[Federal Register Volume 61, Number 61 (Thursday, March 28, 1996)]
[Rules and Regulations]
[Pages 13759-13760]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-7546]
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DEPARTMENT OF JUSTICE
21 CFR 1313
[DEA Number 145N]
Export of Chemicals From the United States to Colombia; Policy
Statement
AGENCY: Drug Enforcement Administration (DEA), Justice.
ACTION: Policy statement.
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SUMMARY: Notice is hereby given that regular customer status for
Colombian customers is being revoked under Section 1018(c)(1) of the
Controlled Substance Import Export Act (CSIE) (21 U.S.C. 971(c)(1)).
Each U.S. exporter is being informed by letter that they must notify
DEA at least 15 days in advance of shipment of certain chemicals listed
in 21 CFR 1310.04, if the shipment is from the United States with an
ultimate destination of Colombia. Moreover, in view of the danger that
chemical shipments may be diverted into the illicit manufacture of
cocaine, a heightened review process will be instituted for such
exports and for transhipments. The exception under Title 21, Code of
Federal Regulations (21 CFR), Section 1313.24, allowing exporters to
notify DEA as late as the day of shipment for transactions between a
``regulated person'' and a ``regular customer'' will not apply to
shipments of certain chemicals to Colombia until further notice.
EFFECTIVE DATE: March 28, 1996.
FOR FURTHER INFORMATION CONTACT:
William Wolf, Chief, Chemical Operations Section, Office of Diversion
Control, Drug Enforcement Administration, Washington, D.C. 20537,
Telephone (202) 307-7204.
SUPPLEMENTARY INFORMATION: The following is a statement of policy by
the Drug Enforcement Administration (DEA) under the Controlled
Substances Act, as amended by the Chemical Diversion and Trafficking
Act of 1988 (CDTA), regarding exports of certain listed chemicals from
the United States to Colombia.
On March 1, 1996, the President of the United States, under the
Annual Certification Procedures Act (22 U.S.C. Section 2291j), moved to
decertify Colombia's status as a nation actively cooperating with the
United States to stem the clandestine manufacture and trafficking of
illegal drugs. This action was taken in response to overwhelming
evidence of rampant drug-related corruption at the highest levels of
the Colombian government. In direct contravention of efforts by
Colombian law enforcement officials and the judicial sector to root out
drug-related corruption, elements of the Colombian government have
systematically undermined and publicly attacked these efforts while
failing to support the efforts of Colombian law enforcement to
strengthen the nation's institutions to combat the destructive effects
of narcotics traffickers.
These problems have also adversely affected the ability of the
Colombian Government to insure that listed chemicals imported from the
U.S. and other sources are not diverted into the illicit manufacture of
cocaine.
At a time when the Colombian government's commitment to combating
narcotic trafficking has deteriorated, as evidenced by shifting the
import permit approvals outside the existing infrastructure for
chemical control, DEA data reveals a 57% increase between 1990 and 1995
in the sales to Colombia of List II solvents that are used in the
clandestine manufacture of cocaine. These sales by U.S. chemical firms,
which were based primarily upon Colombian authorization, are estimated
by the Colombian Director of Customs to comprise 59% of the listed
chemicals now imported into Colombia and, unfortunately, coincide with
continued large scale illicit cocaine production within Colombia. DEA
has concluded, therefore, that all shipments to Colombia of certain
chemicals may be diverted to the clandestine manufacture of a
controlled substance.
The CDTA, the Domestic Chemical Diversion Control Act (DCDCA) and
the implementing regulations have established a system of recordkeeping
and reporting requirements that provide DEA with a mechanism to track
domestic and international movement of listed chemicals in order to
prevent their being diverted for use in the clandestine manufacture of
controlled substances.
Section 1018(a) of the CSIE (21 U.S.C. 971(a)), as amended by the
CDTA, provides that ``each regulated person who imports or exports a
listed chemical shall notify the Attorney General of the importation or
exportation not later than 15 days before the transaction is to take
place.'' In accordance with Section 1018(b) (21 U.S.C. 971(b)), this
requirement is modified by 21 CFR 1313.24 where the transaction is
between a ``regulated person'' and a ``regular customer.'' Under normal
circumstances, exporters are allowed to ship listed chemicals to
regular customers with notification as late as the day of shipment.
A person located in the United States who is a broker or trader for
an international transaction of a listed chemical is subject to all of
the notification, reporting, recordkeeping, and other requirements
placed upon exporters of listed chemicals. No waiver of the 15-day
advance notice is permitted under Section 1313.31 for importations and
exportations for transhipment purposes of threshold quantities of
listed chemicals.
Regardless of whether the shipment is a direct export or a
transhipment, DEA has the obligation to examine the notification in
order to determine if the shipment is legitimate and that the chemical
will not be diverted to the illicit manufacture of controlled
substances. Due to the distribution network within Colombian, where
large quantities of the chemicals used in the clandestine manufacture
of illegal controlled substances are redistributed by the importing
customer, bestowing ``regular customer'' status on the importer is
ineffective in assuring legitimate usage.
As underscored by the President's action to decertify Colombia as a
cooperating nation due to widespread corruption, DEA is unable to
determine the legitimacy of shipments of the specified chemicals or to
rely on import permits and other documentation issued by the Colombian
Government that the above chemicals are not being diverted for use in
the clandestine manufacture of controlled substances. Although the
Colombian National Police have been diligent and constructive in their
efforts to monitor the legitimacy of chemicals imported into Colombia,
its efforts have been handicapped by inadequate political and resource
support. DEA has no confidence that those customers previously
submitted as regular customers, nor those who would become regular
customers in the future, as specified in 21 CFR 1313.24, are not
diverting the above chemicals to the illicit drug traffic. Therefore,
in the absence of a way to determine with any reasonable degree of
certainty that chemical shipments will not be diverted, pursuant to
Section 1018(c)(1) of the CSIE (21 U.S.C. 971(c)(1)), DEA will act to
disqualify regular customer status for Colombian importers of MEK,
MIBK, acetone, toluene, potassium permanganate, and ethyl ether.
Accordingly, each U.S. exporter is being informed by letter that for
all shipments of these chemicals to Colombia, the exporter must now
file a Chemical
[[Page 13760]]
Export Declaration (DEA Form 486) at least 15 days in advance of the
shipment date in accordance with 21 CFR 1313.21 for every shipment of a
threshold amount of the above listed chemicals to Colombia. All
subsequent shipments of any of the identified chemicals to the same
customer will continue to require 15 day advance notice and evidence of
a documented legitimate need.
Furthermore, because DEA has concluded that all shipments to
Colombia of the above chemicals may be diverted to the clandestine
manufacture of a controlled substance, pursuant to 21 CFR 1313.41, it
is DEA's intent to suspend such exports and imports for transhipment in
the absence of documented proof of ultimate legitimate use. Shipments
of these chemicals will be closely monitored by DEA to determine
whether the exporters have presented sufficiently detailed
documentation for DEA to conclude that the ultimate users have the
specific, legitimate need for the type and quantity of the chemical
being purchased and, that the chemical will not be used for the
clandestine production of controlled substances. Export declarations
and Notices of Importation for Transhipment for the specified chemicals
will be reviewed utilizing the following criteria:
A. Whether the U.S. exporter, broker, or foreign exporter for
transhipment has shown that the end use for all of the chemical will be
for a legitimate purpose;
B. If the importer is not the end user, whether all users or
distributors through to the end users are identified to DEA with
sufficient documentation to confirm the legitimacy of their chemical
needs; and
C. Whether the quantity and type of chemical is consistent with the
nature and size of each end user's business.
A person who knowingly or intentionally exports a listed chemical
in violation of section 1018 shall be fined in accordance with Title
18, imprisoned not more than 10 years, or both (21 U.S.C. 960(d) (5)
and (6)).
U.S. and foreign exporters, and brokers are cautioned to view every
order of these or substitute chemicals from Colombia and other
countries in the region with extreme caution. In view of the existing
evidence that all shipments to Colombia of the above chemicals may be
diverted to the clandestine manufacture of a controlled substance,
firms should recognize that export declarations and Notices of
Importation for Transhipment will be subjected to the heightened
standard of review set forth herein with respect to the identity of the
end users and the documented legitimacy of usage. Failure to meet this
standard will result in the suspension of the shipment pursuant to 21
CFR 1313.41.
Dated: March 22, 1996.
Stephen H. Greene,
Deputy Administrator, Drug Enforcement Administration.
[FR Doc. 96-7546 Filed 3-27-96; 8:45 am]
BILLING CODE 4410-09-M
