[Federal Register Volume 64, Number 107 (Friday, June 4, 1999)]
[Notices]
[Pages 30063-30064]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-14099]
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DEPARTMENT OF JUSTICE
Drug Enforcement Administration
Neil Laboratories, Inc.; Suspension of Shipment
On August 7, 1998, the then-Acting Deputy Administrator of the Drug
Enforcement Administration (DEA), issued an Order to Suspend Shipment
to Neil Laboratories, Inc. of East Windsor, New Jersey, notifying it
that a proposed shipment of 240 kilograms of pseudoephedrine to Oscar
Barajas Gomez/Comercializadora Del Noroeste (Comercializadora) of
Mexico was suspended pursuant to 21 U.S.C. 971 and 21 CFR 1313.41. The
Order to Suspend Shipment stated that DEA believed that the listed
chemical may be diverted. Specifically, the order provided Neil
Laboratories, Inc: (1) With the factual and legal basis for the
suspension of the shipment; (2) with an opportunity to file a written
request for a hearing within 30 days pursuant to 21 CFR 1313.51 through
1313.57; (3) with notice that, should it fail to request a hearing, it
would be deemed to have waived the hearing; and (4) with notice that
upon the expiration of the 30 day time frame, the Deputy Administrator
may then enter his final order in this matter without a hearing.
The order was received by Neil Laboratories, Inc. on August 21,
1998. No request for a hearing has been received by DEA from Neil
Laboratories, Inc., or anyone purporting to represent the company in
this matter. Subsequently, the investigative file was transmitted to
the Deputy Administrator for final agency action.
[[Page 30064]]
Therefore, the Deputy Administrator, finding that: (1) 30 days have
passed since the issuance of the Order to Suspend Shipment; and (2) no
request for a hearing has been received, concludes that Neil
Laboratories, Inc. is deemed to have waived its hearing right. After
considering relevant material from the file in this matter, the Deputy
Administrator now enters his final order without a hearing pursuant to
21 CFR 1313.57.
The Deputy Administrator finds that on December 12, 1997, Neil
Laboratories, Inc. submitted a DEA Form 486 to DEA which indicated that
it proposed to export 2,992,000 pseudoephedrine 60 mg. tablets to
Comercializadora. A check with Mexican authorities revealed that
Comercializadora never requested an import permit from the Mexican
Department of Health. This shipment was exported to Mexico before DEA
could discuss this matter with Neil Laboratories, Inc.
On February 3, 1998, DEA was notified that Comercializadora was not
authorized by the Department of Health to import pseudoephedrine into
Mexico.
On February 6, 1998, Neil Laboratories, Inc. submitted another DEA
Form 486 which indicated that it proposed to export 4,000,000
pseudoephedrine 60 mg. tablets to Comercializadora. Neil Laboratories,
Inc. also forwarded to DEA a copy of a Mexican import permit for this
shipment. Upon receipt of the documents, DEA asked the Mexican
Department of Health to verify the legitimacy of the customer.
Thereafter, the Mexican authorities informed DEA that the Mexican
import document submitted by Comercializadora to Neil Laboratories,
Inc. was fraudulent. On February 20, 1998, Neil Laboratories, Inc.
voluntarily canceled the shipment.
DEA personnel went to the address used by Comercializadora which
was the same address as that listed in the Tijuana, Mexico telephone
book for its owner, Oscar Barajas Gomez. The address was discovered to
be an empty store front.
On April 2, 1998, Neil Laboratories, Inc. submitted a third DEA
Form 486 which indicated that it proposed to export 4,000,000
pseudoephedrine 60 mg. tablets to Comercializadora. DEA requested that
the Mexican Department of Health verify the import license submitted
for this shipment. It was determined that the import license provided
to Neil Laboratories, Inc. was fraudulent, in that one of the Mexican
officials' signature was a forgery and two other Mexican officials
listed on the permit were fictitious names. In addition, the company
number provided by Comercializadora on the import license belonged to
another company in Mexico.
On June 4, 1998, Neil Laboratories, Inc. forwarded another import
license from Comercializadora, which Mexican authorities verified was
also fraudulent. On June 15, 1998, Neil Laboratories, Inc. withdrew the
previous DEA Form 486 and submitted a new, duplicate request. The
Mexican port of entry for the shipment listed on the form is not
authorized to receive shipments of pseudoephedrine.
Pursuant to 21 U.S.C. 971(c), and the delegation of authority found
in 28 CFR 0.100(b) and 0.104, the Deputy Administrator may ``order the
suspension of any importation or exportation of a listed chemical * * *
on the ground that the chemical may be diverted to the clandestine
manufacture of a controlled substance.'' The Deputy Administrator
concludes that there is substantial evidence to support the conclusion
that this shipment of pseudoephedrine may be diverted to the
clandestine manufacture of a controlled substance. The address noted
for the customer was an empty store front and the customer provided
fraudulent import documents. Further, the Deputy Administrator notes
that no contrary evidence has been presented.
Accordingly, the Deputy Administrator of the Drug Enforcement
Administration, pursuant to the authority vested in him by 21 U.S.C.
971 and 28 CFR 0.100(b) and 0.104, hereby orders that the proposed
shipment described above, be, and it hereby is, suspended, and that
these proceedings are hereby concluded. This final order is effective
immediately.
Dated: May 25, 1999.
Donnie R. Marshall,
Deputy Administrator.
[FR Doc. 99-14099 Filed 6-3-99; 8:45 am]
BILLING CODE 4410-09-M