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CHAPTER VI Management of Narcotic Substances (Department Of ReportNo.12of2014ͲUnionGovernment(IndirectTaxesͲCustoms) CHAPTERVI ManagementofNarcoticsubstances(DepartmentofRevenue) 6.1 Introduction Theuseofopiuminthecountrycouldbetracedbackasfaras1000ADwhereit finds mention in ancient texts such as Dhanvantari Nighantu as a remedy for variety of ailments.During Emperor Akbar’s reign (1543Ͳ1605) opium was cultivatedextensivelyintheMalwa(MadhyaPradesh)andMewar(Rajasthan) regions.DuringthereignofBritishEastIndiaCompany,collectionofrevenue fromopiumwasmadepartoffiscalpolicyandvariousopiumagenciessuchas the Bengal,Benares, Bihar, Malwa Agencies were formed over time.Prior to 1950,theadministrationoftheNarcoticsLaws,namely,theOpiumActof1857 & 1878 and the Dangerous Drugs Act, 1930 vested with the Provincial Government.TheamalgamationoftheseAgencieslaidthefoundationofthe Opium Department in November, 1950 which is presently known as Central BureauofNarcotics(CBN).TheCBNHeadquarterswasshiftedfromShimlato Gwaliorin1960. InIndia,opiumpoppycultivationisprohibited,underSection8oftheNarcotics Drugs and Psychotropic Substances (NDPS) Act, 1985, except under a license issuedbytheCentralBureauofNarcotics.Atpresent,thelicitopiumcultivation ispermittedbytheGovernmentofIndiainselectedtractsinthreetraditionally opium growing States namely Madhya Pradesh, Uttar Pradesh and Rajasthan. AsasignatorytotheUnitedNationsSingleConventiononNarcoticsDrugs,1961 andasalicitproducerofopium,Indiaisrequiredtoadheretotheregulations underthesaidconvention.TheNDPSAct1985wasamendedtwicein1989and 2001.TheNDPS(Amendment)Act2011,passedon21February2014,aimedat ensuring availability of essential opioid medicines for medical use and private sectorinvolvement. 6.2 OrganizationalsetͲup Narcotics Commissioner, CBN reports to the Additional Secretary (Revenue), Narcotic Control Division (NCD), Department of Revenue (DoR) for all operationalmatters(Appendix26).Foradministrative,personnelandvigilance issuesitisundertheCentralBoardofExciseandCustoms.Theopiumcollected fromthefarmersbytheCBNissenttoGovernmentOpiumandAlkaloidorksW (GOAW) Neemuch and Ghazipur which are under the control of the Chief ControllerofFactories(CCF)undertheNCD(DoR). 6.3 ScopeofAudit Thescopeofthisauditistoscrutinizetherecordsfortheperiodfrom2010Ͳ11to 2012Ͳ13.It involves scrutiny of records of Narcotics Commissioner, Central BureauofNarcotics,Gwalioranditsfieldformationsalongwithitslinkageswith GovernmentOpiumandAlkaloidWorks (GAOW) andNarcoticControlDivision 77 ReportNo.12of2014ͲUnionGovernment(IndirectTaxesͲCustoms) (DoR)forcultivation,production,possession,storage,sale,consumption,import andexportofopiumanditsderivatives. 6.4 AuditCriteria The audit was conducted with reference to the criteria derived from the followingsourcedocuments: x NDPSAct,1985;NDPS(Amendment)Acts1989,2001,2011. x NDPS (Prevention of Illicit Traffic in Narcotic Drugs and Psychotropic Substances)Act,1988 x NationalpolicyonNarcoticdrugsandPsychotropicSubstances. x Notifications/Circulars/InstructionsissuedbytheMinistryofFinancefor regulationofCBNactivitiesandbyCBNformanagingitsactivities. x ResultsframeworkdocumentofCBN(aResponsibilityCenterofDoR). x Annual report 2012Ͳ13 of Department of Revenue (DoR), Narcotics ControlBureau(MinistryofHomeAffairs). 6.5 SanctionedStrengthandPersonsͲinͲposition ThesanctionedstrengthandPersonsͲinͲpositionofofficeoftheCentralBureau of Narcotics, Gwalior and Chief Controller of Factories (common cadre) is as under: Sl. Nameof Sanctioned PersonsͲinͲ Vacancy No. post Strength Position CBN CCF CBN CCF CBN % CCF % 1. Group‘A’ 16 3 8 2 8 50 1 33 2. Group‘B’ 57 10 49 7 8 14 3 30 3. Group‘C’ 640 145 280 52 360 56 93 64 4. Group‘C’ 494 77 184 31 310 63 46 60 earlier Group‘D’ Total 1207 235 521 92 686 143 TherearehugevacanciesbothintheCBNandCCF’sorganization.Government mayinstituteaspecialdrivetofillthevacancysothattheNDPSActisproperly implemented. 6.6 Functions and Responsibilities of Narcotic Control Division (DOR) and CBN The functions and responsibilities of CBN stretches from control over different stages of opium cultivation to its procurement, quantity and quality control of opium, issuing licenses to drug manufacturers, prevention, enforcement and exportͲimportofpsychotropicdrugs.Themajorfunctionsandresponsibilitiesof CBNaregivenbelowwhiletheauditfindingsinparagraphs7and8summarises theexaminationoftheseaspects. 6.7 Opiumpoppycultivationandcontrolprocess The control mechanism is exercised by the Central Government over opium poppycultivationwhichiscarriedoutintermsoftheprovisionsundertheNDPS 78 ReportNo.12of2014ͲUnionGovernment(IndirectTaxesͲCustoms) ActandRules,1985madethereunder.Theactualcontrolmechanismadopted byCBNisaimedatstrictcontrolovertheactivitiesofthecultivationrightfrom thestageofissueoflicencetillfinalcollectionofopium.Thefollowingtimeline isfollowedforopiumcropcycle: 1. Finalizationofopiumpolicy AugustͲSeptember 2. Issueoflicensestocultivateopiumpoppy October 3. Sowingperiod OctoberͲNovember 4. Measurementoffieldsbyrangeofficer MidDecember–MidJanuary 5. Testmeasurementofpoppyfieldsbyseniorofficers MidJanuary–2ndweekofFebruary 6. Lancing&collectionofopiumandcheckingofPreliminary MidFebruary–3rdWeek ofMarch Weighment Register 7. Uprootingofunlanceddamagedcrop Onreceiptofapplications 8. Weighment Operation (collection of opium and 90% April1stWeek –Aprilend paymenttocultivatorsbasedonprovisionalanalysis) 9. AnalysisofOpiuminGovernmentFactoriesandupdating Maytoendof3rdWeek ofJuly of records for calculation of Average Yield and balance paymentduetocultivators 6.8 IssueofmanufacturinglicenceofNarcoticDrugs AccordingtoRule37oftheNDPSRules,1985,themanufactureofdrugsnotified undersubͲclause(b)ofclause(xi)ofsection2oftheActisprohibitedsaveunder and in accordance with the condition of licence granted by the Narcotics Commissioner of such other officer as may be authorised by the Central Government in this behalf, in Form No. 3 appended to these rule. A fee of Rupeesfivethousandonly(from13July2010)shallbepayableinadvancetothe CentralGovernmentforeachlicenceissuedunderthisruleforrenewalthereof. The manufacture of Narcotic drugs is governed by estimate system.While allowingthemanufacturinglicence,itisensuredthatthetotalquantityofdrug allowed to be manufactured during any year does not exceed the annual estimatedrequirementsofIndiaasfurnishedandsubsequentlypublishedbythe InternationalNarcoticsControlBoard,Vienna, Austria. Details of manufacturing licences issued/renewed for synthetic manufactured Narcoticsdrugsareasunder: Year No.ofmanufacturingLicences Feerealized issued/renewed (in`) 2011 25 125000 2012 46 230000 2013 47 28500016 Total 118 590000 6.9 IssueofExportAuthorizationsandImportCertificate Being signatory to the three UN Conventions on drugs held in the year 1961, 1971 and 1988, India has madeenabling provisions in the NDPS Act, 1985 for control over narcotic drugs and psychotropic substances and precursor 1657applicationswerereceivedagainstwhich47licenceswereissuedandrestweredisposedof. 79 ReportNo.12of2014ͲUnionGovernment(IndirectTaxesͲCustoms) chemicals.The CBN is performing the function of the Competent National Authority for control over international trade of NDPS as provided for in the NDPS Act 1985.These provisions prohibit import and export of these drugs unless an Import Certificate or Export Authorization has been issued by the NarcoticsCommissioner. TheCBNissuescertificatesforExport/ImportofNarcoticDrugs&Psychotropic Substances and issue ‘No ObjectionCertificate’ for import/export of precursor chemicals dealing with narcotic drugs, psychotropic substances and chemicals/substancesusedformanufactureofthesedrugs. The import and export of Narcotic Drugs and Psychotropic Substances are governed by estimate system.While allowing Import Certificate/Export Authorisation, it is ensured that the estimatedrequirementof a particular narcotic drug and psychotropic substancedoes not exceed the requirement in respectofIndia.Suchimportcertificatesaregrantedsubjecttoconditionthat the importer will submit the import details immediately after affecting import and any kind of amendment as well as extension in validity of Export Authorisationwouldnotbeallowed. Any narcotic drugs or psychotropic substances can be imported into/exported outofthecountrysubjecttoRule53andRule53ͲAoftheNDPSRules,1985. AccordingtoRule54and58oftheNDPSRules,1985Importcertificate/Export Authorisationisissuedunlessafeeof` 1000(RupeesOneThousandonly)has beenpaid. DuringlastthreeyearsExportauthorizationsandImportCertificateshadbeen issued for Export/Import of narcotic drugs and psychotropic substances as under: Year NarcoticDrugs PsychotropicSubstances Feerealized Export Import Export Import (Lakh`.) Authorization Certificate Authorization Certificate 2011 142 98 2090 150 24.80 2012 119 122 2182 232 26.55 2013 117 88 2059 281 25.45 Total 378 308 6331 663 76.80 6.10 Issue of No Objection Certificates for export and import of precursor chemical The exports of Precursor Chemicals are governed by System of PreͲExport Notification(PEN).CBNusesasystemofPENtoverifythegenuinenessofthe transaction and to notify the Competent Authority of the importing and transhippingcountryoftheimpendingexport.SuchNOCsareallowedbythe CentralBureauofNarcoticssubjecttofollowingconditions:Ͳ a. Any kind of amendment as well as extension in validity of Export Authorisationwouldnotbeallowed. 80 ReportNo.12of2014ͲUnionGovernment(IndirectTaxesͲCustoms) b. Theshipmentshouldbemadeinoneconsignmentwithinthevalidityof theNOC. c. The exporters are required to submit export details immediately after effectingexport. The
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