22 U.S.C. § 8543 — Destinations of Diversion Concern

(a) Designation. The President must designate a country as a "Destination of Diversion Concern" if the President decides that country's government allows substantial diversion — through its territory — of the sensitive goods, services, or technologies described in section 8542(b), reaching Iranian end-users or go-betweens. To decide whether diversion is "substantial," the President must look at: how much is being diverted; how weak the country's export controls are; whether the government is unwilling or unable to stop the diversion; and whether the government is unwilling or unable to work with the United States to stop it. (b) Report on designation. When the President designates a country this way, the President must send a report to the appropriate congressional committees. The report must notify the committees of the designation and list the specific goods, services, and technologies the President believes are being diverted through that country. (c) Licensing requirement. Within 45 days of sending that report, the President must require a license — under the Export Administration Regulations or the International Traffic in Arms Regulations, whichever applies — before anyone can export a listed item to that country. Any license application is presumed to be denied. (d) Delay of imposition of licensing requirement. The President may delay this licensing rule for a designated country for 12 months at a time. To delay it, the President must find that the country's government is taking steps to build or strengthen its export control system, to stop diversion of the listed goods to Iran, and to follow and enforce several named United Nations Security Council resolutions on Iran. The President must also find it is appropriate to carry out government-to-government work to strengthen that country's export controls, and must send the committees a report describing the steps being taken. The President can renew the delay for more 12-month periods, as long as the same findings are made and an updated report is sent each time. When the President decides government-to-government work is appropriate, the United States must begin such work. This can include: federal agencies cooperating with their counterparts in that country to build export controls, strengthen enforcement cooperation, and exchange information; training that country's officials to support legitimate trade while blocking terrorists and state sponsors of terrorism from getting weapons and bomb components; and encouraging the country to join the Proliferation Security Initiative, including by signing a ship-boarding agreement. (e) Termination of designation. The designation ends once the President determines, and certifies to the congressional committees, that the country has sufficiently strengthened its export controls to prevent diversion to Iran. (f) Form of reports. Reports required by subsection (b) or (d) may be submitted in classified form.