Customs & Excise Department Controlled Chemicals Group Senior Inspector TAM Kwok-fai

1. Customs & Excise DepartmentControlled Chemicals GroupSenior InspectorTAM Kwok-fai

2. What are Controlled Chemicals?

3. What are Controlled Chemicals? • Specified in Schedule 1, 2 and 3 of the Control of Chemicals Ordinance, Cap. 145. • Used for the manufacture of narcotic drugs or psychotropic substances.

4. Example (1) 一帆風順 AA 乙酸酐 Acetic Anhydride (Controlled Chemical) 海洛英 Heroin (Narcotic Drug) What are Controlled Chemicals?

5. 咳水 Cough Medicine 麻 黃  Ephedrine Illicit manufacturers 甲安非他明 (冰毒) Methamphetamine (Ice) Legitimate and Illicit Use

6. Established on 1 April 1995 • Licensing & enforcement authority for the purpose of the Control of Chemicals Ordinance • Prevent diversion of chemicals to illicit manufacture of narcotic drugs or psychotropic substance The Controlled Chemicals Group

7. The Legislation The Control of Chemicals Ordinance, Chapter 145 • Come into operation on 1 January 1996 • Different levels of control • 25 chemicals under 3 Schedules

8. Chemicals Under Control Schedule 1Acetic AnhydrideAcetyl BromideAcetyl Chloride

9. Chemicals Under Control

10. Chemicals Under Control

11. How can I “legitimately” deal with the 25 Controlled Chemicals? Step 1 Apply a Licence

12. Licence

13. Licence Supporting Documents for Licence Application - Business Registration Certificate - Director List - Appointment of a Responsible Officer Licence fee is HK$790 issued within 14 days valid for one year

14. Licence Conditions • Not transferable • Must not be defaced or altered • Loss must be reported to C & E at once • Controlled chemicals must be kept in the specified storage place • Authorization applied for each import or export

15. How can I “legitimately” deal with the Controlled Chemicals? Step 2 Apply Import/ Export Authorization Authorization

16. Import/ Export Authorization

17. Import / Export Authorization Supporting Documents for Application • Commercial invoices showing the supplier and the ultimate consignee • Related shipping documents/ Airway Bills • Declaration on the ultimate use of the chemical • Document supporting the import into the receiving place is lawful

18. Import Authorization • Free of charge • Valid for 6 months • Apply 4 days before the importation of the chemical • Customs inspection at the entry point • Carrier/ Cargo Handling Company endorsement on the Import Authorization • The endorsed authorization to be returned to CCG within 7 days after the importation of the chemical

19. Export Authorization • Free of charge • Valid for 28 days • Apply 4 days before the exportation of the chemical • Customs inspection at the exit point • Carrier/ Cargo Handling Company endorsement on the Export Authorization • The endorsed authorization to be returned to CCG within 14 days after the exportation of the chemical

20. Import/ Export Licence issued by Trade and Industry Dept. Controlled Chemical • Ephedrine • Ergotamine • Ergometrine • Pseduoephedrine • Norephedrine Pharmaceuticals Controlled Chemicals being Pharmaceuticals

21. Import Licence (C&E D) Import Authorization (C&E D) Controlled Chemical Import Licence (C&E D) Import Authorization (C&E D) Import Licence (T&I D) Controlled Chemical Pharmaceuticals Import of Controlled Chemicals

22. Export Licence (C&E D) Export Authorization (C&E D) Controlled Chemical Export Licence (C&E D) Export Authorization (C&E D) Export Licence (T&I D) Controlled Chemical Pharmaceuticals Export of Controlled Chemicals

23. How can I “legitimately” deal with the 25 Controlled Chemicals? Step 3 Apply Removal Permit Removal Permit

24. Removal Permit (Applicable to Schedule 1 &2 chemicals) Supporting documents to be submitted • Business Registration Certificate of the Handling Agent • Commercial invoices showing the supplier and the ultimate consignee • Related shipping documents/ Airway Bills • Documents supporting the export from the originating place and the import into the designated place are lawful • Declaration on the ultimate use of the chemical

25. Removal Permit(Applicable to Schedule 1 &2 chemicals) • HK$510 • For the transhipment of controlled chemicals in HKSAR • Applicable to one consignment at a time • Valid for 40 days • Apply 4 days before the importation of the chemical • Customs inspection at the entry and exit point • Endorsement from Carriers and Person in charge of the place of storage on the removal permit • The endorsed permit to be returned to CCG within one working day after the exportation of the chemical

26. Removal Permit (C&E D) Controlled Chemical or Import Licence (C&E D) Export Licence (C&E D) Import Authorization (C&E D) Export Authorization (C&E D) Schedule 1 and 2 Transshipment of Controlled Chemicals

27. Transhipment Cargo Exemption Scheme (T & I D) Removal Permit (C&E D) (C&E D) Either Either Export Licence Import Licence T&I D Import Licence Export Licence Controlled Chemical Import Authorization Export Authorization Pharmaceuticals Transshipment of Controlled Chemicals

28. Register How can I “legitimately” do business with the 25 Controlled Chemicals? Step 4 Furnish a Register

29. Register(Transaction related to Schedule 1 or 2 Chemicals) Reg. 3, The Control of Chemicals Regulation • The holder of a licence* or permit shall for each licence or permit keeps a transaction record in an approved register *other than the one issued for export of schedule 3 chemicals

30. Register(Transaction related to Schedule 1 or 2 Chemicals) Details to be included • Stock received • Manufacture Record • Usage/Disposal Record • Sales/Supply/Transfer Record • Balance

31. Register(Transaction related to Schedule 1 or 2 Chemicals) Transaction Record • Register containing all physical transaction records to which the licence or permit relates • Format approved by C&ED • Simultaneous update • Copy of the new entry to Hong Kong Customs within 24 hours of its being made • Record to be kept for 2 years Register

32. How can I “legitimately” deal with the 25 Controlled Chemicals? Step 5 Apply for Storage Approval

33. Storage Approval (Applicable to Schedule 1 & 2 Chemical only) Reg. 4, The Control of Chemicals Regulation Written approval for storage of chemicals not in transit • Premises • Containers

34. Storage Approval (Applicable to Schedule 1 & 2 Chemical only) Supporting Documents for Application - Business Registration Certificate - Proof of Address - Appointment of a Responsible Officer Free of Charge issued within 5 working days valid for one year

35. Storage Approval(Applicable to Schedule 1 & 2 Chemical only) • Type of Controlled Chemical • Quantity • Place of Storage • Kept in a container approved in writing by the Commissioner of C&E

36. The Container where the chemical is stored • English and Chinese name of the chemicals shall be clearly marked on the outside of the container. Potassium Permanganate 高錳酸鉀

37. Controlled Chemicals being Dangerous Goods

38. Storage Approval From Customs & Excise Dept Storage Licence From Fire Services Dept. Controlled Chemicals being Dangerous Goods

39. Customs Enforcement Work • Premises Visit Stock Check Register Inspection Cargo Examination

40. The most popular controlled chemicals found in Laboratories • Acetic Anhydride -Schedule 1 chemical • Potassium permanganate -Schedule 2 chemical

41. Potassium Permanganate (a schedule 2 chemical) Acquisition of PP Bought from local supplier Import from overseas For local laboratory use For local laboratory use Apply for Storage Approval Apply for a Licence Submit a register

42. Acetic Anhydride (a schedule 1 chemical) Acquisition of AA Bought from local supplier Import from overseas For local laboratory use For local laboratory use Apply for a Licence Apply for a Licence Submit a register Submit a register

43. Make an entry in the Register Fax a copy of the register to C&ED 25411016 within 24 hours Call the hotline for any doubt 25414383 Points to Note for Laboratory Technicians Licence Holder Renew your Licence annually

44. Call the hotline for any doubt (25414383) Points to Note for Laboratory Technicians Storage Approval Holder Renew your Storage Approval annually

45. What if I deal with the 25 Controlled Chemicals “illegitimately”? Offence & Penalty

46. Maximum Penalties Related to a licence/ permit • Fine of $1,000,000 and • Imprisonment for 15 years Related to register or storage approval • Fine of $50,000 and • Imprisonment for 1 year

47. Q & A

48. Laboratory Technicians