Drug precursors
- Document symbol
- G/LIC/N/3/GBR/3
- Original language
- English
- Published on
- 07/12/2023
Outline of Systems
Q1. Give a brief description of each licensing system as a whole and, with respect to each, reply to the following questions as relevant, placing all of the material with respect to a given system in sequence together, and using cross references as appropriate when elements which have already been described are also present in another system.
The drug precursor control system allows the United Kingdom to meet its international treaty obligations under the 1988 UN Convention Against the Illicit Traffic in Narcotic Drugs and Psychotropic Substances.
Purposes and Coverage of Licensing
Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.
Drug precursors are divided into 4 categories (Please see further information on: https://www.gov.uk/guidance/precursor-chemical-licensing#categories):
• Category 1: the most sensitive substances, such as piperonal, chloroephedrine and ergometrine;
• Category 2: less sensitive substances and pre-precursors, such as acetic anhydride, piperidine and phenylacetic acid;
• Category 3: bulk chemicals that can have different uses, such as toluene, methyl ethyl ketone (MEK) and sulphuric acid;
• Category 4: medicinal products containing ephedrine or pseudoephedrine.
Please see further information on: https://www.gov.uk/guidance/precursor-chemical-licensing
Q3. The system applies to goods originating in and coming from which countries?
The need for import and/or export licences depends on several factors, such as which category substance falls into and the quantity. Please see the full chart covering the goods here: https://www.gov.uk/government/publications/precursor-chemical-import-and-export-authorisation-wallchart.
Q4. Is the licensing intended to restrict the quantity or value of imports, and if not, what are its purposes? Have alternative methods of accomplishing the purposes been considered and if so which? Why have they not been adopted?
The objective of the system is to prevent the diversion of drug precursors for illicit manufacture while maintaining a competitive market for legitimate trade.
Q5. Cite the law, regulation and/or administrative order under which the licensing is maintained. Is the licensing statutorily required? Does the legislation leave designation of products to be subjected to licensing to administrative discretion? Is it possible for the government (or the executive branch) to abolish the system without legislative approval?
The legislation and regulations under which the drug precursor systems are controlled are laid out below.
- Regulation (EC) 273/2004 of the European Parliament and Council of 11 February 2004 on drug precursors (Retained EU Legislation);
- Council Regulation (EC) 111/2005 of 22 December 2004 laying down rules for the monitoring of trade between the Community and third countries in drug precursors (Retained EU Legislation);
- Commission Delegated Regulation (EU) No. 2015/1011 supplementing Regulation (EC) No. 273/2204 of the European Parliament and of the Council on drug precursors and Council Regulation (EC) No. 111/2005 laying down rules for the monitoring of trade between the Union and third countries in drug precursors, and repealing Commission Regulation (EC) No. 1277/2005 (Retained EU Legislation);
- Commission Implementing Regulation (EU) No. 2015/1013 of 25 June 2015 laying down rules in respect of Regulation (EC) No. 273/2004 of the European Parliament and of the Council on drug precursors and of Council Regulation (EC) No. 111/2005 laying down rules for the monitoring of trade between the Union and third countries in drug precursors (Retained EU Legislation);
- The Controlled Drugs (Drug Precursors) (Intra-Community Trade) Regulations 2008;
- The Controlled Drugs (Drug Precursors) (Community External Trade) Regulations 2008; and
- The above are amended by the Part 5, Chapter 1 of the Law Enforcement and Security (Amendment) (EU Exit) Regulations 2019.
Specific arrangements apply in Northern Ireland including by virtue of the Protocol on Ireland/Northern Ireland. Further details on the operation of the Protocol on Ireland/Northern Ireland can be found at: https://www.gov.uk/government/publications/the-northern-ireland-protocol.
Procedures
Q6. For products under restriction as to the quantity or value of imports (whether applicable globally or to a limited number of countries or whether established bilaterally or unilaterally):
Q6.I. Is information published, and where, concerning allocation of quotas and formalities of filing applications for licences? If not, how is it brought to the attention of possible importers? Of governments and export promotion bodies of exporting countries and their trade representatives? Is the overall amount published? The amount allocated to goods from each country? The maximum amount allocated to each importer? How to request any exceptions or derogations from the licensing requirement?
Q6.II. How is the size of the quotas determined: on a yearly, six-monthly or quarterly basis? Are there cases where the size of quota is determined on a yearly basis but licences are issued for imports on a six-monthly or quarterly basis? In the latter case, is it necessary for importers to apply for fresh licence on a six-monthly or quarterly basis?
Q6.III. Are licences allotted for certain goods partly or only to domestic producers of like goods? What steps are taken to ensure that licences allocated are actually used for imports? Are unused allocations added to quotas for a succeeding period? Are the names of importers to whom licences have been allocated made known to governments and export promotion bodies of exporting countries upon request? If not, for what reason? (Indicate products to which replies relate.)
Q6.IV. From the time of announcing the opening of quotas, as indicated in I above, what is the period of time allowed for the submission of applications for licences?
Q6.V. What are the minimum and maximum lengths of time for processing applications?
Q6.VI. How much time remains, at a minimum, between the granting of licences and the date of opening of the period of importation?
Q6.VII. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Q6.VIII. If the demand for licences cannot be fully satisfied, on what basis is the allocation to applicants made? First come, first served? Past performance? Is there a maximum amount to be allocated per applicant and, if so, on what basis is it determined? What provision is made for new importers? Are applications examined simultaneously or on receipt?
Q6.IX. In the case of bilateral quotas or export restraint arrangements where export permits are issued by exporting countries, are import licences also required? If so, are licences issued automatically?
Q6.X. In cases where imports are allowed on the basis of export permits only, how is the importing country informed of the effect given by the exporting countries to the understanding between the two countries?
Q6.XI. Are there products for which licences are issued on condition that goods should be exported and not sold in the domestic market?
Q7. Where there is no quantitative limit on importation of a product or on imports from a particular country:
Q7.a. How far in advance of importation must application for a licence be made? Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence (for example, owing to inadvertency)?
People can ship any time during the validity of the licence. Import licences are valid for three months and export licenses are valid for two months. Home Office service standard is seven-ten working days in addition.
Depending on the Drugs and Firearms Licensing Unit resource, a same day licence could be issued. If goods arrive at the port without a licence, a retrospective licence would not be issued as the offence has already occurred.
Applications should be submitted in advance as they usually take 12-16 weeks to process once the Home Office have received the Disclosure and Barring Service (DBS) checks for all those named on the licence application.
Q7.b. Can a licence be granted immediately on request?
The process is not automatic, so it cannot be immediately granted. However, a licence could potentially be granted on the same day if the company already holds a valid domestic licence and have set up the products and foreign trade establishments on the NDS system.
Q7.c. Are there any limitations as to the period of the year during which application for licence and/or importation may be made? If so, explain.
There are no limitations as to the period of the year during which application for licence and/or importation may be made.
Q7.d. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Consideration of licence applications is affected by a single administrative organ, the Drugs and Firearms Licensing Unit in the Home Office. However, the Unit will have regard to information from other agencies. Operators must lodge an application for an import or export authorisation (licence) with the competent authority in which the importer/exporter is established. The Home Office serves as the "competent authority".
Q8. Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria? Are the reasons for any refusal given to the applicant? Have applicants a right of appeal in the event of refusal to issue a licence and, if so, to what bodies and under what procedures?
There are no specific circumstances under which an application for a licence may be refused other than failure to meet the ordinary criteria. The reasons for any refusal may be given to the applicant. Applicants do not have a right of appeal in the event of refusal to issue a licence.
Eligibility of Importers to Apply for Licence
Q9. Are all persons, firms and institutions eligible to apply for licences: (If not, is there a system of registration of persons or firms permitted to engage in importation? What persons or firms are eligible? Is there a registration fee? Is there a published list of authorized importers?) a) under restrictive licensing systems? b) under non-restrictive systems?
To apply for a DPC import or export licence the company needs to hold the relevant domestic licence or registration where one is needed. It depends on several factors, such as the substance, the quantity and countries involved in the transaction as set out in the document at the following link: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/954128/PC_Wallchart_Import-_Export__January_2021_-_v1.1.pdf
You need to apply for a new import or export licence for each individual shipment. Licences cannot be post-dated or retrospectively issued. If you are applying for a UK export licence, you must include a copy of the import permit.
Each individual licence has a fee of £24.
There is not a published list of authorised importers due to privacy and confidentiality.
Documentational and Other Requirements for Application for Licence
Q10. What information is required in applications? Submit a sample form. What documents is the importer required to supply with the application?
Regulations require that all imports, exports and intermediary activities involving precursors chemicals be documented by operators.
Operators must lodge an application for an import or export authorisation (licence) with the competent authority in which the importer/exporter is established. The Home Office serves as the "competent authority". Applications must be made via the national drugs control system (NDS) in respect of each transaction (shipment). Import/Export licences can only be sought after the relevant domestic licence or registration is held.
Applications for authorisations must contain full information about the transport arrangements, name and address of all operators involved, and nature, quantity and weight of the substance being traded.
To apply for a domestic licence, they will need to provide the following information and documents:
- the company registration document from Companies House (if applicable);
- a valid Disclosure and Barring Service (completed via Security Watchdog) reference number and date of issue for the responsible officer and guarantor;
- a certificate of good conduct for the responsible officer – this should be a brief letter signed by another officer of the company such as the guarantor and should, for example, confirm that the responsible officer is a fit and proper person to act as the responsible officer for precursor chemicals. They may also wish to state how long the responsible officer has worked for the company, the role they hold and a statement on how they have carried out their duties;
- a purchase order (PO) number (if applicable to your company or organisation);
- knowledge of the PC substances and categories.
Q11. What documents are required upon actual importation?
The import licence is required upon actual importation.
Q12. Is there any licensing fee or administrative charge? If so, what is the amount of the fee or charge?
The fee for an individual export or import licence is £24. The Home Office will process applications in date order. The expected processing time is seven working days. You should expect another 15 days' processing time if a pre-export notification is required while the importing authority considers your export.
Precursor chemical domestic licences: application fees for new precursor chemical domestic licences
| Licenceable activity/activities | Licence application fee |
|---|---|
| Category 1 licence | £3,655 |
| Category 2 registration | £435 |
| Category 3 registration | £435 |
Q13. Is there any deposit or advance payment requirement associated with the issue of licences? If so, state the amount or rate, whether it is refundable, the period of retention and the purpose of the requirement.
No deposit or advance payment requirement. Payment is in arrears for import licensing only. All domestic licensing fees are paid before a licence is issued. It is a set fee per license which is non‑refundable and also comes with cancellation fees depending on when the company cancel. The purpose of the fee is cost recovery.
Conditions of Licensing
Q14. What is the period of validity of a licence? Can the validity of a licence be extended? How?
Import licences are issued for three months. Export licences are issued for two months or in line with the permit of the importing country, whichever expires first. The validity of a licence cannot be extended and is only valid for a single shipment.
Q15. Is there any penalty for the non-utilization of a licence or a portion of a licence?
Licences are for single shipments only; they cannot be used for multiple shipments. There is no penalty for the non-utilization of a licence or a portion of a licence, but licence fees are still payable.
Q16. Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
Licences are not transferable between importers.
Q17. Are any other conditions attached to the issue of a licence? a) for products subject to quantitative restriction? b) for products not subject to quantitative restriction?
There are no other conditions attached to the issue of a licence.
Other Procedural Requirements
Q18. Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
Customs declarations.