Code of Practice for Supply Diversion into Illicit Drug Manufacture

This Code of Practice was first developed by PACIA and SIA in partnership with law enforcement bodies in 1994, and is aimed to provide a best practice guide for companies to address prevention of diversion of legitimate industrial chemicals into the illicit drug manufacture.

The Code is updated regularly to reflect latest law enforcement information on trends in illicit drug manufacture, and has been most recently updated in October 2008.  Chemicals deemed to be of significant interest for diversion purposes are typically submitted to PACIA by law enforcement with justification for their inclusion into the Code. 

Listed chemicals in the code attract controls proportionate to the level of risk for diversion and are categorised into three lists.  Category I lists attract stringent industry controls, such as the requirement companies request End User Declarations from customers seeking to purchase the listed chemicals, and to subsequently forward these declarations to law enforcement in order to analyse potential diversion risks.

Cash sales are prohibited for Category I chemicals, and supply of these products is required to be delayed for 24 hours.  Category II chemicals attract less stringent controls, with Category III chemicals listed for precautionary purposes only.

PACIA works closely with the Australian Crime Commission to update the Code annually, and generally support inclusions of chemicals where justified by the Commission.  To support and promote the aims of the Code, PACIA takes part in National Awareness Raising programs with the ACC and other supporting law enforcement and Government Departments. 

Compliance with the Code is voluntary; however the requirements of the Code have been legislated to varying degrees in some jurisdictions.

 

State Legislation

Queensland

• Drugs Misuse Act 1986
• The Drugs Misuse Regulations 1987

New South Wales

• Drug Misuse and Trafficking Act 1985
• The Drug Misuse and Trafficking Regulations 2006

Victoria

• The Drugs, Poisons and Controlled Substances (Precursor Chemicals) Regulations 2007
• Proposed amendments to the Drugs, Poisons and Controlled Substances Act 1981  Note:  it is expected that changes will be adopted that reflect the PACIA Code of Practice.

Tasmania

• Misuse of Drugs Act 2001

South Australia

• The Controlled Substances (General) Regulations 2000
• Controlled Substances (Controlled Drugs, Precursors and Cannabis) Amendment Bill 2008

Western Australia

• Misuse of Drugs Act 1981
• The Misuse of Drugs Regulations 1982

Northern Territory

• Misuse of Drugs Act 1990

Regulatory Framework

The Ministerial Council on Drug Strategy (MCDS) functions as the peak policy and decision-making body in relation to licit and illicit drugs in Australia.

The Attorney- Generals Department is the primary policy agency responsible for the National Strategy to Prevent the Diversion of Precursor Chemicals into Illicit Drug Manufacture. 

The Strategy contributes to the supply reduction aspects of the National Drug Strategy by stopping legitimately available chemicals being used to make illicit synthetic drugs in illegal clandestine drug laboratories. 

The implementation of the National Precursor Strategy is assisted by the National Working Group on the Prevention of the Diversion of Precursor Chemicals (Precursor Working Group). The Precursor Working Group is made up of more than 40 members from the Australian Government, state and territory law enforcement agencies, forensic and health services, and the pharmaceutical and chemicals industry. PACIA is an active member of the Precursor Working Group.

With the assistance of the Precursor Working Group, the National Precursor Strategy is being delivered against four broad outcomes:

• enhanced intelligence and information sharing capacity among law enforcement and regulatory agencies
• enhanced law enforcement, forensic and judicial responses through training
• national regulatory approaches to control access to chemicals and equipment while recognising the legitimate needs of business and the public, and
• awareness raising for key stakeholders on the problems and issues surrounding precursor chemical diversion.

The Precursor Working Group endorsed the development of the National Framework for the Control of Precursor Chemicals and Equipment Project.

The aim of the National Precursor Control Framework is to develop a truly national approach to the control of chemicals and equipment across the entire supply chain to minimise the opportunity for diversion for use in illicit drug manufacture.

The Framework is still under development.

The Framework will have five key strategic goals underpinned by a number of key objectives.  These reflect identified vulnerabilities and the enablers required for government, industry and the community to reduce precursor chemical diversion in Australia:

• A Nationally  Consistency Approach
• Enhanced Intelligence and Information Sharing
• Improved Enforcement and Regulatory Capacity
• Expanded Industry and Community Awareness
• National Operational Coordination

The National Precursor Control Framework will be managed by the Commonwealth Attorney General's Department under the auspice of the National Precursor Strategy and the Precursor Working Group. 

Annual progress reports will be provided to MCDS via the Intergovernmental Committee on Drugs with a review to be undertaken periodically following the formal endorsement of the Framework.

• Code of Practice for Supply Diversion into Illicit Drug Manufacture