101 UK Brexit Notes

Connemara Programme October 16 2018 pg. 146 Medical: Trading: Drug Precursors Purpose If the UK leaves the EU in March 2019 without a deal, find out how this would affect you if you are handling and trading in drug precursor chemicals. Drug precursors are chemicals that can be used in the illicit manufacture of narcotic drugs. They also have legitimate commercial uses and are legally used in a wide variety of industrial processes, such as medicines, flavourings and fragrances. They are divided into four categories, which are:  category 1: the most sensitive substances (the ‘main’ drug precursors)  category 2: less sensitive substances and pre-precursors  category 3: bulk chemicals that can have different types of uses in the manufacturing process, for example as feedstock, solvents or impurities removers  category 4: covers medicinal products for human and veterinary use containing ephedrine or pseudoephedrine Before 29 March 2019 If you’re trading in drug precursor chemicals outside the EU you must hold a domestic drug precursor chemical licence (for category 1 substances) or registration (for all category 2 and in some cases category 3 substances). If you’re a UK company trading in drug precursor chemicals with another EU country, you don’t need an import or export licence and the substance can be shipped immediately. If you want to trade outside the EU you may need to apply for an import or export licence and you’re required to provide a pre-export notification (PEN) for some categories of chemicals. This means that the substance cannot be shipped for 15 days while the importing authority considers the export. The application fee for an individual export or import licence is £24. After March 2019 if there’s no deal In the unlikely event the UK leaves the EU with no deal, EU regulations would no longer apply to the UK and the UK would be treated by the EU as a ‘third country’. This means that the current rules that apply for trading in drug precursor chemicals with countries outside the EU will apply for UK-EU trade. This is an established regime which derives from the requirements of wider international obligations under the UN International Drug Conventions. The UK is transposing the relevant EU regulation into UK law, to enable the drug precursor chemicals regulatory system to operate. If you are handling drug precursor chemicals in the UK, or you are already trading with non-EU countries, there will be no change to the licensing and registration requirements. What you need to do In the unlikely event of a no deal, you would need the same licences and registration to trade with the EU as you currently need to trade with non-EU countries. For category 1 substances you would need a domestic drug precursor chemical licence. For category 2 substances and some category 3 substances, you would need to make an application for a ‘registration’ with the Home Office. You will need to apply for an import and/or export licence when trading with EU countries in certain categories of drug precursor chemicals. You may also need a pre-export notification (PEN) to trade in certain drug precursor chemicals. The PEN requirement will depend on the category of chemical and individual country’s requirements i.e. a country may request a PEN for certain drug precursor chemicals if there’s an increased risk of diversion in their country. The licensing/registration and PEN requirements are outlined below: Domestic Licensing/Registration Requirements  If you currently trade with the EU in Category 1 drug precursor chemicals – No change to domestic licence requirements – A domestic licence is always required if you are using drug precursors in the UK (end user), trading within the EU and exporting/importing with third countries.  If you currently trade with the EU in Category 2A drug precursor chemicals – Change in requirements – You will need to register with the Home Office if you want to trade within the EU regardless of volume (currently you are only required to register if more than 100L per annum). If businesses are only handling drug precursors in the UK, then there will be no change to requirements.