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Meetings and Events > Chemical Industry Conference > 10th Industry Conference 2008
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10th Chemical Industry Conference

Atlanta, Georgia
September 17-18, 2008

The Drug Enforcement Administration’s (DEA) Office of Diversion Control sponsored the 10th Chemical Industry Conference, September 17 - 18, 2008, in Atlanta, Georgia. Participants included approximately 65 representatives from 47 List I chemical registrants. This conference is held on a biannual basis and is one of the mechanisms used by the Office of Diversion Control to encourage communication and cooperation between DEA and the chemical registrant community.

In addition to the topics listed below, conference members discussed existing Federal regulations, clarification of DEA policies, and the development of initiatives to reduce the diversion of List I and II chemicals.

  • Dangers of Methamphetamine
  • Chemical Quotas
  • Chemical Control Actions
  • Combat Methamphetamine Epidemic Act (CMEA) Updates
  • Import/Export Issues
  • Registration Issues

PRESENTATIONS

CONFERENCE REPORT

Opening Remarks

The conference opened with a welcome by Larry Lockhart, Acting Diversion Program Manager (DPM), Atlanta Division. Acting DPM Lockhart provided a brief overview of the chemical situation within the Atlanta Division.

Denise Curry, Deputy Director, DEA, Office of Diversion Control, presented introductory comments and outlined the objectives for the 10th Chemical Industry Conference noting specifically that diversion and drug abuse issues have magnified and will continue to be a matter of public health and safety.

The presentations given throughout the conference highlighted the initiatives the Office of Diversion Control has undertaken since the last conference (October 31, 2006 in Louisville, KY). The presentations are briefly summarized below.

Dangers of Methamphetamine

Scott Masumoto, Acting Section Chief, Synthetic Drugs and Chemicals Section, DEA, provided a brief overview of methamphetamine effects, clandestine labs and dangers, methamphetamine production methods, and the current situation.

Domestic & International Perspective

Scott Masumoto, Acting Section Chief, Synthetic Drugs and Chemicals Section, DEA, provided a brief overview of domestic and international efforts to combat methamphetamine production and the controls placed on related chemicals.

Chemical Quotas

Susan Carr, Deputy Section Chief, Drug and Chemical Evaluation Section, DEA, discussed the production of methamphetamine and the scheduled listed chemical products used in this process. Ms. Carr described DEA requirements under the Combat Methamphetamine Epidemic Act (CMEA) including the newly-established assessment of annual need and individual company manufacturing and procurement quotas for ephedrine, pseudoephedrine, and phenylpropanolamine.

Chemical Control Actions

Liqun Wong, Chemist, Drug & Chemical Evaluation Section, DEA, provided information on recent chemical control actions. Data was presented on fentanyl and fentanyl precursor chemicals, N-Phenethyl-4-piperidone (NPP) and 4-anilino-N-phenethyl-4-piperidine (ANPP). The diversion and recent controls regarding iodine were also discussed.

CMEA Laws and Regulatory Updates

Mark Caverly, Section Chief, DEA, Liaison and Policy Section, informed the audience of the regulatory updates related to the CMEA. The update contained a brief summary of CMEA related interim rules, final rules, and proposed rulemakings to include:

1) Self Certification Status

2) Interim/Final Rules

  • Retail Provisions
  • Spot Market
  • Import & Production Quotas
  • Elimination of Exemption for Chemical Mixtures, Ephedrine, & Pseudoephedrine(PSE)
  • Assessment of Annual Need

3) Proposed Rules

  • Self Certification Fee
  • Removal of Thresholds for PSE and phenylpropanolamine(PPA)
  • Recordkeeping Requirements for Chemical Distributors
  • Registration Requirements for Importers & Manufacturers of Prescription Drugs Containing Ephedrine, PSE, & PPA
  • Foreign Chain of Distribution

Import/Export Issues

Mark Via, Technical Information Specialist, Regulatory Section, DEA, discussed the DEA Form 486 (Import/Export Declaration). He provided statistical information as well as best practices for executing, amending, and supplying return information.

Importing Regulated Chemicals

Cheryl Townsend, U.S. Customs & Border Protection (CBP), provided an overview of CBP’s strategy, the Harmonized Tariff Schedule of the United States, and how to classify chemicals.

DEA Legal Issues

Linden Barber, Associate Chief Counsel, Office of Chief Counsel, DEA, gave a detailed presentation entitled Lessons from Recent Cases. The key points included:

  • Distributing only from the registered location
  • Screening orders before distribution
  • Forgoing transactions that cannot be determined to be legitimate
  • Knowing customer’s legitimate need
  • Knowing customer’s suppliers
  • Verifying customer has self-certified

Chemical Registration Issues

Rick Boyd, Section Chief, Registration & Program Support Section, DEA, provided a registration update to the participants. Some of the important aspects are as follows:

  • As of August 2008, there were 1,401 chemical registrants to include distributors, manufacturers, importers, and exporters.
  • DEA Interactive Web Based Change forms, implemented in 2007, enable registrants to submit name, address, schedule or chemical code changes online. Registrants no longer print paper forms and mail changes to DEA. This process has resulted in the reduction of 700,000 pieces of paper a month being received and handled by the Registration Section.

Industry Best Practices Panel

Ted Cromwell, American Chemistry Council; Claudia Elias, BASF Corporation; Gary Hallen, Eastman Chemical Company; & Cheryl Luckhaupt, Procter & Gamble Company, provided industry-related recommendations on the following six topics:

  • Facility Registration
  • Know Your Customer
  • Quotas
  • Import/Export 486 Process
  • Compliance Tools
  • Cooperation

DEA Panel – Industry Concerns

Scott Masumoto, Synthetic Drugs & Chemicals Section; Mark Caverly, Liaison & Policy Section; Susan Carr, Drug & Chemical Evaluation Section; Mark Via, Regulatory Section; and Linden Barber, Office of Chief Counsel, responded to questions and concerns posed by conference participants.

Case Presentations

Special Agent Robert Bowe, DEA Newark, presented information from a recent port project coordinated with U.S. Customs & Border Protection.

Diversion Investigator Thomas Popowich, DEA Newark, discussed chemical cases conducted by DEA Newark against chemical registrants.
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