Proposal for a Council Decision concerning the conclusion of the Agreement between the European Community and the Republic of Chile on precursors and chemical substances frequently used for the illicit manufacture of narcotic drugs and psychotropic substances
Date: 1998-09-03
Institutions: European Commission
Subjects: Chile, chemical product, cooperation agreement (EU), international trade, narcotic

COMMISSION  OF THE EUROPEAN  COMMUNITIES 

Brussels,  03.09.1998 

COM(1998) 359 final 

98/0201 (ACC) 

Proposal for a 

COUNCIL  DECISION 

concerning the conclusion of the Agreement between the European Community  and 
the Republic of Chile on precursors and chemical substances frequently  used for the 
illicit manufacture of narcotic drugs and psychotropic  substances 

(presented by the  Commission) 

EXPLANATORY  MEMORANDUM 

"^Xl/19!)/98--bN-()l-Ul/Uy/1998-

1. 
Article  12  of  the  United  Nations  Convention  of  Vienna  against  the  illicit  traffic  in 
narcotic  drugs  and  psychotropic  substances  oi'  1988  imposes  the  establishment  of  adequate 
controls  on  the  trade  in  twenty-two  scheduled  precursors  which  may  be  diverted  to  the  illicit 
manufacture  of  drugs;  precursors  are  chemical  substances  which,  though  having  a  licit  use 
and  generally  traded  on  a licit basis,  may  also  be diverted  to the  illicit  manufacture  of  narcotic 
drugs  or  psychotropic  substances.  As  trade  in  precursors  is  covered  by  Article  113  of  the  EC 
Treaty,  the  Community  is Contracting  Party  to the  UN  Vienna  Convention  of  1988. 

2. 
In  line  with  the  UN  Vienna  Convention  of  1988,  the  Community  has  approved  the 
appropriate  internal  legislation  to fight  the diversion  of  precursors  to  the  illicit  manufacture  of 
chugs  at  Community  and  international  level.  While  Council  Directive  (>2/l09/nHC  deals  with 
the  manufacturing  and  placing  of  precursors  on  the  Community  market.  Council  Regulation 
3677/90  addresses  the  trade  in  precursors  between  the  Community  and  third  countries  by 
setting  forth  a number  of export  requirements. 

3. 
Provisions  relevant  to  precursor  control  are  found  under  legal  instruments  other  than 
the  UN  Vienna  Convention  of  1988  and  the  above-mentioned  Community  legislation.Thus, 
the  co-ordinated  granting  of  export  and 
import  authorisations,  mutual  administrative 
assistance  and  the exchange  of sensitive  information  (individuals,  companies,  ...) on  precursor 
diversion  require  a specific  legal  framework. 

4 
As  enshrined  in  the  Chemical  Action  Task  Force  recommendations  of  1991,  adopted 
under  the  aegis  of  the  G  7,  a  regional  approach  may  usefully  be  followed  in  order  to  avoid 
that  illicit  traffic  in  precursors  circumvents  national  controls  via  neighbouring  countries.  In 
this  context,  the  Council  authorised  the Commission  by  Decision  of  25  September  1995  (Doc. 
(>782/95)  to  negotiate  with  the  countries  of  the  Organisation  of  American  States  (OAS),  on 
behalf  oï  the  Community,  bilateral  agreements  on  precursor  diversion.  These  have  been 
signed,  concluded  and  are  currently  in  force  with  the  countries  of  the  Cartagena  agreement1 
(Bolivia,  Colombia,  Equator,  Peru  and  Venezuela),  Mexico"  and  the  United  States'. 

K. 
In  accordance  with  the  above-mentioned  Decision,  the  Commission  has  negotiated  an 
Agreement  on  precursor  control  with  Chile  which  was  initialled  on  3  December  1997.  It  is, 
therefore,  necessary  to proceed  to the signature  and  conclusion  of such  an  Agreement. 

The  Agreement  features  the  possibility  of  amending  the  lists  attached  as  Annexes  A 
ô 
and  B  to  the  Agreement.  Such  Annexes  contain  the  precursors  which  are  submitted  to  the 
monitoring  mechanisms  under  Article  2  of  the  Agreement.  The  amendments  to  the  lists  may 
consist  either  of  changing  the  number  of  chemicals  ur^er  the  Annexes,  or  transfering  the 
chemicals  from  one  annex  to  the  other.  Should  these  amendments  concern  only  chemicals 
which  are  already  monitored  under  Community  Law on  precursor  control,  the  Commission  is 
empowered  to  approve  such  amendments  on  behalf  of  the  Community.  The  Council  shall 
appoint  a special  committee  lo assist  the Commission  in such  a task 

CI'.  O.i  1.  >24  of  M)A2 
CT.  Oj  1.  77  of  l«>.î  I W7 
(T  O.I  I.  S ( 4 u ! . !l  (..l«>«>7 

|V*>5 

-—À\tn9^98-LN-Ul-UUU//T998 

The Council  is therefore  invited  to: 

Approve,  on  behalf  of  the  Community,  the  Agreement  between  the  European  Community 
and  Chile on  drugs  precursors  and  chemical  substances. 

Appoint  an empowered  person  to sign  the  Agreement. 

Authorise  the  Commission,  in  consultation  with  a  special  committee  as  appointed  by  the 
Council,  to approve,  on  behalf  of  the  Community,  the appropriate  amendments  should  the 
Agreement  impose  such  amendments  to  be  adopted  by  the  joint  follow-up  group;  such  an 
authorisation  shall,  however,  be  limited 
to  the  amendment  of  the  Annexes  to  the 
Agreement  in  case  the  amendments  concern  substances  which  aie  already  covered  by  the 
existing  Community  legislation  on  drugs  precursors  and  chemical  substances 

XXI/ 195798-CN-01 -01 /07/19% 

PROPOSAL  FOR  A  COUNCIL  DECISION 
concerning  the  conclusion  of the  Agreement  between  the  European  Community  and  the 
Republic  of Chile  on  precursors  and  chemical  substances  frequently  used  for  the  illicit 
manufacture  of  narcotic  drugs  and  psychotropic  substances 

THE  COUNCIL  OF THE  EUROPEAN  UNION: 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular  Article 
1  13,  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  authorised  the  Commission  to  negotiate  with 
the  member  states  of  the  Organisation  of  American  States,  on  behalf  of  the  Community  for 
agreements  on  the  control  of  drugs  precursors  and  chemical  substances,  whereas 
the 
Commission  completed  such  negotiations  with  Chile on  3 December  1997; 
Whereas  the  Agreement  between  the  European  Community  and  Chile  on  the  control  of  drug 
precursors  and  chemical  substances  frequently  used  for  the  illicit  manufacture  of  narcotic 
drugs  and  psychotropic  substances  should  be  approved; 
Whereas  it  is  appropriate  that  the  Council  should  authorise  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;  whereas  such  authorisation  must,  however,  be  limited  to  the  modification  of  the 
in  so  far  as  they  concern  substances  already  covered  by 
Annexes  to  the  Agreement 
Community  legislation  on  dings  precursors  and  chemical  substances, 

HAS  ADOPTED  THIS  DECISION: 

Article I 

The  Agreement  between  the  European  Community  and  the  Republic  of  Chile  on  the  control 
of  drugs  precursors  and  chemical  substances  frequently  used  for  the  illicit  manufacture  of 
narcotic drugs  and  psychotropic  substances  is hereby  approved  on  behalf of the  Community. 

Article 2 

The  President  of  the  Council  is hereby  authorised  to  designate  the  person  empowered  to  sign 
the  Agreement. 

Article 3 

The  President  of  the  Council  shall  cany  out,  on  behalf  of  the  Community,  the, exchange  of 
instruments  provided  for  in  Article  12 of the  Agreement.' 

The dale of the Agreement"s entry  into force will be published  in the Official  Journal of the European 

Communities bv the Councils  General  Secretarial. 

t \ 

~  XXI/193/98  ON  01  01/07/lQPik» 

Article 4 

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

2  The  Commission  is  authorised  to  approve,  on  behalf  of  the  Community,  modifications  to 
the  Annexes  to  the  Agreement  adopted  by  the  Joint  Follow-Up  Group  under  the  procedure 
laid  down  in  Article  I Oof  the  Agreement 
The  Commission  shall  be  assisted  in  this  task  by  a  special  committee  appointed  by  the 
Council  with  instructions  to establish  a common  position 

3.  The  authorisation  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. 

Article 5 

This  Decision  shall  be published  in the Official  .Journal of the Kuropean  Communities. 

Done  at Brussels 

For the  Council 

XX1/19V 98-EN-UU-U1/U //1 y98 

Draft 

AGREEMENT 

between  the European  Community  and  the  Republic  of  Chile 

on  the prevention  of diversion  of precursors  and  chemical  substances  frequently  used 

in  the  illicit  manufacture  of  narcotic  drugs  or  psychotropic  substances 

XX1/193/98  EN  00  01/07/1998. 

(DRAFT) 

AGREEMENT 

between  the  European  Community  and  the  Republic  of  Chile  on  the  prevention  of 

diversion  of  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  REPUBLIC  OF  CHILE, 

hereinafter  referred  to as "Chile",  on  the other  pail, 

hereinafter  referred  to as "the  Contracting  Parties", 

WITHIN  THE  FRAMEWORK  and  development  of  the  United  Nations  Convention 

of  1988  against  Illicit  Traffic  in  Narcotic  Drugs  and  Psychotropic  Substances,  signed 

on  20 December  1988  in Vienna,  hereinafter  referred  to as "the  1988  Convention". 

DETERMINED  to  prevent  and  combat  the  illicit  manufacture  of  narcotic  drugs  and 

psychotropic  substances  by  preventing  the  diversion  of  precursors  and  chemical 

substances  frequently  used  for such  purposes; 

ACKNOWLEDGING  Article  12 of the  1988  Convention; 

ACKNOWLEDGING  the  final  Report  of  the  Chemical  Action  Task  Force  (CATF), 

approved  by  the  London  G-7  Economic  Summit  on  15 July  1991,  and  agreeing  with 

the  recommendation  to  strengthen  international  cooperation  by  the  conclusion  of 

bilateral  agreements,  between  regions  and  countries  involved  in  export,  import  and 

transit  of  these  substances; 

•—XXV195/98-BN-00-01  /07/199» 

CONVINCED  that  international  trade  may  be  used  for  the  diversion  of  the  products 

in  question,  and  that  it  is  necessary  to. conclude  and  implement  agreements  between 

the  regions  concerned,  establishing  a  wide  cooperation  and,  in  particular,  linking 

export  and  import  controls; 

AFFIRMING  their  common  commitment  to  setting  up  assistance  and  cooperation 

mechanisms  between  Chile  and  the  Community  in  order  to  prevent  the  diversion  of 

controlled  substances  to  illicit  purposes,  in  harmony  with  the orientations  and  actions 

decided  at  international  level; 

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; 

HAVE  DECIDED  to  conclude  an  Agreement  on  the  prevention  of  diversion  of 

precursors  and  chemical  substances  frequently  used  in  the  illicit  manufacture  of 

narcotic  daigs  or  psychotropic  substances,  and,  to  this  end,  have  designated  as  their 

plenipotentiaries: 

THE  EUROPEAN  COMMUNITY: 

THE  REPUBLIC  OF  CHILE: 

WHO,  having  exchanged  credentials  of  their  full  powers,  found  in  good  and  due 

form, 

HAVE  AGREED  AS  FOLLOWS: 

? 

YYI/IQS/QK  FN  no  oi/oTi'mn 

/f/7/'t7f  / 

Scope of the  agreement 

1.  This  Agreement  sets  out  measures  to  strengthen  administrative  cooperation 

between  the  Contracting  Parties  to  prevent  the  diversion  of  controlled  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. 

2  For  this  purpose,  the  Contracting  Parties  shall,  in  accordance  with  their  legal,  and 

where  appropriate,  constitutional  provisions  and  their  legal  framework,  assist  each 

other  as set out  in this  Agreement,  notably  in: 

-  monitoring  the  trade  between  them  in  controlled  substances,  with  the  aim  of 

preventing  their  diversion  to  illicit  purposes, 

-  providing  mutual  administrative  assistance  ensuring  that  the  provisions  of  the 

relevant  legislation  on  the  control  of  trade  in  controlled  substances  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  substances 

listed  in Tables  I and  II of the  Annex  to  the  1988 Convention  as  last  amended  referred 

to  in this  Agreement  as "controlled  substances". 

9 

• XX1/19V98-EN-00-01/07/1998 

Article  2 

Trade  monitoring 

1. The  Contracting  Parties  shall  consult  and  inform  each  other  on  their  own  initiative 

of  any  suspicion  that  controlled  substances  may  be  diverted  to  the  illicit  manufacture 

of  narcotic  drugs  or  psychotropic  substances,  in  particular  when  a shipment  occurs  in 

unusual  quantities  or  under  unusual  circumstances 

2.  With  regard  to  the  controlled  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  and  prior to the departure of the  consignment,  forward  a 

copy  of  the  export  authorization 

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  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. 

5.  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  of  receiving  the  message  from  the exporting  Contracting  Party  The  absence  of  a 

reply  within  this  period  shall  be  deemed  as  equivalent  to  the  granting  of  an  import 

authorization  The refusal  to grant  an  import  authorization  shall  bo  notified  in  writing 

to  the exporting  Contracting  Party  within  this  period  and  must  be  substantiated. 

40 

xximsm-ex^o-mowm 

Article  3 

Suspension  of  shipment 

1.  Without  prejudice  to  the  application  of  pertinent  operational  measures,  shipments 

shall  be  suspended  if,  in  the  opinion  of  either  Contracting  Party,  there  are  sufficient 

prior  indications  to believe  that  specified  controlled  substances  may  be  diverted  to  the 

illicit  manufacture  of  narcotic  drugs  or  psychotropic  substances,  or  where,  in the  cases 

described  in  Article  2  (3),  the  importing  Contracting  Party  requests  the  suspension  , 

subject  in  all  cases  to  prior  compliance  with  the  rules  and  procedures  laid  down  in  the 

legal  framework  of the  Contracting  Party  that  is to adopt  the  measure of  suspension. 

2.  The  Contracting  Parties  shall  cooperate 

in  supplying  each  other  with  any 

information  relating  to presumed  diversion  operations. 

Article  4 

Mutual  administrative  assistance 

1  The  Contracting  Parties  shall  supply  to  each  other,  either  on  their  own  initiative  or 

on  request,  any  information  to  prevent  the  diversion  of  controlled  substances  to  the 

illicit  manufacture  of  narcotic  drugs  or  psychotropic  substances  or  shall  investigate 

cases  of  suspected  diversion.  Where  necessary 

they  shall  adopt  appropriate 

precautionary  measures  to prevent  diversion. 

2.  Any  request  for  information  or  precautionary  measures  shall  be  complied  with  as 

promptly  as  possible. 

3.  Requests  for  administrative  assistance  shall  be  executed  in  accordance  with  the 

laws,  regulations  and  other  legal  instruments  of  the requested  Contracting  Party. 

A*\ 

-•  XXI/I9V9ÎLEN  00  01/07/1998 

4  Officials  (if  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. 

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

evidence. 

6  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. 

7.  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  5 

Information  exchange  and  confidentiality 

1.  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. 

It  shall  be  covered  by  the  obligation  of  official 

secrecy  and  shall  enjoy  the  protection  extended  to  similar  information  under  the 

relevant  laws or provisions  applicable  in  the Contracting  Party  which  received  it. 

2.  Data  relating  to  natural  persons  may  be  exchanged  only  where  the  receiving 

Contracting  Party  undertakes  to  afford  such  data  with  at  least  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 

information  setting  forth  the applicable  standards  of  the  Contracting  Parties,  including 

where appropriate  the  legal  standards  of the  Member  States of the  Community. 

14 

"xxi/19fi/oo-"ENTHRrnro»9a» 

3  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  competent  authority  which 

supplied  the  information.  Moreover,  such  use  shall  be  subject  to  any  restrictions  laid 

down  by that  authority. 

4.  Paragraph  3  shall  not 

impede 

the  use  of 

information 

in  any  judicial  or 

administrative  proceedings  subsequently  instituted  for  failure  to  comply  substance 

control  législation  The  competent  authority  which  supplied  that  information  shall  be 

notified  of such  use. 

Article  6 

Exceptions  to the obligation  to  provide  assistance 

1.  The  Contracting  Parties  may  refuse  to  give  assistance  as  provided  for  in  this 

Agreement,  where  to do so  would: 

(a)  be  likely  to  prejudice  the  sovereignty  of  Chile  or  of  a  Member  State  of  the 

Community, 

(b)  be  likely  to  prejudice  public  policy  and  security  or  other  essential  interests,  in 

particular the cases  referred  to  in Article  5 (2); or 

(c) violate an  industrial,  commercial  or professional  secret. 

2.  If one Contracting  Party  requests  assistance  which  it  could  not  supply  itself  entirely 

or  partially  upon  a similar  request,  it shall  state  this  situation  in  its  request.  The  other 

Contracting  Party  shall  then  decide  in what  form  it  can  comply  with  the  request. 

3.  If  assistance  is  refused,  the  decision  and  its  explanatory  reasons  shall  be  notified 

without  delay  to the other  Contracting  Party 

-Î3 

^ I / l v V Ti  riif  nn rnnTi'inn 

Article  7 

Technical  and  scientific  cooperation 

The Contracting  Parties  shall  cooperate  in the  identification  of  new  diversion  methods 

as  well  as  appropriate  countermeasures,  including  technical  cooperation  to  strengthen 

administrative, 

investigation  and  control  structures 

in 

this  field  and  promote 

cooperation  with  trade  and  industry.  Such  technical  cooperation  may  concern,  in 

particular,  training  and  exchange  programmes  for  the  officials  concerned  as  well  as 

the equipment  necessary  for  the  implementation  of this  Agreement. 

Article H 

Implementation  measures 

1. The  Contracting  Parties  shall  endeavour  to  implement  this  Agreement  taking  into 

account  the  necessity  of  a  consistent  approach  to  legislation  on  controlled  substances 

for  the entire  inter-American  region. 

2.  Each  Contracting  Party  shall  appoint  a  competent  authority  or  competent 

authorities  to  coordinate  the  application  of  this  Agreement.  These  authorities  shall 

communicate  directly  with  one  another  for  the  purposes  of  this  Agreement. 

3.  The  Contracting  Parties  shall  keep  each  other  informed  of  the  provisions  which 

they  adopt  for  the  implementation  of this  Agreement. 

• • • • MM 

X X I £ l £ £ / a t t J 3 ^^ 

Article  9 

Joint  FoHow-l.Jp  Group 

1  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.  This  Group  is 

considered  as  a  sub-group  under  the  Joint  Committee  set  up  by  Article  35(1)  of  the 

Framework  Co-operation  Agreement  between  the  Community  and  its  Member  States, 

of the one  part,  and  the  Republic  of Chile, of the other  part. 

2.  The  Joint  Follow-up  Group  shall  act  by  mutual  agreement.  It  shall  normally  meet 

once  a year,  with  the  date, place and  programme being fixed  by  mutual  agreement.  To 

the  extent  possible,  these  meetings  shall  be  organized  simultaneously  with  those  of 

other  joint  committees  or  joint  groups  on  the  control  of  precursors  and  chemical 

substances  established  between  the  Community  and  other  Member  States  of  the 

Organization  of  American  States. 

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  it own  rules of  procedure. 

Article  JO 

Role of the Joint  Fol low-Up  Group 

I  The  Joint  Follow-up  Group  shall  administer  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, 

As 

-  XXI/195/9U  EN  UU  Ul/07/lMfr 

—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  3, it shall  make  recommendations, 

—it shall  study  and  develop  the technical  assistance  measures  referred  to  in  Article  7, 

—it shall  study  and  develop  other  possible  forms  of  cooperation  in  matters  relating  to 

controlled  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  the  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  recommend  to the Contracting  Parties: 

(a) amendments  to this  Agreement; 

(b) any  other  measure  required  for  the application  of this  Agreement. 

•ic 

. YYTH nyn» .LN4JU-U l/U //1 IW 

/Jr//t7c  // 

Obligations imposed under other agreements 

1.  Taking  into  account  the  respective  competencies  of  the  Community  and  its 

Member States, the provisions of this Agreement shall: 

-  not affect the obligations of the Contracting Parties under any other 

international  agreement or convention; 

-  be  deemed  complementary  with  agreements  covering  controlled  substances 
which  have been  or may be concluded  between  individual  Member  States  of 
the Community and Chile; and 

-  not affect the provisions governing the communication between the competent 
services of the Commission and the customs authorities of the Member States 
of the Community of any information obtained under this Protocol 
which  could be of interest to the Community. 

2.  Notwithstanding the provisions of paragraph  1, the provisions of this Agreement 
shall  take  precedence  over  the  provisions  of  any  bilateral  agreements  in 
controlled  substances  matters  which  have  been  or  may  be  concluded  between 
Member  States  of  the  Community  and  Chile,  insofar  as  the  provisions  of  the 
latter are incompatible with those of this Agreement. 

3. 

In  respect  of  questions  relating  to  the  applicability  of  this  agreement,  the 
Contracting  Parties  shall  consult  each  other  to  resolve  the  matter  in  the 
framework of the Joint Follow-up Group set up under Article 9. 

4  The Contracting  Parties shall also notify  each other of any measures in substance 

control matters taken with other countries 

1=?-

JQOafl.VP0  EM  00  01/07/1990 

Article  12 

Entry  in to  force 

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

the  date  on  which 

the  Contracting  Parties  have  exchanged 

their 

respective 

instruments  of  ratification,  acceptance  or  approval,  according  to  the  rules  applicable 

for  each  Contracting  Party. 

Article  13 

Duration  and  denunciation 

1  This  Agreement  shall  be concluded  for  five  years  and,  unless  otherwise  disposed,  it 

will  be tacitly  renewable  for  successive  periods  of the same  duration. 

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

3.  Either  Contracting  Party  may  withdraw  from  this  Agreement  provided  it  gives  12 

months'  prior notice  in  writing  to the other  Contracting  Party. 

Article  14 

Authentic  texts 

This  Agreement,  which  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,  shall  be  deposited  in  the  archives  of  the  General 

Secretariat  of  the Council  of the  European  Union,  which  shall  deliver  a certified  copy 

thereof to each  Contracting  Party. 

At 

-aiXI/195/98-EN-00-01/07/199ft-

ANNEX A 

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

Methyl ethyl ketone 

Toluene 

Potassium  permanganate 

Sulphuric acid 

Acetone 

Ethyl ether 

Hydrochloric acid 

Acetic anhydride 

Anthranilic acid 

Phenylacetic acid 

Piperidine 

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

ANNEX B 

Note:  The list of substances must always include a reference to their salts, where 

appropriate. 

A2> 

•XXI/195/90  EN-

Statements  to be  included  in the Council  minutes 

1. 

Article  1(3) 

The  Council  and  the  Commission  agree  that  save  in  exceptional  circumstances 
arising  from  a  country's  specific  situation  the  Community  will  not  give  favourable 
consideration  to  amendments  to  the  annexes  to  this  Agreement  that  would  extend 
the  application  of  Article  1(3)  beyond  the  list  of  chemical  substances  annexed  to 
the  1988 UN  Convention  unless  such  amendments  are a preliminary  to  amendment 
of the  annexes  to the Convention  itself. 

2.  Article  2(2) 

The Council  and  the  Commission  note  that  the  first  sentence  of  Article  2(2)  is  not 
applicable  if  an  operator  has  an  open  individual  authorisation,  in  which  case  the 
exporting  contracting  party  is  simply  required  to  inform  the  importing  contracting 
party  of the  existence  and  details  of the authorisation  in  accordance  with  the  second 
sentence of paragraph  2. 

3. 

Article  4 

The Council  and  the Commission  note  that  Article 4  is applicable only  to the  extent 
it concerns  mutual  administrative  cooperation. 

4. 

[Article  4(7) 

The Council  and  the Commission  agree that  the contracting  parties  are  not  required 
to  supply  any  information  that  may  be  requested  under  Article 4(7),  even  in  cases 
where  no exception  to the obligation  to give  assistance  is provided  for  in  Article (>.] 

5. 

Article  5(2) 

The  Council  and  the  Commission  agree  that  the  law  of  the  Member  State  that 
directly  or 
for 
establishing  the  level  and  conditions  of data  protection  under  Article  5(2). 

the  data  should  be 

the  reference  point 

indirectly  supplied 

6. 

Article  5(4) 

The  French  delegation  states  that  Article  5(4)  is  subject  to  compliance  with  any 
restrictions  laid  down  by  the  authority  referred  to  in  paragraph  3  where  such 
restrictions  refer  to the  use of  information  for  legal  proceedings. 

7. 

Article  0(2)  (deleted  -  refers  In  option  !  that  was  not  included  in  the  standard 
agreement) 

(D:  refusal  where  there  is  a  breach  of  industrial,  commercial  or  professional 
secrecy  and/or  data  protection  is not  equivalent  to that  given  by  German  law.) 

^o 

8. 

Article  7(ex  Statement  8) 

ïjie  Council  and  thc_Commission  agree  that  the  Community  should  not  enter  into 
technical  and  scientific  cooperation  undertakings 
that  exceed  available  staff 
capacity  in the  Member  States  and  the  Commission. 

9. 

Article  10 (ex  Statement  9) 

The  Council  and  the  Commission  slate  that  the  implementing  provisions  to  be  laid 
down  for  the  form  and  content  of  requests  shall  not  fall  below  the  standards  set  by 
other  comparable  agreements. 

<M 

xxin<K m  EM  or  o 1/07/199?r 

FINANCIAL  STATEMENT 
Concerning  the signature  and  conclusion  of an 
Agreement  on  the 
control  of drugs  precursors  and  chemical  substances 
between  the  European  Community  and  Chile 

This  operation  is  fully  covered  by  the  financial  statement  on  the  operation  « Negotiation  of 
precursor  control  agreements  with the Me m her  countries  of  the  Organization  of  the  American 
States  (OAS)  »  as  approved  by  the  Council  Decision  of  25  September  1995  There  ara  no 
additional  resources  needed  for  the current  operation. 

1.  TITLE  OF  OPERATION 

Signature  and  conclusion  of  an  Agreement  on  the  control  of  drugs  precursors  and  chemical 
substances  between  the European  Community  and  Chile. 

2.  BUDGET  HEADINGS  INVOLVED 

A-1300: 

A-2500: 
B7-6210  : 

Mission  expenses, travel  expenses  and  incidental  expenditure  incurred 
by Commission  staff 
Meetings  in  general 
North-South  co-operation  in the fight  against  drugs  and drug  abuse 

3.  LEGAL  BASIS 

- Council  Regulation  (EEC)  N° 3677/90 of  13 December  1990 (QJ  N" L 357 of  20.12.90,  p.l),  as 
last  amended  by  Council  regulation  (EEC)  N"  900/92  of  31  March  1992 (OJ  N°  L 96  of  10.4.92, 
p.l),  and  implemented  by  Commission  Regulation  (EEC)  N°  3769/92  of  21  December  1992  (OJ 
N°  L 383 of  29.12.92,  p.  17),  as  last  amended  by  Commission  regulation  (EEC)  N°  2093/97  (OJ 
N °L  267 of 25.10.97,  p. 11). 
-Council  Regulation  (EEC) N° 2046/97 of  13.10.1997. 

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  North-South  as  well  as trans-atlnntic  partnership  in anti-drugs  matters 

4.2.  Period  covered  and  arrangements  for  renewal 

5 years, with  tacit  annual  renewal  thereafter. 
01.01.1999-31.12.2004 

21 

5.  C L A S S I F I C A T I ON  OF  E X P E N D I T U RE  OK  R E V E N UE 

'^^Mrf^im^n^uMiÂnm^ 

PartAiCND 

Part B: DNO/CD 

6.  T Y PE  OF  E X P E N D I T U RE  OR  R E V E N UE 

100%  subsidy. 

7.  FINANCIAL IMPACT 

7.1. Method of calculating total cost of operation (relation  between  individual and total costs) 

30,000 ECUs per year are planned  as of budget year  1998. 

7.2. Itemised breakdown of cost 

Annee  1998 

Commitment  appropriations 
ECU million (at current prices) 
Total 
APB 
1999 
0.030 

0.060 

0.030 

0.030 

0.030 

0.060 

Breakdown 

Training 

Total 

7.3. Schedule of commitment  and payment  appropriations 

1998 

ECU million (at current  prices) 
APB 
1999 
0.030 

0.060 

Total 

0.030 

Commitment 
appropriations 

Payment 
appropriations 

1998 

1999 

0.030 

0.030 

0.030 

0.030 

0.0 to 

0.0  M 

0  060 

Total 

Z  3 

- 8-

. XXI/19S/98- EN  01  01/07/1998-

8.  FRAUD  PREVENTIONS  MEASURES 

The  bodies  responsible  in  the  Community,  namely  the  Court  of  Auditors  and  the  Financial 
Control,  will  take the  appropriate  measures  in  anti-fraud  matters. 

Furthermore,  the  precursor  control  Agreement  with  Chile  sets  up  a joint  follow-up  group  as  a 
sub-group  under  the  Joint  Committee  set  up  by  the  Framework  Co-operation  Agreement.  Such  a 
joint  follow-up  group  will  assess  the  implementation  of  the  precursor  control  Agreement  and 
supervise  the  projects  being  funded  to comply  with  the objectives  under  the  Agreement. 

9.  E L E M E N TS  OF  COST-EFFECTIVENESS  ANALYSIS 

9.1.  Specific  and  quantified  objectives;  target  population 

Control  of  international  trade  in  drugs  precursors  has  a  direct  impact  on  the  availability  of 
chemicals  to  illicit  drugs  manufacture.  Improved  international  co-operation  renders  the  supply  of 
illicit  drugs  more  difficult,  and  helps  achieve  public  health  objectives  by  reducing  the  quantity  of 
illicit  drugs  on  the  market. 

9.2. Grounds  for  the  operation 

The  action  corresponds  to  engagements  taken  by  the  Community  at  international  level  (1988  UN 
Convention,  Recommendations  by  the  G-7  Chemical  Action  Task  Force  approved  by  the  1991 
London  Economic  Summit). 

9.3.  Monitoring  and  evaluation  of the  operation 

The  effectiveness  of  the  Agreement  and  its  related  technical  assistance  will  be  supervised  by  the 
joint  follow-up  group  under  the  Agreement.  Additionally,  on-the-spot  missions  will  ensure 
compliance  with  the objectives  of the  Agreement. 

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. 

ZH 

-.  XXI/195/98-EN-01-01/07/1998 

Duration 

Additional 
resources 

Source 

Existing 
resources  in 
the  DG or 
department 
concerned 

10.1.  Effect  on  the  number  of  posts 

No  additional  staff  is  required. 

Type of  post 

Staff  to be  assigned  to 
managing  the  operation 
Permanent 
posts 

Temporary 
posts 

Officials  or 
temporary 
staff 
Other  resources 

A 
B 
C 

Total 

1 

1 

1 

1 

10.2. Overall  financial  impact  of additional  human  resources 

No  additional  resources  are  required. 

Amount  of  redeployed  credits  : 2 x  108,000  ECU  per year = 216,000  ECU. 

Officials 
Temporary' agents 
Other resources (quote budget 
line) 

ECUs 
Montants 
108,000 
108,000 

Calculation  method 
2x108,000 

Total 

216,000 

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

The credits  below  shall  be obtained  on  the basis of  redeployment  of existing  resources. 

Budget  heading 
_____ 

A-7030 

Total 

ECU 
Amounts  Method  of  calculation 

8,480 

see below  (I) 

9,750 

see below  (2) 

18,230 

~ 

The amounts  given  correspond  to expenditure  for  12 months  as the  action  is  indefinite. 

2-T 

(1) Missions (A-701):  1  mission a year for 2 officials.  Duration: 4 days. 

XXI/193/98-CN-O1-O1/Q7/1990 

- South America 

travel = 
subsistence = 

ECU 

2 x 3.500 
2 x 4x  185 

8.480 

(2) Meetings (A-7030): taking place once a year alternatively  in Brussels and South America'. 

" Brussels: travel costs = 15 MSt delegates x 650 ecus = 

-Annual average costs = (9.750+8.480) / 2 = 

ECU 

9.750 

9.115 

1 Upon approval of Coreper the Council pays the travel costs for the MS delegates attending the meetings abroad 
within the precursor control Agreement 

2Q> 

ISSN 0254-1475 

COM(98) 359 final 

DOCUMENTS 

EN 

11  05  15 

Catalogue  number  :  CB-CO-98-376-EN-C 

ISBN  92-78-37072-X 

Office  for Official  Publications of the European Communities 

L-2985 Luxembourg 

z=t-