U.S. and Hong Kong (2006)

U.S. Drug Enforcement Administration

Statement of

Karen P. Tandy
Administrator
Drug Enforcement Administration
U.S. Department of Justice

Regarding

"International Meth Trafficking"

Before the

Senate Foreign Relations Committee
Subcommittee on International Economic Policy, Export and Trade Promotion
and
Subcommittee on Western Hemisphere, Peace Corps and Narcotics Affairs

June 21, 2006

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The DEA's Enforcement Efforts

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To enhance our international efforts to combat this drug, DEA has assigned Diversion Investigators (DIs) to a number of our foreign offices. These DIs, through their knowledge of pharmaceuticals and chemicals, play a critical role in preventing the diversion of List I chemicals which are used in the manufacture of methamphetamine and of pharmaceutical controlled substances. The DIs coordinate with foreign host country counterparts to establish effective systems of chemical controls and to ensure that customers in foreign countries receiving U.S. exports of pharmaceutically controlled substances are in fact legitimate companies. Foreign-based Diversion Investigators were intricately involved in two DEA operations in Hong Kong and Mexico run under the auspices of Project Prism that resulted in significant seizures of pseudoephedrine.

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The International Control of Precursor Chemicals

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The 1988 U.N. Convention recommended that countries implement a permit system for chemical imports and exports, (Paragraph 8(b)(iii)), and some countries (e.g. Germany, China, and India) have implemented this system. Other countries consider chemicals such as pseudoephedrine to be pharmaceutical drugs and therefore issue permits for their import and export.

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International Cooperation

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In addition, the United States and Mexico have jointly obtained a commitment from Hong Kong not to ship chemicals to the United States, Mexico, or Panama until receiving an import permit or equivalent documentation and giving prior notification to the receiving country before shipment. If suspect shipments can be identified before they arrive in Mexico, it is easier for law enforcement to take effective action by either attempting to seize the shipment or by conducting a controlled delivery of the chemicals in order to identify the traffickers and the shipments ultimate destination.

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Mexico's efforts to control methamphetamine precursor chemicals have not been limited to regulatory actions. An example of Mexico's pseudoephedrine interdiction efforts occurred during December 2005, when approximately 3.2 metric tons (approx. 5.1 million pseudoephedrine combination tablets) of pseudoephedrine were seized by Mexican authorities in the Port of Manzanillo, Mexico. The tablets were concealed within a shipment of electric fans, which were packaged in approximately 1,260 boxes. During the follow-up joint investigation conducted by DEA and the Hong Kong Customs and Excise Department, officials disclosed that the shipment of electric fans containing the tablets originated in mainland China and transited one of the mainland China/Hong Kong border crossings before being loaded on a marine vessel en route to Mexico.

In addition to these efforts with Mexico, the DEA, operating under the auspices of Project Prism, hosted a meeting in February in Hong Kong for law enforcement and regulatory officials from countries that produce ATS precursor chemicals. The purpose of this meeting was to develop and enhance systems for voluntary cooperation in data collection to build a consensus towards exchange of information on pharmaceutical preparations containing ephedrine and pseudoephedrine as well as bulk precursors. This was the first time that almost all of the countries that produce these chemicals and those countries affected by methamphetamine have sat down together to discuss this problem.

While there were some differences of opinion as to the manner and channels in which information regarding the licit trade in these substances should be exchanged, the communication that occurred between countries attending the open forum meeting was encouraging. Although we were disappointed that China chose not to send a delegation, the DEA, in cooperation with the Department of State, will continue discussions with all involved countries to determine the worldwide production of these chemicals, identify producers and distributors, gain better insight as to what form (bulk versus. tablets) the chemicals are manufactured and distributed at various stages, and learn where the chemicals are destined. In fact, during the week of June 5, a contingent from China came to DEA headquarters and met with high level officials in part, to discuss the many aspects involved in the importation of these precursor chemicals.

The Hong Kong meeting also helped to lay a foundation for the discussions and negotiation among concerned governments which led to the passage of a resolution at the 49th Commission on Narcotic Drugs (CND) in Vienna, Austria, in March of this year. The resolution, entitled "Strengthening Systems for Control of Precursor Chemicals Used in the Manufacture of Synthetic Drugs," involves the methamphetamine precursors previously mentioned, as well as preparations containing these substances, and phenyl-2-propanone (P2P) as well.

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