Proposal for a Council Decision authorizing conclusion, on behalf of the Community, of an Agreement on drugs precursors and chemical substances between the European Community and the United States of America
Date: 1997-05-06
Institutions: European Commission
Subjects: United States, chemical product, drug traffic, fraud, narcotic

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels,  06.05.1997 
COM(97) 205 final 

97/0131 (ACQ 

Proposal  for a 

COUNCIL  DECISION 

authorizing  conclusion, on behalf of the Community, of an  agreement on drugs 
precursors and chemical  substances 
between the European  Community  and the United States of America 

(presented by the Commission) 

1. EXPLANATORY  MEMORANDUM 

By  Decision  of  25  September  1995  (Doc.  9782/95),  the  Council  authorized  the 
Commission  to  negotiate  on  behalf of  the  Community  agreements  on  the  control  of 
drugs precursors and chemical  substances with the member states of the OAS.  A  first 
series of agreements was concluded on  18 December  1995 with the member countries 
of  the  Cartagena  agreement  *. A  further  agreement  was  signed  with  Mexico  on  13 
December  1996 2. 

The  above  decision  was  taken  to  prevent  the  diversion  of  chemical  substances 
frequently  used  for  the  illicit  manufacture  of  narcotic  drugs  and  psychotropic 
substances, which most  commonly  occurs in international  trade between  the chemical 
exporting  countries  and those  countries  concerned  with  illicit  drugs  manufacture  on 
their own or a neighbouring territory. 

The decision was preceded by close contacts with the relevant  authorities of the OAS 
member  countries  during  which  the  wish  to  conclude  such  agreements  had  been 
repeatedly  expressed.  Over  the  years,  particularly  close  relationships  have  been 
developped  with  the  United  States,  on  the  basis  of  the  fact  that  the  transatlantic 
partners  are  together  responsible  for  approximately  80%  of  the  world  trade  in 
chemicals.  Both  sides felt  that there was a need  not  only to  monitor bilateral  EC-US 
trade in the substances concerned but also to consult each other on chemical shipments 
to  high risk destinations  in third  countries.  Therefore,  specific  provisions  have  been 
included for this purpose in the agreement. 

In compliance with the above-mentioned  decision,  the  Commission  has negotiated an 
agreement with the United States of America which was initialled on  11.04.1997.  It is 
therefore necessary to proceed to the signature and the conclusion of the Agreement. 

The Agreement provides for the possibility of modifying  the lists of substances subject 
to  the  trade  surveillance  mechanisms  referred  to  in  Article  2  of  the  Agreement  and 
which are contained in the Annexes to the Agreement.  Such modification  may include 
changes  in the  number  of  substances  as well  as  the  transfer  of  substances from one 
Annex to the other. 

Where  such  modifications  only  concern  substances  already  covered  by  the  relevant 
Community legislation  on drugs precursors and chemical  substances,  the  Commission 
is authorized to approve such modifications  on behalf of the Community.  The Council 
will designate a Special Committee to assist the Commission in this task. 

1 cf. OJL 324 of 30.12.95 
2 cf. OJ L 77 of 19.03.97 

The Council is therefore  requested to 
- approve  the Agreement  between  the European  Community  and the United  States of 
America on Drugs Precursors and Chemical  Substances on behalf of the  Community; 
- designate a person empowered to sign the Agreement; 
- authorize the Commission, in consultation with a special committee appointed by the 
Council,  to approve modifications  on behalf  of the Community  where the  Agreement 
provides  for  them  to  be  adopted  by  the  Joint  Follow-Up  Group;  however,  such 
authorization  will  be  limited  to  the  modification  of  the  Annexes  of  the  Agreement 
insofar  as  it  concerns  substances  already  covered  by  the  Community  legislation  on 
drugs precursors and chemical substances. 

2, 

Council Decision 
authorizing conclusion, on behalf of the Community, of an agreement on drugs 
precursors and chemical  substances 
between  the European Community  and the United States of America 

THE COUNCIL  OF THE EUROPEAN  UNION; 

Having  regard  to the  Treaty  establishing  the  European  Community,  and  in  particular 
Article  113,  in conjunction  with the  first  sentence  of Article  228  (2), and  Article  228 
(4) thereof, 

Having regard to the proposal from  the Commission, 

Whereas, on 25 September  1995, the Council authorized the Commission  to negotiate. 
on  behalf  of  the  Community,  agreements  on  the  control  of  drugs  precursors  and 
chemical  substances with the Member States of the OAS, 

Whereas the Transatlantic Agenda identified  as a priority  item in EC-US relations, the 
conclusion  of  a  drugs  precursors  agreement  which  would  include  a  specific  pre 
shipment consultation  mechanism. 

Whereas the  Commission,  on the basis of this  authorization  and  the  provisions  of the 
Transatlantic  Agenda,  completed  negotiations  with  the  United  States  of  America  on 
11.04.1997. 

Whereas  it is appropriate that the Council  authorizes the Commission,  in  consultation 
with  a  special  committee  appointed  by  the  Council,  to  approve  modifications  on 
behalf of the Community where the Agreement provides for them to be adopted  by the 
to  the 
Joint  Follow-Up  Group;  however,  such  authorization  will  be  limited 
modification  of  the  Annexes  of  the  Agreement  insofar  as  it  concerns  substances 
already  covered  by  the  Community  legislation  on  drugs  precursors  and  chemical 
substances. 

HAS ADOPTED THIS DECISION: 

Article 1 

1. The agreement between the European Community  and the United  States of America 
on the control of drugs precursors and chemical  substances is approved  on behalf of 
the  Community. 

2. The text of the Agreement is attached to this Decision. 

H-

Article 2 

The President of the Council is hereby authorized to designate the person  empowered 
to sign the agreement negotiated with the United States of America on the control of 
drugs precursors and chemical substances. 

Article 3 

1. The Community  shall be represented  in the Joint Follow-Up  Group provided  for  in 
Article  11 of the Agreement by the Commission, assisted by the representatives of the 
Member States. 

2.  The  Commission  is  authorized  to  approve,  on  behalf  of  the  Community, 
modifications  of  the  Annexes  to  this  Agreement  adopted  by  the  Joint  Follow-Up 
Group by the procedure laid down in Article  12 of the Agreement. 

The  Commission  is  assisted  in  this  task  by  a  special  committee  designated  by  the 
Council. 

3.  The  authorization  referred  to  in  Paragraph  2  shall  be  limited  to  those  substances 
which  are already  covered by the relevant  Community  legislation  on drugs  precursors 
and chemical  substances. 

Done at Brussels 

For the Council 

AGREEMENT 

between the European Community 
and 
the United States of America 

on precursors and chemical substances frequently  used in the 
illicit manufacture  of narcotic drugs or psychotropic  substances 

THE  EUROPEAN  COMMUNITY,  hereinafter  referred  to  as  the  "Community",  on 
the one part, and 

THE  UNITED  STATES  OF  AMERICA,  hereinafter  referred  to  as  the  "United 
States", on the other part, 

DETERMINED  to  prevent  and  combat  the  illicit  manufacture  of  narcotic  drugs  and 
psychotropic  substances  by  controlling  the  supply  of  precursors  and  chemical 
substances frequently  used for such purposes; 

ACKNOWLEDGING  Article  12 of  the  United  Nations  Convention  of  1988  against 
Illicit Traffic  in Narcotic Drugs and Psychotropic  Substances; 

AGREEING  with  the  final  Report  of  the  Chemical  Action  Task  Force  (CATF), 
the  London  G-7  Economic  Summit  on  15  July  1991,  which 
approved  by 
recommended  the  strengthening  of  international  cooperation  by  the  conclusion  of 
bilateral agreements, in 
particular  between  regions  and  countries  involved  in  export,  import  and  transit  of 
these chemical substances; 

CONVINCED  that  international  trade  constitutes  a  specific  risk  factor  and  that  only 
cooperative  arrangements  between  the  regions  concerned  can  prevent  this  danger,  in 
particular by linking export and import controls; 

AFFIRMING  their  common  commitment  to  setting  up  assistance  and  co-operation 
mechanisms  between  the  United  States  and  the  Community  in  order  to  combat  the 
diversion of controlled  substances to illicit purposes, in harmony  with the  orientations 
and actions decided at the international level; 

UNDERLINING  their  common  will  to  improve  the  current  information  exchange 
between  relevant  agencies,  and  without  disturbing  the  existing  working  relations 
between them; 

RECOGNIZING  that these  chemical  substances  are also  mainly  and  widely  used  for 
legitimate  purposes  and  that  international  trade  must  not  be  hindered  by  excessive 
monitoring procedures; 

HAVING  DECIDED  to  conclude  an  Agreement  for  the  control  of  precursors  and 
chemical  substances  frequently  used  in  the  illicit  manufacture  of  narcotic  drugs  or 
psychotropic substances; 

HAVE AGREED AS FOLLOWS: 

Article 1 

Scope of the Agreement 

1. 

This Agreement sets out measures to strengthen administrative co-operation  and 
to improve working relations between the Contracting Parties to prevent the 
diversion of substances frequently  used in the illicit manufacture  of narcotic  drugs 
or psychotropic substances, without prejudice to the due recognition of the 
legitimate interests of trade and industry. 

Nothing in this Agreement: 

- may be interpreted  in a manner which is inconsistent with the UN  international 
drug control treaties, or 

- shall disturb existing working law enforcement  relations in drug-related  matters 
between the United States and the Member States of the European  Community. 

2 

For this purpose, the Contracting Parties shall assist each other, as set out in this 
Agreement, notably in: 

- monitoring the trade between them in scheduled substances, with the aim of 
preventing their diversion to illicit purposes, 

- granting each other the means of mutual consultation on the legitimacy of 
proposed transactions in scheduled  substances destined for third countries, and 

- providing mutual administrative assistance to ensure that the provisions of the 
relevant substance trade control legislation are correctly  applied. 

3. 

Without prejudice to possible amendments which might be adopted within the 
competence of the Joint Follow-up Group, this Agreement applies to the  chemical 
substances listed in the Annex to the  1988 UN Convention against Illicit Traffic  in 
Narcotic Drugs and Psychotropic Substances as amended, hereinafter  referred  to 
as "controlled chemical  substances". 

? 

J*-

Title I 

Trade in controlled chemical substances between the 
Contracting Parties 

Article 2 

Trade surveillance 

1. 

2. 

The Contracting Parties shall consult and inform each other on their own initiative 
of any suspicion that controlled chemical substances may be diverted from 
legitimate trade between them to the illicit manufacture  of narcotic drugs or 
psychotropic substances, in particular when a shipment occurs in unusual 
quantities or under unusual circumstances. 

With regard to the controlled chemical substances listed in Annex A to this 
Agreement, the competent authority of the exporting Contracting Party shall, at 
the same time as the export authorization is issued or a notification  of export is 
received, and as soon as possible, forward  a copy of this information  to the 
competent authority of the importing Contracting Party.  Specific  information 
shall be provided where the operator benefits, in the exporting country, from  an 
open individual authorization covering multiple export operations. 

3.  •  With regard to the controlled chemical substances listed in Annex B to this 

Agreement, the export shall be authorized only when the importing  Contracting 
Party has given its consent. 

4. 

The Contracting Parties undertake to provide, reciprocally and in good time, due 
feedback  on any information  provided or measure requested under this Article. 

J^ 

h-

When implementing the above-mentioned trade control measures, the legitimate 
interests of trade shall be duly respected.  In particular, in cases covered by paragraph 
3, the reply by the importing Contracting Party shall be provided within  15 working 
days after the reception of the message from the exporting Contracting Party. The 
absence of a reply within this time period  shall be deemed as granting an import 
authorization.  The refusal  to grant an import authorization  shall be notified  in writing, 
including electronic means, to the exporting Contracting Party within this time period 
and the reasons for it must be documented. 

Article 3 

Suspension of shipment 

1.  Without prejudice to any possible implementation of technical enforcement  measures, 

shipments shall be suspended if,  in the opinion of either Contracting Party, there are 
reasonable grounds to believe that controlled  chemical substances may be diverted  to 
the illicit manufacture  of narcotic drugs or psychotropic  substances. 

The Contracting Parties shall co-operate in supplying each other with  information 
relating to suspected diversion operations. 

Title  n 

Trade in controlled chemical substances with other countries 

Article 4 

Pre-shipment  consultation 

1.  Without  prejudice to Articles 6, 7 and 8, whenever a competent  authority, in 

processing a request for  an export  authorization to a third country,  suspects that the 
controlled  chemical substances involved may be diverted to illicit drugs  manufacture, 
appropriate information  should normally be relayed to the other Contracting Party to 
this Agreement, with the request to the competent  authority of this Contracting Party 
for  relevant information  in its possession which may confirm  or refute  the possible 
diversion. 

2. 

3. 

4. 

To comply with the request mentioned in Paragraph  1, provided that the necessary 
information has been made available, the requested Contracting Party shall search 
its databases or other available sources for information relating to the case and 
communicate its findings to the requesting Contracting Party.  Whenever possible, 
the reply should be given within five working days after receipt of the request. 

The requesting authority, on its own responsibility and with due assessment of all 
the elements of the case, shall determine whether to authorize, deny or take other 
action concerning the export in question.  It shall then notify the requested 
authority of the decision taken. 

The Contracting Parties shall immediately notify each other of any decision to 
stop a shipment of controlled chemical substances to third countries, which they 
believe may be of interest to the other Contracting Party, and shall provide such 
information regarding the shipment as appropriate. 

Article 5 

Other information 

Without  prejudice  to  Articles  6,  7  and  8,  the  Contracting  Parties  shall  periodically 
exchange  other  data  and  information  concerning  trends  and  circumstances  as  seem 
desirable to achieve the purposes of this Agreement. 

Tide III 

General provisions 

Article 6 

Mutual administrative assistance 

1. 

2. 

3. 

The Contracting Parties shall supply to each other, either on their own initiative or 
on request, information to prevent the diversion of controlled chemical substances 
to the illicit manufacture of narcotic drugs or psychotropic substances and shall 
investigate cases of suspected diversion.  When necessary, they shall adopt 
appropriate precautionary measures to prevent diversion. 

Any request for information or precautionary measures shall be responded to as 
promptly as possible. 

Requests for administrative assistance shall be executed in accordance with the 
laws, regulations and other legal instruments of the requested Contracting Party.  « 

4. 

5. 

6. 

7. 

1. 

2. 

3. 

Officials  of a Contracting Party may, with the agreement of the other  Contracting 
Party, be present at the inquiries carried out in the territory of the latter. 

The Contracting Parties shall assist each other to facilitate the provision of 
evidence. 

Administrative assistance provided under this Article shall not prejudice the rules 
governing mutual legal assistance in criminal matters, nor shall it apply to 
information  obtained under powers exercised at the request of a judicial  authority, 
unless the authority  so agrees. 

Information  may be requested in respect of chemical substances which are 
frequently  used in the illicit manufacture  of narcotic drugs or psychotropic 
substances but which are not included in the scope of this Agreement. 

Article 7 

Information  exchange and  confidentiality 

Data relating to natural persons may be exchanged only where the receiving 
Contracting Party undertakes to afford  such data with at least substantially the 
same level of protection as the one applicable to that particular instance in the 
Contracting Party liable to supply them.  To this end, the Contracting  Parties  shall 
provide each other with information  setting forth the applicable standards of the 
Contracting Parties, including where appropriate the legal standards of the 
Member  States of the Community. 

Any information  communicated  in whatsoever form pursuant to this Agreement 
shall be of a confidential  or restricted nature, depending on the rules applicable in 
each of the Contracting Parties, and shall be used solely for the purposes of this 
Agreement.  Such information  shall be afforded  in the receiving Contracting  Party 
the same protection in respect of confidentiality  and official  secrecy as applies in 
that Contracting Party to similar information  under the relevant laws of the 
Contracting Party which received it. 

Assistance may be postponed, or provided with conditions, on the ground that it 
would otherwise interfere with an ongoing investigation, prosecution or 
proceeding, or jeopardize the security of sensitive sources and methods of 
gathering information.  In such a case, the authority which could provide 
assistance shall consult with the competent authority of the other  Contracting 
Party to determine if assistance can be given subject to such terms or conditions 
as the providing authority may require. 

// 

Information  obtained shall be used solely for the purposes of this  Agreement. 
Where one of the Contracting Parties requests the use of such information  for 
other purposes, it shall ask for the prior written consent of the authority which 
furnished  the information.  Moreover, such use shall be subject to any restrictions 
laid down by that authority. 

Paragraph 4 shall not impede the use of information  in any judicial or 
administrative proceedings subsequently  instituted for failure to comply with 
substance control legislation.  The competent authority which supplied that 
information  shall be notified  of such use. 

Article 8 

Exceptions to the obligation to provide  assistance 

1. 

2. 

The Contracting Parties shall make every reasonable effort  to routinely  provide 
requested information  and assistance. 

In cases where the requested Contracting Party is of the opinion that  compliance 
with the request would: 

- infringe  upon the sovereignty of the United States or of a Member State of the 
Community, or 

- present a serious issue of public policy, security or other essential interests, in 
particular the cases referred to in Article 7(1) concerning natural persons, and in 
Article 7(3) concerning ongoing investigations, prosecutions or proceedings and 
the security of sensitive sources and methods of gathering information,  or 

- be contrary to the legal system of the requested Contracting Party, including, 
where appropriate, the legal system of the Member States of the  Community 
liable to provide the assistance, assistance can be refused  or compliance may be 
made subject to the satisfaction  of certain conditions or requirements. 

If one Contracting Party requests assistance which it could not itself supply 
entirely or partially pursuant to a similar request, it shall so state in its request. 
The other Contracting Party shall then decide in what form  it can comply with the 
request. 

If assistance is refused  under this Article, the decision and its explanatory  reasons 
shall be communicated without delay to the other Contracting Party. 

43. 

Article 9 

Technical and scientific  co-operation 

The  Contracting  Parties  shall  co-operate  in  the  identification  of  new  diversion 
methods  as well  as  appropriate  countermeasures,  including  technical  co-operation  to 
strengthen  administrative  and  enforcement  structures  in this  field  and  to  promote  co 
operation  with  trade  and  industry.  Such  technical  co-operation  may  concern,  in 
particular, training and exchange programmes for the officials  concerned. 

Article 10 

Implementation  measures 

Each Contracting Party shall identify  a competent authority or competent 
authorities to co-ordinate the application of this Agreement.  These  authorities 
shall communicate directly with one another for the purposes of this  Agreement. 

The Contracting Parties shall keep each other informed  of the provisions  which 
they adopt for the implementation of this Agreement. 

Article 11 

Joint Follow-up  Group 

A Joint Follow-up Group on the control of precursors and chemical  substances is 
hereby established, hereinafter  referred  to as "the Joint Follow-up Group", in 
which each Contracting Party to this Agreement  shall be represented. 

2. 

The Joint Follow-up  Group shall act by mutual agreement.  It shall normally  meet 
once a year, date, place and programme being fixed  by mutual  agreement. 
Extraordinary  meetings of the Joint Follow-up  Group may be convened by 
agreement of the Contracting Parties. 

3. 

The Joint Follow-up Group shall adopt its own rules of procedure. 

fl 

Article 12 

Role of the Joint Follow-up Group 

1. 

The Joint Follow-up Group shall monitor the administration of this Agreement 
and ensure its proper implementation.  For this purpose: 

•  - it shall study and develop the necessary means to ensure the correct  functioning 

of the present Agreement, 

- it shall be regularly informed  by the Contracting Parties of their experience in 
applying this Agreement, 

- in the cases provided for in Paragraph 2, it shall take decisions, 

- in the cases provided for in Paragraph 4, it shall make recommendations, 

- it shall study and develop the co-operation measures referred  to in Article 9, and 

- it shall study and develop other possible forms of co-operation in matters 
relating to precursors and chemical substances. 

2. 

The Joint Follow-up Group shall adopt by mutual consent decisions to amend 
Annexes A and B. 

Such decisions shall be implemented by the Contracting Parties in accordance 
with their own legislation. 

If,  in the Joint Follow-up Group, a representative of a Contracting  Party has 
accepted  a decision subject to the completion of procedures necessary for that 
purpose, the decision shall enter into force, if no date is contained therein, on the 
first  day of the second month after  such a completion is  notified. 

3. 

The Joint Follow-up Group shall adopt, by mutual consent, the procedures to be 
followed  in pre-shipment consultations laid down in Article 4. 

4 

.The Joint Follow-up Group shall recommend to the Contracting Parties: 

- amendments to this Agreement, and 

- any other measures required for the implementation of this Agreement. 

H 

Article 13 

Other agreements 

1. 

2. 

3. 

As regards controlled chemical substances, and subject to Article 7(3), nothing in 
this Agreement or in other agreements concluded between the Community and the 
United  States shall prejudice  Community provisions governing the 
communication between the competent administrative authorities within the 
Community of any information  obtained in matters covered by this Agreement 
which could be of Community  interest. 

Nothing in this Agreement shall prejudice the provisions of any Mutual  Legal 
Assistance Treaty between the United States and any Member State of the 
Community. 

The Contracting Parties shall also exchange information  with each other on 
measures in substance control matters taken with other countries. 

Article 14 

Entry into  force 

This Agreement shall enter into force on the first day of the second month  following 
the date of signature. 

Article 15 

Duration and denunciation 

1. 

2. 

3. 

This Agreement shall be concluded for five years and, unless  otherwise 
terminated,  it shall be automatically renewed for successive five-year  periods. 

This Agreement may be amended by mutual consent of the Contracting Parties. 

This Agreement may be terminated at any time by either Contracting Party upon 
90 days' written notice. 

fb 

Article 16 

Authentic texts 

This Agreement is drawn up in duplicate in the Danish, Dutch, English, Finnish, 
French, German, Greek, Italian, Portuguese, Spanish and Swedish languages, all texts 
being equally authentic. 

IN WITNESS  WHEREOF, the undersigned, being duly authorized, have signed this 
Agreement. 

DONE at 

, on 

FOR THE EUROPEAN  COMMUNITY: 

Mr....  [to be designated] 
Minister  for... 
President-in-Office 

Mr. ... [to be designated] 
Minister  for... 

FOR THE UNITED STATES OF AMERICA: 

Mr./Ms. ... [to be designated] 
[to be designated] 

<L 

y 

ANNEX A: 

Substances subject to the measures referred  to in Article 2(2) 

Ephedrine 
Ergometrine 
Lysergic acid 
1 -phenyl-2-propanone  (phenylacetone) 
Pseudoephedrine 
Acetylanthranilic acid (2-Acetamidobenzoic  acid) 
3,4 Methylenedioxy-phenylpropan-2-one 
Isosafrole 
Piperonal 
Safrole 
Phenylacetic acid 
Piperidine 

( 

ANNEX B: 

Substances subject to the measures referred  to in Article 2(3) 

i 

n 

Joint statement bv the Contracting  Parties 
concerning Article 7(H 

The Contracting  Parties agree to convene a meeting  of the Joint  Follow-Up  Group  as 
soon  as  possible  after  the  entry  into  force  of  this  Agreement  in  order  to  reach  a 
common  interpretation  of  the  necessary  criteria  to  be  complied  with  concerning  the 
relevant levels of protection to be applied under Article 7(1). 

They  stress  that  such  a  common  interpretation  is  indispensable  to  respect  the  legal 
system referred  to in Article 8(2). 

The  Contracting  Parties  further  stress  their  common  basis  for  trust  and  co-operation 
and the  desirability  for  ensuring  a common  and  mutually  complementary  application 
of the provisions of this Agreement. 

Side Instrument concerning Article 13 

Letter by the Community 

With  respect  to  the  Chemical  Control  Agreement  between  the  European 
Community  and  the  United  States  of  America,  the  Contracting  Parties  agree  that,  to 
the  best  of  their  collective  knowledge,  they  cannot  identify  any  bilateral  executive 
agreements,  memoranda  of  understanding,  or  other  similar  instruments  between  the 
United  States  and  individual  Member  States  of  the  Community  that  specifically 
address  the  issue of  controlled  chemical  substances.  Thus, the present  Agreement  is 
the  only  agreement  that  specifically  addresses  the  issue  of  controlled  chemical 
substances in the field  of administrative  cooperation. 

The  European  Community  states  that,  under  the  provisions  of  the  Treaty  on 
the  European  Union,  and  in  particular  Article  228,  Paragraph  7  thereof,  insofar  as 
provisions  of  bilateral  executive  agreements,  memoranda  of  understanding,  or  other 
similar  instruments  that  may  have  been  previously  concluded  between  any  of  the 
Member  States  of the  Community  and the  United  States  are  incompatible  with  those 
of  this  Agreement,  the  latter  shall  govern  insofar  as the  incompatibility  concerns  the 
exclusive  competence  of the Community  as exercised through  Community  legislation 
referring  to controlled chemical  substances. 

However, the provisions  of these other agreements  between Member  States  of 
the  Community  and  the  United  States  are  not  affected  insofar  as they  address  issues 
which  fall  within  the  scope  of Title  VI  of the  Treaty  on the  European  Union.  When 
there  are  uncertainties  as  to  the  applicability  of  this  Agreement  or  the  provisions  of 
any  such  complementary  agreements,  the  Contracting  Parties  will  consult  promptly 
and take appropriate steps to resolve the matter. 

n 

JL 

Reply by the United States 

I have the honor to acknowledge receipt of your letter, dated today, concerning 
the  applicability  of  the  US-EC  Agreement  on  precursors  and  chemical  substances 
frequently used in the illicit manufacture  of narcotic drugs or psychotropic substances, 
which reads as follows: 

"With  respect  to  the  Chemical  Control  Agreement  between  the  European 
Community  and  the United  States  of  America,  the  Contracting  Parties  agree  that,  to 
the  best  of  their  collective  knowledge,  they  cannot  identify  any  bilateral  executive 
agreements,  memoranda  of  understanding,  or  other  similar  instruments  between  the 
United  States  and  individual  Member  States  of  the  Community  that  specifically 
address  the  issue  of  controlled  substances.  Thus, the  present  Agreement  is the  only 
agreement  that  specifically  addresses  the  issue  of  controlled  chemical  substances  in 
the field  of administrative cooperation. 

The  European  Community  states  that,  under  the  provisions  of  the  Treaty  on 
the  European  Union,  and  in  particular  Article  228,  Paragraph  7  thereof,  insofar  as 
provisions  of  bilateral  executive  agreements,  memoranda  of  understanding,  or  other 
similar  instruments  that  may  have  been  previously  concluded  between  any  of  the 
Member  States  of the  Community  and the  United  States  are  incompatible  with  those 
of this  Agreement,  the  latter  shall  govern  insofar  as the  incompatibility  concerns  the 
exclusive competence  of the Community  as exercised through Community  legislation 
referring  to controlled chemical substances. 

However, the provisions of these other agreements between Member  States of 
the  Community  and  the  United  States  are  not  affected  insofar  as  they  address  issues 
which  fall  within  the  scope  of Title  VI  of the Treaty  on the  European  Union.  When 
there  are  uncertainties  as  to  the  applicability  of  this  Agreement  or  the  provisions  of 
any  such  complementary  agreements,  the  Contracting  Parties  will  consult  promptly 
and take appropriate steps to resolve the matter." ' 

The  United  States  shares  the  common  understandings  recorded  in  that  letter 
and  takes  note  of  the  EC  statement  contained  therein.  The  United  States  confirms 
that,  in  the  event  of  a  question  regarding  the  possible  compatibility  of  provisions  of 
this  Agreement  and  of  other  bilateral  executive  agreements,  memoranda  of 
understanding,  or  other  similar  instruments,  it  stands  ready  to  consult  promptly  with 
the Community with a view to a satisfactory  resolution of the question. 

iS 

V 

FINANCIAL  STATEMENT 

concerning the signature and conclusion of Agreements 

on the Control of Drugs Precursors and Chemical  Substances 

between the European Community and 

the member countries of the Organization of American States (OAS)j 

including the United  States of America 

Please note that this operation  is fully  covered  by the  financial  statement  on 
the operation  "Negotiation  of precursor control  agreements  with the  member 
countries  of the Organization  of the American States (OAS)" as approved  by 
the  Council  in  its  decision  of  25  September  1995. There  are  no  additional 
resource needs for the current operation. 

In this  context,  it should  be noted, that  no  resources  for  technical  assistance 
will  be  required  in  the  case  of the  United  States  (North-South  co-operation 
schemes under B7-6210 not being applicable in this case). 

1.  Title of operation 

Signature  and  conclusion  of  agreements  on  the  Control  of  Drugs  Precursors  and 
Chemical  Substances between the European Community and the member countries of 
the Organization of American States (OAS), including the United States . 

2.  Budget heading involved 

A1,A2,A4,A5 

Staff  expenditure 

A-l 30 

A-250 

3.  Legal  basis 

Mission expenses, travel expenses and 
incidental expenditure incurred by Commission  staff 

Meetings in general 

Article  113 of the EC Treaty 

Council Regulation  (EEC) No  3677/90 of  13 December  1990 (OJ No L 357 of 
20.12.90, p.l),  as last amended  by Council  Regulation  (EEC) No  900/92  of 31 
March  1992  (OJ  No  L  96  of  10.4.92,  p.l),  and  implemented  by  Commission 
Regulation  (EEC)  No  3769/92  of  21  December  1992  (OJ  No  L  383  of 
(EEC) 
29.12.92,  p. 17),  as 
No 2959/93 (OJ No L 267 of 28.10.93, p.8) 

last  amended  by  Commission  Regulation 

2o 

4.  Description of operation 

4.1  General  objective 

To  establish  co-ordinated  trade  controls  on  drugs  precursors  for  the  benefit  of 
both  parties  and  thereby  strengthen  as  transatlantic  partnership  in  anti-drugs 
matters 

4.2  Period covered and arrangements for renewal 

5 years, with tacit annual renewal thereafter.  01.07.1997 - 30.06.2002 

5.  Classification  of expenditure or revenue 

6.  Type of expenditure or revenue 

7.  Financial  impact 

not applicable 
7.1  Method  of  calculating  total  cost  of  operation  (relation  between  individual  and 

total costs) 

7.2 

Itemised breakdown of cost 

7.3  Schedule of commitment and payment  appropriations 

8.  Fraud  prevention  measures 

9.  Elements of cost-effectiveness  analysis 

9.1  Specific  and quantified  objectives; target population 

9.2  Grounds for the operation 

9.3  Monitoring and evaluation of the operation 

10.  Administrative  expenditure (Section III, Part A of the  budget) 

Actual  mobilization  of  the  necessary  administrative  resources  will  depend  on  the 
Commission's  annual  decision  on the allocation  of resources, taking  into account  the 
number of staff and additional amounts authorized by the budgetary  authority. 

at 

10.1  Effect  on the number of posts 

Type of post 

Staff 
to  be  assigned 
managing the operation 
Permanent 
posts 

Temporary 
posts 

or 

Officials 
temporary 
staff 
Other resources 

A 
B 
C 

Total 

1 

I 

1 

1 

to 

Source 

Duration 

Additional 
resources 

Existing 
resources 
in 
the  DG  or 
department 
concerned 
2 

5 years 

2 

10.2.  Overall financial  impact of additional human resources 

Amounts 

Method of calculation 

(ECUs) 

Officials 

Temporary  staff 

Other Ressources 

Total 

" 

_ _ _ _ ^ _ _ _ _ _^ 

The  expenses  related  to  human  resources  required  for  the  completion  of  this  action 
will be made available upon mobilisation of existing resources: 

Officials/Temporary  staff (Titles A1,A2,A4,A5): 

200,000 ECUs*5years = 

1,000,000 ECUs 

10.3.  Increase in other administrative expenditure as a result of the operation 

Budget heading 

Amounts 

j 

Method of calculation 

(ECUs) 

Tot I 

1 

2.V 

The  administrative  expenditure  required  for  the  completion  of  this  action  will  be 
made available by mobilisation of existing resources: 

(1)  A-130 (Mission): 

2 missions/year for 2 officials  each, thereof one to North America, one to  South 
America. Duration: 7 days 

North America 

(travel: 2x 2,800 ECUs, subsistence 2x776 ECUs) 

7,150  ECUs 

South America 

(travel: 2x 4,500, subsistence 2x776 ECUs) 

Total A-130 (5years) 

(2)  A-250  (Meetings) 

10,750 ECUs 

88,500  ECUs 

taking place once a year alternatively  in Brussels, North America, Brussels and 
South America 

Brussels 

travel costs (15 MSt delegates x 695 ECUs) 

10,425 ECUs 

North  America 

travel costs (15 MSt delegates x 2,800  ECUs) 

42.000 ECUs 

South America: 

travel costs (15 MSt delegates x 4,500 ECUs) 

67,500 ECUs 

Annual average costs: 

(12,500 + 42,000 +  12,500 + 67,500)./. 4 = 

Total A-250 (5years) 

33,000 ECUs 

165,000  ECUs 

53 

ISSN 0254-1475 

COM(97) 205  final 

DOCUMENTS 

EN 

11  05  15 

Catalogue  number  :  CB-CO-97-188-EN-C 

ISBN 92-78-19421-2 

Office  for  Official  Publications of the European  Communities 

L-2985  Luxembourg 

it