Licensing regulations would require persons or companies party to legal transactions involving these substances to register with competent authorities regarding the nature and scope of their relevant activities. Producers, manufacturers, and preparers of legal substances would be required to keep records of inventory, production, manufacture, acquisition, and distribution of covered substances, machines, and materials. These persons would also be mandated to report transactions they suspected were linked to the production, manufacture, extraction, or preparation of illicit drugs. Importers and exporters of substances covered in these regulations would be required to obtain an import or export permit from competent authorities. Personal and organizational involvement with the production, preparation, distribution, transportation, storage, importation, exportation, possession of narcotic drugs or psychotropic substances, or conspiracy to commit any of these acts would be punishable offenses. The OAS recommended that member State governments enact or update legislation based on these model regulations which would establish severe penal and civil sanctions for any offenses mentioned above.