CELEX: 51990PC0215
Language: en
Date: 1990-06-20
Title: PROPOSAL FOR A COUNCIL REGULATION ( EEC ) LAYING DOWN MEASURES TO BE TAKEN TO DISCOURAGE THE DIVERSION OF CERTAIN SUBSTANCES TO THE ILLICIT MANUFACTURE OF NARCOTIC DRUGS AND PSYCHOTROPIC SUBSTANCES

COMMISSION OF THE EUROPEAN COMMUNITIES
                                       C0MC90) 215 final
                                       Brussels,  20 June 1990
                                Proposal for a
                          COUNCIL REGULATION (EEC)
      laying down measures to be taken to discourage the diversion of
             certain substances to the illicit    manufacture of
                 narcotic drugs and psychotropic substances
                        (presented by the Commission)
 ---pagebreak---                                              - 2 -
                             EX PL. A N AT OR Y ME M OS A N. D U M.
A ,^,.„„G ei r \ er al observa t ion s,
1. On 8 June 1989, the Community signed the 1988 UN
Convention against Illicit Trafficking in Narcotic Drugs and
Psychotropic Substances, on the basis of its competences in
matters covered by Article 12. All Member States of the
Community have in the meantime also signed the Convention.
2. Article 12 of the Convention requires Parties to take
appropriate measures to prevent the diversion of precursors.
Precursors are chemical products, in particular solvents or
acids (ether, acetone, ephedrine) which in the main are the
subject of legitimate trade (manufacture of paint, glue,
varnish....), but which can equally serve the illegal
manufacture of drugs. In effect, the manufacture of certain
drugs or psychotropic substances is impossible without the
use of certain chemical substances which make it possible,
for example,              to use        natural       sources       (poppies, coca
leaves...) to manufacture drugs such as heroin or cocaine,
or yet, can be used in the manufacture of synthetic drugs
 (LSD, amphetamines..)
These chemical substances are called precursor products and
consist mainly of solvents or acids originating in the
chemical industry.
3. The extent cf the traffic
According to the DEA (Drug Enforcement Administration) of
the United States, cocaine traffickers need between 6,000
tonnes and 12,000 tonnes per year of chemical products to
process the coca leaves, whereas American production of
these products is about 60,000 tonnes. According to them, in
1988 most of these products came from the USA; Europe was
then a secondary supplier along with Brazil, Argentina and
the Peoples Republic of China. That means that 10 to 20% of
the American production was either illegal or was being
diverted, mostly without the knowledge of the manufacturers.
There is no precise data concerning the Community, but
according to American sources, a very large increase (+438%
for certain              products)       in supplies           originating   either
directly or indirectly in Europe has taken place in 1989.
This coincides with the entry into force of new American
legislation which, by indirect consequence, provides an
 incentive for the traffickers to search for supplies in
places where the risks are less, specifically in. Europe. The
principal countries concerned are the Federal Republic of
Germany, France, Italy, the Netherlands and the United
Kingdom. The majority of the consignments are routed via the
Federal Republic of Germany. As to the companies concerned,
it affects not only the producers and manufacturers, but
 ---pagebreak---                            - 3-
 also the merchants, brokers, forwarding agents and other
 intermediaries. Concerning only the producers, the DEA
 estimates that there are 950 in the world, 490 in the USA.
 In this way the DEA controls for their part, 2500
 transactions per year, an average of 15 per day.
 4. Precursor monitoring in the meantime is considered
 worldwide a necessary and appropriate means of discouraging
 manufacture and thus reducing supply of illicit drugs. It
 American   drug   producing    countries   «-    ,.„,-.. ^--*.,.t
particular, during the negotiations of the 1988 Convention
and again in the Cartagena Declaration of 15 February 1990.
Politically, the proposed regulation has thus to be seen as
an important contribution by industrialized countries in the
North-South dialogue. For these reasons, the adoption of a
Community precursor instrument has been recognized by CELAD
as one of the three priority items in Community anti-drug
action.
5. At the same time, it is noted that - unlike drugs strictu
sensu - only a very minor share of the substances concerned
is subject to illicit diversion whereas most of the trade
and manufacture     is entirely    legitimate. Therefore, an
efficient monitoring system must not unilaterally be based
on enforcement considerations but duly take into account the
interests of legitimate trade.
6. The proposed Regulation intends to institute, on a
Community basis, a monitoring system over international
precursor trade as required by Article 12 of the Convention.
In conformity with the Council Decision of 1 June 1989 and
the requirements of the Single Market of 1993, the proposal
envisages a non-bureaucratic and cooperation-based solution
which at the same time avoids the creation new obstacles to
intra-Community trade. In due consideration of areas covered
by Member States' competence, the proposal in a number of
instances limits itself to the identification of certain
objectives to be met by national legislation.
7. The proposal has intentionally avoided to introduce any
sort   of   licensing   arrangement   which    would      not    only
contradict the non-bureaucratic character of the system
agreed at the Council but also prove to be counterproductive
on the practical level. Past experience in Member States in
the monitoring of precursors and other sensitive goods has
shown that the most fruitful cooperation and the best
results are obtained whenever economic operators are guided
by competent authorities in the collection and exploitation
 ---pagebreak---                                 4 -
of information rather than if their cooperative spirit is
exhausted   by   the completion   of   formal  administrative
procedures.
Licensing systems, in particular with regard to export, do
not provide for any additional guarantee against diversion
to illicit purposes: experience again shows that licensing
requirements may easily be circumvented by misdescription of
goods or falsified documents, and due to extremely sporadic
export controls, such manipulations are not likely to be
detected. Furthermore, the present proposal allows competent
authorities to react in cases of possible diversion as
firmly as under any licensing system, ie shipments to non-
Community countries may be suspended or even forbidden if
diversion to illicit purposes appears certain.
8. This approach differs in certain aspects from that of the
USA, because of the differences between the European drugs
market and that of the USA (type of products consumed,
percentage of drug addicts in the population, geographical
situation, population     involved...).   In this way, the
American legislation is more extensive as regards the list
of products covered (20 products as against 12), whereas the
Community text is limited, in accordance with the unanimous
advice of experts, to the list foreseen by the Vienna
Convention. Again the American legislation covers certain
materials and equipment (tableting machines, encapsulating
machines)    which concern above all certain synthetic drugs
 (amphetamines) within the context of domestic production. It
consists, moreover, of numerous details of a bureaucratic
nature which have no place in Community legislation, and
which are linked to the administrative organisation of each
Member State. It includes, finally, a very large number of
points on the matter of penalties, which are difficult to
imagine in the drafts of a Community text which is limited
to establishing a corresponding obligation for Member States
as has been done in the matter of insider dealing.
 ---pagebreak---                             - 5-
    Contents of the Regulation
1. In conformity with the UN Convention, the proposed
regulation distinguishes between two types of precursors (cf
Table I and Table II in the Annex), ie those with limited
use for licit purposes (Table I substances) and others with
essential importance for legitimate commercial use (Table II
substances). Both categories of precursors are subject to
the general monitoring scheme laid down in this Regulation
whereas the more stringent measures of Article 4 apply to
Table I substances only.
2. On the basis of this principal distinction.                the
Regulation contains the following features (1):
a. Article 1_ determines the scope of the Regulation, ie
monitoring of external Community trade, and defines a number
of terms essential for its application.
b. Considering that preventive measures as well as the
tracing of diverted substances will be primarily be carried
out on the basis of documentary evidence. Article 2 requires
that    economic   operators   keep   appropriate    records and
documentation, and label goods clearly and ensures that
competent authorities obtain access to documents and records
for verification purposes (9d,e UNC).
c. Article 3. containing the centerpiece of the standard
monitoring scheme, reflects the cooperation-based approach
by stimulating economic operators as well as other persons
professionally     involved   to   inform   authorities   of any
circumstance indicating the possibility of diversion (9a
U N O . Paragraph 3 ensures that such disclosure done in good
faith does not lead to legal disadvantages               for the
informant.
d. Article 4 (10a U N O establishes the specific export
surveillance scheme with regard to Table I substances whose
introduction by industrialized countries represented one of
the main items in North-South discussions during the Vienna
negotiations.     Paragraph   1 contains      the  principle   of
obligatory pre-export notification by operators vis-à-vis
national monitoring authorities, paragraph 2 providing for
the exact content of such notifications ( 10a i)-iv) U N O .
Although no export licensing system is foreseen, paragraph 3
empowers monitoring authorities to suspend or even interdict
shipment according      to the degree of doubt          regarding
legitimate destination of the substances involved. Paragraph
4 provides for routine communication of these notifications
to the country of intended import whenever the latter has
requested such communication from the Community.
e
  • Article 5. intends to facilitate the application of the
Regulation     by   supplying    monitoring    authorities   with
sufficient powers such as inspection, search and seizure (9b
UNC). Specific powers are given to border authorities by
1 numbers in brackets refer to corresponding paragraphs in
   the UN Convention (UNO
 ---pagebreak---                            - 6-
paragraph 2, in order to allow suspect consignments to be
stopped before they leave or enter the Community territory.
f- Article 6 covering intra-Community cooperation between
monitoring authorities refers mutatis mutandis to Regulation
 (EEC)  1468/81   on  mutual   assistance   in  customs   and
agricultural matters, thus providing not only for a well-
established mechanism in administrative assistance but also
for due protection of confidentiality with regard to all
information obtained and circulated under this Regulation.
9- Art icie 7 (9c UNC) complements Article 6 on the
international level by ensuring that information on suspect
consignments be passed on to other parties to the UN
Convention concerned.
h. Final Clauses:
Article 8, although avoiding      interference with Member
States'   competence  in criminal    matters, ensures    that
infringements of this Regulation be subject, Community-wide
to appropriate penalties.
Article 9 (12 U N O serves to fulfill the annual reporting
obligations towards the UN, with the Commission acting as
Community co-ordinating body.
Article 10 provides for a Community forum to          examine
technical questions relating to the application       of the
Regulation.
Taking   into account the directive-type parts       of the
Regulation, Article 1 1 requires Member States to report the
implementing measures taken, whereas Article 12 for the same
reason provides for a split-up between entry into force and
entry into application.
 ---pagebreak---                                            7
                                        "      "
                          Proposal f o r a
                 Ç o UJIÇJLL-. Re.g.ula .t i o_n_ JJEJECJ,
l a y i n g down m e a s u r e s t o be taken to discourage the diversion of          certain
substances to the i l l i c i t         m a n u f a c t u r e of n a r c o t i c d r u g s and
                            psychotropic substances.
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European
Economic Community, and in particular Article 113 thereof.
Having regard to the proposal from the Commission (1)
Whereas on 19 December 1988, the United Nations Conference
adopted a Convention against Illicit Traffic in Narcotic
Drugs and Psychotropic Substances; whereas this Convention is
part of the world-wide efforts to combat drugs; whereas the
Community participated in the negotiation of this
Convention, showing its political will to act within the
limits of its competences;
1 OJ No C                        ,p.
 ---pagebreak---                             - 8 -
Uhereas the     aforementioned Convention contains an Article
12 concerning trade in precursors, ie substances frequently
used in the illicit manufacture of narcotic drugs and
psychotropic substances; whereas the implementation of this
Article represents a contribution by industrialized
countries to the effort requested from drug-producing
countries which are generally much poorer than the former; whereas the
provisions on the trade in such precursors affect the
Community rules in.customs matters; whereas, on this basis,
the Convention was signed on behalf of the Community on 8
June 1989; whereas it is thus appropriate, in order to
concretize this political will, to lay down Community rules
on the trade between the Community and third countries,
without prejudice to other provisions to be elaborated as
regards intra-Community trade;
Uhereas the provisions of Article 1 2 of the Convention are based on a system
monitoring trade in the substances in question; whereas most of
the trade in these substances is fully legitimate; whereas
documentation and possible labelling as regards consignments
of these substances have to be sufficiently clear; whereas
 it is furthermore important, whilst providing competent
authorities with the necessary means of action, to develop,
 in compliance with the spirit of the Convention, mechanisms
which are based on close cooperation with the economic
operators concerned as well as on the development of the
gathering, exchange and exploitation of intelligence;
 ---pagebreak---                                 - 9-
Uhereas, in this framework, measures have to be taken to
encourage the detection, by the various operators, of
suspect operations and their cooperation with the competent
authorities; whereas a system of pre-notification on
consignments of certain substances, providing for the
possibility of suspending or forbidding the operations in
question under certain conditions, appears most appropriate
to the situation; whereas several countries have already
obtained very positive results favouring this approach;
Uhereas   the   competent    authorities         af   Member
States should dispose of comparable means of action; whereas
it is thus indispensable to establish, at Community level,
common objectives in the matter; whereas this aspect is
essential in the perspective of the completed internal
market and in order to ensure the homogeneous application of
the rules established; whereas it is also important, in this
context, that each Member State provides for sufficiently
dissuasive penalties;
Uhereas it is important to provide, w'i t h i h      the Community as
well as with third countries which .are ..also .      Parties to the
Convention,      mechanisms     of      administrative
cooperation; whereas it is suitable in this respect, as far as
the competent authorities in the Community are concerned, to
seek inspiration from Council Regulation (EEC) No 1468/81   of 19 May
 1981 on mutual assistance between the administrative
authorities of the Member States and cooperation between the
 ---pagebreak---                                                  -   10    -
 latter      and t h e Commission t o e n s u r e t h e c o r r e c t               application
 of   t h e law on customs and a g r i c u l t u r a l                matters     (2), as amended
 by R e g u l a t i o n        (EEC) 9 4 5 / 8 7  ( 3 ) ; whereas particular attention has to be paid to
the c o n f i d e n t i a l i t y of the information received and exchanged;
 Uhereas        in order           t o examine p o s s i b l e    problems      concerning       the
 application             of      this  Regulation         and t o enhance        its
 i m p l e m e n t a t i o n and t h e d e v e l o p m e n t   of    administrative
 cooperation              i n the m a t t e r ,   it    is   appropriate  to provide       that
 t h e Commission o r g a n i z e s            specific       meetings;
 HAS ADOPTED T H I S               REGULATION:
 2 OJ     No   L    144,-          02.06.1981,       p.    1,
3 OJ No L            90,          02.04.1987,        p.3.
 ---pagebreak---                                - 11 -
                               TITLE I
                               General
                              Article 1
1 . This Regulation lays down measures to be taken in order
to monitor     trade  in precursors    between    the Community
and     third     countries   with   a   view   to   preventing   the
diversion of such substances for the illicit manufacture of
narcotic drugs and psychotropic substances.
2. For the purposes of this Regulation:
(a) "scheduled substances" means any substance con-
tained     in    the   Annex,      including
mixtures      containing    such    substances.      This    excludes
pharmaceutical       preparations,      or    other      preparations
containing scheduled substances that are compounded in such
a   way   that   such   substances   cannot    be   easily   used  or
recovered by readily applicable means;
cb) "import" means any physical         introduction    of  scheduled
substances into the customs territory of the Community;
 ---pagebreak---                                 - 12 -
(c)  "export"    means    any  physical     departure   of    scheduled
substances from the customs territory of the Community which
requires a customs export declaration)
(d) "transit" means any transport of scheduled               substances
between    . third       countries         through       the     customs
territory   of   the   Community    and   any  transhipment     in  this
territory;
(e) "operator" means any natural or legal person engaged in the
manufacture, production, trade or distribution of scheduled
substances   in the Community        or  involved   in other     related
activities   such    as  import,     export,   transit,   broking    and
processing     of    scheduled      substances.     This     definition
includes, in particular, customs agents,
(f) "UN   Convention"      means   the   United   Nations    Convention
against Illicit Traffic in Narcotic Drugs and Psychotropic
Substances, adopted in Vienna on 19 December 1988!
(g) "International Narcotics Control Board" means the Board
established by the Single Convention on Narcotic Drugs of
1961, as amended      by   the   1972   Protocol.
 ---pagebreak---                                - 13 -
                              TITLE II
                        Monitoring of trade
                             Article 2
              Documentation, records and labelling
The import, export and transit of scheduled substances are
subject to the following requirements:
1.   all  import,    export  and   transit  operations   shall  be
properly   documented.    In   particular,  commercial   documents
such as   invoices, cargo manifests, customs, transport and
other    shipping      documents    shall    contain    sufficient
information to positively identify the following:
- the name of the scheduled substance as stated in the Annex
- the quantity, weight, composition and content of the scheduled
   substance
- the name and address of the exporter and importer and, as far
   as is known to the manufacturer or distributor concerned,
   that of the consignee;
2. whenever operators apply       labels to scheduled   substances
in import, export or transit operations         such labels shall
mention the names of these substances as stated in          the
Annex;
 ---pagebreak---                                 - 14 -
3-  operators   involved    in   import,    export    and  transit   of
scheduled substances shall keep detailed commercial records
with regard to these activities^
4. the documents and records referred to in ;points            1  and
 3 shall be     kept      for a period not less than two
years    from   the  end   of   the   calendar    year   in which   the
operation referred to in         point   .1   took place, and shall
be made available to the competent authorities upon request.
                              Article 3
                            Notification
1. Each Member State      shall    take, consistently with its own
legal system, appropriate measures to encourage operators to
immediately    notify    the     competent     authorities     of   any
circumstances, such    as unusual      orders and transactions of
scheduled   substances, which      indicate    that   such  substances
destined   for  import   or    export   may    be  diverted   for   the
illicit   manufacture    of    narcotic     drugs    or   psychotropic
substances.
 ---pagebreak---                                   - 15 -
2. In addition to the measures to be taken under paragraph
1, each Member State        shall   take, consistently with its own
legal system, appropriate measures to encourage persons                      who
suspect, as a result       of information       obtained       by virtue of
their    professional    activities, that        scheduled       substances
which have been or are to be imported or exported                       may be
destined     for use in the illicit manufacture of a narcotic
drug    or   psychotropic    substance,     to    inform     the    competent
authorities accordingly.
3. The disclosure     in good    faith to the competent             authority
pursuant to paragraphs 1 and 2 above shall not constitute a
breach     of   any  restriction     on   disclosure        of    information
 imposed    by  contract   or by   any Law, regulation            or
administrative      provision,    and   shall     not     involve any
civil or penal liability of any kind for the persons con-
cerned. This provision does not apply, in particular, to cases
where    disclosure    is   made   to   avoid     prosecution        or    where
malice is intended.
                               Article 4
           Pre-export  notification     -  Substances listed in Table 1 of the Annex
1. In addition to the provisions of Article 3, persons who
take    the   initiative   in  any    intended     export      of   scheduled
substances listed in Table I of the    Annex shall ensure            that the
competent authorities of the Member State where the customs
export formalities are to be completed are duly notified of
 ---pagebreak---                                      -16 -
such   intention      not   later   than   15   days   before   any   customs
export declaration is lodged.
2. The notification referred to in paragraph 1 shall contain
the following      information:
- the name and address of the exporter, of the importer in the
   third country and any other operator              involved in the export
  operatio'n or shipment, and also those of the consignee as
   far as known to the operator          concerned,
- the name of the scheduled substance as stated in Table I of the Annex,
- the quantity, weight,      composition and content of the substance
   to be exported,
- details as to the shipment such as expected date of
   dispatch, transport        arrangements and, where known,
   itinerary, expected point of exit from the Community
   customs territory and point of eventual entry in the
    importing country.
3. Member States shall ensure that the competent                  authorities
referred       to    in    paragraph      1   may     by   written     order,
confirmation      of    receipt   of  which    must   be  duly   provided  by
the person concerned:
 (a) delay the shipment of scheduled substances listed in Table I of the Annex
until    they   are    satisfied    that   the   substances    are   destined
for   lawful purposes;
 ---pagebreak---                                        - 17 -
 (b) forbid       the shipment of scheduled            substances     listed in Table I of tl
  Annex, if there    are    reasonable     grounds      to   suspect     that    the
scheduled          substances       are     destined       for     the      illicit
manufacture of narcotic drugs or psychotropic                     substances.
Unless an order referred to in sub-paragraphs                     (a) and (b) is
made      by    the    competent     authority,       the   export      is    deemed
approved upon expiration of the                 period of 15 days.
 A.    Uith     regard     to   requests     for     pre-export      notification
 addressed        to    the   Community      by    a    third    country
 pursuant to Article 12 (10) of the UN Convention,
 (a)    the    Commission       shall   immediately       communicate       to   the
 competent authorities of the Member States any such                       request
received ;
 (b) the competent          authorities of the Member State              concerned
shall,      prior     to  any   export   of   scheduled     substances       to  the
requesting         country,     supply    the     information      specified      in
paragraph 2 to the competent authorities of this country. A
copy cf      this r <v I y Lîhsll he cof.iï.un i ca t ec       to   the   Commission
with -. view to .*.:.; circulation to the other Member States;
(c) the authority furnishing              such    information     shall    require
that    the    authority      in  the    third        country      receiving
this      information        ensures the confidentiality      of     any    trade,
business, commercial or professional secret or trade process
involved.
 ---pagebreak---                             - 18 -
                          TITLE III
                     Measures of control
                          Article 5
            Legal powers of competent authorities
1. In order to ensure the correct application of Articles 2
and 4, each Member State shall adopt,     consistently  with
its own legal system, the measures necessary    to allow the
competent authorities:
(a) to obtain information on any orders or transactions of
scheduled substances;
(b) to enter and search professional premises of operators
and to obtain evidence of irregularities;
(c) to seize any scheduled substance if there is sufficient
evidence that such substance, which has been or is to be
imported, exported or in transit, is intended to be used in
the illicit manufacture of a narcotic drug or psychotropic
substance.
 ---pagebreak---                               - 19 -
2. Uithout prejudice to the measures laid down in
Article 4(3)   and     Article     5(1),    the    customs
authorities or other competent       authorities of each Member
State may  prohibit the introduction of scheduled substances
into the Community customs territory or their departure from
the latter, if there are reasonable grounds to believe that
these substances are destined for the illicit manufacture of
narcotic drugs or psychotropic substances.
                             TITLE IV
                  Administrative cooperation
                            Art icle 6
For  the purposes   of applying     this Regulation     and   without
prejudice to Article 10, the provisions of Regulation (EEC)
No 1468/81 shall be applicable mutatis mutandis,
in particular the provisions on confidentiality. Each Member
State shall communicate to the other Member States and to
the Commission the competent authority appointed to act as
correspondent within the meaning of Article 2(2) of Regulation
(EEC) No 1468/81 .
 ---pagebreak---                               -20 -
                               Article 7,
The  competent    authorities     referred    to   in   Article   6   shall
notify    their     counterparts      in   third       countries
concerned by the operation in question and parties to the UN
Convention    if there   are reasonable      grounds     to suspect     that
the  import, export     or   transit   of  a scheduled      substance     is
destined   for  the   illicit   manufacture      of  narcotic    drugs    or
psychotropic    substances.     Notifications       shall    include     all
essential    information     which   has  led    to   that   belief.     The
provisions on confidentiality laid down in Article 4 (4) (c)
apply to such notifications mutatis mutandis.               A copy of this
notification shall be communicated to the Commission with a
view to its circulation to the other Member States.
                                 TITLE V
                           Final provisions
                               Art icle 8
Each   Member    State   shall    determine     the   penalties      to   be
applied   for   the   infringement     of   the    provisions     of    this
Regulation.    The   penalties    shall   be   sufficient     to   promote
 compliance with those      provisions.
 ---pagebreak---                                 - 21 -
                             Article 9
1. The    competent  authorities    of  each   Member  State   shall
annually communicate to the Commission:
- the amounts    of scheduled substances seized and, when
   known, their origin;
- any substance not . included       in    the
   Annex which is identified as having been used in illicit
   manufacture of narcotic drugs or psychotropic substances,
   and which is deemed to be sufficiently significant to be
   brought to the attention of the International Narcotics
   Control Board;
 - methods of diversion and illicit manufacture.
2. The Commission, on the basis of the communications
made pursuant to paragraph 1, shall, pursuant to Article 12(12) of
the UN Convention and      in consultation    with Member States,
draw   up    an   annual    report   to   be    submitted   to   the
International Narcotics Control Board.
                             Article 10
The     Commission    shall     organize    meetings     with    the
representatives of Member       States  in order to examine any
question concerning the application of this Regulation which
is raised by the Chairman, either on his own initiative or
or at the request of a Member State.
 ---pagebreak---                               - 22  -
                            Artie le 1J
Each  Member   State   shall    inform    the  Commission   of   the
measures it takes   pursuant     to   this   Regulation.
The  Commission  shall   communicate     this  information   to  the
other Member States.
                            Article 12
This Regulation shall enter into force on 1 January 1991. It
shall apply from   1   July   1991.
This Regulation shall be binding in its entirety and directly
applicable in all Member States.
Done at Brussels,                              For the Counc i I
 ---pagebreak---                             - 23 -
Annex
Table I                            Table II
Ephedrine                          Acetic anhydride
Ergometrine                        Acetone
Ergotamine                         Anthranilic acid
Lysergic acid                      Ethyl ether
i -phenyl-2-propanone              Phenylacetic acid
Pseudoephedrine                    Piperidine
The salts of the substances        The salts of the substances
listed in this table whenever      listed in this table whenever
the existence of such salts is     the existence of such salts is
possible.                          possible.
 ---pagebreak---                                                      ?<
                                         FINANCIAL RECORD
Draft proposal for a Council Regulation laying down measures
to discourage the diversion of certain substances to the
illicit manufacture                       of narcotic         drugs and              psychotropic
substances.
1 ._ Budgetary heading code: A 2 511
2. Legal bas is : A r t i c l e 113
3. D e s c r i p t i o n of p r o j e c t
3.1. General objectives
To comply with international obligations resulting                                               from
Article 12 of the 1988 UN Convention against Illicit Traffic
in Narcotic Drugs and Psychotropic Substances signed by the
Community on 8 June 1989.
3.2. S p e c i f i c       objectives
- To prevent, on a Community-wide basis, the diversion of
precursor substances to the illicit manufacture of narcotic
drugs        and        psychotropic               substances,       by        establishing         a
monitoring system on the import, export and transit of
precursors             and provide                for an exchange              of      information
between the competent authorities of Member States and
between the latter and the competent authorities of non-
Community countries.
- To fulfill periodic reporting requirements                                          towards     the
competent bodies of the United Nations
3_;J5._. F i n a n c i a l  i m p l i c a t i o n s of the p r o j e c t
The m a n a g e m e n t        of the m o n i t o r i n g       system          will have         the
financial c o n s e q u e n c e s set out u n d e r            item 5 b e l o w .
4 . J u s t i f i c a t i o n of..._th_e__px.ojje„ç_t
To d a t e , only informal p r e c u r s o r m o n i t o r i n g s c h e m e s exist in
certain M e m b e r S t a t e s w h i c h do n o t fulfill the s t a n d a r d
required by the UN C o n v e n t i o n . In o r d e r to fulfill t h e
Community o b l i g a t i o n s from the C o n v e n t i o n and at the same
time to avo id                  ~ b e r S t a t e s taking i n d i v i d u a l l e g i s l a t i v e
action         incompatible                jith     the    objectives          of     the     Single
M a r k e t , the C o m m u n i t y has             o   enact  l e g i s l a t i o n  on  e x t ernal
               r t rade.
 ---pagebreak---                                            25
5_. F.in ar. ç i a 1 imp_..li.ca .t.ion_s_..in r esp_ec_t _...oX._Lc^jerjvjejiticn.
       appropriations
5_...l.._ Basis for estimation
The envisaged Community system will result in expenses for
        the periodic organization of meetings with Member States
experts in order to continually monitor the correct working
of the system. The estimation shown below is based on an
initial hypothesis of 2 meetings per year with Member States
to be held in Brussels.
- the set-up, at Commission level, of a management structure
ensuring, in particular, liaison with Member States, third
countries and competent international organizations, in
particular, the UN. The structure would initially comprise
two officials (1 A, 1 B ) .
These resources are to be found either by means of internal
redeployment or in the framework of the budgetary procedure
for the year 1991.
5.2. Estimated appropriations to be provided for
Task                                                           Budgetary post
                                                                     A 251 1
Travel expenses for Member
States experts to Brussels:
2x 24 experts: 2x 10,000 ECU                                   20,000 ECU
Total                                                          20,000 ECU
 (from the budgetary year 1991 on)
6_._ Implications for .own resources
None
 ---pagebreak---  ---pagebreak---                                                                                 ISSN 0254-1475
                                                                 COM(90)215final
                                                      DOCUMENTS
EN                                                                                  05 01 06
                                   Catalogue number : CB-CO-.90-253-EN-C
                                                               ISBN 92-77-60898-6
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