Federal
Register Notices > Export
of Chemicals From the United States to Colombia; Policy Statement
[Federal Register: March 28, 1996 (Volume 61, Number 61)] [Rules and
Regulations] [Page 13759-13760] From the Federal Register Online via GPO
Access [wais.access.gpo.gov] [DOCID:fr28mr96-8]
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.
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
NOTICE: This is an
unofficial version. An official version of these publications may be obtained
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