Proposal for a COUNCIL REGULATION ( EEC ) AMENDING REGULATION ( EEC ) NO 3677/90 OF 13 DECEMBER 1990 LAYING DOWN MEASURES TO BE TAKEN TO DISCOURAGE THE DIVERSION OF CERTAIN SUBSTANCES TO THE ILLICIT MANUFACTURE OF NARCOTIC DRUGS AND PSYCHOTROPIC SUBSTANCES
Date: 1991-11-22
Institutions: European Commission
Subjects: chemical product, customs inspection, drug traffic, drugs classification, international cooperation

COMMISSION  OF  THE  EUROPEAN  COMVIUNITIES 

COM(91)455 

f i n al 

B r u s s e l s,  22  November  1991 

Proposal 

f or  a 

COUNCIL  REGULATION  (EECI 

AMENDING 

(EEC)  NO  3 6 7 7 / 90  OF  13  DECEMBER  1 9 90  LAYING  DOWN 
REGULATION 
MEASURES  TO  BE  TAKEN  TO  DISCOURAGE  THE  D I V E R S I ON  OF  CERTAIN 
SUBSTANCES  TO  THE  I L L I C IT  MANUFACTURE  OF  NARCOTIC  DRUGS  AND 
PSYCHOTROPIC  SUBSTANCES 

(presented  by  the  Commission) 

EXPLANATORY MEMORANDUM 

A. General  observations 

1. On 13 December  1990, the Council adopted Regulation  (EEC) 
No  3 677/90  laying  down  measures  to  be  taken  to  discourage 
the  diversion  of  certain  substances  to  the  illicit 
manufacture  of  narcotic  drugs  and  psychotropic  substances. 
The  chemical  substances  concerned  are  commonly  referred  to 
as  "drugs  precursors",  because  -  without  being  drugs 
themselves  -  they  are  indispensable  for  the manufacture  of 
illicit drugs. Characteristically, precursors in their large 
majority  are  subject  to  a  fully  legitimate  trade  and  it  is 
only  a  very  small  percentage  which  is  diverted  to  illicit 
manufacture. 

2.  In parallel  to  the  elaboration  of  the  current  Community 
legislation,  the  1990  Houston  Economic  Summit  (G-7) 
recognized the growing importance of effective  international 
action  in  precursor  matters  and  mandated  a  Chemical  Action 
Task  Force  (CATF)  to  identify  improvements  in the  existing 
procedures.  While  expressly  recognizing  Article  12  of  the 
1988  UN  Convention  against  Illicit  Drug  Traffic  as  the 
"foundation  for international cooperation  in this area", the 
CATF has  tried  to  complement  the  provisions  and  refine  the 
procedures of the Convention. 

3. Between  October  1990  and  April  1991  during  its  meetings 
held  in  Washington  D.C.,  the  CATF  addressed  the  various 
questions  involved  in  its  three working  groups  on  Chemical 
Issues,  Diversion  Issues  as  well  as  Legal  and  Regulatory 
Issues.  Based  on  the  findings  of  the  working  groups,  the 
Task  Force  compiled  a  Final  Report  which  contains,  in 
particular,  a  number  of  recommendations  for  improving 
international  procedures.  The  report  was  approved  by  all 
participating  parties  at  the  political  level  and  was 
subsequently  endorsed  on  15  July  last  by  the  1991  London 
Economic Summit. 

In  March  1992,  the  CATF  will  hold  a  plenary  meeting  to 
review the  implementation  status  of  its recommendations  and 
to prepare a Status Report for the 1992 Economic Summit. 

4.  The  Commission  and  seven  Member  States  actively 
participated  in the work of the Chemical Action Task Force. 
All  through  the  CATF  negotiations,  including  their  final 
stage, full Community coordination was ensured  in Washington 
between the participating  delegations, and  also  in  Brussels 
between  the  latter  and  those Member  States  not  represented 
in the CATF. At the same time, there were consultations with 
the  representatives  of  Community  trade  and  industry,  who 
also participated  in most sessions of the CATF. 

5.  The  CATF  recommendations  contain  a  number  of  new 
orientations designed  to better adapt the existing  forms  of 
control  still  better  to  the  specific  nature  of  the 
substances,  trade  patterns  and  diversion  risks  involved. 
They reflect, in particular, the intention of complying with 
the  needs  of  the  non-industrialized  countries  in  Latin 

Z 

America  and  Asia  concerned  by  the  illicit  manufacture  of 
drugs such as cocaine and heroin. 

The essential  features are the following: 

-  additional  substances  proposed  for  international  control, 
i.e.  mainly  substances  used  for the  manufacture  of  cocaine 
or heroin, 
- new scheme for the classification of substances based on 3 
categories  (instead  of  the  two  tables  in  the  1988  UN 
Convention)  in  order  to  allow  an  even  better  adjustment  of 
controls  to  the  nature  of  the  substances  and  the  trade 
patterns  involved; 

new  requirements  with  regard  to  the  export  of  the 
scheduled  substances  the  extent  of  which  depends  on  the 
category  involved each time; 

strengthening  of  international  cooperation  by  the 
countries and regions involved, notably by the conclusion of 
agreements  between  exporting  countries/regions  and  those 
countries/regions  in  which  by  the  illicit  manufacture  of 
drugs takes place. 

6. It  is the  intention of the present proposal  to adapt  the 
Community  legislation  according  to the CATF  recommendations 
in  conformity  with  its  political  commitment  and  thus  to 
contribute  to  the  increased  effectiveness  of  international 
efforts  to  combat  the  diversion  of  precursors  to  illicit 
drug manufacture. 

B. Contents of the proposed  Regulation 

1. In conformity with the CATF recommendations, the proposed 
regulation  distinguishes  between  three types of substances, 
i.e.  substances  used  in  the manufacture  of  synthetic  drugs 
and with  limited  use  for licit purposes  (Category  1) , those 
with wider legitimate and commercial use  (Category 2) 
and  finally  those  essential  for  the  manufacture  of  heroin 
and  cocaine  for  which  a  geographically  targetted  approach 
appears the most appropriate  (Category 3 ). 

All  three  categories  are  subject  to  the  same  general 
monitoring  scheme  whereas  requirements  vary  mainly  as 
regards  the  export  formalities  laid  down  in  Articles  4,  5 
and 5 a. 

2. The proposed  amendments concern the following (1): 

a.  The  new  indent  (f)  in  Article  1(1)  clarifies  that  the 
"ultimate  consignee"  whom  the  exporter  has  to  identify 
without  exception  (cf.  Article  4,  5  and  5a)  is  not 
necessarily  identical  with  the  end-user/consumer,  a  person 
whom the exporter normally will not be in a position to know 
(R 6-11). 

b.  Article  2  paragraph  1.  third  indent,  reflects,  with 
regard to general documentation, the obligatory character of 

1 Numbers in brackets ("R..") refer to recommendations  in 
the Final Report of the Chemical Action Task Force. 

3> 

naming the ultimate consignee  in the cases of Articles  4, 5 
and 5a  (R 6-11). 

c.  The  new  period  for  keeping  records  etc.  laid  down  in 
Article  2  (4)  corresponds  t'o the  recommendation  that  such4 
records be  kept  "considerably  longer than  two  years"  (R  6-
11) 

d.  The  new  Article  2a  introduces  requirements  for  the 
exercise  of  professional  activities,  ie  the  principle  of 
licensing 
1 
substances, whereas  for those engaged  in Categories  2 and 3 
a  mere  notification  of  the  competent  authorities  is 
sufficient  (R 6, 7, 22). 

for  operators  concerned  with  Category 

e.  Article  4  in  its  revised  version  adapts  the  Community 
monitoring  system  to  the  principle  of  requiring  an 
individual authorization  for each export operation  involving 
Category  1  substances  (R  6) .  Subject  to  agreement  with 
destination countries, the  issuance of an export permit  may 
even  be  made  dependent  on  the  existence  of  an  import 
authorization  in the country of destination  (paragraph 6 ). 

f.  Article  5  in  its  new  form  provides  for  a  general 
authorization requirement  for Category 2 substances as well, 
but  in  certain  cases  the  export  may  be  globally  authorized 
under general permits valid  for a number of operations  or a 
certain time period  (R 8 ). 

g.  Article  5a  introduces  the  geographical  targetting 
approach  appropriate  for  Category  3  substances  which  are 
used  for  the  manufacture  of  cocaine  and  heroin  whose  raw 
materials  (poppy  and  coca)  are grown  in  certain  regions  in 
the  world  only.  The  identification  of  target  zones  takes 
place  in  conjunction  with  the  countries  and  regions 
concerned  (R 9,10). 

h. The amendment of Article 6 paragraph 3 addresses specific 
diversion  risks  existing  in  free  ports  and  free  zones,  as 
well as in other sensitive sectors such as bonded warehouses 
(R 13) . 

i. The new Article  7a reflects the  importance  attributed  by 
the  CATF,  in various  parts  of  its  report, to  international 
co-operation  between  chemical  exporting  countries  and  those 
countries on whose territory  illegal drugs manufacture  takes 
place.  To  this  end,  the  CATF  promotes,  in  particular, 
agreements  which  may  be  concluded  on  a  regional  basis 
wherever necessary  (R 27, 28, 39-41). 

j.  The  Annex  was  restructured  to  comply  with  the  new 
category-based  classification  scheme  and  other  measures 
recommended  by  the  CATF  such  as  the  adding  of  10  new 
substances  as  well  as  the  insertion  of  Acetone  and  Ethyl 
ether  (currently  Table  II)  under  Category  3  (R  5 ). 
Furthermore  the Annex  displays  the  CN Code  for each  of  the 
substances.  This  code  was  unilaterally  introduced  by  the 
Community  in  order  to  facilitate  precursor  monitoring,  and 
will be valid  from 1 January  1992  (R 16). 

PROPOSAL 

COUNCIL REGULATION  (EEC) No 

of 

amending Regulation  (EEC) No 3677/90 laying down measures 

to be taken to discourage the diversion of certain 
substances to the illicit manufacture of narcotic drugs 
and psychotropic  substances 

THE COUNCIL OF THE EUROPEAN COMMUNITIES, 

Having  regard  to  the  Treaty  establishing  the  European 
Economic Community, and in particular  its Article 113, 

Having regard to the proposal  from the Commission, 

Whereas  Regulation  (EEC)  No  3677/90  (1)  laid  down 
measures  to  be  taken  to  discourage  the  diversion  of 
certain  substances to the  illicit manufacture  of  narcotic 
drugs and psychotropic substances, 

Whereas diversion  patterns are rapidly  changing  and  it is 
considered  on the  international  level that the procedures 
identified  by  Article  12  of  the  1988  UN  Convention 
against 
and 
Psychotropic  Substances  need  to  be  reinforced  to 
effectively counter chemical diversion, 

Narcotic 

Traffic 

Illicit 

Drugs 

in 

Commission  and 

States 
Whereas  the 
participated  in  the  works  of  the  Chemical  Action  Task 
Force  created  by  the  Houston  Economic  Summit  (G-7)  on  10 
July  1990  to  develop  effective  procedures  to  prevent 
diversion  of precursor  and essential  chemicals to  illicit 

seven  Member 

1 OJ L 357 of 20.12.1990, p.l 

5" 

drugs  manufacture;  whereas  a  full  Community  coordination 
was  ensured  throughout  these  works,  as  well  as  close 
consultation with representatives of trade and  industry, 

Whereas  the  Final  Report  of  the  Chemical  Action  Task 
Force was approved  by the London Economic Summit  (G-7) on 
15 July 1991, 

Whereas  this  Final  Report,  in  recognizing  the  1988  UN 
Convention  against  Illicit  Traffic  in Narcotic  Drugs  and 
Psychotropic  Substances  as  the  basic  instrument  of 
international  cooperation  in  chemical  diversion  matters, 
contains  a  number  of  recommendations  for  reinforcing 
national  and  international  measures  on  the  basis  of  the 
UN Convention, 

Whereas  some  of  the  recommendations  of  Chemical  Action 
Task  Force  concern  measures  not  covered  by  Regulation 
(EEC) No  3677/90, and  in particular  certain  requirements 
with  regard  to  the  exportation  of  chemical  substances, 
the extension  of the scope of chemical  substances  subject 
to  international  control,  and  a  new  category-based 
classification  scheme  providing  for  appropriate  control 
measures  according  to  the  nature  and  trade  patterns  of 
the  substances  in  each  of  the  three  categories 
established.  Furthermore,  the  Report  recommends  the 
strengthening  of  international  cooperation  by  the 
conclusion  of  bilateral  agreements,  in  particular, 
between  regions exporting  and  regions importing  scheduled 
chemicals. 

Whereas  it  appears  important  that  the  Community,  in view 
of  its  committment  to  the  works  of  the  Chemical  Action 
Task  Force,  implements  the  recommendations  approved,  and 
contributes  as  far  as  possible  to  the  international 
cooperation  in this field, 

HAS ADOPTED THE FOLLOWING REGULATION: 

b 

Article 1 

Regulation  (EEC) No 3677/90 is hereby amended as follows 

1.  Article  1  paragraph  2  subparagraph  (f)  shall  be 
replaced by the following: 

"(f)  'ultimate  consignee'  means  any  natural  or  legal 
person to which the scheduled  substances are delivered  in 
the  country  of  destination.  This  person  may  be  different 
from the end-user;" 

the former subparagraph  (f) becomes (g); 

2. Article  2 paragraph  1, third  indent, shall be replaced 
by the following: 

"-  the  name  and  the  address  of  the  exporter,  the 
importer, the distributor  and  in accordance with  Articles 
4, 5 and 5a the ultimate consignee." 

3.  Article  2  paragraph  4  shall  be  replaced  by  the 
following: 

"4.  The  documents  and  records  referred  to  in  points  1. 
and  3. shall be kept  for a period  of three years  from the 
end  of  the  calendar  year  in which  the  operation  referred 
to  in point  1. took  place, and  must  be  readily  available 
for  inspection  by  the  competent  authorities  upon 
request." 

T 

4. The following Article shall be  inserted: 

"Article 2a 

Licensing and registration of operators 

1. Manufacturers  and  traders,  including  brokers,  engaged 
in the  import,  export  or  transit  of  scheduled  substances 
listed  in  Category  1  of  the  Annex  shall  be  required  to 
obtain  a  license  from  the Member  State  in which  they  are 
established  to  exercise  this  activity.  The  issue  of  such 
a  licence  shall  be  based  in particular  on  the  operator's 
competence  and  integrity  as  appreciated  by  the  competent 
authority. 

The  license  shall  be  suspended  or  revoked  whenever  there 
are reasonable  grounds to believe that  the  conditions  for 
the issue of the license are no longer valid. 

2.  Manufacturers  and  traders,  including  brokers,  engaged 
in  the  export  of  scheduled  substances  listed  in 
Categories  2 or  3 of the Annex  are required  to inform  the 
competent  authorities  of  the  activity  they  exercise  in 
this specific trade." 

5. Article 4 shall be replaced by the  following: 

"Article 4 

Export  authorization 

Substances  listed  in Category  1 of the Annex 

1. The  exportation  of  scheduled  substances  in  Category  1 
of the Annex  shall be subject  to authorization  in form of 
individual  export  permits  issued  by  the  competent 
authorities  of  the  Member  State  in  which  the  customs 
export  formalities are to be  completed. 

21 

? 

2. Requests  for authorizations  referred to  in Paragraph  1 
shall contain the following  information: 

-  the  name  and  address  of  the  exporter,  the  importer  in 
the  third  country  and  any  other  operator  involved  in 
the  export  operation  or  shipment,  and  also  of  the 
ultimate consignee, 

-  the  name  of  the  scheduled  substances  as  given  in 

Category  1 in the Annex 

- the quantity  and weight  of the scheduled  substance  and, 
where  it consists of a mixture, the quantity  and weight 
of any substance or substances listed  in the Annex 

-  details  of  the  shipment  such  as  expected  date  of 
dispatch,  name  of  the  customs  office  where  the  customs 
export  formalities  will  be  carried  out,  transport 
arrangements  and, where known  at this  stage,  itinerary, 
expected  point  of exit  from  Community  customs  territory 
and,  possibly,  point  of  entry  into  the  importing 
country. 

In  the  case  of  paragraph  7,  a  copy  of  the  import  permit 
issued by the destination  country must  be attached  to the 
request. 

3.  A  decision  on  this  request  must  be  taken  within  a 
period  of  15  working  days  after  its  receipt  by  the 
competent  authority.  This  period  may  be  prolonged  if 
further  information  is  requested  or  in  the  case  of 
paragraph 7. 

4.  Without  prejudice  to  any  possible  implementation  of 
technical  enforcement  measures,  the  export  authorization 
referred to in paragraph  1 shall be refused,  if: 

(a)  the  information  supplied  in  compliance  with  the 
obligations  under  paragraph  2  and  paragraph  3  second 
sentence  is  considered  insufficient  or  incomplete,  or 
there  is suspicion that the information  is incorrect; 

(b)  in  the  case  of  paragraph  7,  the  existence  of  an 
import  permit  in  the  country  of  destination  is  not 
sufficiently  established; 
(c) there  are  reasonable  grounds  for  suspecting  that  the 
substances  in  question  are  intended  for  the  illicit 
manufacture of narcotic drugs or psychotropic substances. 

If  the  particulars  on  the  itinerary  and  means  of 
transport  were  not  contained  in  the  request  referred  to 
in  paragraph  2,  the  export  permit  shall  state  that  the 
operator  is  obliged  to  ensure  that  these  particulars  are 
made  available  to  the  customs  or  other  competent 
authority  at  the  point  of  exit  from  the  Community 
territory 
the 
consignment. 

the  physical 

departure 

before 

of 

In  all  cases,  the  export  permit  shall  be  produced  for 
inspection  by  the  customs  authorities  when  the  customs 
export declaration  is lodged. 

5. The  issuance of an export permit does not preclude any 
possible  civil  or  penal  liability  of  the  holder  of  such 
permit. 

6. With regard to requests for pre-export  notification 
addressed to the Community by a third country pursuant 
to Article 12  (10) of the United Nations 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 that country. A copy of this reply  shall 
be  communicated  to  the  Commission  for  circulation  to 
the other Member States; 

Jo 

(c) the authority  furnishing  such  information may  require 
that  the  authority  in  the  third  country  receiving  the 
information  ensures  the  confidentiality  of  any  trade 
industrial  commercial  or  professional  secret  or  any 
trade process referred to therein. 

7. Whenever  there  is  agreement  between  the  Community  and 
a  third  country  that  exports  shall  not  be  authorized 
unless  an  import  permit  has  been  issued  by  the  competent 
authorities  of  the  latter  country  for  the  substances  in 
question: 

(a)  the  Commission  shall  communicate  to  the  competent 
authorities  in  the Member  States  the  name  and  address  of 
the  competent  authority  in  the  third  country  as  well  as 
any operational  information obtained  from this country; 

(b) the  competent  authorities  in the  Member  States  shall 
satisfy  themselves  that  any  importation  has been  properly 
authorized,  if necessary,  by  requesting  confirmation  from 
the authority  referred  to under (a)." 

6. Article 5 shall be replaced by the  following: 

"Article 5 

Specific export  requirements 

Substances  listed  in Category  2 of the Annex 

1. The  exportation  of  scheduled  substances  in  Category  2 
of  the  Annex  shall  be  subject  to  authorization  by  the 
competent  authorities  of  the  Member  State  in  which  the 
customs export  formalities are to be  completed. 

2.  Exports  referred  to  in  paragraph  1  shall  be  subject 
mutatis  mutandis  to  the  rules  laid  down  in  Article  4, 

J* 

wherever  they  appear  to  be  intended,  directly  or 
indirectly,  for any third  country which has informed the 
Commission,  that  it  wishes  the  said  products  to  be 
subject  to  individual  export  authorization  because  they 
might  be  used  for  the  illicit  manufacture  of  narcotic 
drugs  or  psychotropic  substances  in  its  territory.  In 
other  cases,  the  same  rules  shall  apply  whenever  a 
general permit cannot be issued under paragraph 3. 

3.  In  all  other  cases,  the  exportation  of  scheduled 
substances  in  Category  2  of  the  Annex  may  be  globally 
authorized under general permits the issue of which shall 
depend  on  circumstances  such  as  the  reliability  of  the 
operator and the trade pattern concerned. In issuing such 
permits,  the  competent  authorities  shall  consider,  in 
particular, the nature, volume, itinerary and destination 
of the shipments involved. The holder of such permits may 
be required  to  report  periodically  and  in summary  form, 
as determined  by the competent  authority, on the exports 
carried out during this period." 

7. The following Article shall be inserted: 

"Article 5a 

Specific export requirements 

Substances listed in Category 3 of the Annex 

1. The exportation of scheduled  substances  in Category 3 
of  the  Annex  shall  be  subject  to  authorization  by  the 
competent  authorities  of  the  Member  State  in  which  the 
customs export  formalities are to be completed,  wherever 
they  appear  to be  intended,  directly  or  indirectly,  for 
any  third  country  which  has  been  identified  to  be 
concerned  by  the  illicit  manufacture  of  those  narcotic 
drugs  or  psychotropic  substances  which  are  manufactured 

Jh 

under  use  of  scheduled  substances  in  Category  3  of  the 
Annex. 

2.  Exports  referred  to  in  paragraph  1  shall  be  subject 
mutatis  mutandis  to  the  rules  laid  down  in  Article  4, 
wherever,  subject  to specific  arrangements  taken with the 
countries  referred  to  in  paragraph  1,  individual  export 
authorization  is  required.  The  same  rules  shall  apply 
whenever  a  general  permit  cannot  be  issued  under 
paragraph  3. 

3.  In  all  other  cases  covered  by  paragraph  1,  the 
exportation  may  be  globally  authorized  under  general 
permits as referred to in Article 5 paragraph 3. 

4.  The  identification  of  countries  and  substances 
concerned  in the sense of Paragraph  1 takes place  notably 
on  the  basis  of  a  list  established  and  amended  in 
cooperation  between  the  Community  and  the  countries  in 
question.  The  said  list  and  the  amendments  thereto  as 
well  as  the  type  of  export  authorization  each  time 
required  will  be  published  in  Part  C  of  the  Official 
Journal of the European  Communities. 

8. Article 6 shall be replaced by the  following: 

"Article 6 

Legal powers of competent  authorities 

1. In order to ensure the correct  application  of Articles 
2,  4,  5 and  5a, each  Member  State  shall  adopt  within  the 
framework  of  its  domestic  law  the  measures  necessary  to 
enable the competent  authorities: 
(a) to obtain  information  on any  orders  for or  operations 

involving scheduled substances; 

(b)  to  enter  operators'  business  premises  in  order  to 

obtain evidence of irregularities. 

k% 

2. Without  prejudice to the measures  laid down  in Article 
4  (3) ,  Article  5,  Article  5a  and  paragraph  1  of  this 
Article  the  customs  authorities  or  other  competent 
authorities  of  each  Member  State  may  prohibit  the 
introduction  of  scheduled  substances  into  Community 
territory  or  their  departure  from  it,  if  there  are 
reasonable grounds  for suspecting  that  the substances  are 
intended  for the  illicit manufacture  of narcotic  drugs or 
psychotropic substances. 

3.  For  the  purpose  of  preventing  specific  risks  of 
diversion  in  free  zones  and  free  ports  as  well  as  in 
other  sensitive  areas  such  as  bonded  warehouses,  Member 
States  shall  ensure  that  controls  applied  to  operations 
carried  out  in  these  areas  are  effective  at  every  stage 
of  these  operations  and  not  less  stringent  than  those 
applied  in other parts of the customs territory.". 

9. The  following Article shall be  inserted: 

"Article 7 a 

1. The  Commission  is authorized  to negotiate  on behalf of 
the  Community  and  in  close  cooperation  with  the  Member 
States  agreements  of  mutual  administrative  cooperation 
with  third  countries  concerned  in  order  to  prevent  the 
diversion  of  scheduled  substances  to  the  illicit 
manufacture 
psychotropic 
substances. 

narcotic 

drugs 

and 

of 

2.  Before  entering  into  the  negotiations  referred  to  in 
paragraph  1,  the  Commission  will  consult  the  Member 
States  through  the  Council,  namely  as  regards  the 
opportunity  of  the  envisaged  instrument,  its  scope  and 
any  other  specification  which  may  be  relevant.  The 
Commission  takes  into  account  the  opinion  expressed  by 
the Council. 

M 

The agreements in question are concluded by the Council." 

JS 

9. The Annex shall be replaced by the following: 

"ANNEX 

Substance 

CATEGORY 1 

—  Ephedrine 
—  Ergometrine 
—  Ergotamine 
—  Lysergic acid 
—  l-phenyl-2-propanone 
—  Pseudoephedrine 
—  N-Acetylanthranilic acid 
—  3,4 Methylenedioxyphenyl-2-

propanone 

The salts of the substances listed 
in this Category whenever the 
existence of such salts is possible. 

CN Code 

2939 40 10 
2939 60 10 
2939 60 30 
2939 60 50 
2914 30 10 
2939 40 30 
2924 29 50 

2932 90 77 

CATEGORY 2 

—  Acetic anhydride 
—  Anthranilic acid 
—  Phenylacetic acid 
—  Piperidine 
—  Isosafrole  (cis+trans) 
—  Piperonal 
—  Safrole 

2915 24 00 
ex 2922 49 90 
2916 33 00 
2933 39 30 
2932 90 73 
2932 90 75 
2932 90 71 

The salts of the substances listed 
in this Category whenever the 
existence of such salts is possible. 

CATEGORY 3 

—  Acetone 
—  Ethyl ether 
—  Methylethyl ketone  (MEK) 
—  Toluene 
—  Potassium permanganate 
—  Sulphuric acid 
—  Hydrochloric acid 

2914 11 00 
2909 11 00 
2914 12 00 
2902 30 10/90 
2841 60 10 
2807 .00 10 
2806 10 00 

A 

Article 2 

This Regulation shall enter into force on [1 January 
1992]. 

This Regulation shall be binding in its entirety and 
directly applicable in all Member States. 

Done at Brussels, 

For the Council 

The President 

Jfr 

FINANCIAL RECORD 

SECTION  I; FINANCIAL  IMPLICATIONS 

1. Title of operation 

Draft proposal  for a Council  Regulation  amending  Regulation 
(EEC) No 3677/90 of 13 December  1990 laying down measures to 
be  taken  to  discourage  the  diversion  of  certain  substances 
to  the  illicit  manufacture  of  narcotic  drugs  and 
psychotropic substances. 

2. Budget heading  involved: 
-  A-130  Mission  expenses,  travel  expenses  and  incidental 
expenditure 

A-2511  Expenditure  on  meetings  of  committees  whose 
consultation  is  not  compulsory  for  drafting  Community 
legislation 

3. Legal basis: Article  113 EEC Treaty 

4. Description of operation 

Its general  objective  is to  comply  with  the  recommendations 
of the Chemical Action Task Force which were approved by the 
London Economic Summit  (G-7) on 15 July 1991. The  Commission 
and  seven  Member  States  took  part  in the works  of  the  Task 
Force. 

This proposal  is made to fulfill the international  political 
committments  of the Commission  and the  Community. 

4.1. Specific objectives of operation 

- to extend  the  scope  of chemical  substances  covered  by  the 
Regulation 
-  to  introduce  a  still  more  reliable  system  of  export 
controls  destined  to  avoid  the  diversion  of  scheduled 
substances to illicit drugs manufacture 
-  strengthen  the  cooperation  with  third  countries,  notably 
by  the  conclusion  and  management  of  agreements  with 
countries  concerned  by  the  illicit  manufacture  of  cocaine 
and heroin. 

4.2. Duration 

no time limit 

4.3. Target  population 

The  proposed  provisions  are  addressed  mainly  to  economic 
operators  dealing  with  the  chemical  substances  in  question, 
i.e.  manufacturers,  traders,  brokers  etc  involved  in  the 
import, export or transit of such substances. 

5. Classification of  expenditure/revenue 

5.1  Compulsory/Non-compulsory 

Non-compulsory 

js 

5.2 Pifferentiated/Non-differentiated 

Non-differentiated 

5.3 Type of revenue  involved 

The action proposed exclusively  relates to control measures, 
there are no revenues  envisaged. 

6. Type of  expenditure/revenue 

The  envisaged  amendments  to  the  Community  precursor 
monitoring  system  will  result  in  expenses  for  staff, 
missions and meetings to be held with Member States. 

7. Financial  impact on appropriations  for operations  (Part B 

of the budget) 

none 

8. What  anti-fraud  measures  are planned  in the proposal  for 
the operation? 

not applicable 

SECTION  2: ADMINISTRATIVE  EXPENDITURE  (Part A of the budget) 

1.  Will  the  proposed  operation  involve  an  increase  in  the 
number of Commission  staff? If so. how many ? 

The  staff  resources  requested  are  to  be  found  either  by 
means  of  internal  redeployment  or  in  the  framework  of  the 
budgetary procedure  for 1992. 

The staff  requested  serves the adaptation  of the  management 
structure  at  the  Commission  in  order  to  cover,  at  central 
level,  the  supplementary  tasks  resulting  from  the  extended 
monitoring  system  as  described  above.  The  adaptation  would 
comprise two additional officials  (1 A,  I B ). 

2.  Indicate  the  amount  of  staff  and  administrative 
expenditure  involved  in the  proposed  operation.  Explain  the 
method of calculation. 

The  envisaged  amendments  to  the  Community  precursor 
monitoring  system will result  in expenses for: 

- staff resources  (cf. paragraph  1. above) 
- the organization of additional meetings with Member  States 
in  order  to  cover  the  supplementary  tasks,  i.e.,  in 
particular, the system of reinforced  export requirements and 
the preparation  and management  of third  country  agreements. 
It  should  also  be  borne  in  mind  that  the  coverage  of  10 
additional  substances  will  result  in  a  corresponding 
increase  of  cooperation  issues  in  all  the  areas  already 
covered.  The  estimation  shown  below  is based  on  an  initial 

A& 

hypothesis of  1 additional  meeting  per year to be held  with 
Member States in Brussels. 

-  the  organization  of  missions  to  third  countries  outside 
Europe  to  prepare  and  implement  cooperation  agreements 
between  those  countries  and  the  Community.  The  estimation 
shown below  is based on an  initial hypothesis of 2 missions 
per year. 

The following expenses would arise per annum: 

Task 

Staff: 
2 posts A/B: 2 X 85,000 ECU 

Travel expenses for Member 
States experts to Brussels: 
1 x 24 experts: 1 x 15,000 ECU 

Missions expenses for Commission 
officials to countries outside Europe: 
2 x1  official: 2 x 7,500 ECU 

Total 

Budgetary post 
Expenditure 

(Al and A2) 

170,000 ECU 

(A 2 511) 

15,000 ECU 

(A 130) 

15,000 ECU 

200,000 ECU 

The expenses will arise from the budgetary year 1992. 

SECTION  3: ELEMENTS OF COST-EFFECTIVENESS  ANALYSIS 

The  objectives  of  the  proposed  operation  concern  the 
prevention  of  the  illicit  manufacture  and  traffic  of 
narcotic  drugs  and  psychotropic  substances.  The  operation 
envisages  to  strengthen  the  existing  Community  rules  to 
discourage  the  diversion  of  chemical  substances  from  licit 
channels to  illicit  ones, namely by  (1) extending the  scope 
of  substances  covered  from  12  to  22,  (2)  introducing  an 
extensive scheme of obligatory export authorization, and  (3) 
formalizing  the cooperation with  third  countries notably  in 
heroin  and  cocaine  producing  regions  by  the  conclusion  of 
bilateral or regional agreements. The operation relates to a 
prioritary  action  identified  by  the  European  Drugs 
Coordinators  (CELAD) and 1991 Economic Summit  (G-7). 

1. Objectives and coherence with financial programming 

The  expenditures  related  to  staff  will  be  covered  by 
appropriations under the different lines of headings A-l and 
A-2.  The  expenditures  concerning  missions  and meetings  will 
be  covered  by  appropriations  attributed  to  DG  XXI  under 
headings A-130 and A-2511. 

%o 

2. Grounds for the operation 

The  operation  corresponds  to  engagements  taken  by  the 
Community  on  the  international  level  (1988  UN  Convention, 
Recommendations  by  the  G-7  Chemical  Action  Task  Force 
approved by the 1991 London Economic Summit. The Commission 
services are particularly well placed to assume the role of 
a promotion and coordination  instance in this area, notably 
in  the  context  of  formulating  and  managing  Community 
policies towards other industrialized as well as developping 
countries  concerned  by  the  problem  and  the  relevant 
international  organizations. These  tasks cannot  be carried 
out without the necessary means being made available to the 
Commission services concerned. 

3. Monitoring and evaluation of the operation 

The operation directly  implements engagements taken over by 
the Community on the political level. These initiative being 
conceived  without  any  limit  in  time,  the  monitoring  and 
evaluation  will  take  place  on  a  continuous  basis.  The 
performance of the operation will be the subject of regular 
reporting  to  the  European  Drugs  Co-ordinators  (CELAD).  In 
addition,  the  Committee  established  under  the  Regulation 
will conduct a monitoring exercise via its annual report. 

QA 

ISSN 0254-1475 

COM(91) 455 final 

DOCUMENTS 

EN 

05 

Catalogue number : CB-ÇO-91-510-EN-C 

ISBN 92-77-77528-9 

Office for Official Publications of the European Communities 
Lr2985 Luxembourg