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2001
DRUG TRAFFICKING ON THE SOUTHWEST BORDER
HEARING
BEFORE THE
SUBCOMMITTEE ON CRIME
OF THE
COMMITTEE ON THE JUDICIARY
HOUSE OF REPRESENTATIVES
ONE HUNDRED SEVENTH CONGRESS
FIRST SESSION
MARCH 29, 2001
Serial No. 3
Printed for the use of the Committee on the Judiciary
Page 2 PREV PAGE TOP OF DOCAvailable via the World Wide Web: http://www.house.gov/judiciary
For sale by the Superintendent of Documents, U.S. Government Printing Office
Internet: bookstore.gpo.gov Phone: (202) 512–1800 Fax: (202) 512–2250
Mail: Stop SSOP, Washington, DC 20402–0001
COMMITTEE ON THE JUDICIARY
F. JAMES SENSENBRENNER, JR., WISCONSIN, Chairman
HENRY J. HYDE, Illinois
GEORGE W. GEKAS, Pennsylvania
HOWARD COBLE, North Carolina
LAMAR SMITH, Texas
ELTON GALLEGLY, California
BOB GOODLATTE, Virginia
STEVE CHABOT, Ohio
BOB BARR, Georgia
WILLIAM L. JENKINS, Tennessee
ASA HUTCHINSON, Arkansas
CHRIS CANNON, Utah
LINDSEY O. GRAHAM, South Carolina
SPENCER BACHUS, Alabama
JOE SCARBOROUGH, Florida
JOHN N. HOSTETTLER, Indiana
MARK GREEN, Wisconsin
Page 3 PREV PAGE TOP OF DOCRIC KELLER, Florida
DARRELL E. ISSA, California
MELISSA A. HART, Pennsylvania
JEFF FLAKE, Arizona
JOHN CONYERS, Jr., Michigan
BARNEY FRANK, Massachusetts
HOWARD L. BERMAN, California
RICK BOUCHER, Virginia
JERROLD NADLER, New York
ROBERT C. SCOTT, Virginia
MELVIN L. WATT, North Carolina
ZOE LOFGREN, California
SHEILA JACKSON LEE, Texas
MAXINE WATERS, California
MARTIN T. MEEHAN, Massachusetts
WILLIAM D. DELAHUNT, Massachusetts
ROBERT WEXLER, Florida
TAMMY BALDWIN, Wisconsin
ANTHONY D. WEINER, New York
ADAM B. SCHIFF, California
TODD R. SCHULTZ, Chief of Staff
PHILIP G. KIKO, General Counsel
Page 4 PREV PAGE TOP OF DOCSubcommittee on Crime
LAMAR SMITH, Texas, Chairman
MARK GREEN, Wisconsin
HOWARD COBLE, North Carolina
BOB GOODLATTE, Virginia
STEVE CHABOT, Ohio
BOB BARR, Georgia
ASA HUTCHINSON, Arkansas,
Vice Chair
RIC KELLER, Florida
ROBERT C. SCOTT, Virginia
ANTHONY D. WEINER, New York
SHEILA JACKSON LEE, Texas
MARTIN T. MEEHAN, Massachusetts
WILLIAM D. DELAHUNT, Massachusetts
GLENN R. SCHMITT, Chief Counsel
SEAN MCLAUGHLIN, Counsel
ELIZABETH SOKUL, Counsel
BOBBY VASSAR, Minority Counsel
C O N T E N T S
HEARING DATE
Page 5 PREV PAGE TOP OF DOCMarch 29, 2001
OPENING STATEMENT
The Honorable Lamar Smith, a Representative in Congress From the State of Texas, and chairman, Subcommittee on Crime
WITNESSES
Donnie R. Marshall, Administrator, Drug Enforcement Administration
John C. Varrone, Assistant Commissioner, Office of Investigations, United States Customs Service
Michael D. Scott, Chief, Criminal Law Enforcement Division, Texas Department of Public Safety
Hon. Royal Furgeson, United States District Judge, United States District Court for the Western District of Texas
LETTERS, STATEMENTS, ETC., SUBMITTED FOR THE HEARING
The Honorable Sheila Jackson Lee, a Representative in Congress From the State of Texas: Prepared Statement
Page 6 PREV PAGE TOP OF DOCDonnie R. Marshall, Administrator, Drug Enforcement Administration: Prepared Statement
John C. Varrone, Assistant Commissioner, Office of Investigations, United States Customs Service: Prepared Statement
Michael D. Scott, Chief, Criminal Law Enforcement Division, Texas Department of Public Safety: Prepared Statement
The Honorable Royal Furgeson, United States District Judge, United States District Court for the Western District of Texas: Prepared Statement
APPENDIX
Material submitted for the record
DRUG TRAFFICKING ON THE SOUTHWEST BORDER
Thursday, March 29, 2001,
House of Representatives,
Subcommittee on Crime,
Committee on the Judiciary,
Washington, DC.
The subcommittee met, pursuant to notice, at 10:11 a.m. in Room 2237, Rayburn House Office Building, Hon. Lamar Smith [chairman of the subcommittee] presiding.
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OPENING STATEMENT OF CHAIRMAN SMITH
Mr. SMITH. The Subcommittee on Crime will come to order. I am going to have an opening statement, as will the ranking member, Mr. Scott, and then, we will look forward to hearing from our witnesses today.
Today, the Subcommittee on Crime holds its first hearing on a subject that will be a major focus of the Crime Subcommittee's work: the drug trade, especially drug trafficking along the Southwest border. Illegal drug use is still a terrible problem in this country, and according to a recent study by the Princeton Survey Research Association, it is a top concern of many Americans. Drug trafficking and the violence that accompanies the drug trade are responsible for much of the nation's crime.
An overwhelming amount of the drugs that destroy the lives of so many Americans begins its journey to the United States by crossing the U.S.-Mexico border. Over the last several years, we have seen a significant escalation in the amount of narcotics seized along the Southwest border of the United States. Despite the efforts of Federal, State and local law enforcement agents who diligently perform their duties in a dangerous environment, drug traffickers are sending greater quantities and larger loads of drugs into the U.S.
During the late 1980's and early 1990's, drug trafficking routes in South Florida and the Caribbean were substantially restricted by successful law enforcement efforts. Unfortunately, one of the side effects of that success was to make the U.S.-Mexico border more attractive for smuggling marijuana, cocaine, heroin and methamphetamine. The Drug Enforcement Administration's statistics show that almost two-thirds of all drug seizures occur along the Southwest border.
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Drug trafficking affects not only those who live in the States along the border, but all Americans. The National Institute on Drug Abuse estimates that illegal drugs account for $110 billion in expenses and revenue each year in the United States. Furthermore, the Office of National Drug Control Policy estimates that 50,000 drug-related deaths occur annually.
The increase in trafficking along the U.S.-Mexico border not only has burdened law enforcement agencies protecting the border but also has had a significant impact on the Federal court system. Today, courts along the border handle an unprecedented number of cases, a number that could never have been predicted 5 years ago. Because of this, I am concerned that prosecutors may give less attention to cases of lower level drug smuggling that would certainly be prosecuted in any other judicial district outside the Southwest border. This undermines the deterrent factor and, of course, encourages repeat offenders.
Today, we will hear from four witnesses who know first hand the problems caused by the increase in drug smuggling along the Southwest border. They will testify about steps the Federal Government can take to reduce drug trafficking and ensure that law enforcement resources along the border are adequate.
That concludes my opening statement, and I will recognize the gentleman from Virginia for his.
Mr. SCOTT OF VIRGINIA. Thank you, Mr. Chairman, and I am pleased to have the opportunity to learn through this hearing about the problem of drug trafficking on the Southwest border and what is being done about it and what more needs to be done. I am aware that in recent years, this area has become a major port of entry for importation of illegal drugs such as cocaine, marijuana, heroin, methamphetamine and others into this country. And while I believe there is much room for debate over what the most effective means may be, clearly, anyone in the area where illegal drugs are streaming across the border need to look at the program from a local impact first and then engage in larger debates about what can be done about drug trafficking.
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In the local situation such as the Southwest border, we clearly have to apply effective law enforcement strategies to keep the problems associated with drug trafficking from getting worse in the immediate area. In the general context of illegal drug distribution and use, we need to do what is most effective, and because of that, we must be cognizant of other strategies of dealing with drug abuse.
We know one strategy is prevention and drug rehabilitation. We have results in a number of well-documented studies showing how much more effective drug treatment is as compared to tougher or more law enforcement in reducing drug abuse. One study in California, for example, showed that drug rehabilitation is so effective that it reduced not only drug abuse but also health care costs, welfare and crime. Specifically, that study showed that the State saved $7 for every dollar that it spent in drug treatment, because it was so effective in the other areas as well as drug abuse.
Yet, we spend billions of new dollars on law enforcement efforts without any increase in funds for doing those strategies which have been proven to be more effective. Putting an additional $1.6 billion into the Colombian drug interdiction effort while ignoring the long list of those who are waiting to get drug treatment is a typical example of this approach.
While I think we ought to look at doing what we can do to alleviate the distress on communities directly impacted by the massive drug trafficking efforts such as we are experiencing on the Southwest border, we also have to look at other proven abuse prevention and rehabilitation programs if we are ever going to get control over the drug abuse problem. But today, Mr. Chairman, I look forward to the testimony from the witnesses.
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Mr. SMITH. Thank you, Mr. Scott.
I also want to recognize two other members who have just joined us. They are the gentleman from North Carolina, Mr. Coble, and the gentleman from Arkansas, Mr. Hutchinson. And do you all have an opening statement? The gentleman from North Carolina?
Mr. COBLE. Thank you, Mr. Chairman. I have no prepared statement, Mr. Chairman, but I will commend you and the gentleman from Virginia for having staged this hearing. I said, Mr. Chairman, 15 years ago that it is the belief that the trafficking of illegal drugs and the abuse of illegal drugs has the potential to bring our country to its knees. That was 15 years ago. I hope we have a better handle on it now. I think we do. But it is by no means resolved, and I think hearings such as this serve to illuminate the problems—we have a panel of experts in this field, and I look forward to hearing their testimony.
I have two other hearings simultaneously conducted, so if you and Mr. Scott will cut me some slack, I may have to leave here before the end of this one. Thank you, Mr. Chairman.
Mr. SMITH. Thank you, Mr. Coble.
Mr. Hutchinson?
Mr. HUTCHINSON. Thank you, Mr. Chairman. I just want to thank you for holding this hearing and to remark that in looking at the major corridors in the United States, obviously, the Southwest border region is critical to our efforts to slow the flow of drugs coming into our country. I just recently returned from Colombia, Venezuela and Ecuador looking at the impact of our Plan Colombia. Obviously, it is a difficult and daunting task that we all face. I think it is a good implementation, important to securing democracy in that region. Whenever you look at the flow of drugs coming in, if we can slow it down at that point, at the source where it is being grown, I think we will hear today the difficulties of the Southwest border—we have a porous country as far as points of entry. And so, we have got to have a multifaceted approach to this. And what we are doing in Colombia makes a difference; what we are doing on the Southwest border is important.
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I do hope that we will hear some success stories today. You know, the American public, particularly after the movie Traffic, has a cynical attitude about what we are doing, and we do this year after year after year, and I believe there are success stories to tell, and I just want to encourage in advance that we need to let the public know not only the needs that are out there but the good that is being done. And so, I hope that you all will keep that in mind as you present your testimony. I look forward to it.
Thank you, Mr. Chairman.
Mr. SMITH. Thank you, Mr. Hutchinson.
We have also been joined by the gentlewoman from Texas, Ms. Jackson Lee, and do you have opening remarks?
Ms. JACKSON LEE. I thank you, Mr. Chairman. I would ask that the entire statement be submitted into the record and ask unanimous consent to do that.
Mr. SMITH. Without objection, so ordered.
Ms. JACKSON LEE. Thank you very much. I would simply like to acknowledge an appreciation for the presence of these gentlemen in this hearing. I would, however, note that I am not sure if art follows reality or reality art. I am not sure if Traffic has gotten the attention of the American public. We have been studying this issue, particularly those of us who live in Texas, those of us on the Judiciary Committee, for a very long time, and I would offer to say, though I will remain open, I certainly think that it is important to have a comprehensive discussion on the border concerns dealing with illegal drug problems.
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I do think that we must, for the sake of openness and inclusiveness, note that treatment is equally a prominent role or has an equally prominent role to play. As I said, I am not sure if art follows reality or vice versa, but it is well-known that all of the enforcement that you may have is not the only solution to our problem.
In addition, I would note that I am very interested in whether the increase of funds also comports with the increase of court capacity in terms of getting these cases tried. Are we getting the tip of the iceberg, or are we actually going to the source? I need to be convinced of that. And then, as I indicated, Mr. Chairman, I hope that even though we are the crime subcommittee that we will realize that this problem has to be a major, comprehensive national effort, because we are repeatedly reviewing and having hearings on the drug war, and the question is have we even begun?
So I look forward to hearing from the witness who is here this morning, and Mr. Chairman, I would also say that it might be worth our while to actually have a field hearing looking at some of the particular operations that are being represented here today.
I conclude by simply thanking those who are engaged in this effort. My words are not without appreciating the jeopardy that you put yourselves in and that of the many others who have done such an able job, a committed job, for their country, and my inquiry today will be focusing on the reality of whether we are succeeding, and if we are not, what do we need to do to succeed, and how do we help people who are without hope and are addicted in a manner that seems to create this need and this supply source, the supply source and the need for it?
Page 13 PREV PAGE TOP OF DOCSo I thank the gentleman, and I yield back the balance of my time.
[The prepared statement of Ms. Jackson Lee follows:]
PREPARED STATEMENT OF THE HONORABLE SHEILA JACKSON LEE, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF TEXAS
Thank you Chairman Smith and Ranking Member Scott for convening this critical hearing before the Subcommittee on Crime regarding drug trafficking on the southern border. While we are focusing so much on courts and enforcement, with such a caseload, I hope we also hear some discussion about the broader solutions that concern drug trafficking.
According to the Drug Enforcement Administration (DEA), the ever-increasing legitimate cross-border traffic and commerce between the U.S. and Mexico border has grown. Several international organized crime groups have established elaborate smuggling infrastructures on both sides of the border, which has made the Southwest border the smuggling corridor of preference for flow of marijuana, cocaine, heroin, and methathetamine. Recent evidence indicates, apparently, that drug trafficking organizations have grown even more powerful. This hearing will examine not only the increased drug trafficking, but also the effects that the increase has on the safety of the surrounding communities and the burden placed on the judicial districts along the border.
There is little question that organized crime syndicates in Mexico have grown significantly more powerful and wealthy over the past six years. Organized drug crime has become particularly harmful along the U.S.—Mexico border and many U.S. cities, including the major metropolitan cities.
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The concentration of law enforcement counter-drug activities as part of the HIDTA and SBI programs has produced record important numbers of federal prosecutions in the last several years. Consequently, the five federal district court whose combined jurisdictions include the entire southwest border now handle 27% of all federal court criminal filings in the United States. The other 73% of federal criminal filings are spread among 89 other judicial districts. Since 1994, drug cases filed in the border courts have more than doubled from 2,864 to 6,116 in 2000, and all criminal cases filed has increased by 161%. During this same time period, unfortunately, there has only been a 12% increase in the number of federal district judgeships in areas encompassing the border courts. Accordingly, more funds are surely needed to given to the courts.
If we put this much emphasis on law enforcement along the border, Mr. Chairman, when will provide real solutions for the communities? Providing additional funds for growing caseloads is only part of the story.
As it appears to be more of a ''field hearing'' in a Washington type hearing as opposed to a hearing to address the drug problem in general, we have not sought to expand the scope of the hearing and discussion to a comprehensive border approach of addressing the illegal drug problem in this country. Such an approach would include a witness to discuss demand side strategies such as drug treatment and other alternatives to incarceration, and the development of social support systems for moving addicted persons to more healthy lives. These kinds of issues cannot be simply dismissed when talking about the rampant drug trade problem in this country in terms of enforcement.
Page 15 PREV PAGE TOP OF DOCIf you increase funds for enforcement, you must increase capacity of courts to do the work. As the Representative from the 18th Congressional District of Texas, I am concerned with the range of issues that relate to drug trafficking but the demand side cannot be simply excluded. Surely, we must all wonder what the effect of drug trafficking organizations in general have within our communities.
Mr. SMITH. Thank you, Ms. Jackson Lee.
Once again, we welcome our panel of not just witnesses today but experts in their own right and first hand observers of the problem that we are here to discuss. Let me introduce our panelists. Donnie R. Marshall is the administrator of the Drug Enforcement Administration. Mr. Marshall began his career in law enforcement in 1969 as a special agent with the Bureau of Narcotics and Dangerous Drugs, a predecessor agency of the DEA. He is a member of the executive committee of the International Association of Chiefs of Police, serving as chairman of their Narcotics and Dangerous Drugs Committee. Mr. Marshall received his bachelor of science degree from Stephen F. Austin State University.
John C. Varrone is the assistant commissioner for the Office of Investigations of the United States Customs Service. Mr. Varrone began his law enforcement career in 1977 as a Customs patrol officer, and he has served as the Customs representative to the Office of National Drug Control Policy, special agent in charge of Customs' New York office and executive director of domestic operations for the East Coast. Mr. Varrone received a bachelor of science degree and a master's in public administration from the John Jay College of Criminal Justice.
Mike Scott is the chief of the Criminal Law Enforcement Division of the Texas Department of Public Safety, a position that he has held since 1996. Chief Scott began his law enforcement service as a Highway Patrol officer in 1974. He has risen through the ranks and has served as a narcotics investigator and commander of their Narcotics Service. He is chairman of the executive board of the Houston High-Intensity Drug Trafficking Area and former president of the National Alliance of State Drug Enforcement Agencies. He received his bachelors degree in law enforcement and police sciences from Sam Houston State University.
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Lastly, the Honorable Royal Furgeson is the United States District Judge for the Western District of Texas, a position he has held since 1994. Prior to his appointment, Judge Furgeson practiced law in El Paso, Texas for 25 years. Judge Furgeson is a decorated Vietnam War veteran; a past president of the El Paso Bar Association and currently serves on several boards and foundations. He graduated from Texas Tech University and the University of Texas law school.
I don't know if it was intentional, but I notice that three of you all have connections to Texas universities, and that gives you added credibility. [Laughter.]
Mr. SMITH. Let us begin, if we may, Mr. Marshall, with your testimony.
STATEMENT OF DONNIE R. MARSHALL, ADMINISTRATOR, DRUG ENFORCEMENT ADMINISTRATION
Mr. MARSHALL. Good morning, Chairman Smith, Ranking Member Scott and all the subcommittee members. I appreciate the invitation to be here this morning, and on behalf of all of the very dedicated and professional men and women of DEA, I want to thank the entire subcommittee for your outstanding support for drug law enforcement and for law enforcement in general over the years, and thanks to each of you for your comments and your presence here to look at this pressing issue in our society today.
I have submitted a written statement for the record, and I would like to briefly summarize that if I could. The hearing on Southwest border drug trafficking is certainly a very timely hearing, because it is safe to say that the majority of drugs entering this country right now come across that Southwest border. I believe, Mr. Chairman, you said almost two-thirds. I believe our statistics show 62 or 63 percent coming across that Southwest border.
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Also, Mexico-based drug traffickers are one of the major if not the major force in illegal drug trafficking market in the entire United States today. These organizations are very wealthy. They are very violent. They are corrupting public and private institutions. They are involved in the distribution of all four of the major drugs: heroin, cocaine, methamphetamine and marijuana, and further, they operate in markets in virtually all parts of the United States.
Now, the Mexico-based drug traffickers were in business when I began my law enforcement career in Texas about 30 years ago, but they became a predominant force in the market within the last decade primarily as a result of law enforcement successes in the Southeastern United States and against the Colombian cartels. Now, these Mexico-based organizations now do the dirty work for the Colombian organizations throughout the country in more and more U.S. markets.
Over the last 5 years, we at DEA have increased our special agent staffing in Southwest border divisions by about 25 percent, and we have almost doubled our funding to the Southwest border areas. We have also increased staffing in other parts of the country which are affected by the Mexico drug trafficking organizations, because we believe that in attacking these Mexico-based organizations, we have to act against them both at the border and by building cases backward from places in drug markets like Chicago or New York, New Jersey, Des Moines, Iowa, even Rocky Mount, North Carolina and other places throughout the U.S.
We have increased our staffing in our Special Operations Division, which plays a major role in coordinating national investigations, and many of those focus against the Mexico-based organizations. We have increased our intelligence support to the high-intensity drug trafficking area intelligence centers. Those are another key to cooperative interagency investigations, and we have done 16 deployments of our mobile enforcement teams to Southwest border areas.
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Now, U.S. law enforcement over the last several years has really had a lot of successes against cells of these Mexico-based organizations which operate here in the United States. Working together, DEA and Customs and State and local agencies like the Texas DPS and others have taken out these U.S. cells of Mexico-based organizations time and time and time again, and I believe that law enforcement has made a difference. The drug situation, I am convinced, would be far worse in this country without the cooperative law enforcement efforts along the Southwest border and indeed throughout the country.
What we haven't been able to do with equal success, though, is to apprehend the command and control figures of these drug trafficking organizations, the people that control the drug trade from Mexico. And since we are never going to be able to completely shut off the flow across the border, I believe that the key to success here lies in destroying the trafficking organizations by arresting, extraditing and sending to U.S. prisons those leaders or the kingpins who operate so freely just out of our reach on the other side of the border.
And in most cases, we know who those leaders are. We know how their organizations operate. And in many of the cases, we even have those kingpins indicted in the United States. Now, I have believed for quite some time now that extradition of these Mexico drug kingpins is a prerequisite to real success against this Southwest border and Mexico-based drug trafficking organization problem. That action would remove those people from their own arena, their own sphere of influence, where they continue to bribe and intimidate and corrupt and even continue to run their drug organizations, sometimes actually from prison cells there.
Extradition worked in Colombia against the Medellin Cartel. It worked in Thailand against the heroin kingpins, and it is an essential tool that we need in order to successfully address the problem with the Mexico organizations. Now, the new administration in Mexico, President Fox, has said personally that corruption and drugs are his top two priorities. He and others have spoken favorably about extradition, and we look forward to working with that new administration in Mexico.
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But in the meantime, we have to continue to attack these drug organizations, the cells, that are operating here in the United States, and as I said, we have done that very successfully time after time. We are making a difference. We will continue to make a difference. And I thank you again for the opportunity to be here. I thank you for your interest, and I will be happy to take questions at the appropriate time.
[The prepared statement of Mr. Marshall follows:]
PREPARED STATEMENT OF DONNIE R. MARSHALL, ADMINISTRATOR, DRUG ENFORCEMENT ADMINISTRATION
Good Morning Chairman Smith, Ranking Member Scott, and other distinguished members of the Subcommittee. I am pleased to have this opportunity to appear before you today for the purpose of discussing our continuing efforts to address issues and concerns associated with Drug Trafficking on the Southwest Border. As always, I would first like to preface my remarks by thanking the Subcommittee for its unwavering support of the men and women of the Drug Enforcement Administration (DEA) and overall support of drug law enforcement.
The border that joins the United States to Mexico is currently an extremely porous part of the nation's periphery. In Fiscal Year (FY) 2000, 293 million people, 89 million cars, 4.5 million trucks, and 572,583 rail cars entered the United States from Mexico. Unfortunately, the growing volume of commercial and pedestrian traffic that plays an integral role in our nation's economy creates an infinite number of opportunities for drug trafficking organizations to introduce their illegal goods into the commerce of the United States. Illegal drugs are hidden in all modes of conveyances, including the compartments of cars and trucks, and the bodies and baggage of pedestrians. Some organizations may employ couriers who cross the desert in armed pack trains, or who act as human ''mules'' by strapping the drugs onto their bodies. The means by which illegal drugs enter the United States range from extremely sophisticated concealment methods to simply tossing the drug laden package over border fences to be whisked away on foot or by vehicle. Drug trafficking organizations also utilize boats and ships to position their stash of drugs close to the border for eventual transfer to the United States.
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Illicit drugs are smuggled in record levels into the United States via the 2,000-mile U.S./Mexico border. Over the past few years, Mexican based trafficking organizations have succeeded in establishing themselves as the preeminent poly-drug traffickers of the world, using our shared border to smuggle illicit drugs into the United States. These organizations present an increasing threat to the national security of this country, with voluminous amount of drugs, violent crime, and the associated corruption of public officials in Mexico. Mexico is the largest transshipment point of South American cocaine destined for the United States, and 65% of this cocaine reaches American cities via the U.S./Mexico border. Mexico also remains a major source country for heroin and marijuana, and many of these Mexican based trafficking organizations are utilized by Colombian Cartels to transship drugs destined for the United States.
ASSESSING THE THREAT: THE ROLE OF THE U.S./MEXICO BORDER IN THE DRUG TRADE
The drug threat presented by the U.S./Mexico Border is fairly consistent with the national drug threat, and to a certain extent, defines the overall drug threat against our nation. Clearly, the most distinguishable threat is the transformation and emergence of Mexican based trafficking organizations, whose activities now reach the highest echelons of the cocaine trade. Previously limited to marijuana and Mexican heroin smuggling, Mexican based groups have expanded and profited by maintaining a mutually beneficial relationship with Colombian based traffickers.
The U.S./Mexico Border continues to be the preferred corridor to smuggle cocaine, black tar heroin, methamphetamine, and marijuana into the United States. Overland smuggling constitutes a primary threat by secreting among the millions of pedestrians, cars, and trucks that the U.S. Customs Service (USCS) estimates cross the 39 legitimate crossing points from Mexico. There are 24 ports of entry (POEs) at the border as well as 15 additional crossing points. Some of these POEs include multiple crossing points. Preliminary El Paso Intelligence Center (EPIC) statistics indicate that smuggling levels remained high: in CY-2000, authorities seized 17,660 kilograms of cocaine, 619 kilograms of heroin, 1,645 kilograms of methamphetamine, and 998,180 kilograms of marijuana along the U.S./Mexico Border.
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These recent trends illustrate the vulnerability of the U.S./Mexico Border to Colombian and Mexican based trafficking organizations intent on introducing drugs into the United States market:
Cocaine is primarily transported from South America by vessel to the West Coast of Mexico and, to a lesser extent, the Yucatan peninsula, which is situated in the southeast portion of Mexico adjacent to the Gulf of Mexico. The use of vessels to transport bulk shipments of cocaine represents a departure from the use of such modes of transportation as private aircraft and trucks utilized by drug transporters over the past two decades. From Mexico, bulk shipments of cocaine are then trucked to the United States, oftentimes secreted in produce and other perishable shipments.
Mexican black tar heroin is being smuggled into the United States in larger quantities than in the past; multi-kilogram seizures of heroin are becoming increasingly commonplace.
South American heroin is transported by courier on commercial airlines or by private aircraft from South America to Mexico, and then by commercial airline or by private or commercial vehicle to the United States.
The DEA Tijuana Resident Office (TJRO) reported that 13 methamphetamine labs had been seized in Baja, California in Fiscal Year 2001 as compared with three (3) seizures in Fiscal Year 2000.
MDMA is being smuggled into Mexico for ultimate transshipment to the United States.
Page 22 PREV PAGE TOP OF DOCOn February 26, 2001, U.S. Customs and DEA investigated the discovery of a 25-foot tunnel that took advantage of drainage lines that connect the U.S. and Mexico. A total of 375 kilograms of cocaine were recovered as a result of this effort.
COCAINE TRAFFICKING ACROSS THE U.S./MEXICO BORDER
Through the 1980s, most of the cocaine that entered the United States did so through the Caribbean and South Florida. Increased enforcement and interdiction efforts, however, forced traffickers to shift the majority of their smuggling operations to Mexico, a move that led DEA and other Federal agencies to mobilize along the U.S./Mexico Border. According to a recent interagency intelligence assessment, approximately 65 percent of the cocaine smuggled into the United States in 2000 crossed the U.S./Mexico Border.
Colombian based organizations rely on Mexican based groups in locations such as Guadalajara, Jurez, Matamoros, Sinaloa, and Tijuana to convey their cocaine into the United States. Mexican trafficking organizations have established themselves as transportation specialists for smuggling drugs across the U.S./Mexico Border. Frequently, these trafficking organizations are comprised of poly drug smugglers who transport marijuana, methamphetamine, and heroin in addition to cocaine.
Over the past decade, Colombian based drug lords and Mexican based trafficking organizations have entered into a symbiotic relationship that has resulted in the Mexican based traffickers playing an increasing role in the cocaine trade. Under this arrangement, Mexican based traffickers often receive shipments of cocaine directly from Colombian based organizations, and contract with the source to deliver a portion of the shipment to a contact of the Colombian based network operating in the United States. The Mexican based traffickers are allowed to keep the balance of the cocaine shipment as payment for their services, transporting the shipment to Mexican-controlled wholesale distribution networks that principally operate in the Western United States.
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By the mid-1990s, Mexican based transportation groups were receiving up to half of each cocaine shipment they smuggled into the United States on behalf of the Colombian based traffickers. By relinquishing a portion of the cocaine destined for the U.S. market to Mexican based drug organizations, as opposed to attempting to unilaterally control every aspect of importation and distribution, Colombian based drug lords radically changed the role and sphere of influence of Mexican based trafficking organizations in the cocaine trade. In doing so, the Colombian based traffickers have minimized their risk of exposure to U.S. law enforcement authorities, and provided Mexican based traffickers with a valuable source of revenue and domestic customers.
As a consequence of this development, traffickers operating from Mexico now control a substantial proportion of wholesale cocaine distribution throughout the Western and Midwestern United States. Distribution of multi-ton quantities of cocaine once dominated by the Colombia-based drug traffickers is now controlled by trafficking groups from Mexico in cities such as Chicago, Dallas, Denver, Houston, Los Angeles, Phoenix, San Diego, San Francisco, and Seattle. In addition to cocaine transportation, some drug trafficking groups operating from Mexico appear to offer a range of services, including wholesale cocaine distribution and money laundering for Colombian clients, and direct delivery to wholesale-level customers on behalf of the major Colombian based cocaine groups.
Routes and General Methods
Over the past two decades, cocaine was primarily moved by air and land into Mexico from Colombia. During the late 1980s and early 1990s, traffickers used large commercial aircraft, such as 727's and 737's, to move cocaine from South America to Mexico. Currently, maritime vessels are the most frequent method used to transport bulk shipments of cocaine to Mexico for ultimate distribution in the United States. Colombian based traffickers utilize fishing vessels to move cocaine usually to the West Coast of Mexico, and, to a lesser extent, the Yucatan peninsula. The cocaine is then off-loaded to ''go-fast'' watercraft for final delivery to shore. Once secured on land, the drug shipments are consolidated for overland movement to the U.S./Mexico Border.
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Traffickers continue to use trucking routes through Central America and Mexico to the U.S./Mexico Border. Cocaine shipments transported through Mexico or Central America are generally moved overland to staging sites in or near northern Mexico, although intelligence suggests that small aircraft may play a role in moving some cocaine to the border area. At these staging sites, the cocaine is broken down into smaller loads for smuggling across the U.S./Mexico border.
Three of the four primary cocaine importation points within the United States are located along the U.S./Mexico Border in Arizona, Southern California, and Texas. Cross-border cocaine shipments generally are smuggled across the U.S./Mexico border in concealed compartments within cars, trucks, and recreation vehicles, or commingled with legitimate tractor-trailer cargo. Typically, the land vehicles are driven across the U.S./Mexico Border, and then either left in parking lots for subsequent pick-up, or driven directly to storage sites in the United States. Using this method, traffickers are able to shroud their illegal activities in the tremendous numbers of people and vehicles crossing the U.S./Mexico Border. These cocaine shipments typically consist of 20 to 50 kilogram loads secreted in concealed compartments that are primarily located under floorboards and/or in gas tanks of passenger cars, pickup trucks, and vans. Larger quantities, however, have also been seized. For example, in October, 2001,109 kilograms of cocaine were seized at a U.S. Immigration and Naturalization Service (INS) checkpoint in Falfurrias, Texas. The cocaine was found inside boxes onboard a tractor-trailer, commingled with a shipment of tee shirts.
Cocaine also is carried across the U.S.-Mexico border by couriers known as mules, who cross into the United States either legally through U.S./Mexico Border ports of entry, or illegally through undesignated points along the border. The couriers typically carry small, kilogram quantities of cocaine, thus minimizing the losses incurred by the courier's controller in the event of robbery, theft, or law enforcement intervention.
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HEROIN TRAFFICKING ACROSS THE U.S./MEXICO BORDER
The U.S./Mexico Border is a significant transit point to the U.S. heroin market, not only for the Mexican black tar and brown heroin that dominate the markets west of the Mississippi River, but increasingly for South American heroin destined for the primary markets in the Northeast. Moreover, Nigerian and Southeast Asia based traffickers have been known to move opiate/heroin products across the U.S./Mexico Border.
Mexican Heroin
Mexican Black tar and brown heroin has been a threat to the United States for decades. It is produced, smuggled, and distributed by poly-drug trafficking groups, many of which have been in operation for more than 20 years. Mexican based heroin distributors operating within the United States have historically been Mexican nationals with familial and/or geographical ties to the States of Durango, Michoacan, Nuevo Leon, and Sinoloa.
Mexican heroin primarily is smuggled overland and across the U.S./Mexico Border. Traffickers take advantage of easy border access and store bulk quantities of heroin in Mexico, where the perceived risk of discovery and seizure is low. When a transaction is arranged, the contracted amount, usually 1 to 2 kilograms, is smuggled into the United States, frequently by illegal aliens and migrant workers. By keeping quantities small, traffickers hope to minimize the risk of losing a significant quantity of heroin in a single seizure. Even large poly-drug Mexican organizations, which smuggle multi-ton quantities of cocaine and marijuana, generally limit smuggling of Mexican heroin into the United States to kilogram and smaller amounts. Nevertheless, trafficking organizations employing this ''piecemeal'' strategy are capable of regularly smuggling significant quantities of heroin into the United States.
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Recent intelligence indicates that some heroin traffickers are smuggling 5 to 30 kilograms of Mexican heroin in tar and powder form from the interior of Mexico, representing a departure from the previous practice of Mexican based traffickers, who smuggled heroin into the United States in 1–2 kilogram amounts.
As recently as January 2, 2001, 92 pounds of black tar heroin was seized by the U.S. Customs Service in Del Rio, Texas. In December, 2000, the U.S. Customs Service seized 59 pounds of black tar heroin at the Laredo port-of-entry. The U.S. Customs Service also reported several large seizures of black tar heroin at Arizona ports-of-entry. On October 3, 2000, for example, U.S. Customs Service Inspectors seized 101 pounds at the San Luis port-of-entry. This seizure ranks as one of the largest ever made along the U.S./Mexico Border.
Once heroin is smuggled into the United States, transportation is arranged to metropolitan areas in the western and southwestern states with sizeable Hispanic populations. Mexican heroin has also been transported to primary markets in Chicago, Denver, and St. Louis. Periodically, Mexican traffickers have attempted to find markets for black tar heroin in East Coast cities such as Boston and Atlanta. However, this effort at market expansion has, for the most part, met with failure. Although recent DEA cases have involved Mexican black tar heroin trafficking groups operating east of the Mississippi River, there has been no successful, long-term penetration of the East Coast heroin market by organizations selling Mexican-produced heroin.
South American Heroin
Page 27 PREV PAGE TOP OF DOCThe availability of South American heroin, produced almost exclusively in Colombia, has increased dramatically in the Eastern United States since 1993. Despite having relatively limited production capacity and relying on unsophisticated smuggling techniques, traffickers of South American heroin have had a substantial impact on the U.S. market. The traffic of South American heroin has been characterized by the production of modest quantities of the drug in small laboratories in Colombia, the smuggling of heroin in quantities of 500 grams to 1 kilogram by numerous couriers aboard commercial airlines, and distribution of the drug through traditional retail outlets in northeastern cities, primarily New York City, Newark, Boston, and Philadelphia.
In response to increased drug law enforcement presence at eastern ports of entry, some South American based heroin traffickers have sought out alternative routes. Recent seizures in 2000 and 2001 reflect an increasing use of Mexico to smuggle South American heroin into the United States. In February 2001, for example, two separate seizures of South American heroin, totaling 4.9 kilograms, were made at the airport in Tijuana, Mexico.
METHAMPHETAMINE TRAFFICKING ACROSS THE U.S./MEXICO BORDER
Over the last decade, the methamphetamine trafficking and abuse situation in the United States changed dramatically. In the mid-1990s, methamphetamine trafficking and abuse increased in the United States, primarily in the West and Midwest. In 1997, this trend started to spread, to a lesser extent, to the Southeast. The entry of Mexico-based trafficking organizations into the methamphetamine trade contributed to this resurgence.
Historically, outlaw motorcycle gangs and many independent dealers dominated methamphetamine manufacturing and trafficking. Although independent trafficking groups continue to produce methamphetamine, in 1994, Mexican national drug trafficking organizations operating in California and Mexico began to take control of the production and distribution of methamphetamine in the United States. From their experience in the trafficking of cocaine, heroin, and marijuana, the Mexican organizations already had well established transportation routes.
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The entree of Mexican traffickers into the methamphetamine production and distribution trade in the early 1990s resulted in a significant increase in high-purity supplies of the drug.
In 1994, Mexican national drug trafficking organizations operating out of Mexico and California began to take control of the production and distribution of the methamphetamine in the United States. What was once controlled by independent, regionalized outlaw motorcycle gangs was taken over by major Mexican organizations and independent operators based in Mexico and California. Mexican national trafficking organizations now dominate wholesale methamphetamine trafficking, using large-scale laboratories based in Mexico and the western and southwestern United States. Outlaw motorcycle gangs are still active in methamphetamine production, but do not produce the large quantities that are distributed by Mexican groups.
In the early to mid-1990s, Mexican organizations had ready access to precursor chemicals on the international market. These chemicals had fewer controls in Mexico and overseas than in the United States. The Mexican national organizations further developed existing international connections with chemical suppliers in Europe, Asia, and the Far East, and were able to obtain ton quantities of the necessary precursor chemicals, specifically bulk ephedrine and pseudoephedrine.
From their experience in the trafficking of cocaine, heroin and marijuana, the Mexican organizations already had well-established transportation routes. Initially offering inexpensive, high-purity methamphetamine, the Mexican organizations ultimately gained a foothold in the existing United States market and expanded their operations. Since they produced their own drug, they maintained greater control of the methamphetamine market and reaped greater profits than with the distribution of other drugs. It should be noted that high-purity methamphetamine produced by the Mexican groups, in combination with the marketing strategy of providing free samples, created new population of addicts.
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Until 1999, the methamphetamine problem was increasing at an alarming rate. International chemical control efforts, particularly the international ''letter of non-objection'' program enacted in 1995, reduced the supply of those chemicals needed to produce high-quality methamphetamine. As a result, the national purity level for methamphetamine, as well as amphetamine, has gone down dramatically. The average purity of methamphetamine exhibits seized by DEA dropped from 71.9 percent in 1994 to 30.7 percent in 1999, rising slightly to 34.6 percent in 2000. Emergency room mentions and overdose deaths involving methamphetamine show an analogous decrease.
With the success of the international efforts to control the flow of bulk ephedrine and pseudoephedrine, such as bi-lateral meetings and the letter of non-objection program, Mexican traffickers turned to tableted forms of the precursors in the U.S. In 1997 and 1998, the vast majority of methamphetamine laboratories operated by Mexican organizations that were seized in California obtained their precursor chemicals from sources in the United States. The Mexican organizations obtained their precursors from chemical wholesalers, rogue chemical companies, and back door/blackmarket sales of large quantities of ephedrine/pseudoephedrine tablets from unscrupulous retail and convenience store operators.
MARIJUANA TRAFFICKING ACROSS THE U.S./MEXICO BORDER
Drug trafficking organizations operating from Mexico have smuggled marijuana into the United States for over 20 years and are responsible for supplying most of the foreign marijuana available in the United States. Virtually all the marijuana smuggled into the United States, whether grown in Mexico or shipped through Mexico from lesser sources such as Central America, is smuggled across the U.S./Mexico Border.
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Drug trafficking organizations employ a wide range of methods to transport the marijuana. The most common method is to smuggle marijuana in bulk quantities by truck and smaller quantities in vehicle tires, fuel tanks, seats, or false compartments. Traffickers use various vehicles to cross POEs: commercial vehicles, private automobiles, pickup trucks, vans, mobile homes, and horse trailers. Marijuana also is hidden inside agricultural products, and is smuggled across the border by horse, raft, and backpack. There are also sporadic reports of marijuana being smuggled via private aircraft; however, field offices do not consider border crossings by air to be a significant threat. They do report that private aircraft are used to smuggle marijuana up to the border on the Mexico side where large quantities of marijuana are stockpiled. The primary routes for marijuana, however, remain the overland routes.
MDMA TRAFFICKING ACROSS THE U.S./MEXICO BORDER
In the future, Mexico may increasingly be used as a transit zone for MDMA entering the United States. In the year 2000, several seizures of MDMA en route or in Mexico were reported. For example, in September, 2000, Dutch authorities seized a 1.25 million-tablet shipment of MDMA destined for Mexico. On November 20, 2000, approximately 64,000 Ecstasy pills were seized at the Mexico City Airport.
CONFRONTING THE THREAT: A BALANCED RESPONSE
Given the expanse of the U.S./Mexico Border, it is clear that no single agency can ''control'' the border or completely filter illegal drugs from the massive quantities of legitimate commercial cargo that flow across our borders each day. Accordingly, DEA continues to implement a balanced approach to confronting the drug threat posed by the criminal organizations exploiting our U.S./Mexico Border. The elements of this approach range from capitalizing on the latest advances in telecommunications technology, to our adhering to basic, time-honored principles of interagency cooperation.
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As evidenced by the following program descriptions, DEA is continuously working to generate innovative enforcement initiatives that will serve to immobilize the most sophisticated international drug trafficking organizations operating today.
DEA's strategic approach to targeting major drug trafficking organizations is to initiate and pursue high impact, intelligence-driven, multi-agency, multi-jurisdiction/multi-nation investigations that employ a combination of intelligence, investigative technology support, and the coordinated efforts of DEA and its federal, state, local and foreign law enforcement counterparts. By strategically and comprehensively targeting international command and control centers of drug syndicates based overseas in conjunction with their domestic entry and transshipment routes and local distribution points, DEA has been able to dismantle drug organizations in virtually all arenas. This approach requires DEA's foreign and domestic enforcement, intelligence, and technology elements to work collectively to transform isolated investigations into large-scale, multi-agency, multi-jurisdiction/multi-nation investigations.
In 1991, DEA established the Special Operations Division (SOD), a program that utilizes sophisticated technology to coordinate the investigative and intelligence resources of the DEA, the Federal Bureau of Investigation (FBI), the U.S. Customs Service (USCS), and the Internal Revenue Service (IRS) to target the command, control, and communications of major drug trafficking organizations. These investigations are also coordinated with attorneys from the Department of Justice's Narcotics and Dangerous Drugs section. SOD performs the following mission-critical functions:
Page 32 PREV PAGE TOP OF DOCProvides significant up-to-date, real-time intelligence to field investigators;
Coordinates and supports complex investigations and prosecutions of multi-agency, multi-jurisdiction, and international targets;
Focuses sophisticated Title III technology and assets against specific targets;
Manages and oversees DEA's contract linguist program and prioritizes use of limited Title III resources; and
Links and transforms isolated, local investigations conducted by single agencies into multi-agency, coordinated enforcement operations against multiple targets operating at regional, national, and international levels.
As the lead agency, DEA performs mission oversight responsibilities and provides the primary administrative services necessary to support the program's overall operations. DEA works closely with its partner agencies to set priorities and ensure a continued high degree of coordination and information sharing on supported investigations. SOD is currently staffed with a total of 228 personnel from DEA and other federal agencies. Of these personnel, 102 are DEA employees (48 Special Agents).
Southwest Border Initiative
One of DEA's primary functions is to coordinate the many drug investigations taking place along America's roughly 2,000-mile border with Mexico, an effort that involves literally thousands of federal, state and local law enforcement officers. As the threat from Mexican based poly-drug trafficking organizations continues to escalate, the workload steadily increases. Much of this increased workload is due to expansion by Mexican based traffickers into new geographic regions of the U.S., particularly the Midwest. Mexican based traffickers have become the world's preeminent drug traffickers, and their organizations are generally complex in nature and characterized by a high propensity for violence.
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To counter this threat, federal drug law enforcement has aggressively pursued drug trafficking along the U.S./Mexico border. Through a cooperative and coordinated enforcement effort, DEA, the FBI, U.S. Border Patrol, U.S. Attorney's Office, U.S. Customs Service, and state and local law enforcement agencies have worked together to reduce the amount of illicit drugs entering the United States through the U.S./Mexico Border. The Southwest Border Initiative is intended to counter drug activity by identifying, penetrating, disrupting, and dismantling the major Mexican and Colombian based drug trafficking organizations using the border to smuggle illegal drugs into the United States. The strategy is to attack major Mexican based trafficking organizations on both sides of the border simultaneously, employing enhanced intelligence and enforcement initiatives, and cooperative efforts with the Government of Mexico.
As indicated by the case examples below, the Southwest Border Initiative has built a record of success in targeting, immobilizing, and dismantling major drug trafficking organizations.
Operation Green Air (Marijuana) was a multi-jurisdictional investigation targeting a Mexican/Jamaican marijuana smuggling and distribution organization with ties to Traditional Organized Crime. The organization smuggled multi-thousand pound quantities of marijuana by trucks and other conveyances from Mexico through U.S. Ports of Entry in Southern California to warehouses in the greater Los Angeles area. Several corrupt warehouse employees shipped the marijuana via Federal Express to distribution cells on the East Coast. Operation Green Air culminated in April, 2000 with a nationwide takedown that resulted in the seizure of more than 15.25 tons of marijuana, $4,546,384 in U.S. currency, and the arrest of 106 individuals.
Page 34 PREV PAGE TOP OF DOCOperation Impunity II (Cocaine) was a multi-jurisdictional investigation targeting a Mexican drug trafficking organization responsible for the transportation and distribution of multi-hundred kilogram shipments of cocaine from Mexico to cities throughout the United States. This investigation targeted remnants of the Carrillo-Fuentes Organization and the Gulf Cartel Organization. Operation Impunity II culminated in December 2000 with a nationwide takedown that produced the seizure of 5,266 kilograms of cocaine, 9,325 pounds of marijuana, $9,663,265 in U.S. currency/assets, and the arrest of 141 individuals.
Operation Tar Pit (Heroin) was a multi-jurisdictional investigation targeting a Mexican heroin transportation and trafficking organization based in Tepic, Nayarit, Mexico. Primarily, this organization imported multi-kilogram quantities of black tar heroin from Mexico into the United States. The heroin was transported to the greater Los Angeles area and distributed to organization cell heads throughout the U.S., including San Diego, CA; Bakersfield, CA; Honolulu, HI; Portland, OR; Denver, CO; Cleveland, OH; Columbus, OH; Pittsburgh, PA; Phoenix, AZ; Yuma, AZ; Albuquerque, NM; and Charleston, WV. In June 2000, a multi-nation takedown was conducted against Operation Tar Pit targets that included the principal Mexican command and control members in Mexico; U.S. based cell heads, workers for each cell, and couriers. This investigation culminated in the seizure of 64 pounds of black tar heroin, 10 weapons, $304,450 in U.S. currency, and the arrest of 249 individuals.
Operation Mountain Express (Pseudoephedrine) was a DEA operation that targeted traffickers of the methamphetamine precursor, pseudoephedrine. Existing regulations allowed DEA registrants to obtain multi-ton quantities of tablet pseudoephedrine from gray-market importers. California-based Mexican production organizations took advantage of this fact by purchasing ton quantities of pseudoephedrine for use in methamphetamine production. Since January 2000, several multi-jurisdictional investigations targeting pseudoephedrine traffickers have been conducted. For the first time in U.S. drug law enforcement history, the illicit trafficking of pseudoephedrine was traced from bulk importers to rogue registrants and eventually to pseudoephedrine extraction laboratories. Operation Mountain Express resulted in the arrest of 189 individuals and the seizure of more than 12.5 tons of pseudoephedrine, 83 pounds of finished methamphetamine, $11,100,000 million in U.S. currency, and real property in excess of $1,000,000.
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Operation Gas Mask (Precursor Chemicals) is a recently completed investigation targeting a California based supplier of HCL gas to Mexican national methamphetamine production organizations. This investigation resulted in the seizure of 10 operational methamphetamine Super Labs, 5 pseudoephedrine extraction labs, 497 gallons of methamphetamine in solution, 140 pound of finished methamphetamine, and assets totaling $1.5 million. Additionally, Operation Gas Mask resulted in the arrest of 48 individuals including Mexican National laboratory operators, chemical brokers, the California based supplier of HCL gas and two suppliers of solvents and reagents.
Eduviko Garcia Organization (Mexican Methamphetamine) Recently, DEA concluded an investigation which targeted the Eduviko Garcia methamphetamine organization. Garcia received methamphetamine through a Nuevo Laredo, Mexico based facilitator who in turn received methamphetamine from a variety of Mexican based sources. Methamphetamine seized in the Garcia investigation has been tied to Francisco Zarragoza, a methamphetamine source based in Guadalajara, Mexico. The Garcia investigation resulted in enforcement actions in the states of Texas, Indiana, Washington, North Carolina, Oklahoma, Kansas and Kentucky and resulted in the seizure of 53 pounds of methamphetamine, 18 kilograms of cocaine, and the arrest of 50 individuals.
Other Enforcement Operations
Highway interdiction is central to drug enforcement, especially on the U.S./Mexico Border, since a vast number of seizures occur at checkpoint stops within 150 miles of the border in Arizona, California, New Mexico, and Texas. In addition to their drug and money seizures, state, local, and federal agencies generate valuable intelligence on trafficking patterns, concealment methods, and cell membership and structure. Presently, there are drug interdiction programs promoted and monitored by the El Paso Intelligence Center (EPIC), but carried out by state and local law enforcement officials. The operations are carried out along the highways and interstates most often used by trafficking organizations to move illegal drugs north and east, and illicit money south and west.
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With DEA support, state and local highway officers are able to execute controlled deliveries of the drug shipments that they seize, thereby expanding the scope of their own investigations. These programs consist of three elements: training, real-time communication, and analytical support. With support from EPIC, training schools in support of these programs are designed and delivered to state and local highway officers across the nation. The training and implementation of these programs are conducted in accordance with the Attorney General's guidelines for Fairness in Law Enforcement, and prohibit the use of race, ethnicity or nationality as the sole basis for initiating law enforcement interdiction of suspected drug traffickers.
High Intensity Drug Trafficking Area (HIDTA) Task Forces
The mission of ONDCP's High Intensity Drug Trafficking Area (HIDTA) program is to reduce drug trafficking activities in the most critical areas of the country, thereby lessening the impact of these areas on other regions of the country. The HIDTA program strengthens America's drug control efforts by intensifying the impact of drug control agencies through the development of partnerships between federal, state, and local drug control agencies in designated regions and by creating effective systems for them to synchronize their efforts.
There are 28 established HIDTA's and 43 Investigative Support Centers (ISC's). with EPIC serving as the ''national hub'' for the HIDTA ISC's. EPIC has re-organized to implement this mission and has created a new HIDTA Coordination Unit that serves has the focal point for EPIC's relationship with the HIDTA ISC's. DEA recently approved the placement of 14 supervisory Intelligence Analyst positions in selected HIDTA ISC's and has proposed additional Intelligence Analyst positions in the FY 2002 budget to further enhance intelligence support to the HIDTA program.
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Since the initiation of the program in 1990, the HIDTA program has expanded to 28 areas around the country, including one HIDTA that is comprised of five partnerships along the U.S./Mexico Border. These HIDTA Southwest Border Partnerships are located in San Diego, Tucson, Las Cruces, W. Texas, and San Antonio, and address important local issues such as methamphetamine trafficking, commercial interdiction, and intelligence collection.
With a strong infusion of DEA intelligence analytical resources, guidance, and expertise, the HIDTA intelligence program has become part of the nationwide effort to develop effective mechanisms for the collection and sharing of intelligence information that can be applied in the enforcement arena.
Intelligence Operations
The intelligence collection process is critical to the interdiction of drugs. Each time we dismantle an organization, DEA gains vital intelligence about the organization to use, both to further additional investigative efforts, and to increase the accuracy of intelligence information provided to the interdiction operations conducted by other law enforcement agencies. The domestic and international aspects of trafficking organizations are inextricably woven together. U.S. law enforcement must be able to successfully attack the command and control functions of these international drug trafficking syndicates on all front if ultimate success in diminishing the operational effectiveness of these organizations is to be achieved.
Collocation of Law Enforcement Assets
Page 38 PREV PAGE TOP OF DOCIn addition to conducting numerous joint investigations with the United States Customs Service (USCS), DEA is working to optimize the operational efficiency and cost-effectiveness of U.S./Mexico Border operations conducted with other DOJ components, such as the Federal Bureau of Investigation (FBI) and Immigration and Naturalization Service (INS). Public Law 106–553, which was signed by the President on December 12, 2000, states, ''DEA is also directed to better coordinate its operations with other Federal Agencies, including INS and FBI, along the U.S./Mexico Border, and to pursue co-location of offices whereas practical.''
A Memorandum of Understanding (MOU) has been drafted and is currently pending endorsement by administrative program managers from DEA, FBI, and INS. By adhering to the provisions of this MOU, the enforcement components of the Justice Department will coordinate the review of their respective facility lease terms, and determine compatible opportunities for collocation.
CONCLUSION:
Drug trafficking organizations operating along the U.S./Mexico Border which are controlled by Mexican based kingpins continue to be one of the greatest threats to communities across this great nation. As a result of their alliances with Colombian organizations, Mexico based drug trafficking organizations increasingly have become organized, specialized and efficient, with individual components steadily consolidating power and control over well-defined areas of responsibility and geographic strongholds. The power and influence of these organizations is pervasive, and continues to expand to new markets across the United States.
The DEA is deeply committed to intensifying our efforts to identify, target, arrest and incapacitate the leadership of these criminal drug trafficking organizations. The combined investigations of DEA, FBI, the U.S. Customs Service and members of other federal, state, and local police departments continue to result in the seizure of hundreds of tons of drugs, hundreds of millions of dollars in drug proceeds, and the indictments of significant drug traffickers, and the dismantling of the command and control elements of their organizations.
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Cooperative investigations will continue to serve to send a strong message to all drug traffickers that the U.S. law enforcement communities will not sit idle as these organizations threaten the welfare of our citizens and the security of our towns and cities.
The principal leaders of major drug trafficking organizations fear the threat of extradition to the United States more than any other law enforcement or judicial tool. Extradition of significant traffickers ensures that those responsible for the command and control of illicit activities, including drug smuggling and money laundering, will be held totally accountable for their actions and serve a prison sentence commensurate with their crimes.
In Mexico, the newly installed Fox Administration has given every indication of their intention to work as equal partners with American drug law enforcement, and we look forward to our future endeavors with optimism. Hopefully, these new endeavors will include the successful extradition of major Mexican based traffickers to the United States.
Mr. Chairman, thank you for the opportunity to appear before the Subcommittee today. I would be happy to answer any questions that you or other members of the Subcommittee may have at the appropriate time.
Mr. SMITH. Thank you, Mr. Marshall.
Mr. Varrone?
STATEMENT OF JOHN C. VARRONE, ASSISTANT COMMISSIONER, OFFICE OF INVESTIGATIONS, UNITED STATES CUSTOMS SERVICE
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Mr. VARRONE. Thank you, Mr. Chairman and members of the subcommittee. I thank you for the opportunity to appear on this important issue and to discuss the efforts of the United States Customs Service in combatting the drug threat along the Southwest border. Mr. Chairman, with your concurrence, I have a detailed statement that I would like to submit for the record.
Before presenting specifics on the Southwest border, I would like to first give the committee a sense of the overall challenges faced by U.S. Customs. Nationally, on a typical day, Customs personnel process an average of 1.3 million travellers and 410,000 conveyances. As a result, Customs averages 65 arrests, 118 narcotics seizures, 11 currency seizures and 128 other enforcement seizures, ranging from weapons to counterfeit merchandise to child pornography. This translates into the daily seizure of approximately 4,302 pounds of narcotics and $560,000 in U.S. currency.
Notwithstanding Customs' other enforcement responsibilities, drug interdiction and investigation is, without a doubt, our highest priority, and the Southwest border is the front line for this ongoing challenge. The windows of opportunity for would-be drug smugglers along the Southwest border are staggering. Specifically, a total of 293 million people, 89 million automobile and 4.5 million trucks crossed the Southwest border in fiscal year 2000.
To combat this enormous challenge, Customs dedicates approximately 4,000 inspectors, agents, analysts, pilots and marine enforcement officers.
Individual violators as well as complex criminal organizations operating on both sides of the border have been engaged in drug trafficking and drug-related money laundering for many years. Historically, Southwest border drug trafficking organizations principally smuggled marijuana and black tar heroin into the United States. Based upon successful law enforcement operations in the Caribbean and South Florida, Colombian-based cocaine traffickers expanded their drug smuggling operations to utilize the Southwest border.
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The interagency cocaine assessment indicates that upwards of 50 percent, as Mr. Marshall said, up to approximately 65 percent of all the cocaine destined for the United States, we believe, enters via the Southwest border. Multi-agency investigative and seizure activity indicates that cocaine is being transferred from Colombian freighters and fishing vessels in the Eastern Pacific to go-fast boats destined for Mexico. This cocaine is ultimately smuggled into the United States via the Southwest border. Customs, along with DEA, FBI, Coast Guard and State and local law enforcement officers have been involved in the seizure of approximately 78 metric tons of cocaine in the Eastern Pacific during the last two fiscal years.
Sophisticated, well-financed and well-organized drug transportation groups are utilizing a wide variety of modes of conveyance and methods of concealment along the Southwest border. Customs records indicate that 79 percent of all Customs narcotics seizures in fiscal year 2000 occurred at the Southwest border. Marijuana seizures are up 12 percent, totalling 1.1 million pounds and accounted for 86 percent of the marijuana seized nationally by Customs. Thirty-five percent of the methamphetamine seized by Customs was identified as being produced in Mexico.
Our Southwest border enforcement efforts focus on the following areas: improved coordination of Federal interdiction efforts; utilization of advanced technology; effective intelligence gathering and multi-agency investigative operations. These collective enforcement operations have proven to be the most effective way to combat the threat.
To address the problem of drug smuggling, Customs has developed an investigative bridge strategy. The strategy involves greater integration of the Customs enforcement disciplines, which would be our investigative, intelligence, interdiction and air-marine operations; electronic surveillance operations; increased development of confidential sources of information; and the placement of additional U.S. Customs agents and intelligence personnel with the Drug Enforcement Administration in Mexico.
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In addition, Customs participated in numerous multi-agency initiatives and task forces which complement the strategy, to include the Border Coordination Initiative; the high-intensity drug trafficking area; organized crime drug enforcement task forces; Special Operations Division and, most recently, the bulk cache HIFCA or high-risk money laundering and financial crimes area.
A very recent drug enforcement success which demonstrates both the threat of what our collective law enforcement efforts are challenged by occurred on February 26, 2001, when special agents from Customs and DEA executed a search warrant at a residence in Nogales, Arizona. The search warrant resulted in the discovery of a tunnel leading to a local drainage system. This drainage system was accessible from the international border. A search of the residence led to the seizure of approximately 840 pounds of cocaine. I believe we have a chart here, sir, in the room showing that photo right there to my right.
From an outbound currency threat perspective, Mexico remains one of the top 10 countries of concerns for the United States Customs Service. To combat the illicit movement of drug proceeds from Mexico, Customs routinely develops and employs currency interdiction initiatives. For example, last year, Customs developed and implemented two anti-money laundering operations called Power Play and Pressure Point. These initiatives resulted in the seizure of more than $16 million and 286 arrests, demonstrating our commitment to the interdiction of outbound drug proceeds.
To improve our drug interdiction efforts, Customs is aggressively pursuing a variety of technologies designed to complement one another and present a layered defense to smuggling attempts. These include mobile and fixed x-ray and gamma ray inspection systems for use in processing large trucks, cargo containers and rail cars. We currently have 36 of these systems deployed in the field.
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Customs also continues to train canine teams at our national training academy to assist enforcement efforts in processing passengers, vehicles and cargo. We currently have 543 canine teams nationally, 366 of which are deployed along the Southwest border. Our aviation assets continue to support Mexican authorities as part of Operation Halcon. In this initiative, Customs air assets and air crews assist Mexican law enforcement in airborne drug interdiction activities.
On behalf of the men and women of the United States Customs Service who are engaged on a daily basis in the counternarcotics activities along the Southwest border, I thank you and your committee for all your support, Mr. Chairman, and the opportunity to briefly describe our challenges, operations and successes. At the appropriate time, I would be glad to answer any questions, sir.
[The prepared statement of Mr. Varrone follows:]
PREPARED STATEMENT OF JOHN C. VARRONE, ASSISTANT COMMISSIONER, OFFICE OF INVESTIGATIONS, UNITED STATES CUSTOMS SERVICE
Mr. Chairman and Members of the Subcommittee, thank you for this opportunity to appear before the committee on this important issue and to discuss the efforts of the U.S. Customs Service to combat the drug threat along the Southwest Border (SWB).
Before presenting specifics on the SWB, I would first like to give the Committee a sense of the overall challenges faced by Customs. On a typical day in Fiscal Year 2000, Customs personnel processed an average of 1.3 million travelers and 410,000 conveyances. As a result, Customs averaged 65 arrests, 118 narcotics seizures, 11 currency seizures, and 128 other enforcement seizures ranging from munitions and arms to commercial merchandise and child pornography. This translates into the daily seizure of approximately 4,302 pounds of narcotics and $560,000 in U.S. currency.
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In Fiscal 2000, Customs seized approximately 1.5 million pounds of illegal narcotics, conducted 39,000 investigations, effected more than 24,765 arrests, and seized over $587 million in currency and ill-gotten assets.
Customs is responsible for enforcing more than 600 Federal statutes on behalf of 60 Federal agencies. In addition to seizing narcotics and dismantling smuggling organizations, Customs enforcement actions protect domestic manufacturing industries from unfair foreign competition, and help ensure the health and safety of the American public. Through our Strategic Investigations and Anti-terrorism initiatives, Customs continuously fights the battle to prevent proliferant countries, terrorist groups, and criminal organizations from obtaining sensitive and controlled commodities, such as Weapons of Mass Destruction. Customs is also a recognized leader in the investigation of cyberspace-related violations, including child pornography, stolen art and antiquities and intellectual property rights violations.
Notwithstanding Customs' other enforcement responsibilities, drug interdiction and investigation is without a doubt our highest priority, and the SWB is a frontline in this ongoing challenge. The windows of opportunities for would-be drug smugglers along the SWB are staggering. A total of 293 million people, 89 million automobiles, and 4.5 million trucks crossed the SWB in Fiscal Year 2000. These numbers climb each year as trade increases with our southern neighbor.
Individual violators, as well as complex criminal organizations operating on both sides of the border have been engaged in drug trafficking and drug related money laundering for many years. Historically, the drug trafficking organizations primarily smuggled marijuana and black tar heroin into the U.S. Based upon successful law enforcement pressure in the Caribbean and South Florida, Colombia-based cocaine traffickers expanded their drug smuggling operations to utilize the SWB to import their drugs. Intelligence information indicates that more than 50 percent of the cocaine available in the U.S. enters the country via the SWB.
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Several factors make Mexico an attractive location for drug trafficking: the 2,000-mile land-border with the United States that is comprised of difficult terrain, making it hard to regulate; the powerful criminal organizations that exploit weaknesses in Mexico's law enforcement and judicial systems; and, the rural and mountainous expanses throughout the country that are ideal for the cultivation, processing and manufacturing of illegal drugs.
Sophisticated, well-financed and well-organized drug transportation groups are utilizing a wide variety of modes of conveyance and methods of concealment along the SWB. Customs enforcement records indicate that 79% of all Customs narcotics seizures in FY00 occurred at the southwest border. Marijuana seizures were up 12% to 1.1 million pounds, accounting for 86% of the marijuana seized nationally by Customs. Approximately 14 percent of the heroin seized in the United States comes from Mexico. An independent study indicates that Mexico is the source of 29 percent of the heroin used in the United States today. Thirty-five percent of the methamphetamine seized by Customs was identified as having been produced in Mexico. Mexico-based organizations have become the most significant distributors of methamphetamine in the U.S.
Recent seizure activity in fiscal years 1999 and 2000 indicates that cocaine is being transferred from Colombian freighters/fishing vessels in the Eastern Pacific (EastPac) to ''go-fast'' boats destined for Mexico. This cocaine is ultimately smuggled into the U.S. via the SWB. Customs has been involved in the seizure of approximately 78 metric tons of cocaine in the EastPac during the last two fiscal years.
While the total size of our workforce has remained relatively stable in recent years, Customs has been able to reinforce locations on the SWB through the re-direction of resources. These hardworking men and women face an ever-increasing tide of people, vehicles, trucks, trains, planes and cargo.
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Our SWB efforts focus on the following areas: improved coordination of federal interdiction efforts; utilization of advanced technology; effective intelligence gathering; and investigative operations. Our actions in these areas have proven to be a more effective response to the drug trafficking organizations that threaten the SWB of the United States.
Smuggling organizations operating along the southern border are abundant, innovative and resilient. Successful dismantling of these organizations requires a comprehensive strategy, one that interfaces the functions and expertise of all enforcement disciplines. Customs has developed the ''Investigative Bridge Strategy'' to address this problem. It involves:
The integration of the Customs enforcement disciplines, investigations, intelligence, interdiction and air/marine operations in an effort to exploit the interrelationship of drug transportation and distribution. By building an ''Investigative Bridge'' between border smuggling activity and criminal organizations located inland, further dismantling of these groups is possible.
The bridge is built when a drug seizure at a Port of Entry (POE) leads to the identification of an organization's inland command and control center and/or additional co-conspirators. Similarly, a bridge is also built when the investigation of an organization develops information leading to a drug interdiction at the border. Through this focus on integration and cohesion, the Investigative Bridge Strategy maximizes enforcement results.
Controlled deliveries and Title III wire-tap investigations are an integral part of the strategy. These tools have proven to be extremely effective in identifying members of these organizations, locating narcotic consolidation locations, and uncovering persuasive evidence of criminal activity.
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Controlled deliveries and cold convoys require close cooperation between inspectors, agents, and local law enforcement, at the interdiction site, along delivery routes, and at the ultimate destination. Timely notification and response by agents, coupled with a seamless hand-off are necessary elements to ensure success of the operation and a ''building of the bridge''.
Develop confidential sources of information and intelligence.
The placement of additional U.S. Customs resources in Mexico.
The following enforcement successes demonstrate both the threat and what is being done utilizing our investigative strategy:
On February 26, 2001, special agents from Customs and DEA executed a search warrant at a residence in Nogales, AZ, resulting in the discovery of a tunnel leading to the local drainage system. This drainage system is accessible from the international border. A search of the residence led to the seizure of approximately 840 pounds of cocaine.
On March 5, 2001, Customs Special Agents from the Office of the Resident Agent in Charge, Charlotte, SC, arrested four members of a Mexican smuggling organization and seized approximately 8,125 pounds of marijuana discovered in an Allied Van Lines moving truck. In addition, special agents seized $1,411,568 in U.S currency.
On March 22, 2001, an investigation conducted by the Office of the Resident Agent in Charge, Brownsville, TX, resulted in the seizure of approximately 1,450 pounds of marijuana discovered on a train inbound from Mexico. Eight Mexican males were arrested in connection with this seizure.
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Between March 15 and March 17, 2001, the Customs Service, Border Patrol and state/local law enforcement conducted a joint operation targeting smuggling activity at Falcon Lake located near Falcon Heights, TX. The operation culminated in the seizure of approximately 8,783 pounds of marijuana that had been smuggled by vessel from Mexico.
Numerous initiatives and task forces exist which embrace the concept of cooperative efforts to enhance our SWB interdiction and investigative efforts, and Customs actively participates whenever possible. Some specific examples of participation include:
The Border Coordination Initiative (BCI) ensures comprehensive sharing of border intelligence and the coordination of enforcement operations between Customs and the Immigration and Naturalization Service (INS).
The High Intensity Drug Trafficking Area (HIDTA) program concentrates Federal, state, and local law enforcement efforts in 28 high-threat areas, such as the Southwest border.
The Organized Crime Drug Enforcement Task Force (OCDETF) focuses combined Federal, state, and local law enforcement efforts on significant, high-level drug trafficking and money laundering organizations.
The Special Operations Division, a multi agency initiative led by the Department of Justice, acts as a Headquarters based case coordination program. This unit, comprised of investigators and analysts from Customs, DEA, FBI and IRS, has three sections which concentrate on SWB narcotics and money laundering activities.
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In the area of International Money Laundering, Customs has established the Money Laundering Coordination Center. This unit has been established to coordinate all Federal money laundering enforcement efforts, which have been mandated in the Treasury/Justice Money Laundering Strategy.
From an outbound currency threat perspective, Mexico remains one of the top ten countries of concern for the U.S. Customs Service. Intelligence indicates that large amounts of currency, in excess of tens of millions of dollars, continue to be smuggled out of the U.S. to Mexico.
Private vehicles have long been the dominant mode of choice for transporting illicit proceeds into Mexico. Outbound currency seizures (to include negotiable instruments) numbered over five hundred (500) for the years FY99 and FY00 at the southwest border ports of entry in which the majority were discovered within private vehicles. It is believed that Mexican transportation groups are also using other conveyances to move money to include possibly commercial trucks.
Mexico acts as a ''funnel'' for illicit currency destined for the Colombian trafficking organizations. Intelligence indicates that staging areas have been set up in many SWB locations to facilitate the consolidation and movement of money between the two countries.
To combat the illicit movement of drug proceeds to Mexico, Customs routinely develops and employs currency interdiction initiatives targeting identified currency smuggling trends. For example:
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In Fiscal Year 2000, Customs implemented Operation Powerplay, a six-week initiative that resulted in the seizure of $11,386,875 and 194 arrests. Of these funds, $3,074,456, or 27 percent, was destined for Mexico.
In FY 2001, Customs implemented Operation Pressure Point, a five-week initiative that took place in November and December. This initiative resulted in the seizure of $5,535,498 and 92 arrests. Of these funds, $1,217,810, or 22 percent, was destined for Mexico.
On March 28, 2000, the Departments of Treasury and Justice designated the Texas/Arizona borders with Mexico as a ''bulk cash'' High Intensity Money Laundering and Related Financial Crime Area (HIFCA). This HIFCA designation focuses not only on the geographic region, but on the system through which large volumes of currency (mainly derived from drug trafficking) is smuggled or moved across the border between the United States and Mexico.
As part of the Bulk Cash HIFCA, Customs is concentrating its efforts not only on the transborder movement of currency involving Mexico, but also on Mexican money remitters and currency exchange houses, or casa de cambios, facilitating this activity.
On January 12, 2000, the governments of the United States and Mexico entered into a written agreement detailing the procedures to share information on reports of the cross border movement of currency. This agreement allows for the sharing of Reports of International Transportation of Currency and Monetary Instruments filed with the U.S. Customs Service, and Mexico's companion form, Article 9.
Page 51 PREV PAGE TOP OF DOCMexico recently changed its reporting regulations to require the reporting of $10,000 U.S. equivalent into or out of Mexico to mirror the United States' currency reporting regulations. Originally, Mexico required only the reporting of $20,000 U.S. equivalent being imported into Mexico.
Customs seized the following quantities of unreported currency bound for Mexico via the SWB:
Fiscal Year 1998 $14,466,186
Fiscal Year 1999 $16,542,761
Fiscal Year 2000 $17,089,183
Some specific examples of enforcement related seizures at the SWB are as follows:
On March 15, 2001, the U.S. Customs San Diego Financial Task Force conducted a joint southbound operation monitoring vehicle traffic exiting the United States at the San Ysidro, CA Port of Entry. During this operation, a vehicle exam resulted in the seizure of $449,905 in US currency.
On July 31, 2000, during U.S. Customs Operation Powerplay, a vehicle occupied by two Guatemalan citizens was detained while attempting to exit the United States into the Republic of Mexico. A search of the vehicle resulted in the identification of a false compartment found to contain $499,640.00 in United States currency. Both individuals were arrested.
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Critical to all law enforcement operations is the routine sharing of tactical intelligence. Intelligence Collection and Analysis Teams (ICATs) have been created throughout the country to analyze smuggling trends and concealment methods, and to expeditiously disseminate intelligence to all border ports and Border Patrol checkpoints. The ICATs are comprised of Customs Special Agents, Customs Inspectors, INS agents, INS analysts, the US Border Patrol and the California National Guard.
Analysis by the ICATs and the intelligence community has been successful in identifying a multitude of smuggling and concealment trends. These include:
Current intelligence from all sources continues to point towards a highly diverse and constantly evolving smuggling environment that poses major threats all along the border. These threats continue to suggest strong pressure by major trafficking groups using all forms of transportation and all available means.
Drugs are being smuggling by a wide array of drug transportation groups that are using all major conveyances and concealment methods including cars, trucks, vans, oversize vehicles, rail cars, private aircraft and vessels, and pedestrians. A continuing problem that Customs faces is the use of sophisticated tunnels along the border.
One of the continuing trends is the proliferation of smaller, more tightly knit organizations that smuggle 100–150 kilos at a time in a rapid fashion. These groups are subsequently storing the drugs in warehouses and other locations, in preparation for the movement of large quantities to the interior of the United States for distribution.
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Once a sufficient quantity of drugs is acquired, the groups then move the illegal drugs to major urban areas in the interior of the United States for distribution. These areas include Chicago, Los Angeles, Miami, and New York.
Like the criminal drug trafficking groups from the United States and Colombia that preceded them, organized crime syndicates from Mexico are extremely violent and routinely employ intimidation and the corruption of public officials to achieve their objectives. Much of the drug-related violence that has become commonplace in Mexico has spilled over to communities within the United States.
Traffickers are attempting to design compartments that are impervious to detection. This includes identifying specific conveyances that are difficult for Customs to inspect and pose unique problems from an operational standpoint. Customs also has determined that traffickers along the border are using specific types of trailers called ''low boy trailers'', which due to their structure are difficult to examine, may pose problems for some x-ray machines, and are not easily searched by canine units. Recently, a meeting was held in El Paso with officials from railroad firms that conduct cross border trade. These firms indicated they are experiencing a large increase in false compartments discovered in railroad cars used in cross border trade.
The development of new and innovative technology has risen to the forefront of Customs' counter drug efforts. Customs is currently on the second year of a Five-Year Technology Acquisition Plan for the Southern Tier and continues to increase the smugglers risk of detection across the Southern Tier from Los Angeles, California, to San Juan, Puerto Rico. Without this across-the-frontier approach, our enforcement efforts in one area will be mitigated by the smugglers' ability to rapidly displace their criminal activity to an area where the threat of detection is lower.
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Some of our efforts in the field of non-intrusive technology include:
Aggressively pursuing a variety of technologies designed to complement one another and present a layered defense to smuggling attempts. Such attempts are the direct result of increased funding that began in Fiscal Year 1999.
We are currently employing 36 pieces of Non-Intrusive Inspection (NII) equipment, including:
eight (8) mobile truck x-ray systems
nine (9) fixed-site truck systems
sixteen (16) relocatable Vehicle and Cargo Inspection Systems (VACIS)
two (2) mobile truck VACIS
one rail VACIS. This rail VACIS is the first system of its kind.
We are continuing the development of a higher energy x-ray system to examine sea containers as they arrive on our shores, as well as a system to exam large palletized cargo in the air, sea, and land environments.
Customs officers also have a wide range of hand-held tools at their disposal, including:
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284 Portable Contraband Detectors (a.k.a. Busters)
135 Optical Fiber Scopes
67 Laser Range Finders
Without consistent funding to operate and maintain these technologies (large and small), benefits will be short-lived.
To assist our enforcement efforts, Customs continues to train Narcotics Detector Dogs at our national training academy. We currently have 543 K-9 teams operating in the field, 368 of which are assigned to the SWB.
In terms of making our land border operations more efficient at narcotics detection, while facilitating the flow of traffic, we have implemented several new programs. In conjunction with the Immigration and Naturalization Service, Customs has installed 236 license plate readers (LPR).
By automating the entry of the license plate data, the LPRs allow the inspecting officer to spend more time examining and questioning the vehicle and its occupants. LPRs have the capability to count the number of vehicles, identify stolen cars, and identify those that are positive IBIS and National Crime Information Center (NCIC) hits. LPRs will also allow Customs and INS to gather intelligence through data mining in order to enhance both inbound and outbound targeting.
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The Customs Air and Marine Interdiction Division (AMID) plays a valuable role in interdiction efforts along the SWB. Customs continues to see short landings of drug-laden aircraft in Northern Mexico. To combat this threat, Customs has positioned Citation aircraft in Hermosillo and Monterrey, Mexico, to assist Mexican ground forces in the apprehension of these aircraft and their crews.
Some of the programs currently administered by AMID are:
The Air and Marine Interdiction Coordination Center (AMICC). AMICC, located in Riverside, California, provides command, control, communications and intelligence for counter-narcotics and designated homeland defense operations. It utilizes a wide variety of civilian and military radar sites, aerostats, airborne reconnaissance aircraft and other detection assets to provide 24-hour, seamless radar surveillance along the entire southern tier of the U.S., Puerto Rico and into the Caribbean.
Training to improve coordination between U.S. and Mexican assets on Interceptor Operations.
AMID currently has two advisors assigned to the U.S. Embassy in Mexico to enhance in-country coordination, communication and safety.
A Mexican liaison has been assigned to the AMICC to further enhance coordination, communication and safety.
The Customs Service relies on the Tethered Aerostat Radar System (TARS), which is currently operated by the Department of Defense, to identify suspect aircraft and vessels inbound to the U.S. The DOD has recently reduced the system by 21% and plans to make another 38% reduction in the system in FY 2002.
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The answer to the narcotics smuggling challenge at the SWB border is effective coordination, joint planning and joint implementation. This is precisely what the Border Coordination Initiative (BCI) does and does effectively. The BCI is an approach to integrating the efforts of several of the U.S. Government's border law enforcement agencies. Customs and INS began BCI as a means of creating a seamless process of managing cargo and travelers at our nation's SWB. A process which incorporates the multitude of skills and expertise within each of our organizations, in order to more effectively interdict the flow of narcotics, illegal aliens and other contraband.
The structure of BCI is founded upon the officers at our frontlines. Their input and daily actions have always provided the basic building blocks for this initiative and continue to keep our efforts focused on those challenges presently facing us along the SWB. We have been able to build upon this information by establishing a solid foundation for the program through:
The establishment of an Office of Border Coordination, Co-Managed by a ''Border Coordinator'' from Customs and INS
Setting eight (8) priority areas for the field to focus on: Port Management, Investigations, Aviation/Marine Support, Intelligence, Communications, Technology, Integrity and Performance Measurement
Selecting national Co-Team Leaders from Customs and INS for each of these priority areas and requiring jointly prepared action plans from BCI field managers addressing these topics,
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Stressing Community involvement by providing and exchanging information with the trade and community groups relating to our enforcement effort.
Addressing the concerns of these groups regarding service and the movement of goods and people.
Eliminating conventional bureaucratic barriers between agencies in terms of equipment and technology sharing, joint enforcement efforts and procurement
Integrating local and state law enforcement entities into the national interdiction effort.
Establishing a scheduled, multi agency reporting system which tracks success, failures and support requests from all SWB areas
Providing funding in support of the innovative and creative means to apprehend violators of our nation's laws along the SWB
Providing overall coordination at and between ports of entry to address drug and alien smuggling.
On behalf of the men and women in Federal law enforcement who are engaged on a daily basis in counter-narcotics activities on the SWB, and specifically our U.S. Customs officers, I thank you and your committee for all your support, and the opportunity to present our enforcement activities and recent successes here today.
This concludes my remarks. I will be glad to answer any questions the Committee may have. Thank you.
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Mr. SMITH. Thank you, Mr. Varrone.
Mr. Scott?
STATEMENT OF MICHAEL D. SCOTT, CHIEF, CRIMINAL LAW ENFORCEMENT DIVISION, TEXAS DEPARTMENT OF PUBLIC SAFETY
Mr. SCOTT. Thank you, Mr. Chairman and members. I appreciate very much you holding these hearings today to discuss the problems of drug trafficking along the Southwest border. I realize also that there is a degree of disenchantment spreading throughout this country with the progress or perceived lack thereof with our drug control efforts. However, the drug problems facing this country are problems of morality mixed with socioeconomic and health issues, and I believe we will be fighting those problems for many years to come, but I applaud the committee for holding these hearings and for bringing attention to this problem.
In 1993, a former DEA administrator testified before Congress that in the late seventies, the majority of all cocaine entering this country entered through South Florida. He also testified that there was a great infusion of Federal resources into South Florida to address that problem. The result was to cut off the flow of cocaine through South Florida, but by the mid-1980's, Colombian drug traffickers had countered by developing a Mexican connection, and the flow of cocaine and other illegal drugs into the United States shifted from Florida to Mexico.
Mexican traffickers that were once known only as mules for the powerful Colombian cocaine cartels today are drug lords in their own rights. We have heard a lot of estimates this morning about the flow of cocaine across the border. My estimates are between 50 and 70 percent of cocaine entering this country comes across the Southwest border. More importantly, approximately 55 percent of that cocaine, we believe, enters in South Texas alone.
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Sixty-eight percent of the Border Patrol seizures along the Southwest border occur in Texas. It is an important thing, however, to note that the vast majority of the drugs crossing the Southwest border do not stay in the border region. These drugs are shipped across the country to places like Marietta, Georgia; Greensboro, North Carolina and Fort Smith, Arkansas, not to mention many other cities in this country. Suffice it to say that drugs smuggled into this country from Mexico ultimately flows into the streets and schools across the country.
Although many agencies at the Federal, State and local level have increased their resources along the border, I suggest that we have not seen an equivalent infusion of resources that were used to address the problem in South Florida in the seventies. The North American Free Trade Agreement, NAFTA, was passed in 1994 to facilitate open trade between the United States, Canada and Mexico. The approximately 365 million consumers in these North American countries are expected to benefit in many ways economically from NAFTA.
We in Texas share rich cultural, social and economic ties with our neighboring country of Mexico. Many citizens on each side of the border cross over to visit family members, to shop and to attend school. While I believe strongly that the economic benefits produced by the NAFTA concept are good for all three countries involved, it is clear that there have been some serious unintended or overlooked consequences of NAFTA.
The United States and Mexico share a 2,000-mile border. It is the busiest border in the world. In 1999, an estimated 295 million pedestrian, 88 million passenger vehicles and 4 million commercial trucks crossed our border from Mexico, and these numbers are only expected to increase. Texas has a 1,248-mile border with Mexico, and along that border, there are 10 ports of entry; 26 international bridges. In the year 2000, over 48 million passenger vehicles and 3.1 million commercial vehicles crossed our border. That is approximately 75 percent of all commercial traffic entering this country from Mexico crosses in Texas.
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U.S. Customs officials estimate that only 5 or 10 percent of the commercial trucks entering this country are subjected to any type of search or inspection. This is a prescription for failure. Mexican drug trafficking organizations have exploited our inability to inspect vehicles and pedestrians entering this country. They have purchased trucking companies and maquiladoras in Mexico in an effort to promulgate their illegal drug industry. It is critically important that with continued implementation of NAFTA, we must not overlook the need to improve methods for our inspection. There must be a balance between free trade and the undesirable consequences of little or no inspection on the trucks.
In spite of these overwhelming numbers, our interdiction efforts continue to outpace our ability to conduct followup investigations and to prosecute the violators. Simply interdicting drugs along the border is not the answer. Each interdiction case made by the Customs Service or the Border Patrol must be investigated. Oftentimes, DEA, because of a lack of resources, are forced to simply process the mules apprehended by the Customs agents or Border Patrolmen. Furthermore, the volume of drugs along the Southwest border has had significant impact on our State prosecutors as well as Federal prosecutors and the courts.
Over the past year, State prosecutors along the border have complained that handling smaller drug cases generated by the Federal officers have cost local taxpayers millions of dollars. I am not suggesting that additional funding is the only solution to this problem. However, appropriate levels of funding across the board in the areas of interdiction, investigation, p