Customs

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
What are Controlled Chemicals?
5
Legitimate and Illicit Use
6
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

7

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

8
Schedule 1Acetic AnhydrideAcetyl
BromideAcetyl Chloride
Chemicals Under Control
9
Chemicals Under Control
Schedule 2 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
10
Chemicals Under Control
Schedule 3 Schedule 3
Country of Destination
Methylethylketone (MEK) Argentina, Bolivia, Brazil, Chile, Colombia,Ecuador, Guatemala, Mexico, Panama, Peru Venezuela.
Toluene Argentina, Bolivia, Brazil, Chile, Colombia,Ecuador, Guatemala, Mexico, Panama, Peru Venezuela.
Sulphuric acid Argentina, Bolivia, Brazil, Chile, Colombia,Ecuador, Guatemala, Mexico, Panama, Peru Venezuela.
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 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.
Hydrochloric acid 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.
11
How can I legitimately deal with the 25
Controlled Chemicals?

• Step 1
• Apply a Licence

12
Licence
Types of Licence required Chemicals under Schedules Chemicals under Schedules Chemicals under Schedules
Types of Licence required 1 2 3
Manufacture ? ? ?
Import ? ? ?
Export ? ? ?
Possession ? ? ?
Supply or Dealing in/ with ? ? ?
13
Licence

• Supporting Documents for Licence Application
• - Business Registration Certificate
• - Director List
• - Appointment of a Responsible Officer
• Licence fee is HK790
• 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
Types of Authorizations Chemicals under Schedules Chemicals under Schedules Chemicals under Schedules
Types of Authorizations 1 2 3
Import Authorization ? ? ?
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
Controlled Chemicals being Pharmaceuticals
21
Import of Controlled Chemicals
22
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)

• HK510
• 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
Transshipment of Controlled Chemicals
27
Transshipment of Controlled Chemicals
28
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 CED
• 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 CE

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
????
37
Controlled Chemicals being Dangerous Goods
Schedule Controlled Chemicals Category Exempted Quantity
1 Acetic Anhydride 3 25 L
1 Acetyl Chloride 3 Nil
2 Potassium Permanganate 7 10 kg
3 Methl ethyl ketone (MEK) 5 20 L
3 Toluene 5 20 L
3 Sulphuric Acid 3 10 L
3 Acetone 5 20 L
3 Ethyl Ether 5 2.5 L
3 Hydrochloric Acid 3 2.5 L
38
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
Points to Note for Laboratory Technicians
Licence Holder
Renew your Licence annually
44
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
(No Transcript)
47

Q A
48

Laboratory Technicians