PART 16-NARCOTICS [REVISED]

NOTE: The Harrison Anti-Narcotics Act of December 17, 1914, as amended and supplemented, was incorporated into the Internal Revenue Code of 1954 (26 U.S.C.). For application of the Harrison Anti-Narcotics Act to the Canal Zone, see 26 U.S.C. 4774. For authority and duty of the President to issue necessary Executive orders to carry into effect in the Canal Zone the intent and purposes of the Harrison Anti-Narcotics Act, see 26 U.S.C. 4735(b) and for delegation of this authority to the Secretary of the Treasury, see subparagraph (1) of paragraph 1 of Executive Order 10289, 3 CFR, 1951 Supp., page 469, as added by Executive Order 10583, 3 CFR, 1954 Supp., page 98.

For the provisions of the Narcotics Drugs Import and Export Act, as amended and supplemented, see 21 U.S.C. 171-199. For provisions penalizing the administration of narcotics with intent to assist the Commission of a felony, see 5 C.Z. Code 313. For the control of marihuana in the Canal Zone see sections 581 to 584 of title 5, C.Z. Code, as added by the Act of October 1, 1942 (56 Stat. 763).

§ 16.1 Authority of the Governor of the Canal Zone.

The Governor of the Canal Zone shall perform in the Canal Zone all of the duties required to be performed under the Act of Congress approved December 17, 1914, entitled "An Act To provide for the registration of, with collectors of internal revenue, and to impose a special tax upon all persons who produce, import, manufacture, compound, deal in, dispense, sell, distribute, or give away opium or coca leaves, their salts, derivatives, or preparations, and for other purposes," as amended. These duties shall include the making of such inspections and the taking of such actions as may be necessary to enforce the provisions of the Act of December 17, 1914, as amended, and all orders and regulations issued thereunder, insofar as they apply to activities in or relating to the Canal Zone. § 16.2

Issuance of regulations.

The Governor of the Canal Zone shall prescribe such regulations as may be necessary to carry the provisions of this subpart into full force and effect. In doing so the Governor shall follow the form of regulations prescribed by the Commissioners of Narcotics and Internal Revenue and approved by the Secretary of the Treasury (26 CFR Part 151) so far as they can be made applicable to conditions in the Canal Zone. § 16.3

Redelegation.

The Governor of the Canal Zone is authorized to delegate to such officers or employees of the Canal Zone as he may deem appropriate any of his functions under this subpart when he deems a delegation necessary or desirable to carry out the purposes of this subpart § 16.4 Prohibited acts.

No person shall produce, import, manufacture, compound, deal in, dispense, sell, distribute, or give away in the Canal Zone opium, opiates, or coca leaves, their salts, derivatives, or preparations, unless he shall have complied with the provisions of the Act of December 17, 1914, as amended, and all relevant orders and regulations issued thereunder.

would be required, if located outside of the Canal Zone, to register with the director of internal revenue of his district, his name or style, place of business and place or places where such business is to be carried on, shall register that information with the Governor of the Canal Zone or his delegate on forms to be prescribed by the Governor. At the time of such registry, and on or before the first day of July annually thereafter, every person who produces, imports, manufactures, compounds, deals in, dispenses, sells, distributes, or gives away any of the aforesaid narcotic drugs shall pay to the Governor of the Canal Zone, or to his delegate, a special tax at the rate or rates specified in section 4721 of the Internal Revenue Code of 1954, as amended; provided, however, that any person who would not be required, if located outside the Canal Zone, to register or pay a special tax shall not be required to register or pay the special tax as provided in this subpart.

§ 16.6 Issuance of order forms.

The Governor of the Canal Zone or his delegate shall cause suitable order forms to be prepared for sale to persons who shall have registered and paid the special tax as required by the Act of December 17, 1914, as amended, and by this subpart. The price to be paid for such order forms shall be $1 per hundred. The Governor or his delegate shall be subject to the same limitation on sales of order forms as directors of internal revenue in districts outside of the Canal Zone.

§ 16.7 Penalties.

Any person who violates or fails to comply with any of the requirements of the Act of December 17, 1914, as amended, or of any applicable order thereunder in the Canal Zone shall be subject to the penalties provided for in that Act, as amended.

Subpart B-Supplementary Regulations Prescribed by Governor; Administration of Laws and Regulations Relating to Narcotic Drugs AUTHORITY: 16.11 to 16.21 issued under 35 CFR 16.2, 16.3.

SOURCE: 16.11 to 16.21 appear at 26 F.R. 9584, Oct. 11, 1961.

(a) The term "narcotic drugs" shall mean any of the following whether produced directly or indirectly by extraction from substances of vegetable origin, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis:

(1) Opium, isonipecaine, coca leaves and opiate;

(2) Any compound, manufacture, salt, derivative, or preparation of opium, isonipecaine, coca leaves, or opiate;

(3) Any substance (and any compound, manufacture, salt, derivative, or preparation thereof) which is chemically identical with any of the substances referred to in subparagraphs (1) and (2) of this paragraph;

except that the words "narcotic drugs" as used in this subpart shall not include decocainized coca leaves or extracts of coca leaves, which extracts do not contain cocaine or ecgonine.

(b) The word "opiate", as used in this part shall mean any drug (as defined in the Federal Food, Drug, and Cosmetic Act; 52 Stat. 1041, section 201(g); 21 U.S.C. 321) or other substance found by the Secretary of the Treasury or his delegate, to have an addiction-forming or addiction-sustaining liability similar to morphine or cocaine.

(c) "Comptroller" shall mean the Comptroller of the Panama Canal Company, acting for and in behalf of the Canal Zone Government.

(d) The term "person" includes a partnership, association, company, or corporation as well as a natural person.

§ 16.12 Registration and payment of tax.

Any person who produces, imports, manufactures, compounds, deals in, dispenses, sells, distributes or gives away narcotics in the Canal Zone, shall register with the Comptroller his name or style and place of business. Applications for registration shall be made on forms to be provided by the Comptroller. At the time of such registry, and on or before the first day of July annually thereafter, every person who is required to register shall pay to the Comptroller a special tax at the rate or rates specifiled in section 4721 of title 26, United States Code.

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§ 16.13 Investigation of applicants.

The Comptroller shall make such investigation as is necessary to determine that each applicant is properly licensed or otherwise lawfully entitled to engage in the activity for which he seeks registration.

§ 16.14 Registry numbers.

Upon approval of the application the Comptroller shall assign a registry number to the applicant. The same number shall be retained throughout all the consecutive periods for which the applicant may be registered.

§ 16.15 Written order forms required.

Order forms are required for all sales or other dispositions of narcotic drugs except:

(a) For dispositions directly to bona fide patients by a duly qualified physician, dentist or veterinary surgeon who is registered under § 16.12.

(b) For sales or other dispositions pursuant to properly executed prescriptions for legitimate medical purposes.

(c) For the sale, distribution, giving away, dispensing, or possession of preparations and remedies which do not contain more than 2 grains of opium, or more than one-fourth of a grain of morphine, or more than one-eighth of a grain of heroin, or more than 1 grain of codeine, or any salt or derivative of any of them in 1 fluid ounce, or, if a solid or semisolid preparation, in 1 avoirdupois ounce; or of liniments, ointments, or other preparations which are prepared for external use only, except liniments, ointments, and other preparations which contain cocaine or any of its salts or alpha or beta encaine or any of their salts or any synthetic substitute for them, provided that such remedies and preparations are manufactured, sold, distributed, given away, dispensed, or possessed as medicines and not for the purpose of evading the intentions and provisions of these regulations.

§ 16.16 Issuance of order forms.

The Comptroller shall cause suitable order forms to be prepared for sale to registered persons and for distribution free of charge to officials who are exempt under § 16.19. The price to be paid for such order forms by registered persons shall be $1 per hundred. The Comp

A prescription for narcotic drugs may be issued only by a physician, dentist, veterinary surgeon, or other practitioner who has duly registered under § 16.12, or an exempt official who is authorized to prescribe narcotics. A prescription, in order to be effective in legalizing the possession of narcotic drugs and eliminating the use of order forms, must be issued for legitimate medical purposes. The Health Director of the Canal Zone Government shall prescribe:

(a) When prescriptions are to be used;

(b) The manner of execution written prescriptions;

of

(c) Procedures for the recording of oral prescriptions;

(d) Procedures indicating how prescriptions are to be filled.

§ 16.18 Exempt officials-military and naval officers.

Officers, members, and employees of the Army, Navy, or Air Force in the Canal Zone (other than those assigned to the Health Bureau of the Canal Zone Government) who, in the exercise of their official duties, acquire, dispense, or handle narcotic drugs or preparations, shall not be governed by these regulations but shall be governed by regulations and directives as issued by the Department of the Army, Department of the Navy, and Department of the Air Force.

§ 16.19 Exempt officials-civil officers and nurses.

(a) Civilian officers and employees (including military officers assigned to the Health Bureau of the Canal Zone Government) of departments, agencies or instrumentalities of the United States in the Canal Zone (other than those covered by § 16.18) who, in the exercise of their official duties, acquire, dispense, or handle narcotic drugs or preparations, shall not be required to register