USC Subchapter III

USC Subchapter III
in effect

22 U.S.C. § 8541 Definitions

In this subchapter: (1) AllowThe term “allow”, with respect to the diversion through a country of goods, services, or technologies, means the government of the country knows or has reason to know that the territory of the country is being used for such diversion. (2) Appropriate congressional committeesThe term “appropriate congressional committees” means—(A) the Committee on Banking, Housing, and Urban Affairs, the Committee on Foreign Relations, and the Select Committee on Intelligence of the Senate; and (B) the Committee on Foreign Affairs and the Permanent Select Committee on Intelligence of the House of Representatives. (3) Commerce Control ListThe term “Commerce Control List” means the list maintained pursuant to part 774 of the Export Administration Regulations (or any corresponding similar regulation or ruling). (4) Divert; diversionThe terms “divert” and “diversion” refer to the transfer or release, directly or indirectly, of a good, service, or technology to an end-user or an intermediary that is not an authorized recipient of the good, service, or technology. (5) End-userThe term “end-user”, with respect to a good, service, or technology, means the person that receives and ultimately uses the good, service, or technology. (6) Export Administration RegulationsThe term “Export Administration Regulations” means subchapter C of chapter VII of title 15, Code of Federal Regulations (or any corresponding similar regulation or ruling). (7) GovernmentThe term “government” includes any agency or instrumentality of a government. (8) IntermediaryThe term “intermediary” means a person that receives a good, service, or technology while the good, service, or technology is in transit to the end-user of the good, service, or technology. (9) International Traffic in Arms RegulationsThe term “International Traffic in Arms Regulations” means subchapter M of chapter I of title 22, Code of Federal Regulations (or any corresponding similar regulation or ruling). (10) IranThe term “Iran” includes the Government of Iran and any agency or instrumentality of Iran. (11) Iranian end-userThe term “Iranian end-user” means an end-user that is the Government of Iran or a person in, or an agency or instrumentality of, Iran. (12) Iranian intermediaryThe term “Iranian intermediary” means an intermediary that is the Government of Iran or a person in, or an agency or instrumentality of, Iran. (13) State sponsor of terrorismThe term “state sponsor of terrorism” means any country the government of which the Secretary of State has determined has repeatedly provided support for acts of international terrorism pursuant to—(A) section 4605(j)(1)(A) 11 See References in Text note below. of title 50 (or any successor thereto); (B) section 2780(d) of this title; or (C) section 2371(a) of this title. (14) United States Munitions ListThe term “United States Munitions List” means the list maintained pursuant to part 121 of the International Traffic in Arms Regulations (or any corresponding similar regulation or ruling).

22 U.S.C. § 8542 Identification of countries of concern with respect to the diversion of certain goods, services, and technologies to or through Iran

(a) In generalNot later than 180 days after July 1, 2010, the Director of National Intelligence shall submit to the President, the Secretary of Defense, the Secretary of Commerce, the Secretary of State, the Secretary of the Treasury, and the appropriate congressional committees a report that identifies each country the government of which the Director believes, based on all information available to the Director, is allowing the diversion through the country of goods, services, or technologies described in subsection (b) to Iranian end-users or Iranian intermediaries. (b) Goods, services, and technologies describedGoods, services, or technologies described in this subsection are goods, services, or technologies—(1) that—(A) originated in the United States; (B) would make a material contribution to Iran’s—(i) development of nuclear, chemical, or biological weapons; (ii) ballistic missile or advanced conventional weapons capabilities; or (iii) support for international terrorism; and (C) are—(i) items on the Commerce Control List or services related to those items; or (ii) defense articles or defense services on the United States Munitions List; or (2) that are prohibited for export to Iran under a resolution of the United Nations Security Council. (c) UpdatesThe Director of National Intelligence shall update the report required by subsection (a)—(1) as new information becomes available; and (2) not less frequently than annually. (d) FormThe report required by subsection (a) and the updates required by subsection (c) may be submitted in classified form.

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

(a) Designation(1) In generalThe 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 substantialFor 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 designationUpon 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 requirementNot 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 generalThe 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 periodsThe 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 additional 12-month periods after the 12-month period referred to in paragraph (1) if the President, for each such 12-month period—(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 systemsIf 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 designationThe 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 reportsA report required by subsection (b) or (d) may be submitted in classified form.

22 U.S.C. § 8544 Enforcement authority

The Secretary of Commerce may designate any employee of the Office of Export Enforcement of the Department of Commerce to conduct activities specified in clauses (i), (ii), and (iii) of section 12(a)(3)(B) of the Export Administration Act of 1979 (50 U.S.C. App. 2411(a)(3)(B)) 11 See References in Text note below. when the employee is carrying out activities to enforce— (1) the provisions of the Export Administration Act of 1979 (50 U.S.C. App. 2401 et seq.) 1 (as in effect pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.)); (2) the provisions of this subchapter, or any other provision of law relating to export controls, with respect to which the Secretary of Commerce has enforcement responsibility; or (3) any license, order, or regulation issued under—(A) the Export Administration Act of 1979 (50 U.S.C. App. 2401 et seq.) 1 (as in effect pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.)); or (B) a provision of law referred to in paragraph (2).

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