Grassley, Whitehouse Demand China Own Up to Fueling Illicit Fentanyl Trade

WASHINGTON – Sens. Chuck Grassley (R-Iowa) and Sheldon Whitehouse (D-R.I.), the Co-Chairman and Chairman of the Senate Caucus on International Narcotics Control, yesterday urged China to take strong and decisive action to better control the flow of precursor chemicals that Mexican cartels use to manufacture illicit fentanyl.

 

The Co-Chairmen sent a letter to Xu Xueyuan, Charge d’Affaires of the Embassy of the People’s Republic of China in Washington, D.C., urging China to:

 

• Expand its information sharing on the flow of non-scheduled chemicals and designer precursor chemicals;
• Strengthen the enforcement of established agreements for the proper labeling of international chemical shipments; and
• Implement customer due diligence standards to prevent the illicit diversion of these precursor chemicals. 

 

“The Chinese Communist Party knows full well that its deadly chemicals are being used by Mexican cartels to infect our country and poison our citizens. It’s an evil scheme that’s killing thousands of Americans every year, including 471 Iowans who were lost in 2021 alone. Anyone who participates in these deadly dealings ought to be held accountable,” Grassley said.

 

“China is not doing enough to halt the stream of chemicals that Mexican drug cartels use to produce fentanyl, the destructive drug that has supercharged the opioid crisis raging in communities across America,” Whitehouse said. “The commonsense steps that Co-Chairman Grassley and I lay out in our letter are consistent with international practice, guidelines and treaties and would, undoubtedly, save American lives.”

 

In 2021, more than 72,000 Americans died from fentanyl-related overdoses. Mexican cartels mass-produce this deadly substance using precursor chemicals sourced from China. While many of these chemicals have legitimate uses, China can take actions to better ensure that they are not diverted to create illicit substances bound for the United States through Mexico. 

 

The Senate Caucus on International Narcotics Control has a long history of working on a bipartisan basis to crack down on illicit drug trafficking globally, while expanding addiction prevention, treatment and recovery services at home.

 

The full text of the letter is available here and below.

 

May 4, 2023

 

Xu Xueyuan 

Charge d’Affaires

Embassy of the People's Republic of China 

3505 International Place, NW

Washington, DC 20008

 

Dear Ms. Xueyuan: 

 

As the co-chairs of the Senate Caucus on International Narcotics Control (the Caucus), we write to request that the People’s Republic of China (PRC) increase its cooperation with the United States to better combat the illicit drug trade, specifically as it relates to precursor chemicals used to manufacture illicit fentanyl. 

 

According to the U.S. Department of State, illicit fentanyl production has “soared” in Mexico, and Mexico is a destination country for “fentanyl precursors originating mainly from the People’s Republic of China.” Further, “precursor chemicals from the PRC… are diverted to all parts of the globe.”  

 

With this in mind, we request that the PRC expand its information sharing on the flow of nonscheduled chemicals and designer precursor chemicals; strengthen the enforcement of established agreements for the proper labeling of international chemical shipments; and implement customer due diligence standards to prevent the illicit diversion of these precursor chemicals. These requests are consistent with international guidance and treaties. 

 

Indeed, in its guidance regarding the proliferation of non-scheduled chemicals and designer precursors, the International Narcotics Control Board (INCB), encourages member States to expand information sharing on the flow of non-scheduled chemicals and designer precursor chemicals and to push for the effective implementation of customer due diligence standards to prevent the illicit diversion of these precursor chemicals. Among other recommendations, the guidance explicitly calls upon member States to: 

 

• “Encourage and promote voluntary cross-border cooperation on non-scheduled chemicals, including sharing of information on specific shipments of substances not under national control, with the origin or destination country, for appropriate action as the substance may be controlled in those countries;”  and 
• “Consider exchanging information on planned exports of chemicals not under international control on a voluntary basis.”  

 

In addition, Article 12 of the United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances of 1988, articulates that States have an “Obligation to monitor international trade in order to identify suspicious transactions, to provide for seizures, to notify the authorities of the parties concerned in case of suspicious transactions, to require proper labelling and documentation and to ensure maintenance of such documents for at least two years (para. 9).” Unfortunately, the INCB’s 2022 annual report on precursor chemicals provides numerous examples in which precursor chemicals used to manufacture fentanyl and other illicit substances and originating in China were seized in destination countries after having been mislabeled or misdeclared.  Accordingly, we respectfully request that the PRC exercise greater diligence in ensuring the proper labeling of chemicals that are known to be used in the manufacture of internationally controlled and new psychoactive substances. 

 

Finally, we urge the PRC to consider implementing laws that require participants in transactions involving listed chemicals to fully identify each other. The United States, pursuant to the Controlled Substances Act, has implemented such a law which is, in effect, a “know your customer” requirement, that applies civil, administrative, and criminal sanctions for violations.  Moreover, the INCB has explicitly encouraged States to address precursor chemicals used to manufacture illicit drugs, including through the incorporation of “know your customer laws.”  

 

If China were to take these actions, all of which are consistent with international practice, guidance, and treaty obligations, it would greatly reduce the diversion of precursor chemicals used to manufacture illicit narcotics. We thank you for your attention to this matter, and look forward to working with you to address the manufacture, sale, and export of precursor chemicals used to produce illicit narcotics, including fentanyl. 

 

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