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Charles B. DeWitt, Director January 1993

Controlling Chemicals Used To Make nl~g~1 \-i ~~, Drugs: The Chemical Action Task Force and the Domestic Chemical Action Groupmqw 118 {9n

The criminal justice system has become money laundering operations, breaking up essential chemicals~manufactured in the extremely sophisticated in its efforts to drug distribution networks, and destroying United States. This Research ill Brief dis­ prevent and control drug trafficking. The crops. cusses what has been done to radically method most visible to the public, and most curtail the diversion of chemicals for illicit often covered by the news media, is the Another part of this many-faceted attack drug production within our own borders. It seizure of illicit drugs such as cocaine and on drug trafficking is the control of precur­ also highlights U.S. involvement in inter­ sor and essential chemicals, which are heroin. The Office of National Drug Con­ national efforts to strengthen controls on necessary to produce cocaine and heroin, trol Policy (ONDCP) reported that in ~990 the illicit diversion of precursor and essen­ as well as LSD, PCP, and methamphet­ alone, 215,000 pounds of cocaine-with a tial chemicals. reet value of $3 billion-were seized by amine. In fact, during the last 2 years, the Group of Seven Industrialized Nations (the • e Drug Enforcement Administration (DEA), the U.S. Customs Service, the U.S. G-7), in cooperation with other countries The role of chemicals in where precursor and essential chemicals' Coast Guard, and the U,S, Border PatroL I illegal drug production are produced, imported, or consumed, has The seizure of illicit drugs, however, is launched a concerted effort to COQtrol these What are precursor and essential chemi­ only one aspect of our national drug control chemicals. cals? All major illicit drugs except mari­ strategy. Illicit drugs are the basis of an juana are either extracted or synthesized in illegal, deadly, and worldwide "industry." The United States is among the world's a process requiring chemicals. Some drugs Law enforcement agencies around the leading producers of precursor and essen­ are extracted from plants. Cocaine, for world are attacking this industry not only tial chemicals. And most Americans don't example, is extracted from the coca leaf. by interdiction of the drugs themselves, but realize that until 1989 much of the cocaine Since cocaine already exists in the leaves also through such methods as disrupting entering our country was produced using of the coca plant, no precursors are

From the Director limiting the illicit international diversion of fronting police and prosecutors across the so-c::l!led precursor chemicals. Just as money Nation: the control and disposition of Chemicals diverted from legitimate com­ laundering can be traced through financial clandestine drug laboratories, which are merce are used in the production oflllicit records, so can illicit drug production be traced inexpensive to establish, easy to conceal, drugs such as cocaine, heroin, methamphet­ through the records of manufacturers and and highly profitable. amine, PCP, and LSD. In fact, most of the dealers of raw materials used in drug produc­ Much of the information in this Briefwas cocaine smuggled into the United States is tion. The act has helped extend the awareness first gathered by the international Chemical processed with chemicals exported by of law enforcement agencies about the role of Action Task Force and the Domestic American and Western European compa­ essential and precursor chemicals in the illicit Chemical Action Group. The National nies, and nearly all methamphetamine, drug trade. LSD, and PCP are illegally manufactured Institute of Justice is pleased to have sup­ using chemicals from domestic and foreign This Research in Brief discusses what has been ported the activities of these groups, as suppliers. Controlling the illegal diversion done to curtail the diversion of chemicals for well as to have distributed information on and use of such chemicals is essential to illicit drug production within the United States their proceedings to the law enforcement limiting the production of illicit drugs. and outlines American involvement in community. The Chemical Diversion and Trafficking strengthening international controls on the Charles B. DeWitt diw!rsion of precursor and essential chemicals. Act of 1988 has already proven effective in This Briefalso discusses a new problem con- Director National Institute of Justice involved in its production. Chemicals used potent strategy that, along with interdic­ up to disguise illicit drug trade. However, • in the cocaine extraction process do not tion, intelligence, and financial investiga­ it should be noted thatthe majority of become part of the cocaine molecule, but tion, can help identify drug criminals and chemical manufacturers and dealers refuse because they are crucial to its manufacture, intertere with their operations, to participate in these illegal and substand- they are categorized as essential chemicals. &rJ industry- practices. International diversion of essential Other drugs, like LSD and PCP, are sub­ chemicals. ONDCP has estimated that the The vast intemutional network of freight stances that do not occur in nature and, world supply of cocaine in 1990 was 1,000 forwarders, brokers, and agents can afford therefore, are synthesized in a clandestine metric tons, or about 2.2 million pounds. criminals access to these chemicals laboratory from precursor chemicals, To produce this amount of cocaine, mil­ through multiple sales transactions, similar which do become part of the drug's lions of pounds of essential chemicals were to money laundering operations. Multiple molecular structure. required for processing. Yet, it is not easy changes in ownership of the product as it to identify essential chemicals that are goes from port to port also can be decep­ Synthetic drugs such as amphetamines and bound for illicit uses. Many essential tive and confusing for customs officials, many hallucinogens can be produced in chemicals such as hydrochloric acid, ether, thus permitting diversion for illicit use. Of large or small laboratories. Cocaine, on the and acetone also have hundre1is of legiti­ course, overseas shipments also are subject other hand, is present in the leaves of the mate uses. They are produced in the to theft because of the lack of physical coca plant in very small concentrations. United States bj the thousands of tons, and control. Therefore, large amounts of leaves and many thousands of businesses use them solvents are required for the extraction daily. In ports and free trade zones, criminals can process. The coca leaves are wet with obtain essential and precursor chemicals water, and a base such as lime is added. Since most essentb: chemicals have a through such subterfuges as repacking or Kerosene or some other organic solvent is wide variety of uses, they are common relabeling of materials. then used to extract the cocaine from the substances in international trade. Thou­ macerated coca leaves. A dilute aqueous sands of tons are shipped annually to Finally, drug producers can conserve their solution of an acid such as sulfuric acid foreign ports for industrial purposes. stocks of essential chemicals by recycling separates the cocaine from the kerosene; Ironically, while cocaine destined for the them or recovering them from the disposal ammonia water precipitates the cocaine, United States often has come from Latin processes of legitimate sources. which is dried as coca paste. The coca America, prior to 1988, many of the essen­ As controls over the manufacturing Clnd • paste is purified with an oxidizing agent tial chemicals used in its production were distribution processes improve worldwide, such as potassium permanganate and addi­ manufactured here at home. the illicit drug manufacturers stilI may tional processing. An acid such as hydro­ In 1988, the United States exported some have several options by which to continue chloric acid produces the final product, drug production. The chemicals used in cocaine hydrochloride. 90,000 metric tons of essential chemicals to Latin America. Over 80 percent of the drug production can be substituted with Synthetic drugs such as methamphetamine methyl ethyl ketone, 90 percent of the other, nonlisted materials that have similar are made by chemical processes involving acetone, and 70 percent of the potassium chemical properties. Also, criminals C'in precursor as well as essential chemicals. pennanganate imported into Latin America buy the chemical raw materials and make Precursors to methamphetamine include that year originated in the United States.2 the precursor and essential substances themselves. Front companies may make such substances as phenyl-2~propanone However, the Chemical Diversion and (P2P) or ephedrine. In the synthesis, the Trafficking Act of 1988, described below, and sen these chemicals legally, while precursor is incorporated as part of the has greatly decreased U.S. exports of these "backroom operations" concoct the illegal methamphetamine molecule. Essential substances to Latin America. substances. "Smurfing"-buying quanti- chemicals such as solvents and compounds ties of each substance just under the level are used to adjust the reaction conditions. Essential chemicals reach the drug produc­ at which reporting is required-is also how ers in a variety of ways. (Exhibit 1 illus­ criminals commonly obtain materials. trates how these chemicals can be diverted However, these options greatly add to the The chemical diversion to illegal use.) Criminals may obtain these criminals' costs, and proper regulation and operation substances from manufacturers through recordkeeping requirements make it in­ theft, bribery of employees, or even legal creasingly likely that even these diversion Why should State and local law enforce­ purchase, especially in areas that lack methods will result in detection of illicit ment officials concern themselves about chemical control laws or do not enforce operations. essential and precursor chemicals? If they such laws. Tracing the diversion of these could be kept out of the hands of illicit substances is difficult because of poor Domestic clandestine labs and precursor drug manufacturers, these chemicals could production and shipping records and poor chemicals. Although the processing of the not be used to produce such drugs. If law identification of customers. Of course, coca leaf to make cocaine, for example, enforcement agencies can follow the trail pOOl' plant security can always result in requires a large-scale operation, many of precursor and essential chemicals from theft. Retailers and wholesalers of the synthetic drugs such as methamPhetamine. the chemical manufacturer to the illicit chemicals can make direct cash sales to and PCP can be produced in someone's user, the illicit drug producers could be drug manufacturers; sometimes the retail­ home (although venting of fumes is a identified and apprehended. Thus, the ers themselves are "front companies" set problem) with readily available laboratory control of precursors and essentials is a equipment. In fact, a criminal using

2 • Exhibit 1. Diversion of Precursor Chemicals -

MANUFACTURER • Inaccurate production records • Ineffective customer identification

I

KEY 2 WHOLESALER w .. FREIGHT ==r:> • Front companies FORWARDER/ • Front companies Transportation Whenever chemicals • Acquisition through • Acquisition through are moved, there is an AGENT/BROKER/ intermediaries intermediaries opportunity for diversion by: .....Paper SPOT MARKET Transaction • Theft • Multiple transactions • Substitution • "Floating exports" International!- • Circuitous routes (changes in ownerShip Export • Use of warehouses after shipment) • No physical control National!= Domestic

4 POINT OF EXPORT • Substitution of listed by • Documents: non listed sUbstances -None • Substitution by non­ - Falsified listed forms of listed - Obtained by fraud/ substances bribery/smuggling • Mixtures/extraction • "Smurfing"-multiple transactions under • • Substitution controlled threshold • Repackaging • Front companies • Relabeling • No physical checks • Documents: -None -Falsified - Obtained by fraud/ briberyfsmuggling • Diversion of • Recycling of vital • Front compa.lies substances meant substances and • Smuggling for disposal solvents

we ..

equipment and precursor chemicals worth seizures decreased by 35 percent to 521 in study in Califomia,5 one-tenth of seized $200 can in 18 hours produce a batch of 1990 and by 28 percent in 1991 to 375. labs have been booby trapped with explo­ metl1amphetamine with a street value of The greater difficulty criminals had in sives, or worse, with disfiguring and poi­ $98,000.3 obtaining precursor chemicals Vias clearly sonous chemical devices. Also, the a major factor in the decline in seizures. corrosive nature of many precursor and The problem of clandestine labs increased essential chemicals can cause lung and eye at an alarming rate throughout the 1980's. These seizures pose special problems for damage, even upon exposure to vapors It peaked in 1989 with the implementation law enforcement officers. Many of the emanating from the lab. of the Chemical Diversion and Trafficking chemicals used in drug manufacturing are Act, which dramatically reversed this dangerous. Acids and solvents are corro­ At present, much clandestine lab activity • trend. While police seized 226 clandestine sive and flammable; some are highly ex­ is occurring in the west coast States of labs in 1983, by 1989 this number had plosive. About one-fifth of clandestine lab California, Oregon, and Washington. increased to 807--or well over 2 per day.4 seizures result from reports of fires caused However. as law enforcement officials in However, the number of clandestine lab by the chemical processes. According to a these States have increased their efforts

3 against clandestine labs. the phenomenon • To keep retrievable records of the distri­ has spread across the country. Texas also bution, receipt, sale, importation, or expor­ Multinational task Force had a major clandestine lab problem, but tation of any of the chemicals or machines .Formed To Halt Diversion increased enforcement resulted in the relo­ on the list (there are threshold limits for • of Chemicals cation of these labs to neighboring States each chemical, below which records need like Oklahoma, Louisiana, and Arkansas.6 not be kept). The international Chemical Action However, Oklahoma recently has reported Task Force (CATF) was formed to .. a dramatic decline in clandestine lab activ­ • To report certain unusual or suspicious prevent the diversion:of chemicals ity, attributable to enforcement of a strict orders for these substances to the DEA. from legitimirte commerce to the manUfacture of illicit drugs; CATF State chemical control law. • To obtain proof of identity for custom­ members~incJuded the Group of ers, whether individuals or companies. The problem is not just one for urban juris­ Seven Industrialized Nations, known dictions. In fact, illegal drug manufacturers The Chemical Diversion and Trafficking asthe G~7 (Canada. Francej I~,y; often set up labs in rural areas where strong Act gives the DEA authority to stop the Gennany, Japan, the United Kirig~· fumes, suspicious bottles, and drums of import or export of precursor and essential dOni, United States,and the European chemicals are less likely to be detected. chemicals if their use cannot be shown to Community), as well as Argerltina,,) Highway patrols often get involved in lab have legitimate medical, scientific, or com­ Australia, Belgium, Bolivia,. Brazil, seizures because some criminals keep the mercial purposes. As the lead Federal Chile; Colombia, Ecuador, Hungary, labs in trucks or mobile homes which can agency for combating the manufacture and • India, the Netherlands, Pakistan, Peru, be moved frequently to escape detection. distribution of illegal drugs, the DEA also Spain, Switzerland, and Thailand~ The . The diversion of precursor chemicals for is responsible for preventing the diversion Organization of American States and use in clandestine labs is similar to the of licitly produced drugs and chemicals. the International Narcotics. Conti"ol diversion of essential chemicals described All imports or exports of precursors and Board aIsopart1cipated. essentials over the threshold limit must be earlier. As with essential chemicals, many The G-7 was first formed during the reported to the DEA through an Import/ precursors have legitimate applications Ford administration so that. the major Export Declaration (DBA Form 486), and in medicine, manufacturing, and other industrial powers could discuss joint shipments of all listed chemicals through industries. policy. approacbes toward critioal '" the United States must be reported to the world economic problems, Anti-diversion legislation DEA at least 15 days before the shipment. The DEA has 19 regional offices across The principal U.S. statute to control the the country with which manufacturers and diversion of precursor and essential chemi­ distributors of listed chemicals must file • cals is the Chemical Diversion and Traf­ reports under certain defined circum­ In addition to Federal legislation, 18 States ficking Act, Subtitle A of the Anti-Drug stances. The DEA also has the power to have enacted their own laws on the control Abuse Amendments of 1988 (Title VI, suspend shipments of chemicals when the of these substances. There are, of course, Public Law 100-670), which amended the agency has evidence that the shipment may some variations among those State laws in Controlled Substances Act and the Con­ be diverted for illicit purposes. terms of the chemicals controiled and the trolled Substances Import and Export Act method of regulation and recordkeeping. A total of 24 precursor and 7 essential (21 U.S.C. 802 et seq.) The Chemical Di­ To foster uniformity among States, the version and Trafficking Act established chemicals are now on the list. Failure to National Institute of Justice, in coordina­ comply with the more technical require­ recordkeeping requirements and enforce­ tion with the DEA and the U.S. Depart­ ment activities for precursor and essential ments of the law can result in up to I year ment of Justice',: Criminal Division, in prison and a civil penalty of up to chemicals. It originally listed 12 precursor launched an initiative with the American chemicals and 8 essential chemicals that $25,000 per violation. For distributing one Prosecutors Research Institute (an affiliate must be controlled to prevent their use in of these substances knowing that it will be of the National District Attorneys Associa­ illegal drug production; machines for used for illicit purposes, the penalty is up tion) to draft a model State statute for tableting or encapsulating drugs are also to 10 years in prison and a fine of up to the control of precursor and essential $250,000 for individuals; up to $500,000 controlled. State and Federal laws make the chemicals. for corporations. [See 21 U.S.C. 841(d) unauthorized trade in these substances (2); 18 U.S.c. 3571.] equivalent to trafficking in the actual illegal The Chemical Action Task Force drugs. In November 1990, 12 new chemi­ These regulations already have been suc­ Of course, the decrease in exports of these cals were added to the list, and 1 was de­ cessful in controlling the export of essen­ chemicals from the United States would be leted. (Additional amendments to the tial chemicals to Latin American cocaine meaningless if other chemical-producing Federal Chemical Diversion and Traffick­ factories. In 1988, 55 percent of the im­ nations did not cooperate. Unfortunately, ing Act were proposed, but were not passed ports of essential chemicals to Colombia the effectiveness of the U.S. Chemical by Congress.) originated in the United States. In 1989, Diversion and Trafficking Act has been .. The Federal anti-diversion act has three this amount had decreased to 33 percent of limited because other chemical-producing _ imports. Overall, the export of essential basic requirements for all manufacturers countries began to take up the slack in and distributors: chemicals to Latin America from the supplying South American countries with United States dropped from 133 metric tons in 1984 to 40 metric tons in 1989. 4 ssential chemicals. The United Nations addressed this important problem in Ar­ ticle 12 of the U.N. Convention Against Domestic Chemical Action States represented by praciitioners • GrQup Members Illicit Traffic in Narcotic Drugs and Psy­ Washington chotropic Substances, signed in Vienna in The National fnstitute of Justice con~ CaIifol11ia 1988 by more than 80 nations. This con­ vened a Domestic Chemical Action Pennsylvania vention initially applied only to the 12 Group (DCAG) to aSsess U.S. law Texas chemicals, but the United Nations Com­ enforcement effortS to prevent illicit Colorado mission on Narcotic Drugs recently recom­ use of chemicals and accurately por­ mended to the U.N. Secretary General that traY those: efforts to the Chemical Components ofthe U.S. Depart­ 10 chemicals be added. This addition is Action Task Force. The DCAG in­ ment of .Justice expected to be effective in the autumn of cluded leading experts .on issues rJ­ Fedeml Bureau of Investigation 1992. The convention imposed some re­ Iated to the diversion of chemicals and Drug Enforcement Administration quirements on countries to regulate the clandestine drug labs. Members Criminal Division intemational commerce in chemicals. The included: Offjct:: Cif Justice Pr.ograms, United Nations also identified some regu­ Associatio~ representatives including tIle National Institute of latory measures that countries could take to Justice ' . control diversion within their borders. National Fraternal qrder of Police Although the 1988 U.N. convention was a National Criminal Justice Attol11t::Y General Ken Eikenberry of . first step toward the control of these , Association Washington State,and Michael Scott, chemicals in international trade, countries fntel11ational Association of Commander of the Narcotics Service must do more to control diversion. Recog­ Chiefs .of P.olice of the Texas Departlnent'bfPublic nizing this, the G-7, at its economic sum­ National Association of Attorneys Safety, were named spoke$persons for. mit meeting in Houston in July 1990, General the groupand~oined theU.S.delega­ called for the establishment of a multi­ , V.S. Conference ofMayors tion atthe 1990 and 1991 Chemical national Chemical Action Task Force Chemical Manufacturers Action Task Force meetings, (CATF). At the Houston meeting, Presi- Association ent George 3ush and the prime ministers National District Attomeys • nd other government officials from the Association G-7 members recognized the importance of curbing the illegal diversion and use of precursor and essential chemicals. The G- tice invited approximately 30 experts in the white-collar crimes and money laundering 7 participants directed that the CATF make area of chemical diversion from all over because investigation often entails finding recommendations to prevent the diversion the country to form a Domestic Chemical and following complex trails of paper of these substances from legitimate com­ Action Group (DCAG). records. merce to the manufacture of illicit drugs. The DCAG met in late October 1990 to Police are in particular need of training The U.S. Government organized the CATF discuss the status .of regulaticn of these because of the dangers involved in search­ in 1990, and the U.S. Department of jus~ chemicals and to develop inf.ormation for ing for and seizing clandestine labs. The tice chaired the task force, which met six use in the CATF. These experts discussed danger of explosions, as well as of burns times in Washington, D.C., between Octo­ existing national controls on the diversion and lung damage from caustic chemicals, ber 1990 and May 1992. During its first of precursor and essential chemicals. In requires special training in handling these year, the chairman of the international comparison with other countries, the substances. Officers also must be made group was William P. Barr, then the United States is very sophisticated in these more aware of ways to prevent the illegal Deputy Attomey General, and currently efforts. Nevertheless, many problems movement of these substances on high­ the Attorney General of the United States; remain, and the DCAG identified a num­ ways and by other means of transportation. Deputy Attorney General George J. ber of issues and made suggestions for In places where precursor and essential Terwilliger III assumed the chairmanship addressing some of them. These include: chemicals are manufactured, sold, rrans­ in the spring of 1992. ported, or taken across international Training. Every component .of the law boundaries, law enforcement ofticers also enforcement system requires training and should be aware .of the laws and regula­ The Domestic Chemical inf.ormation on diversion. Judges and pros­ tions aimed at preventing diversion .of Action Group ecutors may not recognize the seriollsness these substances to illegal use. The Department of Justice sought to of the charges of diverting these substances su,e that its delegates to the CA TF and may treat them more lightly than stan­ The DCAG stressed that training mllst . mained informed about the views and dard drug possessi.on or distribution cases. reach all areHS of the law enforcement • oncerns of State and local officials on this Also, prosecut.ors and police sometimes system since rural police agencies are just issue so they could accurately portray the are not fully aware of appropriate methods as likely to encounter clandestine labs as status of U.S. law enforcement efforts. For f.or investigating and bringing to trial cases urban police. Special training may be this purpose, the National Institute of Jus- involving diversion. Such cases resemble necessary for highway plltrols, as well as 5 other agencies in jurisdictions that .have The lack of legislation requiring record­ could be tied into an international system • large railroad and other transportatIon keeping in 33 States has cause~ pro?lems to help track imports and exports of these hubs. in domestic efforts to control dIverSIon. substances. Without adequate recordkeeping require­ Environmental and occupational issues. ments, there are no paper trails of diverted The group also saw a need for creatin~ a In addition, the DCAG noted the need for chemicals. Criminals can camouflage uniform reporting method on clandestme law enforcement agencies to be aware of diversion by shuffling shipments through lab statistics. Data on clandestine lab environmental and occupational laws and States lacking controls. activities and the amounts of chemicals regulations associated with the seizure of seized would give a better indication of the clandestine labs. Furthermore, even those States that have extent of these enforcement activities and legislation sometimes are inconsistent in theil' importance in halting the drug trade. Because of the toxicity of the chemicals, a their regulatory requirements. Many law enforcement agency becomes liable DCAG members called for more States to for various cleanup and transporting opera­ adopt model legislation such as that devel­ Chemical Action Task Force tions, for any damage to natural resource~, oped by the American Prosecut?rs ~e- . recommendations and for subsequent health risks that remam search Institute. This model legIslatIon IS after the lab is dismantled. These require­ The international Chemical Action Task integrated with Federal laws and would Force met several times from 1990 to 1992 ments result from provisions of the Com­ add to the effectiveness of the system of prehensive Environmental Response, and created three working groups: Chemi­ controls that has already proved effective cal Issues Diversion Issues, and Legal Compensation, and Liability Ace and the R in reducing illicit international trade. Resource Conservation and Recovery Act. and Reguiatory Issues. Each working Adoption of this model legislation by all group gathered and analyzed information Also, the Superfund Amendments and States, the DCAG suggested, could pro­ Reauthorization Act makes owners of from the experiences of CATF member vide the same sort of control for interstate countries and the knowledge of expert contaminated property responsible for diversion. decontamination before it is sold.9 Thus, if participants. Each group then made recom­ a property is confiscated by a 10c~1 juris­ According to the DCAG, State legislation mendations to the entire task force. The diction, seized through asset forfeIture on chemical diversion and trafficking reports of these groups, published in laws, and subsequently sold, the jurisdic­ should include all federally listed sub­ 1991," are summarized below. tion may still be responsible for cleanup. stances and contain a clause that permits Chemical Issues Working Group. This • rapid inclusion of new substances to the working group identified the specific The DCAG also discussed the fact that law Federal list without the need for a separate enforcement agencies are required by chemicals that should be regulated interna­ review process. The DCAG also suggested tionally. It examined chemicals used in the Occupational Safety and H~alth Ad~inis­ that State laws include requirements for tration regulations lO to proVIde medIcal manufacture of illicit drugs, including recordkeeping and reporting, with all heroin, cocaine, stimulant amphetamines, monitoring, appropriate safety equipme~t, records to be preserved for at least 4 years. and training for employees who work WIth LSD, PCP, methamphetamine, and Members also saw a need for the legisla­ toxic substances. Jurisdictions must pro­ methaqualone. The working group recom­ tion to provide assurances ~or keeping . vide these services to police personnel who mended 10 additional substances for con- sensitive business informatIon confidentIal, trol and these have already been approved raid toxic clandestine lab sites, according provide for subpoena power to obtain to these regulations. for inclusion in the 1988 U.N. convention. access to records, and make forfeitures and Exhibit 2 is a list of precursor and essential Additional legislation. The enactment of other penalties consistent with Federal chemicals controlled by the U.N. conven- Federal legislation has improved our effec­ legislation. tion, suggested by the CATF, and currently tiveness in controlling the international Information systems. The complex sys­ controlled by the United States. movement of these substances. However, tems of diversion developed by criminal several DCAG members called for more Diversion Issues Working Group. The drug producers make it essential that law second group examined existing methods potency in the Federal statutes. The DCAG enforcement agencies work together to suggested that legislation be strengthened for diverting chemicals and, in light Of. control this problem. The necessity for bv requiring licenses or permits for manu­ existing business practices and domestIc investigators to follow circuitous shipment and international laws and regulations, f~cturers of precursor and essential chemi­ routes as weIl as the ever-present possibil­ cals. In addition, longer waiting periods sought appropriate ways to prevent diver- ity that fraudulent documents will be used sion. This group surveyed member coun- before shipment could increase the level of in diversion, make it essential that law confidence that purchasers are legitimate tries to determine their greatest problems enforcement agencies have access to up-to­ users, and more followup and record­ and concerns about diversion. Based on date, accurate information about amounts this survey, the group prepared a compre­ keeping could also ensure that sub~tances being shipped, legitimate users, and lost or are used for legitimate purposes. Fmally, hensive list of diversion methods. (See stolen materials. The DCAG noted that a some group members sought to extend exhibit 1.) . nationwide information system, accessible controls to chemical analogs and other by Federal State, and local agencies, Legal and Regulatory Issues WOrking'. substitutes for currently controlled precur­ would hel~ greatly in both preventing and Group. The third group focused on le~~l sor and essential substances. investigating diversion. This system also and regulatory issues. It surveyed partlCI-

6 General recommendations. Building • Exhibit 2. Precursor and Essential Chemicals Identified by CATF upon the findings and recommendations of its working groups, the CATF adopted a final report in June 1991 that made general Acetic anhydride* Hydrochloric acid' recommendations about the control and Acetone· 1505afrole' regulation of these substances. It suggested N-Acetylanthranilic acid* Lysergic acid' that all affected countries develop control programs with five key components: Ammonia (anhydrous) Methyl alcohol Ammonia in aqueous solution Methylamine' • Vigilance. All commercial operators Ammonium hydroxide 3,4-Methylenedioxyphenyl-2-propanone' who deal with essential and precursor chemicals must remain alert for efforts to Anthranilic acid* N-Methylephedrine* divert these substances for illicit purposes. Benzene N-Methylpseudoephedrine* • Administrative surveillance. Accurate Benzyl chloride' Norpseudoephedrine* records must be kept of all production and Benzyl cyanide· Petroleum ether (petroleum benzene) transactions. These must be retained for a 2-Butanone (MEK)* Phenylacetic acid* minimum of 2 years. [The United States already requires that records of transac­ Butyl acetate Phenylpropanolamine' tions involving precursor chemicals be Butyl alcohol 1-Phenyl-2-propanone (phenylacetone) kept for 4 years and that records of transac­ Calcium carbonate Piperidine' tions involving es&ential chemicals be kept Calcium hydroxide Piperonal* for 2 years.] Chloroform (Trichloromethane) Potassium permanganate' • Registration and authorization. Diacetone alcohol (pyranton) Propionic anhydride' Manufac~urers of certain substances, par­ ticularly precursors, should be licensed to Ephedrine' Pseudoephedrine* make and sell them. This component is not Ergometrine (Ergonovine)' Safrole* necessary for essential chemicals such as .Ergotamine' Sodium bicarbonate acetone and ethyl ether that have wide in­ Ethyl acetate Sodium carbonate dustrial applications. Ethylamine* Sodium hydroxide • Export authorization. Every country N-Ethylephedrine' Sulfuric acid* should control its exports of these materi­ als to prevent them from falling into the Ethyl ether* Toluene' hands of illicit enterprises. N-Ethylp5eudoephedrine* Xylene:; (Xyloles) • Import authorization. Every country Hexane also should be certain that imports of the Hydriotic acid' 'Regulated by the United States substances are not diverted to illicit drug producers. The task force made other recommenda­ tions about how to control this problem. It pating nations to determine their existing group further recommended that all coun­ called for greater U.N. funding for the In­ laws and regulations on these substances. tries ratify the U.N. convention, but stated ternational Narcotics Control Board and The group also used the findings of the that no proposal to reform the U.N. con­ suggested that the board give priority to first two groups as the basis for its recom­ vention or annex should hinder a country providing resources for communications, mendations. These recommendations are from improving its systems to control these equiprne.ot, and training. The task force directed toward all countries involved in substances. also called for governments to monitor the legal manufacture, sale, distribution, commerce to identify new substances used transit, or use of essential and precursor The group stressed that new regulations in illicit drug production, as well as new should consider the need to preserve licit chemicals. methods and patterns of diversion. It urged commerce and avoid making a control countries involved in the production, tran­ The working group recommended that the system so burdensome that it hinders com­ sit, transshipment. and use of precursor and manufacture, sale, and distribution of merce. Finally, the working group empha­ essential chemicals to share information on chemical products with the aim of manu­ sized that intemational cooperation is legitimate and illegitimate users. It also facturing narcotics and other illicit drugs indispensable. All parties must satisfy suggested that all countries provide assist­ ~ould constitute a violation of narcotics themselves about the legality and regular­ ance in intemationallaw enforcement Wegislation and should be prosecuted in the ity of every shipment of precursor or es­ efforts. same manner as drug trafficking. The sential chemicals.

7 The task force urged that each country de­ Notes 9. Superfund Amendments and Reauthoriza- • velop regulatory measures for every stage tion Act [Public Law 99-499J is an amendment of the distribution process (receipt, storage, I. Office of National Drug Control Policy, to the Comprehensive Environmental Re- National Dl'lIg Co/llrot Strategy, (U.S. Govt. sponse, Compensation, and Liability Act. handling, processing, and delivery) of the Print. Off.), February 1991, p. 94. Section 120(h) [42 U.S.C. 9620(h) (1988)J subject chemicals, particularly in free ports makes Federal agencies selling contaminated and free trade zones. Finally. it suggested 2. Drug Enforcement Administration, Chemical property agree to perform any future remedial that discrete international tariff codes be Handler's Manual: An Informational Outline of action necessary after the trans tel'. developed to track each of the chemicals the Chemical Diversion Gild Trafficking Act of more effectively. 1988. (V.S. Govt. Print. orf.), 1990, p. I. 10. 29 C.F.R. Part 1910.120. 3. Impact of Clandestine Dl'lIg Laboratories II. Chemical Action Task Force, Chel1l1cal Oil Small Business. 1988: Hearing before the Action Task Force Working Group Reports and Summary Subcommittee on Regulatioll and Business Chemical Action Task Force Final Report, If we are to control and defeat the drug Opportunities of the House of Representatives Jur.e 1991. problem, our Nation's law enforcement Committee on Small Business, lOath Congress, 2d Session, 1988 (Statement of David agencies must learn more about precursor Frohnmayer, Attorney General of the State of and essential chemicals and the role they Oregon). Findings and conclusions of the research re­ play in drug trafficking. Also, every juris­ ported here are those of the researchers and do diction must review and make certain that 4. Statement of Jim Brady, Operations Division, not necessarily reflect the official position or its laws and policies meet the objective of Dangerous Drugs Investigations Section, Drug policies of the U.S. Department of justice. controlling the flow of these chemicals. Enforcement Administration, Summary of Meeting Notes, Domestic Chemical Action The regulation of precursor artd essential Group, October 29, 1990, meeting. The Natiollallnstitllte ofJllstice is a compo­ chemicals is a crucial component of efforts 5. Anna T. Laszlo, "Clandestine Dmg Laborato­ nent ofthe Office ofJustice Programs, which to reduce the supply of illicit drugs. But it ries: Confronting a Growing National Crisis," also includes the Bureau of Justice Assist­ is not just a national endeavor. The activi­ National Sheriff: Vol. 41(4), August-September ance, Bureau ofJustice Statistics, Office of ties of the Chemical Action Task Force 1989. ll/l'eni!e Jllstice and Delinquency Preven­ and other international bodies demonstrate tion. and the Office for Victims of Crime. the worldwide scope of this effort. Further­ 6. Domestic Chemical Ac;:tion Group, Minutes of October 29, 1990, meeting. more, State and local law enforcement NCJ 137862 officials have an important role in making 7.42 U.S.C. 9601-9657 (1982), amended by certain that their juriSdictions do not unwit­ 42 U.S.C. 960\-9675 (I9~8). tingly become a source of chemicals for 8.42 V.S,C. 6901-6992 (1988). • clandestine laboratories or a haven for manufacturers of illegal drugs.

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