22 U.S.C. § 8543: Destinations of Diversion…

Summary

The President must name a country a "Destination of Diversion Concern" if he finds that the country lets a lot of goods, services, or technologies described in section 8542(b) get sent through it to Iranian users or middlemen. To decide this, the President looks at how much is diverted, whether the country’s export controls are weak, whether the government won’t or can’t stop the diversion, and whether it won’t or can’t work with the United States to stop it. After naming a country, the President must tell the proper congressional committees and give a list of the specific goods, services, and technologies from section 8542(b) that are being diverted. Within 45 days after that report, the President must require a license under the Export Administration Regulations or the International Traffic in Arms Regulations for those listed items, and the default is to deny such license requests. The President can delay that licensing rule for 12 months if he finds the country is taking steps to build or strengthen export controls, stop diversions, and follow and enforce UN Security Council Resolutions 1696 (2006), 1737 (2006), 1747 (2007), 1803 (2008), and 1929 (2010), and if he starts government-to-government help and reports those steps to Congress. He can renew the delay in extra 12-month blocks with updated findings and reports. Government-to-government help can include agency cooperation, training, and encouraging joining the Proliferation Security Initiative, such as ship boarding agreements. The designation ends when the President certifies to Congress that the country fixed its export controls. Reports can be classified.

Title 22, §8543

Foreign Relations and Intercourse, Source: USLM XML via OLRC

(a)Designation

(1)In general

The President shall designate a country as a Destination of Diversion Concern if the President determines that the government of the country allows substantial diversion of goods, services, or technologies described in section 8542(b) of this title through the country to Iranian end-users or Iranian intermediaries.

(2)Determination of substantial

For purposes of paragraph (1), the President shall determine whether the government of a country allows substantial diversion of goods, services, or technologies described in section 8542(b) of this title through the country to Iranian end-users or Iranian intermediaries based on criteria that include—

(A)the volume of such goods, services, and technologies that are diverted through the country to such end-users or intermediaries;

(B)the inadequacy of the export controls of the country;

(C)the unwillingness or demonstrated inability of the government of the country to control the diversion of such goods, services, and technologies to such end-users or intermediaries; and

(D)the unwillingness or inability of the government of the country to cooperate with the United States in efforts to interdict the diversion of such goods, services, or technologies to such end-users or intermediaries.

(b)Report on designation

Upon designating a country as a Destination of Diversion Concern under subsection (a), the President shall submit to the appropriate congressional committees a report—

(1)notifying those committees of the designation of the country; and

(2)containing a list of the goods, services, and technologies described in section 8542(b) of this title that the President determines are diverted through the country to Iranian end-users or Iranian intermediaries.

(c)Licensing requirement

Not later than 45 days after submitting a report required by subsection (b) with respect to a country designated as a Destination of Diversion Concern under subsection (a), the President shall require a license under the Export Administration Regulations or the International Traffic in Arms Regulations (whichever is applicable) to export to that country a good, service, or technology on the list required under subsection (b)(2), with the presumption that any application for such a license will be denied.

(d)Delay of imposition of licensing requirement

(1)In general

The President may delay the imposition of the licensing requirement under subsection (c) with respect to a country designated as a Destination of Diversion Concern under subsection (a) for a 12-month period if the President—

(A)determines that the government of the country is taking steps—

(i)to institute an export control system or strengthen the export control system of the country;

(ii)to interdict the diversion of goods, services, or technologies described in section 8542(b) of this title through the country to Iranian end-users or Iranian intermediaries; and

(iii)to comply with and enforce United Nations Security Council Resolutions 1696 (2006), 1737 (2006), 1747 (2007), 1803 (2008), and 1929 (2010), and any other resolution that is agreed to by the Security Council and imposes sanctions with respect to Iran;

(B)determines that it is appropriate to carry out government-to-government activities to strengthen the export control system of the country; and

(C)submits to the appropriate congressional committees a report describing the steps specified in subparagraph (A) being taken by the government of the country.

(2)Additional 12-month periods

(A)makes the determinations described in subparagraphs (A) and (B) of paragraph (1) with respect to the country; and

(B)submits to the appropriate congressional committees an updated version of the report required by subparagraph (C) of paragraph (1).

(3)Strengthening export control systems

If the President determines under paragraph (1)(B) that is it appropriate to carry out government-to-government activities to strengthen the export control system of a country designated as a Destination of Diversion Concern under subsection (a), the United States shall initiate government-to-government activities that may include—

(A)cooperation by agencies and departments of the United States with counterpart agencies and departments in the country—

(i)to develop or strengthen the export control system of the country;

(ii)to strengthen cooperation among agencies of the country and with the United States and facilitate enforcement of the export control system of the country; and

(iii)to promote information and data exchanges among agencies of the country and with the United States;

(B)training officials of the country to strengthen the export control systems of the country—

(i)to facilitate legitimate trade in goods, services, and technologies; and

(ii)to prevent terrorists and state sponsors of terrorism, including Iran, from obtaining nuclear, biological, and chemical weapons, defense technologies, components for improvised explosive devices, and other defense articles; and

(C)encouraging the government of the country to participate in the Proliferation Security Initiative, such as by entering into a ship boarding agreement pursuant to the Initiative.

(e)Termination of designation

The designation of a country as a Destination of Diversion Concern under subsection (a) shall terminate on the date on which the President determines, and certifies to the appropriate congressional committees, that the country has adequately strengthened the export control system of the country to prevent the diversion of goods, services, and technologies described in section 8542(b) of this title to Iranian end-users or Iranian intermediaries.

(f)Form of reports

A report required by subsection (b) or (d) may be submitted in classified form.

Notes & Related Subsidiaries

Termination of SectionFor termination of section, see section 8551(a) of this title.

Executive Documents

Delegation of Functions For delegation of functions of President under this section, see Memorandum of President of the United States, Sept. 23, 2010, 75 F.R. 67025, set out as a note under section 8501 of this title.

§8543 Destinations of Diversion Concern

Summary

Title 22, §8543

Notes & Related Subsidiaries

Executive Documents

Citations & Metadata