1. (a) Wholesale distributors of List I chemicals should use their best judgment in identifying suspicious orders.

2. (b) The wholesalers should use the following criteria in order to identify suspicious orders:

   1. (1) All levels/all chemicals.

      1. (A) New customer or unfamiliar representative or established customer who begins ordering List I chemicals.
      2. (B) Customers who:

3. (i) Do not seem to know industry practice; or

   1. (ii) Fail to provide reasons for an order at variance with accepted legitimate industry practice.

      1. (C) Customer whose communications are not prepared or conducted in a professional business manner.

      2. (D) Customer who:

         1. (i) Provides evasive responses to any questions; or
         2. (ii) Is unable to supply information as to whether chemicals are for domestic use or for export.
      3. (E) Customer who has difficulty pronouncing chemical names.
      4. (F) New customer who does not seem to know federal or state government rules.

      5. (G) Customer whose stated use of List I chemicals is incompatible with the:

         1. (i) Destination country’s commercial activities; or
         2. (ii) Consignee’s line of business.
      6. (H) Customer who wants predominantly or only regulated chemicals.
      7. (I) Customer who wants multiple regulated or surveillance list products, particularly if in contrast to customary use and practice.

      8. (J) Customer who is vague or resists providing information about the firm’s:

         1. (i) Address;
         2. (ii) Telephone number; and
         3. (iii) Reason for seeking that chemical.

      9. (K) Customer who provides false or suspicious:

         1. (i) Addresses;
         2. (ii) Telephone numbers; or
         3. (iii) References.
      10. (L) Customer who is vague or will not furnish references for credit purposes.
      11. (M) Customer who refuses or is reluctant to establish a credit account or provide purchase order information.
      12. (N) Customer who prefers to pay by cashier’s check, postal money order, etc.
      13. (O) Customer who desires to pay cash.
      14. (P) Customer who wants to pick up the chemicals outside of normal practice in the supplier’s experience.
      15. (Q) Customer with little or no business background available.
      16. (R) An established customer who deviates from previous orders or ordering methods.
      17. (S) Customer who wants air freight or express delivery.
      18. (T) Customer who wants chemicals shipped to post office boxes or an address other than their usual business address, i.e., residence address.
      19. (U) Customer using a freight forwarder as ultimate consignee.
      20. (V) Customer who requests unusual methods of delivery or routes of shipment.
      21. (W) Customer who provides unusual shipping, labeling, or packaging instructions.
      22. (X) Customer who requests the use of intermediate consignees whose location or business is incompatible with the purported end user’s nature of business or location.
      23. (Y) Above-threshold hydrochloride gas or iodine sales to a noncommercial customer;

   2. (2) Distributor (nonretail) of regulated over-the-counter products.

      1. (A) Customer who does not want to tell you what area they will resell into.
      2. (B) Customer who does not want to tell you in what volumes they will resell.
      3. (C) Customer who refuses to tell you who their customers are.
      4. (D) Customer who does not have limits on resales.
      5. (E) Customer who pushes to buy more than your sales limit.
      6. (F) Customer who repeatedly buys your sales limit at the shortest interval you set.
      7. (G) Customer who does not know what their customers’ limits are on individual resales.

      8. (H) Customer who resells to nontraditional outlets for regulated over-the-counter products, i.e.:

         1. (i) Hair salons;
         2. (ii) Head shops;
         3. (iii) Drug paraphernalia stores;
         4. (iv) Liquor stores;
         5. (v) Record stores; and
         6. (vi) Video shops.
      9. (I) Customer who resells large volumes into the independent convenience store market.
      10. (J) Any customer who asks for large bottle sizes, sixty (60) count or higher.
      11. (K) Customer who buys only the largest size available.

      12. (L) Customer who:

          1. (i) Does not sell other pharmaceutical products; or
          2. (ii) Appears to sell those other products in token amounts.
      13. (M) Any customer that resells multiple cases that flow through to individual retail outlets.

      14. (N) New customer who wants to sell regulated over-the-counter products into:

          1. (i) California;
          2. (ii) Arizona;
          3. (iii) Nevada;
          4. (iv) Oregon;
          5. (v) Utah;
          6. (vi) Washington;
          7. (vii) New Mexico;
          8. (viii) Texas;
          9. (ix) Kansas;
          10. (x) Missouri; or
          11. (xi) Arkansas.
      15. (O) Any customer who wants to sell to an outlet relocated from California, Missouri, or Kansas to any of the states identified in subdivision (b)(2)(N) of this section.

      16. (P) Any customer who wants to export, particularly to:

          1. (i) Mexico;
          2. (ii) Canada; or
          3. (iii) Southeast Asia.

      17. (Q) Customer who:

          1. (i) Will not provide you with evidence of registration with the Drug Enforcement Administration; or
          2. (ii) Has applied by November 13, 1995, for single-entity ephedrine, pseudoephedrine, and phenylpropanolamine products.
      18. (R) Customer who will not provide you with evidence of applicable state registrations/licenses.

      19. (S)

          1. (i) Customer who sells mail order and who does not report sales to the Drug Enforcement Administration monthly.
          2. (ii) Note they must also be registered.
      20. (T) Nominal retail customer who sells above the federal retail twenty-four-gram individual sale limits; and

   3. (3) Wholesale drug distribution indicators.

      1. (A) Individual pharmacies that intend to export.
      2. (B) Individual pharmacies or chains that won’t set a voluntary limit for individual sales at some fraction of the federal limit to qualify as a retail outlet.
      3. (C) Pharmacies that stock large shelf volumes in stores that have repeated thefts or other sales problems.

Codification Notes: This section as promulgated prior to codification into the Code of Arkansas Rules provided as follows: “(6/21/2001)"