INTERNATIONAL COUNCIL OF CHEMICAL ASSOCIATIONS

The International Council of Chemical Associations (ICCA) is a council of leading trade associations representing chemical manufacturers worldwide. ICCA members include: associations from the North American Free Trade Area (NAFTA) {Associacion Nacional de la Industria Quimica (ANIQ-Mexico), Canadian Chemical Producers Association (CCPA), and Chemical Manufacturers Association (CMA-USA)}; the Japan Chemical Industry Association (JCIA); the Plastics and Chemicals Industries Association (PACIA-Australia); and the European Chemical Industry Council (CEFIC).RECOGNIZING that illicit drug production is a major threat to a nation's health and to the economic wealth of our societies,

RECOGNIZING ALSO that the substantial commercial demand for legitimate chemical products susceptible to being used for the illicit production narcotic drugs and psychotropic substances is growing, and that such goods often move at international level,

RECOGNIZING that offences against export and import regulations, particularly chemical diversion, are prejudicial to the economic, social, fiscal and security interests of States and to the interests of all parties involved in legitimate international trade in chemical products and equipment, and that such offences may utilize legitimate trade patterns to cover illegitimate movements,

NOTING that legitimate chemical operators are willing to assist Customs authorities in identifying suspicious transactions involving these products,

NOTING ALSO that Customs authorities are willing to assist chemical operators to facilitate legitimate international trade in these products and, recognizing legislative constraints and restrictions and the confidentiality of on-going investigations, would in particular undertake to communicate to chemical operators all information which might help producers to identify suspect transactions and hence fulfill their obligations arising from the current regulations,

NOTING the need for international harmonization of documents, procedures and interfaces between chemical operators and Customs authorities, particularly with regard to EDI, commodity coding systems, standards, and a single and internationally recognized method of classifying controlled products,

NOTING that chemicals commonly used in illicit drug production are divided into two tables and are already regulated under Article 12 of the 1988 UN Convention against illicit traffic in narcotic drugs and psychotropic substances as amended at the 35th Session of the United Nations Commission on Narcotic Drugs (Annex I),

BELIEVING that increased co-operation between chemical producers and Customs authorities could significantly assist both parties in the gathering of information and intelligence and in a better implementation of the regulations improving the reduction of any form of chemical diversion for illicit narcotic drugs and psychotropic substances,

BELIEVING ALSO that such co-operation would be of benefit to all parties in legitimate trade, and such co-operation could assist the expeditious movement of legitimate shipments,

NOTING the Chemical Weapons Convention opened for signature on 13 January 1993 which bans the development, production, acquisition and stockpiling of chemical weapons and also noting other internally agreed measures concerning the controls of Chemical Weapons precursors in order to prevent the diversion of chemicals to illegal activities and furthermore recognizing the legitimate trade of these chemicals for civil purposes.

The Customs Co-operation Council and the International Council of Chemical Associations have agreed as follows :

(i) To strengthen further co-operation between the two organizations.

(ii) To examine and develop together ways in which co-operation and consultation between chemical operators and Customs authorities could be improved with a view to providing the grounds for more effective control over the shipping of chemicals most commonly suspected to be diverted into illicit production of narcotic drugs and psychotropic substances.

(iii) To seek to ensure a better understanding by the chemical operators of Customs authorities' tasks and problems and better understanding of tasks and problems of chemical operators by Customs authorities, thereby facilitating co-operation between the two parties.

(iv) To consider practical ways in which the personnel of chemical manufacturers and the personnel of Customs authorities might assist each other in the detection of cases of chemical diversion, e.g., the development of practical Guidelines for chemical operators and Customs administrations, recognizing national legislation.

(v) To consider in particular the measures identified by the Chemical Action Task Force (CATF) implemented, as appropriate, by the European Community and/or national regulations, namely :

1. Vigilance : Countries must ask commercial operators to alert the competent authorities about any suspicious transactions involving these products. Public authorities should carry out co-operative programmes with commercial operators.

2. Administrative surveillance : Commercial operators must be required to maintain records and documents for all transactions in the subject chemicals. These should be subject to inspection by competent authorities for a period considerably longer than two years.

3. Registration/Authorization of operators : Commercial operators must be subject to a licensing or authorization system in order to transact business in these chemicals.

4. Export authorization : Exports must be made contingent on the issuance of an export permit for each individual transaction involving specified chemicals. The exporting country must require exporters to identify accurately the ultimate consignees in the importing country, as well as all intermediary consignees (including brokers), prior to permitting any export.

5. Import authorization : Importing countries must exercise strict diligence when authorizing imports. This includes ascertaining the importer's competence and integrity as well as the purpose for which the chemicals are being imported.

(vi) To foster the concept of joint action plans at national, regional and international level, aimed at effective co-operation between chemical manufacturers and Customs authorities in order to prevent chemical diversion for the illicit production of narcotic drugs and psychotropic substances.

(vii) To consider methods by which the co-operation of chemical manufacturers and Customs authorities on drug precursors agreed in this Memorandum of Understanding might be extended to cover Chemical Weapons precursors. To this end the parties agree to review the operation of this agreement at regular intervals with the intension to include products and materials which can be illegally diverted into chemical weapons production.

Signed on 11 March 1994

COMPREHENSIVE LIST OF CHEMICALS RELATING TO Annex 1

ARTICLE 12 OF THE 1988 UN CONVENTION

TABLE I CAS No. CCC HS Sub-Heading

Ephedrine 299-42-3 2939.41 *
Ergometrine 60-79-7 2939.61 *
Ergotamine 113-15-5 2939.62 *
Lysergic acid 82-58-6 2939.63 *
1-Phenyl-2-propanone 103-79-7 2914.31 *
(Phenylacetone)
Pseudoephedrine 90-82-4 2939.42 *
N-Acetylanthranilic acid 89-52-1 2924.22 *
(2-Acetamidobenzoic acid)
3,4-Methylenedioxy-phenyl-2-propanone 4676-39-5 2932.92 *
(1-[1,3-Benzodioxole-5-yl] propan-2-one)
Isosafrol(e) 120-58-1 2932.91 *
Piperonal 120-57-0 2932.93 *
Safrole 94-59-7 2932.94 *

TABLE II

Acetic anhydride 108-24-7 2915.24 *
Anthranilic acid (2-Aminobenzoic acid) 118-92-3 2922.43 *
Phenylacetic acid 103-82-2 2916.33 *
Piperidine 110-89-4 2933.32 *
Acetone 67-64-1 2914.11 *
Ethyl ether (Diethyl ether) 60-29-7 2909.11 *
Methylethyl ketone (MEK/Butanone) 78093-3 2914.12 **
Toluene 108-88-3 2902.30 **
Potassium permanganate 7722-64-7 2841.61 *
Sulfuric acid 7664-93-9 2807.00 ***
Hydrochloric acid (Hydrogen chloride) 7647-01-0 2806.10 *

* Proposed new HS Sub-heading (in effect as from 1.1.1996)
** Already existing HS Sub-heading
*** Already existing HS Sub-heading combined with Oleum (a modifed form of sulfuric acid)

Alternative names taken from European Customs Inventory of Chemicals or Explanatory Notes to Harmonized System: Volume 1