E/INCB/2005/NAR_3

ENGLISH VERSION

TRAINING MATERIAL

1961 SINGLE CONVENTION ON NARCOTIC DRUGS

PART 3:

THE STATISTICAL RETURNS SYSTEM

FOR NARCOTIC DRUGS

INCB OICS

UNITED NATIONS INTERNATIONAL NARCOTICS CONTROL BOARD

 TABLE OF CONTENTS

PART 3 PAGE

I. INTRODUCTION.............................................................................................................. 3

II. GENERAL INFORMATION FOR THE PREPARATION OF STATISTICAL

RETURNS .............................................................................................................................. 4
1. UNDERSTANDING KEY CONCEPTS……………………………………………………4
2. HOW TO INDICATE QUANTITIES ON FORMS A AND C………………………………...5

III. GUIDELINES FOR THE PREPARATION OF FORM A: Quarterly statistics of

imports and exports of narcotic drugs .................................................................................... 6
1. SUBMISSION OF QUARTERLY STATISTICS …………………………………………….6
2. INSTRUCTIONS FOR COMPLETING FORM A ………………………………………….7
3. PRACTICAL EXAMPLES FOR COMPLETING FORM A………………………………….10

IV. GUIDELINES FOR THE PREPARATION OF FORM C: Annual statistics of

production, manufacture, consumption, stocks and seizures of narcotic drugs .................. 12
1. SUBMISSION OF ANNUAL STATISTICS…………………………………………….....13
2. INSTRUCTIONS FOR COMPLETING FORM C …………………………………………13
3. PRACTICAL EXAMPLES FOR COMPLETING FORM C………………………………….20

V. ACTIONS TAKEN BY INCB CONCERNING THE STATISTICAL RETURNS

SYSTEM, INCLUDING DIALOGUE WITH GOVERNMENTS..................................... 24
1. IDENTIFICATION OF NON- COMPLIANCE WITH THE PROVISIONS OF
THE CONVENTION ……………..……………………………………………..…..24
2. IDENTIFICATION OF TRADE DISCREPANCIES……………………………………….25
3. IDENTIFICATION OF ANNUAL IMBALANCES………………………………………..25
4. IDENTIFICATION OF TRENDS…………………………………………………….…27
5. GLOBAL BALANCE OF THE SUPPLY OF AND THE DEMAND FOR OPIATES……………27
6. PUBLICATION OF THE STATISTICAL RETURNS……………………………………...27

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 I. INTRODUCTION

1. Pursuant to article 13 of the Single Convention, INCB is charged with the administration of the
statistical returns system on narcotic drugs. All states, whether they are Parties or not to the Convention,
and their territories are expected to cooperate within the international drug control system, which
includes the submission of the statistical returns to the Board.

2. Article 20 of the Single Convention provides for the manner and form in which statistical returns shall
be furnished to the Board. The statistical returns include information on imports and exports of narcotic
drugs, as well as their production, manufacture, utilization, consumption, stocks and seizures. The Board
examines the statistical returns with a view to determining whether countries have complied with the
provisions of the Convention. Additional information may be required as necessary, in order to complete
or explain the information contained in the statistical returns.

3. The quarterly statistical returns provide the Board with information on the international trade of
narcotic drugs. This information enables the Board to:

• Check whether a narcotic drug imported is one of those for which the importing country has
submitted estimates confirmed by the Board, i.e. whether the country is entitled to import the drug in
question;

• Check whether the quantities exported and imported are within the limits fixed by the estimates, in
order to avoid over-supply of the importing country;

• Check whether the quantities exported have been received in their entirety in the country of
destination and there has been no diversion into illicit channels.

4. The annual statistical returns provide the Board with information on the production, manufacture,
utilization, consumption, stocks and seizures of narcotic drugs. This information enables the Board to:

• Check whether the movement of narcotic drugs in each country is kept within the limit of the relevant
estimates and, in particular, whether the limit of manufacture and importation (article 21) has been
complied with;

• Detect imbalances in that movement that may indicate shortcomings in a country’s control system or
possible diversions from licit to illicit channels.

5. The statistical information received from countries is included in a database. The analysis of this
information may indicate trends in the international trade and domestic movement of narcotic drugs.

6. This part of the training material is intended to provide guidance for drug control officials on how to
prepare the statistical returns on narcotic drugs, based on the provisions of the Single Convention. It
also explains how these statistics are analyzed by INCB and what are the actions taken based on this
analysis.

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 II. GENERAL INFORMATION FOR THE PREPARATION OF
STATISTICAL RETURNS

1. Understanding key concepts

Production of narcotic drugs

7. The Single Convention uses the term “production” only when referring to the separation of opium,
coca leaves, cannabis and cannabis resin from the plants from which they are obtained. Production
should not be confused with “manufacture”, which is explained in the following paragraph.

Manufacture of narcotic drugs

8. The Single Convention defines “manufacture” as any process, other than production, by which drugs
may be obtained, including refining and the transformation of drugs into other drugs (please refer to Part
1, chapter IV, section 2, of this training material for more information about national controls over
manufacture). However, for the purpose of statistical returns submitted to INCB, only the quantities of
base drug manufactured should be reported. In order to avoid double counting, the quantities of
preparations and salts, isomers, esters and ethers of a drug manufactured from the same drug should not
be reported. Similarly, the quantities of narcotic drugs obtained through refining should not be reported.

9. Governments do not have to and shall not report to INCB the quantities of narcotic drugs used for
the manufacture of preparations which are not included in Schedule III, because these
preparations are subject to the same measure s of control as the narcotic drugs which they
contain (with exceptions indicated in article 2, paragraph 3, of the Single Convention). Consequently,
the monitoring by INCB of the licit movement of narcotic drugs contained in these preparations continues
until their consumption, on which specific reports must be submitted to INCB.

Poppy straw and cannabis leaves

10. The separation of poppy straw from the opium poppy, and that of cannabis leaves not accompanied
by the tops from the cannabis plant, are neither “production” nor “manufacture” because the straw and
the leaves are not listed in Schedule I or II of the Single Convention and therefore are not considered as
drugs. However, since poppy straw plays a role as an opiate raw material and may also be diverted,
some measure of control over the cultivation of opium poppy for purposes other than the production of
opium is needed and is thus provided for by article 25 of the Single Convention. In addition, article 25
provides for the control of the poppy straw used for the manufacture of narcotic drugs, as well as its
international trade.

Preparations in Schedule III

11. As far as the manufacture of preparations is concerned, Governments are only required to report to
INCB the quantity of narcotic drugs used for the manufacture of preparations included in Schedule
III. This is because the preparations included in Schedule III are exempted from several control
measures, including control of international trade, and reporting on quantities manufactured and their
consumption. If a Government considers it useful, for national control or other purposes, to report
statistical information on Schedule III preparations, it should specify such information in the cover page
of the quarterly and annual forms sent to INCB (see paragraphs 30 and 55, below).

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12. Due to the exemption of Schedule III preparations from certain control measures, it is not possible to
monitor the movement of these preparations at the international level. Consequently, monitoring by
INCB of the licit movement of narcotic drugs contained in Schedule III preparations finishes at the
moment of their utilization for the manufacture of these preparations. It is important that the Board is
informed of the quantities of narcotic drugs used for this purpose.
13. Further information on the application of the estimates system to preparations included in Schedule
III is contained in paragraphs 10 to 11 of Part 2 of this training material.

Consumption and stocks

14. The use of these terms for the purposes of the Single Convention is explained in Part 2 of this training
material. Consumption is explained in paragraphs 3 to 4 of Part 2, while stocks and special stocks
are explained in paragraphs 12 to 15 and paragraph 68 of Part 2.

What constitutes an export and an import?

15. As understood by the Single Convention, export and import mean, in their respective connotations,
the physical transfer of narcotic drugs from one State to another State, or from one territory to another
territory of the same State.

16. Therefore, a drug shall be considered as exported when it has actually left from the country
declaring it as such. The fact that an export authorization has been issued is not enough for narcotic
drugs to be included in the export statistics. "Exportation" also includes the dispatch of goods from a
bonded warehouse, free port or free zone to a destination abroad, even though such a traffic is not
always regarded by domestic customs regulations as export in the technical sense of the terms. Goods
passing from the country proper into a bonded warehouse, free port or free zone situated in that country
should not be considered as exports.

17. A drug shall be declared as imported only when it has actually arrived in the country declaring it as
such. The simple issuance of an import certificate is not enough for drugs to be included in the import
statistics. "Importation" also includes the entry of goods originating abroad into a bonded warehouse,
free port or free zone. Goods that pass from a bonded warehouse, free port or free zone into the
country should not be considered as imports.

18. If a consignment is in transit to another country and is accompanied by a proper export authorization,
it should not be regarded as being imported or exported by the country of transit even if it is placed
temporarily in a bonded warehouse, free port or free zone in that country pending its further shipment.
However, if a drug consignment enters temporarily a bonded warehouse, free port or free zone without
its final destination being known at the time of dispatch, the consignment has to be considered as an
import into the country where the bonded warehouse, free port or free zone is located. The ongoing
transaction with a third country has to be considered as a new export/import transaction.

2. How to indicate quantities on Forms A and C

19. Quantities of narcotic drugs should be expressed in terms of pure anhydrous drug content. The
conversion factors for pure anhydrous drug contents of drugs listed in Schedules I and II of the Single
Convention may be found in Part 4 of the Yellow List. For examples on how to make the relevant

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calculations, please refer to paragraph 47 of Part 2 of this training material, which refers to the estimates
system. The weight of packaging and containers (crates, cans, envelopes, bottles, tubes, ampoules, etc.)
should not be included.

20. Quantities reported on Form A and Form C, except in the cases explained in the following
paragraphs, should be indicated in kilograms and grams without decimal points of commas, and fractions
of grams should be omitted. For example, 1 ton should be expressed as 1000 kilograms, and 10 grams
should be expressed as 010 grams.

21. Narcotic drugs that are usually dealt with in minute quantities, such as fentanyl and its analogues and
piritramide, should be reported in grams and milligrams. Fractions of milligrams should be omitted.
When dealing with minute quantities of other drugs, such as reagents, it is recommended that they are
reported on the cover page of the Forms, under "Remarks". Cannabis, coca leaf and poppy straw,
which are produced, used and traded in very large quantities should be reported in kilograms only.

22. Overall quantities of the different types of concentrate of poppy straw should be reported in gross
weight (kilograms and grams), while the approximate quantities of anhydrous alkaloids contained in each
type of concentrate of poppy straw should be reported in kilograms only.

23. As explained before for the estimates system (see Part 2, paragraph 47), opium may contain varying
levels of moisture that affect the determination of the real weight of opium to be reported. To make
statistics and estimates comparable, the Board requests that the weight of opium be calculated in terms
of 10 percent moisture content.

IMPORTANT NOTE:

In the case of preparations of narcotic drugs in the form of ampoules or other dosage forms for which the
real volume may exceed the nominal volume indicated on the packaging of the preparation, only the
nominal volume of the preparations should be reported to the Board.

III. GUIDELINES FOR THE PREPARATION OF FORM A:

Quarterly Statistics of Imports and Exports of Narcotic Drugs

1. Submission of quarterly statistics

24. The quarterly statistics of import and export of narcotic drugs and poppy straw should be submitted
to the Board on Form A. These statistics should be furnished to the Board as quickly as possible and in
any case not later than one month after the end of the quarter to which they relate. The deadlines for
submission of Form A in the course of the year are as follow:

Period covered by the statistics Submission deadline

1st quarter (January, February, March) 30 April of the same year

2nd quarter (April, May, June) 31 July of the same year
3rd quarter (July, August, September) 31 October of the same year

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4th quarter (October, November, December) 31 January of the next year

25. It is very important that these deadlines are respected. Timely information will enable the Board to
respond quickly if any action needs to be taken (see chapter V, below) in accordance with the Board’s
authority under the Convention.

26. On the other hand, Form A should not be sent before the end of the quarter to which it refers, since
the statistics may be incomplete and might not reflect accurately the situation of imports and exports
during that quarter.

27. In all cases, Form A should be furnished for each quarter even if the country has not imported or
exported any drug during that quarter. Only a Form A mentioning no movement of drugs constitutes a
definite declaration that neither import nor export has taken place.

2. Instructions for completing Form A

28. The Form is composed of a cover page, one page of general instructions, and two parts: “PART I -
IMPORTS” and “PART II – EXPORTS”.

Page 1 : Cover Page

29. On the cover page, the following particulars must be given:

• The name of the country or territory submitting the statistics;

• The date on which the Form was completed;
• The department or competent office from which the furnished statistics originate, with the
corresponding stamp, if available;
• The name of the responsible officer, his/her title or function and his/her signature;
• The quarter and year to which the statistics relate.

30. The blank space under the label "Remarks" should include all information needed to clarify or
supplement the statistical data given on Form A. For example: a country may state the intention to re-
export, in the course of the same year, a quantity of an imported drug; a country may also specify if
quantities of narcotic drugs reported in Form A include Schedule III preparations (see paragraph 11,
above) or provide information on the dosage form (tablets, ampoules, powder, etc.) of pharmaceutical
preparations reported.

31. The completed Form A should be sent to the address given at the bottom of the cover page.

Page 2: INSTRUCTIONS

32. The instructions to fill in Form A should be read carefully and should be referred to whenever there is
some doubt on how to complete the Form.

Page 3 to 8: Part I - IMPORTS

33. This part of Form A concerned with imports mentions 25 narcotic drugs plus poppy straw
(morphine-rich and thebaine-rich) and concentrates of poppy straw with morphine, thebaine and

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oripavine as main alkaloids.

34. Apart from the drugs mentioned above, any other narcotic drug imported should be reported in
columns 23, 24 and 30. Supplementary pages may be added if necessary.

35. A drug shall be declared as imported only when it has actually arrived to the importing country or
territory (physical transfer). The simple issuance of an import certificate is not enough for drugs to be
included in the import statistics. The entry of drugs into a bonded warehouse, free port or free zone also
constitutes an import, unless that consignment is in transit (see paragraphs 17 and 18, above).

IMPORTANT NOTE:

All poppy straw moving in international trade should be declared, since poppy straw includes all
parts (except the seeds) of the opium poppy, after mowing (see glossary of terms). That means that
poppy straw for the extraction of alkaloids should be reported as well as poppy heads intended solely
for decoration. When both categories of poppy straw are imported or exported together, it is useful to
distinguish between them on the cover page under “Remarks”.

In the Forms, poppy straw (M) refers to poppy straw produced from varieties of opium poppy rich in
morphine, while poppy straw (T) refers to poppy straw produced from varieties of opium poppy rich in
thebaine. Poppy straw intended for decoration should be reported as poppy straw (M).

Item entitled "I. TOTAL IMPORTS"

36. Enter in the appropriate column the total quantity imported of each drug. This total is the sum of the
quantities declared in item II.

Item entitled "II. IMPORTED FROM: (COUNTRIES)"

37. Please indicate in this column the country of origin of the imported drug (i.e. the country that has
issued the export authorization for each drug, in accordance with article 31 of the Single Convention). If
no export authorization has been issued, the country of origin is that from which the drug was actually
dispatched to the importing country.

38. To the right, on the same line as the country of origin, enter in the respective column the total quantity
of each drug imported from that country during that quarter.

39. Separate figures should be furnished for each country of origin and each drug imported. When more
than one shipment of the same drug have been imported from the same country during the same quarter,
the quantities of those shipments should be added and the sum should appear in the respective column.

40. Imports of narcotic drugs for special Government purposes (usually for the armed forces) and to
meet exceptional circumstances (usually large-scale emergencies) should also be reported.

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IMPORTANT NOTE:

Page 8: Part I – IMPORTS (for countries importing concentrate of poppy straw)

This part of Form A was introduced in 2002 in order to reflect recent developments in the production
and manufacture of some opiate raw materials and to allow a more comprehensive analysis of the supply
of and demand for opiates.

The general guidelines on how to fill in pages 3 to 7 also apply to page 8, with the following
specifications:

Concentrate of poppy straw (CPS) containing morphine as the main alkaloid is referred to as CPS (M).
CPS containing thebaine as the main alkaloid is referred to as CPS (T). CPS containing oripavine as
the main alkaloid is referred to as CPS (O).

AMA refers to the anhydrous alkaloid content of morphine in a given quantity of concentrate of poppy
straw. Similarly, ACA refers to the anhydrous codeine alkaloid content, ATA refers to the anhydrous
thebaine alkaloid content and AOA to the anhydrous oripavine alkaloid content.

Under the headings CPS(M), CPS(T) and CPS(O), the gross weight of the respective CPS should be
reported. To the right of each of these quantities, under the headings ACA, AMA, AOA or ATA, the
approximate quantities of the respective anhydrous alkaloid contained in each shipment of CPS should
be reported.

Pages 9 to 13: Part II - EXPORTS

41. Part II refers to the same narcotic drugs and types of poppy straw as Part I. Exports of any other
narcotic drug should be reported in columns 23, 24 and 30. Supplementary pages may be added if
necessary.

42. A drug shall be declared as exported only when it has actually left the territory of the exporting
country. The simple issuance of an export authorization is not enough for drugs to be included in the
export statistics. The dispatch of drugs to another country from a bonded warehouse, free port or free
zone also constitutes an export, unless that consignment is in transit (see paragraph 18, above).

Item entitled "I. TOTAL EXPORTS "

43. Enter in the appropriate column the total quantity exported of each drug. This total is the sum of the
quantities declared in item II.

Item entitled "II. EXPORTED TO: (COUNTRIES)"

44. Please indicate in this column the destination country of the exported drug (i.e. the country that has
issued the import certificate for each drug, in accordance with article 31 of the Single Convention).

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45. To the right, on the same line as the destination country, enter in the respective column the total
quantity of each drug exported to that country during that quarter.

46. Separate figures should be furnished for each destination country and each drug exported. When
more than one shipment of the same drug have been exported to the same country during the same
quarter, the quantities of those shipments should be added and the sum should appear in the respective
column.

Page 14: Part II – EXPORTS (for countries exporting concentrate of poppy straw)

47. The general guidelines on how to fill in pages 9 to 13 also apply to page 14, with the addition of the
specifications regarding page 8 (see note after paragraph 40, above).

3. Practical examples for completing Form A

48. Following are examples on how to report imports and exports of narcotic drugs, Schedule III
preparations and poppy straw.

Example 1: Imports and exports of codeine and Schedule III preparations containing codeine

a) During the second quarter of the year 2005, country A imports 20 kg of codeine base, for the
intended manufacture of Schedule III preparations, from country B. It also imports 20 kg of codeine
sulfate from country C.
b) In the third quarter of the year 2005, country A imports 30 kg of cough syrup containing 2.0 per
cent of codeine base from country C.
c) In the fourth quarter of the same year, country A exports 10 kg of Schedule III preparations
containing codeine and 10 kg of codeine sulfate to country D.
d) The shipment of the Schedule III preparations containing codeine and of the codeine sulfate arrive in
country D in the first quarter of the following year (2006).
e) The conversion factor for codeine sulfate is 86 per cent (see the Yellow List).

Therefore:

f) When submitting Form A for the second quarter of 2005, country A reports under column 3
(codeine) of Part I (imports) the import of 20 kg of codeine from country B. It also reports the
import of 17.2 kg of codeine from country C (20 kg of codeine sulfate x 86 per cent). Country A
must also include the total sum of those imports (37.2 kg) in row I (total imports) under column 3
(codeine).
g) When submitting Form A for the second quarter of 2005, country B reports under column 3
(codeine) of Part II (exports) the export of 20 kg of codeine to country A.
h) When submitting Form A for the third quarter of 2005, country A does not need to report the import
of cough syrup from country C, since the syrup is a Schedule III preparation (see Yellow List).
The cough syrup is a Schedule III preparation because it is an undivided preparation containing a
concentration of no more than 2.5 per cent of codeine. If country A chooses to report, for its own
purposes, the import of the codeine contained in the cough syrup, then it must indicate under
“Remarks” in the cover page that the quantity reported refers to Schedule III preparations.
i) When submitting Form A for the fourth quarter of 2005, country A reports the export of 8.6 kg of

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 codeine to country D (10 kg of codeine sulfate x 86 per cent). It does not need to report the export
to country D of the Schedule III preparations.

Questions:

j) In view of the above, what should country C report in Forms A?

Answer:
• When submitting Form A for the second quarter of 2005, country C reports under column
3 (codeine) of Part II (exports) the export of 17.2 kg of codeine to country A (20 kg of
codeine sulfate x 86 per cent)
• When submitting Form A for the third quarter of 2005, country C does not need to report
the export of cough syrup to country A, since the syrup is a Schedule III preparation.

k) In view of the above, what should country D report in Form A?

Answer:
• When submitting Form A for the first quarter of 2006, country D reports under column 3
(codeine) of Part I (imports) the import of 8.6 kg of codeine from country A (10 kg of
codeine sulfate x 86 per cent).
• Country D does not need to report the import of Schedule III preparations from country
A.

Example 2: Imports and exports of poppy straw

a) Country A authorizes the cultivation of opium poppy. During the first quarter of the year 2005,
country A exports 1 ton of morphine-rich poppy straw to country B.
b) Country B will use 60 per cent of the shipment for the extraction of alkaloids and 40 per cent of the
shipment, consisting of poppy heads, will be used for decorative purposes.
c) During the same quarter, country A exports 500 kg of poppy heads to country C for decorative
purposes.
d) The shipments of poppy straw arrive in country B during the first quarter of the year 2005 and in
country C during the second quarter of the year 2005.

Therefore:

e) When submitting Form A for the first quarter of 2005, country A reports under column 19 (poppy
straw (M)) of Part II (exports) the export of 1000 kg of poppy straw (M) to country B. It also
reports the export of 500 kg of poppy straw (M) to country C. Country A must also include the
total sum of those exports (1500 kg) in row I (total exports) under column 19 (poppy straw (M)).
f) Furthermore, it would be useful if country A indicated under “Remarks” in the cover page which
quantities of poppy straw (M) exported during that quarter were for purposes other than the
extraction of alkaloids.

Questions:

g) In view of the above, what should country B report in Forms A?

Answer:
• When submitting Form A for the first quarter of 2005, country B reports under column 19
(poppy straw (M)) of Part I (imports) the import of 1000 kg of poppy straw (M) from

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 country A.
• Furthermore, it would be useful if country B indicated under “Remarks” in the cover
page that 600 kg of the poppy straw (M) imported is to be used for the purpose of
alkaloid extraction, while 400 kg of the poppy straw (M) consisted of poppy heads for
decorative purposes.

h) In view of the above, what should country C report in Forms A?

Answer:
• When submitting Form A for the second quarter of 2005, country C reports under column
19 (poppy straw (M)) of Part I (imports) the import of 500 kg of poppy straw (M) from
country A.
• It would be useful if country C indicated under “Remarks” in the cover page that the
poppy straw (M) imported was for purposes other than the extraction of alkaloids.

Example 3: Fentanyl in ampoules

a) During the first quarter of the year 2005, country A exports to country B, 100 boxes of ampoules of
a pharmaceutical product containing fentanyl. The consignment is received by country B during the
same quarter.
b) Each box contains 5 ampoules and each ampoule has a nominal volume of 2 ml (and a real volume
of 2.075 ml). In this regard, please see the note after paragraph 23, above.
c) The solution contains 0.157 mg of fentanyl citrate per 2 ml.
d) The conversion factor for fentanyl citrate is 64 per cent (see the Yellow List).

Question:

e) In view of the above, what should be reported by country A and country B in Form A?
Answer:
• When submitting Form A for the first quarter of 2005, country A should report under
column 26 (fentanyl) of Part II (exports), the export of 50 milligrams of fentanyl to
country B, since:
If the nominal content in anhydrous fentanyl base of one ampoule is
0.157 x 64 / 100 = 0.10048 mg
and there are 100 boxes with 5 ampoules each, then
0.10048 mg x 5 ampoules x 100 boxes = 50.24 mg
• When submitting Form A for the first quarter of 2005, country B must report the same
quantity under column 26 (fentanyl) of Part I (imports).

IV. GUIDELINES FOR THE PREPARATION OF FORM C:

Annual Statistics of Production, Manufacture, Consumption,
Stocks and Seizures of Narcotic Drugs

49. In Form C, Governments are asked to provide the Board with statistics on the production,
manufacture, consumption, stocks and seizures of narcotic drugs. Once again, it should be noted that the
way the Single Convention uses these terms may differ from the way they are understood for statistical
purposes. There is also a difference from the common use of these terms (see chapter II, section 1,
above and Glossary of Terms). These statistics provide information on what happens with each drug

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inside a country in the course of a given year, from the moment of production/manufacture or import to
its distribution to the retail level.

1. Submission of annual statistics

50. Form C should be sent to the Board as soon as possible after the year to which the statistics relate,
since it contains essential information for the adequate estimation of a country’s requirements of narcotic
drugs for the following year. In all cases, annual statistics should be furnished not later than 30 June
following the year to which they relate.

51. Form C should not be submitted before the end of the year to which it refers, since the statistics may
be incomplete and might not reflect accurately the movement of narcotic drugs during that year.

52. Form C should be furnished even if the country has not produced, manufactured, utilized, consumed,
stocked nor seized any drug during the year to which the form relates. Only a Form C mentioning no
movement of drugs constitutes a definite declaration on that subject.

2. Instructions for completing Form C

53. The Form is composed of a cover page, one page of general instructions, and four parts:

Part I: Statistical data on manufacture, consumption, utilization and stocks of narcotic drugs
Part II: Statistical data on the utilization of narcotic drugs for manufacture of other substances
Part III: Statistical data on the licit cultivation of the opium poppy and licit production of cannabis,
coca leaf and opium
Part IV: Statistical data on seizures of narcotic drugs and their disposal.

IMPORTANT NOTE:

Throughout Form C, the shaded areas are meant not to be completed.

Page 1: Cover Page

54. The same instructions given with respect to the cover page of Form A apply, making the necessary
alterations, to Form C.

55. The blank space under the label "Remarks" should include all information needed to clarify or
supplement the statistical data given in Form C. For example: a country may report the destruction of
obsolete or overdue drugs that were previously in stock; or if a country chooses to report the
consumption of Schedule III preparations, the quantity involved of each drug should be specified in this
space.

Page 2: INSTRUCTIONS

56. The instructions to fill in Form C should be read carefully and should be referred to whenever there is
some doubt on how to complete the Form.

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Pages 3 to 5: Part I (for all countries)

57. This first part is applicable to all countries, whether they are producers/manufacturers of narcotic
drugs and preparations or only consumers.

Column (unnumbered) labeled "Narcotic drug"

58. This column lists the narcotic drugs for which quantities manufactured, consumed, used for the
manufacture of Schedule III preparations, etc., will be specified in columns 1 to 6. The drugs mentioned
are the most commonly used. If any narcotic drugs other than the ones mentioned in this column have
been manufactured, consumed, used for the manufacture of Schedule III preparations or held in stock in
that year, procured for or withdrawn from special stocks, or presented losses during the manufacturing
process, they should be included in the available blank spaces in the column. Additional pages may be
added to the Form if needed.

Column 1: "Quantity manufactured"

59. Manufacture should not be confused with production (see paragraphs 7 to 9, above).

60. This column is applicable only to countries that manufacture narcotic drugs and opiate raw materials.
Enter here the total quantity of a drug that has been manufactured during the year (including the quantity
used subsequently for the manufacture of other drugs, of preparations and of substances not covered by
the Single Convention).

61. For statistical purposes, i.e. to avoid double counting, the Board requires that the refining and
transforming of narcotic drugs into salts or preparations of the same drug is not reported under this
column, if the drug has already been reported under manufacture or production. This differs from the
definition of manufacture as per the Single Convention and is explained in paragraph 8, above.

62. For example, salts, isomers, esters and ethers of cocaine obtained from crude cocaine should not be
reported to the Board, since the manufacture of crude cocaine has already been reported. Also, extracts
and tinctures of opium prepared from raw opium should not be reported, since the production of raw
opium has already been declared to the Board. This also applies to the transformation of narcotic drugs
into salts of the same drug and for compounding pharmaceutical preparations.

63. If manufacture has not been completed at 31 December, the following applies: (i) quantities entering
the transformation process at 31 December are reported as quantities utilized, it being understood that
the process will continue into the following year, and (ii) quantities ready on 31 December, at the end of
the manufacturing process, are reported as manufactured.

Column 2: "Quantity consumed"

64. Enter here, for each drug, the total quantity consumed during the year in question, that is, the
amounts supplied to any person, enterprise or scientific institution at the retail level (for example: retail
pharmacists and distributors, doctors, dentists, veterinarians, hospitals, dispensaries, scientific institutes).
All drugs imported directly by retail distributors will be deemed to have been consumed during the year

14
of importation. If the drugs are manufactured locally or imported directly by wholesalers, only the
quantities supplied to the retail level should be regarded as consumed. For further details of the term
“consumption”, please refer to Part 2, paragraph 3, of this training material.

IMPORTANT NOTE:

Preparations in Schedule III should not be included in the consumption figures (see paragraph
11, above).

Column 3: "Quantities used for the manufacture of preparations included in Schedule III"

65. Enter in this column the quantity of a drug used for the manufacture of preparations in Schedule III,
but not the quantity of preparations manufactured (see paragraph 11, above). The shaded areas in
column 3 should not be completed because Schedule III preparations of these narcotic drugs do not
exist.

IMPORTANT NOTE:

The Yellow List provides guidance on what constitutes a Schedule III preparation and from
which drugs it may be manufactured.

66. This column should be completed only if the preparations in question have been manufactured at the
level of manufacturers or wholesalers. Preparations manufactured at the retail level (by pharmacists or
hospitals, for example) should not be reported, since the drug has already been considered as consumed.

Column 4: "Quantity held in stock as at 31 December"

67. The total quantity of each drug held in stock as at 31 December of the year in question should be
entered here. For statistical purposes, stocks refer only to those held by wholesalers, manufacturers and
government agencies (see Part 2, paragraph 12). Stocks in bonded warehouses, free ports and free
zones should also be included, excluding quantities in transit.

68. Quantities held by pharmacies and hospitals should not be regarded as stocks because the quantities
supplied to the retail level have already been considered as consumed. Schedule III preparations are not
to be included in stocks (see paragraph 11, above).

Column 5: "Quantity procured (P) for special purposes or withdrawn (W) from special stocks"

69. Under this column should be entered, for each drug, the total quantity procured within the country for
special Government purposes and the total quantity withdrawn from special stocks to meet the
requirements of the country’s population (see also Part 2, paragraphs 12 and 68). Countries that have
special stocks are not required to declare to the Board the total amount they hold in such stocks. They
are required only to declare any quantity added to or withdrawn from the special stocks in the course of
the year. Whenever figures are reported in this column, it should be specified whether they relate to the

15
quantity added to (P for "procured") or withdrawn from (W) the special stocks.

Column 6: "Losses (during manufacturing process)"

70. As explained in the Glossary of Terms, the losses to be reported under this column refer to losses
that have occurred (i) during the process of refining a drug, (ii) during the process of transformation of a
drug into its salts, isomers, esters and ethers, as applicable according to the Schedules, and (iii) during
the process of manufacture of preparations other than those included in Schedule III. The reported
quantities should include losses due to chemical decomposition of the drug, due to leakage or
evaporation, and due to quality requirements. Accidental losses should also be included.

71. Quantities lost as a result of the industrial yield of the transformation process of one drug into another
drug should not be considered under this item.

IMPORTANT NOTE:

Page 5: Part I (for all countries)

The general guidelines on how to fill in pages 3 to 4 also apply to page 5, with the following
specifications:

Concentrate of poppy straw (M) is that containing morphine as the main alkaloid. Concentrate of
poppy straw (T) is that containing thebaine as the main alkaloid. Concentrate of poppy straw (O) is
that containing oripavine as the main alkaloid.

AMA refers to the anhydrous alkaloid content of morphine in a given quantity of concentrate of poppy
straw. Similarly, ACA refers to the anhydrous codeine alkaloid content, ATA refers to the anhydrous
thebaine alkaloid content and AOA to the anhydrous oripavine alkaloid content.

Under column 1, the gross weight of the respective concentrate of poppy straw manufactured should be
reported. The three types of concentrate of poppy straw are listed in the column labeled “Narcotic
Drug”.

Under column 2, the gross weight of the respective concentrate of poppy straw consumed should be
reported. Under the gross weight of each type of concentrate of poppy straw, the approximate
quantities of the respective anhydrous alkaloids contained in that concentrate should be reported.
Under column 4, the gross weight of the respective concentrate of poppy straw held in stocks as at 31
December should be reported. Under the gross weight of each type of concentrate of poppy straw, the
approximate quantities of the respective anhydrous alkaloids contained in that concentrate should be
reported.

Under column 5, the gross weight of the respective concentrate of poppy straw procured for or
withdrawn from special stocks should be reported. Under the gross weight of each type of concentrate
of poppy straw, the approximate quantities of the respective anhydrous alkaloids contained in that
concentrate should be reported.

Under column 6, the gross weight of the respective concentrate of poppy straw lost during the

16
manufacturing process should be reported. Under the gross weight of each type of concentrate of
poppy straw, the approximate quantities of the respective anhydrous alkaloids contained in that
concentrate should be reported.

Pages 6 to 7: Part II (only for countries which utilize narcotic drugs for manufacture of other
substances)

72. Part II is applicable to countries which utilize narcotic drugs and poppy straw for the manufacture of
other narcotic drugs or substances not controlled under the Single Convention. The information required
here completes the information provided in Part I, specifying the origin and quantities manufactured of
each drug that is obtained from another drug, and the quantities of a drug used for the manufacture of
another one.

73. The last row of the table in page 6 refers to “Residual water containing alkaloids”. This residual
water refers to the water left as a residue from the process of purification of opiates. The residual water
may contain alkaloids, which may still be recovered from the water through further processing and/or
distillation. The origin of the residual water reported in Form C must be specified.

Column 2: " Quantity used"

74. Enter in this column the quantity of each narcotic drug, including concentrate of poppy straw, or
poppy straw utilized for the manufacture of one or more of the other substances specified in column 3. If
a drug is used for the manufacture of substances that are not controlled under the Single Convention, the
quantities used and obtained should also be reported.

75. Do not include in column 2 the quantities transformed into salts of the same drug (for example,
quantities of morphine base transformed into morphine hydrochloride or morphine sulfate).

76. In the case of concentrates of poppy straw, the gross weight of the respective concentrate of poppy
straw used should be reported. In addition, for each type of concentrate, the approximate quantities of
the anhydrous alkaloids contained in the quantities reported in Column 2 should be reported in Column
1. The quantities of narcotic drugs obtained from each type of concentrate should be reported in the
corresponding row in Column 4.

77. Several drugs may be obtained from a single drug or substance. In that case, the quantity utilized will
be the same for each of the drugs manufactured. Example: distinct quantities of morphine, codeine and
thebaine will be manufactured from the same quantity of opium or concentrate of poppy straw.

Column 4: "Quantity obtained"

78. Enter here the quantity of a narcotic drug or substance not controlled under the Single Convention
manufactured from the quantity of the drug reported in column 2, in the same row.

79. If the substance obtained is concentrate of poppy straw, separate quantities (gross weight) should be
reported in column 4 or for each type of the concentrate according to its main alkaloid content
(concentrate of poppy straw (M), concentrate of poppy straw (T) or concentrate of poppy straw (O)).
Furthermore, for each type of concentrate of poppy straw obtained, the approximate quantities of the

17
anhydrous alkaloids contained in the quantities reported in column 4 should be reported in Column 3.

Page 8: Part III.a, Part III.b and Part IV

80. Part III.a and Part III.b should only be completed by countries that permit the licit cultivation of the
opium poppy and/or production of cannabis, coca leaf or opium. Part IV applies to all countries.

Part III.a (only for countries which authorize cultivation of opium poppy and/or production of
opium)

Column 1: Area cultivated (hectares)

81. Enter in this column the number of hectares of opium poppy under cultivation, sown and harvested,
for each of the purposes listed at the left of the column; that is for (i) the production of opium, (ii) the
production of poppy straw (M) and poppy straw (T) for the extraction of alkaloids and manufacture of
drugs, and (iii) purposes other than the production of opium or the manufacture of drugs. The latter
generally includes the harvesting of seeds used for culinary purposes and poppy straw for horticultural or
decorative purposes.

Column 2: Quantity produced (kilograms)

82. Enter in column 2 the quantity of opium or poppy straw, as appropriate, harvested from the area
under cultivation listed in Column 1. The shaded areas should not be completed.

83. It should be noted that the production of poppy straw is reported on a voluntary basis. However,
the Board encourages countries to always report such production in order to be able to evaluate the
situation regarding the supply of and demand for opiate raw materials (see paragraph 10).

Part III.b (only for countries which authorize production of cannabis and/or coca leaf)

84. Enter in the right-hand column the quantity, in kilograms, of cannabis or coca leaf resulting from licit
production.

Part IV (for all countries)

85. Part IV should be completed by all countries that effect seizures of narcotic drugs, usually as a result
of law enforcement operations against illicit drug trafficking. Apart from the substances listed, any other
narcotic drug seized should be included here. Countries should also report any seizures of
pharmaceutical preparations containing narcotic drugs, since such seizures may indicate trends in
smuggling or diverting of these preparations. The quantities in Part IV should be expressed as gross
weight (kilograms and grams). Pharmaceutical preparations may be reported in dosage units.

Column 1: Quantity seized

86. Enter in this column, for each drug, the total quantity that has been seized from the illicit traffic within
the country.

18
Columns 2 to 4: Disposal of seized quantities

87. The information on how the Government disposes of seized narcotic drugs is very important. The
quantities of seized drugs destroyed are reported in column 2. The quantities of seized drugs used for
licit purposes, namely for medical or scientific purposes, are reported in column 3. The final use of such
quantities reported in column 3 should be specified under “Remarks” in the cover page. The quantities
of seized drugs taken over by the Government for special purposes are reported in column 4.

88. The figures reported in columns 2 to 4 must also include any quantities that were seized in previous
years but have only been disposed of during the year to which the statistics relate.

19
Column 5: Quantity not disposed of pending a decision

89. This column should include all quantities of a drug seized during a particular year that have not been
disposed of at 31 December of that same year.

3. Practical examples for completing Form C

90. Following are examples on how to report the annual movement of narcotic drugs and Schedule III
preparations.

Example 1: Manufacture, consumption and utilization of diphenoxylate

a) During a certain year, country A manufactures 100 kg of diphenoxylate hydrochloride, of which 60

kg are exported to country B, 30 kg are used for the manufacture of Schedule III preparations and
10 kg are used for the manufacture of other preparations. All preparations manufactured are
delivered to state pharmacies.
b) Of the 60 kg imported from country A, country B uses 40 kg to manufacture Schedule III
preparations and 20 kg to manufacture other preparations. Of the latter, 50 per cent is distributed to
public hospitals and 50 per cent is maintained in stocks.
c) The conversion factor for diphenoxylate hydrochloride is 93 per cent (see the Yellow List).

Therefore:

d) Under Column 1 of Part 1, country A reports the manufacture of 93 kg of diphenoxylate (100 kg of

diphenoxylate hcl x 93 per cent).
e) Under Column 2 of Part 1, country A reports the consumption of 9.3 kg of diphenoxylate (10 kg of
diphenoxylate hcl x 93 per cent).
f) Under Column 3 of Part 1, country A reports the use for the manufacture of Schedule III
preparations of 27.9 kg of diphenoxylate (30 kg of diphenoxylate hcl x 93 per cent).

Question:

g) In view of the above, what should country B report?

Answer:
• Under Column 2 of Part 1, country B should report the consumption of 9.3 kg of
diphenoxylate (10 kg of diphenoxylate hcl x 93 per cent).
• Under Column 3 of Part 1, country B should report the use for the manufacture of
Schedule III preparations of 37.2 kg of diphenoxylate (40 kg of diphenoxylate hcl x 93 per
cent).
• Under Column 4 of Part 1, country B should report 9.3 kg of diphenoxylate held in stocks
as at 31 December (10 kg of diphenoxylate hcl x 93 per cent).

Example 2: Cultivation of opium poppy, production of opium, and manufacture of opiates

a) Country A authorizes the cultivation of the opium poppy. For 2005, the country authorizes the
cultivation of 50,000 hectares of morphine-rich opium poppy, of which 10,000 hectares are for the
production of opium, and 40,000 hectares are for the production of poppy straw for the
manufacture of narcotic drugs.

20
b) Only half of the areas cultivated for each purpose are harvested. Of the year 2005 harvest, 200 tons
of opium (a yield of 40 kg/hectare) and 8,000 tons of poppy straw (a yield of 400 kg/hectare) were
produced.

Therefore, regarding the cultivation of the opium poppy, country A should report in Part III.a:

c) In row 1, column 1, country A reports 10,000 hectares of opium poppy sown for the production of
opium, and 5,000 hectares harvested for the same purpose. In the same row, in column 2, country
A reports 200,000 kg of opium produced.
d) In row 2(a), column 1, country A reports 40,000 hectares of opium poppy sown for the production
of poppy straw (M) for the manufacture of narcotic drugs, and 20,000 hectares harvested for the
same purpose. On a voluntary basis, the country may also provide the quantity of poppy straw (M)
produced, which is 8,000,000 kg. Countries are encouraged to provide this information.

From the production of opium from the 2005 harvest of opium poppy, the following manufacturing
chain ensues:

e) Of the 200 tons of opium produced:

- 100 tons were used for the manufacture of 7,000 kg of morphine, 1,400 kg of codeine , and
500 kg of thebaine;
- 5 tons were used for the manufacture of Schedule III preparations ;
- 50 tons were procured for special stocks;
- and the remainder was stocked.
f) All of the thebaine manufactured from opium was used for the further manufacture of oxycodone
preparations, which were immediately distributed to hospitals. No additional quantities of
oxycodone were imported during that year, nor were there any stocks at 31 December of the
previous year.

Question:

g) In view of the above, how should country A report the utilization of opium in Form C?
Answer:
• Under column 2 of Part II, 100,000 kg of opium should be reported as used for the
manufacture of other substances. In the same row, under column 4, country A should
report the quantities of other substances obtained from opium, that is: 7,000 kg of
morphine, 1,400 kg of codeine and 500 kg of thebaine. These quantities must be taken
into consideration when completing Part I (see point k), below)
• Under column 3 of Part I, country A should report 5,000 kg of opium used for the
manufacture of Schedule III preparations,
• Under column 4 of Part 1, stocks as at 31 December of 45,000 kg of opium should be
reported
• Under column 5 of Part I, 50,000 kg of opium should be reported as procured (P) for
special stocks

From the production of poppy straw for manufacture of narcotic drugs from the 2005 harvest of opium
poppy, the following manufacturing chain ensues:

h) From the 8,000 tons of poppy straw (M) produced:

21
 - 7,000 tons are used to manufacture 210 tons of CPS (M). The CPS manufactured contains
approximately 84,000 kg AMA, 10,500 kg ACA and 3,150 kg ATA.
i) Of the 210 tons of CPS(M) manufactured:
- 110 tons are exported to country B in the fourth quarter of 2005;
- 50 tons are used for the manufacture of 20.4 tons of morphine;
- and the rest is stocked.
- The CPS(M) used and the CPS(M) stocked contain each approximately 22,000 kg AMA,
2,500 kg ACA and 750 kg ATA.

j) Of the 20.4 tons of morphine manufactured:

- 10 tons are used for the manufacture of 9 tons of codeine ;
- 5 tons are used for the manufacture of Schedule III preparations;
- and the remainder is stocked.

Question:

k) Considering the manufacturing chain ensuing from opium and poppy straw (M), as explained above,
what else should country A report in Part I and Part II of Form C?
Answer:

For poppy straw (M):

• Under column 2 of Part II, 7,000,000 kg of poppy straw (M) should be reported as used
for the manufacture of other substances.

For concentrate of poppy straw (M):

• Under column 4 of Part II, in the same row as poppy straw (M), the gross weight of
concentrate of poppy straw (M) obtained should be reported (210,000 kg). In the same
row, under column 3, the approximate quantity of anhydrous alkaloids contained in the
concentrate of poppy straw (M) should be reported (84,000 kg AMA, 10,500 kg ACA and
3,150 kg ATA).
• Under column 2 of Part II, country A should report the use of 50,000 kg of concentrate
of poppy straw (M) for the manufacture of other substances. Under column 1, the
approximate quantity of anhydrous alkaloids contained in the concentrate of poppy straw
(M) used should be reported (22,000 kg AMA, 2,500 kg ACA and 750 kg ATA).
• Under column 1 of Part I, country A should report 210,000 kg of concentrate of poppy
straw (M) manufactured.
• Under column 4 of Part I, 50,000 kg of concentrate of poppy straw (M) that remained in
stock as at 31 December should be reported.
The approximate quantity of anhydrous alkaloids contained in the concentrate of poppy
straw (M) held in stock should also be reported in column 4 (22,000 kg AMA, 2,500 kg
ACA and 750 kg ATA).

For morphine:
• Under column 4 of Part II, in the same row as concentrate of poppy straw (M), country A
should report 20,400 kg of morphine obtained from that CPS(M).
• Under column 2 of Part II, country A should report the use of 10,000 kg of morphine for
the manufacture of other substances.
• Under columns 1, 3 and 4 of Part I, country A should report, respectively: 27,400 kg of

22
morphine manufactured (20,400 kg from CPS(M) and 7,000 kg from opium), of which
5,000 kg are used for the manufacture of Schedule III preparations, and 5,400 kg are held
in stocks as at 31 December of the year in question.
PLEASE NOTE: The disposal of all other quantities of morphine must also be accounted
for during that year in the relevant parts of the Form, whether those quantities have been
consumed, utilized or stocked. Exports would have been reported in the relevant Forms
A.

23
 For codeine:
• Under column 4 of Part II, in the same row as morphine, country A should report 9,000
kg of codeine obtained from that morphine.
• Under column 1 of Part I, country A should report 10,400 kg of codeine manufactured
(9,000 kg from morphine and 1,400 from opium).
PLEASE NOTE: The disposal of the codeine must also be accounted for during that
year, whether it has been consumed, utilized or stocked, in the relevant parts of the Form.
Exports would have been reported in the relevant Forms A.

For thebaine:
• Under column 2 of Part II, country A should report the use of 500 kg of thebaine for the
manufacture of other substances.
• Under column 1 of Part I, country A should report 500 kg of thebaine manufactured.

For oxycodone:
• Under column 4 of Part II, in the same row as thebaine, country A should report 380 kg
of oxycodone obtained from that thebaine.
• Under columns 1 and 2 of Part I, country A should report, respectively: 380 kg of
oxycodone manufactured and consumed.

V. ACTIONS TAKEN BY INCB CONCERNING THE STATISTICAL RETURNS

SYSTEM, INCLUDING DIALOGUE WITH GOVERNMENTS

1. Identification of non-compliance with the provisions of the Convention

91. By analysis of the estimates and the statistical returns submitted by Governments, the Board may
identify possible deficiencies in the implementation of the control provisions in the respective countries.
For example, the Board may identify whether imports or exports of a narcotic drug are in excess of the
total of estimates for the importing country for a given year. The Board may also identify whether the
manufacture of a narcotic drug exceeded the total of estimates of the manufacturing country.

92. In the case of exports, article 31, paragraph 1, subparagraph (b), of the Single Convention, requires
parties not to knowingly permit the export of drugs to any country or territory in excess of the limits of
the total of estimates for that country or territory, with the addition of the amounts intended to be re-
exported. In the case of imports, article 21, paragraph 1, of the Single Convention, requires that parties
limit the manufacture and import of narcotic drugs to the quantities required for legitimate purposes within
the limit of the relevant estimates, with the addition of the quantities to be exported.

93. If exports or imports in excess of the corresponding estimates are identified, then the Board may
contact the countries concerned requesting explanations and corrective measures to be taken. For
example, an exporting country may be requested not to authorize further exports of a narcotic drug to the
importing country during a given year. An importing country may be requested to clarify whether an
apparent excess import is meant to be re-exported, or may be advised to provide a supplementary
estimate to the Board if it requires additional quantities of a narcotic drug during a given year. For more
information on supplementary estimates, please refer to chapter III of Part 2 of this training material. If
excess manufacture is identified, the Board will contact the Government concerned with a request to
decrease the manufacture of the drug in question (see Part 2, paragraph 101, of this training material).

24
 2. Identification of trade discrepancies

94. Upon reception of trade statistics, the Board may identify discrepancies between the data reported
by the exporting country and that reported by the importing country. These discrepancies are brought to
the attention of the countries for clarification, since they may indicate a possible diversion of drugs into
illicit channels or problems in the implementation of control provisions, including reporting requirements,
in the countries concerned.

95. The Board generates a trade discrepancy report, an example of which is given in the following
page, and provides a copy to the competent authorities for their reference. Countries should respond to
the Board’s requests for clarification and should amend data or confirm the statistics already provided.
If the statistics are confirmed, the Board may request further clarification from the competent authorities
until the discrepancies are solved.

96. The exports and imports of a narcotic drug during a given year are taken into consideration when
calculating the balance of the quantities available and utilized of that narcotic drug that same year.
Therefore, when the quarterly statistical data are amended in order to solve a trade discrepancy, it
should also be checked whether the amendment affects the balance in the annual movement of the
narcotic drug in question (see the following section).

3. Identification of annual imbalances

97. Upon reception of annual statistics and comparison with the trade statistics of a given year, the
Board may identify whether there are any annual imbalances in the movement of narcotic drugs in a
country; that is, whether quantities of narcotic drugs available to a country in a given year do not tally
with their disposal. These imbalances are brought to the attention of the countries for clarification, since
they may indicate a possible diversion at the national distribution level, or shortcomings in the national
control system for narcotic drugs.

98. As it is done for the quarterly statistics, an annual discrepancy report is generated upon analysis of
the annual data and a copy is provided to the competent authorities of the country in question. An
example of the report is shown in the following page. The country should review the data reported and
account for any imbalances shown. The country must review not only its data on the annual movement
of narcotic drugs (manufacture, production, consumption, stocks, etc.), but also the data on imports and
exports. Countries should communicate their findings to the Board as soon as possible, since these data
are used in the analytical work of the Board and published annually in its technical report “Narcotic
Drugs: Estimated World Requirements for (year) - Statistics for (year)”.

25
• Following is an example of an international trade discrepancy report:
International Trade Discrepancy Report

Drug (kg) Year 2004

Dihydrocodeine Quarter I II III IV Total
Imports declared by: Country A 0.000 0.001 2.028 2.090
from: Country B
Exports declared by: Country B 0.001 5.853 0.001 5.855
to: Country A

The above report indicates that country A reported an import smaller than the export declared by country B. When the countries involved are requested to review the
data reported, they may identify various causes for these discrepancies; for example, that there was simple human error in the filling in of Form A, that the quantity
reported referred to the quantity authorized to be exported rather than actually exported, that one country reported trade in Schedule III preparations while the other did
not, or in the worst-case scenario, that part of the consignment was diverted into the illicit market.

• Following is an example of an annual discrepancy report:

Country: A Annual Discrepancy Report
Year: 2004
Balance
Amounts utilized (kg) (kg)
1 2 3 4 I 5 6 7 8 9 10 11 II III
Quantity used in the manufacture of:
Opening Manufacture/ Imports Others Total of Consumption Sch III Other Not Exports Others** Closing Total of
Drug/salt stock Production columns preparations drugs covered stock columns (I-II)
1 to 4 substances 5 to 11
Morphine 30.000 15.000 45.000 12.000 5.000 25.000 42.000 3.000

The above report indicates that there is an imbalance between the availability of morphine and its utilization in a given year, resulting in 3 kg that are unaccounted for.
When the country in question is requested to review the data, it should account for the imbalance in question by identifying any misreported or omitted data, in particular
regarding utilization. For example, a country may have neglected to report stocks destroyed due to obsolescence or quantities procured for special purposes.

26
 4. Identification of trends

99. By analyzing the statistical information on the licit movement of narcotic drugs throughout several
years, the Board may identify important trends in such movement. The Board also analyzes the statistical
information it receives in order to identify trends in the worldwide availability of narcotic drugs for
medical needs. A summary of the trends in the licit movement of narcotic drugs worldwide is published
annually by INCB in its technical publication on “Narcotic Drugs: Estimated World Requirements for
(year) - Statistics for (year)”. The statistical data on which such trends are based is published in tables
contained in the same document.

5. Global balance of the supply of and the demand for opiates

100. The Board analyzes the statistical information received regarding the production/ manufacture of
opiate raw materials and the consumption of opiates, in order to aid its work in maintaining the global
balance of the supply of, and demand for, opiates for medical and scientific needs. The results of this
analysis are also published in the technical publication on “Narcotic Drugs: Estimated World
Requirements for (year) - Statistics for (year)”.

6. Publication of the statistical returns

101. The following tables concerning statistical returns are included in the Board’s technical report on
narcotic drugs “Narcotic Drugs: Estimated World Requirements for (year) - Statistics for (year)”. The
statistical data contained in these tables are used in the analyses of the trends in the movement of narcotic
drugs and of the global supply of and demand for opiates:

102. Production OF OPIATE RAW MATERIALS, CONSUMPTION OF OPIATES AND

BALANCE BETWEEN THE TWO, (YEAR) – (YEAR). This is a comparative table covering a total
of 15 years ending with that of the publication and including data on the hectares of opium poppy
harvested, and data on production and consumption (in tons of morphine equivalent). The figures for the
last two years in the table are INCB projections, based on the estimates and statistical data already
furnished.

103. TABLE I: CULTIVATION OF PAPAVER SOMNIFERUM FOR THE PRODUCTION OF

OPIUM, (YEAR) – (YEAR). Table I contains information on the cultivation of opium poppy for the
production of opium. Statistics of actual production are shown for the last five years preceding that of
the publication, while estimates are shown for the current year and the following year. In general, opium
production is expressed as opium having a consistency of 90 per cent (10 per cent moisture content).

104. TABLE II: CULTIVATION OF PAPAVER SOMNIFERUM FOR PURPOSES OTHER

THAN THE PRODUCTION OF OPIUM, (YEAR) – (YEAR). Table II contains information on the
cultivation of the opium poppy for purposes other than the cultivation of opium, including yields, as
available. This includes the production of poppy straw for extraction of alkaloids and for other
purposes. The data relating to poppy straw production are not always available as they are furnished on
a voluntary basis.

105. TABLE III: EXTRACTION OF ALKALOIDS FROM OPIUM and TABLE IV:
EXTRACTION OF ALKALOIDS FROM POPPY STRAW. Table III shows the statistics on the
extraction of codeine, morphine and thebaine from opium, while Table IV gives figures on the extraction

27
of alkaloids from poppy straw. Yields are also presented in both tables.

106. TABLE V: CONVERSION OF MORPHINE. The bulk of the morphine manufactured is

converted into codeine, ethylmorphine or pholcodine. The respective conversion yields also appear in
table V. Two additional columns show the quantities of morphine converted into other drugs, as well as
into substances not covered by the 1961 Convention. The names of these drugs or substances are
indicated in the footnotes.

107. TABLE VI: MANUFACTURE OF THE PRINCIPAL NARCOTIC DRUGS and TABLE VII:
MANUFACTURE OF OTHER NARCOTIC DRUGS. Any narcotic drug manufactured in a quantity
reaching or exceeding 1 kg appears in table VI or table VII. Table VI refers to the principal narcotic
drugs (that is, the ones manufactured in large quantities by several countries) and is broken down by
country, whereas table VII refers to all other narcotic drugs and shows only overall figures.

108. TABLE VIII: PRODUCTION, UTILIZATION, IMPORTS AND EXPORTS OF COCA

LEAF AND MANUFACTURE OF COCAINE. All information relating to coca leaf (production,
utilization, import and export) and to cocaine manufacture is reproduced in a single table giving an
overview of these operations.

109. TABLE IX: CONSUMPTION OF THE PRINCIPAL NARCOTIC DRUGS and TABLE X:
CONSUMPTION OF OTHER NARCOTIC DRUGS. Any narcotic drug consumed in a quantity
reaching or exceeding 1 kg appears in table IX and tables X.1, X.2 and X.3. Tables IX and X.1
present a breakdown by country, whereas tables X.2 and X.3 show only the world total. Table IX
refers to the principal narcotic drugs consumed worldwide. Table X.1 refers to narcotic drugs
consumed in quantities measurable in milligrams (such as fentanyl and its analogues). It should be noted
that, in these tables, consumption includes the manufacture of Schedule III preparations. For the sake of
simplification, the tables arbitrarily consider that these preparations are totally consumed in the countryof
manufacture and during the year of manufacture.

110. TABLE XI. AVERAGE DAILY CONSUMPTION OF DEFINED DAILY DOSES PER
MILLION INHABITANTS. While tables IX and X contain data relating to consumption in absolute
figures, table XI presents information taking into account the population factor, in order to permit
comparisons between countries and the potency of the drugs in question. The indicator chosen for the
purpose of these comparisons is the number of “defined daily doses” consumed on average per year,
during the last five years, per million inhabitants.

111. TABLE XII. TOTAL STOCKS OF NARCOTIC DRUGS. Global stocks of all narcotic drugs
reaching or exceeding 1 kg are shown in table XII.

112. TABLE XIII. WORLD TRADE (EXPORTS AND IMPORTS IN KILOGRAMS) IN (YEAR).
The tables on international trade include all narcotic drugs in which there is significant trade in terms of
quantity and number of importers and exporters.

113. TABLE XIV. SEIZURES OF NARCOTIC DRUGS IN (YEAR). Seizures of narcotic drugs
reaching or exceeding 1 kg appear in table XIV with an indication of the disposal of these seizures.
Seizures released for licit use are reflected in the footnote.

114. COMPARATIVE STATEMENT OF ESTIMATES AND STATISTICS FOR (YEAR). For

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information on this table, please refer to paragraph 106 of Part 2 of this training material.

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