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Guidance

Precursor chemical licensing

Licence and registration application information for companies that deal in precursor chemicals.

Overview

The effective control of chemicals used in the illicit manufacture of narcotic drugs and psychotropic substances is an important tool in combating drug trafficking. These chemicals, known as ‘drug precursors’, also have legitimate commercial uses as they are legally used in a wide variety of industrial processes and consumer products, such as medicines, flavourings and fragrances.

It is necessary to recognise and protect the legal trade in these substances, while at the same time discouraging their diversion for illicit purposes. Drug precursor chemicals should not be confused with Explosive precursor chemicals which are controlled under a separate regime.

This page is about applying for licences and registrations. For the requirements to document, record and label consignments of DPCs, please see this page.

Categories

Regulation of drug precursors covers a number of chemical substances which are divided into 4 categories:

  • category 1 covers the most sensitive substances (the ‘main’ drug precursors)
  • category 2 covers less sensitive substances and some pre-precursors
  • category 3 covers bulk chemicals that can have different types of uses in the manufacturing process (for example, as feedstock, solvents or impurities removers)
  • category 4 covers medicinal products of some category 1 substances

With the exception of category 4 drug precursor chemicals, the legislation generally excludes medicinal products for human use, but covers all natural products and preparations (or mixtures) containing at least one scheduled substance, provided that they can be extracted by ‘readily applicable or economically viable means’.

The precursors and chemicals frequently used in the illicit manufacture of narcotic drugs and psychotropic substances under control are defined by the United Nations International Control Board.

Read drug precursor chemicals: category and CN codes.

The basis for precursor control is to be found in the United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances adopted in Vienna on 19 December 1988.

UN convention

Article 12 of the convention specifically covers ‘substances frequently used in the illicit manufacture of narcotic drugs and psychotropic substances’ and requires that countries implement measures to control and monitor the legitimate trade in drug precursors as an essential way to prevent their diversion.

Legislation

The convention is implemented through the following legislation:

The two Regulations from 2008 specify who the ‘competent authorities’ are for each of the functions in the drug precursor chemicals legislation. These are the Secretary of State (i.e. the Home Secretary, encompassing both the Drugs and Firearms Licensing Unit and Border Force), the National Crime Agency, His Majesty’s Revenue and Customs and the police.

Definitions

The terms used in this guidance are defined as:

Placing on the market: any supply, whether in return for payment or free of charge, of scheduled substances; or the storage, manufacture, production, processing, trade, distribution or brokering of these substances for the purpose of supply.

Operator: any natural or legal person engaged in the placing on the market of scheduled substances.

Responsible officer: operators are required to appoint an officer responsible for the trade in scheduled substances. The officer shall be empowered to represent the operator and to ensure that the trade conducted takes place in compliance of regulations.

Guarantor: another senior person in the company that agrees to guarantee the responsible officer’s performance of their obligations.

Domestic licensing

Domestic licences are required for any companies that possess, manufacture, produce or supply drugs precursor chemicals in England, Wales or Scotland. Domestic licensing requirements apply to Category 1, 2 and 3 drug precursor chemicals.

Domestic licensing requirements for operators in precursors can be found on the Precursor chemicals wallchart for domestic licensing.

You must hold a valid domestic licence to be able to apply for an import-export licence.

Before you apply

To apply, you first need to register as a customer on the controlled drugs licensing system. After registering, you will receive a confirmation email from Drugs and Firearms Licensing (DFLU) containing a link that allows you to download your application form.

Your username and password will be automatically generated and sent to you in 2 separate emails.

Check your spam / junk folder if you do not receive these emails shortly after registering.

Your username and password will not give you immediate access to the web-based licensing portal. You will only get access if your application is successful. 

You do not need to register again each time you apply.

If you have forgotten or lost your login details or need to reset your password, email dflu.dom@homeoffice.gov.uk. When contacting DFLU, use the following subject format: Password reset required - Company Name - Company Account Number.

Disclosure & Barring Service (DBS) Checks

If you have submitted a premises licence application, please be advised that your application will not be progressed until we are in receipt of DBS enhanced disclosure for all persons named on the application form.

For the purpose of a controlled drugs and precursor chemical licence DBS checks are undertaken by Matrix Security Watchdog, we do not accept any other DBS check. You can contact Matrix Security Watchdog directly on 01420 558 752 or visit their website https://www.matrixscreening.com/cheqs

Please note that the Disclosure and Barring Service offer an ‘update’ service whereby for new checks, individuals can opt to ‘subscribe’ to the update service on an annual basis. This will, in certain circumstances, enable a check to be potentially ‘portable’ and a subscription can only be bought within a limited time window. Should you opt for this then an email needs to be sent to us confirming that you provide us with explicit permission to obtain the information. You must provide your full name, DOB and disclosure date and reference number.

Please do not send a copy of your DBS certificate to DFLU unless requested to do so.

Apply for a domestic licence or registration

Before starting your application all prospective and existing licence holders should have the following information and documents ready:

  • the company registration document from Companies House (if applicable)
  • a valid Disclosure and Barring Service (completed via Security Watchdog) reference number and date of issue for the responsible officer and guarantor
  • a certificate of good conduct for the responsible officer – this should be a brief letter signed by another officer of the company such as the guarantor and should, for example, confirm that the responsible officer is a fit and proper person to act as the responsible officer for precursor chemicals; they may also wish to state how long the responsible officer has worked for the company, the role they hold and a statement on how they have carried out their duties
  • a purchase order (PO) number (if applicable to your company or organisation) for invoicing purposes
  • knowledge of the PC substances and categories

Read the application guidance to help you complete your application.

Apply for a domestic licence to produce, supply or possess controlled drugs.

Existing licensees without a password should contact dflu.dom@homeoffice.gov.uk.

Domestic precursor licences and registrations specify the substances within the category which you are permitted to handle. If you need to amend these after a licence has been issued to you, you will need to submit an application for a further licence and a fee will be payable.

Fees

Our fees cover the costs of processing an application and are charged per licensing decision. The fee levels are set out in the The Controlled Drugs (Drug Precursors) (Intra-Community Trade and Community External Trade) Regulations 2010. Read the full list of fees for drugs precursor chemicals licences.

After you apply

Allow up to 16 weeks for us to contact you to arrange a compliance visit, if one is required.

Please note:

  • all first time Category 1 (‘CAT 1’) licensees, new sites and upgrades require a licensing visit
  • CAT 1 renewal applications will be visited every 1 to 5 years or more at our discretion; Category 2 and 3 registration renewals are not routinely visited, but can be on a risk assessed basis
  • applications are only considered complete where all component parts of an application are correct and present
  • if there is a delay because we have asked for more information regarding your application, it will take longer than 16 weeks to contact you to book a compliance visit

If your application is approved, you will receive an email with instructions for payment. We will not issue your licence until the fee is paid.

Once you have paid, the licence will be sent electronically by email.

Compliance visits

We may need to visit your company to check for compliance with controlled drugs regulations. We will only arrange a visit if everyone listed on the application has a valid DBS check.

Applications where a compliance visit is not needed

If you already hold a licence with us and we do not need to visit you, your application will be processed in 8 to 10 weeks from the point where an application acknowledgement email has been sent.

If we have asked for further information or documents, the 8 to 10 weeks will start at the point we have received all requested information and documents and the acknowledgement email has been sent.

You must confirm in writing if there have been any changes in the following areas since issuing your previous licence:

  • security arrangements
  • standard operating procedure relating to controlled drugs or precursor chemicals
  • responsible persons or guarantor (if applicable)

The following information or documentation must be supplied:

  • supporting photographs of your current storage arrangements, for example a photo of your safe open and closed, key safe or press as appropriate
  • supporting photographs of a page from your register or records showing the most recent entries
  • an electronic copy of your latest standard operating procedure (highlighting any amendments that have taken place)

End-user declarations

Regulations require that operators who supply category 1 substances are required to obtain a declaration from the end-user specifying the intended use of that substance.

Declarations relating to the supply of category 2 substances are dependent on the level of trade involved.

Import and export licensing

Import and export licences are required for companies for the movement of any drug precursor chemicals that are imported or exported to and from GB and, in some cases, Northern Ireland.

The import-export licensing requirements for trading in precursor chemicals can be found on the Precursor chemical export and import authorisation page. Please read the section on trade between Great Britain and Northern Ireland to ensure you are familiar with any changes to licensing requirements after 1 January 2021.

Before you apply

You need an NDS account to apply for an import or export licence. You can read the user guide for more information on what to do.

You will need a domestic licence covering the specific chemical for which you are applying before you can apply for an NDS account. If you do not have a valid domestic licence your request will be cancelled. Once your account is approved you will need to tell us about your overseas trading partners and details of your controlled drug preparations.

Please read the import and export section.

Fees

Read the full list of fees for drugs precursor chemicals licences.

All fees for import and export licences are invoiced in arrears at the end of the month. If fee invoices for import-export licences are not promptly settled we will not process further import-export licence applications until all outstanding invoices are paid.

Apply for an import or export licence

Import licences are valid for 3 months. Export licences are valid for either 2 months or in line with the permit of the importing country, whichever expires first. You need to apply for a new import or export licence for each individual shipment. Licences cannot be post-dated or retrospectively issued.

If you are applying for a UK export licence you must include a copy of the import permit or it will be rejected.

If you are applying for a Category 1 import licence you must upload a completed version of the precursor chemical import questionnaire checklist (ODT, 6.86 KB) and your domestic licence with your application or it will be rejected.

Pre-export notification (PEN): waiting period

The vast majority of export authorisation applications are subject to a pre-export notification (PEN) process. The proposed shipment is electronically notified between competent authorities by way of the pre-export notification (PEN) system; applicants need not apply separately for this.

This process takes up to 17 working days and a decision is reached regarding authorisation of the shipment after this process is completed. The competent authorities may refuse the import or export of the substance if there are grounds for suspecting that diversion might occur.

Please note this time is in addition to the standard DFLU import-export licencing processing time for applications not subject to the PEN process (up to 10 working days). You must therefore allow time for both the licence processing time and the PEN waiting period when planning your intended shipments.

Endorsements

A condition of all import and export licences issued by the Home Office is for an immediate online endorsement of the actual shipment amounts and date of shipment to be made on the NDS web portal, once they have been shipped.

If you do not regularly submit timely endorsements we will not process further licence applications from you.

Annual statistical returns

If you are a wholesaler, manufacturer, producer or supplier of controlled drugs or drug precursor chemicals you must send a completed annual returns form each year, to annualdrugreturns@homeoffice.gov.uk.

Read the guidance about annual statistical returns.

Trading in drug precursor chemicals between Great Britain and Northern Ireland

The United Kingdom left the European Union on 31 January 2020 and the subsequent transition period ended on 31 December 2020.

The Windsor Framework which was subsequently agreed by the EU and the UK affects the future trading relationship between Great Britain (GB) and Northern Ireland (NI) for drug precursor chemical control.

For the purposes of drug precursor chemical control, NI continues to apply European Union regulations, while GB does not. This means NI companies trading with European Union Member States will not require import or export licences as this is considered ‘intra-community trade’.

However, trade between GB and NI will be subject to licensing in accordance with the requirements in Precursor chemical export and import authorisation. This includes ‘category 4’ drug precursor chemicals, namely Medicinal Preparations of ephedrine and pseudoephedrine.

The Drug and Firearms Licensing Unit continues to act as one of the UK competent authorities for drug precursor chemical control. Both GB and NI companies should apply to the Drugs and Firearms Licensing Unit for their licences using the links above. No fee is charged for import and export licences between GB and NI.

Companies therefore need to submit an end-user declaration form to their supplier:

Thefts and losses

You can report any theft or unaccounted losses of controlled drugs by email to dflu.dom@homeoffice.gov.uk using the thefts and losses form.

Licence no longer needed

If your company no longer needs a controlled drugs or precursor chemicals licence or registration you will need to submit a controlled drugs licence return premises closure statement.

Even if you continue to trade but no longer handle controlled drugs or precursor chemicals you will need to submit a statement. This includes site closures.

Documentation, records and labelling

There are also requirements to document, record and label consignments of DPCs.

Suspicious activity reports

If you notice any circumstances, such as unusual orders and transactions, which suggest that a drug precursor chemical being traded within the UK or between the UK and another country might be diverted to produce illicit drugs, you must notify the National Crime Agency immediately. This page tells you how to do that and what information you need to provide .

Personal information

You can read details of how we handle your personal information.

Contact details

Depending on your query, there are a number of ways to contact the DFLU.

Domestic licensing

Email dflu.dom@homeoffice.gov.uk

or call 0300 105 0248

This address deals with domestic (UK) controlled substance licences including precursor chemicals, applications, renewals, compliance visits, thefts and losses, surrender or returning licence, or general enquiries about domestic licensing.

Import and export licensing

Email dflu.ie@homeoffice.gov.uk

This address deals with the import and export of controlled substance into or from the UK, import and export licences, applications, endorsements of licences, or general enquiries about import and export licensing.

Customer complaints

Email dflu.complaints@homeoffice.gov.uk

This address deals with customer complaints about import and export, or domestic licensing of controlled drug, precursor chemical or industrial hemp licensing. You should first attempt to resolve any issues initially with either the domestic licensing or import-export team directly using the contact details above.

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  1. Step 1 Check if you need to follow this process

  2. Step 2 Get your business ready to import

    You need an Economic Operators Registration and Identification number (EORI number) that starts with GB to import goods into England, Wales or Scotland. You'll need a new one if you have an EORI number that does not start with GB.

    If you move goods to or from Northern Ireland, you may need one that starts with XI.

    1. Get an EORI number

    If you store goods in the UK for sellers outside the UK, you may need to apply to the Fulfilment House Due Diligence Scheme.

    1. Find out if you need to apply to the Fulfilment House Due Diligence Scheme

    There are processes that can make clearing customs quicker and easier to manage if you have to make import declarations regularly.

    1. Find out about using simplified declaration procedures
    2. Check if Authorised Economic Operator status is right for you
  3. and Check the business sending you the goods can export to the UK

    The business sending you the goods may need:

    • to make an export declaration in their country
    • licences or certificates to send goods to the UK

    Check whoever is sending the goods is able to export them from their country.

  4. Step 3 Decide who will make customs declarations and transport the goods

    You can hire someone to deal with customs and transport the goods for you, or you can do it yourself.

    Most businesses that import goods use a transporter or customs agent.

    1. Find out how to hire someone to deal with customs for you
  5. Step 4 Find out the commodity code for your goods

    You’ll need to include the commodity code on your import declaration. This will determine the rate of duty you need to pay and if you need an import licence.

    Your customs agent or transporter might be able to help you with this.

    1. Find the right commodity code for your goods
  6. and Work out the value of your goods

    When you make your import declaration, you’ll need to include the value of your goods - this helps work out how much duty and VAT you’ll need to pay.

    1. Work out the value of your goods for customs
  7. Step 5 Find out if you can reduce your Customs Duty

    You may be able to pay less or no Customs Duty if the UK has a trade agreement with the country you're importing from.

    1. Find out if you can pay a lower rate of Customs Duty because of a trade agreement

    Some goods qualify for suspended or reduced Customs Duty under 'UK duty suspensions' or 'autonomous tariff quotas'.

    1. Check if a duty suspension or tariff quota covers your goods

    You may also be able to reduce the amount of duty you pay based on what the goods are and what you plan to do with them.

    1. Check other ways you can pay a lower rate of Customs Duty
  8. and Find out if you can delay your Customs Duty

    You may be able to delay sending information about goods or paying Customs Duty.

    1. Check if you can delay your Customs Duty
  9. Step 6 Check if you need a licence or certificate for your goods

  10. Step 7 Check the labelling, marking and marketing rules

  11. Step 8 Get your goods through customs

    If you've appointed someone to deal with UK customs for you, they'll make the declaration and get your goods through the UK border.

    1. Make an import declaration yourself and get your goods cleared by UK customs
  12. Step 9 Claim a VAT refund

    If you're VAT registered, you can claim back any VAT you paid on the goods you've imported. You’ll need your Import VAT Certificate (C79).

    1. Find out how to claim a VAT refund
  13. Step 10 If you paid the wrong amount of duty or rejected the goods

    If you paid too much Customs Duty or import VAT or rejected the goods, you can claim a refund or ask for a payment to be waived.

    1. Find out how to claim a refund or make a claim for rejected imports

    If you paid too little Customs Duty or import VAT, report it to HMRC.

    1. Find out how to tell HMRC you’ve underpaid and pay the difference
  14. Step 11 Keep invoices and records

    You must keep records of commercial invoices and any customs paperwork, including your Import VAT Certificate (C79).

    If you imported controlled goods, for example firearms, keep any paperwork that shows who owns them.