Synthetic Drugs

Report on the Illicit Drug Situation in Canada - 2009

MDMA (Ecstasy)

Key Findings

• An abundant supply of Canadian-produced MDMA (also known as Ecstasy) continued to meet domestic consumption requirements, and provide significant quantities for international markets such as the United States, which saw an increase in cross-border MDMA shipments.
• Seizures of Canadian-produced MDMA, in or en route to other countries, indicated that Canadian-based organized crime groups (OC groups) expanded their international markets.

Prior to 2004, the majority of MDMA available in Canada was manufactured in the Netherlands and, to a lesser extent, Belgium. Importations of MDMA began to decrease significantly as OC groups started producing MDMA on a large scale within Canada. By 2005, Canada was recognized as a global MDMA source. In 2009, MDMA continued to be the most sought after and widely available controlled synthetic drug in the Canadian illicit market. Global demand for Ecstasy remained high, and Canada’s role as a MDMA source country was undiminished.

Supply and Smuggling Patterns

In 2009, an abundant supply of Canadian-produced MDMA continued to meet domestic consumption requirements, as well as provide significant quantities for international markets.⁴⁰ Domestic prices for MDMA remained at the record low levels from 2008, while purity levels of the drug remained high, or even may have increased. The nature or extent of MDMA production in Canada appeared to be unaffected by the significant shortage in the supply of MDP2P, that reportedly impacted European markets. In Europe, the shortage resulted in a decline in Ecstasy seizures and in the number of seizures of laboratories, storage, and dump sites related to large-scale MDMA production.

Cross-border MDMA smuggling from Canada to the United States, the primary foreign market for Canadian-produced MDMA, significantly increased from 2008. As in previous years, smuggling activity at or between ports of entry (POEs) was reported in the provinces of British Columbia, Ontario, and Quebec.⁴¹ For example, a record amount of 2.6 million dosage unit equivalents confirmed as MDMA were seized in the Pacific region in 2009. However, there was also smuggling activity across the Canada-U.S. border in other provinces, such as Manitoba.⁴²

Land transport continues as the predominant method of moving MDMA shipments across the Canada-U.S. border. The use of personal vehicles continued to exceed that of commercial transport, while the use of postal/courier services, and smuggling on foot across the border increased slightly in 2009. To a lesser extent, MDMA shipments were moved via rail and air (small aircraft, helicopter). Smugglers used a variety of concealment methods to move MDMA across the border in vehicles, including: spare tires, luggage, roofs, dashboards, fuel tanks, hidden compartments, and body carrying. Although shipments exclusively containing MDMA tablets were more common, cross-border poly-drug smuggling involving MDMA continued to be detected. As seen in 2008, there was more diversification in drug commodities co-mingled with MDMA smuggled from Canada to the United States, including marihuana, methamphetamine (meth), cocaine, and oxycodone (e.g. OxyContin®).⁴³

Canadian exports of MDMA to countries in the Asia-Pacific region continued. In 2009, seizures in or en route to this part of the world indicated an expansion in consumer markets there.⁴⁴ Seizures of MDMA destined for Mexico and Jamaica suggested that Canadian-based OC groups were further expanding their international operations.

MDMA shipments destined for the Asia-Pacific region consisted of relatively smaller quantities transported by modes suitable for modest consignments: postal/courier services, and airline passenger luggage. By comparison, air cargo was used to transport the largest shipment, consisting of 270,000 MDMA tablets, seized in Taipei, Taiwan.

Trafficking Activity and Groups

MDMA trafficking within, and from Canada showed no signs of decreasing in 2009 — nationwide seizures of MDMA totalled an estimated 955,000 tablets and 166 kilograms (kg).

While MDMA trafficking has expanded across the country, British Columbia, in particular, remained Canada’s gateway province for MDMA production, trafficking, and exportation. Nevertheless, inter-provincial Ecstasy trafficking to and from the Northwest and Atlantic regions increased significantly during 2009; there were indications these activities were linked to OC groups in the Pacific and, to a lesser extent, Central regions. Over the last two years, trafficking activity in Manitoba indicated that this province became an important transit point for inter-provincial trafficking as well as a potential cross-border route for MDMA destined for the United States. Increased domestic trafficking was also reflected in significant MDMA seizures in regions of the country where seizures of small amounts have been the norm.

While law enforcement experienced several successes in 2009, including the dismantling of significant organized crime networks involved in MDMA production and trafficking in both Western and Eastern Canada, organized crime continued to drive the MDMA trade in Canada. Organized crime groups with links to China, and concentrated in the Pacific and Central regions of Canada, continued to dominate production and wholesale distribution at both the national and global levels. Other OC groups with links to Southeast Asia (Vietnamese), and South Asia (India) continued to be associated with domestic trafficking, and cross-border MDMA trafficking from Canada to the United States. A variety of other crime groups were also involved in varying aspects of the domestic MDMA trade, including Quebec-based independent groups, outlaw motorcycle gangs, crime groups with links to Eastern Europe, and independent, less-structured associates more common to the Northwest and Atlantic regions.

Major Seizures in Canada

• In May, an estimated 150,000 tablets of MDMA were seized in Riding Mountain, Manitoba from a vehicle returning to Edmonton, Alberta from Winnipeg, Manitoba.
• In July, 65 kg of MDMA powder were seized in Headingley, Manitoba from a commercial transport truck travelling from British Columbia to Ontario.
• In November, an estimated 47,000 MDMA tablets bearing the “Chanel” logo were seized at Vancouver International Airport from luggage belonging to two Japanese nationals travelling back to Japan.
• In December, 107,000 MDMA tablets, bearing the “Olympic Rings” and “Peace Symbol” logos, were seized from a residence in Vancouver, British Columbia.

International Seizures (en route to and/or originating in Canada)

• In May, an estimated 390,000 MDMA tablets were seized in Blaine, Washington, from a hidden compartment under the cargo floor of a tow truck en route to California from British Columbia.
• In November, 400,000 MDMA tablets and 45 kg of marihuana were seized in Sandusky, Michigan, as the shipments were being transferred from a small Canadian aircraft to a waiting vehicle.

Methamphetamine

Key Findings

• Canadian-based OC groups continued to produce abundant supplies of methamphetamine (meth) for both the domestic and world markets, particularly Japan and Australia.

Since the 1960s, the supply and demand of meth — one of the longest controlled synthetic drugs circulating in Canada — has surged and waned. Globally, meth continues to be one of the most desired amphetamine-type stimulants; this international demand is one of the factors responsible for Canada’s continued status as an international meth supplier in 2009.

Supply and Smuggling Patterns

Meth availability remained strong across Canada in 2009, reflecting steady production capable of supplying both the domestic and world markets. While an estimated 97 percent of meth seized in Canada originated from domestic laboratories, Canadian seizures of meth produced in foreign countries increased slightly, and are largely attributed to three seizures in late 2009.

Over the past decade, meth smuggling across the Canada-U.S. border, both north- and southbound, has been generally consistent, involving mostly small shipments (typically under one kg). However, in 2009, there was a slight increase in both seizures of Canadianproduced meth destined for the United States as well as in U.S. shipments en route to Canada. A December seizure of 20 kg of crystal meth destined for Canada was the largest crossborder meth seizure reported within the last decade. Personal vehicles were the predominant mode of transport used to move meth shipments across the Canada-U.S. border. Poly-drug smuggling was evident in the cross-border movement of meth from Canada to the United States; in two incidents, meth was shipped along with MDMA (Ecstasy), and in another occurrence, with oxycodone. The Asia-Pacific region, particularly Australia and Japan, was again an important consumer market in 2009 for Canadian-based OC groups producing and distributing significant quantities of meth. However, quantities of this drug seized in or en route to the Asia-Pacific region were lower than in 2008, with the greatest amount (22 kg) seized by Australian Customs officials from a foosball table transported via air cargo. The transportation method used to move illicit drugs, including meth, across the globe, typically depends on the amount/weight of the substance being shipped. Consistent with previous years, air passengers/couriers were frequently used to smuggle mid-sized meth shipments (< 10 kg), while the postal system was used to transport smaller quantities.

Trafficking Activity and Groups

Organized crime groups based in Quebec continued to specialize in producing meth tablets for both the regional trade and other provincial markets (notably the Atlantic region), as well as some regions within the United States. Within the province of Quebec, logo tablets containing meth have been generally marketed as the actual drug. Outside of Quebec, however, these same tablets have been mostly held out to be MDMA (Ecstasy), although in 2009 it was reported that these pills were sold as meth in northern New Brunswick.⁴⁵ In recent years, both powder and crystal meth have become less available in Central and Atlantic Canada, while these forms are still prevalent in the Pacific and Northwest regions of the country.

In 2009, RCMP investigative and seizure activity continued to point to high levels of intra and inter-provincial meth trafficking, with OC groups operating in the Pacific and Central regions of the country providing the primary supply and distribution links to the Northwest and the Atlantic provinces, respectively. Canadian-based OC groups continued to use British Columbia (Vancouver) and, to a lesser extent, Ontario (Toronto) as the main staging points for shipments destined for the Asia-Pacific region. Patterns of organized crime involvement in the Canadian meth trade were mostly unchanged from 2008. Criminal networks with links to China continued to have a prominent role in meth production, and in both domestic and global distribution. In 2009, meth shipments believed to have originated in Mexico, and destined for British Columbia, coupled with the emergence of crime groups with links to Mexico in the Quebec meth market, pointed to possible connections between Mexico and Canadian-based crime networks.

Major Seizures in Canada

• In February, 10 kg of meth powder and 5,000 MDMA tablets were seized in Vancouver, British Columbia, from luggage belonging to a bus passenger travelling to Edmonton, Alberta.
• In April, 10 kg of crystal meth were seized in Evansburg, Alberta from a personal vehicle en route to Edmonton, Alberta, from Vancouver, British Columbia.
• In September, three kg of meth powder were seized by CBSA at Vancouver International Airport from an air passenger who was carrying the drug on his/her person prior to boarding a flight to Sydney, Australia.

International Seizures (en route to and/or originating in Canada)

• In May, four kg of meth were seized in Narita, Japan, from luggage belonging to an air passenger travelling from Toronto Pearson International Airport.
• In September, 10 kg of meth were seized in Sydney, Australia, from luggage belonging to an air passenger travelling from Vancouver, British Columbia.
• In December, 20 kg of meth were seized by U.S. authorities in Burlington, Washington, from a vehicle en route from the state of California to British Columbia.

Other Synthetic Drugs

Key Findings

• The dismantling of an amphetamine lab and a PCP⁴⁶ lab in Quebec in 2009 indicates drug traffickers continued to produce other synthetic drugs in Canada, even though significant seizures of these types of labs have not occurred in many years.
• Increased supplies and trafficking of ketamine, especially in the Pacific and Northwest regions, as well as Ontario, indicated a renewed interest in this drug as an alternative or supplement to MDMA and meth.
• Increasingly, BZP⁴⁷ is being used to manufacture poly-drug or ‘mimic’ tablets, mostly sold as Ecstasy. In 2009, there was an abundant supply of BZP in the domestic illicit market and a strong increase in incidents of cross-border smuggling of tablets from Canada to the United States.

Despite the continued high demand for and availability of MDMA (Ecstasy) and meth, other types of synthetic drugs (both controlled and non-controlled) continue to resurface and emerge in the Canadian illicit drug trade. This is due in part to the ability of OC groups to diversify and shift drug commodities in response to demand and law enforcement measures. Over the past year, traditional substances, such as amphetamine and PCP, and newer substances such as gamma hydroxybutyrate (GHB) and ketamine, diverted prescription drugs (particularly synthetic opiates), and non-controlled piperazine-class drugs (BZP, TFMPP⁴⁸)⁴⁹ were increasingly available in Canada.

Supply and Smuggling Patterns

Overshadowed by the sharp rise in popularity of both MDMA and meth over the last decade, traditional substances such as amphetamine, PCP, LSD, and psilocybin continued to have a limited presence in the Canadian illicit drug market. Despite indications of diminished supplies, there has been ongoing domestic production of these substances as exemplified by the dismantling of an amphetamine lab and a PCP lab in Quebec in 2009.⁵⁰ Foreign sources of supply may have also contributed to the increased availability of these drugs in Canada, as demonstrated by a seizure at Toronto Pearson International Airport (TPIA) of almost 20 kg of amphetamine smuggled via air cargo from Pakistan.

Increased supplies of GHB and ketamine circulating in the Canadian illicit market in 2009 suggest renewed interest in these recreational drugs for their use as alternative, or supplemental, substances to MDMA or meth. Ketamine continued to be a common ingredient in tablets sold as Ecstasy, and was also found in other stimulant drugs such as meth and cocaine, supported by Health Canada drug analyses conducted in 2009. Significant quantities of gamma-butyrolactone (GBL), the immediate precursor to GHB, continued to be seized in 2009, indicative of ongoing domestic production and wider distribution. Occasional imports of small amounts of GHB continued in 2009, but domestic clandestine laboratories (clan labs) provided the bulk of supply. By comparison, ketamine supplies were either diverted from legal sources or smuggled into Canada from foreign countries. As in 2008, international smuggling of this drug continued to rise, however, the shipments seized were smaller. South Asia (India, Pakistan) was again identified as a significant ketamine source region, followed by East Asia (China). The majority of seizures were effected by CBSA at TPIA and the Toronto International Mail Centre, mostly involving shipments transported by postal/courier service. The absence of reported seizures of ketamine and/or GHB at Canada-U.S. ports of entry suggests that cross-border smuggling of these substances was either minimal or non-existent.

Opiate derivate medications, particularly oxycodone (e.g. OxyContin®), benzodiazepines, and erectile dysfunction medications, such as Viagra® and Cialis®, were among the top diverted pharmaceutical products across the country. Counterfeit versions of OxyContin® and erectile dysfunction medications have been smuggled into Canada from foreign sources, however, supply from domestic clan labs continued to increase in 2009. With the exception of anabolic steroids and anaesthetics (benzocaine, procaine, and lidocaine), most prescription drugs diverted to the illicit market were obtained from domestic legitimate sources; this shows a considerable decline in international smuggling from 2008. As in previous years, traffickers procured supplies mainly through traditional means of diversion, including double doctoring, theft, prescription fraud/forgery, and via the Internet. Cross-border smuggling of diverted prescription drugs from Canada to the United States remained limited, generally involving small quantities. In one particular occurrence, however, U.S. authorities in Bellingham, Washington seized 1,800 OxyContin® tablets mixed with 190,000 MDMA tablets from a shipment originating in the Pacific region.

Organized crime groups continued to obtain BZP powder from foreign sources, notably China.⁵¹ Synthetic drug producers increasingly used BZP (and other piperazine derivatives) to manufacture poly-drug or ‘mimic’ tablets, mostly sold as Ecstasy. Investigations and seizures pointed to abundant supplies in the domestic illicit market and a pivotal rise in the incidence of cross-border smuggling of BZP tablets from Canada to the United States. BZP smuggling across the Canada-U.S. border continued principally in the Pacific region, although smuggling activity through the province of Ontario was also evident. In 2009, the number of tablets confirmed as BZP, and seized at U.S. ports of entry (POEs) in the Pacific region, increased from 203,897 tablets (one seizure) in 2008 to 652,369 tablets (seven seizures). The modes and methods of concealment used to smuggle BZP were similar to those used for cross-border MDMA shipments. Vehicles, commercial courier, persons on foot between the POEs, and marine vessel (pleasure craft) were used to move thousands of dosage units across the border. Shipments transported by vehicle were mainly concealed within hidden compartments.

Trafficking Activity and Groups

Trafficking of other synthetic drugs increased in 2009, indicating more diversification in the national illicit trade. Seizure activity showed that trafficking of most traditional substances remained limited and occurred across the country. PCP trafficking continued to be concentrated in Quebec, while amphetamine trafficking was seen in both Quebec and Ontario.

On a national level, investigations and seizures demonstrated a resurgence of organized crime interests in ketamine and GHB trafficking. Ketamine distribution was reported particularly in the Pacific and Northwest regions, and in Ontario, while GHB trafficking was more widespread, with a focus on Eastern Canada.

The illicit trade in pharmaceutical drugs is an expanding problem, highlighted by increased trafficking in opiate derivative medications. In particular, oxycodone (e.g. OxyContin®) misuse and trafficking have increased in Canada, reflected in rising seizure rates and investigative activities, and in the increasing number of fatalities attributed to oxycodone use.⁵² The increased presence of counterfeit versions of OxyContin® in both Western and Eastern Canada may be an indicator of developing organized crime involvement.⁵³ Counterfeit tablets representing Viagara® and Cialis® have been, and continued to be, a trademark activity of OC groups operating in Quebec.

Organized crime groups based in Canada have exploited the current legal status of BZP and other piperazine-class drugs, while providing ample supplies of tablets presumed to be Ecstasy, to both the domestic and global markets.

In 2009, OC groups involved in the MDMA and meth trades, including those with links to Asia, and outlaw motorcycle gangs, have shown renewed and developing interests in ketamine and GHB trafficking, and in producing, distributing, and smuggling piperazine derivatives. Other crime groups continued to play an important role in other synthetic drug trafficking specifically involving traditional substances and diverted pharmaceuticals.

Major Seizures in Canada

• In January, CBSA at TPIA seized six kg of ketamine originating in China from an air cargo shipment.
• In March, 11 kg of ketamine and five kg of MDMA were seized in Toronto from a residence.
• In August, 2,700 opiate derivative prescription drugs, including OxyContin®, were seized in Fredericton, New Brunswick, again from a residence.
• In October, 68 kg of psilocybin (dried mushrooms) were seized in Lake Louise, Alberta from a pickup truck.
• In November, 19 kg of ketamine, a small amount of MDMA, and an inactive meth lab were seized from a home in Edmonton, Alberta.

International Seizures (en route to and/or originating in Canada)

• In April 105,194 BZP tablets were seized in Blaine, Washington from a personal vehicle travelling from British Columbia. There was a similar seizure in September of 104,957 BZP tablets.

Precursor and Essential Chemicals

Key findings

• Over the past year there has been a major decrease in the amount of bulk ephedrine seized at Canadian ports of entry.
• In 2009, new chemicals such as phenylacetylcarbinol (L-PAC), which can be used to make ephedrine, have been found across the country.

Since 2007, there has been a steady increase in the demand for and procurement of unregulated precursor and essential chemicals for synthetic drug production. While China and India have historically been the main sources of precursor and essential chemicals for Canadian synthetic drug production, in 2009 India became the primary source.

Supply and Smuggling Patterns

Precursor and essential chemicals (regulated and unregulated) are primarily manufactured in China, India, and in the case of GBL, Poland and the Netherlands; they are imported or smuggled into Canada. Legitimate companies import these chemicals to manufacture goods ranging from industrial cleaners to pharmaceutical products. These chemicals can also be used to produce meth, MDMA, and a variety of other synthetic drugs in order to supply domestic and international demand. As a result, chemical shipments legitimately imported into Canada are at risk of diversion⁵⁴ or theft to provide clandestine laboratories (clan labs) with the materials required to produce illicit synthetic drugs. Programmes such as the RCMP’s ChemWatch program rely on industry partners who work with law enforcement to prevent and investigate incidents of diversion.

In 2009, three precursor chemicals were seized at Canadian ports of entry (POEs): ephedrine, pseudoephedrine, and gamma-butyrolactone (GBL). There was a major decrease in bulk ephedrine seizures at Canadian POEs between 2008 (982 kg) and 2009 (92 kg). There was a significant decrease in both the number of ephedrine seizures (at the border) and the size of such seizures in 2009. In contrast, the amount of pseudoephedrine seized in 2009 doubled from the previous year (from 56 kg in 2008 to 118 kg in 2009). The amount of GBL seized at the border dramatically increased from 2008. The total amount of GBL seized inland in 2009, however, was less than in 2008. ⁵⁵ In 2009, the largest seizure of GBL in Canada — 1,995 litres — originated in China; smaller GBL seizures primarily originated in, or transited, Poland and the Netherlands. Smuggling methods for precursor chemicals remained consistent with those reported in 2008: the chemicals were generally declared as another chemical or concealed like other contraband in shipments of legitimate goods such as foodstuffs or clothing.

In 2009, there was a resurgence in unique synthetic drug production methods (see Production of Synthetic Drugs, page 43), which required the acquisition of new or historically used chemicals. Phenylacetylcarbinol is one of the new chemicals that surfaced in Canada in 2009 in connection with synthetic drug production. L-PAC is a chemical that is solely used to produce ephedrine, and has historically been used only by the pharmaceutical industry. Nevertheless, recently a number of countries (including Australia, Canada, and the United States) reported finding this chemical at clan labs. This indicates that alternative means of obtaining ephedrine for the synthesis of meth are being pursued by criminals. Currently, L-PAC is manufactured primarily in India by a very small number of companies which legitimately produce the chemical and L-PAC-derived ephedrine for domestic and international pharmaceutical companies (mostly for the production of cold medications).

Safrole, a chemical previously used in older production methods for MDMA, appeared to have made a resurgence; for example, an 80 litre seizure of safrole was made in late 2009. Since the appearance of the simpler cold method using MDP2P in 2005, safrole has not been commonly used in/for the production of MDMA (Ecstasy) in Canada. In 2009, there was also an increase in seizures of tartaric acid, which is used to upgrade the potency of meth produced using the historical phenyl-2-propanone (P2P) production method.

Trafficking Activity and Groups

The synthetic drug trade is well established in Canada. Organized crime groups/networks not only broker chemicals and operate clan labs, they also supply and control the vast majority of synthetic drug production in Canada. Organized crime groups that traditionally operated independently are now working together throughout the various stages of synthetic drug production (chemical brokering, production, and distribution). While OC groups with links to Southeast Asia continue to dominate chemical brokering operations (mostly because of ties to various Asian countries), there are a number of criminal enterprises including individual operators and semi-legitimate companies that are also brokering or procuring their own chemicals for synthetic drug production.

Major Seizures in Canada

• In February, the RCMP seized approximately 89 kg of loose powdered ephedrine found along a rural road in Middlesex county (near London, Ontario). As there was no indication of the identity of the owner, the case was closed and the precursor destroyed.
• In October, CBSA officers at Vancouver International Airport seized approximately 23 kg of pseudoephedrine from 48 containers. The shipment, which was declared as vanilla flavouring, arrived via courier from Mumbai, India.
• In September, CBSA seized sixty nine 45-gallon drums of GBL from the Port of Montreal. In total, 1,995 litres of GBL were seized.⁵⁶ This amount could be synthesized into 16,558 doses of GHB, which has an approximate street value of just over $33,000,000.⁵⁷

Production of Synthetic Drugs: Clandestine Drug Laboratories

Key Findings

• The number of clan labs seized in Canada is consistent with previous years, including the percentage of labs seized that were devoted to meth and MDMA production.
• There is evidence of a decrease in availability of some bulk precursor chemicals in Canada, particularly for meth production.
• In addition to a resurgence of methods that were popular in the past, new methods of producing ephedrine and meth were reported in 2009.

Clandestine Laboratory Operations

Trends in synthetic drug production have remained relatively consistent over the past five years. However, clan lab activity and precursor trafficking in 2009 suggested a shift was occurring in synthetic drug production, both in Canada and abroad. A primary factor in this shift was the increasing difficulty OC groups were experiencing in obtaining the bulk precursor chemicals for use in the production of meth (ephedrine) and MDMA (MDP2P). Some of the factors influencing this decrease in availability of precursor chemicals were the result of activity outside of Canada’s borders. Reports of the Chinese government tightening controls on the production and movement of precursor chemicals were confirmed in the 2009 “Annual Report on Drug Control in China”.^viii Similarly, Mexican legislation passed in 2008, which banned ephedrine and pseudoephedrine and required stockpiles of chemicals be depleted by January 1, 2009, has also had an impact on the global availability of ephedrine in particular.^ix There have also been reports from Europe that MDP2P seizures have significantly decreased. While this has not been reflected by the number of MDMA labs seized in Canada in 2009, nor by the types of chemicals being seized in these labs, this same trend may affect Canada in the near future.

Significant change to production methods in 2009 is additional evidence of this decreased availability of precursors in Canada, particularly for meth production. There has been resurgence in production methods that were used previously to produce synthetic drugs in Canada, but have not been used recently. One such method is the use of P2P — a production method known to give a relatively low yield of quality meth, and therefore not a preferred synthesis process. Consequently, the increase in P2P lab seizures is a strong indicator that the availability of ephedrine (used in the preferred, and higher yielding, Red Phosphorus method) has decreased.

Another new trend across the country was the increasing use of tablet extraction as a source of ephedrine for meth production.⁵⁸ Tablet extraction labs have been seized in past years, however, 2009 marked the first year that such labs became the norm in terms of acquiring ephedrine.

In 2009, 45 clan labs were seized by various Canadian police agencies. The majority of labs seized were meth labs — twice as many meth labs were seized as MDMA labs. This is particularly interesting given the aforementioned reduction in availability of bulk ephedrine.

As reported in the Precursor and Essential Chemicals section, there were a number of significant GBL seizures in Canada in 2009. While only two GHB labs were recorded for 2009, this is not unusual due to the ease with which GHB is produced. The manufacture of GHB requires only three basic chemicals (all of which are available at local hardware stores) and a kitchen stove. Given the simplicity of the production method, GHB labs are difficult to locate.⁵⁹

The vast majority of clan labs seized in Canada continued to be located in urban areas, primarily in the Vancouver region, the Greater Toronto Area, and the Montreal region. The relative compactness of synthetic drug production reduces the space requirement and allows for labs to be located in simple family dwellings and apartments.

Production Activity and Groups

Organized crime groups and criminal networks are believed to be responsible for economicbased⁶⁰ labs in Canada. These groups have the resources to manage the complexity of clandestine synthetic drug production, including the procurement of precursor chemicals and the distribution of the final products to both domestic and international markets. Despite a slight increase in the number of addiction-based⁶¹ labs seized in 2009, in comparison to economic-based labs, there are now relatively few addiction-based labs in Canada.⁶²

Major Seizures in Canada

• In April, the RCMP seized a non-operational L-PAC lab in Surrey, British Columbia. The lab, linked to drug operations in other parts of the country, included scientificgrade equipment and various recipes and instructions to produce ephedrine from L-PAC, and to produce meth and MDMA. Each keg was reported to contain 20 kg of L-PAC.
• In August 2009, the RCMP seized a boxed meth lab in Chestermere, Alberta. The lab contained chemicals that were consistent with the Wacker Oxidation method⁶³ of producing meth (an uncommon production method in Canada), as well as lab equipment, and a tabletting machine.

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⁴⁰ Practically all of the MDMA seizures at Canadian POEs in 2009 involved outbound shipments en route to global destinations, as seen in previous years.
⁴¹ The Pacific region regained its status as the primary smuggling corridor for MDMA shipment entering the United States from Canada. The use of cross-border smuggling corridors aligned with Ontario, especially between Windsor, Ontario and Detroit, Michigan, continued to increase in 2009. Cross-border MDMA smuggling through New York State was also documented, albeit to a lesser extent than for Michigan state.
⁴² In August 2009, 100,000 MDMA tablets, as well as small amounts of cocaine and methamphetamine, were seized after a courier set off a sensor while attempting to illegally cross the Canada-U.S. border between the POEs in Manitoba/Minnesota.
⁴³ The exchange of Canadian-produced MDMA for cocaine in the United States continued in 2009.
⁴⁴ MDMA shipments destined for the Philippines were first noted in 2008, and continued to be detected in 2009. In September 2009, Taiwanese authorities seized 270,000 MDMA tablets from an air cargo shipment originating in Vancouver.
⁴⁵ These pills are often sold under the street names “speed” or “peach”. Meth tablets originating in Quebec, and found circulating in New Brunswick, were commonly identified by specific logos such as “Apple Computer,” “Lightning,” and “Cadillac.”
⁴⁶ See Glossary
⁴⁷ See Glossary
⁴⁸ See Glossary
⁴⁹ When BZP and TFMPP are combined, they ‘mimic’ the effects of MDMA. These and other piperazine derivates have been used increasingly as ingredients in tablets sold as Ecstasy. For the purposes of this document, BZP will be used herein as an identifier of BZP combination and other additive tablets.
⁵⁰ This amphetamine lab seizure was the third such occurrence reported since 2008. Illicit manufacture of amphetamine had not been detected before then for about a decade. The PCP lab was also the first seizure of its kind within a decade.
⁵¹ The production and exportation of BZP in bulk form from China to Canada is currently free of law enforcement interference or prosecution. Until Canada places controls on BZP, the ease by which bulk shipments can be obtained via Internet sources will ensure the production and supply of the drug. In late 2008, Canada put forth proposals to regulate BZP and other piperazine derivatives, however decisions are still pending.
⁵² In Ontario, oxycodone-related deaths increased from 63 in 2005 to 122 in 2008.
⁵³ Health Canada reported an increase in analysis results indicating counterfeit oxycodone (e.g.OxyContin®) products. Such tablets have tested positive for substances ranging from acetaminophen (Tylenol®) and caffeine, to heroin and ketamine.
⁵⁴ Diversion is a tactic used by cooks to obtain regulated chemicals. The chemicals are either stolen from companies that are license-holders and legitimate purchasers, or are purchased from legitimate chemical companies under false pretences.
⁵⁵ In 2008, 369 litres of GBL were seized at Canadian POEs. Conversely, in 2009, 3,902 litres were seized. This increase was primarily the result of three exceptionally large (267L, 1,600L, and 1,995L) seizures.
⁵⁶ GBL can be easily converted to GHB with the addition of sodium hydroxide (lye) and water.
⁵⁷ This estimate is based on assuming a street value of approximately $10 per five mL dose.
⁵⁸ See Glossary
⁵⁹ Most of the reporting relating to clan labs is supplied by specialized teams that investigate and dismantle these illicit labs. With GHB, the synthesis process (using GBL) is so simple that often such teams will not be contacted, and there is less direct reporting available on the existence and nature of these types of labs.
⁶⁰ See Glossary
⁶¹ See Glossary
⁶² This increase may be attributed to a variety of factors including the ephedrine shortage and new data sources.
⁶³ See Glossary

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Endnotes

ⁱ RCMP News release: “New Program to Combat Synthetic Drugs Announced.”, August 25, 2009.
ⁱⁱ “Police-reported crime statistics in Canada, 2009,” by Mia Dauvergne and John Turner. Juristat Article Summer 2010, Vol. 30, No. 2.
ⁱⁱⁱ United Nations Office on Drugs and Crime, World Drug Report 2010 (New York: United Nations, 2010). ^iv Health Canada, The Canadian Alcohol and Drug Use Monitoring Survey (CADUMS) 2009.
^v U.S. Department of Justice National Drug Intelligence Center, National Drug Threat Assessment 2009 & 2010 (Washington: NDIC: December 2008 & February 2010).
^vi United Nations Office on Drugs and Crime, World Drug Report 2010 (New York: United Nations, 2010).
^vii Afghanistan Cannabis Survey 2009, United Nations Office on Drugs and Crime (UNODC) with the Government of Afghanistan Ministry of Counter Narcotics (2010).
^viii Office of China National Narcotics Control Commission “Annual Report on Drug Control in China”, 2010.
^ix RCMP Annual Report on the Illicit Drug Situation in Canada — 2008.