Established Assessment of Annual Needs for the List I Chemicals Ephedrine, Pseudoephedrine, and Phenylpropanolamine for 2010, 60294-60298 [E9-27890]
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60294
Federal Register / Vol. 74, No. 223 / Friday, November 20, 2009 / Notices
DEPARTMENT OF JUSTICE
Drug Enforcement Administration
[Docket No. DEA–326F]
Established Assessment of Annual
Needs for the List I Chemicals
Ephedrine, Pseudoephedrine, and
Phenylpropanolamine for 2010
AGENCY: Drug Enforcement
Administration (DEA), Justice.
ACTION: Notice of Assessment of Annual
Needs for 2010.
This notice establishes the
initial 2010 Assessment of Annual
Needs for certain List I chemicals in
accordance with the Combat
Methamphetamine Epidemic Act of
2005 (CMEA), enacted on March 9,
2006.
SUMMARY:
DATES:
Effective Date: November 20,
2009.
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FOR FURTHER INFORMATION CONTACT:
Christine A. Sannerud, Ph.D., Chief,
Drug and Chemical Evaluation Section,
Drug Enforcement Administration, 8701
Morrissette Drive, Springfield, Virginia
22152, Telephone: (202) 307–7183.
SUPPLEMENTARY INFORMATION: Section
713 of the Combat Methamphetamine
Epidemic Act of 2005 (Title VII of Pub.
L. 109–177) (CMEA) amended Section
306 of the Controlled Substances Act
(CSA) (21 U.S.C. 826) by adding
ephedrine, pseudoephedrine, and
phenylpropanolamine to existing
language to read as follows: ‘‘The
Attorney General shall determine the
total quantity and establish production
quotas for each basic class of controlled
substance in schedules I and II and for
ephedrine, pseudoephedrine, and
phenylpropanolamine to be
manufactured each calendar year to
provide for the estimated medical,
scientific, research, and industrial needs
of the United States, for lawful export
requirements, and for the establishment
and maintenance of reserve stocks.’’
Further, section 715 of the CMEA
amended 21 U.S.C. 952 ‘‘Importation of
Controlled Substances’’ by adding the
same List I chemicals to the existing
language in paragraph (a), and by
adding a new paragraph (d) to read as
follows:
States from any place outside thereof, any
controlled substance in schedule I or II of
subchapter I of this chapter, or any narcotic
drug in schedule III, IV, or V of subchapter
I of this chapter, or ephedrine,
pseudoephedrine, and
phenylpropanolamine, except that—
(1) such amounts of crude opium, poppy
straw, concentrate of poppy straw, and coca
leaves, and of ephedrine, pseudoephedrine,
and phenylpropanolamine, as the Attorney
General finds to be necessary to provide for
medical, scientific, or other legitimate
purposes * * * may be so imported under
such regulations as the Attorney General
shall prescribe.
(d)(1) With respect to a registrant under
section 958 who is authorized under
subsection (a)(1) to import ephedrine,
pseudoephedrine, or phenylpropanolamine,
at any time during the year the registrant may
apply for an increase in the amount of such
chemical that the registrant is authorized to
import, and the Attorney General may
approve the application if the Attorney
General determines that the approval is
necessary to provide for medical, scientific,
or other legitimate purposes regarding the
chemical.
Editor’s Note: This excerpt of the
amendment is published for the convenience
of the reader. The official text is published
at 21 U.S.C. 952(a) and (d)(1).
(a) Controlled substances in schedule I or
II and narcotic drugs in schedule III, IV, or
V; exceptions
It shall be unlawful to import into the
customs territory of the United States from
any place outside thereof (but within the
United States), or to import into the United
Background and Legal Authority
Section 713 of the CMEA of 2005
(Title VII of Pub. L. 109–177) amended
section 306 of the CSA (21 U.S.C. 826)
to require that the Attorney General
establish quotas to provide for the
annual needs for ephedrine,
pseudoephedrine, and
phenylpropanolamine. Section 715 of
the CMEA amended 21 U.S.C. 952 by
adding ephedrine, pseudoephedrine,
and phenylpropanolamine to the
existing language concerning
importation of controlled substances.
The 2010 Assessment of Annual
Needs represents those quantities of
ephedrine, pseudoephedrine, and
phenylpropanolamine which may be
manufactured domestically and/or
imported into the United States in 2010
to provide adequate supplies of each
chemical for: The estimated medical,
scientific, research, and industrial needs
of the United States; lawful export
requirements; and the establishment
and maintenance of reserve stocks.
The responsibility for establishing the
assessment has been delegated to the
Administrator of the DEA by 28 CFR
0.100. The Administrator, in turn, has
redelegated this function to the Deputy
Administrator, pursuant to 28 CFR
0.104.
On September 14, 2009, a notice
entitled, ‘‘Assessment of Annual Needs
1 Applications and instructions for procurement,
import and manufacturing quotas can be found at
for the List I Chemicals Ephedrine,
Pseudoephedrine, and
Phenylpropanolamine for 2010’’ was
published in the Federal Register (74
FR 47021). That notice proposed the
2010 Assessment of Annual Needs for
ephedrine (for sale), ephedrine (for
conversion), pseudoephedrine (for sale),
phenylpropanolamine (for sale) and
phenylpropanolamine (for conversion).
All interested persons were invited to
comment on or object to the assessments
on or before October 14, 2009.
Comments Received
DEA did not receive any comments to
the Assessment of Annual Needs for
ephedrine (for sale), ephedrine (for
conversion), pseudoephedrine (for sale),
phenylpropanolamine (for sale) and
phenylpropanolamine (for conversion).
DEA is finalizing the assessments for
these List I chemicals based on
information contained in additional
applications for 2010 import,
manufacturing and procurement quotas
provided by DEA registered importers
and manufacturers whose quota
applications were received as of October
21, 2009. DEA is providing the data
used in developing the established
assessments for each of the listed
chemicals. DEA also notes that the
Assessment of Annual Needs may be
adjusted at a later date pursuant to 21
CFR 1315.13.
https://www.deadiversion.usdoj.gov/quotas/
quota_apps.htm.
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17:03 Nov 19, 2009
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Underlying Data and DEA’s Analysis
In determining the final 2010
assessments, DEA has considered the
total net disposals (i.e., sales) of the List
I chemicals for the current and
preceding two years, actual and
estimated inventories, projected
demand (2010), industrial use, and
export requirements from data provided
by DEA registered manufacturers and
importers in procurement quota
applications (DEA 250), from
manufacturing quota applications (DEA
189), and from import quota
applications (DEA 488). 1
DEA further considered trends as
derived from information provided in
applications for import, manufacturing,
and procurement quotas and in import
and export declarations. DEA notes that
the inventory, acquisitions (purchases)
and disposition (sales) data provided by
DEA registered manufacturers and
importers reflects the most current
information available.
Ephedrine Data
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Federal Register / Vol. 74, No. 223 / Friday, November 20, 2009 / Notices
EPHEDRINE (FOR SALE) DATA FOR 2010 ASSESSMENT OF ANNUAL NEEDS
[Kilograms]
Ephedrine
2007
Sales * (DEA 250) ....................................................................................................................
Imports ** (DEA 488) ...............................................................................................................
Export Declarations (DEA 486) ...............................................................................................
Inventory * (DEA 250) ..............................................................................................................
IMS *** (NSP) ...........................................................................................................................
2,743
9,595
168
1,332
1,235
2008
2009
2,508
1,686
91
592
1,460
2,431
2,160
10
181
n/a
2010
Request
2,861
1,552
n/a
n/a
n/a
* Reported sales and inventory from applications for 2010 procurement quotas (DEA 250).
** Reported imports from applications for 2010 import quotas (DEA 488).
*** IMS Health, IMS National Sales PerspectivesTM, January 2007 to December 2008, Retail and Non-Retail Channels, Data Extracted October
21, 2009.
Ephedrine Analysis
DEA calculated the established 2010
Assessment of Annual Needs for
ephedrine using the calculation
developed to determine the 2009
Assessment of Annual Needs. This
calculation considers the criteria
defined in 21 U.S.C. 826: estimated
medical, scientific, research, and
industrial needs of the United States;
lawful export requirements; and the
establishment and maintenance of
reserve stocks.
As of October 21, 2009, DEA
registered manufacturers of dosage form
products containing ephedrine
requested the authority to purchase a
total of 2,861 kg ephedrine (for sale) in
2010. DEA registered manufacturers of
ephedrine reported sales totaling
approximately 2,508 kg in 2008 and
2,431 kg in 2009; this represents a 3%
decrease in sales reported by these firms
from 2008 to 2009. Additionally,
exports of ephedrine products from the
United States as reported on export
declarations (DEA 486) totaled 91 kg in
2008 and 10 kg in 2009; this represents
a 90% decrease from levels observed in
2008. The average of the 2008 and 2009
exports of ephedrine products is
approximately 51 kg. DEA also
considered information on trends in the
national rate of net disposals from sales
data provided by IMS Health’s National
Sales PerspectiveTM (NSP) database.
IMS NSP data reported the average sales
volume of ephedrine for the calendar
years 2007 and 2008 to be
approximately 1,348 kg. DEA notes that
the 2009 sales figure reported by
manufacturers (2,431 kg) is higher than
the average sales reported by IMS for the
previous two years (1,348 kg). This is
expected because a manufacturer’s
reported sales include quantities which
are necessary to provide reserve stocks
for distributors and retailers. DEA, in
considering the manufacturer’s reported
sales, thus believes that 2,431 kg fairly
represents the U.S. sales of ephedrine
for 2010 and that 51 kg fairly represents
the export requirements of ephedrine.
For the establishment and
maintenance of reserve stocks, DEA
notes that 21 CFR 1315.24 allows for an
inventory allowance (reserve stock) of
50% of a manufacturer’s estimated
sales. DEA also considered the
estimated 2009 year end inventory as
reported by DEA registrants in
determining the inventory allowance.
DEA calculated the ephedrine (for
sale) assessment by the following
methodology:
2009 sales + reserve stock + export
requirement ¥ existing inventory =
AAN
2,431 + (50%*2,431) + 51 ¥ 181 = 3,517
kg ephedrine (for sale) for 2010
This calculation suggests that DEA’s
Assessment of Annual Needs for
ephedrine should be established as
3,600 kg. Accordingly, DEA is
establishing the 2010 Assessment of
Annual Needs for ephedrine (for sale) at
3,600 kg.
Phenylpropanolamine (for Sale) Data
PHENYLPROPANOLAMINE (FOR SALE) DATA FOR 2010 ASSESSMENT OF ANNUAL NEEDS
[Kilograms]
Phenylpropanolamine (for sale)
2007
Sales * (DEA 250) ....................................................................................................................
Imports ** (DEA 488) ...............................................................................................................
Export Declarations (DEA 486) ...............................................................................................
Inventory * (DEA 250) ..............................................................................................................
3,770
73
1,002
3,597
2008
2009
4,274
79
0
2,093
4,638
134
3
596
2010
Request
6,288
263
n/a
n/a
* Reported sales and inventory from applications for 2010 procurement quotas (DEA 250) received as of October 21, 2009.
** Reported imports from applications for 2010 import quotas (DEA 488) received as of October 21, 2009.
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Phenylpropanolamine (for Sale)
Analysis
DEA utilized the same general
methodology and calculation to
establish the assessment for
phenylpropanolamine (for sale) as was
described for the assessment of
ephedrine (for sale), above.
As of October 21, 2009, DEA
registered manufacturers of dosage form
products containing
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phenylpropanolamine requested the
authority to purchase 6,288 kg
phenylpropanolamine (for sale) in 2010.
DEA registered manufacturers of
phenylpropanolamine reported sales
totaling approximately 4,274 kg in 2008
and 4,638 kg in 2009; this represents an
8% increase in sales reported by these
firms from 2008 to 2009. Additionally,
exports of phenylpropanolamine
products from the U.S. as reported on
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Sfmt 4703
export declarations (DEA 486) totaled 0
kg in 2008 and 3 kg in 2009; this
represents a 3 kg increase from levels
observed in 2008. The average of the
2008 and 2009 exports of
phenylpropanolamine products is
approximately 2 kg. DEA thus believes
that 4,638 kg fairly represents the U.S.
sales of phenylpropanolamine for 2010
and that 2 kg fairly represents the export
requirements of phenylpropanolamine.
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Federal Register / Vol. 74, No. 223 / Friday, November 20, 2009 / Notices
DEA notes that phenylpropanolamine is
sold primarily as a veterinary product
for the treatment for canine
incontinence and is not approved for
human consumption. IMS Health’s NSP
Data does not capture sales of
phenylpropanolamine to these channels
and is therefore not included.
DEA calculated the
phenylpropanolamine (for sale)
assessment by the following
methodology:
2009 sales + reserve stock + export
requirement ¥ existing inventory =
AAN
4,638 + (50%*4,638) + 2 ¥ 596 = 6,363
kg phenylpropanolamine (for sale)
for 2010
This calculation suggests that DEA’s
2010 Assessment of Annual Needs for
phenylpropanolamine (for sale) should
be established as 6,400 kg. Accordingly,
DEA is establishing the 2010
Assessment of Annual Needs for
phenylpropanolamine (for sale) at 6,400
kg.
Pseudoephedrine (for Sale) Data
PSEUDOEPHEDRINE (FOR SALE) DATA FOR 2010 ASSESSMENT OF ANNUAL NEEDS
[Kilograms]
Pseudoephedrine (for sale)
2007
Sales * (DEA 250) ....................................................................................................................
Sales * (DEA 189) ....................................................................................................................
Imports ** (DEA 488) ...............................................................................................................
Export Declarations (DEA 486) ...............................................................................................
Inventory * (DEA 250) ..............................................................................................................
IMS *** (NSP) ...........................................................................................................................
2008
2009
238,608
100,300
232,822
42,132
135,097
180,204
223,196
64,781
170,995
47,194
119,515
149,159
286,516
33,600
267,808
25,526
62,748
n/a
2010
Request
225,116
32,760
233,569
n/a
n/a
n/a
* Reported sales and inventory from applications for 2010 procurement quotas (DEA 250) and manufacturing quotas (DEA 189) received as of
October 21, 2009.
** Reported imports from applications for 2010 import quotas (DEA 488) received as of October 21, 2009.
*** IMS Health, IMS National Sales PerspectivesTM, January 2007 to December 2008, Retail and Non-Retail Channels, Data Extracted October
21, 2009.
Pseudoephedrine (for Sale) Analysis
DEA utilized the same general
methodology and calculations to
establish the assessment for
pseudoephedrine (for sale) as were
described for the assessment of
ephedrine (for sale), above.
As of October 21, 2009, DEA
registered manufacturers of dosage form
products containing pseudoephedrine
requested the authority to purchase
225,116 kg pseudoephedrine. DEA
registered manufacturers of
pseudoephedrine reported sales totaling
approximately 223,196 kg in 2008 and
286,516 kg in 2009; this represents a
22% increase in sales reported by these
firms from 2008 to 2009. During the
same period exports of
pseudoephedrine products from the
U.S. as reported on export declarations
(DEA 486) totaled 47,194 kg in 2008 and
25,526 kg in 2009; this represents a 54%
decrease from levels observed in 2008.
The average of the 2008 and 2009
exports is 36,360 kg. Additionally, DEA
considered information on trends in the
national rate of net disposals from sales
data provided by IMS Health. IMS NSP
data reported the average retail sales
volume of pseudoephedrine for the
calendar years 2007 and 2008 to be
approximately 164,682 kg. DEA thus
believes that 286,516 kg of sales
reported by manufacturers fairly
represents the U.S. sales of
pseudoephedrine for 2010 and that
36,360 kg fairly represents the export
requirements of pseudoephedrine. DEA
notes that manufacturer reported sales
for 2009 (286,516 kg) are higher than the
average retail sales reported by IMS for
the previous two years (164,682 kg).
This is expected because a
manufacturer’s reported sales include
quantities which are necessary to
provide reserve stocks for distributors
and retailers.
DEA calculated the pseudoephedrine
(for sale) assessment by the following
methodology:
2009 sales + reserve stock + export
requirement ¥ existing inventory =
AAN
286,516 + (50%*286,516) + 36,360 ¥
62,748 = 403,386 kg
pseudoephedrine (for sale) for 2010.
This calculation suggests that DEA’s
2010 Assessment of Annual Needs for
pseudoephedrine (for sale) should be
established at 404,000 kg. Accordingly,
DEA is establishing the 2010
Assessment of Annual Needs for
pseudoephedrine (for sale) at 404,000
kg.
Phenylpropanolamine (for Conversion)
Data
PHENYLPROPANOLAMINE (FOR CONVERSION) DATA FOR 2010 ASSESSMENT OF ANNUAL NEEDS
[Kilograms]
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Phenylpropanolamine (for conversion)
2007
Sales * (DEA 250) ....................................................................................................................
Imports ** (DEA 488) ...............................................................................................................
Export Declarations (DEA 486) ...............................................................................................
Inventory * (DEA 250) ..............................................................................................................
APQ Amphetamine *** .............................................................................................................
3,621
1,000
0
3,581
17,000
2008
10,834
3,225
0
5,533
22,000
2009
13,582
6,514
0
4,103
22,000
* Reported sales and inventory from applications for 2010 procurement quotas (DEA 250) received as of October 21, 2009.
** Reported imports from applications for 2010 import quotas (DEA 488) received as of October 21, 2009.
*** Amphetamine Aggregate Production Quota History https://www.deadiversion.usdoj.gov/quotas/quota_history.htm.
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2010
Request
14,900
7,108
n/a
n/a
n/a
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Federal Register / Vol. 74, No. 223 / Friday, November 20, 2009 / Notices
Phenylpropanolamine (for Conversion)
Analysis
As of October 21, 2009, DEA
registered manufacturers of
phenylpropanolamine (for conversion)
requested the authority to purchase a
total of 14,900 kg phenylpropanolamine
for the manufacture of amphetamine.
DEA registered manufacturers of
phenylpropanolamine reported sales of
phenylpropanolamine totaling
approximately 10,834 kg in 2008 and
13,582 kg in 2009; this represent a 20%
increase in sales reported by these firms
from 2008 to 2009. There were no
reported exports of
phenylpropanolamine (for conversion).
DEA has not received any requests to
synthesize phenylpropanolamine in
2010. DEA has concluded that the 2009
sales of phenylpropanolamine (for
conversion), 13,582 kg, fairly represents
U.S. requirements for 2010 and zero kg
fairly represents the export
requirements of phenylpropanolamine
(for conversion).
Phenylpropanolamine is used in the
production of legitimate amphetamine
products. DEA has established an
Aggregate Production Quota (APQ) for
amphetamine of 22,000 kg for 2009.
DEA notes amphetamine is primarily
manufactured by the conversion of the
schedule II controlled substance
phenylacetone to amphetamine. DEA
did not consider this alternative
synthesis route in the 2009 Assessment
of Annual Needs for
phenylpropanolamine (for conversion).
DEA calculated the
phenylpropanolamine (for conversion)
for the manufacture of amphetamine as
follows:
(2009 sales) + reserve stock + export
requirement ¥ inventory = AAN
(13,582) + 50%*(13,582) + 0 ¥ 4,103 =
16,270 kg PPA (for conversion) for
2010
This calculation suggests that DEA’s
2010 Assessment of Annual Needs for
phenylpropanolamine (for conversion)
should be established at 16,500 kg.
Accordingly, DEA is establishing the
2010 Assessment of Annual Needs for
phenylpropanolamine (for conversion)
at 16,500 kg.
Ephedrine (for Conversion) Data
EPHEDRINE (FOR CONVERSION) DATA FOR 2010 ASSESSMENT OF ANNUAL NEEDS
[Kilograms]
Ephedrine
(for conversion)
2007
Sales * (DEA 250) ....................................................................................................................
Imports ** (DEA 488) ...............................................................................................................
Inventory * (DEA 250) ..............................................................................................................
APQ Methamphetamine *** ......................................................................................................
99,622
99,594
13
3,130
2008
64,522
64,128
160
3,130
2009
40,403
39,897
254
3,130
2010
Request
40,646
40,000
n/a
n/a
* Reported sales and inventory from applications for 2010 procurement quotas (DEA 250) and manufacturing quotas (DEA 189) received as of
October 21, 2009.
** Reported imports from applications for 2010 import quotas (DEA 488) received as of October 21, 2009.
*** Methamphetamine Aggregate Production Quota History https://www.deadiversion.usdoj.gov/quotas/quota_history.htm.
srobinson on DSKHWCL6B1PROD with NOTICES
Ephedrine (for Conversion) Analysis
As of October 21, 2009, DEA
registered manufacturers of ephedrine
(for conversion) requested the authority
to purchase a total of 40,646 kg
ephedrine (for conversion) for the
manufacture of two substances:
methamphetamine and
pseudoephedrine.
DEA considered the ephedrine (for
conversion) requirements for the
manufacture of methamphetamine and
pseudoephedrine. DEA has determined
that the established assessments for the
manufacture of these two substances are
the best indicators of the need for
ephedrine (for conversion). The
assessment of need for
methamphetamine was determined by
DEA as the Aggregate Production Quota
(APQ) for methamphetamine. DEA
determined that the estimated sales of
pseudoephedrine, as referenced in the
Assessment of Annual Needs (AAN) for
pseudoephedrine, represents the need
for pseudoephedrine. Reported sales of
ephedrine (for conversion) are included
as reference to DEA’s methodology.
DEA further considered the reported
conversion yields of these substances.
DEA registered manufacturers reported
a conversion yield of 39% for the
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synthesis of methamphetamine from
ephedrine. DEA cannot disclose the
conversion yield for the synthesis of
pseudoephedrine because this
information is proprietary to the one
manufacturer involved in this type of
manufacturing.
DEA calculated the ephedrine (for
conversion) assessment by the following
methodology:
methamphetamine requirement +
pseudoephedrine requirement =
AAN
DEA calculated the ephedrine (for
conversion) requirement for the
manufacture of methamphetamine as
follows:
(2009 APQ methamphetamine/39%
yield) + reserve stock ¥ inventory
= ephedrine (for manufacture of
methamphetamine)
(3,130/39% yield) + 50%*(3,130/39%
yield) ¥ 46 = 11,993 kg
The calculation for the ephedrine (for
conversion) requirement for the
manufacture of pseudoephedrine leads
to a result of 63,157 kg. DEA cannot
provide the details of the calculation
because this would reveal the
conversion yield for the synthesis of
pseudoephedrine, which is proprietary
to the one manufacturer involved in this
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Sfmt 4703
type of manufacturing. Therefore, the
assessment for ephedrine was
determined by the sum total of the
ephedrine (for conversion) requirements
as described by the following
methodology:
methamphetamine requirement +
pseudoephedrine requirement =
AAN
11,993 + 63,157 = 75,150 kg ephedrine
(for conversion) for 2010
This calculation suggests that DEA’s
2010 Assessment of Annual Needs for
ephedrine (for conversion) should be
established at 75,000 kg. Accordingly,
DEA is establishing the 2010
Assessment of Annual Needs for
ephedrine (for conversion) at 75,000 kg.
Conclusion
DEA did not receive any comments on
its Assessment of Annual Needs for
ephedrine (for sale), ephedrine (for
conversion), pseudoephedrine (for sale),
phenylpropanolamine (for sale) and
phenylpropanolamine (for conversion).
DEA is finalizing the assessments for
these List I chemicals based on
information contained in additional
applications for 2010 import,
manufacturing and procurement quotas
provided by DEA registered importers
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Federal Register / Vol. 74, No. 223 / Friday, November 20, 2009 / Notices
and manufacturers whose quota
applications were received as of October
21, 2009.
Therefore, under the authority vested
in the Attorney General by Section 306
of the CSA (21 U.S.C. 826), and
delegated to the Administrator of the
DEA by 28 CFR 0.100, and redelegated
to the Deputy Administrator pursuant to
28 CFR 0.104, the Deputy Administrator
hereby orders that the 2010 Assessment
of Annual Needs for ephedrine,
pseudoephedrine, and
phenylpropanolamine, expressed in
kilograms of anhydrous acid or base, be
established as follows:
List I chemical
Established 2010
assessment of
annual needs
Ephedrine (for sale) ......
Phenylpropanolamine
(for sale) ....................
Pseudoephedrine (for
sale) ..........................
Phenylpropanolamine
(for conversion) .........
Ephedrine (for conversion) ..........................
3,600
6,400
404,000
16,500
private sector, of $120,000,000 or more
(adjusted for inflation) in any one year,
and will not significantly or uniquely
affect small governments. Therefore, no
actions were deemed necessary under
the provisions of the Unfunded
Mandates Reform Act of 1995.
This action is not a major rule as
defined by Section 804 of the Small
Business Regulatory Enforcement
Fairness Act of 1996 (Congressional
Review Act). This action will not result
in an annual effect on the economy of
$100,000,000 or more; a major increase
in costs or prices; or significant adverse
effects on competition, employment,
investment, productivity, innovation, or
on the ability of United States-based
companies to compete with foreignbased companies in domestic and
export markets.
Dated: November 11, 2009.
Michele M. Leonhart,
Deputy Administrator.
[FR Doc. E9–27890 Filed 11–19–09; 8:45 am]
BILLING CODE 4410–09–P
75,000
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DEPARTMENT OF LABOR
The Office of Management and Budget
has determined that notices of quotas
are not subject to centralized review
under Executive Order 12866.
This action does not preempt or
modify any provision of state law; nor
does it impose enforcement
responsibilities on any state; nor does it
diminish the power of any state to
enforce its own laws. Accordingly, this
action does not have any federalism
implications warranting the application
of Executive Order 13132.
The Deputy Administrator hereby
certifies that this action will not have a
significant economic impact upon a
substantial number of small entities
whose interests must be considered
under the Regulatory Flexibility Act, 5
U.S.C. 601–612. The establishment of
Assessment of Annual Needs for
ephedrine, pseudoephedrine, and
phenylpropanolamine is mandated by
law. The assessments are necessary to
provide for the estimated medical,
scientific, research and industrial needs
of the United States; for lawful export
requirements; and the establishment
and maintenance of reserve stocks.
Accordingly, the Deputy Administrator
has determined that this action does not
require a regulatory flexibility analysis.
This action meets the applicable
standards set forth in Sections 3(a) and
3(b)(2) of Executive Order 12988 Civil
Justice Reform.
This action will not result in the
expenditure by State, local, and tribal
governments, in the aggregate, or by the
VerDate Nov<24>2008
17:03 Nov 19, 2009
Jkt 220001
Bureau of Labor Statistics
Solicitation of Comments on a
Proposal To Revise Method for
Estimation of Monthly Labor Force
Statistics for Certain Subnational
Areas
AGENCY:
Bureau of Labor Statistics,
Labor.
ACTION: Notice of solicitation of
comments.
SUMMARY: The Department of Labor,
through the Bureau of Labor Statistics
(BLS), is responsible for the
development and publication of local
area labor force statistics. This program
includes the issuance of monthly
estimates of the labor force,
employment, unemployment, and the
unemployment rate for each State and
labor market area in the nation. A
hierarchy of estimation methods is used
to produce the 7,300 estimates covered
by the Local Area Unemployment
Statistics (LAUS) program (https://
thomas.loc.gov/bss/d111/
d111laws.html), based on the
availability and quality of data from the
Current Population Survey (CPS). The
strongest estimating method—signalplus-noise models with real-time
benchmarking for current estimation
and historical benchmarking—is
employed for all States and the District
of Columbia, the Los Angeles-Long
Beach-Glendale, CA metropolitan
division, New York City, and the
PO 00000
Frm 00064
Fmt 4703
Sfmt 4703
respective balances of New York and
California. Models are also employed for
five additional substate areas and their
State balances. The areas are: the
Chicago-Naperville-Joliet, IL
metropolitan division; the ClevelandElyria-Mentor, OH metropolitan area;
the Detroit-Warren-Livonia, MI
metropolitan area; the Miami-Miami
Beach-Kendall, FL metropolitan
division; and the Seattle-BellevueEverett, WA metropolitan division.
As part of a program of continuing
improvements in LAUS methodology,
BLS is proposing the implementation of
smoothed-seasonally-adjusted series for
current and historical estimates. This
approach is an innovative alternative to
an annual historical benchmark for
seasonally-adjusted State estimates that
will address longstanding issues related
to end-of-year revision, and also will
enhance the analytical capability of the
estimates.
BLS proposes to implement the
revised methodology beginning with
January 2010 current estimates, with
historical estimates revised to 1976 for
States, the District of Columbia, Los
Angeles, New York City, and the
respective balances of California and
New York. The five other substate
model estimates will be revised back to
1983.
DATES: Submit written comments on or
before December 21, 2009.
ADDRESSES: Send comments to Sharon
Brown, Division Chief, Division of Local
Area Unemployment Statistics, Bureau
of Labor Statistics, Room 4675, 2
Massachusetts Avenue, NE.,
Washington, DC 20212, by FAX at 202–
691–6459, or by e-mail at
Brown.Sharon@bls.gov.
FOR FURTHER INFORMATION CONTACT:
Sharon Brown, Division Chief, Division
of Local Area Unemployment Statistics,
Bureau of Labor Statistics, Room 4675,
2 Massachusetts Avenue, NE.,
Washington DC 20212, by telephone at
202–691–6390, or by e-mail at
LAUSRM@bls.gov.
SUPPLEMENTARY INFORMATION:
I. Background
The Department of Labor, through the
BLS, has been responsible for the
development and publication of local
area labor force statistics since 1972. In
1978, the BLS broadened the use data
from the CPS in the LAUS program by
extending the annual reliability
criterion to monthly data. Monthly CPS
levels were used directly for the 10
largest States, two substate areas (New
York City, Los Angeles), and the
respective balances of New York and
California. In 1985, the sample redesign
E:\FR\FM\20NON1.SGM
20NON1
Agencies
[Federal Register Volume 74, Number 223 (Friday, November 20, 2009)]
[Notices]
[Pages 60294-60298]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-27890]
[[Page 60294]]
-----------------------------------------------------------------------
DEPARTMENT OF JUSTICE
Drug Enforcement Administration
[Docket No. DEA-326F]
Established Assessment of Annual Needs for the List I Chemicals
Ephedrine, Pseudoephedrine, and Phenylpropanolamine for 2010
AGENCY: Drug Enforcement Administration (DEA), Justice.
ACTION: Notice of Assessment of Annual Needs for 2010.
-----------------------------------------------------------------------
SUMMARY: This notice establishes the initial 2010 Assessment of Annual
Needs for certain List I chemicals in accordance with the Combat
Methamphetamine Epidemic Act of 2005 (CMEA), enacted on March 9, 2006.
DATES: Effective Date: November 20, 2009.
FOR FURTHER INFORMATION CONTACT: Christine A. Sannerud, Ph.D., Chief,
Drug and Chemical Evaluation Section, Drug Enforcement Administration,
8701 Morrissette Drive, Springfield, Virginia 22152, Telephone: (202)
307-7183.
SUPPLEMENTARY INFORMATION: Section 713 of the Combat Methamphetamine
Epidemic Act of 2005 (Title VII of Pub. L. 109-177) (CMEA) amended
Section 306 of the Controlled Substances Act (CSA) (21 U.S.C. 826) by
adding ephedrine, pseudoephedrine, and phenylpropanolamine to existing
language to read as follows: ``The Attorney General shall determine the
total quantity and establish production quotas for each basic class of
controlled substance in schedules I and II and for ephedrine,
pseudoephedrine, and phenylpropanolamine to be manufactured each
calendar year to provide for the estimated medical, scientific,
research, and industrial needs of the United States, for lawful export
requirements, and for the establishment and maintenance of reserve
stocks.'' Further, section 715 of the CMEA amended 21 U.S.C. 952
``Importation of Controlled Substances'' by adding the same List I
chemicals to the existing language in paragraph (a), and by adding a
new paragraph (d) to read as follows:
(a) Controlled substances in schedule I or II and narcotic drugs
in schedule III, IV, or V; exceptions
It shall be unlawful to import into the customs territory of the
United States from any place outside thereof (but within the United
States), or to import into the United States from any place outside
thereof, any controlled substance in schedule I or II of subchapter
I of this chapter, or any narcotic drug in schedule III, IV, or V of
subchapter I of this chapter, or ephedrine, pseudoephedrine, and
phenylpropanolamine, except that--
(1) such amounts of crude opium, poppy straw, concentrate of
poppy straw, and coca leaves, and of ephedrine, pseudoephedrine, and
phenylpropanolamine, as the Attorney General finds to be necessary
to provide for medical, scientific, or other legitimate purposes * *
* may be so imported under such regulations as the Attorney General
shall prescribe.
(d)(1) With respect to a registrant under section 958 who is
authorized under subsection (a)(1) to import ephedrine,
pseudoephedrine, or phenylpropanolamine, at any time during the year
the registrant may apply for an increase in the amount of such
chemical that the registrant is authorized to import, and the
Attorney General may approve the application if the Attorney General
determines that the approval is necessary to provide for medical,
scientific, or other legitimate purposes regarding the chemical.
Editor's Note: This excerpt of the amendment is published for
the convenience of the reader. The official text is published at 21
U.S.C. 952(a) and (d)(1).
Background and Legal Authority
Section 713 of the CMEA of 2005 (Title VII of Pub. L. 109-177)
amended section 306 of the CSA (21 U.S.C. 826) to require that the
Attorney General establish quotas to provide for the annual needs for
ephedrine, pseudoephedrine, and phenylpropanolamine. Section 715 of the
CMEA amended 21 U.S.C. 952 by adding ephedrine, pseudoephedrine, and
phenylpropanolamine to the existing language concerning importation of
controlled substances.
The 2010 Assessment of Annual Needs represents those quantities of
ephedrine, pseudoephedrine, and phenylpropanolamine which may be
manufactured domestically and/or imported into the United States in
2010 to provide adequate supplies of each chemical for: The estimated
medical, scientific, research, and industrial needs of the United
States; lawful export requirements; and the establishment and
maintenance of reserve stocks.
The responsibility for establishing the assessment has been
delegated to the Administrator of the DEA by 28 CFR 0.100. The
Administrator, in turn, has redelegated this function to the Deputy
Administrator, pursuant to 28 CFR 0.104.
On September 14, 2009, a notice entitled, ``Assessment of Annual
Needs for the List I Chemicals Ephedrine, Pseudoephedrine, and
Phenylpropanolamine for 2010'' was published in the Federal Register
(74 FR 47021). That notice proposed the 2010 Assessment of Annual Needs
for ephedrine (for sale), ephedrine (for conversion), pseudoephedrine
(for sale), phenylpropanolamine (for sale) and phenylpropanolamine (for
conversion). All interested persons were invited to comment on or
object to the assessments on or before October 14, 2009.
Comments Received
DEA did not receive any comments to the Assessment of Annual Needs
for ephedrine (for sale), ephedrine (for conversion), pseudoephedrine
(for sale), phenylpropanolamine (for sale) and phenylpropanolamine (for
conversion). DEA is finalizing the assessments for these List I
chemicals based on information contained in additional applications for
2010 import, manufacturing and procurement quotas provided by DEA
registered importers and manufacturers whose quota applications were
received as of October 21, 2009. DEA is providing the data used in
developing the established assessments for each of the listed
chemicals. DEA also notes that the Assessment of Annual Needs may be
adjusted at a later date pursuant to 21 CFR 1315.13.
Underlying Data and DEA's Analysis
In determining the final 2010 assessments, DEA has considered the
total net disposals (i.e., sales) of the List I chemicals for the
current and preceding two years, actual and estimated inventories,
projected demand (2010), industrial use, and export requirements from
data provided by DEA registered manufacturers and importers in
procurement quota applications (DEA 250), from manufacturing quota
applications (DEA 189), and from import quota applications (DEA 488).
\1\
---------------------------------------------------------------------------
\1\ Applications and instructions for procurement, import and
manufacturing quotas can be found at https://www.deadiversion.usdoj.gov/quotas/quota_apps.htm.
---------------------------------------------------------------------------
DEA further considered trends as derived from information provided
in applications for import, manufacturing, and procurement quotas and
in import and export declarations. DEA notes that the inventory,
acquisitions (purchases) and disposition (sales) data provided by DEA
registered manufacturers and importers reflects the most current
information available.
Ephedrine Data
[[Page 60295]]
Ephedrine (for Sale) Data for 2010 Assessment of Annual Needs
[Kilograms]
----------------------------------------------------------------------------------------------------------------
2010
Ephedrine 2007 2008 2009 Request
----------------------------------------------------------------------------------------------------------------
Sales * (DEA 250)............................................... 2,743 2,508 2,431 2,861
Imports ** (DEA 488)............................................ 9,595 1,686 2,160 1,552
Export Declarations (DEA 486)................................... 168 91 10 n/a
Inventory * (DEA 250)........................................... 1,332 592 181 n/a
IMS *** (NSP)................................................... 1,235 1,460 n/a n/a
----------------------------------------------------------------------------------------------------------------
* Reported sales and inventory from applications for 2010 procurement quotas (DEA 250).
** Reported imports from applications for 2010 import quotas (DEA 488).
*** IMS Health, IMS National Sales Perspectives\TM\, January 2007 to December 2008, Retail and Non-Retail
Channels, Data Extracted October 21, 2009.
Ephedrine Analysis
DEA calculated the established 2010 Assessment of Annual Needs for
ephedrine using the calculation developed to determine the 2009
Assessment of Annual Needs. This calculation considers the criteria
defined in 21 U.S.C. 826: estimated medical, scientific, research, and
industrial needs of the United States; lawful export requirements; and
the establishment and maintenance of reserve stocks.
As of October 21, 2009, DEA registered manufacturers of dosage form
products containing ephedrine requested the authority to purchase a
total of 2,861 kg ephedrine (for sale) in 2010. DEA registered
manufacturers of ephedrine reported sales totaling approximately 2,508
kg in 2008 and 2,431 kg in 2009; this represents a 3% decrease in sales
reported by these firms from 2008 to 2009. Additionally, exports of
ephedrine products from the United States as reported on export
declarations (DEA 486) totaled 91 kg in 2008 and 10 kg in 2009; this
represents a 90% decrease from levels observed in 2008. The average of
the 2008 and 2009 exports of ephedrine products is approximately 51 kg.
DEA also considered information on trends in the national rate of net
disposals from sales data provided by IMS Health's National Sales
Perspective\TM\ (NSP) database. IMS NSP data reported the average sales
volume of ephedrine for the calendar years 2007 and 2008 to be
approximately 1,348 kg. DEA notes that the 2009 sales figure reported
by manufacturers (2,431 kg) is higher than the average sales reported
by IMS for the previous two years (1,348 kg). This is expected because
a manufacturer's reported sales include quantities which are necessary
to provide reserve stocks for distributors and retailers. DEA, in
considering the manufacturer's reported sales, thus believes that 2,431
kg fairly represents the U.S. sales of ephedrine for 2010 and that 51
kg fairly represents the export requirements of ephedrine.
For the establishment and maintenance of reserve stocks, DEA notes
that 21 CFR 1315.24 allows for an inventory allowance (reserve stock)
of 50% of a manufacturer's estimated sales. DEA also considered the
estimated 2009 year end inventory as reported by DEA registrants in
determining the inventory allowance.
DEA calculated the ephedrine (for sale) assessment by the following
methodology:
2009 sales + reserve stock + export requirement - existing inventory =
AAN
2,431 + (50%*2,431) + 51 - 181 = 3,517 kg ephedrine (for sale) for 2010
This calculation suggests that DEA's Assessment of Annual Needs for
ephedrine should be established as 3,600 kg. Accordingly, DEA is
establishing the 2010 Assessment of Annual Needs for ephedrine (for
sale) at 3,600 kg.
Phenylpropanolamine (for Sale) Data
Phenylpropanolamine (for Sale) Data for 2010 Assessment of Annual Needs
[Kilograms]
----------------------------------------------------------------------------------------------------------------
2010
Phenylpropanolamine (for sale) 2007 2008 2009 Request
----------------------------------------------------------------------------------------------------------------
Sales * (DEA 250)............................................... 3,770 4,274 4,638 6,288
Imports ** (DEA 488)............................................ 73 79 134 263
Export Declarations (DEA 486)................................... 1,002 0 3 n/a
Inventory * (DEA 250)........................................... 3,597 2,093 596 n/a
----------------------------------------------------------------------------------------------------------------
* Reported sales and inventory from applications for 2010 procurement quotas (DEA 250) received as of October
21, 2009.
** Reported imports from applications for 2010 import quotas (DEA 488) received as of October 21, 2009.
Phenylpropanolamine (for Sale) Analysis
DEA utilized the same general methodology and calculation to
establish the assessment for phenylpropanolamine (for sale) as was
described for the assessment of ephedrine (for sale), above.
As of October 21, 2009, DEA registered manufacturers of dosage form
products containing phenylpropanolamine requested the authority to
purchase 6,288 kg phenylpropanolamine (for sale) in 2010. DEA
registered manufacturers of phenylpropanolamine reported sales totaling
approximately 4,274 kg in 2008 and 4,638 kg in 2009; this represents an
8% increase in sales reported by these firms from 2008 to 2009.
Additionally, exports of phenylpropanolamine products from the U.S. as
reported on export declarations (DEA 486) totaled 0 kg in 2008 and 3 kg
in 2009; this represents a 3 kg increase from levels observed in 2008.
The average of the 2008 and 2009 exports of phenylpropanolamine
products is approximately 2 kg. DEA thus believes that 4,638 kg fairly
represents the U.S. sales of phenylpropanolamine for 2010 and that 2 kg
fairly represents the export requirements of phenylpropanolamine.
[[Page 60296]]
DEA notes that phenylpropanolamine is sold primarily as a veterinary
product for the treatment for canine incontinence and is not approved
for human consumption. IMS Health's NSP Data does not capture sales of
phenylpropanolamine to these channels and is therefore not included.
DEA calculated the phenylpropanolamine (for sale) assessment by the
following methodology:
2009 sales + reserve stock + export requirement - existing inventory =
AAN
4,638 + (50%*4,638) + 2 - 596 = 6,363 kg phenylpropanolamine (for sale)
for 2010
This calculation suggests that DEA's 2010 Assessment of Annual
Needs for phenylpropanolamine (for sale) should be established as 6,400
kg. Accordingly, DEA is establishing the 2010 Assessment of Annual
Needs for phenylpropanolamine (for sale) at 6,400 kg.
Pseudoephedrine (for Sale) Data
Pseudoephedrine (for Sale) Data for 2010 Assessment of Annual Needs
[Kilograms]
----------------------------------------------------------------------------------------------------------------
2010
Pseudoephedrine (for sale) 2007 2008 2009 Request
----------------------------------------------------------------------------------------------------------------
Sales * (DEA 250)............................................... 238,608 223,196 286,516 225,116
Sales * (DEA 189)............................................... 100,300 64,781 33,600 32,760
Imports ** (DEA 488)............................................ 232,822 170,995 267,808 233,569
Export Declarations (DEA 486)................................... 42,132 47,194 25,526 n/a
Inventory * (DEA 250)........................................... 135,097 119,515 62,748 n/a
IMS *** (NSP)................................................... 180,204 149,159 n/a n/a
----------------------------------------------------------------------------------------------------------------
* Reported sales and inventory from applications for 2010 procurement quotas (DEA 250) and manufacturing quotas
(DEA 189) received as of October 21, 2009.
** Reported imports from applications for 2010 import quotas (DEA 488) received as of October 21, 2009.
*** IMS Health, IMS National Sales PerspectivesTM, January 2007 to December 2008, Retail and Non-Retail
Channels, Data Extracted October 21, 2009.
Pseudoephedrine (for Sale) Analysis
DEA utilized the same general methodology and calculations to
establish the assessment for pseudoephedrine (for sale) as were
described for the assessment of ephedrine (for sale), above.
As of October 21, 2009, DEA registered manufacturers of dosage form
products containing pseudoephedrine requested the authority to purchase
225,116 kg pseudoephedrine. DEA registered manufacturers of
pseudoephedrine reported sales totaling approximately 223,196 kg in
2008 and 286,516 kg in 2009; this represents a 22% increase in sales
reported by these firms from 2008 to 2009. During the same period
exports of pseudoephedrine products from the U.S. as reported on export
declarations (DEA 486) totaled 47,194 kg in 2008 and 25,526 kg in 2009;
this represents a 54% decrease from levels observed in 2008. The
average of the 2008 and 2009 exports is 36,360 kg. Additionally, DEA
considered information on trends in the national rate of net disposals
from sales data provided by IMS Health. IMS NSP data reported the
average retail sales volume of pseudoephedrine for the calendar years
2007 and 2008 to be approximately 164,682 kg. DEA thus believes that
286,516 kg of sales reported by manufacturers fairly represents the
U.S. sales of pseudoephedrine for 2010 and that 36,360 kg fairly
represents the export requirements of pseudoephedrine. DEA notes that
manufacturer reported sales for 2009 (286,516 kg) are higher than the
average retail sales reported by IMS for the previous two years
(164,682 kg). This is expected because a manufacturer's reported sales
include quantities which are necessary to provide reserve stocks for
distributors and retailers.
DEA calculated the pseudoephedrine (for sale) assessment by the
following methodology:
2009 sales + reserve stock + export requirement - existing inventory =
AAN
286,516 + (50%*286,516) + 36,360 - 62,748 = 403,386 kg pseudoephedrine
(for sale) for 2010.
This calculation suggests that DEA's 2010 Assessment of Annual
Needs for pseudoephedrine (for sale) should be established at 404,000
kg. Accordingly, DEA is establishing the 2010 Assessment of Annual
Needs for pseudoephedrine (for sale) at 404,000 kg.
Phenylpropanolamine (for Conversion) Data
Phenylpropanolamine (for Conversion) Data for 2010 Assessment of Annual Needs
[Kilograms]
----------------------------------------------------------------------------------------------------------------
2010
Phenylpropanolamine (for conversion) 2007 2008 2009 Request
----------------------------------------------------------------------------------------------------------------
Sales * (DEA 250)............................................... 3,621 10,834 13,582 14,900
Imports ** (DEA 488)............................................ 1,000 3,225 6,514 7,108
Export Declarations (DEA 486)................................... 0 0 0 n/a
Inventory * (DEA 250)........................................... 3,581 5,533 4,103 n/a
APQ Amphetamine ***............................................. 17,000 22,000 22,000 n/a
----------------------------------------------------------------------------------------------------------------
* Reported sales and inventory from applications for 2010 procurement quotas (DEA 250) received as of October
21, 2009.
** Reported imports from applications for 2010 import quotas (DEA 488) received as of October 21, 2009.
*** Amphetamine Aggregate Production Quota History https://www.deadiversion.usdoj.gov/quotas/quota_history.htm.
[[Page 60297]]
Phenylpropanolamine (for Conversion) Analysis
As of October 21, 2009, DEA registered manufacturers of
phenylpropanolamine (for conversion) requested the authority to
purchase a total of 14,900 kg phenylpropanolamine for the manufacture
of amphetamine. DEA registered manufacturers of phenylpropanolamine
reported sales of phenylpropanolamine totaling approximately 10,834 kg
in 2008 and 13,582 kg in 2009; this represent a 20% increase in sales
reported by these firms from 2008 to 2009. There were no reported
exports of phenylpropanolamine (for conversion). DEA has not received
any requests to synthesize phenylpropanolamine in 2010. DEA has
concluded that the 2009 sales of phenylpropanolamine (for conversion),
13,582 kg, fairly represents U.S. requirements for 2010 and zero kg
fairly represents the export requirements of phenylpropanolamine (for
conversion).
Phenylpropanolamine is used in the production of legitimate
amphetamine products. DEA has established an Aggregate Production Quota
(APQ) for amphetamine of 22,000 kg for 2009. DEA notes amphetamine is
primarily manufactured by the conversion of the schedule II controlled
substance phenylacetone to amphetamine. DEA did not consider this
alternative synthesis route in the 2009 Assessment of Annual Needs for
phenylpropanolamine (for conversion).
DEA calculated the phenylpropanolamine (for conversion) for the
manufacture of amphetamine as follows:
(2009 sales) + reserve stock + export requirement - inventory = AAN
(13,582) + 50%*(13,582) + 0 - 4,103 = 16,270 kg PPA (for conversion)
for 2010
This calculation suggests that DEA's 2010 Assessment of Annual
Needs for phenylpropanolamine (for conversion) should be established at
16,500 kg. Accordingly, DEA is establishing the 2010 Assessment of
Annual Needs for phenylpropanolamine (for conversion) at 16,500 kg.
Ephedrine (for Conversion) Data
Ephedrine (for Conversion) Data for 2010 Assessment of Annual Needs
[Kilograms]
----------------------------------------------------------------------------------------------------------------
2010
Ephedrine (for conversion) 2007 2008 2009 Request
----------------------------------------------------------------------------------------------------------------
Sales * (DEA 250)............................................... 99,622 64,522 40,403 40,646
Imports ** (DEA 488)............................................ 99,594 64,128 39,897 40,000
Inventory * (DEA 250)........................................... 13 160 254 n/a
APQ Methamphetamine ***......................................... 3,130 3,130 3,130 n/a
----------------------------------------------------------------------------------------------------------------
* Reported sales and inventory from applications for 2010 procurement quotas (DEA 250) and manufacturing quotas
(DEA 189) received as of October 21, 2009.
** Reported imports from applications for 2010 import quotas (DEA 488) received as of October 21, 2009.
*** Methamphetamine Aggregate Production Quota History https://www.deadiversion.usdoj.gov/quotas/quota_history.htm.
Ephedrine (for Conversion) Analysis
As of October 21, 2009, DEA registered manufacturers of ephedrine
(for conversion) requested the authority to purchase a total of 40,646
kg ephedrine (for conversion) for the manufacture of two substances:
methamphetamine and pseudoephedrine.
DEA considered the ephedrine (for conversion) requirements for the
manufacture of methamphetamine and pseudoephedrine. DEA has determined
that the established assessments for the manufacture of these two
substances are the best indicators of the need for ephedrine (for
conversion). The assessment of need for methamphetamine was determined
by DEA as the Aggregate Production Quota (APQ) for methamphetamine. DEA
determined that the estimated sales of pseudoephedrine, as referenced
in the Assessment of Annual Needs (AAN) for pseudoephedrine, represents
the need for pseudoephedrine. Reported sales of ephedrine (for
conversion) are included as reference to DEA's methodology.
DEA further considered the reported conversion yields of these
substances. DEA registered manufacturers reported a conversion yield of
39% for the synthesis of methamphetamine from ephedrine. DEA cannot
disclose the conversion yield for the synthesis of pseudoephedrine
because this information is proprietary to the one manufacturer
involved in this type of manufacturing.
DEA calculated the ephedrine (for conversion) assessment by the
following methodology:
methamphetamine requirement + pseudoephedrine requirement = AAN
DEA calculated the ephedrine (for conversion) requirement for the
manufacture of methamphetamine as follows:
(2009 APQ methamphetamine/39% yield) + reserve stock - inventory =
ephedrine (for manufacture of methamphetamine)
(3,130/39% yield) + 50%*(3,130/39% yield) - 46 = 11,993 kg
The calculation for the ephedrine (for conversion) requirement for
the manufacture of pseudoephedrine leads to a result of 63,157 kg. DEA
cannot provide the details of the calculation because this would reveal
the conversion yield for the synthesis of pseudoephedrine, which is
proprietary to the one manufacturer involved in this type of
manufacturing. Therefore, the assessment for ephedrine was determined
by the sum total of the ephedrine (for conversion) requirements as
described by the following methodology:
methamphetamine requirement + pseudoephedrine requirement = AAN
11,993 + 63,157 = 75,150 kg ephedrine (for conversion) for 2010
This calculation suggests that DEA's 2010 Assessment of Annual
Needs for ephedrine (for conversion) should be established at 75,000
kg. Accordingly, DEA is establishing the 2010 Assessment of Annual
Needs for ephedrine (for conversion) at 75,000 kg.
Conclusion
DEA did not receive any comments on its Assessment of Annual Needs
for ephedrine (for sale), ephedrine (for conversion), pseudoephedrine
(for sale), phenylpropanolamine (for sale) and phenylpropanolamine (for
conversion). DEA is finalizing the assessments for these List I
chemicals based on information contained in additional applications for
2010 import, manufacturing and procurement quotas provided by DEA
registered importers
[[Page 60298]]
and manufacturers whose quota applications were received as of October
21, 2009.
Therefore, under the authority vested in the Attorney General by
Section 306 of the CSA (21 U.S.C. 826), and delegated to the
Administrator of the DEA by 28 CFR 0.100, and redelegated to the Deputy
Administrator pursuant to 28 CFR 0.104, the Deputy Administrator hereby
orders that the 2010 Assessment of Annual Needs for ephedrine,
pseudoephedrine, and phenylpropanolamine, expressed in kilograms of
anhydrous acid or base, be established as follows:
------------------------------------------------------------------------
Established 2010
List I chemical assessment of
annual needs
------------------------------------------------------------------------
Ephedrine (for sale)................................ 3,600
Phenylpropanolamine (for sale)...................... 6,400
Pseudoephedrine (for sale).......................... 404,000
Phenylpropanolamine (for conversion)................ 16,500
Ephedrine (for conversion).......................... 75,000
------------------------------------------------------------------------
The Office of Management and Budget has determined that notices of
quotas are not subject to centralized review under Executive Order
12866.
This action does not preempt or modify any provision of state law;
nor does it impose enforcement responsibilities on any state; nor does
it diminish the power of any state to enforce its own laws.
Accordingly, this action does not have any federalism implications
warranting the application of Executive Order 13132.
The Deputy Administrator hereby certifies that this action will not
have a significant economic impact upon a substantial number of small
entities whose interests must be considered under the Regulatory
Flexibility Act, 5 U.S.C. 601-612. The establishment of Assessment of
Annual Needs for ephedrine, pseudoephedrine, and phenylpropanolamine is
mandated by law. The assessments are necessary to provide for the
estimated medical, scientific, research and industrial needs of the
United States; for lawful export requirements; and the establishment
and maintenance of reserve stocks. Accordingly, the Deputy
Administrator has determined that this action does not require a
regulatory flexibility analysis.
This action meets the applicable standards set forth in Sections
3(a) and 3(b)(2) of Executive Order 12988 Civil Justice Reform.
This action will not result in the expenditure by State, local, and
tribal governments, in the aggregate, or by the private sector, of
$120,000,000 or more (adjusted for inflation) in any one year, and will
not significantly or uniquely affect small governments. Therefore, no
actions were deemed necessary under the provisions of the Unfunded
Mandates Reform Act of 1995.
This action is not a major rule as defined by Section 804 of the
Small Business Regulatory Enforcement Fairness Act of 1996
(Congressional Review Act). This action will not result in an annual
effect on the economy of $100,000,000 or more; a major increase in
costs or prices; or significant adverse effects on competition,
employment, investment, productivity, innovation, or on the ability of
United States-based companies to compete with foreign-based companies
in domestic and export markets.
Dated: November 11, 2009.
Michele M. Leonhart,
Deputy Administrator.
[FR Doc. E9-27890 Filed 11-19-09; 8:45 am]
BILLING CODE 4410-09-P