I. INTERDICTIONS OF ILLICIT DRUGS AND FIREARMS SMUGGLING IN 2006

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I. INTERDICTIONS OF ILLICIT DRUGS AND FIREARMS SMUGGLING IN 6 1. (1) Summary A total of 78 cases of interdiction of illicit drugs were reported in 6 (111% of the previous year's level). The amount of seizure was 77 (6% of the previous year's level) for drugs such as stimulants and cannabis (illicit drugs excluding tablet-type drugs such as MDMA and psychotropics, the same below), and 14 thousand for psychotropics, tablet-type drugs, such as MDMA (7% of the previous year's level). Meanwhile, four cases of interdicted smuggling of firearms were reported (% of the previous year's level), and firearms were seized (7% of the previous year's level). Major characteristics of smuggling in 6 were as follows: The number of interdictions of stimulants rapidly increased in the latter half of the year to reach 8, which was the second largest figure after 1 cases in 4. Approximately of opium was interdicted at one time, which was the record high for a single seizure of opium. The means of smuggling have become more diversified, including smuggling of stimulants by air passengers, and ship passengers and crew members by wrapping them around their body, concealment in international mail matters, impregnating bath towels with solutions of stimulants, and concealment of cannabis in hangers. () Interdiction of Major Illicit Drugs and Firearms Year 4 6 Category Compared to Stimulants Cannabis 76 76 1 14 4 8 19 48% 8% 48 476 7 766 8 888 88 88 14 196 9% % (Herbal 191 4 178 16 76% cannabis) 61 46 97 8 1 4% (Cannabis 8 1 7 6 9 91% resin) 91 66 % Heroin Cocaine Opium 1 9 11 19 6 1 6 1% 4% % 19 14 4 8 1 7 7 186% 4% 6669% 4 4 1% MDMA 1, Tablets 17 68 41 4 1 49% 89 8 6 8 179% Psychotropics 1, Tablets 6 16 7 7 184% 4 4 6 4 78 111% Total 918 114 1,8 679 77 6% 1, 8 49 49 14 7% Reference ( uses) Tablets 1, times 1,884 1,97, 66 69 14% Firearms Firearms parts 8 9 4 4 % Quantity 1 1 4 7% 7 1 Total increase Quantity 4 1 1 Total increase Notes: 1. The figures, which are on a detection basis, include quantities seized not only in smuggling cases detected by Customs but also in smuggling cases detected by the police and other law enforcement agencies in collaboration with Customs.. "Stimulants" includes its raw material.. "MDMA" represents the sum of all synthetic narcotics including MDMA and MDA. 4. A conversion was made for the " uses" based on an average dose of abusers (stimulant:. g; herbal cannabis:. g; cannabis resin:.1 g; heroin:.1 g; cocaine:. g; opium:.g; MDMA and psychotropic: 1 tablet). - 1 -

() Transition in the s for Major Illicit Drugs () 1,6 Stimulants Cannabis Other 1,4 1.4t 84 1, 1.1t 9 1,.9t 4 8 6 476 766 888.7t 4 88.4t 7 48 7 8 196 4 6 (year) 88 14 (Note) Other drugs include heroin, cocaine and opium. (1, ) 4 1 MDMA, etc., 6 17 Psychotropics 8, 16 68 49, 7 41 49, 4 14, 7 1 4 6 (year) - -

. Trends in Illicit Drug Smuggling (1) Stimulants The number of interdictions recorded the second largest figure following the 4 level. Smuggling cases by air passengers, sea passengers and crew members were interdicted one after another. Smuggling cases from Canada and Malaysia increased. Stimulants still account for about 8% of the total number of arrests for drug abuse (the National Police Agency's data), which makes them the most widely abused illicit drugs in Japan. The number of domestic arrests in 6 decreased to 11,611 (87% of the previous year's level) compared to. While members and semi-members of gangster organizations still account for approximately % of the number of arrests, the number of juvenile criminals decreased, and the recidivism rate was more than % (the National Police Agency's data). The number of smuggling cases interdicted in 6 was 8 (48% of the previous year's level), and the amount of seizures was 14 (9% of the previous year's level), showing an increase in the number of smuggling cases and the amount of seizures compared with the previous year's level. The number of smuggling cases, in particular, was the second-largest figure ever recorded, following the 4 level. [See Chart 1.] In terms of the major smuggling routes in 6, while China remained the largest smuggling route, the number of smuggling cases from Canada and Malaysia, which showed a decrease in, led to an increase again. Concerning the modus operandi of smuggling, there were new modi operandi such as impregnating bath towels with solutions of stimulants, in addition to smuggling by air passengers, sea passengers and crew members by wrapping stimulants around their body, and concealing stimulants in international mail services. Risks for interdiction tended to be dispersed as indicated by the fact that one time amount of seizure remained at 1 to even in interdiction of commercial cargoes, which had been often home to smuggling in large quantities. [Chart 1: Transition in the amount of seizure and the number of interdictions for stimulants] () 1,6 1,4 1, 1, () 1 1 8 8 6 6 4 4 1997 1998 1999 1 4 6 64 44 1,4 886 48 7 8 88 14 7 9 7 4 76 1 8 - -

() Cannabis (herbal cannabis and cannabis resin (hashish)) Compared to, the number of interdictions decreased by %, and the amount of seizure decreased to one-third. Smuggling cases with hard-to-detect concealment were interdicted one after another, such as smuggling perpetrated by air passengers by concealment in wooden hangers and by swallowing. The largest source of herbal cannabis was the Netherlands while cannabis resin still came mainly from India and Nepal. Cannabis is generally assumed to be the most abused illicit drug in the world, and in Japan as well, it is the drug that has been confiscated in the largest quantity among the illicit drugs seized in the past five years. In recent years, its abuse has been spreading, especially among the youth in their 's, and the number of arrests for cannabis abuse in 6 reached,89, wich was the record high (118% of the previous year's level, the National Police Agency's data). The number of interdictions and the amount of seizure in 6 was 19 (8% of the previous year's level) and 196 (% of the previous year's level), respectively. This indicates that cannabis tended to be smuggled in smaller and more frequent lots like stimulants. [See Chart.] The major routes for smuggling herbal cannabis in 6 included a European route involving countries like the Netherlands and Belgium and an African route involving countries like South Africa and Swaziland, whose herbal cannabis was interdicted for the first time. The African route, accounting for about % of the total amount of seizure, played a major role in smuggling of herbal cannabis as it had been. The major route for smuggling cannabis resin was a South Asian route involving India and Nepal. Concerning the modus operandi of smuggling, cases with hard-to-detect concealment were interdicted one after another, such as smuggling perpetrated by air passengers by concealment in wooden hangers and by swallowing (swallowing cannabis into the body). [Chart : Transition in the amount of seizure and the number of interdictions for cannabis] () 1, 9 8 7 6 4 1 () 4 1 1997 1998 1999 1 4 6 81 7 48 797 476 766 888 88 196 169 66 14 76 14 4 19-4 -

() Tablet-type synthetic drugs such as MDMA (including MDA and MDE) While the number of interdictions increased, the amount of seizure decreased. Smuggling cases via international mail services were interdicted one after another. European routes accounted for more than 9% of the total amount of seizure. MDMA (commonly known as "Ecstasy") is a synthetic drug that has pharmacological effects similar to stimulants. Due mainly to their shapes, which tend to lower resistance to drug abuse, the spread of their abuse is a growing concern especially among young people in their 's. Consequently, the number of domestic arrests in 6 reached 7 (9% of the previous year's level) and increased at a high level following the previous year and 4, when a record high level was reached (the National Police Agency's data). The number of interdictions in 6 was (1% of the previous year's level), and the amount of seizure reached 1 thousand (49% of the previous year's level). While the number of interdictions increased by % from the level, the amount of seizure decreased by nearly %. [See Chart.] As for the major routes for smuggling in 6, a European route mainly via the Netherlands accounted for more than 9% of the total amount of seizure, followed by Canada and China (including Hong Kong). The major mode of transportation was by air passengers or via international mail services as in. Concerning the modus operandi of smuggling, cases where MDMA concealed in straws were smuggled from the Netherlands via international mail services were interdicted one after another, in addition to smuggling perpetrated by air passengers by concealment in suitcases. [Chart : Transition in the amount of seizure and the number of interdictions for MDMA and other drugs] (1 ) 4 4 () 6 4 1 1 1997 1998 1999 1 4 6 11 18 8 118 17 68 41 4 1 11 6 6 4 6 4 4 - -

(4) Other illicit drugs: cocaine, heroin, opium and psychotropics a. South America is the largest source of cocaine production, and most of the coca leaves used to produce cocaine are illegally grown in the three countries of Columbia, Peru and Bolivia. It is mainly consumed in the United States and Europe. The number of interdictions of smuggling cases in 6 was 1 (4% of the previous year's level), and the amount of seizure increased to 7. (approximately 4% of the previous year), showing a considerable increase both in the number of interdictions of smuggling cases and the amount of seizures compared to the level. [See Chart 4.] [Chart 4: Transition in the amount of seizure and the number of interdictions for cocaine] (g) 9, 8, 7, () 6,, 4,, 1, 1, 1997 1998 1999 1 4 6,68 16,9 4,44 6,66 17,78 1,77 116 8,16 1,79 7,1 7 19 1 1 7 1 11 19 1 b. The Golden Triangle, which spreads over Thailand, Laos and Myanmar, and the Golden Crescent, encompassing Afghanistan, Pakistan and Iran, are believed to be the major areas where heroin is produced. The Golden Triangle and its neighboring areas have been the main source of the heroin smuggled into Japan. In 6, cases (1% of the previous year) of smuggling of heroin were interdicted with a seizure of.1 (1,86% of the previous year) of heroin. [See Chart.] - 6 -

[Chart : Transition in the amount of seizure and the number of interdictions for heroin] (g), 18, 16, 14, 1, 1, 8, 6, 4,, () 1 1997 1998 1999 1 4 6,78,678 1,94,68 4,77 18,66 4,91 1 119,6 1 18 1 14 11 9 c. Opium, like heroin, is generally assumed to be produced mostly in the Golden Triangle and the Golden Crescent. In 6, 6 cases (% of the previous year) of smuggling of opium were interdicted with a seizure of 7 (6,669% of the previous year) of opium. While a smuggling case of about, the largest amount ever recorded for one-time seizure, was interdicted, many smuggling cases from Iran using small-lot air express cargoes were interdicted. [See Chart 6.] [Chart 6: Transition in the amount of seizure and the number of interdictions for opium] (g), (),,, 4 4 1,, 1 1997 1998 1999 1 4 6 1, 17,86 7,1,111 7,81 1,91 4,19 1,16 411 7,4 11 11 8 6 6-7 -

d. Psychotropics is a generic term for substances which have tranquilizing, stimulative or hallucinatory effects on the central nervous system. The number of interdictions in 6 was (179% of the previous year's level), and the amount of seizure was 7 thousand (184% of the previous year's level). [See Chart 7.] Major sources for smuggling in 6 were the Asian region, including China, Thailand and the Philippines, and smuggling from these countries accounted for some 9% of the total amount of seizure. [Chart 7: Transition in the amount of seizure and the number of interdictions for psychotropics] (1 ) 18 16 14 1 1 8 6 4 () 1 1997 1998 1999 1 4 6 11 16 141 6 9 6 16 7 7 1 167 89 96 89 8 6 8 Accusation of the stimulant smuggling cases where large quantities of stimulants were made to drift ashore to Shimane Prefecture in. As for the cases where large quantities of stimulants were made to drift ashore on the coast of Nawacho and Daisen-cho of Saihaku-gun, Shimane, in November and December of, respectively, Tokyo Customs conducted a joint investigation with Kobe Customs and other related law enforcement authorities. As a result, they found out that those stimulants, weighing about 7, had been thrown from a North Korean-registered ship and that similar smuggling cases had also occurred in June and October of the same year. In August 6, they accused eight suspects including gang leaders who had tried to smuggle the stimulants by ship-to-ship delivery at sea. - 8 -

. Trends in Firearms Smuggling Genuine handguns seized within the country in 6 were mostly made in foreign countries such as the United States, the Philippines, Belgium, and Russia (the National Police Agency's data). Thus, most of the handguns seized within the country are considered to have been smuggled from overseas. The number of interdictions for firearms in 6 was 4 (% of the previous year's level), and the number of seized firearms was (7% of the previous year's level). [See Chart 8.] [Chart 8: Transition in the number of seizure and the number of interdictions for firearms] (Quantity) 14 1 1 8 6 4 () 4 1 1997 1998 1999 1 4 6 61 4 1 1 1 1 4 19 1 1 9 8 9 4 4 Other Smuggling : smuggling of articles infringing intellectual property rights Along with socially harmful goods, articles infringing intellectual property rights are designated as import-prohibited goods by the Customs Law. Most of the cases of smuggling for articles infringing intellectual property rights that were interdicted by Customs as a customs offenses involved counterfeit brand products that infringed on trademark rights. Most of the cases were smuggling from China and South Korea via international mail services or using passenger's accompanied personal effects. In 6, Customs disposed 18 cases of smuggling cases of goods infringing IPRs, including the accusation of smuggling cases of clothing and bags that infringed on trademark rights and of counterfeit Viagra that infringed on patent rights and trademark rights. - 9 -