No, these are not drugs.
It's a roll of charcoal and a bag of copal.
You light the charcoal and place the copal on top.
The smoke fills the space with lovely earthy holy scent.
I'm very thankful Katie brought it back for me from Mexico.
Read her post on Incense and Stuff here.
Please forgive my terrible cell phone pictures of the process, I needed to document and share the images but couldn't find my camera quick enough.