors in the United States. In the United States, ethnic Chinese         criminals rely upon local criminal organizations for the distribution         of SEA heroin. Despite the recent decline in the trafficking of SEA heroin         in the United States, Chinese criminal groups remain the most sophisticated         heroin trafficking organizations in the world.

SEA         heroin shipments destined for U.S. markets may transit through China,         Japan, Malaysia, the Philippines, Singapore, Taiwan, or South Korea. Largely         independent U.S.-based ethnic Chinese traffickers control distribution         within the United States, principally in the Northeast and along the East         Coast. During the late 1990s, Vancouver, British Columbia, emerged as         a key operational headquarters for ethnic Chinese criminal elements. These         criminal groups were enmeshed with North American gangs of Asian descent         in transporting SEA heroin to the United States, mainly to the East Coast.         A DEA New York Field Division investigation led to the seizure, in January         2001, of 57 kilograms of SEA heroin from a container ship docked at the         port in Elizabeth, New Jersey. The largest seizure of SEA heroin in recent         years.

Trafficking         groups composed of West African criminals also smuggle SEA heroin to the         United States. Nigerian criminals have been most active in U.S. cities         and areas with well-established Nigerian populations, such as Atlanta,         Baltimore, Houston, Dallas, New York City, Newark, Chicago, and Washington,         D.C. Over the past several years, Chicago has become a hub for heroin         trafficking controlled by Nigerian criminals who primarily deal in SEA         heroin.

**Southwest         Asian Heroin**

While         a large portion of Southwest Asian (SWA) heroin is consumed in Western         Europe, Pakistan, and Iran, traffickers operating from Middle Eastern         locations smuggle SWA heroin to ethnic enclaves in the United States.         Criminal groups composed of ethnic Lebanese, Pakistanis, Turks, and Afghans         are all involved in supplying the drug to U.S.-based groups for retail         distribution. SWA heroin traffickers and wholesale distributors generally         have been consistently cautious, rarely conducting heroin business with         persons not of Southwest Asian or Middle Eastern ethnicity. Therefore,         the ethnic aspect of SWA heroin importation and distribution has made         SWA heroin more prevalent in areas with large Southwest Asian populations.         

West         African traffickers, who primarily smuggled SEA heroin to the United States         in the 1990s, now also deal in SWA heroin. In a particularly noteworthy         seizure of approximately 24 kilograms of heroin in New York in May 2000,         90 percent of the seized heroin consisted of SWA heroin, and the remaining         10 percent was SEA. While unusual, a shipment containing the two types         of heroin is not unexpected. For the last several years, West African         traffickers, based in Bangkok who normally deal in SEA heroin, have been         sending couriers to Pakistan to buy the cheaper Afghanistan-produced SWA         heroin. Heroin in Pakistan is about half the price of SEA heroin in Bangkok         where the West Africans pay between $13,000 and $16,000 for a kilogram.         

The         most recent sizeable seizure of SWA heroin occurred in New York City in         September 200l when officers of the city police department confiscated         approximately 50 kilograms of the substance. According to the Federal-wide         Drug Seizure System, this was one of the largest seizures of powdered         heroin in the past five years.

**Purity**

On the         street, heroin purity and price often reflect the drug's availability.         High purities and low prices, for example, indicate that heroin supplies         are readily available. DEA's Domestic Monitor Program (DMP), a retail         heroin purchase program, tracks urban street-level heroin purity and price.         The most recent data available show that, in 2000, the nationwide average         purity for retail heroin from all sources was 36.8 percent. This number         is significantly higher than the average of 7 percent reported two decades         ago and higher than the 26 percent recorded in 1991. The significant rise         in average purity corresponds to the increased availability of high-purity         SA heroin, particularly in the northeastern United States.

Moreover,         the DMP indicated that the retail purity of SA heroin was the highest         for any source, averaging 48.1 percent in 2000. SWA heroin followed with         a 34.6 percent average and Mexican heroin averaged 20.8 percent. Heroin         purity at the street level generally remained highest in the northeastern         United States, where most of the nation's user population lives. In 2000,         Philadelphia recorded the DMP's highest heroin purity average of 74.0         percent. Over the last several years, Philadelphia has ranked consistently         at or near the top in DMP retail heroin purity levels. In addition, New         York City continues to be one of the major importation and distribution         centers for SA and SEA heroin.

**Prices**

Nationwide,         in 2000, SA heroin ranged from $50,000 to $200,000 per kilogram. SEA and         SWA heroin ranged in price from $40,000 to $190,000 per kilogram. Wholesale-level         prices for Mexican heroin were the lowest of any type, ranging from $13,200         to $175,000 per kilogram. The wide range in kilogram prices reflects variables         such as buyer/seller relationships, quantities purchased, purchase frequencies,         purity, and transportation costs.

**Seizures**

FDSS         statistics indicate that U.S. federal law enforcement authorities seized         2,506 kilograms of heroin in 2001, compared to 1,673 kilograms in 2000.

**METHAMPHETAMINE**

Domestic         methamphetamine production, trafficking, and abuse are concentrated in         the western, southwestern, and midwestern United States. Methamphetamine         is also increasingly available in portions of the South and eastern United         States, especially Georgia and Florida. Clandestine laboratories in California         and Mexico are the primary sources of supply for methamphetamine available         in the United States. 

Over         the last decade, the methamphetamine trafficking and abuse situation in         the United States changed dramatically. In 1994, ethnic Mexican drug trafficking         organizations operating "super labs" (laboratories capable of         producing in excess of 10 pounds of methamphetamine in one 24-hour production         cycle) based in Mexico and in California began to take control of the         production and distribution of methamphetamine domestically. Independent         laboratory operators, including outlaw motorcycle gangs, previously maintained         control of methamphetamine production and distribution within the United         States, and continue to operate today on a lesser scale. The entry of         ethnic Mexican traffickers into the methamphetamine trade in the mid-1990s         resulted in a significant increase in the supply of the drug. Mexican         criminal organizations, based in Mexico and California, provided high-purity,         low-cost methamphetamine originally to cities in the Midwest and West         with Mexican populations. 

In 2001,         approximately 8,000 clandestine methamphetamine laboratories were seized         and reported to the National Clandestine Laboratory Database at the El         Paso Intelligence Center (EPIC). In 2001, 298 seized super labs were reported         to EPIC. This represents a rise in the number of superlabs from 2000,         in which the total number of superlabs totaled 168. Further, for all of         calendar year 2000, the Tijuana Residence Office (TJRO) reported only         two seized methamphetamine laboratories. During calendar year 2001, the         number of clandestine laboratories seized in Baja California Norte increased         substantially, with 24 clandestine laboratories seized as of December         2001. The majority of these laboratories have been seized in the cities         of Tijuana and Mexicali. Due to the proximity of these laboratories to         the United States, it is believed that the majority of the methamphetamine         was bound for the United States. 

According         to EPIC, the methamphetamine seized annually in transit from Mexico to         the United States has increased dramatically since 1992. Authorities seized         1,370 kilograms of methamphetamine along the border in 2001, compared         with only 6.5 kilograms in 1992. The primary points of entry into the         United States for methamphetamine produced in Mexico have traditionally         been California ports of entry, particularly San Ysidro. Although a great         amount of methamphetamine still transits this area, ports of entry in         South Texas have experienced increases in smuggling activity, although         this activity appears to be stabilizing. The most common method of transporting         methamphetamine is within concealed compartments in passenger vehicles.

The         supply of methamphetamine in the United States also stems from multiple         small-scale laboratories, often operated by independent cooks who obtain         the ingredients necessary for manufacture from retail and convenience         stores. Methamphetamine produced in these "mom-and-pop" laboratories         is generally for personal use or limited distribution. A clandestine laboratory         operator can use relatively common items, such as mason jars, coffee filters,         hot plates, pressure cookers, pillowcases, plastic tubing, and gas cans         to substitute for sophisticated laboratory equipment. The growing use         of the Internet, which provides access to methamphetamine "recipes,"         coupled with increased demand for high-purity product, has resulted in         a dramatic increase in the number of mom-and-pop laboratories throughout         the United States. In 2001, the number of labs with capacities under ten         pounds totaled over 7,700.

Methamphetamine         precursor chemicals diverted to large clandestine laboratories in the         United States are usually dosage-form pseudoephedrine or ephedrine drug         products. Because of law enforcement attention and strong state precursor         control laws in California, traffickers have now diversified to pseudoephedrine         suppliers nationwide, buying at relatively lower prices in other parts         of the country and trafficking the product to California, where the black         market price can bring up to $5,000 per pound of product.

Nationwide         networks of suppliers, working together, now provide ton quantities of         pseudoephedrine tablet products to the market in California and to distributors         in other states. The latter divert the product to local methamphetamine         laboratories. Small-scale lab operators commonly buy over-the-counter         pseudoephedrine products in small amounts from legitimate retailers. Recent         reporting indicates that Canadian companies are a major source of supply         for pseudoephedrine destined for U.S. laboratories because of minimal         chemical controls in Canada. On March 7, 2002, search warrants were served         on two residences, one in Paramount and the other in Lynwood, California.         Four hundred containers of 25,000 count pseudoephedrine jars, or "pickle         jars," (approximately 10,000,000 tablets) and $1,502,000 USC were         seized. The pseudoephedrine is believed to have originated in Canada.

Pseudoephedrine         and ephedrine are also purchased from unscrupulous U.S. distributors who         sell case quantities of the tablets. Ultimately, the tablets are destined         for California where they are manufactured into multiple pounds of methamphetamine.         The finished methamphetamine is then distributed throughout the United         States through preexisting smuggling methods to the traffickers. 

In addition,         the use of methylsulfonylmethane (MSM) has been encountered as a "cut"         in methamphetamine produced primarily by Mexican organizations. Legitimately         used as a dietary supplement for horses and humans, MSM is readily available         at feed and livestock stores, as well as health and nutrition stores.         The addition of MSM can be used to add volume to the finished methamphetamine,         thus increasing the profit. Increases in the use of MSM may be a signal         of difficulty in obtaining precursors, or a simple marketing method to         meet demand while increasing profit.

The         crystalline form of methamphetamine, known as "ice," "glass,"         or "crystal," is gaining popularity. Converted from powder by         criminal elements in Southeast Asia, Mexico, and the United States, ice         traditionally was used in Hawaii and southern California. More recently,         its use has spread along the West Coast and Southwest border areas.

The         importation of methamphetamine tablets from Southeast Asia, primarily         via the mail system, remains a potential threat. Produced mainly by the         United Wa State Army, the largest heroin and methamphetamine trafficking         group in Burma, the tablets, which weigh approximately 90 milligrams (mg),         typically contain 25 to 30 mg of methamphetamine, and 45 to 65 mg of caffeine.         Although it is believed that the tablets are trafficked primarily by ethnic         Thais or Laotians for use in the Asian community, it is possible that         larger amounts will be smuggled into the United States if demand increases         outside that community. 

**Purity**

Until         1999, the methamphetamine problem was increasing at an alarming rate.         International chemical control efforts reduced the supply of those chemicals         needed to produce high-quality methamphetamine. As a result, the national         purity level for methamphetamine has decreased dramatically. The average         purity of methamphetamine exhibits seized by DEA dropped from 71.9 percent         in 1994 to 30.7 percent in 1999. The average purity of methamphetamine         exhibits seized by DEA in 2000 rose slightly to 35.3 percent and 40.1         in 2001.

**Prices**

Methamphetamine         prices vary throughout different regions of the United States. At the         distribution level, prices range from $3,500 per pound in parts of California         and Texas to $21,000 per pound in southeastern and northeastern regions         of the country. Retail prices range from $400 to $3,000 per ounce.

**Seizures**

According         to the FDSS, U.S. federal authorities seized a total of 2,807 kilograms         of methamphetamine in 2001 compared to 3,373 kilograms in 2000. 

In 2000,         authorities seized 301,697 SEA methamphetamine tablets in U.S. Postal         Service facilities in Oakland, Los Angeles, and Honolulu. This represents         an 656-percent increase from the 1999 seizure total of 39,917. 

**MARIJUANA**

Marijuana         is the most widely abused and readily available illicit drug in the United         States, with an estimated 11.5 million current users. At least one-third         of the U.S. population has used marijuana sometime in their lives. The         drug is considered a "gateway" to the world of illicit drug         abuse. Relaxed public perception of harm, popularization by the media         and by groups advocating legalization, along with the trend of smoking         marijuana-filled cigars known as "blunts," contribute to the         nationwide resurgence in marijuana's popularity.

The         Internet also contributes to marijuana's popularity. Websites exist that         provide information and links extolling the virtues of marijuana. These         sites provide forums for user group discussions, post documents and messages         for public discussions, and advocate the "legal" sale of marijuana.         Several web sites advertising the sale of marijuana and providing instructions         on home grows have also been identified.

Marijuana         smuggled into the United States, whether grown in Mexico or transshipped         from other Latin American source areas, accounts for most of the marijuana         available in the United States. Marijuana produced in Mexico remains the         most widely available. Moreover, high-potency marijuana enters the U.S.         drug market from Canada. The availability of marijuana from Southeast         Asia generally is limited to the West Coast. U.S. drug law enforcement         reporting also suggests increased availability of domestically grown marijuana.

**Domestic         Marijuana**

According         to 2000 Domestic Cannabis Eradication/Suppression Program (DCE/SP) statistics,         the five leading states for indoor growing activity were California, Florida,         Oregon, Washington, and Wisconsin. DCE/SP statistics indicate that the         major outdoor growing states in 2000 were California, Hawaii, Kentucky,         and Tennessee; these states accounted for approximately three-quarters         of the total of eradicated outdoor cultivated plants. 

**Mexican         Marijuana**

Organized         crime groups operating from Mexico have smuggled marijuana into the United         States since the early 1970s. These groups maintain extensive networks         of associates, often related through familial or regional ties to associates         living in the United States, where they control polydrug smuggling and         wholesale distribution from hub cities to retail markets throughout the         United States. 

Groups         operating from Mexico employ a variety of transportation and concealment         methods to smuggle marijuana into the United States. Most of the marijuana         smuggled into the United States is concealed in vehicles - often in false         compartments - or hidden in shipments of legitimate agricultural or industrial         products. Marijuana also is smuggled across the border by rail, horse,         raft, and backpack. Shipments of 20 kilograms or less are smuggled by         pedestrians who enter the United States at border checkpoints and by backpackers         who, alone or in groups ("mule trains"), cross the border at         more remote locations. Jamaican organizations also appear to be involved         in dispatching Mexican marijuana via parcel carriers. 

Organized         crime groups operating from Mexico conceal marijuana in an array of vehicles,         including commercial vehicles, private automobiles, pickup trucks, vans,         mobile homes, and horse trailers, driven through border ports of entry.         Larger shipments ranging up to multithousand kilograms are usually smuggled         in tractor-trailers, such as the 6.9 metric tons of marijuana seized on         April 3, 2001, by USCS officials from a tractor-trailer at the Otay Mesa,         California, port of entry. The marijuana packages had been wrapped in         cellophane, coated with mustard, grease, and motor oil, and commingled         in a load of television sets. 

Besides         overland smuggling, drug traffickers use ocean vessels to move Mexican         marijuana up the coast of Mexico to U.S. ports, drop-off sites along the         U.S. coast, or to rendezvous points with other boats bound for the United         States. Law enforcement authorities in southern California indicate that         marijuana is transferred from mother ships in international waters to         Mexican fishing vessels. The smaller vessels then deliver the marijuana         to overland smugglers on the Mexican Baja California Peninsula. From there,         the marijuana is generally moved to border transit points and then carried         to the Los Angeles metropolitan area for distribution to eastern markets.         

**Canadian         Marijuana**

Canada         is becoming a source country for indoor-grown, high-potency (15 to 25         percent THC) marijuana destined for the United States. Canadian law enforcement         intelligence indicates that marijuana traffickers there are increasingly         cultivating cannabis indoors. Such indoor-grow operations have become         an enormous and lucrative illicit industry, producing a potent form of         marijuana that has come to be known as "BC Bud." Canadian officials         estimate that cannabis cultivation in British Columbia is a billion-dollar         industry, and that traffickers smuggle a significant portion of the Canadian         harvest into the United States. 

**Prices         and Potency (THC Content)**

Prices         for commercial-grade marijuana have remained relatively stable over the         past decade, ranging from approximately $400 to $1,000 per pound in U.S.         Southwest border areas to between $700 to $2000 per pound in the Midwest         and northeastern United States. The national price range for sinsemilla,         a higher quality marijuana usually grown domestically, is between $900         and $6,000 per pound. BC Bud sells for between $1,500 and $2,000 per pound         in Vancouver; but when smuggled into the United States, it sells for between         $5,000 and $8,000 per pound in major metropolitan areas.

During         the past two decades, marijuana potency has increased. According to the         University of Mississippi's 2000 Marijuana Potency Monitoring Project         (MPMP), commercial-grade marijuana THC levels rose from under 2 percent         in the late 1970s and early 1980s to 6.07 percent in 2000. The MPMP reports         that sinsemilla potency also increased, rising from 6 percent in the late         1970s and 1980s to 13.20 percent in 2000.

**Seizures**

According         to the FDSS, U.S. federal authorities seized 1,211 metric tons of marijuana         in 2001 compared to 1,236 metric tons in 2000.

**MDMA**

Commonly         referred to as Ecstasy, XTC, Clarity, or Essence, 3, 4-methylenedioxymethamphetamine         (MDMA) is a synthetic psychoactive drug possessing stimulant and mild         hallucinogenic properties. In the early 1990s, MDMA became increasingly         popular among European youth. However, it is within the last five years         that MDMA use in the United States has increased at an alarming rate.

MDMA         is popular among middle-class adolescents and young adults. MDMA is increasingly         becoming an abuse problem because many users view it as nonaddictive and         benign. MDMA is sold primarily at legitimate nightclubs and bars, at underground         nightclubs sometimes called "acid houses," or at all-night parties         known as "raves."

MDMA         tablets range in weight from 150 to 350 mg and contain between 70 to 120         mg of MDMA. The profit margin associated with MDMA trafficking is significant.         It costs as little as 25 to 50 cents to manufacture an MDMA tablet in         Europe, but the street value of that same MDMA tablet can be as high as         $40, with a tablet typically selling for between $20 and $30. 

Although         the vast majority of MDMA consumed domestically is produced in Europe,         a limited number of MDMA laboratories operate in the United States. Law         enforcement seized 17 clandestine MDMA laboratories in the United States         in 2001 compared to 7 seized in 2000. It should be noted that these laboratories         were primarily capable of limited drug production. While recipes for the         clandestine production of MDMA can be found on the Internet, acquiring         the necessary precursor chemicals in the United States is difficult.

MDMA         is manufactured clandestinely in Western Europe, particularly in the Netherlands         and to a lesser extent in Belgium. Much of the MDMA is manufactured in         the southeast section of the Netherlands near Maastricht. Despite the         Dutch Government's efforts to curtail MDMA trafficking, the Netherlands         remains a primary source country for the drug. International MDMA traffickers         based in the Netherlands and Belgium, and a significant number of U.S.-based         traffickers who coordinate MDMA shipments to major metropolitan areas         of the United States sometimes use Montreal and Toronto as transit points.         In December 2000, the Royal Canadian Mounted Police (RCMP) seized approximately         150,000 MDMA tablets in Toronto that had been shipped via DHL from Brussels,         Belgium, by an Israeli MDMA trafficking organization. The shipment was         destined for distributors in the United States. 

Due         to the availability of precursor chemicals in Canada, a number of MDMA         laboratories have been discovered operating near metropolitan areas such         as Vancouver, Toronto, and Montreal. Such laboratories continue to supply         U.S. and Canadian-based MDMA trafficking organizations. According to the         RCMP, the total potential yield of MDMA from laboratories uncovered in         Canada since 1999 is in excess of 10 million tablets. 

Another         emerging trend is the use of Mexico as a transit zone for MDMA entering         the United States. During 2000, several seizures were reported in or destined         for Mexico. In September 2000, Dutch authorities seized a 1.25 million-tablet         shipment of MDMA destined for Mexico. Previously, in April 2000, a shipment         of 200,000 MDMA tablets was seized at the airport in Mexico City. The         MDMA was discovered in an air cargo shipment manifested as aircraft parts         sent from the Netherlands and destined for the United States.

In recent         years, traffickers have begun to tap the potential of the Caribbean and         South America as alternative routes for moving synthetic drugs, predominantly         MDMA, from Europe to the United States. The region's numerous and established         drug transportation groups, extensive network of commercial flights, abundance         of couriers, and historic connections to Europe provide traffickers with         the means to route synthetic drugs through South America and the Caribbean         to the United States. Available seizure and investigative information         indicates that practically all of the MDMA transiting South America and         the Caribbean is transported from Europe on commercial flights. Thus far         the Caribbean has overshadowed South America as a transit zone for European         MDMA destined to the United States. 

USCS         statistics show a dramatic increase in seizures of MDMA tablets. In FY         1997, approximately 400,000 MDMA tablets were seized compared to approximately         7.2 million tablets seized in FY 2001. On July 22, 2000, approximately         2.1 million tablets were seized in Los Angeles. To date, this is the largest         seizure of MDMA tablets in the United States. 

**LSD**

Lysergic         acid diethylamide (LSD) remains available in retail quantities in virtually         every state. LSD production reportedly is centered on the West Coast,         particularly in San Francisco, northern California, the Pacific Northwest,         and recently the Midwest. Since the 1960s, LSD has been manufactured illegally         within the United States. LSD production is a time-consuming and complex         procedure. Several chemical recipes for synthesizing LSD are on the Internet,         but clandestine production requires a high degree of chemical expertise.         Chemists maintain tight control at the production level, but do not necessarily         participate in the distribution of the drug. These chemists usually sell         the crystal LSD product to one or two trusted associates, insulating themselves         from the wholesale distributors.

Few         LSD laboratories have ever been seized in the United States because of         infrequent and irregular production cycles. In 2000, DEA seized one LSD         laboratory that was located in a converted missile silo in Kansas. LSD         is produced in crystal form that is converted to liquid and distributed         primarily in the form of squares of blotter paper saturated with the liquid.         To a lesser extent, LSD is sold as a liquid, contained in breath mint         bottles and vials; in gelatin tab form ("window panes") of varying         colors; and in pill form known as "microdots."

Distribution         of LSD is unique within the drug culture. A proliferation of mail order         sales has created a marketplace where the sellers are virtually unknown         to the buyers, giving the highest level traffickers considerable insulation         from drug law enforcement operations. The vast majority of users are middle-class         adolescents and young adults attracted by its low prices. Rock concerts         continue to be favorite distribution sites for LSD traffickers; however,         distribution at raves throughout the United States is becoming more popular.         Contacts made at raves and concerts are used to establish future transactions         and shipments of larger quantities of LSD.

**PCP**

Phencyclidine         (PCP), a clandestinely manufactured hallucinogen commonly used in conjunction         with marijuana, causes users to feel detached from their surroundings         and, in some cases, paranoid and violent. PCP production is centered in         the greater Los Angeles metropolitan area. During the late 1980s and early         1990s, the widespread availability and use of crack cocaine displaced         demand for PCP. More recently, however, reporting suggests that PCP abuse         is increasing slightly in many cities, as some crack addicts return to         the use of this drug. DEA reporting indicates that many large seizures         of PCP have occurred in Texas. Every seizure of PCP had originated in         the Los Angeles metropolitan area and was primarily destined for Houston.         

Since         2000, four major seizures of PCP have occurred in Sierra Blanca, Texas,         alone: approximately 6 kilograms of PCP were seized on April 21, 2000;         2 kilograms seized on December 12, 2000; 1,773 dosage units of liquid         PCP seized on June 11, 2001; and 33 kilograms of liquid PCP on July 31,         2001. DEA, state, and local authorities also seized four PCP laboratories         in 2000 and five in 2001.

**FLUNITRAZEPAM**

Flunitrazepam         is sold under the trade name Rohypnol, from which the street name "Rophy"         is derived. Other street names include "circles," "Mexican         valium," "roofies," and "R-2." Flunitrazepam         is a depressant used in the treatment of short-term insomnia and as a         hypnotic sedative and pre-anesthetic medication. 

Flunitrazepam         is manufactured worldwide, particularly in Europe and Latin America, where         it is sold legally by prescription. This drug is neither manufactured         nor approved for medical use in the United States. Distributors in Texas         allegedly travel to Mexico to obtain the drug. In addition, Colombian         sources of supply smuggle flunitrazepam into South Florida via international         mail services and/or couriers using commercial airlines.

According         to law enforcement officials in south Florida, flunitrazepam is routinely         referred to as a "club drug," since it is popular in local nightclubs.         It is also referred to as the "date rape drug," characteristically         causing the victim to experience short-term memory loss after ingestion.         It is ingested orally, frequently in conjunction with alcohol or other         drugs. High school and college students are the most frequent users of         flunitrazepam, commonly using it as an "alcohol extender." Young         people also have the misconception that flunitrazepam is unadulterated,         and, therefore, "safe" because of pre-sealed bubble packaging.

**GHB/GBL**

GHB         (gamma hydroxybutyrate), a central nervous system depressant, was banned         by the FDA in 1990. On February 18, 2000, President William J. Clinton         signed the Hillory J. Farias and Samantha Reid Date-Rape Prohibition Act         of 2000. This legislation makes GHB a Schedule I drug under the Controlled         Substance Act (CSA).

GHB         generates feelings of euphoria and intoxication. It is often combined         in a carbonated, alcohol, or health food drink, and is reportedly popular         among adolescents and young adults attending raves and nightclubs. At         lower doses, GHB causes drowsiness, nausea, and visual disturbances. At         higher dosages, unconsciousness, seizures, severe respiratory depression,         and coma can occur.

GHB         has been used in the commission of sexual assaults because it renders         the victim incapable of resisting, and may cause memory problems that         could complicate case prosecution. GHB recipes are accessible over the         Internet; the drug is simple to manufacture, and can be made in a bathtub         or even a Pyrex baking dish. DEA, along with state and local law enforcement         agencies, seized 13 GHB laboratories in 2001, 5 of which were located         in California, compared to 20 GHB laboratories in 2000 with 12 of these         seized in California. 

GBL         (gamma butyrolactone), an analog of GHB, is also abused. GBL is a chemical         used in many industrial cleaners and it also has been marketed as a health         supplement. GBL is synthesized by the body to produce GHB. One 55-gallon         drum yields 240,000 capfuls of GBL. One capful sells for $8.00, potentially         yielding 1.9 million dollars per 55-gallon drum.

**STEROIDS**

The         Anabolic Steroid Control Act was passed by Congress in the fall of 1990         and became effective on February 21, 1991. The Steroid Act classified         27 steroids as Schedule III substances under the CSA. Street prices of         anabolic steroids have increased substantially as a result. 

Fitness         clubs have been, and continue to be, the primary distribution centers         of steroids, since bodybuilders and weightlifters comprise a predominant         portion of the user population. Once viewed as a problem strictly associated         with professional athletes, a recent survey of students indicates increased         steroid use among boys in the 8th and 10th grades. The percentage of 8th         grade boys reporting past-year use of steroids increased from 1.6 percent         in 1998 to 2.5 percent in 1999, and from 1.9 percent to 2.8 percent among         10th grade boys. 

Anabolic         steroids are illicitly smuggled from Mexico and European countries to         the United States. Recent DEA reporting indicates that Russian, Romanian,         and Greek nationals are significant traffickers of steroids and are responsible         for substantial shipments of steroids entering the United States. The         lack of international control over foreign sources of supply, however,         makes it impossible to attack the trafficking at its source. |
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