[Code of Federal Regulations]
[Title 21, Volume 9]
[Revised as of April 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 21CFR1310.07]

[Page 129-130]
 
                         TITLE 21-FOOD AND DRUGS
 
   CHAPTER II--DRUG ENFORCEMENT ADMINISTRATION, DEPARTMENT OF JUSTICE
 
PART 1310_RECORDS AND REPORTS OF LISTED CHEMICALS AND
CERTAIN MACHINES--Table of Contents
 
Sec. 1310.07  Proof of identity.

    (a) Each regulated person who engages in a regulated transaction 
must identify the other party to the transaction. For domestic 
transaction, this shall be accomplished by having the other party 
present documents which would verify the identity, or registration 
status if a registrant, of the other party to the regulated person at 
the time the order is placed. For export transactions, this shall be 
accomplished by good faith inquiry through reasonably available research 
documents or publicly available information which would indicate the 
existence of the foreign customer. No proof of identity is required for 
foreign suppliers.
    (b) The regulated person must verify the existence and apparent 
validity of a business entity ordering a listed chemical, tableting 
machine or encapsulating machine. For domestic transactions, this may be 
accomplished by such methods as checking the telephone directory, the 
local credit bureau, the local Chamber of Commerce or the local Better 
Business Bureau, or, if the business entity is a registrant, by 
verification of the registration. For export transactions, a good faith 
inquiry to verify the existence and apparent validity of a foreign 
business entity may be accomplished by such methods as verifying the 
business telephone listing through international telephone information, 
the firm's listing in international or foreign national chemical 
directories or other commerce directories or trade publications, 
confirmation through foreign subsidiaries of the U.S. regulated person, 
verification through the country of destination's embassy Commercial 
Attache, or official documents provided by the purchaser which confirm 
the existence and apparent validity of the business entity.
    (c) When transacting business with a new representative of a firm, 
the regulated person must verify the claimed agency status of the 
representative.
    (d) For sales to individuals or cash purchasers, the type of 
documents and other evidence of proof must consist of at least a 
signature of the purchaser, a driver's license and one other form of 
identification. Any exports to individuals or exports paid in cash are 
suspect and should be handled as such. For such exports, the regulated 
person shall diligently obtain from the purchaser or independently seek 
to confirm clear documentation which proves the person is properly 
identified such as through foreign identity documents, driver's license, 
passport information and photograph, etc. Any regulated person who fails 
to adequately prove the identity of the other party to the transaction 
may be subject to the specific penalties provided for violations of law 
related to regulated transactions in listed chemicals.

[[Page 130]]

    (e) For a new customer who is not an individual or cash customer, 
the regulated person shall establish the identity of the authorized 
purchasing agent or agents and have on file that person's signature, 
electronic password, or other identification. Once the authorized 
purchasing agent has been established, the agent list may be updated 
annually rather than on each order. The regulated person must ensure 
that shipments are not made unless the order is placed by an authorized 
agent of record.
    (f) With respect to electronic orders, the identity of the purchaser 
shall consist of a computer password, identification number or some 
other means of identification consistent with electronic orders and with 
Sec. 1310.07(e).

[54 FR 31665, Aug. 1, 1989, as amended at 60 FR 32461, June 22, 1995]