Drug Enforcement Administration

Methamphetamine And Chemical Control

Joseph T. RannazzisiDeputy Chief

Office of Enforcement Operations

65587 131 30

18578

1884

259 161

312

240 853

806

620 16

404

2181320 521

224 166

35

495175

Source: National Clandestine Laboratory DatabaseTotal: 13,540 / 47 States Reporting

Dates: 01/01/01 to 12/31/01

Totals are based on data reported to EPIC and entered into the CLSS as of 04/13/05

89

1479154

45

208

59

17

103

85

122

1032

17

AK 14HI 3

MA 1RI 1NJ 1 MD 2ME 2NH 2

5

8

All Meth Clandestine Laboratory Incidents(Labs, Dumpsites, Chem/Glass/Equipment)

Calendar Year 2001

42

167

1337260

765128 120

228 588

658

461 122

806

278210951068

292

270386261

1421574

294

Source: National Clandestine Laboratory DatabaseTotal: 17,388 / 47 States Reporting

Dates: 01/01/04 to 12/31/04

Total of All Meth Clandestine Laboratory IncidentsIncluding Labs, Dumpsites, Chem/Glass/Equipment

Calendar Year 2004

Totals are based on data reported to EPIC and entered into the CLSS as of 11/21/05

170

954 7276

232

AK 66HI 13GUAM 1

DC 1DE 3MA 1MD 1ME 3NH 2VT 1

280

318

79

470105

31

7275

167

4821

Pseudoephedrine is the primary Pseudoephedrine is the primary precursor found in clandestine precursor found in clandestine

methamphetamine labsmethamphetamine labs

Small toxic labs (STLs) accountfor the majorityof all labs seized.

Super labsproduce > 10 lbper cycle and accountfor the majority ofmethamphetamineproduced.

Super Lab SeizuresSuper Lab Seizures

20022002 144 US (130 CA)144 US (130 CA)20032003 137 US (132 CA)137 US (132 CA)20042004 55 US (30 CA)55 US (30 CA)

62% reduction since 2002.62% reduction since 2002.

020406080

100120140160

2002 2003 2004Per EPIC August 22, 2005

Methamphetamine TrendsMethamphetamine Trends

Methamphetamine Production Shifting to Methamphetamine Production Shifting to MexicoMexico

1.1. Canadian border seizure events involving Canadian border seizure events involving ephedrine and pseudoephedrine have ephedrine and pseudoephedrine have dramatically declined.dramatically declined.

2.2. Seizures of methamphetamine along the Seizures of methamphetamine along the SW border of the U.S. and Mexico have SW border of the U.S. and Mexico have increased from 1,170 kg in 2001 to 2,299 increased from 1,170 kg in 2001 to 2,299 kg in 2004.*kg in 2004.*

3.3. Purity of SW border seizures have Purity of SW border seizures have increased from 16.9% (2001) to greater increased from 16.9% (2001) to greater than 70% (2004)than 70% (2004)

*Per EPIC, August 29, 2005

Shifting Trends in TraffickingShifting Trends in Trafficking

Primarily domestic sources of precursor for domestic Primarily domestic sources of precursor for domestic methamphetamine production 1980 methamphetamine production 1980 -- 19991999

To Canada as source of pseudoephedrine tabletsTo Canada as source of pseudoephedrine tablets1999 1999 --20022002

To Mexico as source for pseudoephedrine and To Mexico as source for pseudoephedrine and methamphetamine productionmethamphetamine production2002 2002 -- presentpresent

Shifting TrendsShifting Trends

Although methamphetamine production has Although methamphetamine production has moved south of the border and the Mexican moved south of the border and the Mexican Organizations seem to be increasing production Organizations seem to be increasing production output, there was still over 17,000 domestic labs output, there was still over 17,000 domestic labs in 2003 and 2004in 2003 and 2004

DEA /GOM EffortsDEA /GOM Efforts

MexicoMexico1.1. DEA has trained 79 GOM officials (17 COFEPRIS 62 DEA has trained 79 GOM officials (17 COFEPRIS 62

deputized state) to inspect Mexican importers/distributors.deputized state) to inspect Mexican importers/distributors.2.2. DEA/DOJ has trained approximately 80 AFI agents and 19 DEA/DOJ has trained approximately 80 AFI agents and 19

Prosecutors to investigate and prosecute clandestine laboratory Prosecutors to investigate and prosecute clandestine laboratory and precursor cases.and precursor cases.

3.3. GOM has estimated the licit need of PSE between 60 and 130 GOM has estimated the licit need of PSE between 60 and 130 MTs is in the process of imposing stricter import quotas for MTs is in the process of imposing stricter import quotas for PSE.PSE.

4.4. DEA brokered cooperative agreement with Mexico, Panama DEA brokered cooperative agreement with Mexico, Panama and Hong Kong to require import permit or preand Hong Kong to require import permit or pre--shipment shipment notification documentation.notification documentation.

Shift to Pharmaceutical PreparationsShift to Pharmaceutical Preparations

MEXICO

USA

HONG KONG

PANAMA

Hong Kong to Mexico via the U.S. and PanamaMarch and April 2003 – US & Panamanian Customs seized 4 shipments totaling 19 million PSE tablets destined to fictitious companies in Mexico..

Domestic ImportersDomestic Importers

Notification for all proposed imports or exports Notification for all proposed imports or exports of listed chemicals must be provided to DEA 15 of listed chemicals must be provided to DEA 15 days in advance. DEA reviews action and either days in advance. DEA reviews action and either approves or denies.approves or denies.Under 21 USC 971, DEA can deny an import if Under 21 USC 971, DEA can deny an import if we can show that a downstream customer is we can show that a downstream customer is connected to the diversion of these materials.connected to the diversion of these materials.Letter of No Objection for all bulk and single Letter of No Objection for all bulk and single entity pharmaceutical preps.entity pharmaceutical preps.

Manufacturers, Wholesalers and Manufacturers, Wholesalers and DistributorsDistributors

Registrants since 1996Registrants since 1996Periodic inspectionsPeriodic inspectionsOTSC against registrant/applicant if OTSC against registrant/applicant if investigation/inspection has determined that the investigation/inspection has determined that the activities related to the chemicals are not in the activities related to the chemicals are not in the public interest public interest

DEA Administrative ActionsDEA Administrative ActionsAttacking the Gray MarketAttacking the Gray Market

152 Registrations 152 Registrations Surrendered for CauseSurrendered for Cause155 OTSC Issued155 OTSC Issued1,403 Out of business1,403 Out of businessAvg. 400 new Avg. 400 new applications per yearapplications per yearRegistrants in declineRegistrants in decline

3,568 in 20003,568 in 20003,344 in 20023,344 in 20022,891 in 20052,891 in 2005

PSE RetailersPSE Retailers

No registration requiredNo registration requiredRecords maintained only for sales above 9 Gram Records maintained only for sales above 9 Gram threshold (approximately 367 30mg tabs)threshold (approximately 367 30mg tabs)Safe harbor provisionSafe harbor provision

PSE Producing CountriesPSE Producing Countries

India, China, Germany, Czech Republic, U.S.India, China, Germany, Czech Republic, U.S.Project Prism Project Prism –– UN Sponsored initiative aimed at UN Sponsored initiative aimed at assisting governments in developing and implementing assisting governments in developing and implementing operating procedures in the control and monitoring of operating procedures in the control and monitoring of trade in precursorstrade in precursorsBrokers/exporters of PSE/EPH are located Brokers/exporters of PSE/EPH are located throughout Europe and Asia.throughout Europe and Asia.1988 Vienna Convention1988 Vienna ConventionWorldWorld--wide production figureswide production figuresProducers meetingProducers meetingU.S. needs assessmentU.S. needs assessment