SINGAPORE'S RESPONSES TO CMEA QUESTIONS

UNCLAS SINGAPORE 003654 SIPDIS STATE FOR INL JUSTICE FOR OIA AND ARMLS TREASURY FOR FINCEN DEA FOR OILS AND OFFICE OF DIVERSION CONTROL CIA FOR CNC SIPDIS E.O. 12958: N/A TAGS: KCRM SNAR ECON ETRD PREL SN SUBJECT: SINGAPORE'S RESPONSES TO CMEA QUESTIONS REF: STATE 155254 ¶1. Post provides the following GOS responses to INL's questions for use in preparing the Combat Methamphetamine Epidemic Act (CMEA) report. Begin questions and responses: ¶2. Q: WE WOULD LIKE TO VERIFY IF OUR DATA ON SINGAPORE'S TRADE IN THE CHEMICALS EPHEDRINE AND PSEUDOEPHEDRINE FROM 2000-2005 ARE ACCURATE. IF NOT, COULD YOU PROVIDE ACCURATE FIGURES AND IDENTIFY THEIR SOURCE? SINGAPORE IS A SIGNIFICANT TRADER (EXPORT AND IMPORTER) IN EPHEDRINE, BUT APPEARS TO BE A LARGE NET IMPORTER OF PSEUDOEPHEDRINE. WHAT ARE THE REASONS FOR THIS PATTERN? A: Please refer to the table below for the figures on the import and export of the chemicals ephedrine and pseudoephedrine between year 2000 and 2005. Ephedrine (kg) Pseudoephedrine (kg) -------------- -------------- Year Exports Imports Exports Imports 2005 16,350 19,875 32,705 39,830 2004 12,555 14,529 21,595 24,121 2003 13,685 15,191 18,672 22,506 2002 12,630 13,705 12,185 14,025 2001 11,650 13,550 16,305 20,925 2000 9,675 12,400 5,904 7,500 The import and export figures are based on Central Narcotics Bureau's (CNB) records of trade declarations. The chemicals ephedrine and pseudoephedrine are mostly imported into Singapore for re-export. Singapore's imports of ephedrine and pseudoephedrine are for the manufacture of pharmaceutical preparations. ¶3. Q: DOES SINGAPORE HAVE ANY DOMESTIC PRODUCTION OF EITHER EPHEDRINE OR PSEUDOEPHEDRINE, OR PHARMACEUTICAL PREPARATIONS THAT CONTAIN THESE SUBSTANCES? IF SO, COULD YOU PROVIDE FIGURES CONCERNING HOW MUCH? A: Singapore does not have any domestic production of either ephedrine or pseudoephedrine. However, there are a few pharmaceutical companies that manufacture cough preparations containing pseudoephedrine. ¶4. Q: WE WOULD LIKE TO HAVE, IF AVAILABLE, YOUR FIGURES ON THE ANNUAL COMPLETELY LICIT REQUIREMENTS FOR EPHEDRINE AND PSEUDOEPHEDRINE, AND PHARMACEUTICAL PREPARATIONS THAT CONTAIN THESE SUBSTANCES IN SINGAPORE'S DOMESTIC MARKET. APART FROM THE PHARMACEUTICAL INDUSTRY, ARE THERE ANY OTHER INDUSTRIES WHICH MAKE USE OF THESE CHEMICALS, AND FOR WHAT PURPOSE? A: We provide annual licit transactions of controlled substances including the two chemicals to the International Narcotics Control Board (INCB). Apart from pharmaceutical preparations, which are under the Health Sciences Authority's (HSA) purview, these two chemicals are mainly imported for re-export purpose. We do not [yet] have the annual figure for 2006 for completely licit requirements for ephedrine and pseudoephedrine. ¶5. Q: COULD YOU SHARE WITH US AS MANY DETAILS AS POSSIBLE OF ANY CASES OF DIVERSION OF THESE CHEMICALS (EPHEDRINE AND/OR PSEUDOEPHEDRINE) FROM LICIT TO ILLICIT USES WHICH HAVE COME TO YOUR ATTENTION? A: We have not encountered any diversion of ephedrine and/or pseudoephedrine from licit to illicit uses in Singapore. ¶6. Q: WHAT IS SINGAPORE'S SYSTEM FOR ASSURING THAT EPHEDRINE AND/OR PSEUDOEPHEDRINE, WHICH IS MANUFACTURED OR IMPORTED INTO SINGAPORE FOR LICIT USE, IS NOT DIVERTED FOR ILLICIT USES? PLEASE EXPLAIN THE METHODS SINGAPORE USES Q LICENSING, INSPECTION/INVENTORY CHECKS ETC. Q AND THE AGENCIES INVOLVED. A: Under Singapore's Import & Export regulations, a trader has to apply to Singapore Customs for a permit using the TradeNet system for the import or export of any goods. The Central Narcotics Bureau (CNB) works with Singapore Customs to route all precursor transactions through the TradeNet system to CNB for approval. TradeNet is an online system for trade declaration. In addition, traders must have a valid license issued by the Centre for Drug Administration (CDA) of the HSA in order to import ephedrine and pseudoephedrine. HSA administers the Poisons Act and Rules, which regulates the importation, possession, manufacture, compounding, storage, transport and sale of poisons which include ephedrine and pseudoephedrine. Dealers of all medicinal products containing ephedrine and pseudoephedrine are subject to product registration and dealer's licensing respectively. Traders are required to submit their annual consumption and usage of controlled chemicals including the two chemicals to CNB. CNB conducts rigorous site visits on companies dealing with controlled chemicals so as to increase awareness of parties involved in the import and export of listed precursors. During these visits, CNB officers inspect records, labeling of consignments and storage arrangements. CNB also conducts random physical stock checks when necessary. In addition, CNB has been promoting industry awareness through site visits to companies, intermediaries and end users of controlled chemicals. These visits provide an opportunity for CNB to disseminate information and guidelines on the legislative and administrative requirements. At the same time, CNB informs them of the various methods of diversion and the importance of knowing who their customers are. Traders are also encouraged to notify CNB of any suspicious transactions. ¶7. Q: PLEASE DESCRIBE SINGAPORE'S SYSTEM, IF ANY, OF MONITORING ITS INTERNATIONAL TRADE IN EPHEDRINE AND PSEUDOEPHEDRINE TO GUARD AGAINST DIVERSION TO ILLICIT USES, I.E., EXPORT NOTIFICATION TO PROSPECTIVE IMPORTING COUNTRIES. DOES SINGAPORE'S SYSTEM INVOLVE CLOSE LIAISON WITH INDUSTRY, EXPORTERS/IMPORTERS, AND OTHER PRIVATE SECTOR ACTORS INVOLVED IN THE TRADE? A: CNB will monitor and track transactions of controlled chemicals (including the two substances) for licit trade at both international and domestic levels, and to identify end users. The approach that CNB has adopted to control the import or export of controlled chemicals is consistent with the various counter-measures listed in the United Nations Convention Against Illicit Traffic in Narcotics Drugs and Psychotropic Substances. For Import Control, CNB will be informed of an importation through a Pre-Export Notification (PEN) issued by the exporting country in accordance with the UN Convention or a trade declaration made by a local trader as required under our laws. We will send a No Objection Letter to the exporting country and issue an import authorization to the importer after completing the import enquiries. These enquiries include checks on the importing company and its office bearers to determine the purpose and intended use of the chemicals and to establish the identity of the ultimate consignee, if any. Each import authorization is valid for one consignment only as CNB does not provide blanket approval. Upon CNB's approval, the transaction will be routed to Singapore Customs for clearance which involves physical examinations. For Export Control, upon receiving a declaration made for the exportation of controlled chemicals, CNB will issue a PEN to its counterparts in the importing country after checks are completed. All transshipment cases are treated as an import followed by an export and hence the same control for import and export will apply. CNB conducts rigorous site visits on companies dealing with controlled chemicals so as to increase the awareness of parties involved in the import and export of listed precursors. During these visits, CNB officers inspect records, labeling of consignments and storage arrangements. CNB also conducts random physical stock checks when necessary. CNB visits at least 300 companies a year (or 25 companies a month). In addition, CNB has been promoting industry awareness through site visits to companies, intermediaries and end users of controlled chemicals. These visits provide an opportunity for CNB to disseminate information and guidelines on the legislative and administrative requirements. At the same time, CNB informs them of the various methods of diversion and the importance of knowing who their customers are. Traders are also encouraged to notify CNB of any suspicious transactions. ¶8. Q: ARE REGULAR AND/OR SURPRISE INSPECTIONS CONDUCTED ON COMPANIES THAT IMPORT OR EXPORT THESE SUBSTANCE? A: Yes, CNB conducts rigorous site visits, including surprise visits to companies dealing with controlled chemicals including these chemicals. In addition, HSA also conducts inspection of premises for its suitability for the storage of poisons and other legal requirements defined in the Poisons Act and Rules before its approval and periodically after approval. However, there are no specific requirements for dealings in ephedrine and pseudoephedrine. ¶9. Q: WHAT ARE THE PENALTIES FOR COMPANIES THAT ARE NOT FOLLOWING THE REQUIRED REPORTING AND TRACKING PROCESSES? A: Section 10B of the Misuse of Drugs Act requires the traders to maintain records for all transactions involving controlled substances for a period of 2 years. They have to inform CNB concerning storage of precursor chemicals. They also have to ensure that all containers of precursor chemicals must be properly marked and labeled. Failure to comply with these requirements carries a sentence of up to 3 years imprisonment, $10,000 fine or both. ¶10. Q: DOES SINGAPORE HAVE CHEMICAL DIVERSION INVESTIGATORS IN THE COUNTRY? DO THEY HAVE THE NECESSARY RESOURCES TO ACCOMPLISH THEIR MISSION? A: The Central Narcotics Bureau is the competent authority for precursor control in Singapore. CNB has set up the Precursor Control Unit (PCU) to monitor the 23 precursor chemicals as listed in Table I and Table II of the 1988 UN Convention. ¶11. Q: DOES SINGAPORE HAVE PROVISIONS IN LAW WHICH WOULD ALLOW ITS AUTHORITIES TO PROMPTLY SEIZE AN EPHEDRINE OR PSEUDOEPHEDRINE SHIPMENT, WHICH SUFFICIENT EVIDENCE INDICATES MIGHT BE AT RISK OF DIVERSION FOR ILLICIT USES? A: Section 10A of the Misuse of Drugs Act (MDA) criminalises the manufacture, supply, possession, import or export of equipment, materials or substances useful for the manufacture of controlled drugs. Sections 26 of the MDA provides for power to search, seize and detain any controlled substances, including ephedrine and pseudoephedrine found in ships, aircraft, vehicles or trains arriving and departing from Singapore. ¶12. Q: DOES SINGAPORE HAVE A SYSTEM IN PLACE WHICH WOULD ALLOW IT TO NOTIFY A DESTINATION COUNTRY AND/OR INTERNATIONAL AUTHORITIES SUCH AS THE INTERNATIONAL NARCOTICS CONTROL BOARD (INCB) IN VIENNA THAT A GIVEN SHIPMENT OF EPHEDRINE OR PSEUDOEPHEDRINE SEEMED TO BE IN DANGER OF DIVERSION, OR HAD ALREADY EFFECTIVELY BEEN DIVERTED? A: Yes, CNB will notify the importing country of all consignments due for its ports using Pre Export Notification (PEN). CNB is in the process of moving to an on-line version of PEN. ¶13. Q: DOES SINGAPORE HAVE LAWS/REGULATIONS REQUIRING THAT, WHEN DUAL-USE CHEMICALS LIKE EPHEDRINE OR PSEUDOEPHEDRINE ARE IMPORTED OR EXPORTED, THEY MUST BE LABELED PROPERLY WITH THE IDENTIFYING INFORMATION OF ALL THOSE INVOLVED IN THE TRANSACTION? A: Yes, Singapore's regulations require that any person who has imported or who intends to export any controlled substance, not being a controlled substance in transit, shall keep or store the controlled substance in a place approved in writing by the Director of CNB. The container in which any controlled substance is kept or stored shall be clearly marked on the outside with the name of the controlled substance and shall not contain any substance other than the substance so marked. ¶14. Q: ARE SUCH DOCUMENTS REQUIRED TO BE FILED FOR AT LEAST TWO YEARS SO THAT, IF NECESSARY THEY COULD BE RECOVERED FOR USE IN A LEGAL ACTION ARISING FROM A GIVEN SHIPMENT? WOULD SINGAPORE PERMIT LEGAL AUTHORITIES OF ITS FOREIGN TRADING PARTNERS FOR THESE CHEMICALS TO REQUEST COPIES OF SUCH DOCUMENTS FOR USE AS EVIDENCE IN THEIR DOMESTIC COURTS? A: Yes, the documents are required to be kept for at least two years. Singapore could permit such request for assistance under the framework of the Mutual Assistance in Criminal Matters Act (MACMA). ¶15. Q: DOES SINGAPORE REPORT EACH YEAR TO THE INTERNATIONAL NARCOTICS CONTROL BOARD (INCB) IN VIENNA THE AMOUNTS OF EPHEDRINE OR PSEUDOEPHEDRINE SEIZED DURING THAT YEAR AND OTHER RELEVANT INFORMATION DESIGNED TO SUPPORT INTERNATIONAL COOPERATION TO PREVENT DIVERSION OF THESE TWO PRECURSOR CHEMICALS? A: Singapore submits information on substances frequently used in the illicit manufacture of narcotic drugs and psychotropic substances to INCB as required under the 1988 UN Convention. However, we have not encountered any seizure or diversion of precursor chemicals (including ephedrine and pseudoephedrine). HERBOLD