Bureau for International Narcotics and Law …

1 United states Department of State Bureau for International Narcotics and Law Enforcement Affairs International Narcotics control strategy report Volume I Drug and Chemical control March 2017 INCSR 2017 Volume 1 Table of Contents i Table of Contents Common Abbreviations .. iii International Agreements .. v INTRODUCTION .. 1 Policy and Program Developments .. 17 Overview .. 18 Methodology for Government Estimates of Illegal Drug Production .. 24 (with dates ratified/acceded) .. 30 USG Assistance .. 36 International Training .. 38 Drug Enforcement Administration (DEA) .. 41 United states Coast Guard (USCG) .. 43 Customs and Border Protection (CBP) .. 45 Chemical Controls.

2 48 Significant Illicit Drug Manufacturing Countries .. 73 Country Reports .. 89 Afghanistan .. 90 Albania .. 95 Algeria .. 96 Argentina 97 Azerbaijan .. 98 Bahamas .. 99 Belize .. 104 Benin .. 108 Bolivia .. 109 Bosnia and Herzegovina .. 113 Brazil .. 114 Burma .. 118 Cabo Verde .. 123 Cambodia .. 124 Canada .. 125 China .. 129 Colombia .. 132 Costa Rica .. 137 Cuba .. 142 Democratic People s Republic of Korea .. 143 (DPRK or North Korea) .. 143 Dominican Republic .. 144 Dutch Caribbean .. 148 Eastern Caribbean.

3 151 Ecuador .. 154 Egypt .. 159 El Salvador .. 160 Georgia .. 165 Ghana .. 166 Guatemala .. 167 Guinea-Bissau .. 172 Guyana .. 173 Haiti .. 176 INCSR 2017 Volume 1 Table of Contents ii Honduras .. 181 India .. 186 Indonesia .. 190 Iran .. 194 Italy .. 192 Jamaica .. 193 199 Kyrgyz Republic .. 201 Laos .. 205 Lebanon .. 210 Liberia .. 210 Malaysia .. 213 Mexico .. 215 220 The Netherlands .. 221 Nicaragua .. 222 Nigeria .. 227 Pakistan .. 227 Panama .. 233 Paraguay .. 238 Peru .. 239 Philippines .. 244 Portugal .. 248 Russia .. 249 Senegal .. 250 Serbia .. 251 South Africa .. 252 Spain .. 253 Suriname .. 254 Tajikistan .. 256 259 261 Timor-Leste.

4 265 Trinidad and Tobago .. 268 Turkey .. 271 Turkmenistan .. 275 Ukraine .. 278 United Arab Emirates .. 280 United Kingdom .. 281 Uruguay .. 282 283 Venezuela .. 286 Vietnam .. 291 INCSR 2017 Volume 1 Common Abbreviations iii Common Abbreviations APEC Asia-Pacific Economic Cooperation AFRICOM Military Command for Africa ASEAN Association of Southeast Asian Nations ATS Amphetamine-Type Stimulants CARICC Central Asia Regional Information Coordination Center CARSI Central America Regional Security Initiative CBP Customs and Border Protection CBSI Caribbean Basin Security Initiative DARE Drug Abuse Resistance Education DEA Drug Enforcement Administration DHS Department of Homeland Security DOJ Department of Justice DTO Drug Trafficking Organization ECOWAS Economic Community of West African states EU European Union FBI

5 Federal Bureau of Investigation FIU Financial Intelligence Unit ICE Immigration and Customs Enforcement ILEA International Law Enforcement Academy INCB International Narcotics control Board INCSR International Narcotics control strategy report INL Department of State s Bureau of International Narcotics and Law Enforcement Affairs JIATF-S Joint Interagency Task Force South JIATF-W Joint Interagency Task Force West MAOC-N Maritime Analysis and Operations Centre- Narcotics MLAT Mutual Legal Assistance Treaty MOU Memorandum of Understanding NIDA National Institute of Drug Abuse OAS Organization of American states OAS/CICAD Inter-American Drug Abuse control Commission ONDCP Office of National Drug control Policy NPS New Psychoactive Substances SELEC Southern European Law Enforcement Center SIU Special Investigative Unit INCSR 2017 Volume 1 Common Abbreviations iv SOUTHCOM Military Command for the Caribbean, Central and South America TOC Transnational Organized Crime UNODC United Nations Office on Drugs and Crime UNCAC United Nations Convention against Corruption UNTOC United Nations Convention against Transnational Organized Crime USAID Agency for International Development USCG Coast Guard WACSI West Africa Cooperative Security Initiative Ha Hectare HCL Hydrochloride (cocaine)

6 Kg kilogram MT Metric TonINCSR 2017 Volume 1 International Agreements v International Agreements 1988 UN Drug Convention United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances (1988) UN Single Drug Convention United Nations Single Convention on Narcotic Drugs (1961 as amended by the 1972 Protocol) UN Psychotropic Substances Convention United Nations Convention on Psychotropic Substances (1971) UNCAC UN Convention against Corruption (2003) UNTOC - UN Convention against Transnational Organized Crime (2000), and its supplementing protocols: Trafficking in Persons Protocol Protocol to Prevent, Suppress and Punish Trafficking in Persons, Especially Women and Children, supplementing the United Nations Convention against Transnational Organized Crime Migrant Smuggling Protocol Protocol against the Smuggling of Migrants by Land, Air and Sea, supplementing the United Nations Convention against Transnational Organized Crime Firearms Protocol Protocol against the Illicit Manufacturing of and Trafficking in Firearms, Their Parts and Components and Ammunition.

7 Supplementing the United Nations Convention against Transnational Organized Crime INCSR 2017 Volume 1 Introduction 1 INTRODUCTION INCSR 2017 Volume 1 Introduction 2 Legislative Basis for the INCSR The Department of State s International Narcotics control strategy report (INCSR) has been prepared in accordance with section 489 of the Foreign Assistance Act of 1961, as amended (the "FAA," 22 2291). The 2017 INCSR, published in March 2017, covers the year January 1 to December 31, 2016 and is published in two volumes, the second of which covers money laundering and financial crimes. In addition to addressing the reporting requirements of section 489 of the FAA (as well as sections 481(d)(2) and 484(c) of the FAA and section 804 of the Narcotics control Trade Act of 1974, as amended), the INCSR provides the factual basis for the designations contained in the President s report to Congress on the major drug-transit or major illicit drug producing countries initially set forth in section 591 of the Kenneth M.

8 Ludden Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2002 ( 107-115) (the "FOAA"), and now made permanent pursuant to section 706 of the Foreign Relations Authorization Act, Fiscal Year 2003 ( 107-228) (the "FRAA"). Section 706 of the FRAA requires that the President submit an annual report no later than September 15 identifying each country determined by the President to be a major drug-transit country or major illicit drug producing country. The President is also required in that report to identify any country on the majors list that has "failed demonstrably .. to make substantial efforts" during the previous 12 months to adhere to International counternarcotics agreements and to take certain counternarcotics measures set forth in law.

9 Assistance under the current foreign operations appropriations act may not be provided to any country designated as having "failed demonstrably" unless the President determines that the provision of such assistance is vital to national interests or that the country, at any time after the President s initial report to Congress, has made "substantial efforts" to comply with the counternarcotics conditions in the legislation. This prohibition does not affect humanitarian, counternarcotics, and certain other types of assistance that are authorized to be provided notwithstanding any other provision of law. The FAA requires a report on the extent to which each country or entity that received assistance under chapter 8 of Part I of the Foreign Assistance Act in the past two fiscal years has "met the goals and objectives of the United Nations Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances" (the "1988 UN Drug Convention").

10 FAA 489(a)(1)(A). Several years ago, pursuant to The Combat Methamphetamine Enforcement Act (CMEA) (The USA Patriot Improvement and Reauthorization Act 2005, Title VII, 109-177), amending sections 489 and 490 of the Foreign Assistance Act (22 USC 2291h and 2291) section 722, the INCSR was expanded to include reporting on the five countries that export the largest amounts of methamphetamine precursor chemicals, as well as the five countries importing the largest amounts of these chemicals and which have the highest rate of diversion of the chemicals for methamphetamine production. This expanded reporting, which appears in this year s INCSR and will appear in each subsequent annual INCSR report , also includes additional information on efforts to control methamphetamine precursor chemicals, as well as estimates of legitimate demand for these methamphetamine precursors, prepared by most parties to the 1988 UN Drug Convention and submitted to the International Narcotics control Board.