83_FR_27634 83 FR 27520 - Schedules of Controlled Substances: Temporary Placement of N-Ethylpentylone in Schedule I

83 FR 27520 - Schedules of Controlled Substances: Temporary Placement of N-Ethylpentylone in Schedule I

DEPARTMENT OF JUSTICE
Drug Enforcement Administration

Federal Register Volume 83, Issue 114 (June 13, 2018)

Page Range27520-27523
FR Document2018-12669

The Acting Administrator of the Drug Enforcement Administration is publishing this notice of intent to issue an order temporarily scheduling N-1-(1,3-benzodioxol-5-yl)-2-(ethylamino)-1- pentanone (N-ethylpentylone, ephylone) in schedule I. This action is based on a finding by the Acting Administrator that the placement of N- ethylpentylone in schedule I is necessary to avoid an imminent hazard to the public safety. When it is issued, the temporary scheduling order will impose regulatory requirements under the Controlled Substances Act (CSA) on the manufacture, distribution, reverse distribution, possession, importation, exportation, research, and conduct of instructional activities, and chemical analysis of N-ethylpentylone, as well as administrative, civil, and criminal remedies with respect to persons who fail to comply with such requirements or otherwise violate the CSA with respect to N-ethylpentylone.

Federal Register, Volume 83 Issue 114 (Wednesday, June 13, 2018)
[Federal Register Volume 83, Number 114 (Wednesday, June 13, 2018)]
[Proposed Rules]
[Pages 27520-27523]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-12669]


========================================================================
Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

========================================================================


Federal Register / Vol. 83, No. 114 / Wednesday, June 13, 2018 / 
Proposed Rules

[[Page 27520]]



DEPARTMENT OF JUSTICE

Drug Enforcement Administration

21 CFR Part 1308

[Docket No. DEA-482]


Schedules of Controlled Substances: Temporary Placement of N-
Ethylpentylone in Schedule I

AGENCY: Drug Enforcement Administration, Department of Justice.

ACTION: Proposed amendment; notice of intent.

-----------------------------------------------------------------------

SUMMARY: The Acting Administrator of the Drug Enforcement 
Administration is publishing this notice of intent to issue an order 
temporarily scheduling N-1-(1,3-benzodioxol-5-yl)-2-(ethylamino)-1-
pentanone (N-ethylpentylone, ephylone) in schedule I. This action is 
based on a finding by the Acting Administrator that the placement of N-
ethylpentylone in schedule I is necessary to avoid an imminent hazard 
to the public safety. When it is issued, the temporary scheduling order 
will impose regulatory requirements under the Controlled Substances Act 
(CSA) on the manufacture, distribution, reverse distribution, 
possession, importation, exportation, research, and conduct of 
instructional activities, and chemical analysis of N-ethylpentylone, as 
well as administrative, civil, and criminal remedies with respect to 
persons who fail to comply with such requirements or otherwise violate 
the CSA with respect to N-ethylpentylone.

DATES: June 13, 2018.

FOR FURTHER INFORMATION CONTACT: Michael J. Lewis, Diversion Control 
Division, Drug Enforcement Administration; Mailing Address: 8701 
Morrissette Drive, Springfield, Virginia 22152; Telephone: (202) 598-
6812.

SUPPLEMENTARY INFORMATION: This notice of intent is issued pursuant to 
the temporary scheduling provisions of 21 U.S.C. 811(h). The Drug 
Enforcement Administration (DEA) intends to issue a temporary order (in 
the form of a temporary amendment) placing N-ethylpentylone in schedule 
I of the Controlled Substances Act (CSA).\1\ The temporary scheduling 
order will be published in the Federal Register on or after July 13, 
2018.
---------------------------------------------------------------------------

    \1\ Though DEA has used the term ``final order'' with respect to 
temporary scheduling orders in the past, this notice of intent 
adheres to the statutory language of 21 U.S.C. 811(h), which refers 
to a ``temporary scheduling order.'' No substantive change is 
intended.
---------------------------------------------------------------------------

Legal Authority

    Section 201 of the CSA, 21 U.S.C. 811, provides the Attorney 
General with the authority to temporarily place a substance in schedule 
I of the CSA for two years without regard to the requirements of 21 
U.S.C. 811(b) if he finds that such action is necessary to avoid an 
imminent hazard to the public safety. 21 U.S.C. 811(h)(1). In addition, 
if proceedings to control a substance permanently are initiated under 
21 U.S.C. 811(a)(1) while the substance is temporarily controlled under 
section 811(h), the Attorney General may extend the temporary 
scheduling for up to one year. 21 U.S.C. 811(h)(2).
    Where the necessary findings are made, a substance may be 
temporarily scheduled if it is not listed in any other schedule under 
section 202 of the CSA, 21 U.S.C. 812, or if there is no exemption or 
approval in effect for the substance under section 505 of the Federal 
Food, Drug, and Cosmetic Act (FDCA), 21 U.S.C. 355. 21 U.S.C. 
811(h)(1); 21 CFR part 1308. The Attorney General has delegated 
scheduling authority under 21 U.S.C. 811 to the Administrator of the 
DEA. 28 CFR 0.100.

Background

    Section 201(h)(4) of the CSA, 21 U.S.C. 811(h)(4), requires the 
Administrator to notify the Secretary of the Department of Health and 
Human Services (HHS) of his intention to temporarily place a substance 
in schedule I of the CSA.\2\ The Acting Administrator transmitted 
notice of his intent to place N-ethylpentylone in schedule I on a 
temporary basis to the Acting Assistant Secretary for Health of HHS by 
letter dated November 22, 2017. The Acting Assistant Secretary 
responded to this notice of intent by letter dated December 13, 2017, 
and advised that based on a review by the Food and Drug Administration 
(FDA), there are currently no active investigational new drug 
applications or approved new drug applications for N-ethylpentylone. 
The Acting Assistant Secretary also stated that the HHS has no 
objection to the temporary placement of N-ethylpentylone in schedule I 
of the CSA. N-Ethylpentylone is not currently listed in any schedule 
under the CSA, and no exemptions or approvals are in effect for this 
substance under section 505 of the FDCA, 21 U.S.C. 355.
---------------------------------------------------------------------------

    \2\ As discussed in a memorandum of understanding entered into 
by the Food and Drug Administration (FDA) and the National Institute 
on Drug Abuse (NIDA), the FDA acts as the lead agency within the HHS 
in carrying out the Secretary's scheduling responsibilities under 
the CSA, with the concurrence of NIDA. 50 FR 9518, Mar. 8, 1985. The 
Secretary of the HHS has delegated to the Assistant Secretary for 
Health of the HHS the authority to make domestic drug scheduling 
recommendations. 58 FR 35460, July 1, 1993.
---------------------------------------------------------------------------

    To find that placing a substance temporarily in schedule I of the 
CSA is necessary to avoid an imminent hazard to the public safety, the 
Administrator is required to consider three of the eight factors set 
forth in 21 U.S.C. 811(c): The substance's history and current pattern 
of abuse; the scope, duration and significance of abuse; and what, if 
any, risk there is to the public health. 21 U.S.C. 811(h)(3). 
Consideration of these factors includes actual abuse, diversion from 
legitimate channels, and clandestine importation, manufacture, or 
distribution. 21 U.S.C. 811(h)(3).
    A substance meeting the statutory requirements for temporary 
scheduling may only be placed in schedule I. 21 U.S.C. 811(h)(1). 
Substances in schedule I are those that have a high potential for 
abuse, no currently accepted medical use in treatment in the United 
States, and a lack of accepted safety for use under medical 
supervision. 21 U.S.C. 812(b)(1).

N-Ethylpentylone

    Around 2014, the synthetic cathinone, N-ethylpentylone, emerged in 
the United States' illicit drug market after the scheduling of other 
popular synthetic cathinones (e.g., ethylone, 4-methyl-N-ethylcathinone 
(4-MEC), mephedrone, methylone, pentylone, and 3,4-
methylenedioxymethamphetamine (MDPV)). The identification of N-
ethylpentylone in forensic evidence and overdose deaths indicates that 
this substance is being misused and abused. Law enforcement encounters 
include those reported to the National Forensic

[[Page 27521]]

Laboratory Information System (NFLIS), a DEA sponsored program that 
systematically collects drug identification results and associated 
information from drug cases analyzed by Federal, State, and local 
forensic laboratories, the System to Retrieve Information from Drug 
Evidence (STRIDE), a federal database for the drug samples analyzed by 
DEA forensic laboratories, and STARLiMS (a web-based, commercial 
laboratory information management system that replaced STRIDE in 2014). 
Forensic laboratories have analyzed drug exhibits received from State, 
local, or Federal law enforcement agencies that were found to contain 
N-ethylpentylone.\3\ NFLIS registered over 6,000 reports from state and 
local forensic laboratories identifying this substance in drug-related 
exhibits for a period from January 2013 to December 2017 from 41 
states. N-Ethylpentylone was first identified in NFLIS in May 2014. 
STRIDE/STARLiMS registered over 300 reports from DEA forensic 
laboratories from January 2013 to December 2017. N-Ethylpentylone was 
first reported to STRIDE/STARLiMS in December 2015. Additionally, 
encounters of N-ethylpentylone have occurred by the U.S. Customs and 
Border Protection (CBP).
---------------------------------------------------------------------------

    \3\ NFLIS and STRIDE/STARLiMS databases were queried on February 
8, 2018.
---------------------------------------------------------------------------

    N-Ethylpentylone, like other synthetic cathinones, is a designer 
drug of the phenethylamine class and it is pharmacologically similar to 
schedule I synthetic cathinones (e.g., cathinone, methcathinone, 
mephedrone, methylone, pentylone, and MDPV) and well-known schedule I 
and II sympathomimetic agents (e.g., methamphetamine, 3,4-
methylenedioxymethamphetamine (MDMA), and cocaine). N-ethylpentylone, 
similar to these substances, causes stimulant related psychological and 
somatic effects. Consequently, there have been documented reports of 
emergency room admissions and numerous deaths associated with the abuse 
of N-ethylpentylone. No approved medical use has been identified for 
this substance, nor has it been approved by the FDA for human 
consumption.
    Available data and information for N-ethylpentylone, summarized 
below, indicate that this substance has a high potential for abuse, no 
currently accepted medical use in treatment in the United States, and a 
lack of accepted safety for use under medical supervision. The DEA's 
three-factor analysis is available in its entirety under ``Supporting 
and Related Material'' of the public docket for this action at 
www.regulations.gov under Docket Number DEA-482.

Factor 4. History and Current Pattern of Abuse

    N-Ethylpentylone is a synthetic cathinone of the phenethylamine 
class and it is structurally and pharmacologically similar to 
cathinone, methcathinone, mephedrone, methylone, pentylone, MDPV, 
methamphetamine, MDMA, and other schedule I and II substances. Thus, it 
is highly likely that N-ethylpentylone is abused in the same manner and 
by the same users as these substances. That is, N-ethylpentylone, like 
these substances, is most likely ingested by swallowing capsules or 
tablets or snorted by nasal insufflation of the powder tablets. 
Products containing N-ethylpentylone, similar to schedule I synthetic 
cathinones, are likely to be falsely marketed as ``research 
chemicals,'' ``jewelry cleaner,'' ``stain remover,'' ``plant food or 
fertilizer,'' ``insect repellants'' or ``bath salts,'' sold at smoke 
shops, head shops, convenience stores, adult book stores, and gas 
stations, and purchased on the internet. Like those seen with 
commercial products that contain synthetic cathinones, the packages of 
products that contain N-ethylpentylone also probably contain the 
warning ``not for human consumption,'' most likely in an effort to 
circumvent statutory restrictions for these substances. Demographic 
data collected from published reports and mortality records suggest 
that the main users of N-ethylpentylone, similar to schedule I 
synthetic cathinones and MDMA, are young adults.
    Available evidence suggests that the history and pattern of abuse 
of N-ethylpentylone parallels that of MDMA, methamphetamine, or cocaine 
and that N-ethylpentylone has been marketed as a replacement for these 
substances. N-Ethylpentylone has been identified in law enforcement 
seizures that were initially suspected to be MDMA. In addition, there 
are reports that abusers of N-ethylpentylone thought they were using 
MDMA or another illicit substance but toxicological analysis revealed 
that the psychoactive substance was N-ethylpentylone. Toxicology 
reports also revealed that N-ethylpentylone is being ingested with 
other substances including other synthetic cathinones, common cutting 
agents, or other recreational substances. Consequently, products 
containing synthetic cathinones, including N-ethylpentylone, are 
distributed to users, often with unpredictable outcomes. Thus, the 
recreational abuse of synthetic cathinones, including N-ethylpentylone, 
is a significant concern.

Factor 5. Scope, Duration and Significance of Abuse

    N-Ethylpentylone is a popular recreational drug that emerged on the 
United States' illicit drug market after the scheduling of other 
popular synthetic cathinones (e.g., ethylone, mephedrone, methylone, 
pentylone, and MDPV) (see DEA 3-Factor Analysis for a full discussion). 
Forensic laboratories have confirmed the presence of N-ethylpentylone 
in drug exhibits received from state, local, and federal law 
enforcement agencies. Law enforcement data show that N-ethylpentylone 
first appeared in the illicit drug market in 2014 with one encounter 
and began increasing thereafter.\4\ In 2015, NFLIS registered five 
reports from three states regarding N-ethylpentylone. However, in 2016, 
there were 2,074 reports from 39 states and, in 2017, there were 3,955 
reports from 39 states related to this substance registered in NFLIS. 
N-Ethylpentylone represented 60% of all synthetic cathinones 
encountered by local law enforcement agencies and reported to NFLIS in 
2017. From January 2013 to December 2017, NFLIS registered 6,035 
reports from state and local forensic laboratories identifying this 
substance in drug-related exhibits from 41 states. STRIDE/STARLiMS 
registered over 338 reports from DEA forensic laboratories during 
January 2013 to December 2017. Additionally, seizures of N-
ethylpentylone have occurred by the U.S. Customs and Border Protection 
(CBP) beginning in 2016. Concerns over the continuing abuse of 
synthetic cathinones have led to the control of many synthetic 
cathinones.
---------------------------------------------------------------------------

    \4\ NFLIS and STRIDE/STARLiMS databases were queried on February 
8, 2018.
---------------------------------------------------------------------------

Factor 6. What, if Any, Risk There Is to the Public Health

    The identification of N-ethylpentylone in toxicological samples 
associated with fatal and non-fatal overdoses have been reported in the 
medical and scientific literature, forensic laboratory reports, and 
public health documents. Like schedule I synthetic cathinones, N-
ethylpentylone has caused acute health problems leading to emergency 
department (ED) admissions, violent behaviors causing harm to self or 
others, and/or death. Adverse health effects associated with the abuse 
of N-ethylpentylone include a number of stimulant-like adverse health

[[Page 27522]]

effects such as diaphoresis, insomnia, mydriasis, hyperthermia, 
vomiting, agitation, disorientation, paranoia, abdominal pain, cardiac 
arrest, respiratory failure, and coma. In addition, N-ethylpentylone 
has been involved in deaths of many individuals. The DEA is aware of 
approximately 151 overdose deaths involving N-ethylpentylone abuse 
reported in the United States between 2014 and 2018. Thus, the abuse of 
N-ethylpentylone, like that of the abuse of schedule I synthetic 
cathinones and stimulant drugs, poses significant adverse health risks. 
Furthermore, because abusers of synthetic cathinones obtain these 
substances through unregulated sources, the identity, purity, and 
quantity are uncertain and inconsistent. These unknown factors pose an 
additional risk for significant adverse health effects to the end user.
    Based on information received by the DEA, the misuse and abuse of 
N-ethylpentylone has led to, at least, the same qualitative public 
health risks as schedule I synthetic cathinones, MDMA, and 
methamphetamine. The public health risks attendant to the abuse of 
synthetic cathinones, including N-ethylpentylone, are well established 
and have resulted in large numbers of ED visits and fatal overdoses.

Finding of Necessity of Schedule I Placement To Avoid an Imminent 
Hazard to the Public Safety

    In accordance with 21 U.S.C. 811(h)(3), based on the available data 
and information, summarized above, the uncontrolled manufacture, 
distribution, reverse distribution, importation, exportation, conduct 
of research and chemical analysis, possession, and/or abuse of N-
ethylpentylone resulting from the lack of control of this substance 
poses an imminent hazard to the public safety. The DEA is not aware of 
any currently accepted medical uses for this substance in the United 
States. A substance meeting the statutory requirements for temporary 
scheduling, 21 U.S.C. 811(h)(1), may only be placed in schedule I. 
Substances in schedule I are those that have a high potential for 
abuse, no currently accepted medical use in treatment in the United 
States, and a lack of accepted safety for use under medical 
supervision. Available data and information for N-ethylpentylone 
indicate that this substance has a high potential for abuse, no 
currently accepted medical use in treatment in the United States, and a 
lack of accepted safety for use under medical supervision. As required 
by section 201(h)(4) of the CSA, 21 U.S.C. 811(h)(4), the 
Administrator, through a letter dated November 22, 2017, notified the 
Acting Assistant Secretary of the DEA's intention to temporarily place 
this substance in schedule I.

Conclusion

    This notice of intent provides the 30-day notice pursuant to 
section 201(h) of the CSA, 21 U.S.C. 811(h), of DEA's intent to issue a 
temporary scheduling order. In accordance with the provisions of 
section 201(h) of the CSA, 21 U.S.C. 811(h), the Acting Administrator 
considered available data and information, herein set forth the grounds 
for his determination that it is necessary to temporarily schedule N-
ethylpentylone in schedule I of the CSA, and finds that placement of N-
ethylpentylone in schedule I of the CSA on a temporary basis is 
necessary in order to avoid an imminent hazard to the public safety.
    The temporary placement of N-ethylpentylone in schedule I of the 
CSA will take effect pursuant to a temporary scheduling order, which 
will not be issued before July 13, 2018. Because the Acting 
Administrator hereby finds that it is necessary to temporarily place N-
ethylpentylone in schedule I to avoid an imminent hazard to the public 
safety, the temporary order scheduling this substance will be effective 
on the date that order is published in the Federal Register, and will 
be in effect for a period of two years, with a possible extension of 
one additional year, pending completion of the regular (permanent) 
scheduling process. 21 U.S.C. 811(h)(1) and (2). It is the intention of 
the Acting Administrator to issue a temporary scheduling order as soon 
as possible after the expiration of 30 days from the date of 
publication of this notice. Upon publication of the temporary order, N-
ethylpentylone will be subject to the regulatory controls and 
administrative, civil, and criminal sanctions applicable to the 
manufacture, distribution, reverse distribution, importation, 
exportation, research, conduct of instructional activities and chemical 
analysis, and possession of a schedule I controlled substance.
    The CSA sets forth specific criteria for scheduling a drug or other 
substance. Regular scheduling actions in accordance with 21 U.S.C. 
811(a) are subject to formal rulemaking procedures done ``on the record 
after opportunity for a hearing'' conducted pursuant to the provisions 
of 5 U.S.C. 556 and 557. 21 U.S.C. 811. The regular scheduling process 
of formal rulemaking affords interested parties with appropriate 
process and the government with any additional relevant information 
needed to make a determination. Final decisions that conclude the 
regular scheduling process of formal rulemaking are subject to judicial 
review. 21 U.S.C. 877. Temporary scheduling orders are not subject to 
judicial review. 21 U.S.C. 811(h)(6).

Regulatory Matters

    Section 201(h) of the CSA, 21 U.S.C. 811(h), provides for a 
temporary scheduling action where such action is necessary to avoid an 
imminent hazard to the public safety. As provided in this subsection, 
the Attorney General may, by order, schedule a substance in schedule I 
on a temporary basis. Such an order may not be issued before the 
expiration of 30 days from (1) the publication of a notice in the 
Federal Register of the intention to issue such order and the grounds 
upon which such order is to be issued, and (2) the date that notice of 
the proposed temporary scheduling order is transmitted to the Assistant 
Secretary of HHS. 21 U.S.C. 811(h)(1).
    Inasmuch as section 201(h) of the CSA directs that temporary 
scheduling actions be issued by order and sets forth the procedures by 
which such orders are to be issued, the DEA believes that the notice 
and comment requirements of section 553 of the Administrative Procedure 
Act (APA), 5 U.S.C. 553, do not apply to this notice of intent. In the 
alternative, even assuming that this notice of intent might be subject 
to section 553 of the APA, the Administrator finds that there is good 
cause to forgo the notice and comment requirements of section 553, as 
any further delays in the process for issuance of temporary scheduling 
orders would be impracticable and contrary to the public interest in 
view of the manifest urgency to avoid an imminent hazard to the public 
safety.
    Although the DEA believes this notice of intent to issue a 
temporary scheduling order is not subject to the notice and comment 
requirements of section 553 of the APA, the DEA notes that in 
accordance with 21 U.S.C. 811(h)(4), the Acting Administrator took into 
consideration comments submitted by the Acting Assistant Secretary in 
response to notice that DEA transmitted to the Acting Assistant 
Secretary pursuant to section 811(h)(4).
    Further, the DEA believes that this temporary scheduling action is 
not a ``rule'' as defined by 5 U.S.C. 601(2), and, accordingly, is not 
subject to the requirements of the Regulatory Flexibility Act (RFA). 
The requirements for the preparation of an initial regulatory 
flexibility analysis in 5 U.S.C. 603(a) are not applicable where, as 
here, the DEA is not required by section 553

[[Page 27523]]

of the APA or any other law to publish a general notice of proposed 
rulemaking.
    Additionally, this action is not a significant regulatory action as 
defined by Executive Order 12866 (Regulatory Planning and Review), 
section 3(f), and, accordingly, this action has not been reviewed by 
the Office of Management and Budget.
    This action will not have substantial direct effects on the States, 
on the relationship between the national government and the States, or 
on the distribution of power and responsibilities among the various 
levels of government. Therefore, in accordance with Executive Order 
13132 (Federalism) it is determined that this action does not have 
sufficient federalism implications to warrant the preparation of a 
Federalism Assessment.

List of Subjects in 21 CFR Part 1308

    Administrative practice and procedure, Drug traffic control, 
Reporting and recordkeeping requirements.

    For the reasons set out above, the DEA proposes to amend 21 CFR 
part 1308 as follows:

PART 1308--SCHEDULES OF CONTROLLED SUBSTANCES

0
1. The authority citation for part 1308 continues to read as follows:

     Authority:  21 U.S.C. 811, 812, 871(b), 956(b), unless 
otherwise noted.

0
2. In Sec.  1308.11, add paragraph (h)(36) to read as follows:


Sec.  1308.11  Schedule I.

* * * * *
    (h) * * *

(36) N-Ethylpentylone, its optical, positional, and geometric     (7543)
 isomers, salts and salts of isomers (Other names: ephylone, N-
 1-(1,3-benzodioxol-5-yl)-2-(ethylamino)-1-pentanone)..........
 

* * * * *

    Dated: June 6, 2018.
Robert W. Patterson,
Acting Administrator.
[FR Doc. 2018-12669 Filed 6-12-18; 8:45 am]
 BILLING CODE 4410-09-P



                                                27520

                                                Proposed Rules                                                                                                 Federal Register
                                                                                                                                                               Vol. 83, No. 114

                                                                                                                                                               Wednesday, June 13, 2018



                                                This section of the FEDERAL REGISTER                    temporary amendment) placing N-                        intent to place N-ethylpentylone in
                                                contains notices to the public of the proposed          ethylpentylone in schedule I of the                    schedule I on a temporary basis to the
                                                issuance of rules and regulations. The                  Controlled Substances Act (CSA).1 The                  Acting Assistant Secretary for Health of
                                                purpose of these notices is to give interested          temporary scheduling order will be                     HHS by letter dated November 22, 2017.
                                                persons an opportunity to participate in the            published in the Federal Register on or                The Acting Assistant Secretary
                                                rule making prior to the adoption of the final
                                                                                                        after July 13, 2018.                                   responded to this notice of intent by
                                                rules.
                                                                                                        Legal Authority                                        letter dated December 13, 2017, and
                                                                                                                                                               advised that based on a review by the
                                                                                                           Section 201 of the CSA, 21 U.S.C. 811,              Food and Drug Administration (FDA),
                                                DEPARTMENT OF JUSTICE
                                                                                                        provides the Attorney General with the                 there are currently no active
                                                Drug Enforcement Administration                         authority to temporarily place a                       investigational new drug applications or
                                                                                                        substance in schedule I of the CSA for                 approved new drug applications for N-
                                                21 CFR Part 1308                                        two years without regard to the                        ethylpentylone. The Acting Assistant
                                                                                                        requirements of 21 U.S.C. 811(b) if he                 Secretary also stated that the HHS has
                                                [Docket No. DEA–482]                                    finds that such action is necessary to                 no objection to the temporary placement
                                                                                                        avoid an imminent hazard to the public                 of N-ethylpentylone in schedule I of the
                                                Schedules of Controlled Substances:                     safety. 21 U.S.C. 811(h)(1). In addition,
                                                Temporary Placement of N-                                                                                      CSA. N-Ethylpentylone is not currently
                                                                                                        if proceedings to control a substance                  listed in any schedule under the CSA,
                                                Ethylpentylone in Schedule I                            permanently are initiated under 21                     and no exemptions or approvals are in
                                                AGENCY:  Drug Enforcement                               U.S.C. 811(a)(1) while the substance is                effect for this substance under section
                                                Administration, Department of Justice.                  temporarily controlled under section                   505 of the FDCA, 21 U.S.C. 355.
                                                ACTION: Proposed amendment; notice of                   811(h), the Attorney General may                          To find that placing a substance
                                                intent.                                                 extend the temporary scheduling for up                 temporarily in schedule I of the CSA is
                                                                                                        to one year. 21 U.S.C. 811(h)(2).                      necessary to avoid an imminent hazard
                                                SUMMARY:   The Acting Administrator of                     Where the necessary findings are
                                                                                                                                                               to the public safety, the Administrator is
                                                the Drug Enforcement Administration is                  made, a substance may be temporarily
                                                                                                                                                               required to consider three of the eight
                                                publishing this notice of intent to issue               scheduled if it is not listed in any other
                                                                                                                                                               factors set forth in 21 U.S.C. 811(c): The
                                                an order temporarily scheduling N-1-                    schedule under section 202 of the CSA,
                                                                                                        21 U.S.C. 812, or if there is no                       substance’s history and current pattern
                                                (1,3-benzodioxol-5-yl)-2-(ethylamino)-1-
                                                                                                        exemption or approval in effect for the                of abuse; the scope, duration and
                                                pentanone (N-ethylpentylone, ephylone)
                                                                                                        substance under section 505 of the                     significance of abuse; and what, if any,
                                                in schedule I. This action is based on a
                                                                                                        Federal Food, Drug, and Cosmetic Act                   risk there is to the public health. 21
                                                finding by the Acting Administrator that
                                                                                                        (FDCA), 21 U.S.C. 355. 21 U.S.C.                       U.S.C. 811(h)(3). Consideration of these
                                                the placement of N-ethylpentylone in
                                                                                                        811(h)(1); 21 CFR part 1308. The                       factors includes actual abuse, diversion
                                                schedule I is necessary to avoid an
                                                                                                        Attorney General has delegated                         from legitimate channels, and
                                                imminent hazard to the public safety.
                                                                                                        scheduling authority under 21 U.S.C.                   clandestine importation, manufacture,
                                                When it is issued, the temporary
                                                                                                        811 to the Administrator of the DEA. 28                or distribution. 21 U.S.C. 811(h)(3).
                                                scheduling order will impose regulatory
                                                                                                        CFR 0.100.                                                A substance meeting the statutory
                                                requirements under the Controlled
                                                                                                                                                               requirements for temporary scheduling
                                                Substances Act (CSA) on the                             Background                                             may only be placed in schedule I. 21
                                                manufacture, distribution, reverse
                                                                                                          Section 201(h)(4) of the CSA, 21                     U.S.C. 811(h)(1). Substances in schedule
                                                distribution, possession, importation,
                                                                                                        U.S.C. 811(h)(4), requires the                         I are those that have a high potential for
                                                exportation, research, and conduct of
                                                                                                        Administrator to notify the Secretary of               abuse, no currently accepted medical
                                                instructional activities, and chemical
                                                                                                        the Department of Health and Human                     use in treatment in the United States,
                                                analysis of N-ethylpentylone, as well as
                                                                                                        Services (HHS) of his intention to                     and a lack of accepted safety for use
                                                administrative, civil, and criminal
                                                                                                        temporarily place a substance in                       under medical supervision. 21 U.S.C.
                                                remedies with respect to persons who
                                                                                                        schedule I of the CSA.2 The Acting                     812(b)(1).
                                                fail to comply with such requirements
                                                or otherwise violate the CSA with                       Administrator transmitted notice of his                N-Ethylpentylone
                                                respect to N-ethylpentylone.                               1 Though DEA has used the term ‘‘final order’’        Around 2014, the synthetic cathinone,
                                                DATES: June 13, 2018.                                   with respect to temporary scheduling orders in the     N-ethylpentylone, emerged in the
                                                FOR FURTHER INFORMATION CONTACT:                        past, this notice of intent adheres to the statutory   United States’ illicit drug market after
                                                                                                        language of 21 U.S.C. 811(h), which refers to a
                                                Michael J. Lewis, Diversion Control                     ‘‘temporary scheduling order.’’ No substantive         the scheduling of other popular
                                                Division, Drug Enforcement                              change is intended.                                    synthetic cathinones (e.g., ethylone, 4-
                                                Administration; Mailing Address: 8701                      2 As discussed in a memorandum of                   methyl-N-ethylcathinone (4–MEC),
amozie on DSK3GDR082PROD with PROPOSALS1




                                                Morrissette Drive, Springfield, Virginia                understanding entered into by the Food and Drug        mephedrone, methylone, pentylone, and
                                                22152; Telephone: (202) 598–6812.                       Administration (FDA) and the National Institute on
                                                                                                        Drug Abuse (NIDA), the FDA acts as the lead agency
                                                                                                                                                               3,4-methylenedioxymethamphetamine
                                                SUPPLEMENTARY INFORMATION: This                         within the HHS in carrying out the Secretary’s         (MDPV)). The identification of N-
                                                notice of intent is issued pursuant to the              scheduling responsibilities under the CSA, with the    ethylpentylone in forensic evidence and
                                                temporary scheduling provisions of 21                   concurrence of NIDA. 50 FR 9518, Mar. 8, 1985.         overdose deaths indicates that this
                                                                                                        The Secretary of the HHS has delegated to the
                                                U.S.C. 811(h). The Drug Enforcement                     Assistant Secretary for Health of the HHS the
                                                                                                                                                               substance is being misused and abused.
                                                Administration (DEA) intends to issue a                 authority to make domestic drug scheduling             Law enforcement encounters include
                                                temporary order (in the form of a                       recommendations. 58 FR 35460, July 1, 1993.            those reported to the National Forensic


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                                                                      Federal Register / Vol. 83, No. 114 / Wednesday, June 13, 2018 / Proposed Rules                                               27521

                                                Laboratory Information System (NFLIS),                  ‘‘Supporting and Related Material’’ of                 often with unpredictable outcomes.
                                                a DEA sponsored program that                            the public docket for this action at                   Thus, the recreational abuse of synthetic
                                                systematically collects drug                            www.regulations.gov under Docket                       cathinones, including N-ethylpentylone,
                                                identification results and associated                   Number DEA–482.                                        is a significant concern.
                                                information from drug cases analyzed
                                                                                                        Factor 4. History and Current Pattern of               Factor 5. Scope, Duration and
                                                by Federal, State, and local forensic
                                                                                                        Abuse                                                  Significance of Abuse
                                                laboratories, the System to Retrieve
                                                Information from Drug Evidence                             N-Ethylpentylone is a synthetic                        N-Ethylpentylone is a popular
                                                (STRIDE), a federal database for the drug               cathinone of the phenethylamine class                  recreational drug that emerged on the
                                                samples analyzed by DEA forensic                        and it is structurally and                             United States’ illicit drug market after
                                                laboratories, and STARLiMS (a web-                      pharmacologically similar to cathinone,                the scheduling of other popular
                                                based, commercial laboratory                            methcathinone, mephedrone,                             synthetic cathinones (e.g., ethylone,
                                                information management system that                      methylone, pentylone, MDPV,                            mephedrone, methylone, pentylone, and
                                                replaced STRIDE in 2014). Forensic                      methamphetamine, MDMA, and other                       MDPV) (see DEA 3-Factor Analysis for
                                                laboratories have analyzed drug exhibits                schedule I and II substances. Thus, it is              a full discussion). Forensic laboratories
                                                received from State, local, or Federal                  highly likely that N-ethylpentylone is                 have confirmed the presence of N-
                                                law enforcement agencies that were                      abused in the same manner and by the                   ethylpentylone in drug exhibits received
                                                found to contain N-ethylpentylone.3                     same users as these substances. That is,               from state, local, and federal law
                                                NFLIS registered over 6,000 reports                     N-ethylpentylone, like these substances,               enforcement agencies. Law enforcement
                                                from state and local forensic laboratories              is most likely ingested by swallowing                  data show that N-ethylpentylone first
                                                identifying this substance in drug-                     capsules or tablets or snorted by nasal                appeared in the illicit drug market in
                                                related exhibits for a period from                      insufflation of the powder tablets.                    2014 with one encounter and began
                                                January 2013 to December 2017 from 41                   Products containing N-ethylpentylone,                  increasing thereafter.4 In 2015, NFLIS
                                                states. N-Ethylpentylone was first                      similar to schedule I synthetic                        registered five reports from three states
                                                identified in NFLIS in May 2014.                        cathinones, are likely to be falsely                   regarding N-ethylpentylone. However,
                                                STRIDE/STARLiMS registered over 300                     marketed as ‘‘research chemicals,’’                    in 2016, there were 2,074 reports from
                                                reports from DEA forensic laboratories                  ‘‘jewelry cleaner,’’ ‘‘stain remover,’’                39 states and, in 2017, there were 3,955
                                                from January 2013 to December 2017. N-                  ‘‘plant food or fertilizer,’’ ‘‘insect                 reports from 39 states related to this
                                                Ethylpentylone was first reported to                    repellants’’ or ‘‘bath salts,’’ sold at                substance registered in NFLIS. N-
                                                STRIDE/STARLiMS in December 2015.                       smoke shops, head shops, convenience                   Ethylpentylone represented 60% of all
                                                Additionally, encounters of N-                          stores, adult book stores, and gas                     synthetic cathinones encountered by
                                                ethylpentylone have occurred by the                     stations, and purchased on the internet.               local law enforcement agencies and
                                                U.S. Customs and Border Protection                      Like those seen with commercial                        reported to NFLIS in 2017. From
                                                (CBP).                                                  products that contain synthetic                        January 2013 to December 2017, NFLIS
                                                   N-Ethylpentylone, like other synthetic               cathinones, the packages of products                   registered 6,035 reports from state and
                                                cathinones, is a designer drug of the                   that contain N-ethylpentylone also                     local forensic laboratories identifying
                                                phenethylamine class and it is                          probably contain the warning ‘‘not for                 this substance in drug-related exhibits
                                                pharmacologically similar to schedule I                 human consumption,’’ most likely in an                 from 41 states. STRIDE/STARLiMS
                                                synthetic cathinones (e.g., cathinone,                  effort to circumvent statutory                         registered over 338 reports from DEA
                                                methcathinone, mephedrone,                              restrictions for these substances.                     forensic laboratories during January
                                                methylone, pentylone, and MDPV) and                     Demographic data collected from                        2013 to December 2017. Additionally,
                                                well-known schedule I and II                            published reports and mortality records                seizures of N-ethylpentylone have
                                                sympathomimetic agents (e.g.,                           suggest that the main users of N-                      occurred by the U.S. Customs and
                                                methamphetamine, 3,4-                                   ethylpentylone, similar to schedule I                  Border Protection (CBP) beginning in
                                                methylenedioxymethamphetamine                           synthetic cathinones and MDMA, are                     2016. Concerns over the continuing
                                                (MDMA), and cocaine). N-                                young adults.                                          abuse of synthetic cathinones have led
                                                ethylpentylone, similar to these                           Available evidence suggests that the                to the control of many synthetic
                                                substances, causes stimulant related                    history and pattern of abuse of N-                     cathinones.
                                                psychological and somatic effects.                      ethylpentylone parallels that of MDMA,
                                                Consequently, there have been                           methamphetamine, or cocaine and that                   Factor 6. What, if Any, Risk There Is to
                                                documented reports of emergency room                    N-ethylpentylone has been marketed as                  the Public Health
                                                admissions and numerous deaths                          a replacement for these substances. N-                   The identification of N-
                                                associated with the abuse of N-                         Ethylpentylone has been identified in                  ethylpentylone in toxicological samples
                                                ethylpentylone. No approved medical                     law enforcement seizures that were                     associated with fatal and non-fatal
                                                use has been identified for this                        initially suspected to be MDMA. In                     overdoses have been reported in the
                                                substance, nor has it been approved by                  addition, there are reports that abusers               medical and scientific literature,
                                                the FDA for human consumption.                          of N-ethylpentylone thought they were                  forensic laboratory reports, and public
                                                   Available data and information for N-                using MDMA or another illicit                          health documents. Like schedule I
                                                ethylpentylone, summarized below,                       substance but toxicological analysis                   synthetic cathinones, N-ethylpentylone
                                                indicate that this substance has a high                 revealed that the psychoactive                         has caused acute health problems
                                                potential for abuse, no currently                       substance was N-ethylpentylone.                        leading to emergency department (ED)
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                                                accepted medical use in treatment in the                Toxicology reports also revealed that N-               admissions, violent behaviors causing
                                                United States, and a lack of accepted                   ethylpentylone is being ingested with                  harm to self or others, and/or death.
                                                safety for use under medical                            other substances including other                       Adverse health effects associated with
                                                supervision. The DEA’s three-factor                     synthetic cathinones, common cutting                   the abuse of N-ethylpentylone include a
                                                analysis is available in its entirety under             agents, or other recreational substances.              number of stimulant-like adverse health
                                                                                                        Consequently, products containing
                                                  3 NFLIS and STRIDE/STARLiMS databases were            synthetic cathinones, including N-                       4 NFLIS and STRIDE/STARLiMS databases were

                                                queried on February 8, 2018.                            ethylpentylone, are distributed to users,              queried on February 8, 2018.



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                                                27522                 Federal Register / Vol. 83, No. 114 / Wednesday, June 13, 2018 / Proposed Rules

                                                effects such as diaphoresis, insomnia,                  letter dated November 22, 2017, notified               decisions that conclude the regular
                                                mydriasis, hyperthermia, vomiting,                      the Acting Assistant Secretary of the                  scheduling process of formal
                                                agitation, disorientation, paranoia,                    DEA’s intention to temporarily place                   rulemaking are subject to judicial
                                                abdominal pain, cardiac arrest,                         this substance in schedule I.                          review. 21 U.S.C. 877. Temporary
                                                respiratory failure, and coma. In                                                                              scheduling orders are not subject to
                                                                                                        Conclusion
                                                addition, N-ethylpentylone has been                                                                            judicial review. 21 U.S.C. 811(h)(6).
                                                involved in deaths of many individuals.                    This notice of intent provides the 30-
                                                                                                        day notice pursuant to section 201(h) of               Regulatory Matters
                                                The DEA is aware of approximately 151
                                                overdose deaths involving N-                            the CSA, 21 U.S.C. 811(h), of DEA’s                       Section 201(h) of the CSA, 21 U.S.C.
                                                ethylpentylone abuse reported in the                    intent to issue a temporary scheduling                 811(h), provides for a temporary
                                                United States between 2014 and 2018.                    order. In accordance with the provisions               scheduling action where such action is
                                                Thus, the abuse of N-ethylpentylone,                    of section 201(h) of the CSA, 21 U.S.C.                necessary to avoid an imminent hazard
                                                like that of the abuse of schedule I                    811(h), the Acting Administrator                       to the public safety. As provided in this
                                                synthetic cathinones and stimulant                      considered available data and                          subsection, the Attorney General may,
                                                drugs, poses significant adverse health                 information, herein set forth the                      by order, schedule a substance in
                                                risks. Furthermore, because abusers of                  grounds for his determination that it is               schedule I on a temporary basis. Such
                                                synthetic cathinones obtain these                       necessary to temporarily schedule N-                   an order may not be issued before the
                                                substances through unregulated sources,                 ethylpentylone in schedule I of the CSA,               expiration of 30 days from (1) the
                                                the identity, purity, and quantity are                  and finds that placement of N-                         publication of a notice in the Federal
                                                uncertain and inconsistent. These                       ethylpentylone in schedule I of the CSA                Register of the intention to issue such
                                                unknown factors pose an additional risk                 on a temporary basis is necessary in                   order and the grounds upon which such
                                                for significant adverse health effects to               order to avoid an imminent hazard to                   order is to be issued, and (2) the date
                                                the end user.                                           the public safety.                                     that notice of the proposed temporary
                                                   Based on information received by the                    The temporary placement of N-                       scheduling order is transmitted to the
                                                DEA, the misuse and abuse of N-                         ethylpentylone in schedule I of the CSA                Assistant Secretary of HHS. 21 U.S.C.
                                                ethylpentylone has led to, at least, the                will take effect pursuant to a temporary               811(h)(1).
                                                same qualitative public health risks as                 scheduling order, which will not be                       Inasmuch as section 201(h) of the
                                                schedule I synthetic cathinones,                        issued before July 13, 2018. Because the               CSA directs that temporary scheduling
                                                MDMA, and methamphetamine. The                          Acting Administrator hereby finds that                 actions be issued by order and sets forth
                                                public health risks attendant to the                    it is necessary to temporarily place N-                the procedures by which such orders are
                                                abuse of synthetic cathinones, including                ethylpentylone in schedule I to avoid an               to be issued, the DEA believes that the
                                                N-ethylpentylone, are well established                  imminent hazard to the public safety,                  notice and comment requirements of
                                                and have resulted in large numbers of                   the temporary order scheduling this                    section 553 of the Administrative
                                                ED visits and fatal overdoses.                          substance will be effective on the date                Procedure Act (APA), 5 U.S.C. 553, do
                                                                                                        that order is published in the Federal                 not apply to this notice of intent. In the
                                                Finding of Necessity of Schedule I                      Register, and will be in effect for a                  alternative, even assuming that this
                                                Placement To Avoid an Imminent                          period of two years, with a possible                   notice of intent might be subject to
                                                Hazard to the Public Safety                             extension of one additional year,                      section 553 of the APA, the
                                                   In accordance with 21 U.S.C.                         pending completion of the regular                      Administrator finds that there is good
                                                811(h)(3), based on the available data                  (permanent) scheduling process. 21                     cause to forgo the notice and comment
                                                and information, summarized above, the                  U.S.C. 811(h)(1) and (2). It is the                    requirements of section 553, as any
                                                uncontrolled manufacture, distribution,                 intention of the Acting Administrator to               further delays in the process for
                                                reverse distribution, importation,                      issue a temporary scheduling order as                  issuance of temporary scheduling orders
                                                exportation, conduct of research and                    soon as possible after the expiration of               would be impracticable and contrary to
                                                chemical analysis, possession, and/or                   30 days from the date of publication of                the public interest in view of the
                                                abuse of N-ethylpentylone resulting                     this notice. Upon publication of the                   manifest urgency to avoid an imminent
                                                from the lack of control of this                        temporary order, N-ethylpentylone will                 hazard to the public safety.
                                                substance poses an imminent hazard to                   be subject to the regulatory controls and                 Although the DEA believes this notice
                                                the public safety. The DEA is not aware                 administrative, civil, and criminal                    of intent to issue a temporary
                                                of any currently accepted medical uses                  sanctions applicable to the manufacture,               scheduling order is not subject to the
                                                for this substance in the United States.                distribution, reverse distribution,                    notice and comment requirements of
                                                A substance meeting the statutory                       importation, exportation, research,                    section 553 of the APA, the DEA notes
                                                requirements for temporary scheduling,                  conduct of instructional activities and                that in accordance with 21 U.S.C.
                                                21 U.S.C. 811(h)(1), may only be placed                 chemical analysis, and possession of a                 811(h)(4), the Acting Administrator took
                                                in schedule I. Substances in schedule I                 schedule I controlled substance.                       into consideration comments submitted
                                                are those that have a high potential for                   The CSA sets forth specific criteria for            by the Acting Assistant Secretary in
                                                abuse, no currently accepted medical                    scheduling a drug or other substance.                  response to notice that DEA transmitted
                                                use in treatment in the United States,                  Regular scheduling actions in                          to the Acting Assistant Secretary
                                                and a lack of accepted safety for use                   accordance with 21 U.S.C. 811(a) are                   pursuant to section 811(h)(4).
                                                under medical supervision. Available                    subject to formal rulemaking procedures                   Further, the DEA believes that this
                                                data and information for N-                             done ‘‘on the record after opportunity                 temporary scheduling action is not a
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                                                ethylpentylone indicate that this                       for a hearing’’ conducted pursuant to                  ‘‘rule’’ as defined by 5 U.S.C. 601(2),
                                                substance has a high potential for abuse,               the provisions of 5 U.S.C. 556 and 557.                and, accordingly, is not subject to the
                                                no currently accepted medical use in                    21 U.S.C. 811. The regular scheduling                  requirements of the Regulatory
                                                treatment in the United States, and a                   process of formal rulemaking affords                   Flexibility Act (RFA). The requirements
                                                lack of accepted safety for use under                   interested parties with appropriate                    for the preparation of an initial
                                                medical supervision. As required by                     process and the government with any                    regulatory flexibility analysis in 5 U.S.C.
                                                section 201(h)(4) of the CSA, 21 U.S.C.                 additional relevant information needed                 603(a) are not applicable where, as here,
                                                811(h)(4), the Administrator, through a                 to make a determination. Final                         the DEA is not required by section 553


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                                                                         Federal Register / Vol. 83, No. 114 / Wednesday, June 13, 2018 / Proposed Rules                                          27523

                                                of the APA or any other law to publish                  SUMMARY:    The Commission is noticing a               incremental costs of competitive
                                                a general notice of proposed                            recent filing requesting that the                      domestic products (including group
                                                rulemaking.                                             Commission initiate an informal                        specific costs for these products) and
                                                  Additionally, this action is not a                    rulemaking proceeding to consider                      then adds it to the volume variable and
                                                significant regulatory action as defined                changes to an analytical method for use                product specific costs of competitive
                                                by Executive Order 12866 (Regulatory                    in periodic reporting (Proposal Three).                international products. This ‘‘hybrid’’
                                                Planning and Review), section 3(f), and,                This document informs the public of the                approach blends an estimate of
                                                accordingly, this action has not been                   filing, invites public comment, and                    competitive domestic incremental costs
                                                reviewed by the Office of Management                    takes other administrative steps.                      with a proxy estimate of competitive
                                                and Budget.                                             DATES: Comments are due: June 29,                      international incremental costs.
                                                  This action will not have substantial                 2018.                                                     The second proposed revision relates
                                                direct effects on the States, on the                                                                           to estimating inframarginal costs for
                                                relationship between the national                       ADDRESSES:   Submit comments                           products with insufficient data at the
                                                government and the States, or on the                    electronically via the Commission’s                    cost pool level. The Postal Service states
                                                distribution of power and                               Filing Online system at http://                        that this revision primarily concerns
                                                responsibilities among the various                      www.prc.gov. Those who cannot submit                   negotiated service agreements (NSAs),
                                                levels of government. Therefore, in                     comments electronically should contact                 because NSAs are classified as
                                                accordance with Executive Order 13132                   the person identified in the FOR FURTHER               independent products, which can have
                                                (Federalism) it is determined that this                 INFORMATION CONTACT section by                         low volumes. Petition, Proposal Three at
                                                action does not have sufficient                         telephone for advice on filing                         1. Furthermore, the Postal Service
                                                federalism implications to warrant the                  alternatives.                                          contends that NSAs create practical
                                                preparation of a Federalism Assessment.                 FOR FURTHER INFORMATION CONTACT:                       issues in calculating incremental costs,
                                                                                                        David A. Trissell, General Counsel, at                 in part because the Postal Service’s data
                                                List of Subjects in 21 CFR Part 1308                                                                           systems do not distinguish between
                                                                                                        202–789–6820.
                                                  Administrative practice and                                                                                  NSA and non-NSA mailpieces. Id. at 13.
                                                                                                        SUPPLEMENTARY INFORMATION:
                                                procedure, Drug traffic control,                                                                               This prevents the Postal Service from
                                                Reporting and recordkeeping                             Table of Contents                                      creating the standard cost drivers for
                                                requirements.                                           I. Introduction                                        NSAs (e.g. volume, weight, cubic
                                                  For the reasons set out above, the DEA                II. Proposal Three                                     volume), which are necessary for
                                                proposes to amend 21 CFR part 1308 as                   III. Notice and Comment                                calculating incremental costs. Id.
                                                follows:                                                IV. Ordering Paragraphs                                   Proposal. As discussed above, the
                                                                                                                                                               Postal Service proposes two procedures
                                                PART 1308—SCHEDULES OF                                  I. Introduction                                        to revise its calculation of incremental
                                                CONTROLLED SUBSTANCES                                      On June 1, 2018, the Postal Service                 costs.
                                                                                                        filed a petition pursuant to 39 CFR                       Under procedure one, the Postal
                                                ■ 1. The authority citation for part 1308               3050.11, requesting that the                           Service seeks to replace the ‘‘hybrid’’
                                                continues to read as follows:                           Commission initiate a rulemaking                       approach to calculating aggregate
                                                  Authority: 21 U.S.C. 811, 812, 871(b),                proceeding to consider changes to                      incremental costs, which relies on a
                                                956(b), unless otherwise noted.                         analytical principles relating to periodic             proxy for international costs, with a
                                                ■ 2. In § 1308.11, add paragraph (h)(36)                reports.1 The Petition identifies the                  direct estimation of those costs. Id. at 4.
                                                to read as follows:                                     proposed analytical changes filed in this              Due to improvements suggested in the
                                                                                                        docket as Proposal Three.                              FY 2016 Annual Compliance
                                                § 1308.11   Schedule I.                                                                                        Determination, in conjunction with
                                                *       *    *       *      *                           II. Proposal Three                                     corresponding analytical improvements,
                                                    (h) * * *                                      Background. The Commission                                  the Postal Service states that it can now
                                                (36) N-Ethylpentylone, its optical,              adopted the use of incremental costs as                       directly estimate the actual incremental
                                                  positional, and geometric iso-                 the basis for class-level and product-                        costs of international mail. Id. at 6.
                                                  mers, salts and salts of isomers               level attributable costs in September of                         Under procedure two, the Postal
                                                  (Other names: ephylone, N-1-                   2016.2 In FY 2017, the methodology was                        Service proposes thresholds for
                                                  (1,3-benzodioxol-5-yl)-2-                      fully applied for the first time.3 Proposal                   calculating inframarginal costs and an
                                                  (ethylamino)-1-pentanone) ..........    (7543)                                                               alternative methodology for
                                                                                                 Three seeks to revise two incremental
                                                *      *     *      *      *                     costing procedures in accordance with                         approximating the appropriate cost
                                                   Dated: June 6, 2018.                          this methodological change.                                   driver ratios for NSAs. Id. at 8.
                                                Robert W. Patterson,                               The first proposed revision concerns                        Specifically, the Postal Service suggests
                                                                                                 the Postal Service’s method for                               that it should not have to calculate the
                                                Acting Administrator.
                                                                                                 calculating incremental costs for                             incremental costs if an NSA has less
                                                [FR Doc. 2018–12669 Filed 6–12–18; 8:45 am]
                                                                                                 competitive products collectively.                            than 0.3 percent of the product type’s
                                                BILLING CODE 4410–09–P                                                                                         (e.g. Priority Mail, Parcel Select) volume
                                                                                                 Under current analytical principles, the
                                                                                                 Postal Service calculates these costs                         variable cost or less than $8 million in
                                                                                                 using a so-called ‘‘hybrid’’ approach.                        volume variable cost. Id. at 11. The
                                                POSTAL REGULATORY COMMISSION                     The Postal Service first calculates the                       Postal Service also seeks to use the ratio
amozie on DSK3GDR082PROD with PROPOSALS1




                                                                                                                                                               of NSA volume variable costs to product
                                                39 CFR Part 3050                                          1 Petition of the United States Postal Service for   type volume variable costs as a proxy
                                                [Docket No. RM2018–6; Order No. 4635]                   the Initiation of a Proceeding to Consider Proposed    cost driver to calculate the incremental
                                                                                                        Changes in Analytical Principles (Proposal Three),     cost of NSA products. Id. at 12–20.
                                                Periodic Reporting                                      June 1, 2018 (Petition).
                                                                                                          2 Docket No. ACR2017, Annual Compliance
                                                                                                                                                                  Rationale and impact. The Postal
                                                AGENCY:   Postal Regulatory Commission.                 Report, December 29, 2017, at 4–6.                     Service contends that procedure one
                                                                                                          3 Docket No. ACR2017, Annual Compliance              will allow it ‘‘to rely upon the best
                                                ACTION:   Notice of proposed rulemaking.
                                                                                                        Determination, March 29, 2018, at 8.                   available information’’ because the


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Document Created: 2018-06-12 23:59:06
Document Modified: 2018-06-12 23:59:06
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed amendment; notice of intent.
DatesJune 13, 2018.
ContactMichael J. Lewis, Diversion Control
FR Citation83 FR 27520 
CFR AssociatedAdministrative Practice and Procedure; Drug Traffic Control and Reporting and Recordkeeping Requirements

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