Justice sets rules for forwarders handling controlled substances

CP Ships second-quarter income jumps 'The Justice Department's Drug Enforcement Administration has defined rules for establishing freight forwarding facilities for DEA distributor registrants.
''''The agency had proposed the rules on Dec. 18, 1996, but has amended them based on comments received. The new rules will take effect August 18.
      Under the rules, a distributor, manufacturer or importer may establish a freight forwarder facility through which the distributing registrant may transfer controlled substances in the course of delivery to customers. The distributing registrant and freight forwarding facility must be part of the same corporate entity. A distributor may have multiple registrations transferring substances through the facility.
''''The DEA registration requirement would be waived for the freight forwarding facility upon proper notice of the distributing registrant.
''''Controlled substances transferred through the facility may be stored in the facility for less than 24 hours. Containers must be kept under continuous observation by designated individuals or a lock-down facility with a monitored alarm system in place may be used.
''''Records must be maintained by the distributing registrant regarding the transfer of controlled substances through the facility, reflecting date, time of transfer, number of packages shipped, and authorized signatures for each transfer. Documentation may be centrally provided. Each shipment must contain all documentation usually required.
''''Customer returns may be transferred through the facility, provided the returns are pre-authorized and the official transfer takes place at the customer's registered location and the returns are treated in the same manner as distributions to customers through the facility.