INTERNATIONAL NARCOTICS CONTROLS REPORT (INCSR)

UNCLAS SECTION 01 OF 07 PRAGUE 001405 SIPDIS SIPDIS JUSTICE FOR OIA, AFMLS, NDDS TREASURY FOR FINCEN DEA FOR OILS,AFMLS, NDDS E.O. 12958: N/A TAGS: SNAR PGOV PREL EZ SUBJECT: INTERNATIONAL NARCOTICS CONTROLS REPORT (INCSR) FOR CZECH REPUBLIC (PART I OF II) REF: SECSTATE 154928 ¶1. SUMMARY. I. Illegal narcotics are imported to, manufactured in, and consumed in the Czech Republic. Locally produced pervitine is also exported to neighboring countries. Marijuana, grown locally and imported from Holland, is used more than any other drug. Consumption of recreational drugs, such as marijuana and ecstasy, continues to grow particularly among youth. The Czech government has taken little action, even though the EU reported last year that Czech marijuana usage is the highest in Europe. Usage and addiction rates of heroin and pervitine are high but seem to have stabilized; while cocaine use remains low but is growing. The Czech Republic is a producer of ergometrine and ergotamine used for the production of LSD. The Czech Republic is a party to the 1988 UN Drug Convention. ¶2. II. Status of Country Several factors make the Czech Republic an attractive country for groups in the drug trade. These factors include: its central location, the closure of most of the traditional customs posts along the nation's borders as part of EU accession in 2004, low detection rates for laundered drug money, low risk of asset confiscation, and relatively short sentences for drug-related crimes. The growing purchasing power of Czechs also makes the country a popular destination country. The maximum sentence for any drug-related crime is 15 years imprisonment, but often convicted drug traffickers only receive light or suspended sentences. The Czech National Focal Point for Drugs and Drug Addiction is the main body responsible for collecting, analyzing and interpreting data on drug use. A four-year governmental action plan "The National Drug Policy Strategy for 2005-2009" is evaluated internally every year and appropriate measures are taken when viewed necessary. ¶3. According to a pan-European (EU) study from 2005, the rate of marijuana use in the Czech Republic is the highest in Europe, with 22.1 percent of young adults having used the drug within the previous twelve months. Czechs were also the most likely to have ever used marijuana in their lifetimes. Consumption of ecstasy and 
pervitine was among the highest in the EU. ¶4. The Czech statistical office estimates Czechs spend 6.5 billion crowns ($297 million) and consume about 15 tons of drugs annually. Czechs consume 10 tons of marijuana, 1.2 million ecstasy tablets, over 250,000 LSD trips, 3.5 tons of pervitine and 2.2 tons of heroin annually as well. ¶5. III. Country Actions Against Drugs in 2006 Policy Initiatives. Drug policy remains a contentious issue in Czech domestic politics. The US-DEU political party, one of five members of the former government, oriented its election campaign towards young people and promised to promote the legalization of marijuana. US-DEU did poorly in the June 2006 national elections and won no seats in Parliament. The stalemate following the deadlocked June PRAGUE 00001405 002 OF 007 elections has lead to the failure of the government to address drug-related issues, including legalization proposals. The Criminal Code passed in 2005, draws a sharp distinction between the use of "soft" drugs, such as marijuana and ecstasy, and "hard" drugs, such as heroin and pervitine. Although a measure that would have decriminalized marijuana failed in Parliament earlier in 2005, the Criminal Code fully envisions a markedly more liberal approach to soft drugs in order to focus resources against drugs considered more damaging. ¶6. The current National Drug Strategy focuses on enforcement operations against organized criminal enterprises and efforts to reduce addiction and their associated health risks. One of the top priorities of the government in 2005 and 2006 was the establishment of a system of certification for drug prevention programs. The government also focused efforts on improving laws on asset forfeiture and seizure of illicit proceeds, as well as on controlling pills containing chemical precursors. The National Drug Headquarters is the main organization within the country responsible for major drug investigations. The drug units of the Czech Customs Service are also responsible for tracking drugs and can use the same operational tools as the police. Since 2005, they are also responsible for monitoring the Czech Republic's modest licit poppy crop, a function previously performed by the Ministry of Agriculture. ¶7. In 2005, the Czech Customs Service established mobile groups that control suspicious trucks on highways in the country. Given the Czechs accession into the EU and a loosening of the borders this is of growing importance. Czech Customs is also responsible for the control of highway tickets and the trafficking of illegal cigarettes. As a result of these other tasks drug trafficking is not their highest priority. ¶8. The NDH cooperates regularly with the Custom Services based on a cooperation agreement signed between the Ministries of Interior and Finance. In 2006, the Customs Service placed a liaison officer at the Police Presidium to strengthen and streamline cooperation. The fight against drug smuggling was made more difficult by the Czech Republic's entry into the EU and more open borders. In November 2005, the Customs Service received on-line access to all police information systems. Discussions continue as to whether the NDH and the customs drug unit should be joined under one institution due to overlapping responsibilities. The National Drug Headquarters cooperates regularly with the Czech Financial Police. NDH is responsible for the supervision of regional police offices in investing drug cases. Regional Offices have also appointed representatives for cooperation and coordination with local NGOs but the level of cooperation still largely depends on personal contacts. ¶9. Accomplishments/Law Enforcement. In 2005, the National Drug Headquarters, together with the Customs Service, seized 36.3 kilograms of heroin; 19,010 ecstasy pills; 5.3 kilograms of methamphetamine, 103 kilograms of marijuana, 1,780 cannabis plants, PRAGUE 00001405 003 OF 007 4.6 kilograms of hashish, and 10 kilograms of cocaine. They also found 261 methamphetamine laboratories. During the first nine months of 2006, the National Police together with the Customs Service, seized 15.3 kilograms of heroin; 12,416 ecstasy pills; 4.6 kilograms of methamphetamine, 61 kilograms of marijuana, 1,550 cannabis plants, only 0.4 kilograms of hashish, and 1.4 kilograms of cocaine. In the same period of time, 278 methamphetamine and 11 marijuana laboratories were found which is an increase compared to statistics for all of 2005. The National Drug Headquarters also scored some significant successes in 2006. ¶10. In January, after several years of intensive international cooperation with Venezuela, the Netherlands, Slovakia and Netherlands Antilles the Czech police arrested two Czechs and one Slovak who ran a large drug smuggling ring importing cocaine from South America to Europe. During the investigation, the Dutch police in cooperation with NDH arrested several Czech and German drug mules carrying nearly 200 kilograms of cocaine. It is not clear whether the cocaine's end destination was the Czech Republic. The seized cocaine had a street value of 110 billion crowns ($5.2 billion). In May, the police arrested three Israelis who ran an ecstasy drug trafficking ring in the Czech Republic. The group built its distribution network in Prague's center, selling ecstasy primarily in clubs and discos and were successful in a monopolizing the ecstasy trade in downtown Prague. During the bust, police found over 4,200 ecstasy pills, with an estimated street value of one million crowns ($50,000) as well as other drugs. ¶11. During the summer, six Czechs were arrested for large-scale production and distribution of pervitine. These individuals worked with conspirators from the former Yugoslavia in obtaining the necessary ephedrine to make pervitine and organized distribution within the Czech Republic and also exported the highest quality pervitine called "crystal" to Germany. The price of crystal in Germany is about 2,000 crowns ($90). Czech police continue to investigate the case. ¶12. According to police statistics for the first half of 2006, 1,261 people were investigated for drug related crimes. 1,230 suspects were investigated for unauthorized production and possession of narcotics and psychotropic substances and "poisons". Police investigated 104 individuals for drug possession for personal use, and 31 others were investigated for spreading addiction. According to the statistics provided by the Ministry of Justice for the same period of time, the state prosecuted 1,438 suspects and indicted 1,270 others for drug related crimes. 116 were indicted for drug possession for personal use and 50 were indicted for spreading addiction. Courts convicted 747 individuals for drug related offenses, including 29 convictions for drug possession for personal use and 7 for spreading addiction. ¶13. Statistics for first six months of 2006 show that most convicted criminals (54 percent) received conditional sentences for drug related crimes and only one-third of convicted criminals were actually sentenced to serve time in prison. Only 15 percent PRAGUE 00001405 004 OF 007 of this latter group received sentences higher than 5 years in prison. Compared to 2005, this is a slight improvement since at that time only 13 percent of prison sentences were higher than 5 years. The majority of those sentenced to serve time in prison (71 percent) received sentences ranging from 1 to 5 years. The practice of adding on penalties such fines, asset forfeiture or public service was similar to previous years. ¶14. Corruption. As a matter of government policy, the Czech government does not encourage or facilitate illicit production or distribution of narcotic or psychotropic drugs or other controlled substances, or the laundering of proceeds from illegal drug transactions. A current provision in Czech law permits possession of a small amount of certain drugs, but fails to define a "small amount". Leaving this determination to the individual police officer offers possibilities for corruption and malfeasance. To avoid any possible confusion and to eliminate possibilities for corruption, the Police President and Supreme Public Prosecutor issued internal regulations designed to clarify elements of the drug law that some feared allowed policemen too much discretion in whether to pursue drug cases. In 2004 and 2005 a few police officers were arrested for drug-related crimes including 4 cases of production and distribution of drugs and 1 case of trafficking. In August, one policeman was convicted of selling drugs in Northern Bohemia. He only received a 1 year suspended sentence but the prosecutor has appealed the verdict to the higher court in an attempt to stiffen the penalty. The Czech Republic signed the UN Convention against Corruption in 2005 but has not yet ratified it. ¶15. Agreements and Treaties. The Czech Republic is a party to the 1988 UN Drug Convention and the World Customs Organization's Convention on Mutual Administrative Assistance for the Prevention Investigation and Repression of Customs Offenses. A 1925 extradition treaty, as supplemented in 1935, remains in force between the United States and the Czech Republic. The U.S. and Czech representatives signed supplements to the U.S. - EU extradition treaty in May 2006. The Czech Republic has signed, but has not yet ratified, the UN Convention against Transnational Organized Crime. Drug Flow/Transit. Whereas in past years heroin trafficking in the country was solely under the control of ethnic Albanian groups that import their product from Turkey, according to the Czech counternarcotics squad this is no longer the case. Due to several major successes against these groups in the past, they are now experiencing financial insolvency and are having difficulties importing large amounts of heroin. However, Turks living in the Czech Republic have better relations with suppliers in Turkey and have more cash available for large heroin purchases from Turkey. Heroin is transported in the Czech Republic primarily using modified vehicles. Cocaine is not as spread as other drugs but its expansion PRAGUE 00001405 005 OF 007 is increasing also thanks to the growing purchasing power of Czech citizens. Cocaine is frequently imported by Nigerians or Czechs through Western Europe from Brazil or Venezuela. Mail parcels, Czech couriers or "swallowers" are the most common ways of import. Pervitine is a synthetic methamphetamine primarily produced in homes and laboratories. Its production is growing thanks to growing local demand and growing export possibilities to Germany, Austria and Slovakia. Besides Czech citizens, who are still the main producers of the drug, Vietnamese and Albanians residing in the Czech Republic and Germans are also major pervitine traffickers. The Vietnamese control mainly the border areas, selling drugs in market places where they collect orders from German customers and use Czech and German couriers to satisfy demand in the region. Pervitine is produced from imported ephedrine from the Balkans or from locally available flu pills. ¶16. Imported ecstasy tablets remain a favorite drug of the "dance scene." Ecstasy is trafficked primarily from the Netherlands and Belgium. Ecstasy tablets are smuggled into the country by local couriers, mainly hired in localities with high unemployment rates like Northern Bohemia and Northern Moravia. These couriers travel into the country on trains, buses or planes within the EU. There is also some trafficking organized by Nigerians. A trend toward larger-scale growth of cannabis plants in hydrophonic laboratories continued in 2006, along with a similar growth in the potency of the drug produced (up to 20 percent THC). Consumption of cannabis is mainly covered by local production, but is also imported from Holland in small amounts and to a lesser extent from Spain or India. Most smugglers are Czechs or Dutch citizens, but local Vietnamese have also become involved in marijuana trafficking. Salvia Divinorum is a legal drug that is more common among young experimenters. A plant of salvia is relatively easy to buy on internet for about 500 crowns ($25). Toluene, a solvent, is commonly inhaled by poor young segments of the population, primarily in the north of the country. ¶17. Domestic Programs (Demand Reduction). The main components of Czech demand reduction plans include primary prevention along with treatment and re-socialization of abusers. This strategy entails a variety of programs that include school-based prevention education, drug treatment and needle exchange programs and partnerships with local NGOs. Within the context of the National Strategy, the government has established benchmarks for success. Some of these include stabilizing or reducing the number of "problem" ("hard") drug users, reversing the trend in the Czech Republic toward rising recreational and experimental drug use, and ensuring the availability of treatment centers and social services. In May, the government released a study on drug addition treatment programs that stressed the importance of services provided by telephone and the internet. As a result, the Czech government produced an online "Map of Help" including contact information for PRAGUE 00001405 006 OF 007 all drug treatment programs in the Czech Republic. ¶18. To provide high-level treatment services to clients all over the country, the National Strategy set standards that are required from all drug treatment providers. In connection with this effort, the government began a certification process in 2005 for treatment facilities. All providers of secondary and tertiary prevention programs that applied for governmental funding in 2006 were required to have received prior government certification. Certification of primary prevention programs under the administration of the Ministry of Education was delayed although all such providers must obtain certification prior to the end of 2008. ¶19. Since January, mandatory drug testing of individuals suspected of traffic violations is now required by law but is facing problems due to a lack of resources. Traffic police do not have enough test kits and the law allows police only to test the driver's saliva as opposed to sweat which is more commonly used in many other European countries. ¶20. IV. U.S. Policy Initiatives and Programs Bilateral Cooperation. The U.S. covers Czech Republic drug issues through the DEA office in Warsaw, which maintained a cooperative relationship with Czech counterparts. The State Department has not given grants for counternarcotics education recently. The Road Ahead. The U.S. and the Czech Republic will continue their active cooperation as the Czech Republic implements its National Drug Policy Strategy document for 2005-2009. ¶21. VI. Chemical Control The Czech Republic no longer has domestic ephedrine production. One company produces the precursor chemical lysergic acid. IVEX (former Galena a.s. Ostrava) produces ergometrine and ergotamine, as well as a small amount of lysergic acid. IVEX is a member of the "Association of Chemical producers of the Czech Republic." The INC company, which used to produce ephedrine, closed its production in 2004, and in 2005 sold its remaining stock primarily to the U.S. company Novus which purchased about 30 tons. Additionally, South African companies purchased about 3 tons and Argentinean and Brazilian companies bought several tons as well. Pharmac imports small amounts of ephedrine from India for the production of pills fighting Parkinson disease. ¶22. Chemical control in the Czech Republic is regulated under the law on Addictive Substances No. 167/1998Col. The latest amendment from March 2006, No 74/2006 Col, fully harmonized Czech law with EU requirements. Export as well as import licenses from third countries are now required for precursors and essential chemicals since July ¶2004. ¶23. The Inspectorate of Narcotic and Psychotropic Substances of the Czech Ministry of Health monitors production and distribution of precursor chemicals and issues the necessary export as well as import licenses. The State Institute for Drug Control PRAGUE 00001405 007 OF 007 together with regional government offices control and monitor distribution to pharmacies and sale of substances and pills containing precursors (ephedrine and egrotamine) since many of them are available without special prescription. Over the counter flu medicine contains less than 30 mg of ephedrine or pseudoephedrine. Medicines containing more ephedrine or pseudoephedrine require a prescription from a doctor. Rohypnol and subutex (buprenorphin) are also only available by prescription which enables health authorities to better control selling and prescribing of these pills. ¶24. Specially trained representatives of the National Drug Headquarters will begin assisting in controlling pharmaceutical sales. However, the government is still finalizing the accreditation system for policemen. The National Drug Headquarters is responsible for the detection of the abuse of precursors. ¶25. Cooperation among representatives of the Ministry of Health, Ministry of Industry and Trade, Police and Customs is very good. The Police, Customs Service and chemical and pharmaceutical trade associations have signed a "Memorandum of Understanding" to increase communication regarding suspicious precursor sales and purchases and has resulted in several investigations. Pharmacies and chemical companies are required by the MOU to report to police or custom authorities any suspicious purchases or sale of precursors. ¶26. The Czech Customs Service gained new responsibilities such as monitoring transports and imports and exports of precursors to and from third countries as a result of a 2004 reorganization. They are also responsible for monitoring growth of poppy seeds and cannabis which contains less than 2 percent THC. GRABER