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Viewing cable 06SINGAPORE3654, SINGAPORE'S RESPONSES TO CMEA QUESTIONS

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Reference ID Created Released Classification Origin
06SINGAPORE3654 2006-11-21 04:56 2011-08-25 00:00 UNCLASSIFIED Embassy Singapore
VZCZCXYZ0000
RR RUEHWEB

DE RUEHGP #3654/01 3250456
ZNR UUUUU ZZH
R 210456Z NOV 06
FM AMEMBASSY SINGAPORE
TO RUEHC/SECSTATE WASHDC 1921
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEAWJA/DEPT OF JUSTICE WASHDC
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