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

What are Controlled Chemicals?

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.

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

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

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

Schedule 1 Acetic Anhydride Acetyl Bromide Acetyl Chloride Chemicals Under Control Schedule 1 Acetic Anhydride Acetyl Bromide Acetyl Chloride

Chemicals Under Control Schedule 2 Ephedrine Safrole Ergometrine Isosafrole Ergotamine Piperonal Pseudoephedrine Anthranilic acid Lysergic acid Phenylacetic acid 1-phenyl-2-propanone Piperidine N-acetylanthranilic acid 3,4-methylenedioxy- Norephedrine phenyl-2-propanone Potassium Permanganate

Chemicals Under Control Schedule 3 Country of Destination Methylethylketone (MEK) Argentina, Bolivia, Brazil, Chile, Colombia,Ecuador, Guatemala, Mexico, Panama, Peru & Venezuela. Toluene Sulphuric acid Acetone Afghanistan, Argentina, Bangladesh, Bolivia,Brazil, Cambodia, Chile, Colombia, Ecuador,Guatemala, India, Iran, Laos, Lebanon, Malaysia, Mexico, Myanmar, Nepal, Pakistan, Panama, Peru, Thailand, Turkey, Singapore, Sri Lanka, Venezuela & Vietnam. Ethyl ether Hydrochloric acid

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

Types of Licence required Chemicals under Schedules 1 2 3 Manufacture ✔  Import Export Possession Supply or Dealing in/ with

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

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

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

Import/ Export Authorization Types of Authorizations Chemicals under Schedules 1 2 3 Import Authorization ✔  Export Authorization

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

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

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

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

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

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

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

(Applicable to Schedule 1 &2 chemicals) 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

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

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

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

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

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

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

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

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

(Applicable to Schedule 1 & 2 Chemical only) 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

(Applicable to Schedule 1 & 2 Chemical only) 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

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

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

Controlled Chemicals being Dangerous Goods Schedule Controlled Chemicals Category Exempted Quantity 1 Acetic Anhydride 3 25 L Acetyl Chloride Nil 2 Potassium Permanganate 7 10 kg Methl ethyl ketone (MEK) 5 20 L Toluene Sulphuric Acid 10 L Acetone Ethyl Ether 2.5 L Hydrochloric Acid

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

Customs Enforcement Work Premises Visit Stock Check Register Inspection Cargo Examination

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

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

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

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

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

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

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

Q & A

Laboratory Technicians