[Federal Register Volume 62, Number 201 (Friday, October 17, 1997)] [Rules and Regulations] [Pages 53958-53959] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 97-27452] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF JUSTICE Drug Enforcement Administration 21 CFR Part 1309 [DEA Number--169N] Comprehensive Methamphetamine Control Act of 1996; Registration Fees AGENCY: Drug Enforcement Administration (DEA), Justice. ACTION: Notice of fee wavier. ----------------------------------------------------------------------- SUMMARY: DEA is waiving a portion of the registration fee for non- retail distributors of pseudoephedrine, phenylpropanolamine, and combination ephedrine drug products. Under the Comprehensive Methamphetamine Control Act of 1996 (MCA), wholesale distributors of these drug products are subject to the existing List I chemical registration and fee requirements. However, because the drug products are distributed in substantially different channels than other List I chemicals, the existing pre-registration investigation procedures, which were established primarily with respect to the handlers of chemicals, as opposed to drug products, are not necessarily applicable to the new type of applicant. DEA will be reviewing the pre- registration investigation procedures to determine what changes will be necessary to account for the different manner of distribution of the drug products. Recognizing that changes are likely to be made in the pre-registration process, thus causing changes to the fees assessed, DEA is waiving a portion of the fee at this time, rather than requiring that new applicants pay a fee that would not be consistent with the resources actually expended in the issuance of the registration. EFFECTIVE DATE: October 17, 1997. FOR FURTHER INFORMATION CONTACT: G. Thomas Gitchel, Chief, Liaison and Policy Section, Office of Diversion Control, Drug Enforcement Administration, Washington, D.C. 20537, Telephone (202) 307-7297. SUPPLEMENTARY INFORMATION: The MCA's removal of the exemption for pseudoephedrine, phenylpropanolamine, and combination ephedrine drug products (regulated drug products) opens up to chemical registration and regulation a new and different segment of industry from that previously subject to the chemical controls. Prior to the MCA the group subject to chemical registration consisted primarily of specialty chemical handlers distributing products of limited consumer end-use to a largely industrial customer base. By contrast, the principal group subject to registration under the MCA consists of general merchandisers distributing a wide variety of consumer products to retail outlets for sale to the public. Often, one company will operate several distribution centers to serve wholly owned or independent retail outlets. In response to applications submitted by this new group, DEA is re-examining the pre-registration investigation process for issuing registrations. This process will affect the registration application fees. The procedures for issuing a chemical registration and the associated application fee were developed in 1994 as part of the implementation of the Domestic Chemical Diversion Control Act of 1993 (DCDCA). (For specific details regarding the procedures and fees, see DEA's notice of proposed rulemaking (NPRM) regarding Implementation of the Domestic Chemical Diversion Control Act of 1993 (Pub. L. 103-200) which was published in the Federal Register on October 13, 1994 (59 FR 51887)). The procedures were developed based on the type of applicants expected under the DCDCA, e.g., specialty chemical handlers dealing with products of limited consumer end-use. These applicants dealt almost exclusively in chemicals and often distributed from contract operated warehouses/storage depots. Pursuant to the requirements of the Office of Management and Budget (OMB) Circular A-25, the costs and resources required to conduct the pre-registration investigation and issue the registration were assessed to the applicants as the application fee. The group subject to registration under the MCA is significantly different, consisting principally of general merchandisers distributing hundreds or thousands of different consumer products, often from a large number of applicant-owned warehouse/distribution centers, to retail outlets for sale to the public. The volume of regulated drug products handled is often only a very small portion of the total volume of products distributed by the location. For these applicants,the pre- registration procedures developed for chemical handlers are not entirely suitable. DEA has, therefore, initiated a review of the pre- registration procedures to determine what changes will be necessary to make the process consistent with the different activities of this group of applicants. This review will affect the costs and resources associated with the issuance of registrations to these applicants and, thus, the fee to be charged. DEA will publish notice, with opportunity for comment, in the Federal Register regarding any proposed change to the procedures and consequent changes to the fees. The MCA removed the exemption from regulation for combination ephedrine drug products effective [[Page 53959]] October 3, 1996, and will remove the exemption from regulation for pseudoephedrine and phenylpropanolamine drug products effective October 3, 1997, making persons who distribute the respective products subject to the registration requirement on those dates. Determination of the appropriate procedures and amendment of the regulations to set the new fees will extend well beyond those deadlines for registration. Therefore, DEA is waiving a portion of the application fee for new registration. It would be inconsistent with the principles of OMB Circular A-25 to charge a fee for a specific service, e.g., completing the processing of the application and the pre-registration investigation, knowing that the costs and resources to be expended in providing that service will change. Persons who have already applied for registration to distribute regulated drug products and paid the existing fee will be refunded the amount of fee that is being waived. The Acting Deputy Administrator of DEA is, therefore, waiving that portion of the fee for registration as a non-retail distributor of regulated drug products associated with the 12 hours of investigator time allocated for the on-site visit and travel time, which, at $39.92 per hour, amounts to $479.00 (See 59 FR 51892). The remaining administrative costs and time allotted for background checks and reports will continue. Thus the fee for an initial application for registration as a non-retail distributor of regulated drug products is $116.00. That fee will remain in effect until the review of the registration procedures has been completed and a determination has been made regarding how the processing of such applications and the pre- registration investigation will be carried out. At that time, a notice will be published in the Federal Register regarding the procedures to be followed and fee that will be required for future applications. This waiver applies only to applicants for registration as non- retail distributors of regulated drug products. All other applicants remain subject to the full fees, as set forth in Title 21, Code of Federal Regulations, Section 1309.11. As noted earlier, persons who have already submitted an application for registration as a non-retail distributor of regulated drug products and paid the full fee will be provided with a $479.00 refund. Dated: October 8, 1997. James S. Milford, Acting Deputy Administrator. [FR Doc. 97-27452 Filed 10-16-97; 8:45 am] BILLING CODE 4410-09-M