PROPOSAL FOR A COUNCIL REGULATION ( EEC ) LAYING DOWN MEASURES TO BE TAKEN TO DISCOURAGE THE DIVERSION OF CERTAIN SUBSTANCES TO THE ILLICIT MANUFACTURE OF NARCOTIC DRUGS AND PSYCHOTROPIC SUBSTANCES
Date: 1990-06-20
Institutions: European Commission
Subjects: International Narcotics Control Board, administrative cooperation, drug traffic, international trade, narcotic, psychotropic substance

COMMISSION  OF  THE  EUROPEAN  COMMUNITIES 

C0MC90) 215 final 

Brussels,  20 June  1990 

Proposal  for a 

COUNCIL  REGULATION  (EEC) 

laying down  measures  to be taken  to discourage  the diversion of 

certain  substances  to the  illicit  manufacture  of 

narcotic  drugs  and psychotropic  substances 

(presented  by  the  Commission) 

-  2 -

EX PL. A N AT OR Y  ME M OS A N. D U M. 

A ,^,.„„G ei r \ er al  observa t ion s, 

1.  On  8  June  1989,  the  Community  signed  the  1988  UN 
Convention  against  Illicit  Trafficking  in Narcotic  Drugs and 
Psychotropic  Substances,  on  the  basis  of  its  competences  in 
matters  covered  by  Article  12.  All  Member  States  of  the 
Community  have  in the meantime  also  signed  the Convention. 

2.  Article  12  of  the  Convention  requires  Parties  to  take 
appropriate  measures  to prevent  the diversion  of precursors. 
Precursors  are  chemical  products,  in  particular  solvents  or 
acids  (ether,  acetone, ephedrine)  which  in  the  main  are  the 
subject  of  legitimate  trade  (manufacture  of  paint,  glue, 
varnish....),  but  which  can  equally  serve  the  illegal 
manufacture  of  drugs.  In  effect, the  manufacture  of  certain 
drugs  or  psychotropic  substances  is  impossible  without  the 
use  of  certain  chemical  substances  which  make  it  possible, 
for  example,  to  use  natural  sources  (poppies,  coca 
leaves...)  to  manufacture  drugs  such  as  heroin  or  cocaine, 
or  yet,  can  be  used  in  the  manufacture  of  synthetic  drugs 
(LSD,  amphetamines..) 
These  chemical  substances  are  called  precursor  products  and 
consist  mainly  of  solvents  or  acids  originating  in  the 
chemical  industry. 

3. The  extent  cf  the  traffic 

According  to  the  DEA  (Drug  Enforcement  Administration)  of 
the  United  States,  cocaine  traffickers  need  between  6,000 
tonnes  and  12,000  tonnes  per  year  of  chemical  products  to 
process  the  coca  leaves,  whereas  American  production  of 
these products  is about  60,000  tonnes. According  to them, in 
1988  most  of  these  products  came  from  the  USA;  Europe  was 
then  a  secondary  supplier  along  with  Brazil,  Argentina  and 
the Peoples  Republic  of  China. That  means  that  10  to  20% of 
the  American  production  was  either  illegal  or  was  being 
diverted, mostly  without  the knowledge  of  the manufacturers. 
There  is  no  precise  data  concerning  the  Community,  but 
according  to  American  sources,  a very  large  increase  (+438% 
for  certain  products)  in  supplies  originating  either 
directly  or  indirectly  in  Europe  has  taken  place  in  1989. 
This  coincides  with  the  entry  into  force  of  new  American 
legislation  which,  by  indirect  consequence,  provides  an 
incentive  for  the  traffickers  to  search  for  supplies  in 
places where  the  risks  are  less, specifically  in. Europe. The 
principal  countries  concerned  are  the  Federal  Republic  of 
Germany,  France,  Italy,  the  Netherlands  and  the  United 
Kingdom.  The majority  of  the consignments  are  routed  via  the 
Federal  Republic  of  Germany.  As  to  the  companies  concerned, 
it  affects  not  only  the  producers  and  manufacturers,  but 

- 3 -

also  the  merchants,  brokers,  forwarding  agents  and  other 
intermediaries.  Concerning  only  the  producers,  the  DEA 
estimates  that  there  are  950  in  the  world,  490  in  the  USA. 
In  this  way  the  DEA  controls  for  their  part,  2500 
transactions  per year, an average  of  15 per day. 

4.  Precursor  monitoring  in  the  meantime  is  considered 
worldwide  a  necessary  and  appropriate  means  of  discouraging 
manufacture  and  thus  reducing  supply  of  illicit  drugs.  It 

countries  «- 

American  drug  producing 
particular,  during  the  negotiations  of  the  1988  Convention 
and  again  in  the  Cartagena  Declaration  of  15 February  1990. 
Politically,  the  proposed  regulation  has  thus  to be  seen  as 
an  important  contribution  by  industrialized  countries  in the 
North-South  dialogue.  For  these  reasons,  the  adoption  of  a 
Community  precursor  instrument  has  been  recognized  by  CELAD 
as  one  of  the  three  priority  items  in  Community  anti-drug 
action. 

,.„,-.. ^--*.,.t 

5. At the  same  time, it  is noted  that  - unlike  drugs  strictu 
sensu  - only  a very  minor  share  of  the  substances  concerned 
is  subject  to  illicit  diversion  whereas  most  of  the  trade 
and  manufacture  is  entirely  legitimate.  Therefore,  an 
efficient  monitoring  system  must  not  unilaterally  be  based 
on enforcement  considerations  but duly  take  into  account  the 
interests  of  legitimate  trade. 

6.  The  proposed  Regulation  intends  to  institute,  on  a 
Community  basis,  a  monitoring  system  over  international 
precursor  trade  as required  by  Article  12 of  the Convention. 
In  conformity  with  the  Council  Decision  of  1  June  1989  and 
the  requirements  of  the  Single  Market  of  1993, the  proposal 
envisages  a  non-bureaucratic  and  cooperation-based  solution 
which  at  the  same  time  avoids  the  creation  new  obstacles  to 
intra-Community  trade. In due  consideration  of areas  covered 
by  Member  States'  competence,  the  proposal  in  a  number  of 
instances  limits  itself  to  the  identification  of  certain 
objectives  to be met by national  legislation. 

7.  The  proposal  has  intentionally  avoided  to  introduce  any 
sort  of  licensing  arrangement  which  would  not  only 
contradict  the  non-bureaucratic  character  of  the  system 
agreed  at the Council  but  also prove  to be  counterproductive 
on  the  practical  level. Past  experience  in Member  States  in 
the  monitoring  of  precursors  and  other  sensitive  goods  has 
shown  that  the  most  fruitful  cooperation  and  the  best 
results  are  obtained  whenever  economic  operators  are  guided 
by  competent  authorities  in  the  collection  and  exploitation 

4 -

of  information  rather  than  if  their  cooperative  spirit  is 
exhausted  by  the  completion  of  formal  administrative 
procedures. 

Licensing  systems,  in  particular  with  regard  to  export,  do 
not  provide  for  any  additional  guarantee  against  diversion 
to  illicit  purposes:  experience  again  shows  that  licensing 
requirements  may  easily  be  circumvented  by misdescription  of 
goods  or  falsified  documents,  and  due  to  extremely  sporadic 
export  controls,  such  manipulations  are  not  likely  to  be 
detected. Furthermore, the present  proposal  allows  competent 
authorities  to  react  in  cases  of  possible  diversion  as 
firmly  as  under  any  licensing  system,  ie  shipments  to  non-
Community  countries  may  be  suspended  or  even  forbidden  if 
diversion  to  illicit  purposes  appears  certain. 

8. This approach  differs  in certain  aspects  from  that  of the 
USA,  because  of  the  differences  between  the  European  drugs 
market  and  that  of  the  USA  (type  of  products  consumed, 
percentage  of  drug  addicts  in  the  population,  geographical 
situation,  population  involved...).  In  this  way,  the 
American  legislation  is  more  extensive  as  regards  the  list 
of products  covered  (20 products  as against  12), whereas  the 
Community  text  is  limited,  in  accordance  with  the  unanimous 
advice  of  experts,  to  the  list  foreseen  by  the  Vienna 
Convention.  Again  the  American  legislation  covers  certain 
materials  and  equipment  (tableting  machines,  encapsulating 
machines)  which  concern  above  all  certain  synthetic  drugs 
(amphetamines) within  the  context  of domestic  production. It 
consists,  moreover,  of  numerous  details  of  a  bureaucratic 
nature  which  have  no  place  in  Community  legislation,  and 
which  are  linked  to  the  administrative  organisation  of  each 
Member  State.  It  includes,  finally,  a  very  large  number  of 
points  on  the  matter  of  penalties,  which  are  difficult  to 
imagine  in  the  drafts  of  a  Community  text  which  is  limited 
to establishing  a corresponding  obligation  for Member  States 
as has been  done  in the matter  of  insider  dealing. 

- 5 -

Contents  of  the  Regulation 

1.  In  conformity  with  the  UN  Convention,  the  proposed 
regulation  distinguishes between  two  types of precursors  (cf 
Table  I  and  Table  II  in  the  Annex),  ie  those  with  limited 
use  for  licit  purposes  (Table  I substances)  and  others  with 
essential  importance  for  legitimate  commercial  use  (Table II 
substances).  Both  categories  of  precursors  are  subject  to 
the  general  monitoring  scheme  laid  down  in  this  Regulation 
whereas  the  more  stringent  measures  of  Article 
4  apply  to 
Table  I substances  only. 

2.  On  the  basis  of  this  principal  distinction. 
Regulation  contains  the  following  features (1): 

the 

a.  Article  1_ determines  the  scope  of  the  Regulation,  ie 
monitoring  of  external  Community  trade, and  defines  a number 
of  terms  essential  for  its application. 

b.  Considering  that  preventive  measures  as  well  as  the 
tracing  of  diverted  substances  will  be  primarily  be  carried 
out  on  the basis  of documentary  evidence. Article  2 requires 
that  economic  operators  keep  appropriate  records  and 
documentation,  and  label  goods  clearly  and  ensures  that 
competent  authorities  obtain  access  to documents  and  records 
for verification  purposes  (9d,e  UNC). 

c.  Article  3.  containing  the  centerpiece  of  the  standard 
monitoring  scheme,  reflects  the  cooperation-based  approach 
by  stimulating  economic  operators  as  well  as  other  persons 
professionally  involved  to  inform  authorities  of  any 
circumstance  indicating  the  possibility  of  diversion  (9a 
U N O.  Paragraph  3 ensures  that  such  disclosure  done  in good 
faith  does  not  lead  to  legal  disadvantages  for  the 
informant. 

d.  Article  4  (10a  U NO  establishes  the  specific  export 
surveillance  scheme  with  regard  to  Table  I substances  whose 
introduction  by  industrialized  countries  represented  one  of 
the main  items  in  North-South  discussions  during  the  Vienna 
negotiations.  Paragraph  1  contains  the  principle  of 
obligatory  pre-export  notification  by  operators  vis-à-vis 
national  monitoring  authorities,  paragraph  2  providing  for 
the  exact  content  of  such  notifications  ( 10a  i)-iv)  U N O. 
Although  no  export  licensing  system  is foreseen, paragraph 3 
empowers monitoring  authorities  to suspend  or  even  interdict 
shipment  according  to  the  degree  of  doubt  regarding 
legitimate  destination  of  the substances  involved.  Paragraph 
4  provides  for  routine  communication  of  these  notifications 
to  the  country  of  intended  import  whenever  the  latter  has 
requested  such  communication  from  the  Community. 

e • Article  5. intends  to  facilitate  the  application  of  the 
with 
Regulation  by 
sufficient  powers  such  as  inspection, search  and  seizure  (9b 
UNC).  Specific  powers  are  given  to  border  authorities  by 

authorities 

monitoring 

supplying 

1 numbers  in brackets  refer  to corresponding  paragraphs  in 

the UN Convention  (UNO 

- 6 -

paragraph  2,  in  order  to  allow  suspect  consignments  to  be 
stopped  before  they  leave  or  enter  the Community  territory. 

f-  Article  6  covering  intra-Community  cooperation  between 
monitoring  authorities  refers mutatis  mutandis  to Regulation 
(EEC)  1468/81  on  mutual  assistance  in  customs  and 
agricultural  matters,  thus  providing  not  only  for  a  well-
established  mechanism  in  administrative  assistance  but  also 
for  due  protection  of  confidentiality  with  regard  to  all 
information  obtained  and  circulated  under  this Regulation. 

9-  Art icie  7  (9c  UNC)  complements  Article  6  on  the 
international  level  by  ensuring  that  information  on  suspect 
consignments  be  passed  on  to  other  parties  to  the  UN 
Convention  concerned. 

h. Final Clauses: 

Article  8,  although  avoiding  interference  with  Member 
States'  competence  in  criminal  matters,  ensures  that 
infringements  of  this  Regulation  be  subject,  Community-wide 
to appropriate  penalties. 

Article  9  (12  U NO  serves  to  fulfill  the  annual  reporting 
obligations  towards  the  UN,  with  the  Commission  acting  as 
Community  co-ordinating  body. 

Article  10  provides  for  a  Community  forum  to  examine 
technical  questions  relating  to  the  application  of  the 
Regulation. 

Taking  into  account  the  directive-type  parts  of  the 
Regulation, Article  1 1 requires  Member  States  to  report  the 
implementing  measures  taken, whereas  Article  12 for  the same 
reason  provides  for  a  split-up  between  entry  into  force  and 
entry  into application. 

"  7 

" 

Proposal 

f or  a 

Ç o UJIÇJLL-. Re.g.ula .t i o_n_ JJEJECJ, 

l a y i ng  down  m e a s u r es 

to  be taken  to  discourage  the  diversion  of  c e r t a in 

s u b s t a n c es 

to 

t he 

i l l i c it  m a n u f a c t u re  of  n a r c o t ic  d r u gs  and 

psychotropic  substances. 

THE COUNCIL OF THE EUROPEAN COMMUNITIES, 

Having  regard  to the Treaty  establishing  the  European 

Economic  Community, and  in particular  Article  113  thereof. 

Having  regard  to  the proposal  from  the Commission  (1) 

Whereas  on  19 December  1988, the United  Nations  Conference 

adopted  a Convention  against  Illicit  Traffic  in Narcotic 

Drugs  and  Psychotropic  Substances; whereas  this Convention  is 

part  of  the world-wide  efforts  to combat  drugs; whereas  the 

Community  participated  in the negotiation  of  this 

Convention, showing  its political  will  to act within  the 

limits of  its competences; 

1 OJ No C 

,p. 

-  8 -

Uhereas  the 

aforementioned  Convention  contains  an Article 

12 concerning  trade  in precursors, ie substances  frequently 

used  in the  illicit  manufacture  of narcotic  drugs and 

psychotropic  substances; whereas  the  implementation  of  this 

Article  represents  a contribution  by  industrialized 

countries  to  the  effort  requested  from  drug-producing 

countries  which  are generally  much  poorer than the former; whereas the 

provisions  on  the  trade  in such precursors  affect  the 

Community  rules in.customs matters; whereas, on  this basis, 

the Convention  was  signed  on behalf  of  the Community  on 8 

June  1989; whereas  it is thus appropriate,  in order  to 

concretize  this political  will,  to  lay down  Community  rules 

on the  trade  between  the Community  and  third  countries, 

without  prejudice  to other provisions  to be elaborated  as 

regards  intra-Community  trade; 

Uhereas  the provisions  of Article  1 2 of the Convention are based on a system 

monitoring trade in the substances in question; whereas  most of 

the trade  in these  substances  is fully  legitimate; whereas 

documentation  and  possible  labelling  as regards  consignments 

of these  substances  have  to be sufficiently  clear; whereas 

it  is furthermore  important, whilst  providing  competent 

authorities  with  the necessary  means  of action, to develop, 

in compliance  with  the spirit  of  the Convention,  mechanisms 

which  are based  on  close  cooperation  with  the  economic 

operators  concerned  as well  as on  the development  of the 

gathering,  exchange  and  exploitation  of  intelligence; 

- 9 -

Uhereas,  in this framework, measures have  to be  taken to 

encourage  the detection, by  the various  operators, of 

suspect  operations  and  their  cooperation  with  the  competent 

authorities; whereas  a system  of pre-notification on 

consignments  of certain  substances, providing  for  the 

possibility  of suspending  or  forbidding  the operations  in 

question  under  certain  conditions, appears most  appropriate 

to the  situation; whereas  several  countries have  already 

obtained  very  positive  results  favouring  this approach; 

Uhereas  the 

competent 

authorities 

af 

Member 

States  should  dispose  of comparable  means of action; whereas 

it  is thus  indispensable  to establish, at Community  level, 

common  objectives  in the matter; whereas  this aspect  is 

essential  in the perspective  of  the  completed  internal 

market  and  in order  to ensure  the homogeneous  application  of 

the rules  established;  whereas  it  is also  important,  in this 

context,  that  each Member  State provides  for  sufficiently 

dissuasive penalties; 

Uhereas  it  is important  to provide, w'i t h i h  the Community  as 

well  as with  third  countries  which .are ..also .  Parties  to the 

Convention, 

mechanisms 

of 

administrative 

cooperation; whereas  it is suitable  in this respect, as far  as 

the competent  authorities  in the Community  are  concerned, to 

seek  inspiration  from Council Regulation (EEC) No 1468/81  of  19 May 

1981  on mutual  assistance  between  the  administrative 

authorities  of  the Member  States  and  cooperation  between  the 

-  10 

-

l a t t er  and 

t he  Commission 

to  e n s u re 

t he  c o r r e ct  a p p l i c a t i on 

of 

t he 

law  on  customs  and  a g r i c u l t u r al  m a t t e rs 

(2),  as  amended 

by  R e g u l a t i on 

(EEC)  9 4 5 / 87 

( 3 );  whereas particular  attention  has to  be paid  to 

the  c o n f i d e n t i a l i ty  of  the  information  received  and  exchanged; 

Uhereas 

in  o r d er 

to  examine  p o s s i b le  p r o b l e ms  c o n c e r n i ng 

t he 

a p p l i c a t i on  of 

t h is  R e g u l a t i on  and 

to  enhance 

i ts 

i m p l e m e n t a t i on  and 

t he  d e v e l o p m e nt  of  a d m i n i s t r a t i ve 

c o o p e r a t i on 

in 

t he  m a t t e r, 

it 

is  appropriate 

to  p r o v i de 

t h at 

t he  Commission  o r g a n i z es  s p e c i f ic  m e e t i n g s; 

HAS  ADOPTED  T H IS  REGULATION: 

2  OJ  No  L  1 4 4 ,- 

0 2 . 0 6 . 1 9 8 1, 

p. 

1, 

3  OJ  No  L 

9 0, 

0 2 . 0 4 . 1 9 8 7,  p . 3. 

-  11 -

TITLE I 

General 

Article 1 

1 . This  Regulation  lays  down  measures  to be  taken  in  order 

to  monitor  trade  in  precursors  between  the  Community 

and 

third 

countries  with  a  view  to  preventing  the 

diversion  of  such  substances  for  the  illicit  manufacture  of 

narcotic  drugs  and  psychotropic  substances. 

2. For  the purposes  of  this Regulation: 

(a) "scheduled  substances" means  any  substance  con 

tained 

in 

the 

Annex, 

including 

mixtures 

containing 

such 

substances. 

This 

excludes 

pharmaceutical 

preparations, 

or 

other 

preparations 

containing  scheduled  substances  that  are  compounded  in  such 

a  way  that  such  substances  cannot  be  easily  used  or 

recovered  by  readily  applicable means; 

cb)  "import"  means  any  physical  introduction  of  scheduled 

substances  into  the  customs  territory  of  the  Community; 

-  12 -

(c)  "export"  means  any  physical  departure  of  scheduled 

substances  from  the  customs  territory  of  the Community  which 

requires  a customs  export declaration) 

(d)  "transit"  means  any  transport  of  scheduled  substances 

between 

.  third 

countries 

through 

the 

customs 

territory  of  the  Community  and  any  transhipment  in  this 

territory; 

(e) "operator"  means  any  natural  or  legal  person  engaged  in the 

manufacture,  production,  trade  or  distribution  of  scheduled 

substances  in  the  Community  or  involved  in  other  related 

activities  such  as  import,  export,  transit,  broking  and 

processing 

of 

scheduled 

substances.  This 

definition 

includes,  in particular, customs agents, 

(f)  "UN  Convention"  means  the  United  Nations  Convention 

against  Illicit  Traffic  in  Narcotic  Drugs  and  Psychotropic 

Substances, adopted  in Vienna  on  19 December  1988! 

(g) "International  Narcotics  Control  Board"  means  the  Board 

established  by  the  Single  Convention  on  Narcotic  Drugs  of 

1961,  as amended  by  the  1972  Protocol. 

-  13 -

TITLE  II 

Monitoring  of  trade 

Article 2 

Documentation, records  and  labelling 

The  import,  export  and  transit  of  scheduled  substances  are 

subject  to  the  following  requirements: 

1.  all  import,  export  and  transit  operations  shall  be 

properly  documented.  In  particular,  commercial  documents 

such  as  invoices,  cargo  manifests,  customs,  transport  and 

other 

shipping 

documents 

shall 

contain 

sufficient 

information  to positively  identify  the  following: 

- the name of  the  scheduled  substance  as stated  in the  Annex 

- the quantity, weight, composition  and  content  of  the scheduled 

substance 

- the name and address of the exporter  and  importer  and, as far 

as  is known  to  the manufacturer  or distributor  concerned, 

that  of  the consignee; 

2.  whenever  operators  apply  labels  to  scheduled  substances 

in  import,  export  or  transit  operations  such  labels  shall 

mention  the  names  of  these  substances  as  stated  in  the 

Annex; 

- 14 -

3-  operators  involved  in  import,  export  and  transit  of 

scheduled  substances  shall  keep  detailed  commercial  records 

with  regard  to  these  activities^ 

4. the documents  and  records  referred  to  in ;points  1  and 

3 shall  be 

kept 

for  a  period  not  less  than  two 

years 

from  the  end  of  the  calendar  year  in  which  the 

operation  referred  to  in 

point  .1  took  place,  and  shall 

be made  available  to the  competent  authorities  upon request. 

Article 3 

Notification 

1.  Each  Member  State  shall  take,  consistently  with  its own 

legal  system, appropriate  measures  to encourage  operators  to 

immediately  notify  the  competent  authorities  of  any 

circumstances,  such  as  unusual  orders  and  transactions  of 

scheduled  substances,  which  indicate  that  such  substances 

destined  for  import  or  export  may  be  diverted  for  the 

illicit  manufacture  of  narcotic  drugs  or  psychotropic 

substances. 

-  15 -

2.  In  addition  to  the  measures  to be  taken  under  paragraph 

1,  each  Member  State  shall  take,  consistently  with  its own 

legal  system, appropriate  measures  to encourage  persons  who 

suspect, as  a  result  of  information  obtained  by  virtue  of 

their  professional  activities, that  scheduled  substances 

which  have  been  or  are  to  be  imported  or  exported  may  be 

destined  for  use  in  the  illicit  manufacture  of  a  narcotic 

drug  or  psychotropic  substance,  to  inform  the  competent 

authorities  accordingly. 

3. The disclosure  in  good  faith  to  the  competent  authority 

pursuant  to  paragraphs  1 and  2 above  shall  not  constitute  a 

breach  of  any  restriction  on  disclosure  of  information 

imposed  by  contract  or  by  any  Law, regulation  or 

administrative  provision,  and  shall  not  involve any 

civil  or penal  liability  of any  kind  for  the persons  con 

cerned. This provision  does not  apply,  in particular,  to cases 

where  disclosure  is  made  to  avoid  prosecution  or  where 

malice  is  intended. 

Article 4 

P r e - e x p o rt  n o t i f i c a t i on 

-  Substances  listed  in  Table  1 of  the  Annex 

1.  In  addition  to  the  provisions  of  Article  3,  persons  who 

take  the  initiative  in  any  intended  export  of  scheduled 

substances  listed in Table I of the  Annex  shall  ensure  that  the 

competent  authorities  of  the  Member  State  where  the  customs 

export  formalities  are  to  be  completed  are  duly  notified  of 

-16 -

such  intention  not  later  than  15  days  before  any  customs 

export  declaration  is  lodged. 

2.  The  notification  referred  to  in  paragraph  1  shall  contain 

the  following  information: 

- the name and  address  of  the  exporter,  of  the  importer  in  the 

third  country  and  any  other  operator  involved  in  the  export 

operatio'n  or  shipment,  and  also  those  of  the  consignee  as 

far  as  known  to  the  operator  concerned, 

-  the name of  the scheduled  substance  as  stated  in  Table  I of the Annex, 

-  the quantity, weight, 

composition  and  content  of  the  substance 

to  be  exported, 

- details  as  to  the  shipment  such  as  expected  date  of 

dispatch,  transport  arrangements  and,  where  known, 

itinerary,  expected  point  of  exit  from  the  Community 

customs  territory  and  point  of  eventual  entry  in  the 

importing  country. 

3.  Member  States  shall  ensure  that  the  competent  authorities 

referred 

to 

in  paragraph 

1  may 

by 

written 

order, 

confirmation  of  receipt  of  which  must  be  duly  provided  by 

the  person  concerned: 

(a) delay  the  shipment  of  scheduled  substances  listed in Table I of the Annex 

until  they  are  satisfied  that  the  substances  are  destined 

for  lawful purposes; 

- 17 -

(b)  forbid  the  shipment  of  scheduled  substances  listed in Table I of tl 

Annex, if there  are 

reasonable  grounds  to  suspect  that  the 

scheduled 

substances 

are 

destined 

for 

the 

illicit 

manufacture  of  narcotic  drugs  or  psychotropic  substances. 

Unless  an  order  referred  to  in  sub-paragraphs  (a)  and  (b)  is 

made  by  the  competent  authority,  the  export  is  deemed 

approved  upon  expiration  of  the  period of 15 days. 

A.  Uith  regard  to  requests  for  pre-export  notification 

addressed  to  the  Community  by  a 

third  country 

pursuant  to  Article  12  (10)  of  the  UN  Convention, 

(a)  the  Commission  shall  immediately  communicate  to  the 

competent  authorities  of  the  Member  States  any  such  request 

received ; 

(b)  the  competent  authorities  of  the  Member  State  concerned 

shall,  prior  to  any  export  of  scheduled  substances  to  the 

requesting  country,  supply  the  information  specified  in 

paragraph  2  to  the  competent  authorities  of  this  country.  A 

copy  cf  this  r <v I y  Lîhsll  he  cof.iï.un i ca t ec  to  the  Commission 

with  -. view  to  .*.:.; circulation  to  the  other  Member  States; 

(c)  the  authority  furnishing  such  information  shall  require 

that  the  authority  in  the 

third 

country 

receiving 

this  information  ensures the  confidentiality  of 

any  trade, 

business,  commercial  or  professional  secret  or  trade  process 

involved. 

- 18 -

TITLE  III 

Measures  of  control 

Article 5 

Legal  powers  of competent  authorities 

1. In  order  to  ensure  the  correct  application  of  Articles  2 

and  4,  each  Member  State  shall  adopt,  consistently 

with 

its  own  legal  system,  the  measures  necessary  to  allow  the 

competent  authorities: 

(a) to  obtain  information  on  any  orders  or  transactions  of 

scheduled  substances; 

(b)  to  enter  and  search  professional  premises  of  operators 

and  to obtain  evidence  of  irregularities; 

(c) to  seize  any  scheduled  substance  if  there  is  sufficient 

evidence  that  such  substance,  which  has  been  or  is  to  be 

imported,  exported  or  in  transit,  is  intended  to  be  used  in 

the  illicit  manufacture  of  a  narcotic  drug  or  psychotropic 

substance. 

- 19  -

2.  Uithout  prejudice  to  the  measures  laid  down  in 

Article  4(3) 

and 

Article 

5(1),  the 

customs 

authorities  or  other  competent  authorities  of  each  Member 

State may  prohibit  the  introduction  of  scheduled  substances 

into  the Community  customs  territory  or  their departure  from 

the  latter,  if  there  are  reasonable  grounds  to believe  that 

these  substances  are  destined  for  the  illicit  manufacture of 

narcotic  drugs  or psychotropic  substances. 

TITLE IV 

Administrative  cooperation 

Art icle 6 

For  the  purposes  of  applying  this  Regulation  and  without 

prejudice  to  Article  10, the  provisions  of  Regulation  (EEC) 

No  1468/81  shall  be  applicable  mutatis  mutandis, 

in particular  the provisions  on confidentiality.  Each  Member 

State  shall  communicate  to  the  other  Member  States  and  to 

the  Commission  the  competent  authority  appointed  to  act  as 

correspondent within the meaning of Article 2(2) of Regulation 

(EEC) No  1468/81 . 

-20  -

Article 7, 

The  competent  authorities  referred  to  in  Article  6  shall 

notify 

their 

counterparts 

in  third 

countries 

concerned  by  the  operation  in  question  and  parties  to  the  UN 

Convention  if  there  are  reasonable  grounds  to  suspect  that 

the  import,  export  or  transit  of  a  scheduled  substance  is 

destined  for  the  illicit  manufacture  of  narcotic  drugs  or 

psychotropic  substances.  Notifications  shall  include  all 

essential  information  which  has  led  to  that  belief.  The 

provisions  on  confidentiality  laid  down  in  Article  4  (4)  (c) 

apply  to  such  notifications  mutatis  mutandis.  A  copy  of  this 

notification  shall  be  communicated  to  the  Commission  with  a 

view  to  its  circulation  to  the  other  Member  States. 

TITLE  V 

Final  provisions 

Art icle  8 

Each  Member  State  shall  determine  the  penalties  to  be 

applied  for  the  infringement  of  the  provisions  of  this 

Regulation.  The  penalties  shall  be  sufficient  to  promote 

compliance  with  those  provisions. 

-  21 -

Article 9 

1.  The  competent  authorities  of  each  Member  State  shall 

annually  communicate  to  the Commission: 

- the amounts  of  scheduled  substances  seized  and, when 

known, their origin; 

- any  substance  not  . included 

in 

the 

Annex  which  is identified  as having  been  used  in  illicit 

manufacture  of narcotic  drugs  or psychotropic  substances, 

and  which  is deemed  to be sufficiently  significant  to be 

brought  to the attention  of  the  International  Narcotics 

Control  Board; 

- methods  of diversion  and  illicit manufacture. 

2.  The  Commission,  on  the  basis  of  the  communications 

made  pursuant  to paragraph  1, shall, pursuant  to Article  12(12) of 

the  UN  Convention  and  in  consultation  with  Member  States, 

draw  up 

an  annual  report  to  be  submitted  to  the 

International  Narcotics  Control  Board. 

Article 10 

The 

Commission 

shall 

organize 

meetings 

with 

the 

representatives  of  Member  States  in  order  to  examine  any 

question  concerning  the application  of  this Regulation  which 

is  raised  by  the  Chairman,  either  on  his  own  initiative  or 

or at  the request  of a Member State. 

- 22  -

Artie le 1J 

Each  Member  State  shall  inform  the  Commission  of  the 

measures  it  takes  pursuant  to  this  Regulation. 

The  Commission  shall  communicate  this  information  to  the 

other  Member  States. 

Article  12 

This  Regulation  shall  enter  into  force  on  1  January  1991.  It 

shall  apply  from  1  July  1991. 

This  Regulation  shall  be  binding  in  its  entirety  and  directly 

applicable  in  all  Member  States. 

Done  at  Brussels, 

For  the  Counc i I 

- 23 -

Annex 

Table I 

Ephedrine 

Ergometrine 

Ergotamine 

Lysergic  acid 

Table II 

Acetic  anhydride 

Acetone 

Anthranilic  acid 

Ethyl  ether 

i -phenyl-2-propanone 

Phenylacetic  acid 

Pseudoephedrine 

Piperidine 

The  salts of  the  substances 

The  salts of the  substances 

listed  in this  table whenever 

listed  in this  table  whenever 

the existence  of such  salts is 

the existence  of  such  salts  is 

possible. 

possible. 

?< 

FINANCIAL  RECORD 

Draft  proposal  for  a  Council  Regulation  laying  down  measures 
to  discourage  the  diversion  of  certain  substances  to  the 
illicit  manufacture  of  narcotic  drugs  and  psychotropic 
substances. 

1 ._ Budgetary  heading  code:  A  2 511 

2.  Legal  bas is : A r t i c le  113 

3.  D e s c r i p t i on  of  p r o j e ct 

3.1.  General  objectives 

To  comply  with  international  obligations  resulting  from 
Article  12  of  the  1988  UN  Convention  against  Illicit  Traffic 
in  Narcotic  Drugs  and  Psychotropic  Substances  signed  by  the 
Community  on  8  June  1989. 

3.2.  S p e c i f ic  o b j e c t i v es 

-  To  prevent,  on  a  Community-wide  basis,  the  diversion  of 
precursor  substances  to  the  illicit  manufacture  of  narcotic 
drugs  and  psychotropic 
substances,  by  establishing  a 
monitoring  system  on  the  import,  export  and  transit  of 
precursors  and  provide  for  an  exchange  of  information 
between  the  competent  authorities  of  Member  States  and 
between  the  latter  and  the  competent  authorities  of  non-
Community  countries. 

-  To  fulfill  periodic  reporting  requirements  towards  the 
competent  bodies  of  the  United  Nations 

3_;J5._.  F i n a n c i al  i m p l i c a t i o ns  of  the  p r o j e ct 

The  m a n a g e m e nt  of  the  m o n i t o r i ng 
financial  c o n s e q u e n c es  set out  u n d er  item  5  b e l o w. 

system  will  have 

the 

4 . J u s t i f i c a t i on  of..._th_e__px.ojje„ç_t 

To  d a t e,  only  informal  p r e c u r s or  m o n i t o r i ng  s c h e m es  exist  in 
certain  M e m b er  S t a t es  w h i ch  do  n ot  fulfill  the  s t a n d a rd 
required  by  the  UN  C o n v e n t i o n.  In  o r d er  to  fulfill  t he 
Community  o b l i g a t i o ns  from  the  C o n v e n t i on  and  at  the  same 
time  to 
action 
M a r k e t, 

the  o b j e c t i v es  of 
o  enact  l e g i s l a t i on 

~ b e r  S t a t es  taking  i n d i v i d u al 

l e g i s l a t i ve 
the 
S i n g le 
on  e x t e r n al 

jith 
has 

avo id 

i n c o m p a t i b le 
the  C o m m u n i ty 
r  t rade. 

25 

5_.  F.in ar. ç i a 1  imp_..li.ca .t.ion_s_..in  r esp_ec_t _...oX._Lc^jerjvjejiticn. 

appropriations 

5_...l.._ Basis  for  estimation 

The envisaged  Community  system  will  result  in expenses  for 

the  periodic  organization  of  meetings  with  Member  States 
experts  in  order  to  continually  monitor  the  correct  working 
of  the  system.  The  estimation  shown  below  is  based  on  an 
initial  hypothesis  of  2 meetings  per year with Member  States 
to be held  in Brussels. 

- the set-up, at Commission  level, of a management  structure 
ensuring,  in  particular,  liaison  with  Member  States,  third 
countries  and  competent  international  organizations,  in 
particular,  the  UN.  The  structure  would  initially  comprise 
two officials  (1 A, 1 B ). 

These  resources  are  to  be  found  either  by  means  of  internal 
redeployment  or  in  the  framework  of  the  budgetary  procedure 
for  the year  1991. 

5.2.  Estimated  appropriations  to be provided  for 

Task 

Budgetary  post 
A 251 1 

Travel  expenses  for Member 
States  experts  to Brussels: 

2x 24 experts: 2x  10,000 ECU 

20,000 ECU 

Total 

20,000 ECU 

(from  the budgetary  year  1991  on) 

6_._ Implications  for .own resources 

None 

ISSN  0254-1475 

COM(90)215final 

DOCUMENTS 

EN 

05  01 06 

Catalogue number : CB-CO-.90-253-EN-C 
ISBN 92-77-60898-6 

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