CELEX: 51991PC0455
Language: en
Date: 1991-11-22
Title: 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

COMMISSION OF THE EUROPEAN COMVIUNITIES
                                           COM(91)455   final
                                           Brussels,  22 November 1991
                             Proposal f o r a
                      COUNCIL REGULATION (EECI
                                AMENDING
  REGULATION (EEC) NO 3 6 7 7 / 9 0 OF 1 3 DECEMBER 1 9 9 0 LAYING DOWN
  MEASURES TO BE TAKEN TO DISCOURAGE THE D I V E R S I O N OF CERTAIN
  SUBSTANCES TO THE I L L I C I T MANUFACTURE OF NARCOTIC DRUGS AND
                     PSYCHOTROPIC SUBSTANCES
                   (presented by the Commission)
 ---pagebreak---                    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
 ---pagebreak--- 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>
 ---pagebreak--- 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    for  operators   concerned   with  Category      1
substances, whereas for those engaged in Categories 2 and 3
a mere notification of the competent authorities is
sufficient (R 6, 7, 22).
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).
 ---pagebreak---                                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    Illicit    Traffic     in   Narcotic    Drugs    and
Psychotropic    Substances    need   to   be   reinforced    to
effectively counter chemical diversion,
Whereas    the    Commission    and   seven   Member     States
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
1 OJ L 357 of 20.12.1990, p.l
                                                                5"
 ---pagebreak--- 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
 ---pagebreak---                           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
 ---pagebreak---    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
 ---pagebreak--- 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;
 ---pagebreak--- (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   before   the   physical   departure   of   the
consignment.
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
 ---pagebreak---  (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*
 ---pagebreak--- 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
 ---pagebreak--- 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%
 ---pagebreak--- 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    of   narcotic    drugs   and   psychotropic
substances.
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
 ---pagebreak--- The agreements in question are concluded by the Council."
                                                          JS
 ---pagebreak--- 9. The Annex shall be replaced by the following:
                          "ANNEX
Substance                               CN Code
CATEGORY 1
—  Ephedrine                            2939  40 10
—  Ergometrine                          2939  60 10
—  Ergotamine                           2939  60 30
—  Lysergic acid                        2939  60 50
—  l-phenyl-2-propanone                 2914  30 10
—  Pseudoephedrine                      2939  40 30
—  N-Acetylanthranilic acid             2924  29 50
—  3,4 Methylenedioxyphenyl-2-
                          propanone     2932 90 77
The salts of the substances listed
in this Category whenever the
existence of such salts is possible.
CATEGORY 2
—  Acetic anhydride                     2915  24 00
—  Anthranilic acid                  ex 2922  49 90
—  Phenylacetic acid                    2916  33 00
—  Piperidine                           2933  39 30
—  Isosafrole (cis+trans)               2932  90 73
—  Piperonal                            2932  90 75
—  Safrole                              2932  90 71
The salts of the substances listed
in this Category whenever the
existence of such salts is possible.
CATEGORY 3
—  Acetone                              2914  11 00
—  Ethyl ether                          2909 11  00
—  Methylethyl ketone (MEK)             2914 12  00
—  Toluene                              2902 30  10/90
—  Potassium permanganate               2841 60  10
—  Sulphuric acid                       2807 .00 10
—  Hydrochloric acid                    2806 10  00
                                                       A
 ---pagebreak---                          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
 ---pagebreak---                        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
 ---pagebreak--- 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&
 ---pagebreak--- 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                                        Budgetary post
                                              Expenditure
Staff:                                         (Al and A2)
2 posts A/B: 2 X 85,000 ECU                   170,000 ECU
Travel expenses for Member                        (A 2 511)
States experts to Brussels:
1 x 24 experts: 1 x 15,000 ECU                 15,000 ECU
Missions expenses for Commission
officials to countries outside Europe:             (A 130)
2 x 1 official: 2 x 7,500 ECU                  15,000 ECU
Total                                         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
 ---pagebreak--- 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
 ---pagebreak---  ---pagebreak---                                                                      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