On April 9, 2007, the US Drug Enforcement Administration (DEA) promulgated a new rule implementing the Combat Methamphetamine Epidemic Act of 2005 and imposing new reporting requirements on importers, exporters, brokers, and traders of List I and List II chemicals. It becomes effective May 9, 2007.

The rule imposes several significant new requirements on importers, exporters, brokers and traders of List I and List II chemicals.

• The rule modifies the conditions under which the 15-day advance notification requirement for imports of listed chemicals is waived. Under the new rule, advanced notification is not required if (1) the importer is considered by DEA to be a regular importer of the listed chemical and (2) the customer is considered by DEA to be a regular customer for the listed chemical.1

• Importers must provide information to DEA concerning the US purchasing the chemical. This is a new requirement for importers, although exporters have always been required to provide this information.

• Importers, exporters and brokers or traders involved in an international transaction must file an amended DEA Form 486 if the import, export or international transaction does not occur; if the listed chemical will not be transferred to the person named on the initial Form 486; or if a greater quantity of the chemical than originally indicated will be imported or exported.

• In addition to filing the initial notification, an importer, exporter, broker or trader must send DEA a return declaration containing specific information about the transaction within 30 days after the exportation or international transaction of a listed chemical is completed.

To comply with the changes made to the Controlled Substances Act by the Combat Methamphetamine Act of 2005 and other legislation as well as the requirements contained in the new rule, DEA has revised the existing DEA Form 486. For example, the new form has been renamed “Import/Export Declaration for List and List II Chemicals” to more accurately characterize its use. In addition, new fields have been added to the form, including fields for reporting information about the downstream customer and providing the return declaration.

Because this rulemaking codifies statutory provisions, the rule will become effective, without the opportunity for notice and comment, on May 9, 2007. It is important to note that, under the new rule, effective May 9, 2007, all companies that have been granted regular importer status in the past will be required to provide advance notification of imports, including information about their transferees, even for customers with whom they have done business previously. This will allow the agency to review and approve the customer as a “regular customer” for the chemical being imported.

The DEA’s rule, as it appears in the Federal Register, can be downloaded here (PDF format).

For additional information regarding DEA’s new rule – or any DEA-related matter – contact:

Julie Tierney
202.828.3427
tierney.julia@arentfox.com

1. The new rule retains the exemption from the notification requirement for importers of certain chemicals, including acetone, butanone (or Methyl Ethyl Ketone (MEK)), and toluene. Importers of these chemicals are instead required to file quarterly reports summarizing their imports of these chemicals.