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Meetings
and Events > Chemical
Industry Conference > 2008 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
- Dangers of
Methamphetamine,
Scott Masumoto, DEA, Synthetic Drugs & Chemicals Section
- Domestic
& International Perspective,
Scott Masumoto, DEA, Synthetic Drugs & Chemicals Section
- Chemical
Quotas,
Susan Carr, DEA, Drug & Chemical Evaluation Section
- Chemical
Control Actions,
Liqun Wong, DEA, Drug & Chemical Evaluation Section
- CMEA Laws
& Regulations Update,
Mark Caverly, DEA, Liaison & Policy Section
- Import/Export
Issues,
Mark Via, DEA, Regulatory Section
- Importing
Regulated Chemicals,
Cheryl Townsend, U.S. Customs & Border Protection
- DEA
Legal Issues,
Linden Barber, DEA, Office of Chief Counsel
- Chemical
Registration Issues,
Rick Boyd, DEA, Registration & Program Support Section
- Industry
Best Practices Panel,
Ted Cromwell, American Chemistry Council; Claudia Elias,
BASF Corporation; Gary Hallen, Eastman Chemical Company;
& Cheryl Luckhaupt, Procter & Gamble Company
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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