H. R. 3216
One Hundred Third Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Tuesday,
the fifth day of January, one thousand nine hundred and ninety-three
An Act
To amend the Comprehensive Drug Abuse Prevention and Control Act of 1970
to control the diversion of certain chemicals used in the illicit production of
controlled substances such as methcathinone and methamphetamine, and for
other purposes.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Domestic Chemical Diversion
Control Act of 1993’’.
SEC. 2. DEFINITION AMENDMENTS.
(a) DEFINITIONS.—Section 102 of the Controlled Substances Act
(21 U.S.C. 802) is amended—
(1) in paragraph (33), by striking ‘‘any listed precursor
chemical or listed essential chemical’’ and inserting ‘‘any list
I chemical or any list II chemical’’;
(2) in paragraph (34)—
(A) by striking ‘‘listed precursor chemical’’ and insert-
ing ‘‘list I chemical’’; and
(B) by striking ‘‘critical to the creation’’ and inserting
‘‘important to the manufacture’’;
(3) in paragraph (34) (A), (F), and (H), by inserting ‘‘,
its esters,’’ before ‘‘and’’;
(4) in paragraph (35)—
(A) by striking ‘‘listed essential chemical’’ and inserting
‘‘list II chemical’’;
(B) by inserting ‘‘(other than a list I chemical)’’ before
‘‘specified’’; and
(C) by striking ‘‘as a solvent, reagent, or catalyst’’;
and
(5) in paragraph (38), by inserting ‘‘or who acts as a broker
or trader for an international transaction involving a listed
chemical, a tableting machine, or an encapsulating machine’’
before the period;
(6) in paragraph (39)(A)—
(A) by striking ‘‘importation or exportation of’’ and
inserting ‘‘importation, or exportation of, or an inter-
national transaction involving shipment of,’’;
(B) in clause (iii) by inserting ‘‘or any category of
transaction for a specific listed chemical or chemicals’’ after
‘‘transaction’’;
(C) by amending clause (iv) to read as follows:
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H. R. 3216—2
‘‘(iv) any transaction in a listed chemical that is con-
tained in a drug that may be marketed or distributed
lawfully in the United States under the Federal Food,
Drug, and Cosmetic Act (21 U.S.C. 301 et seq.) unless—
‘‘(I)(aa) the drug contains ephedrine or its salts,
optical isomers, or salts of optical isomers as the only
active medicinal ingredient or contains ephedrine or
its salts, optical isomers, or salts of optical isomers
and therapeutically insignificant quantities of another
active medicinal ingredient; or
‘‘(bb) the Attorney General has determined under
section 204 that the drug or group of drugs is being
diverted to obtain the listed chemical for use in the
illicit production of a controlled substance; and
‘‘(II) the quantity of ephedrine or other listed
chemical contained in the drug included in the trans-
action or multiple transactions equals or exceeds the
threshold established for that chemical by the Attorney
General.’’; and
(D) in clause (v), by striking the semicolon and insert-
ing ‘‘which the Attorney General has by regulation des-
ignated as exempt from the application of this title and
title III based on a finding that the mixture is formulated
in such a way that it cannot be easily used in the illicit
production of a controlled substance and that the listed
chemical or chemicals contained in the mixture cannot
be readily recovered;’’;
(7) in paragraph (40), by striking ‘‘listed precursor chemical
or a listed essential chemical’’ each place it appears and insert-
ing ‘‘list I chemical or a list II chemical’’; and
(8) by adding at the end the following new paragraphs:
‘‘(42) The term ‘international transaction’ means a transaction
involving the shipment of a listed chemical across an international
border (other than a United States border) in which a broker
or trader located in the United States participates.
‘‘(43) The terms ‘broker’ and ‘trader’ mean a person that assists
in arranging an international transaction in a listed chemical by—
‘‘(A) negotiating contracts;
‘‘(B) serving as an agent or intermediary; or
‘‘(C) bringing together a buyer and seller, a buyer and
transporter, or a seller and transporter.’’.
(b) REMOVAL OF EXEMPTION OF CERTAIN DRUGS.—
(1) PROCEDURE.—Part B of the Controlled Substances Act
(21 U.S.C. 811 et seq.) is amended by adding at the end the
following new section:
‘‘REMOVAL OF EXEMPTION OF CERTAIN DRUGS
‘‘SEC. 204. (a) REMOVAL OF EXEMPTION.—The Attorney General
shall by regulation remove from exemption under section
102(39)(A)(iv) a drug or group of drugs that the Attorney General
finds is being diverted to obtain a listed chemical for use in the
illicit production of a controlled substance.
‘‘(b) FACTORS TO BE CONSIDERED.—In removing a drug or group
of drugs from exemption under subsection (a), the Attorney General
shall consider, with respect to a drug or group of drugs that is
proposed to be removed from exemption—
‘‘(1) the scope, duration, and significance of the diversion;
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H. R. 3216—3
‘‘(2) whether the drug or group of drugs is formulated
in such a way that it cannot be easily used in the illicit
production of a controlled substance; and
‘‘(3) whether the listed chemical can be readily recovered
from the drug or group of drugs.
‘‘(c) SPECIFICITY OF DESIGNATION.—The Attorney General shall
limit the designation of a drug or a group of drugs removed from
exemption under subsection (a) to the most particularly identifiable
type of drug or group of drugs for which evidence of diversion
exists unless there is evidence, based on the pattern of diversion
and other relevant factors, that the diversion will not be limited
to that particular drug or group of drugs.
‘‘(d) REINSTATEMENT OF EXEMPTION WITH RESPECT TO PARTICU-
LAR DRUG PRODUCTS.—
‘‘(1) REINSTATEMENT.—On application by a manufacturer
of a particular drug product that has been removed from exemp-
tion under subsection (a), the Attorney General shall by regula-
tion reinstate the exemption with respect to that particular
drug product if the Attorney General determines that the
particular drug product is manufactured and distributed in
a manner that prevents diversion.
‘‘(2) FACTORS TO BE CONSIDERED.—In deciding whether to
reinstate the exemption with respect to a particular drug prod-
uct under paragraph (1), the Attorney General shall consider—
‘‘(A) the package sizes and manner of packaging of
the drug product;
‘‘(B) the manner of distribution and advertising of the
drug product;
‘‘(C) evidence of diversion of the drug product;
‘‘(D) any actions taken by the manufacturer to prevent
diversion of the drug product; and
‘‘(E) such other factors as are relevant to and consistent
with the public health and safety, including the factors
described in subsection (b) as applied to the drug product.
‘‘(3) STATUS PENDING APPLICATION FOR REINSTATEMENT.—
A transaction involving a particular drug product that is the
subject of a bona fide pending application for reinstatement
of exemption filed with the Attorney General not later than
60 days after a regulation removing the exemption is issued
pursuant to subsection (a) shall not be considered to be a
regulated transaction if the transaction occurs during the pend-
ency of the application and, if the Attorney General denies
the application, during the period of 60 days following the
date on which the Attorney General denies the application,
unless—
‘‘(A) the Attorney General has evidence that, applying
the factors described in subsection (b) to the drug product,
the drug product is being diverted; and
‘‘(B) the Attorney General so notifies the applicant.
‘‘(4) 
AMENDMENT
AND
MODIFICATION.—A 
regulation
reinstating an exemption under paragraph (1) may be modified
or revoked with respect to a particular drug product upon
a finding that—
‘‘(A) applying the factors described in subsection (b)
to the drug product, the drug product is being diverted;
or
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H. R. 3216—4
‘‘(B) there is a significant change in the data that
led to the issuance of the regulation.’’.
(2) CLERICAL AMENDMENT.—The table of contents of the
Comprehensive Drug Abuse Prevention and Control Act of 1970
(84 Stat. 1236) is amended by adding at the end of that portion
relating to part B of title II the following new item:
‘‘Sec. 204. Removal of exemption of certain drugs.’’.
(c) REGULATION
OF LISTED CHEMICALS.—Section 310 of the
Controlled Substances Act (21 U.S.C. 830) is amended—
(1) in subsection (a)(1)—
(A) by striking ‘‘precursor chemical’’ and inserting ‘‘list
I chemical’’; and
(B) in subparagraph (B), by striking ‘‘an essential
chemical’’ and inserting ‘‘a list II chemical’’; and
(2) in subsection (c)(2)(D), by striking ‘‘precursor chemical’’
and inserting ‘‘chemical control’’.
SEC. 3. REGISTRATION REQUIREMENTS.
(a) RULES AND REGULATIONS.—Section 301 of the Controlled
Substances Act (21 U.S.C. 821) is amended by striking the period
and inserting ‘‘and to the registration and control of regulated
persons and of regulated transactions.’’.
(b) PERSONS REQUIRED TO REGISTER UNDER SECTION 302.—
Section 302 of the Controlled Substances Act (21 U.S.C. 822) is
amended—
(1) in subsection (a)(1), by inserting ‘‘or list I chemical’’
after ‘‘controlled substance’’ each place it appears;
(2) in subsection (b)—
(A) by inserting ‘‘or list I chemicals’’ after ‘‘controlled
substances’’; and
(B) by inserting ‘‘or chemicals’’ after ‘‘such substances’’;
(3) in subsection (c), by inserting ‘‘or list I chemical’’ after
‘‘controlled substance’’ each place it appears; and
(4) in subsection (e), by inserting ‘‘or list I chemicals’’
after ‘‘controlled substances’’.
(c) REGISTRATION REQUIREMENTS UNDER SECTION 303.—Section
303 of the Controlled Substances Act (21 U.S.C. 823) is amended
by adding at the end the following new subsection:
‘‘(h) The Attorney General shall register an applicant to distrib-
ute a list I chemical unless the Attorney General determines that
registration of the applicant is inconsistent with the public interest.
Registration under this subsection shall not be required for the
distribution of a drug product that is exempted under section
102(39)(A)(iv). In determining the public interest for the purposes
of this subsection, the Attorney General shall consider—
‘‘(1) maintenance by the applicant of effective controls
against diversion of listed chemicals into other than legitimate
channels;
‘‘(2) compliance by the applicant with applicable Federal,
State, and local law;
‘‘(3) any prior conviction record of the applicant under
Federal or State laws relating to controlled substances or to
chemicals controlled under Federal or State law;
‘‘(4) any past experience of the applicant in the manufacture
and distribution of chemicals; and
‘‘(5) such other factors as are relevant to and consistent
with the public health and safety.’’.
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H. R. 3216—5
(d) DENIAL, REVOCATION, OR SUSPENSION OF REGISTRATION.—
Section 304 of the Controlled Substances Act (21 U.S.C. 824) is
amended—
(1) in subsection (a)—
(A) by inserting ‘‘or a list I chemical’’ after ‘‘controlled
substance’’ each place it appears; and
(B) by inserting ‘‘or list I chemicals’’ after ‘‘controlled
substances’’;
(2) in subsection (b), by inserting ‘‘or list I chemical’’ after
‘‘controlled substance’’;
(3) in subsection (f), by inserting ‘‘or list I chemicals’’ after
‘‘controlled substances’’ each place it appears; and
(4) in subsection (g)—
(A) by inserting ‘‘or list I chemicals’’ after ‘‘controlled
substances’’ each place it appears; and
(B) by inserting ‘‘or list I chemical’’ after ‘‘controlled
substance’’ each place it appears.
(e) PERSONS REQUIRED TO REGISTER UNDER SECTION 1007.—
Section 1007 of the Controlled Substances Import and Export Act
(21 U.S.C. 957) is amended—
(1) in subsection (a)—
(A) in paragraph (1), by inserting ‘‘or list I chemical’’
after ‘‘controlled substance’’; and
(B) in paragraph (2), by striking ‘‘in schedule I, II,
III, IV, or V,’’ and inserting ‘‘or list I chemical,’’; and
(2) in subsection (b)—
(A) in paragraph (1), by inserting ‘‘or list I chemical’’
after ‘‘controlled substance’’ each place it appears; and
(B) in paragraph (2), by inserting ‘‘or list I chemicals’’
after ‘‘controlled substances’’.
(f) REGISTRATION REQUIREMENTS UNDER SECTION 1008.—Sec-
tion 1008 of the Controlled Substances Import and Export Act
(21 U.S.C. 958) is amended—
(1) in subsection (c)—
(A) by inserting ‘‘(1)’’ after ‘‘(c)’’; and
(B) by adding at the end the following new paragraph:
‘‘(2)(A) The Attorney General shall register an applicant to
import or export a list I chemical unless the Attorney General
determines that registration of the applicant is inconsistent with
the public interest. Registration under this subsection shall not
be required for the import or export of a drug product that is
exempted under section 102(39)(A)(iv).
‘‘(B) In determining the public interest for the purposes of
subparagraph (A), the Attorney General shall consider the factors
specified in section 303(h).’’;
(2) in subsection (d)—
(A) in paragraph (3), by inserting ‘‘or list I chemical
or chemicals,’’ after ‘‘substances,’’; and
(B) in paragraph (6), by inserting ‘‘or list I chemicals’’
after ‘‘controlled substances’’ each place it appears;
(3) in subsection (e), by striking ‘‘and 307’’ and inserting
‘‘307, and 310’’; and
(4) in subsections (f), (g), and (h), by inserting ‘‘or list
I chemicals’’ after ‘‘controlled substances’’ each place it appears.
(g) PROHIBITED ACTS C.—Section 403(a) of the Controlled Sub-
stances Act (21 U.S.C. 843(a)) is amended—
(1) by amending paragraphs (6) and (7) to read as follows:
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H. R. 3216—6
‘‘(6) to possess any three-neck round-bottom flask, tableting
machine, encapsulating machine, or gelatin capsule, or any
equipment, chemical, product, or material which may be used
to manufacture a controlled substance or listed chemical, know-
ing, intending, or having reasonable cause to believe, that it
will be used to manufacture a controlled substance or listed
chemical in violation of this title or title III;
‘‘(7) to manufacture, distribute, export, or import any three-
neck round-bottom flask, tableting machine, encapsulating
machine, or gelatin capsule, or any equipment, chemical, prod-
uct, or material which may be used to manufacture a controlled
substance or listed chemical, knowing, intending, or having
reasonable cause to believe, that it will be used to manufacture
a controlled substance or listed chemical in violation of this
title or title III or, in the case of an exportation, in violation
of this title or title III or of the laws of the country to which
it is exported;’’;
(2) by striking the period at the end of paragraph (8)
and inserting ‘‘; or’’; and
(3) by adding at the end the following new paragraph:
‘‘(9) to distribute, import, or export a list I chemical without
the registration required by this title or title III.’’.
SEC. 4. REPORTS BY BROKERS AND TRADERS; CRIMINAL PENALTIES.
(a) NOTIFICATION, SUSPENSION OF SHIPMENT, AND PENALTIES
WITH RESPECT
TO IMPORTATION
AND EXPORTATION
OF LISTED
CHEMICALS.—Section 1018 of the Controlled Substances Import and
Export Act (21 U.S.C. 971) is amended by adding at the end the
following new subsection:
‘‘(d) A person located in the United States who is a broker
or trader for an international transaction in a listed chemical that
is a regulated transaction solely because of that person’s involve-
ment as a broker or trader shall, with respect to that transaction,
be subject to all of the notification, reporting, recordkeeping, and
other requirements placed upon exporters of listed chemicals by
this title and title II.’’.
(b) PROHIBITED ACTS A.—Section 1010(d) of the Controlled Sub-
stances Import and Export Act (21 U.S.C. 960(d)) is amended to
read as follows:
‘‘(d) A person who knowingly or intentionally—
‘‘(1) imports or exports a listed chemical with intent to
manufacture a controlled substance in violation of this title
or title II;
‘‘(2) exports a listed chemical in violation of the laws of
the country to which the chemical is exported or serves as
a broker or trader for an international transaction involving
a listed chemical, if the transaction is in violation of the laws
of the country to which the chemical is exported;
‘‘(3) imports or exports a listed chemical knowing, or having
reasonable cause to believe, that the chemical will be used
to manufacture a controlled substance in violation of this title
or title II; or
‘‘(4) exports a listed chemical, or serves as a broker or
trader for an international transaction involving a listed chemi-
cal, knowing, or having reasonable cause to believe, that the
chemical will be used to manufacture a controlled substance
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H. R. 3216—7
in violation of the laws of the country to which the chemical
is exported,
shall be fined in accordance with title 18, imprisoned not more
than 10 years, or both.’’.
SEC. 5. EXEMPTION AUTHORITY; ANTISMUGGLING PROVISION.
(a) NOTIFICATION REQUIREMENT.—Section 1018 of the Con-
trolled Substances Import and Export Act (21 U.S.C. 971), as
amended by section 1505(a) of this Act, is amended by adding
at the end the following new subsection:
‘‘(e)(1) The Attorney General may by regulation require that
the 15-day notification requirement of subsection (a) apply to all
exports of a listed chemical to a specified country, regardless of
the status of certain customers in such country as regular cus-
tomers, if the Attorney General finds that such notification is nec-
essary to support effective chemical diversion control programs
or is required by treaty or other international agreement to which
the United States is a party.
‘‘(2) The Attorney General may by regulation waive the 15-
day notification requirement for exports of a listed chemical to
a specified country if the Attorney General determines that such
notification is not required for effective chemical diversion control.
If the notification requirement is waived, exporters of the listed
chemical shall be required to submit to the Attorney General reports
of individual exportations or periodic reports of such exportation
of the listed chemical, at such time or times and containing such
information as the Attorney General shall establish by regulation.
‘‘(3) The Attorney General may by regulation waive the 15-
day notification requirement for the importation of a listed chemical
if the Attorney General determines that such notification is not
necessary for effective chemical diversion control. If the notification
requirement is waived, importers of the listed chemical shall be
required to submit to the Attorney General reports of individual
importations or periodic reports of the importation of the listed
chemical, at such time or times and containing such information
as the Attorney General shall establish by regulation.’’.
(b) PROHIBITED ACTS A.—Section 1010(d) of the Controlled Sub-
stances Import and Export Act (21 U.S.C. 960(d)), as amended
by section 4(b) of this Act, is amended—
(1) by striking ‘‘or’’ at the end of paragraph (3);
(2) by striking the comma at the end of paragraph (4)
and inserting a semicolon; and
(3) by adding at the end the following new paragraphs:
‘‘(5) imports or exports a listed chemical, with the intent
to evade the reporting or recordkeeping requirements of section
1018 applicable to such importation or exportation by falsely
representing to the Attorney General that the importation or
exportation qualifies for a waiver of the 15-day notification
requirement granted pursuant to section 1018(e) (2) or (3) by
misrepresenting the actual country of final destination of the
listed chemical or the actual listed chemical being imported
or exported; or
‘‘(6) imports or exports a listed chemical in violation of
section 1007 or 1018,’’.
SEC. 6. ADMINISTRATIVE INSPECTIONS AND AUTHORITY.
Section 510 of the Controlled Substances Act (21 U.S.C. 880)
is amended—
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H. R. 3216—8
(1) by amending subsection (a)(2) to read as follows:
‘‘(2) places, including factories, warehouses, and other
establishments, and conveyances, where persons registered
under section 303 (or exempt from registration under section
302(d) or by regulation of the Attorney General) or regulated
persons may lawfully hold, manufacture, distribute, dispense,
administer, or otherwise dispose of controlled substances or
listed chemicals or where records relating to those activities
are maintained.’’; and
(2) in subsection (b)(3)—
(A) in subparagraph (B), by inserting ‘‘, listed chemi-
cals,’’ after ‘‘unfinished drugs’’; and
(B) in subparagraph (C), by inserting ‘‘or listed chemi-
cal’’ after ‘‘controlled substance’’ and inserting ‘‘or chemical’’
after ‘‘such substance’’.
SEC. 7. THRESHOLD AMOUNTS.
Section 102(39)(A) of the Controlled Substances Act (21 U.S.C.
802(39)(A)), as amended by section 2, is amended by inserting
‘‘a listed chemical, or if the Attorney General establishes a threshold
amount for a specific listed chemical,’’ before ‘‘a threshold amount,
including a cumulative threshold amount for multiple transactions’’.
SEC. 8. AMENDMENTS TO LIST I.
Section 102(34) of the Controlled Substances Act (21 U.S.C.
802(34)) is amended—
(1) by striking subparagraphs (O), (U), and (W);
(2) by redesignating subparagraphs (P) through (T) as (O)
through (S), subparagraph (V) as (T), and subparagraphs (X)
and (Y) as (U) and (X), respectively;
(3) in subparagraph (X), as redesignated by paragraph
(2), by striking ‘‘(X)’’ and inserting ‘‘(U)’’; and
(4) by inserting after subparagraph (U), as redesignated
by paragraph (2), the following new subparagraphs:
‘‘(V) benzaldehyde.
‘‘(W) nitroethane.’’.
SEC. 9. ELIMINATION OF REGULAR SUPPLIER STATUS AND CREATION
OF REGULAR IMPORTER STATUS.
(a) DEFINITION.—Section 102(37) of the Controlled Substances
Act (21 U.S.C. 802(37)) is amended to read as follows:
‘‘(37) The term ‘regular importer’ means, with respect to a
listed chemical, a person that has an established record as an
importer of that listed chemical that is reported to the Attorney
General.’’.
(b) NOTIFICATION.—Section 1018 of the Controlled Substances
Act (21 U.S.C. 971) is amended—
(1) in subsection (b)—
(A) in paragraph (1) by striking ‘‘regular supplier of
the regulated person’’ and inserting ‘‘to an importation
by a regular importer’’; and
(B) in paragraph (2)—
(i) by striking ‘‘a customer or supplier of a regu-
lated person’’ and inserting ‘‘a customer of a regulated
person or to an importer’’; and
(ii) by striking ‘‘regular supplier’’ and inserting
‘‘the importer as a regular importer’’; and
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H. R. 3216—9
(2) in subsection (c)(1) by striking ‘‘regular supplier’’ and
inserting ‘‘regular importer’’.
SEC. 10. REPORTING OF LISTED CHEMICAL MANUFACTURING.
Section 310(b) of the Controlled Substances Act (21 U.S.C.
830(b)) is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(b)’’;
(2) by redesignating paragraphs (1), (2), (3), and (4) as
subparagraphs (A), (B), (C), and (D), respectively;
(3) by striking ‘‘paragraph (1)’’ each place it appears and
inserting ‘‘subparagraph (A)’’;
(4) by striking ‘‘paragraph (2)’’ and inserting ‘‘subparagraph
(B)’’;
(5) by striking ‘‘paragraph (3)’’ and inserting ‘‘subparagraph
(C)’’; and
(6) by adding at the end the following new paragraph:
‘‘(2) A regulated person that manufactures a listed chemical
shall report annually to the Attorney General, in such form and
manner and containing such specific data as the Attorney General
shall prescribe by regulation, information concerning listed chemi-
cals manufactured by the person. The requirement of the preceding
sentence shall not apply to the manufacture of a drug product
that is exempted under section 102(39)(A)(iv).’’.
SEC. 11. EFFECTIVE DATE.
This Act and the amendments made by this Act shall take
effect on the date that is 120 days after the date of enactment
of this Act.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.
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