Bring opiates into the country. Senator rob portman chairs this subcommittee hearing. This is two hours and 40 minutes. Thank you for being here. Talk about the work to combat the opiate epidemic that scooping our communities around the country. Last year we talked about opiate a related product abuse then buying illicit opiates over the internet and shipping them to the United States to the mail. The opiate crisis sadly continues to get worse, not better. Last month, the center for Disease Control reported more than 63000 americans died in 2016 from Drug Overdoses, those numbers increased in 2017. These steps are shocking. The number of deaths continue to grow. My home state of ohio were told recently is the second in the country in terms of overdose death. Heartbreaking. Increasingly, these are due to a synthetic heroin, illegal versions offense at all, a drug that is 50 100 times stronger than heroin. In ohio fat knowledge variations were involved in 60 of the Overdose Deaths last year. The number one killer in ohio. The mature door these purchased online from labs in china and then shipped to the United States through the mail. We will hear from the drug of Horsemen Agency today about that. Its shocking to people when they know its coming to the u. S. Mail system. Last night the subcommittee released a bipartisan report. Without objection, i will move the subcommittees report be read into the record. After initial 2017 hearing, we try to find out how easy it was to Purchase Online and how it was shipped to the United States. We discovered it was easy to do so. I had to do is search fentanyl for sale. That search returned hundreds of websites, many affiliated with chinese labs advertising chinese subjects. We sent emails asking questions about how to purchase and ship it to the United States. Sellers were quick to respond. The more ready to make a deal. For discounts for purchases tried to upsell us and something that is used as an elephant tranquilizer. It was as easy as buying any other product online. Our subcommittee never completed the purchase of drugs online. It was to risk of ask those insulin to dublin fat no in the delivery. But we did use Payment Information to determine if others were buying. And they were. We identify with a 500 payments to Online Sellers the more than 300 americans telling 200 30,000 dollars most over the last two years. Theres only six websites. And only one Payment System to identify some of the buyers. Theyre located in 43 states with individuals in my home state of ohio, florida also some of the most sellers. The map shows the concentration of where most were made. Thats also the report. We asked how they would ship them to us. Every one of them prefer to use the u. S. Postal service. They did not want to use private carriers like ups. They said they use Postal Service because chance of jokes getting seized was insignificant. Delivery was essentially guaranteed. Are able to track packages related to online purchases. We identified seven people out of 300 who died from fat nonrelated overdoses. One individual was a 49 year ohio and he spent about 2500 bucks. Received 25 packages over ten months. His autopsy confirmed he died from fat no intoxication weeks after he received a package. By analyzing more than 2 million lines of shipment data, we located three individuals in the United States are likely distributing. 120 incidences who sent a payment to china and then who received from one pennsylvania address. He was working with an online seller to transshipped drug purchases. Data review dedicated others who purchased items to make pills not surprising people ordering fat no online to sell. The prophet margins are staggering. The street value from just these websites translates to about 760 million youre working with authorities to make sure these drug dealers can be brought to justice. Our findings today sure the role advanced electronic data can play in fighting the opiate epidemic. We also need legislative changes. Last year the Postal Service only received about 36 of the more than 498 million packages coming in. 500 million packages here, only about 36 have advanced electronic data that allows us to identify the packages. So that 13 million came here with no data to target these for screening. We didnt know with regard to 318 line packages where it was going, who sent it, what was in it. This is a massive loophole undermining the safety and security of our country. The data we do get that we reviewed appears to be of questionable quality. Only 36 . Much of that is not helpful. At times data was nothing but vines and characters. Even when customs has the data the Postal Service fails to locate it about 20 of the time. So again electronic data at 36 . Much is not helpful. Even when they say we have a package that looks suspicious, 20 of the time they cant find the package and it gets through. We left with the federal governments policies and procedures are inadequate to ship illegal synthetic opiates into the United States. In contrast our Service Provides data on 90 of the packages it ships to form posts. 90 of what we send out we send electronic data. After september 11, 2001, the terrorist attacks on that day, collecting advanced data was notified as a priority. In 2002 we required private carriers for this data. It was left up to the discretion of the postmaster general of the Treasury Department with regard to the Postal Service. They were encouraged to do it and study but it was left up to their discretion. For more than a dozen years, nothing happened. And others to inspect packages which is like finding a needle in a haystack. To their credit, the Postal Service started a Pilot Program in late 2015. Two targets packages from china. Our investigation found a lack of planning, Different Missions of the agencies, and personality conflicts hampered the success of the program that was started. The Pilot Program started at jfk. Investigators were able to see that in action. Despite this he wrote that Pilot Programs allow them to put a positive spin on stopping opiates. Although both agreed it should be rolled off to all facilities barely started that after the may 2017 hearing. Glad they did it. We love the process was conveniently done just days ago. This is about a priority without having to hold this hearing. It shouldnt take this to get the government to do its job. One part of the solution is more data. Thats right we introduce the stop act. We currently have 29 cosponsors from both sides of the aisle. I know this report in here and will put pressure on us to take action. I want to thank senator carper and his staff for working with us. Theres more to be done to turn the tide of the addiction. Stephanie strikes from reaching our streets is a good start. As coauthor of the stop active focus my career in prevention, treatment, longerterm recovery. That is all important. But to keep this from coming into our communities is something we can a should do. The past week in ohio five overdosed and three died. Fat nonrelated overdoses. Officials issued an opioid advisory warning to the public big event to stay away from what was clearly a bad batch of opiates. How many more people have to die before this poison stops coming into our community . s before we take the steps so that theyre not delivered here in america. How many people have to die before this happens, yes there are in desperate need of reform and nobody has the more involved in that than senator carper. Its shocking that were unprepared to please the mail coming into our country. On a thank senator carper and his staff. I will turn it over to the Ranking Member. Thank you for your ongoing leadership on the tough and important issue facing our nation. Glad to be here with her staff. We Work Together, we are one. There is no space between us on this issue and others. You think are witnesses for joining us for the work you do and by the people who are your colleagues. This is also the result of a investigation. We need to do oversight. On something we all care deeply about. No state has been immune from the damage these drugs have cost to my home state of delaware. Is think delaware was a little town north of columbus. Terms out his entire state. This is an enormous challenge we face. Its no hands on deck moment. Requires in all of the above strategy. Its not enough to distill the symptoms of the problems. But also the root cause. We have to do both. According to the division of Forensic Science in my state or people dying from opiates every year. The last 222 people in 2016, 2,282,015, 216208 people. These are mothers and fathers, brothers and sisters, grandparents, all of the above. Last month Emergency Responders in our largest county where i live and raise her family were dispatched to a Drug Overdose every 80 minutes. Paramedics had administered no oxo, a drug that can reverse the effects to nearly 600 patients. Opiates are the leading cause of opiate deaths killing when 200,000 people in 2016. In may we heard testimony from officials from the Postal Service and customs and Border Patrol, the state department and experts and First Responders on the ground in ohio. Delaware, and elsewhere who grapple every day with the impact opiates are having on our communities. They told us how theyre getting in our communities through the mail and how theyre working to stop that. I left are very concerned. Our investigation shows that progress has been made but also that we have much more to do. The findings are alarming. That no one stronger synthetics are openly available for sale on the internet accessible to anyone who knows how to shop online. Once purchased the right primarily from china through the mail system. They often offer shipment via private carriers like fedex and ups. We have obtained key payments and shipping data to enable us to link Online Sellers to deaths on arrest all over the country. We found a major distributor in pennsylvania where delaware and gets most of his jokes. The mission has become more difficult as the number of Inbound International packages has skyrocketed. Then the children mentioned a needle in haystack. One thing we can do this make the new a big old haystack smelly. Need to do both. Postal service has nearly doubled to 500 million in 2017. Until recently forced to sit through a massive number packages from the Postal Service manually. Today, automation has improved the targeting packages but it is far from efficient and effective. Investigation revealed that a joint Service Pilot project suffered due to the agencys mission and lack of coordination and other agency conflicts. The full expansion into the other Processing Centers were delayed until this week. Despite the massive amounts of drugs coming into the country, the Postal Service targets a small number packages each day. As the report points out effort to get data and intercept opiates has not kept pace with the drugs that cross our borders. Unlike private carriers who control which enter their networks and can turn away customers. The Postal Service is required to deliver all the mail receives from a form post. This due to her membership in the upu. Measures people can send mail to friends and family overseas. The state department represents the upu proceedings. All they have made some progress obtaining better information through Bilateral Agreements, the state department has washed more than a decade is some for partners fought efforts require more information on interNational Packages. It is urgent that we Work Together to continue wrapping up the inspection efforts. In the Postal Service and state department speed up efforts to get them the data they need. Congress needs to ensure the Postal Service has resources it needs to be a stronger partner. Protecting and improving the mail system has been one of my biggest priorities on this committee. The Postal Service is vital to our economy. The place an Important Role in the fight against opiate epidemic as well. The enactment of this legislation will free up billions of dollars that the Postal Service can use to invest and also to shore up mail security. If we only focus on chasing drug shipments after they ventured the mail system, will only address the symptoms of this problem. We need to focus on root causes. We must address our countries demand for drugs. Healthcare plays a vital role. Medicate is a singles largest payer for Substance Abuse services. Many with the highest death rates use medicaid to expand treatment access. Need focus more making sure the Healthcare System has resource it needs to provide quality treatment to the separate. Its clear that we need to engage with china the biggest source of illicit opiates in the country to successfully disrupt the supply of fat known other drugs. We did Something Like this to obama with Cyber Security and hacking. Giving the success that had this administration should commit a similar effort to tackle this Public Health crisis. Reached out to terry branston, former governor of iowa to engage her embassy and her team in china to say this is a problem and you need to get your act together to help us and ultimately you. This reminds me about the challenges were discussing today. Theres no Silver Bullet that can solve this problem. We need leadership from the top. Last month the president established a Commission Charge was studying this epidemic. Despite these high profile moves, news reports suggest a couple of the commissions 56 recommendations have been implemented. We can do better. The office of National Drug policy has been charged with courting the federal governments drug response does not have a permanent directive. In a recent media reports indicate the presence upcoming budget will propose a 95 cut in the office of the drug control policy. The day will were gonna be critical for frontline agencies slifer to call on the president what appears to be the crisis this should be. Something we call the three cs. Communicate, compromise and collaborate. We need to embrace the truth receives as we fight this epidemic. Were doing that today. If we do that will make some progress close by saying this is all hands on deck. And all the above strategy thats needed. As well as we do in our jobs we know we can do better. Our goal is perfection and we can do better here. Thank you. Thank you. You mentioned the president ial commission on opiates. One was the enactment of the stop act we talked about to require this date in advance. If you have a statement i be happy to have you be heard now. Thank you for being here. Thank you for your leadership on this. My own nephew died of an overdose in january 2016. Its probably gotten to the point where theres very few americans have not been touched by some of his died of some kind of overdose. Its a complex problem. I want to thank you and your staff for preparing this meeting. Want to thank the witnesses. It is complex. Something we need to do one of the problems is scheduling these minute differences. There so many things we need to address. It starts with identifying the problem, defining it and highlighting hearings like this. I think everyone was involved. We talked to too many parents and grandparents and brothers and sisters have lost their beautiful sons and daughters. We have to do it we can. Thank you for your leadership. Thank you. Thank you to our panel. We have some great expertise here to talk through the issues and about how to stop this poison. Mr. Murphy previously served for three years as the u. S. Permanent represented in United Nations office in nairobi. Robert is with us, he was named Vice President in our Network Operations in april 2016 he oversees the Distribution Network including Network Design policies and logistics required to move the mail. He began his postal crew 33 years ago. We have todd was the assistant commissioner same to this position in 2015 and oversees more than 29000 employees including officers and agriculture specialists. He operates numerous programs. He began his career with u. S. Customs service in 1990. Great start. Miss with us and he serves as the acting Deputy Inspector general. He joins Inspector Generals Office in 2003 the previously served in both the United States secret service and in the air force office as a special agent. Daniel baldwin serves as a section she and the office of global enforcement. He supports tas global efforts he served in beijing, and has good experience in china. In 1991 he received his bachelor of science in criminal justice from the university of denver. Gregory is also with us. He has ever said about financial narcotics documents and benefit fraud in several targeting centers. Prior hes served as chief of staff to the u. S. Immigration and customs enforcement. Thank you, sir. Chairman portman, Ranking Member carper, members of the subcommittee, thank you for the invitation to appear before you today to discuss our efforts of increased availability of electronic dat for International Mail items. Upu is the my remarks will center on efforts underway within the body. A key moment is the use of the 2012 congress to amend the upu convention to inquire countries to adopt and implement Security Strategies that include the principle of complying with requirements for providing electronic advanced data. Developing the implementation measures for the happened been a top priority for delegations at meetings. Our efforts, include many hours by colleagues at upss do and department of Homeland Security are bearing fruit. In february of 2016. The npoc adopted regulations for the 2012 convention amendment, and also a rode road many for the regulations. The United States co chairs with india that oversees much of the work required to reach the road maps mildstones. These milestones include final adoption of the technical messaging standard for item level data and the poc methods goal when it approved a standard that is most recent meeting last october. In combination the two developments, the regulation . The standard, unable upu Member Companies to impose requireds for aed. Members must do so in a american consistent with the real world capability of the global postal network. The focus is now on building capacity. At the global level this entails building out other elements of the upu messaging and data flows. The work is progress egg will bell will only heal utility if they can collect at the dat. The needed investment in skills and technology happening and its been greatly accelerated by a sea change in attitudes member membership which has come to understand that other related date management and Communications Tools are essential to the future of the postal sector. Members have endont several initiatives aimed at positioning operators in developing countries to exchange. Over half of the upus Development Cooperation budget for the 2017 torn 20 period is devoted to a project aims to make Postal Services in developing countries operationally ready for ecommerce. This project has as one of its Key Performance indicators the goal of supporting 80 postal operators to be exchanging aed for flow for the end of 2020. In the end to the upu is implementing a second project focuses on security with an emphasis of capturing and transmitting aed. Participants, developing countries, are selffunding with money that was held in trust for them by the upu. The integrated product plan, orr ipp, which the most recent upu congress adopted in october of 2016. With strong u. S. Support, will also help accelerate the exchange. The ipps goal is to modernize the product can i ask you a favor . Im not very good on acronyms. Ups im pretty good on that. Fbi, pretty good on that. Dont use so manying a crow names. Actually say the word. Yes, sir. All right. Admonition for aberdeen else as well, okay . The within your five minutes. Universal postal union, the integrate it can i use upu . All right. Okay. The integrated product plans goal is to modernize the upus Product Offerings to better meet the changing needs of customer and supply chain customers. Phase one, which commenced in january 1 of this year facilitates the exchange of ae de advanced electronic data since one provision is a requirement for mail items containing goods to have a upu standard bar code label. Important work is being done but theres nor do. As senator kearner mentioned carper mentioned in his Opening Statement. All the they have stated goal of having all Postal Service with the ability to Exchange Item level data with the end of 2020. Theres a disbetween the technical ability and the realized able to collect and enter data. There are many challenges but we are optimistic and encouraged to see there is real, rapid progress at the country and the global levels. Although the work of enabling all country tom presentsively exchange the full range of aedy is a ongoing term undertaking were cost by 2020 well be receiving aed for most mail entering the country. Thank you, mr. Chairman, i look forward to answering questions. Thank you, mr. Cintron. Good morning, chairman portman, Ranking Member carper and members of the subcommittee. Thank you, chairman portman for calling this hearing. Im robert cintron, the Vice President and Network Operations for the United States Postal Service. I oversee the Postal Services national Distribution Network, including its operations at the International Service centers, known as iscs. Last may i testified before this subcommittee on our effort to combat opioids in the mail, highlighting the collection and receipt of advanced electronic data known at aed. Together with our federal Agency Partners were committed to aggressively and increasing aed for packages coming into the United States in order to improve the targeting and the elicit drugs and other contraband. In the past three years, the Postal Service has gone from receiving almost no aed on inpound shipments to receiving more than 40 as of december 2017. We are now testing data that will allow to us target more package volume from china. This data results in a significant increase in the amount of aed the Postal Service receives by the end of 2018. Since january 2017, the number of countries sending aed to the Postal Service has grown knock eight to 23, and includes china and other countries of interest. We have prioritized obtaining aed from the largest volume foreign postal operators, which collectively account for over 90 of all inbound volume. We now require aed on packages where rates are established under bilaterally negotiated arrange. S. We currently have Bilateral Agreements in place with postal operators in australia, canada, china, hong kong, and korea. Additionally, other foreign posts have entered into voluntary data sharing agreements to facilitate the exchange of aed, bringing the total to 56 countries. While the Postal Service and cbp have distinct possibilities they compliment our shared goal of fighting import addition of sin athletic opioids. In september the Postal Service and wbp completed a memorandum of understanding to solidify our interAgency Partnership, additionally, the program initiated at the new york isc to use inbound aed to facilitate more advanced targeting by cbp, has been expanded to all iscs. Over the last six months the Postal Service has provided hundreds of thousands of records per day to cbp and expand the number of countries and typeofpackages available for targeting. We have also implemented an automated process to identify targeted pieces requested by cbp. Additionally, we provided further training to isc employees to reinforce practitioner processes, for handling and presenting mail in accordance with cbp requirements as the postal satisfies continues to advance mail sorting technology, these successes will grow. To further improve the federal governments coordination of oversight over Inbound International items, the Postal Service, cbp, and the fda formalized an interagency work group. The gripes working on efforts to build capacity to provide aed, develop the technology, continue information sharing, provide Technical Assistance for legislation, and improve physical and it infrastructure. We also continue to work in close collaboration with our Law Enforcement branch, the Inspection Service. Which has seen significant improvements in its ability to seize fentanyl and synthetic opioids. From fiscal year 2016 through fiscal year 2017, the Inspection Service achieved a 375 increase in international par sells seizures and an 880 increase in domestic parcel seizures related to opioids. In conclusion, we share your concerns about Illegal Drugs and contraband entering the country through the mail and commercial carriers. The Postal Service has committed to taking all practical measures to ensure our nations mail security and provide the American Public the best, most Efficient Service possible. Again, thank you for this opportunity to testify, and i look forward to your questions. Thank you, mr. Cintron. Chairman portman, ranging members, distinguished member of the subcommittee, thank you for the opportunity to appear today to discuss the role of u. S. Customs customs and Border Protection in combating the flow of dangerous, illicit drugs into the country. As the ewan ford border secured agency of the United States, cbp is ha political role in the efforts to keep dangerous drugs from entering our community. We interdict drugs and other Dangerous Items at the ports of entry, including mail and express cure your facilities by leveraging targeting systems and Intelligence Driven strategies could using various time of detection technologypart over the the riskbased approach to enhance security. Since i last appeared before the full committee in april of 2016, cbp working with the Postal Service and Law Enforcement partners, has made strong progress in enhancing our enforcement capabilities capabir effectiveness in International Nail and suppress cure your environments but more must be done. Recent Bilateral Agreements regarding advanced electronic data between the u. S. Postal service and foreign postal operators have increased our ability to target high risk shipments. In april 2016 they received advanced electronic data from only eight countries. Today were receiving data from 23 countries we another six countried in testing. Currently cbp receiveds aed on over 40 of aye all international shamed withs and works continues to increase the volume and accuracy of the aed provided to the Postal Service. As the chairman abled, cbp has initiated Pilot Program in file may have gateway through the pilots cbm has enappearanced tayloring capabilities and worked with the Postal Service to ensure that every shipment slicked by cbp for examination is presented for inspection. Last summer, cbp and the Postal Service signed a memorandum of understanding aimed at increasing the level of advanced electronic dat while eye lining the inspection processes. In the past year, cbh increased our staffing at the six main International Mail facilities by 20 and all cbp narcotic detection k9s assigned to the mail few tilts, express cure your operations and International Airports have been trained to detect fentanyl,ed aing another detection capability of ports of entry. Once detected these substances must be positively identified. In the pga 18 months cbp deployed identification testing equipment so officers can quickly determine what the unknown substances are. The average fentanyl series our in the International Payment environment is 700 grands and arrives as an unknown powder. Cbp officers must have the Technology Enabling them to quickly and safely identify these unknown substances. Cbp has increased the availability of such testing equipment and is appreciative to congress for the recently passed interdict act which will allow to us add testing equipment and further strengthen enforce. Efforts. The mail and express cure your environments the fentanyl detectedded primarily arrives from china and is over 90 lure. Cbp has deployed the necessary personal equipment to safely inspect process the narcotics ns and deployed narcan so if theyre accidently exposed we can quickly administer these treatments to save their lives. And lastly, timely information sharing is critical the targeting and interdicting shes. Cbps National Targetingster collaborate on a daily basis, including hsi, dea, fbi, spellens community and the postal Inspection Service. These real estateships are critical in delivering consequences to those trying to smuggle narcotics across the border. In closing, we are seeing an increase in index as a result of the efforts. In fiscal year 2015, cbp seized 50pounds of seventh in International Mail. In 2016, 81pounds of fentanyl were seized and in fiscal year 2017, 335 pounds were seized. Already this fish scat year at jfk, cbp heros have made more fentanyl seizures in the first three and a half months than all of last year. So despite the success, much more still must be done. Must continue continue crease the level and accuracy of the advanced electronic data being provided, must further refine targeting capabilities while working with the Postal Service to ensure every parcel select for examination is president presented to cbf and must fine the solution to examine par sells without having to open the packages and must work with Law Enforcement partner to identify and dismantle criminal networks bringing elicit narcotics into our communities and ensure criminal prosecution. Thank you for the opportunity to testify today. Look forward to your questions. Thank you. Good morning chairman portman, ranging member kearner, germanson. Thank you for inning she to discuss our work on International Mail security and keeping elicit drug outside of the mail. Our organization has conducted substantial work on Inbound International mail operations and secured. Issued eight reports and made 21 recommends to the Postal Service covering areas sufficient an enhancing system processes, providing bet employee training and oversight and improving coordination with cbp other, agencies and foreign posts. The Postal Service agreed with 18 of the recommendations and already addressed 12 of them. We have two ongoing prosects focused on advanced electronache dat and opioid in addition to this work were building our data an littics capacity to find and prevent drug traffic through the male. For years Law Enforcement used data too find criminals and expose networks. Efforts focused on financial crime. And just as criminals misuse Financial Institutions to commit fraud, todays drug traffickers are using the u. S. Male to Exchange Money and deliver Illegal Drugs. Postal satisfies faces a number of challenged that private company does not. For instance, the Postal Service is obligated to deliver international par seldseen thoughed did not receive them from the customers coastal Service Received limited electronic data about the parcels and its often incomplete or knack cure. The sheer volume of par sells far exceeds what other shippers manage. Finally, unlike private shippers the law requires the Postal Service to obtain a 2009 inspect the contents. The privacy of the con dents is principle is being explode. As eeconomies expand, rapid growth of both domestic and International Mail par sells is occurring. The posta service must rely on data to deliver. Thats more than 14 million parcels a day. And its easy for illegal drug parcel toys hide in all of that traffic. However, the data that the Postal Service to manage their network can use be used to sniff out suspicious parcels. This past september, our acting Inspector General testified before the house about her work in this area. She described the case involving an International Parcel containing seventh seeded in new york. The investigate uncovered a postal employee. Our an hittics work on the seed parcel identified nearly 2800 additional suspicious parcels also sent through the mail. Since that time we have assisted other federal investigations involving reshipping schemes and elicit International Narcotics parcels. We identified a number of reshapers wore unknown to Law Enforcement and who were responsible for thousands of suspicious shipments. While supporting individual cases as useful, were also dedicating resources to build tools to address issues broadly. We completed the development of a tool to identify postal employees who may be stealing drug parcels or facilitating delivery to criminal groups. Unlike legitimate customers who tell us when their customer does not rave we have yesterday to receive a complain from a drug dealer their parcel is missing. We have had to had to rely on tips. Now were analissing Postal Service data and looking for indicators to help us focus on carriers or routes where suspicious par sells are disappearing. The initial use of the tool may revolutionize the way we tackle these crimes. Also building a tool identify Inbound International par sells cheer suspicious but not arrived in the United States. Our shown is we can share the insights to better assist efforts to identify shipments for inspection and reduce the number of narcotics parcels entering the mail stream. We shared and information and the results are promising. Combating the shipment of ill el drug is not a problem any one agency can shovel by itself. Crossagency collaboration and data sharing is critical. We need to identify and intercept parcels before delivered, rather than investigating after the fact. One part of the solution is using dad to effectively to uncover problems but thats only half the battle. Resources are needed. For example, our tool to identify employees, identified hundreds of suspicious postal routes. Our agency isnt staffed to address all these investigates immediately and the challenge is going to get worse as the budget gets smaller. This challenge isnt unique to our organization but highlight thread need strategically invest in tools and people to combat the problem since data alone is not enough. But Data Analytics can happen in the areas of great its eest impact. Thank you for the opportunity to scows our work. Im hey to answer questions. Mr. Baldwin. Good morning, chairman johnson, chairman portman, Ranking Member carper and other neighborhood the committee. Im dan baldwin, a special agent with the drugged a phones. Ed a energies, current to dea headquarter where i provide Operational Support to offices in asia and africa. Prior to this way this country at attach share for the beijing office. Its an hon to poke to you about International Cooperation and dayes enforcement efforts to come boot Opioid Crisis. In addition my written rocks there are two things id like to touch on, the enorm my of the problem. The last southeasterly years dea encountered a dangerous new trend. Convergence of the opioid ensprinkle the sin the rick drug threat from china. In 2016 alone, 42,000 americans lost their lives due to an opioid overdose. We all like my know sun has been affected. This is a National Threat and Public Health emergency. Fueled by fentanyl, which is cheap to make, hard to detect, and dangerously potent. A kilo can be pushed for less than 5 our thousand and the potential profits from the sale of that can exceed 1. 5 million. It is often smuggled across the u. S. Mexican border or sent directly to thus via postal or express mail from china. Its found in heroin counterfeit prescription drugs and other elicit substances. Two milligrams of this substances potentially deadly. Often times users dont even know theyre taking this lethal drug. This leads me to my second point. Countering the threat. Deas mission is to disrupted and dismantle the highest priority drug traffic threats to the United States. For decade we have maintained a worldwide presence to take the fight to the source. And in any case, china is the primary source of both fentanyl the precuressers used to make it. Over the past decade, our relationship with china has progressed, as recently as three years ago, many of the synthetic drugs in the United States were not controlled in china, and they had no Legal Authority to assist us in our investigations. However, through continued engagement by de and doj, highlighting the deficiency, additional legislation was passed in 2015 which improves their ability to more effectively control newly identified harmful substances. China has now controlled 10 fentanyl contractual substances, 116 other new psychoactive substances, the u. S. Seize injure data Shows Chinese control has an immediate effect on the availability of these drugs in the United States. Where all encouraged be recent executions with chinese drug control officials and the prospect of scheduling fentanyl as a class. This would eliminate the need control fence until a relate substances onebyone. U. S. China collaboration on investigations has seen improvement. Of note in 2017, the department of justice indicted two chinese nationals responsible for manufacturing and distributing elicit fentanyl in the United States. Theyre targets which are deemed to most significant drug trafficker bid the department of justice. In the u. S. , the dea and the u. S. Enter agency utilizees coordination and dea special Operations Division toen hanes investigationness the sharing of information. One outcome of this enhanced collaboration was the recent takedown of alpha bay in 2017. One of the largest known dark net markets. Going forward, the dea anticipates the opening of the office in china, later this year. This offers will facilitate greater colinn operation with Law Enforcement counterparts along the chinese southern border where drugs heave loin and route to the United States. Dea has sewn progress with, with our chinese counterparts and are hopeful the relation ship wife continue to improve and develop. Here in the u. S. The de and Law Enforcement partners at the table will continue our collaboration. Were passionate about our cause and driven by the families and individuals that have been directly impacted by this crisis. Thank you for the opportunity to testify before your committee on this important issue, and i look forward to your questions. Thank you, mr. Baldwin. Good morning, chairman portman, chairman johnson, Ranking Member carper and distinguished members. Thank you for the opportunity to appear before you to discuss the opioid flies the United States and the evidences of u. S. Immigration and custom enforce; Homeland Security interestings so bring to justice the criminallesses responsible for manufacturing, smuggling and distribution of dangerous opioids. As the largest Investigative Agency within the United States department of Homeland Security, i. C. E. Homeland secured investigations, investigates and enforces more than 400 criminal federal statutes, using their authority investigate all types crossborder activity. In an effort with bowling domestic and international Law Enforcement partners to target Transnational Criminal Organizations supplying dangerous opioid to the United States. Today i would like to highlight our efforts to combat International Shipments of opioids, specifically fentanyl, coming into the United States through International Mail facilities. Based on investigative efforts the ewes Law Enforcement has first china as a primary source of the u. S. Eliving sit opioid address. Fentanyl and their proceed curessors are most precursors are produced in china and shipped through mail carriers directly to the United States or ships directly to tcls in mexico. Once in the western hemisphere, fentanyl is mixed or pressed into pill form and then used to the elicit u. S. Market where demand for opioids and hers hers heroin remains as epidemic proportions. Criminal organizations receive shipments from china to spy the u. S. Market. These sophisticated Transnational Criminal Organizations utilizing existing smuggling routes and u. S. Based infrastructure to get fentanyl to the end users. Seed yours are higher in number and more voluminous, fentanyl seizures from mailhigher in purity and un shipped in purity concentrations of over 90 whereas the majority of fentanyl the land border is received in concentrations of less than 10 . Purchases can access open course and dark net marketplaces to purchase elicit opioids online and have it shipped directly to their homes in the United States. No different than any other ecommerce commodity. Transnational criminal organizations recognize the vulnerability of the mail service and exploit the great volumes of mail coming into the United States as means of further criminal activity. Recognizing the need to target fentanyl trap the i. C. E. Cybercrams center is identifying ongoing investigations facilitating the coordination of undercover vegases. I. C. E. Is fully engauged with the dea special operations, the cbp National Target little nor identify shipping route that may contain elicit opioids and precursor. Our border enforce. Security task force is also known as best. Primary platform to vote midnighting in response in the opiode crisis, i. C. E. With significant imbedded at an International Mail and express consignment facility. Memphis best targets opioid shipments daily and gauge inside controlled deliveries of seized elicits par sells parse parcels. I. C. E. Will command at the best platform for interdouble ehill si ohmouts transit through the mail staple. I. C. E. Has made significant strides combating the epidemic. However, even with these advance, theres no single solution or Government Entity that can stop the flow of dangerous and elicit opioids like fentanyl into the United States or keep them from harming the American Public. Tackling this complex threat involves a united comprehend and if aggressive approach across Law Enforcement, i enter able lyings and collaboration with experts in the medical, science, Public Health communities. I. C. E. Kill continue to work with our federal, state and local partners to improve the efficiency of information sharing operational cord nation address the challenges and threats posed by elicit narcotics smuggling in the International Mail environment. In closing, id like to thank you for the opportunity to appear before you today. I look forward to answering your questions. Thank you. Thank you, are in nevano. And thanks to the witnesses. Well have all the questions for. We have a number of senators here that cant stay for the entire time ill be here for the entire time so ill be very brief and then turn it over to them and have an opportunity to ask more questions later. He to summarize what youre saying, mr. Nevano talked about kneed in for is no be an aggressive approach and i must i say have not seen the urgency over the past men years we talked about it at the state department, and been talking with International Partners and we have evidence that we were able uncover in our investigation that its still not going at the rate we would like. We can talk about that that lat. ll real you the emails talking about we slowed to a crawl. We know there are over 3 machine million packages coming here without any dat and mr. Owen told us he needed the data to identify the packages. Number oning there to do to stop this. So, my question is along those lines just to give you the opportunity to think about it. With that ill turn it over to Ranking Member and have as many rounds of questions to get all the information out today. Thank you. Thanks. Anybody here that needs to have some urgency to be in two places at once who would like to go ahead . No . Go ahead. Thank you. Senator langford, who was here first. I appreciate you being here and the testimony you have. Met run through a couple of different questions to get some clarity. Mr. Fur measure in you mentioned the advanced electronic data and then you saad just because were capable doesnt mean door thing that. When are we not just capable but the end of 2020. When are we actually gathering the data . Thank you, senator. That is correct. What is happening in the upu context is the tools are being put in place and capacities being built so that countries have the ability, if they have the data, to send and receive it. But the bottleneck is at the country level in collecting the data and entering it. What is the time frame authorize that . Thats yet to be termed. 2020, 2025, 230 . Help me understand. Countries going to begin deploying requirements for aed as theyre now entitled to do. Those requirements need to be calibrated to the capables of the sending countriesbut its going to be a driver of further deployment. So there isnt at this time a Firm Deadline by which every country must be able to send aed so at the deadline is the capability by 2020 but no deadline when they have to do it. In deadline established at this time. How do we get that . We need to be guided by our own information needs as we assess what it is we want to ask for, and then tailor or requests around the capabilities of partners to ensure that we get customs and Border Protection the information theyre looking for in a time live way. Thank you. Mr. Baldwin, and mr. Nevano, this question is for either of you. Trying to work through the process of not just picking up not only the seller, which is exceptionally important, but also the buyer this is headed towards enthusiasm bright and say this is a very small amount of fentanyl, looks like a user, verse this as large amount and need to track the seller and buyer and thats could be a street distributor. How do you work through the process of interdiction and enforcement. Thank you for your question. In regards to identifying the different players in this process, we have of course our offices overseas that work directly within the supply chain as far toes the supply from china. We work here in the United States and we have our agents identifying leads, either from cbp, from postal or our own investigations. We then are providing those back to china. So were identifying the entire chain. Of course the goal is to identify the largest level supplier. The suppliers from china so if we have an individual sending multiple thousands of packages, makes the work at the end of the table easier by eliminating the one seems like if theyre ordering online, you have an ip address, probably have city location or region the package is coming fromwhen is was dropped off there would be multiple mark. The financial transaction. Seems you into would be able to narrow the folk discussion but you have the address of the person purchasing it here because thats where its being delivered to. You hit on juan how i was going respond. Relationship is with Financial Institutions is key in being able to track the Financial Transactions both on the receiving and the sending en. So, we have established relationships with Financial Institutions that allows to us track the flow of the funds going from the purchaser to the person on the other end who is actually selling the elicit opioid. So thats key. Do we have incentives for other nations to cooperate with us . When were trying to interdict that . Minimums of dollars in the transaction at times, and its certainly for the largest dealers. There is any incentive force these other nations to cooperate with us to be able to share that information . I would defer partly to that to dea, but from the hsi perspective, we have tried to establish relationships in Foreign Countries with intelligence sharing work with Law Enforcement partners to establish mutual relationships to show the benefit of hour establishing these relationships can interdict a pennsylvania package before it come a package before it comes into the United States and we can push the borders further out to not have the package could into the United States. That would be our goal. Just to follow up with add nor that answer, countries, at least china, has an and in working with us to try to address the stuff coming out of china. Theres a potential that this threat could be these drugs could be used by their own people. Not necessarily seeing that but recognize the potential of that. We have certain mechanisms within de and with the department of justice where were engaging them on a regular basis to assist us in getting them to help us with this problem. Those are the thing wiz work on daily, and actually. We have meetings to try to push our asks to the chinese, in order to get them to come to the table to do more in regards to addressing this these substance coming out. Switch countries. Mexico you messengered a couple of times at we, the precursors are coming to mexico and we have musk production facilities now to where theyre shortcutting china, getting it straight to mexico. So, what this cooperation like with mexico right now for that as well . Senator, in regards to deas cooperation with mexico, it is good we have seen within mexico we have seen some this substance move into mexico where its being priced, but as it was said any Opening Statements the percentage and purity of the substance coming over the border is less than it is coming through the mail service. Our we are also looking to try to bring both mexico and china together to collaborate on a on this issue to deal with substances, the precursors going to mexico that come into the United States. One thing were working on but we have decent relationship with our folks in mexico as well to deal with this problem. Obviously we want to make sure theyre work with china to make sure they address the threat in their country as well. Thank you. Can i make one quick comment as well, mr. Chairman. Not only thank you for allow knowing go quickly on this but also want to be able to highlight the Inspector General for the postal solves, not only for the work they have doesnt but many people may not bit senator heitkamp and i worked on this quite a while. The Postal Service Inspector General has worked with all inspectors general to put together a web site called oversight. Gov getting the ig reports out for every group, and theyre not named on that, their team was a major player on getting those reports out and thats exceptionally helpful to all of us. So just, publicly, we come at you we questions but thank you for that. Health not related to this hearing but its volleyball. Its valuable. We just had a side bar conversation. The Postal Service is theyre out of money. Theyre heading for a situation what we call bankruptcy. We have an obligation on the Committee Congress to enable them to be successful and provide service, legitimate service that is needed and to better ensure the deliver of fentanyl and other and a quarter is is diminished and hopefully eliminated. Set thaws jim tyree minder on another front. Id ask i like i want to ask each of you, one by one, mr. Murphy, one thing we can do to help you and your folk does a better job, one thing. Senator, at the might be something were doing or need to do better. Me dad used to say to my sister and we men w when he wad chores, a job worth doing is worth doing well, and i took the idea that everything i do, i can do better. What can we do to enable you and your norfolks to do a better job . The attention that the issue has gotten domestically is something that is noticed internationally, and that the higher profile of this issue is useful bureaucrat include certainly, and so i personally and in my work appreciate the attention that the issue has received. So thank you. Cintron. We would like for reform. With the growth in ecommerce through the mail facilities and express curure facilities, additional staffing would help us as well as the continued support of the an political work at the National Targeting Center Laboratory and Scientific Services folks. Thank you. Postal governors. We talk about how to this is a strategic problem and something that requires a sense of urgency, having governors onboard for the Postal Service would bring both of those in addition to all the leadership theyre already receiving. Timely point that you raise. There are no current governors on the postal board of governors other than the postmaster general and the deputy postmaster james. Imagine the Second Largest Company in the country operating without a board of directors. Thats where we are, unconscionable health three nominees from the administration and we need one knock nateed by president obama who would be a very good candidate, and we woo have two democrats and two republicans. A timely point. Mr. Baldwin. Dea is also appreciative of any additional high schools and authorities granted to to us address the Opioid Epidemic. We demore specific . Our priorityunder downlied in the 02018 budget proposal, so as of those are prioritized by people much smart enthat me at dea headquarters. That what i ask. In regards to the specific threat, we have a number of things in regards to scheduling, scheduling actions, scheduling controls. That we look at to be able to better address the threat as we see it. Thank you. Mr. Nevano. I want to thank you for the resources that Congress Gives us, both in budget as well as personnelbut with more we can do more. So i answer would be resource. The more resources, the emotional special agents we have, me more staffing we have, would allow us to do our job more effectively. Thank you. I mentioned several of you maybed china. Almost every one of you mentioned china. About two, three years ago, the president of china was coming to the u. S. , going meet with president obama. I think met in washington state. And one thing was raise by president obama is an issue we raised with china any number of times before, and that was our unhappiness, actually anger, with their allowing folks within china to launch these hacks and to come after our intellectual property and money and number of other items and things of value. And every time we raised this with china, they would say, well, nobody inthat we are responsible for is doing this, its not the military or part of the government. Just happening and different people do this stuff with didnt believe them, and then when president obama met with break xi about two or three years nothing washington state, he raised the issue with president xi. The president said i its not us, its role elements within our country. President obama said this who is is doing it, this where theyre locate. These are be team. I if you decent so something bit youll find more difficult to sell your goods and products and services in this country. And president xi acknowledged that they could help, and they have. And they have. Havent stopped all the hacks from china but its slowed hem down. A similar experience with iran. For years and years was trying to shut down our bangs, get on their web sites, shut them down. And literally week after be entered into the comprehensive agreement with iran on not developing a Nuclear Weapon negotiation what stopped, the attacks on our banks think about root causes, not just working on the appetite we have for illegal drugged. A its focus on china, have to reach out to terry bran branstad. Mr. Baldwin, why is it important to deal with chinese . Give us an update on your two, identify the source of fentanyl other opioids. Senator, thank you for the question. Quite simply, the reason we have to engage with china is because, as anybody who has changed oil in their car, we know the big side of the funnel and the small side of the fun. China is the small side of the funnel, meaning thats the place where things originate. We need to get the packages before they get to United States and branch out. We can track every package, we can try to track every package, try address every threat, ear trafficking within the United States but if we can get to small end of the funnel, asomething distributors within china that are sending tens of thousands of packages to the United States, we have a greater impact. The worn of working with china is just that. We have the ability to do that with them along with them and thats fed by information from cbp, postal, our partners at hsi, we identify packages here, we identify the shipping origin, and take the head off the snakes. Thank yous for that response. When i have second round ill come back to this. Thank you. Chairman johnson. Mr. Chairman, this is really for mr. Baldwin or mr. Nevano. I read an article said that 800 worth of precursor ingredients for fentanyl produces 800 thousands dollars worth of street value drugs. That close to true . Senator, i would say that is an accurate assessment. We know that the profit margin in fentanyl is much higher than, lets say, heroin, so your statement is accurate. So obviously, where theres a demand, its going to be supplied with that kind of profit potential. I want to talk about the difference between im not going to hold you to these figure but some sort of sense, what percent of the fentanyl comes through mexico, haven become shipped, and how many is coming in through directly now the Postal Service . Ill talk about the purity differences later, but justgy us some kind of sense. Im not sure if my colleague at cbp might be able to answer that better. Whoever can best answer these questions. Just based on our interdiction, based on the seizures, were seeing larger seizures through the southwest bored, the 90 pure. This average shipment in the mail is 700 grams. We looked at dat for 17. 854points of fentanyl seized on the ladboarder, 335pounds in the mail. Liar quality but here prosecutor. Why the difference in the purity . Are they cutting in mexico to actually be used immediately or its just the practicality of if you want to ship smaller quantities. The seed seizures, the fentanyl is missed in with other hard narcotics and the mail, express environment its a single shipment of the fentanyl by itself. Coming through the postal system is that being sent to other labs to be processed and take the 100 purity fentanyl . Enly when somebody is abusing seven until a, what percent purity is in that tablet . Senator, so i think you have hid on something that it crucially important win. Have two threat areas. The southern border threat and precursor for making fentanyl, are found in, and produce fentanyl there it then is adulterated into the other Illegal Drugs pushed across the border. We then have the mail stream, as you said, that has higher purity. Those, then, are being used at times within the United States in what we call pill mill operations, where that fentanyl is pushed into a pill that is a counterfeit pills. To look much like this same, similar pill that drove the Opioid Crisis to begin with. So the dosage amount no those pills is one mill by gram. So one milligram of fentanyl, its 1 thousand of a grand. Theres a thousand grams in a kilo, meanings theres a million milligrams in a key home thats how many pills can be made in the pill mill operation process. In brief material, almost sounded like just users directly buying that. It that also the case or is it almost 100re of the case theyre being shipped to some kind of pill mill . Senator, its like nye ecommerce commodity right now. End users can actually sit in their living room and order elicit opioid online. With they be getting 90 purity. That is accurate. Is what why theyre dying so quick . That would be accurate, senator. I want specifically what would you like to see china do . Not cooperate. I mean specifically. Irthey not investigating this . Turning a blind eye, specifically what would outcome lie them to do. Thank you for the question. Its working in china, of course, has its challenges. There are michigans that china has done back in 2015, they changed their law to where they were able to adapt to a threat in a third country. So, in the United States, if we have an abuse of a certain substance threat not controlled in china, their law is now adapted to where we can take that abuse data and provide it to china where they then can change their law. De as a has a mechanism in our chemical evaluation sex and were evaluating different substances, the harm and the effect its having on the american people, and were providing that information directly back to china for their action. So, when i when you ask what want thousand do i would like them to continue down that road. Theyve taken it seriously theyve controlled a number of different tentalled. We pry ore tight seven until as in information provided to the chinese and the actually controlled the top four asks. We want to dialogue to get better and bet and we want our experts to meet regularly and exchange this important information. Again, this is something that we can do to directly address those threats here in the United States with china. Not a glaring omission. Just a matter of theyre doing good things, just need to do more of it . Well, absolutely. Thats one aspect of what they can do. That its one piece of the puzzle. Again, theres multiple problems here and multiple facetteds. One problem is the analogs and our inability in our law, chinas law as well, keeping up with the minute change in the chemistry of these michigans. We introduced the act, dea has detroit to do that its regulatory powers but may be butting up against their own legal requirements. Can you talk about the need codify that. Thank you for that question. Im not familiar with the details within the act. Im aware of it. Im certainly we, of course, if we have another tool that is provided to dea for us to deal with this problem and thats the act that gives us that tool, were happy youre constrained right now the terms of rapidly scheduling one of these analogs. Correct . We have existing authorities to move forward and schedule substances. That is not something im intime natalie familiar with. Im within the Operations Divisionment we have peep that the people in the chemical section that do this day. However, if we have offered to us in whatever bill, were happy to try to assist you in moving the bill forward. Real quick because it way pleased to hear you trained dogs in fentanyl. I thought if you did that, they would die. Thatser. News. How many mork 9 units do you need . Id ask you just from n general. Were all very supportive on this committee but for this particular case, hulk k9 units could you use. We can always increase the resource at these facilities. Its important when congress supported us with k9s it needs to come with the happenner. A lot of times the k9 comes by itself. A unit. Yes so any support we could good would be helpful. We currently have 500 doings 500 dogs a ports of entry. Are is it specific dog for a specific drug and. Our dogs generally two types. This narcotics detector dogs they intersix second times and then dog for currency and firearms for outbound thread. You have been able to add fentanyl. Yes. Thats impressive. Thank you for your service. Thank you. Let me just quickly on the followup on china. Dea and justice recently indicted two chinese nationals as was widely publicized, and they indicted them because they were using the mail to ship large amount of 0 fentanyl to the United States. So the question is, what can china do . Its fine to schedule these precursors and things that go into making fentanyl and fine to schedule the analogs, which is a good idea. But its about actually take action and prosecutions. Let me ask you about those two individuals who were indicted out of the justice captain and dea involved. They have been righted. The current status, im not sure where they are wasnt the system wince china. I do know this, it do know that the traffickers and the ships of the substances from china are very creative so if they have the ability and you learned this with your own inside investigation, if something is controlled in china they usually die vote another substance thats is no controlled. Let me. Let me just back up. I understand the challenges and we talk about that. Answer a transshipment shall cling but i asked you specific questions. Have those individuals be arrested and prosecutors . The answer is no. Unless youre going to correct me. No, theyre currently not in custody. Thats the answer the answer is no. Yes. So to the chairmans good question about what could the chinese do, how about prosecuting these two individuals who you have indicted two individuals out of the thousands of labs of china sending this into our communities too. Be a good step . Can i just have a moment. To follow up, the chinese have to feel like they have a dog in this fight . And theres some in china would like to see us further weakened as a nation, and our continued use, abuse, overuse of these harmful narcotics weak s it theres enormous amount of now be made and were talking about money from this country to their country. Somehow they have to be made to believe or understand that they have a dog in this fight and its to say, the customers for these drugs may be your people some day, not just ours. When the president over the United States meets with the leader of china, its important that this be at or near the top over the issues raised. Senator heitkamp. Thank you, mr. Chairman. I think this is the third or fourth time we have been in this room talking about this. I have to tell you, this investigation reminds us that were not doing everything with the sentence of urgency we need to do, and so i recognize you all are working really hard on this, you all want to see success, but we have to be more urgent about this, and we can build 20 billion wall but if we dont solve this problem, we will not have solved the problem of interdicting drugs. If we simply focus on china, we will not solve the problem of interdicting these drugs it if we simply focus on mexico, fentanyl in my state, that killed kids, that led to a huge investigation, one thief first, came from china, to canada, to portland, oregon, to north dakota. Last time we were here we talked about treaties. We talked about the need work government to government, with authorities like mr. Owens to try and see, their treaties stopping us from doing what we need do . Are we on the right path . I want to expand this discussion. Its not just about drug interdiction. As ecommerce growed this problem witness get worse andors and it will be about counterfit goods, about avoiding goods that may in fact injure from a Consumer Protection standpoint, where its lead paint and toys, whatever it is, we need to have our laws enforced that protect the public safety, and so were failing, and were failing because we have unstaffed and underresourced the post office. I think its pretty clear. Were failing because we havent worked in a government to government way to really close the loopholes. And this isnt just about drugs. Its about all of ecommerce. As the states dish think that the court probably will give the state this ability to collect sales tax theyre going to have some skin in the game because it may drive some offshoring of ecommerce to avoid sales tax responsibilities in states. So those are of white house live on the border understand the come mixty of working to make sure we are not shutting down commerce but that we are in fact protecting Public Health and safety. We will focus all attention on that one point of development before it expands to the points of entry into this country how difficult is that to move around the world . Mr. Baldwin . Senator it is very easy to do. There are multiple countries ready. Why not . If you look at that type of profit margin it is important not to spend time focused on china. Because of what chairman johnson and chairman darfur talk about the insatiable appetite for these kinds of drugs we have to understand while we try to deal with demand we cannot let supply come in without amount it drives the street price down to create an opportunity for transition from prescription drugs to illegal street drugs. We have the fake oxycontin so they put amounts that is lethal never mind the destruction to the social safety net of this country. It is killing people. My request would be what are the strategies not just dealing with china but the precursor problems to deal with all of this and how do we need to do a better job to give you the tools to interdict at the point of entry . Just how pervasive this can be , and attorney general i run the drug task force. We had a huge mess problem 95 of all the consumed in north dakota was made in mexico. Not only grown. We had a tip there was a package we brought in the dogs and they hit on three of them. That is what we know. We are getting inundated. What can we do to work to renegotiate the postal agreements that limit you from doing what you need to do in terms of interdiction . Not only from china but as the threat shifts you are absolutely right with ecommerce we are looking at this with a narcotics interdiction that ecommerce growth that cross our border right now that will only continue to increase. The last time we were here we heard over and over from the Postal Service that there are treaties or relationships or international contracts. Probably treaties with canada or other International Groups limit their ability to do interdiction. Is that true . We were told we could not use drugs because that note kills them so now we were told the postal agreements limit our ability now nobody can answer that question. We have to get an urgency and deal with this not just with Illegal Drugs but Everything Else to protect our borders. This is not the end thanks to the chairman for the actual work done here. We didnt reveal anything we didnt know and i want to point out the chinese individuals were indicted in north dakota. We will hear from mr. Murphy on the treaties and those challenges but you are right. We spent ten years going back and forth with no information on the barcode. That the point of ecommerce it isnt limited. To focus on drug interdiction we will miss the opportunity to fix the broader problem or provide a broader sweep in terms of what we need whether counterfeit goods or violate Public Health and safety or what is happening to do tax evasion. Thank you for joining me to join today this is incredibly important to shed some light on what is going on although some of this information has been out here it is stunning also thanks to the chairman the stop act requires shipments from Foreign Countries to the postal system to provide advanced electronic data before the shipments enter the United States. I got interested because i saw what was happening in minnesota. 637 death in 2016 that is more than the number of car crashes and homicides combined in my state. Ninetysix involved synthetics and 80 increase in 85 involved fentanyl. It isnt just celebrities is a lot of little kids as well as college kids. So this bill would show us where the package is coming from and what is in and how does this information helps customs and border troll one control help with interdiction . Looking at the process we must receive advanced data prior to the arrival of those shipments to use those analytical tools and the connections and then advise the Postal Service i could give a reallife example from last week jfk we had a shipment from china and express package the express information was provided prior to arrival we could target the shipment place it on hold and while we inspected it we had 28 grams of an unknown white powder and now using that equipment we could dent my identify it as fentanyl networking with i. C. E. And dea to do a controlled delivery so we took down three additional individuals at that facility all of the equipment to manufacture and distribute including two high powered weapons. Only 28 grams but it started with that information allowing us to target with those connections to previous seizures to allow us to deliver consequences. That is a great example from last from jfk. Exactly so tell me the challenges why it isnt working everywhere. We need to have that prior to arrival that that scenario we have made strong progress but there is a lot to be done. Tell us about the trend of the synthetic opioids that the bad actors are shipping in . Absolutely. This came to light a few years back seeing increased interdiction last year that 335 pounds 92 was in male 440 was in the spectrum it is through both pathways mixed in with other seizures but the trend continues we will seize more in 18 then 17 but without volume we see at the border interdiction can only be one small part because the volume is too overwhelming thinking weakens thought that the border. Now talk about 23 countries are sharing this data . How do you do that . We do a collaboration that is our focus going between zero and 40 and we have signed 56 data sharing agreement so our focus is the countries you heard us talk about representing 90 of the volume over that volume the target is 70 aed just by focusing on that. We see data already but the focus is the collaboration. To see these numbers coming in that is why to set up a blueprint for the country to get more funding in the budget for opioids. That is also one of the reasons we need to do a better job in terms of getting people hooked but this issue is something that is getting worse and worse as sentinel lung and noel is 100 times more potent than morphine to grains of salt can be fatal. So we try to gather support if we can stop some of this. It isnt the only solution but this has got to be part of this. One other thing is that the salt act making it easier to prosecute the sale and distribution. They basically take a chemical makeup and change it then it isnt on our list. So our bill is going through judiciary to make it easier to go after those and be a sophisticated of those that try to get people out. Thank you for your leadership i hope it moves all of us to more action. Thank you for your leadership on this act which is the need for more prevention and treatment and longerterm recovery as part of this but if we can keep this poison from coming in in the first place we need to do and we know that we can but this report shows clearly we are not even doing what we can do with the current budget restraints almost universally more funding but i dont disagree with that and then to have that equipment that we have other problems here we are not coordinating well last year we were able to get advanced electronic data on 36 but it was the same as the Previous Year even in your chart you can see it was flat. We are not doing with the commissioner on is telling us what he needs to pull these packages offline and test them to get rid of this poison then go after the individuals. Thank you for your leadership what you have done to produce this report we see this in montana looking at the map there isnt a lot of color but it cost our state dearly in fact in 201535 montanans died with this Opioid Epidemic drains fiscal resources that could be spent on other services i was struck by the council of economic advisors issuing a report that the economic losses are over half a trillion dollars in 2015 alone so we need to better the efforts so mr. Baldwin and my days with proctor and gamble i spent over five 1 2 years working in china i am one of those early pioneers sent over to develop and grow our business and make Great American brands and produce and ship those to the chinese consumer. I understand a substantial amount originates from china. It is not surprising you are the leading expert. Explain that relationship. Dea has had a presence in china beginning in the 70s with hong kong we sent officers to beijing to engage with the chinese. That relationship was a longterm relationship is much better to build rapport and understanding and we have a direct liaison with the Narcotics Control Bureau a Single Mission entity so when we come into a room there is a lot of political issues out there potentially that could cause some problems we see it i that we both have accommodation we can start there. Now we have a country attache station full time with a number of different employees and expanding our presence and opening another office in order to expand into the providence were then to have direct engagement with those authorities that are doing the work so we are looking to expand connectivity and we are hopeful that office will be valuable to get additional information. I did have two children born in hong kong in fact. Look at those opium wars. This goes back a long ways. I have to commend the chairman and i was in china one year ago and he was such a strong advocate to question the premier about how do we reduce the source right there in china being shipped in the United States . We are grateful for your leadership look at the map and that devastation has created as we try to get to that root cause topic discourage in our nation. But last week in my home state montana the flathead beacon reported the couple employed there in both the montana was caught distributing methamphetamine and postal shipments now a city is beautiful right in the south tip of Flathead Lake close proximity to Glacier National park the population is less than 5000 people. Half a pound of meth could be shipped directly into the Small Community and i am grateful for our Law Enforcement officials and their vigilance to uncover this operation from this epidemic so what preventive measures is the usps taken to combat. Step up and answer that question. Yes from the chief postal inspector as we heard before the challenge for domestic is just as challenging as international we use help intelligence partners as well as business data and we will partner closely. I dont understand how how an employee could be caught it is more difficult to hide and clearly to step up enforcement. What can we do in congress to help in those efforts . The Postal Service has given Additional Resources so we have assembled a team of experts in certainly we can cover the ig side as we have said before comprehensive postal reform with the postal operations but you are absently right with small communities it is criminal intelligence or we get a tip. I will speak for the Inspector Generals Office we are treated through the appropriations process so they just cannot give us Additional Resources it is up to the committees to give additional funding for these initiatives. So we face that reduction of government all are facing we already have a smaller budget so Additional Resources are appreciated. Thank you for your leadership and one of the points that i paid is to senator carpers point is that in china they have a growing problem. Of opioid addiction. More of those in the market and for i hope for a lot of reasons with their own internal issues but with regard to the testimony earlier and then we just need more money to make that obvious point. I dont disagree resources are more important but it is a whole lot more costeffective for you and your people to have advanced electronic data. Yes that just will not meet the challenges that we face but the volume is too overwhelming and to rely heavily on the data with those analytics the data is the key. Going to the next level there was a lot of information not previously known one was we have to target certain countries because of this annual inspection. But you could not include china why . Because there were too many packages . That is not responding to the threat that we dont have this data to target packages. And me think 50 are being this advanced electronic data because of this agreement but we still let so much of this through. Even if you have electronic data in advance and you know the packages suspicious that 20 of the the time they cannot present it . Yes there are now new mechanisms with Software Technology the increase of the presentation rate has gone up significantly but 80 is not where we need to be. 20 . 20 . Thats fine but that is a management challenge. So that is accurate and timely information so let me go back with the lack of information from these countries talk about where you are with other countries around the world with email traffic indicating otherwise. But that is an email from ma may 2017. This is a memo to the deputy secretary of state and if you turn to page 821 of the memo on the issue before us the postal union issue. That is a topic of high interest on the hill because the contribution aed two make opioids. Despite its uncertain benefits for this purpose accelerating the exchanges the highest priority because of the clear benefits of Aviation Security. With expeditious manual handling. Were you a part of this memo to help for draft to secretary cook . Yes senator. I drafted the language in question. Is this what we believe . If we have a government this advanced electronic data is more important then to stop a poison coming in then you have a problem with priorities. Is this a function of the state department . The state department doesnt use this for any purpose. What agency is responsible . That would be cpb. How do you determine there is a clear benefit with aed intellectual property but not opioids . First of all i will clarify this is an internal memo from one office to the leadership of that bureau so it doesnt reflect the views of the department per se it is an internal discussion. But the use of advanced electronic data for Aviation Security or thank you would agree is a concern with other highpriority concerns these are the uses for that data that are wellestablished familiar in the environment talked about for many years the use of data to target synthetic opioids and that reflects and that interrupts the novelty. This memo is from last year. May 2017. So you say the state department didnt know we had an issue may 2017 . I am not trying to put you on the spot personally but it reflects an attitude and lack from mr. Nevano to be aggressive instead of the attitude weve been doing it with very little success we just need more information on the barcode. I hope that doesnt reflect the state department attitude so to understand electronic data is important. We have to stop the demand that the interdiction rate is so high we need more treatment and recovery. But if this doesnt matter we will get this poison coming in through the mail system and commissioner so one of the outcomes of this report that we worked on and then to prioritize this issue to say it isnt as important as intellectual property or more important and prioritize that because people are dying. Thank you for your service i hope you will go back to the upu and your partners in saying that this is an urgent matter. And there is more overseas packages coming into america that is in the report it may not be accurate but there are 500 million packages coming into the United States today, that is double over the last few years. That makes your job harder but all important we have this data can you talk about that . Certainly we could provide you the specifics you are close to that range in austria we have deployed processing equipment around the country so like up in the pacific area california, new york, chicago to handle the influx of volume coming in. The other part we have increased those numbers significantly from aed this year. This will put us at 70 aed captured captured by the end of the year. But we have done subsequent on the equipment that we have expanded that to have the ability so with that 20 that is missing and then we will have that capability and then we had that Inspection Service that they can intercept that package with the mail stream. And then to make sure that they are laser focused for it to get out of the network itself. Look what happened in 2017. It was flat in december was 40 but november less than 36. We went up a little bit at the end. That is not a good trend. We want 100 so with the jfk program with regard to china here is a quote those working on the ground has been no meaningful improvement and that is one individual. Mr. Owing you may agree or disagree but i just dont think the evidence supports and with that significant ramping up. I think we have learned a lot as the pilot as it has begun starting with advanced electronic data coming from china and france. How to target and work with the Postal Service so we learned a lot from that pilot. It was a slow road that we are on the right track there is a sense of urgency and we will continue to move forward. I you plan to expand the targeting . Yes. We do plan to go beyond that in jfk we target eight Different Countries looking at the volume coming from what part of the world basically performing a Risk Assessment for one country of greater concern at this International Mail facilities. There has been a lot of discussion focusing on china that is the source of most of this synthetic opioid coming into the country. But this is a very lucrative trade to avoid whatever we come up with. Is it true if we just focus on one country and with the state departments approach we are likely to see shipments to other countries and with that application if you want to do business with us provide this data. Thank you for your question as we improve on our techniques to interdict packages that will only change the modus operandi. As evidenced by packages shipped to hong kong or other countries to evade Law Enforcement effort efforts. Have you heard of the name Willie Sutton . A famous bank robber who has died finally arrested and put in jail why do you rob banks he said that is where the money is. Why do we focus on china because that is for the stuff is coming from and the Postal Service is how it is getting into the country and i am reminded of a game played on the boardwalk in delaware it is called fund land. One of the favorite games is whack a mole. This is not a game. Because after we convince chinese and those points week eight making we need a multilayered approach this is all hands on deck moment that the u. S. Postal service is used on governance and predictability and we can do a better job here. So first i just asked at the International Service centers talking to us about the Staffing Levels at each of the Service Centers . We have increased by 20 and those levels were stagnant but over the last year we had to have that 20 additional staff. And using drugs for those other illicit activities we focus on Border Patrol agent we have 20000 or more physicians than allocated. I dont know if we can hire that many with a number of vacancies. So to focus on the border between border crossings and Proper Staffing all the traffic and commercial activities is illegal. We have a workload staffing model and what it does is measure the time it takes for the officer to perform every task we are required to do. How long does it take to do an inspection or in one immigration clearance . And then we look at how often we do those activities across the country throughout the year what has been submitted is we are understaffed by 2518. One more time . 2518 shop to perform the duties also 631 agricultural specialist to address the needs of the ports of entry. We need to take that to heart. I spoke t5 in in my Opening Statement about the resources to provide that service that we need can you tell us what they need over the coming weeks and months to properly handle the National Package volume and the screening efforts . That obvious comprehensive referral reform goes a long way not necessarily waiting with the International Volume but to expand that network and from our perspective certainly to have that reform goes a long way to keep us on that footing. It is important to think about that is where investments should be made to zero in on what we are looking for. Reform help us get there. Any comments . With electronic data keep in mind the quality. If it is only useful for analytics when we started to look at it last summer looks to us like somebody manually inputs this overseas actually typing in the addresses. There are 20 different ways a human could write that they could abbreviate north or street or add extra spaces with humans entering the data it is almost impossible to match it takes a tremendous amount of cleanup effort. If there is any way to require the countries to fracture that or collect that some effort needs to be made to be cleaned up we do that with analytics but theres probably other data set. At the National Facility at jfk we have her double of the inbound mail with the Pilot Program with that electronic data designed to help us preventing illegal items from entering the country. I trust the Postal Service appreciates its role to combat the flow of dangerous drugs . How does it plan to address the recommendations with your agency . With those that were specific to your agency . And to go back and address them and to get those percentages for a couple of months there were technical issues with Significant Growth we expect that collaboration to be significantly higher the other part is what we found in finding that 20 they will get priority to make sure we are addressing every one of those issues. I am convinced you are recognized that role that you play so how does he plan to use those findings and recommendations . So we will continue to work with them not only ensuring that that level goes on but the accuracy from that data to be more effective with the targeting to make sure that a free package that we ask for is presented for infection inspection. Mr. Owen have your agencies agreed to a Performance Measurement sister to track the packages that are presented for inspection . If yes or no please explain. We playstation on hold of course we expect to see that that the data was not prior to arrival or after the cargo arrived and we have a challenge for the Postal Service to retrieve that. Prior to arrival we target that in the Postal Service will capture that it is that gray space if the targeting was late how do we account for that but that ultimate objective is that prearrival with no disagreement they would be presented. So if the timing is off with the ability to capture that is where the focus will be more in getting to the metric thank you for your leadership. Thank you to the staff and to bring us into urgency. There is no Silver Bullet. There is no Silver Bullet but there are some that are bigger than others and we have identified those. In delaware we are big on the c but to communicate and compromise and collaborate and that is to communicate better and better coordinate to find other ways to collaborate and we will be better off. This hearing started tuna half hours ago. People die every hour from this Opioid Epidemic. That means 12 or 13 people have died since we started the hearing. Brothers or sisters or son or daughter they are real people. Keep their faces and stories in mind thank you very much. Thank you not just for your cooperation but your air staff made this report and we can dig much deeper so thank you. Among those exhibit so we were talking about that 20 and that is a concern of customs and Border Protection so what is your experience from the fedex and ups of the world of that express consignment operators ask the report indicates the you do not have that slippage or leakage from the express couriers. That is very effective but to remember we have been at this since 2002. With those career operators at that advanced data and for my personal experience as we were ramping up to meet this new requirement they have the same issues to provide the data to be accurate, timely but looking at the access long success to see that as a model with the Postal Service. And then to identify to help us track down those shipments with the Postal Service as well. I appreciate your confidence i hope this hearing is on this issue because that data is usable. And to get better data and this is something we should look at and then to present those packages but finally with a trip to hong kong and one thing that is interesting and as i understand it and also Government Security and that they could break up some kind of network between china and hong kong and the United States and also with her attitude you will appreciate this and dont worry it is under control that is his quote from the official clearly it is not under control. And then finally the fact as important as it is to commissioner when zero when it is important to prosecutions and you can speak to that the hsi home and security inspections special agents that can be more effective with those Transnational Criminal Networks and maybe you can speak to that for a second . After Customs Border protection with these International Centers with those subsequent criminal investigations. The quicker we get the information and also as stated earlier allows us to do an analysis to tie the links of the previous seizure and for example with the seizure at jfk in new york without Historical Data to develop a Larger Organization to take on the Larger Organization. And as a safety standpoint before they go into a home it is helpful to know the person that is inside the residence have a criminal history. Do they have weapons . How do we prepare our special agents before they enact a Law Enforcement operation . And that helps us with that aspects practices and just a package so thank you all for being here we have more questions and we will follow up. Another question that has come to mind that last year that is governor of delaware one of our Close Friends that lawsuit tween all 50 states and the tobacco industry. And from the tobacco industry. And for the cost the state was encouraging because of the addiction to tobacco and nicotine. The lawsuit was successful with the flow of revenues but also the foundation was created the Truth Campaign American Legacy Foundation of the founding vice chairman. So we went to work with young people all over the country to figure out in the Multimedia Campaign with that Multimedia Campaign to make sure they did not start it was hugely successful it was hard hitting to the target audience. And we saw the drop of Youth Smoking and has persisted over the years. Find out what works and do more of that. Maybe what is riskier for them . Now we have something to do just that. Thank you for being here with followup questions we appreciate your responsiveness and we appreciate the fact that you made some edits that you thought were appropriate. With 40,000 americans dying from overdoses and thats the tip of the iceberg as tragic as that is in so many others that are ruined at tremendous cost to our communities and families being broken apart. Senator carper talked earlier about all hands on deck. This is that moment. The change the way we are operating to provide information to be all the stop these packages and prosecute those who are perpetrating these acts on their citizens. We have to do much more in terms of prevention as senator carper said in getting people the treatment they need to stop this addiction. All of that is important but heres one thing we know we can do and that is to tighten up our own Postal Service to be able to stop some of the poison from coming in. As was said earlier it will have an Immediate Impact on the price of the street. I will tell you its the cost. Not that its just more powerful but its less costly so again im proud of the staff who worked on this report. I want to particularly thank hsi special agent for his work on this. I will tell you we are going to miss him when he goes back. His contributions were valuable. I want to thank all the staff who were involved in senator carper and would like you to comment on your team who were involved and i will comment on ours briefly. Thank you very much. Our team led by the staff director for subcommittee on the democratic side sitting right behind me and porsha we are grateful to you and roberto marios and thank you all. Not just for the work you up done but for the collaboration and sense of spirit that we have seen demonstrated. On our team i want to thank andy for his work. Will largest Lenny Mancuso i talked about earlier. Andy you complete your name down there. I think them for all their hard work on this report. The hearing record will remain open for 15 days for additional comments or questions to any of the subcommittee members and again thank you for your testimony today and for your service on behalf of our country. This hearing is adjourned. [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations]
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