[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