THE ANDEAN COUNCIL OF MINISTERS OF FOREIGN AFFAIRS, IN AN EXTENDED MEETING WITH THE PRINCIPAL REPRESENTATIVES TO THE ANDEAN COMMUNITY COMMISSION,

HAVING REVIEWED: The first paragraph b) in Article 3 and Article 16 of the Cartagena Agreement; Articles 6 and 12 of the Regulations of the Andean Council of Foreign Affairs Ministers; and Decisions 477 (International Customs Traffic, in place of Decision 327), 478 (Mutual Assistance and Cooperation between Customs Authorities of Andean Community Member Countries), 505 (Andean Cooperation Plan for Fighting Against Illegal Drugs and Associated Crimes), 562 (Directives for the preparation, adoption and application of Technical Regulations in Andean Community Member Countries and at Community level) and 574 (Andean Customs Control System); and,

WHEREAS:

The Andean Community is determined to reinforce the application of the control and surveillance procedures currently being used by its Member Countries, concerning the traffic of chemical substances which are likely to be used for the production of illicit drugs, cocaine and heroin in particular;

In an effort to protect the Community�s customs territory against eventual diversion of chemical substance imports or exports for use in the manufacture of illicit drugs, it is essential to establish in the Community an early warning mechanism on the export of such chemical substances between Member Countries, as a complement to any mechanisms in place between each Member Country and other countries;

While the efforts individually made by the Member Countries to control and monitor the chemical substances included in Tables I and II of the 1988 United Nations Convention Against the Illicit Traffic in Narcotic Drugs and Psychotropic Substances, are recognized, there is a need to prepare a basic harmonized list of controlled chemical substances for Community use, which can be gradually updated based on the experience gathered in the Andean Community and the possibilities of effective international surveillance;

The Member Countries that have signed the 1988 United Nations Convention Against the Illicit Traffic in Narcotic Drugs and Psychotropic Substances, abide by the recommendations of the Model Regulations for the Control of Chemical Substances Used in the Illicit Manufacture of Narcotic Drugs and Psychotropic Substances issued by the Organization of American States (CICAD/OEA); and the United Nations Manual for the Transport of Hazardous Goods;

The Member Countries, in the Third Meeting of the Executive Committee of the Andean Cooperation Plan for Fighting against Illegal Drugs and Associated Crimes, resolved to carry out mutual cooperation actions to enhance the parameters applicable to the control and surveillance of import, export, transport and any other type of transactions at the Andean level and from other countries, of chemical substances which could be possibly used in the production of cocaine and heroin;

Abiding by the recommendation of the Third Meeting of the Executive Committee of the Andean Cooperation Plan for Fighting against Illegal Drugs and Associated Crimes, the General Secretariat has submitted Proposal 125/Rev. 1 on the adoption of �Andean Regulations for the Control of Chemical Substances Used in the Illicit Manufacture of Narcotic Drugs and Psychotropic Substances�;

The representatives to the Andean Community Commission have reviewed the said Proposal and have issued a favorable opinion for adoption thereof on the terms set forth in Proposal 125/Rev. 1;

DECIDES:

CHAPTER I

PURPOSE AND SCOPE OF APPLICATION

Article 1.- The purpose of this Regulation is to enhance control and surveillance of import, export, transport and any other type of transactions at the Andean level and from other countries, of the chemical substances included in the Basic Harmonized List for Community Use, identified in

annex Annex I hereof, which are frequently used in the illicit production, manufacture, preparation or extraction of narcotic drugs and psychotropic substances, cocaine and heroin in particular.

Article 2.- This Regulation shall be applicable in the entire territory of the Member Countries. Under no circumstances shall the rules and procedures set forth in this Regulation imply:

Any cases not prescribed by this Regulation shall be governed by the internal regulations of each Member Country with respect to matters related to the monitoring of the chemical substances listed in Annex I hereof, and by the 1988 United Nations Convention Against the Illicit Traffic in Narcotic Drugs and Psychotropic Substances.

CHAPTER II

DEFINITIONS

Article 3.- For the purposes of this Regulation, the following definitions shall apply:

Competent Administrative Authorities: They are the national entities listed in Annex V hereof, with jurisdiction to deal with matters related to licenses, registration, permits and authorizations, or to issue early warning on the import, export, customs traffic or transport, at the Andean level and from other countries, of the controlled chemical substances identified in Annex I hereof.

CAS: Chemical Abstract Service.

Andean Community: Comprised of the sovereign States of Bolivia, Colombia, Ecuador, Peru and Venezuela, and by the organizations and institutions forming part of the Andean Integration System established in the Cartagena Agreement.

Andean Council of Foreign Affairs Ministers: Comprised of the Foreign Affairs Ministers of Andean Community Member Countries, with authority to adopt Decisions which are binding on the Member Countries.

Concentration: Physical magnitude expressing the quantity of a controlled substance, by volume unit.

Dilution: Lowering of the concentration of a controlled substance in water.

Import and Export: Respectively, the legal entry or exit of goods to or from customs facilities, including special customs regimes and free trade zones.

Mix: This is the product into which one or more controlled substances are combined, and which may be used in full or in part, in the extraction and/or refining or synthesis of natural or man-made drugs.

NANDINA: Common Nomenclature of the Andean Community Member Countries.

Controlled Chemical Substances: Chemical substances listed in Annex I and in Tables I and II of the 1988 United Nations Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances, included in Annex II hereof.

Transfer: Transfer of controlled chemical substances, performed under the control of a single customs facility, from one transport or freight unit to another, or to the same unit in a different journey, including unloading to land, with the purpose of continuing to the place of destination.

International Customs Traffic: Customs regime, according to which, the goods are carried under customs control, from a departure customs facility to an arrival customs facility, in the same operation and in the course of which, one or more borders are crossed.

Harmonized System: World Customs Organization�s Basic Harmonized Commodity Description and Coding System .

CHAPTER III

BASIC COMMON LIST OF CONTROLLED CHEMICAL SUBSTANCES

Article 4.- For the purposes of effective monitoring at the Community level, the controlled chemical substances listed in Annex I shall be identified by their generic and chemical names, the CAS Code and their respective numerical codes assigned in the Harmonized System � NANDINA classification.

Article 5.- The Chemical Substances Subcommittee shall study and recommend the application of additional measures required for greater effectiveness of the control exercised over the substances included in Annex I, as well as the physical and chemical parameters required to establish control of any mix, concentration or dilution.

CHAPTER IV

IMPORT, EXPORT, TRAFFIC AND TRANSFER REQUIREMENTS

Article 6.- Anyone importing or exporting controlled chemical substances must present, notwithstanding compliance with requirements pertaining to registration, qualification, license and filing, pursuant to the internal regulations of each Member Country (as well as with the relevant foreign trade regime), any authorizations or permits issued by the Competent Administrative Authorities to import or export and for international traffic under the International Customs Traffic Declaration defined in Decision 477.

Article 7.- Anyone importing or exporting the chemical substances included in Annex I hereof and those listed in the corresponding legislation of each Member Country, shall be subject to a control system consisting of authorizations, licenses and similar procedures to be followed pursuant to the internal regulations of each Member Country.

Article 8.- Applications for authorization and permits must be filed by the importer or exporter with the competent national authority, within the terms stipulated in the internal regulations of each Member Country in the case of imports. An authorization or permit may only be used once and it may not cover future imports of substances of a different nature.

Said authorizations and permits shall expire 180 calendar days from their date of issue. If this term has elapsed without the respective import or export having been performed, a new authorization or permit must be sought.

Applications for a permit or authorization must include the following information:

Article 9.- The Competent Administrative Authorities may deny authorization or permit, or suspend the operation whenever they have well grounded reasons to believe that the substances may be used in the illicit production, manufacture, extraction or preparation of narcotic drugs and psychotropic substances.

Article 10.- International transport of controlled chemical substances within the Andean Community may only be performed using the methods and under the terms set forth by the competent authorities on transport matters, pursuant to the provisions of Article 28 of Decision 477 on Customs Traffic.

CHAPTER V

ADMINISTRATIVE MEASURES FOR REGISTRATION AND INFORMATION

Article 11.- For the purposes hereof, notwithstanding the provisions of domestic legislation, the Competent Administrative Authorities shall keep a record of individuals or legal entities authorized to import or export controlled chemical substances, including the consignees, as well as authorizations granted, rejected or revoked. The Competent Administrative Authorities must keep the confidentiality of any information classified as industrial, business, trade or professional secret.

Article 12.- The records must include the following information about the importer or exporter; and when applicable, about the consignee:

Importers and exporters must report to the Competent Administrative Authorities any changes in the information supplied, within thirty (30) calendar days following the date when the change takes place.

Taking into consideration the recommendations made by the Technical Subcommittee on Chemical Substances, the Member Countries shall centralize the information included in the aforementioned records, on the Andean Community General Secretariat�s web site. The General Secretariat shall set forth the most adequate security procedures for such information, as well as the most suitable mechanisms to facilitate information inquiries by the competent national entities.

The information must be forwarded to the General Secretariat at least once a year, preferably during the month of February.

Article 13.- Anyone importing or exporting controlled chemical substances must keep and maintain records for a period of no less than two (2) years. Such records must be complete, accurate and up to date, concerning each operation associated with those substances, including the following information:

a) Amounts imported and exported, with specific details on:

b) Amounts sold internally;

c) Quantity in stock; and

d) Quantities lost or destroyed and drops caused by shrinkage or other causes such as accidents and theft. The competent authorities must be informed of any losses or unusual or significant amounts missing with respect to chemical substances under their control. Once the information is confirmed, the competent authorities must notify the authorities of the country of origin, destination or transit, as soon as possible, providing them with as much detail as may be available.

Article 14.- Importers and exporters shall keep individual files containing records for each authorized transaction and a record of stock balances of the chemical substances included in the respective permit, for a period equal to that indicated in the preceding article.

Article 15.- The Competent Administrative Authorities may propose to the General Secretariat, the inclusion or exclusion of controlled chemical substances in Annex I of this Regulation. To this effect, they shall forward a request to the General Secretariat using the Technical Sheet found in Annex III hereof, including the reasons supporting their proposal.

Article 16.- The following is the procedure to be used for inclusion or exclusion of controlled chemical substances:

CHAPTER VI

INTERNATIONAL SURVEILLANCE AND COOPERATION

Article 17.- The Member Country from which territory any of the substances listed in Annex I hereof is exported, prior to the export being carried out and through its competent authorities, shall give prior notice of such export to the competent authority of the importing Member Country, using the form prepared by the International Narcotics Control Board (INCB).

Article 18.- Once the prior notice is given, the importing Member Country must acknowledge receipt thereof and within fifteen (15) business days, it must respond to the competent authority of the exporting Member Country stating conformity or otherwise with respect to the transaction. If the exporting Member Country has not received a response from the competent authority of the importing Member Country within the aforementioned term, it shall mean that the transaction has been accepted.

The Member Countries agree to timely give each other every details concerning the follow up on the information supplied and to cooperate to provide each other with all the information relative to any presumed illicit operations.

Article 19.- The imports shall be suspended whenever, in the opinion of the importing Member Country, there are reasonable signs to assume that the controlled chemical substances may be subject of diversion for the illicit manufacture of narcotic drugs or of psychotropic substances, or whenever the exporting Member Country requests it.

The Member Countries shall cooperate to afford each other any and all information relative to the presumed illicit operations.

Article 20.- A Member Country receiving the information subject matter hereof, must maintain confidentiality with regard to any information classified as industrial, business, trade or professional secret, as well as any other additional details, in accordance with its internal regulations and international commitments in place.

Article 21.- Any individuals and legal entities importing, exporting, trading or transporting controlled chemical substances, must immediately report to the Competent Administrative Authorities the transactions or proposed transactions they are involved in, whenever there are reasonable signs to believe that such substances could be used in the illicit production, manufacture, extraction or preparation of narcotic drugs, psychotropic or other substances with similar effects.

Among other cases, reasonable signs shall be considered to exist whenever the traded amount of the chemical substances contained in Annex I, the form of payment, or the characteristics of the buyer, are extraordinary, unusual or do not correspond to the company�s business or industrial endeavor.

Article 22.- Whenever an inspection is to be made during the transport of controlled chemical substances in an international customs traffic operation, as well as whenever a fault, infraction or a crime occurs during such traffic, the procedures established in Decision 477 concerning International Customs Traffic shall be followed.

Article 23.- The Member Countries shall endeavor to adopt measures for cooperation with any private sector entities undertaking activities related to the scope of application of this Regulation, particularly with regard to the supply of information and records to the competent authorities, prior notification procedures and timely information with regard to suspicious and unusual operations.

All information supplied shall be treated confidentially and shall not be disclosed, except in the case of a court order.

CHAPTER VII

MARKING AND LABELING

Article 24.- In order to enhance surveillance over international trade between Member Countries, each shipment of controlled chemical substances must bear the �Standard Andean Label� in a visible place on the original packages, including details of their designation as �controlled chemical substances�. The operators shall make sure that the Standard Andean Label is placed before shipping.

The aforementioned label shall be designed by the Technical Subcommittee for Chemical Substances Control, in accordance with technological progress and based on the enclosed model found in Annex IV of this Regulation, with the following features:

CHAPTER VIII

ADMINISTRATIVE DEFAULT

Article 25.- Notwithstanding the provisions of the Cartagena Agreement and of the Treaty for the Creation of the Andean Community Court of Justice, non-compliance with the following provisions of this Regulation shall be considered faults or violations subject to administrative sanctions applied in accordance with the internal legislation of each Member Country:

CHAPTER IX

TECHNICAL SUBCOMMITTEE FOR CHEMICAL SUBSTANCES

Article 26.- The Technical Subcommittee for Chemical Substances is the body responsible for issuing non-binding technical opinions on matters related to controlled chemical substances. Its set up and organization shall be determined by the Executive Committee of the Andean Cooperation Plan for Fighting Against Illegal Drugs and Associated Crimes, and it shall be responsible for the following duties:

The Technical Subcommittee for Chemical Substances shall keep permanent contact to study the problem relating to the identification, investigation and verification of the existence of crimes, so as to recommend the most appropriate course of action.

Article 27.- This Regulation shall come into force as from the date of its publication in the Official Gazette of the Cartagena Agreement.

FINAL PROVISIONS

FIRST.- For the purpose of compliance with the provisions hereof, a close work relationship must be established between the Competent Administrative Authorities and the Andean Committee on Customs Affairs, and with the Committee Against Fraud.

At the national level, each Member Country must design and implement an inter-institutional coordination mechanism.

TWO.- The Member Countries must adapt their national laws so as to define as a crime, any activity associated with the diversion of chemical substances likely to be used in the production of illicit drugs.

THREE.- To resolve on the qualification, registration, filing and granting of licenses, authorizations or similar permits, the Member Countries shall establish minimum requirements such as: verification of criminal record and police record with regard to illicit drug traffic and associated crimes of the shareholders and/or legal representatives, and a physical and legal verification of the existence of the company. Such circumstances may also be taken into account for revoking or suspending any permits and authorizations granted, all of the above in accordance with their internal legal system.

TEMPORARY PROVISIONS

ONE.- The Technical Subcommittee for Chemical Substances shall propose to the Executive Committee of the Andean Cooperation Plan for Fighting Against Illegal Drugs and Associated Crimes, the model and contents of the Standard Andean Label referred to in Article 25 hereof. Once the Standard Andean Label has been approved by the Executive Committee, it shall be forwarded to the General Secretariat for publication by way of Resolution.

TWO.- The Member Countries hereby agree to report to the General Secretariat, through their respective Ministries of Foreign Affairs, any changes to the list of Competent Organizations mentioned in Annex V hereof, within a term of no more than thirty (30) calendar days counted as from the date when such modification is decided at the national level. Within the following five (5) business days, the General Secretariat shall notify the Member Countries of the corresponding modifications.

Given in the City of Cusco, Peru, on December 6, 2004.

ANNEX I

Basic Common List of the chemical substances that are subject to
additional specific control measures within the Andean Community territory

* Substances found in Tables I and II of the 1988 United Nations Convention Against the Illicit Traffic in Narcotic Drugs and Psychotropic Substances, which are included by the Andean Community in Annex I due to their importance in the region in matters relating to industrial development, and particularly with regard to their diversion for use in the illicit production of natural origin drugs.

[1]      Chemical Abstract Substance.

ANNEX II

Tables I and II
of the 1988 United Nations Convention Against
Illicit Traffic in Narcotic Drugs and Psychotropic Substances

ANNEX III

Technical Sheet

1. Name or corporate name of the institution
2. Justification

� Legal framework applied

� Type of companies or industries in which such diversion has been confirmed

� Reports submitted by at least two laboratories on the product�s chemical analysis.

� Statistics supporting product diversion.

3. Date of shipment and date of receipt of the request at the General Secretariat.
4. Signature of person responsible at the competent national authority.

ANNEX IV

Standard Andean Label Model

General provisions

General format

Color

Symbols

Ecuador proposes the following suggested model label: