Precursor Control • Precursors are chemicals which are essential for manufacture of narcotic drugs and phychotropic substances.
Historical Background • The following Conventions provide the basic framework for International Control on Precursor Chemicals • Single Convention of Narcotics Drugs, 1961; • Convention on Psychotropic Substances, 1971; • Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances, 1988 • In 1991 the Chemical Action Task Force (CATF), established by the Group of Seven (G7) Major Industrialized Nations recommended measures based on article 12 of the 1988 Convention to ensure that such substances are not diverted from legitimate sources.
Guidelines to Prevent Diversion • Guidelines for use by national authorities established at the initiative of the Chemical Action Task Force (CATF) • Guidelines assist national authorities in preventing diversion of substances frequently used in manufacture of narcotic drugs and/or psychotropic substances • Prescribed procedures need to be applied subject to their being consistent with national legal and administrative structures • Guidelines to be modified based on experience gained by Governments and concerned international agencies
Substances listed in Table I and II Uses and abuses • Total 23 substances - 14 in Table I and 9 in Table • Initially there were only 12 substances in Table I & II • Consequent to CATF recommendations 10 more substances were included to these tables as per decision of CND on 9th April’92 that became effective on 23 November’ 92 • Norephedrinehas been added to Table I in May, 2000 (became effective Since November 2000) making a total of 23 substances, under international control • These are not illicit substances by themselves and have a vide range of industrial application (e.g. pharmaceutical sector) • Only when diverted for producing illicit drugs and/or psychotropic substances, they become illicit
Precursor Control: 1988 UN Convention Salient features of Article 12 of the 1988 UN convention • Provides legal basis for international control on precursor and essential chemicals • Imposes general obligation on parties to cooperate with each other in order to prevent diversion • Requires parties to establish a system to monitor international trade in order to identify suspicious transactions and to seize offending controlled substances (unless a controlled delivery under article 11 is proposed) • Lays down the procedure for inclusion/ deletion/ transfer of a substance in Table I or Table II • Provides for Pre Export Notification Scheme
Other Relevant Provisions of 1988 Convention Article 3 requires Parties to criminalize: • Manufacture, transport or distribution of Table I & II substances, knowing that they are to be used in production of illicit drugs • The organization, management or financing of any of the offences enumerated above • The possession of these chemicals, knowing that they are being or are to be used in or for the illicit production of drugs • The participation in, association or conspiracy to commit, and aiding, abetting, facilitating and counseling the commission of any of the offences established in accordance with article 3 of the Convention
1988 United Nations Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances Article 3 :CRIMINAL OFFENCES AND SANCTIONS Article 9 : INTERNATIONAL COOPERATION AND TRAINING Article 11 : CONTROLLED DELIVERY Article 12:MEASURES TO REGULATE PRECURSORS Article 13 : MATERIALS AND EQUIPMENT Article 18:FREE TRADE ZONES AND FREE PORTS Article 24 : APPLICATION OF STRICTER MEASURES
ARTICLE 12: MEASURES TO REGULATE PRECURSORS • REQUIRE LICENCES AND PERMITS • MONITOR INTERNATIONAL TRADE • SEIZE CHEMICALS ON EVIDENCE OF DIVERSION • NOTIFY AUTHORITIES OF SUSPICIOUS ORDERS • PROPER LABELLING AND DOCUMENTATION OF SHIPMENTS • MAINTENANCE AND AVAILABILITY OF DOCUMENTS • NOTIFICATION OF IMPORTING COUNTRY AUTHORITY OF EXPORTS
Chemicals under International control TABLE – II Acetone Anthranilic Acid Ethyl Ether Hydrochloric Acid Methyl Ethyl Ketone Phenylacetic Acid Piperidine Sulfuric Acid Toluene TABLE – I • N-AcetylanthranilicAcid • Ephedrine • Ergometrine • Ergotamine • Isosafrole • Lysergic Acid • 3,4-Methylenedioxyphenyl-2-propanone • 1-Phenyl-2-Propanone • Piperonal • Pseudoephedrine • Safrole • Norephedrine - SINCE Nov 2000 • Acetic Anhydride* • Potassium Permanganate* *shifted from Table-II
1988 UN Convention Difference in Table-I & II • Table I mainly has precursors without which narcotics can not be produced and thus have tougher controls • Table-II has essential chemicals that with a minor change in the end product’s molecule are the most efficient in producing narcotics • Table I chemicals can not be exported without the importing country being warned about the pending export by a Pre Export Notification at the time of allowing export by issuing an NOC
ASSESSMENT OF LICIT NEEDS • BASED ON NATIONAL LIST OF IMPORTANT PRECURSORS COUNTRIES MUST ASSESS LICIT REQUIRE-MENTS TO ENSURE THAT SUPPLIES DO NOT EXCEED DEMAND
DEVELOP LEGAL INSTRUMENTS & ADMINISTRATIVE ORDERS • SYSTEMS MUST FACILITATE LICIT TRADE WHILE ENABLING PREVENTION OR DETECTION OF DIVERSIONS
PRECURSOR CHEMICALS • India’s highly developed chemical industry has been targeted as a source for Precursor Chemicals • Of the UN identified 23 precursor chemicals, India has placed controls over 12 such chemicals to prevent diversion • Acetic Anhydride, Ephedrine, Pseudo-ephedrine, N-Acetylanthranilic Acid and Anthranilic Acid are the Precursors notified as “Controlled Substances” under the NDPS Act.
Mechanics of chemicals’ movement International obligations – • Single Convention of Narcotic Drugs, 1961 • Convention of Psychotropic Substances, 1971 • 1988 UN Convention against Illicit Traffic in NDPS
India is Signatory to all the three UN Conventions • NDPS act 1985, has been suitably amended from time to time • Active participation in Operation Prism & Operation Cohesion (Operation Purple & Operation Topaz) • Use of PEN, Regime
REGULATION OF CONTROLLED SUBSTANCES ORDER, 1993. • INDIAN CUSTOMS ACT. • FOREIGN TRADE (DEVELOPMENT & REGULATION) • ACT, 1992. • 4. VOLUNTARY CODE OF CONDUCT. PRECURSOR CONTROL IN INDIA
Legislative Control • India made enabling provisions in law to control and regulate the precursor chemicals • Indian Government has declared 5 substances and their salts as ‘Controlled Substances’ under sec.2(vii-d) of Indian NDPS Act, viz. • N-acetylanthranilic Acid • Acetic Anhydride • Ephedrine • Pseudoephedrine • Anthranilic Acid
Legislative Control • Sec 9-A of NDPS Act 1985, provides for Control and Regulation of Controlled substances. • Empowers the Central Govt to regulate or prohibit the production, manufacture, supply, distribution, trade and commerce of Controlled substances . • Sec 25-A - Punishment for contravention of Order made under Sec 9-A is RI up to 10 yrs and fine up to 1 lac rupees
Narcotic Drugs or Psychotropic Substances (regulation of Controlled substance) Order 1993 • Made under Sec 9-A of NDPS Act, 1985 • Provides for maintenance of Daily Accounts in • FORM-I for Manufacture and FORM-II for Distribution/ Sale/ Import / Export . • Movement of Controlled substance from one place to another to be accompanied by Consignment Note (in triplicate) in FORM-III.
Narcotic Drugs or Psychotropic Substances (regulation of Controlled substance) Order 1993 • Quarterly returns to be filed to Narcotics Control Bureau by • Manufactures of controlled substance in FORM IV. • For Distribution , Sale , export, import and consumption in FORM V. • For transport of Controlled Substances to a Consignee outside the zone of a Consignor in FORM VI
NARCOTICS DRUGS AND PSYCHOTROPIC SUBSTANCES (REGULATION OF CONTROLLED SUBSTANCES) ORDER, 1993 • MAINTENANCE OF RECORDS BY MANUFACTURERS, DISTRIBUTORS, SELLERS, IMPORTERS, EXPORTERS AND CONSUMERS OF CONTROLLED SUBSTANCES FOR TWO YEARS. • COMPULSARY REPORTING OF LOSS OF CONTROLLED SUBSTANCE TO NARCOTICS CONTROL BUREAU
NARCOTICS DRUGS AND PSYCHOTROPIC SUBSTANCES (REGULATION OF CONTROLLED SUBSTANCES) ORDER, 1993 • SPECIAL PROVISION RELATING TO TRANSPORTATION OF CONTROLLED SUBSTANCES • SALE ONLY AFTER ESTABLISHMENT OF IDENTITY OF BUYER • SPECIFIC LABELLLING OF CONTROLLED SUBSTANCES
PENAL PROVISION • SECTION 25 A OF NDPS ACT, 1985 PROVIDES PUNISHMENT FOR CONTRAVENTION OF ORDER MADE UNDER SECTION 9 A. IT PROVIDES THAT IF ANY PERSON CONTRAVENES AN ORDER MADE UNDER SECTION 9 (A). HE SHALL BE LIABLE FOR RIGOROUS IMPRISONMENT, WHICH MAY EXTEND TO 10 YEARS, AND HE WILL ALSO BE LIABLE TO A FINE, WHICH MAY EXTEND TO ONE LAC RUPEES. THE COUT MAY IMPOSE A FINE EXCEEDING ONE LAC RUPEES AFTER RECORDING THE REASON FOR THAT IN THE JUDGEMENT.
CUSTOMS ACT, 1962 • THE CUSTOMS ACT SPECIFIES ALL PERSONS WHO OWN, POSSESS OR TRANSPORT ACETIC ANHYDRIDE WITIN AN AREA OF 100 KMS ALONG THE INDO MYANMAR BORDER AND 50 KMS WITIN THE INDO PAKISTAN BORDER TO MAINTAIN RECORDS AND NOTIFY THE CUSTOMS OFFICERS OF THE DETAILS OF QUANTITIES HELD AND TRANSPORTED. THE CHEMICAL IS ALSO SUBJECT TO INTENSIVE CHECKS IN THE SPECIFED AREAS.
AFGHANISTAN PAKISTAN NEPAL NEW DELHI BHUTAN BANGLADESH KOLKATA MYANMAR LAOS MUMBAI THAILAND CHENNAI SRI LANKA CONTROLS UNDER THE CUSTOMS ACT
FOREIGN TRADE (DEVELOPMENT AND REGULATION) ACT, 1992 • THE EXIM POLICY (EXPORT IMPORT POLICY) FRAMED UNDER THE FOREIGN TRADE (DEVELOPMENT AND REGULATION) ACT, 1992 IMPOSES RESTRICITION ON THE IMPORT AND EXPORT OF GOODS. EXPORT OF SEVEN PRECURSORS IS SUBJECTED TO A “NO OBJECTION CERTIFICATE” AND IMPORT OF THREE PRECURSORS IS RESTRICTED.
VOLUNTARY CODE OF CONDUCT (VCC) • VOLUNTARY INITIATVE OF THE MANUFACTURERS • VCC ESTABLISHES A COMMON SYSTEM TO BE FOLLOWED BY MANUFACTURERS, DEALERS AND DISTRIBUTORS TO PREVENT DIVERSION • SALE ONLY AFTER PROPER VERIFICATION OF BUYERS
VOLUNTARY CODE OF CONDUCT (VCC) • DESPATCHES ONLY AFTER CONFIRMATION OF PURCHASE ORDER • SPECIAL PACKING • TRANSPORTATION THROUGH RELIABLE AGENTS
Metal Seal fixed here Metal Seal (male part) Metal Seal (female part bearing Seal No.) Box covering Discharge valve VOLUNTARY CODE OF CONDUCT
Flat plate to prevent opening of manhole Sealing VOLUNTARY CODE OF CONDUCT
CBN Poppy growing areas NCB 4 Metros & few big cities Customs Land/Sea/Air Customs Stations BSF/ITBP Border Areas DRI Metros & big cities Police/Excise Each district & other small places Multi-agency enforcement Drug Enforcement in India
Control is exercised through - • Central Bureau of Narcotics • Competent Authority for import/ export; monitors the stock, sales & consumption of raw material of drugs and chemicals under import/ export control • Central Excise Commissionerate • Offices in every corner of the country • Has access to every factory regardless to what it is producing • Monitors the production and stock of each commodity • Narcotics Control Bureau • Apex Agency for coordination both national & international levels on drug related issues
Administrative Organization and Responsibilities Central Bureau of Narcotics - • Competent Authority for India to issue No Objection Certificate for export/ import. • It is responsible to control and regulate export/ import of precursor chemicals • Attends to all PENs/queries/enquiries/ issue of PENs
Attends all Pre-Export Notifications (PENs), queries, enquiries, and issues NOCs & PENs Issues NOCs – after investigation and within 14 days of receipt of application in most of the cases Import Export Controls Acetic Anhydride, Ephedrine,Pseudoephedrine, 1-Phenyl-2-Propanone, 3,4-Methylenedioxyphenyl-2-Propanone, Methyl Ethyl Ketoneand Potassium Permanganate, Anthranilic acid Acetic Anhydride , Ephedrine, Pseudoephidrine & salts , Ergotamine,Ergometrine, Methyl Ergometrine and Piperonal CBN’s DUTIES as the Competent Authority (CA) Precursor Control in India Central Bureau of Narcotics
Mechanics of chemicals’ movement Import/ Export Control • Substances that require NOCs from CBN • Export • Acetic Anhydride • Ephedrine • Pseudo Ephedrine • 1-Phenyl-2-Propanone • 3,4-Methylenedioxyphenyl-2-Propanone • Methyl Ethyl Ketone • Potassium Permanganate • Antranilic acid • Import • Acetic Anhydride • Ephedrine & salts • Pseudoephedrine & salts • Ergotamine • Ergometrine • Methyl Ergometrine • Piperonal -without this NOC Customs will NOT allow any Import or Export
CBN Gwalior Exporter Application to • Ensures that - • Application and documents are complete • Legal requirements of country are met • Exporter/Importer is genuine • Data given is accurate Positive Negative NOC in 6 copies is issued Reference to 1.INCB, 2.CA Legitimacy confirmed Investigations Controlled Delivery Illegitimate PEN HOW we control Export Control • Pre-defined process • Application in prescribed format with - background information • Submission of original import/export certificate is mandatory
HOWwe control • Involvement of intermediaries, their role and commission • Cost of goods (whether normal or abnormal) • Terms & mode of payment & Payer’s details • Many Transshipment country(ies) • Unusual packing & labeling instructions • In case of import Input/ output ratio if to be used for manufacture • If order is placed by one country for supply to an another & • payment comes from a country other than the importing one Import/ Export CBN also investigates Even after transactions are completed we monitor some cases
DOCUMENTATION Spare Copy to transshipment country Original to importer/ exporter 6th Copy remains with CBN as Office Copy 2nd & 3rd Copy to Customs 3rd copy to be returned to CBN after import/ export 5th Copy to INCB, Vienna 4th Copy to CA of importing/ exporting country Import/ Export Control NOC for Import/ Export
Mechanics of chemicals’ movement Control over Every sale, transport & Use as raw material is controlled by the NCB with the help of 6 forms • N-acetylanthranilic Acid • Acetic Anhydride • Ephedrine • Pseudoephedrine • Anthanilic Acid Precursor Control In India Domestic production of Controlled Substances Narcotics Control Bureau
Methods of Diversion Domestic Trade • Theft • False cases of Leakage • Reporting of over-consumption • Suppression of production
Methods of Diversion From International Trade • Forged NOCs • NOCs issued by other than CAs • Manipulation of Qty., validity, etc. in NOC • Declaration of different value than actual • Involvement of many intermediaries • Misdeclaration/ mislabeling of consignments • Order against non-existing firms • Removal of goods enroute during/ after loading • Concealment/ change in the mode of transportation & route
INVESTIGATION Suspicious Transactions CBN is helped: inDOMESTICinvestigations by: • Customs • Central Excise • Directorate of Anti-Evasion • In INTERNATIONAL investigations by • INCB • WCO • Interpol & • The CA of the concerned country – We have had several successful Controlled Deliveries too
PRODUCTION FIGURES 2006 IN TONS