---
kind: "section"
citation: "22 U.S.C. § 8543"
title: "22"
title_heading: "Foreign Relations and Intercourse"
number: "8543"
heading: "Destinations of Diversion Concern"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/22/8543"
units:
  - "Chapter 92 — Comprehensive Iran Sanctions, Accountability, and Divestment"
  - "Subchapter III — Prevention of Diversion of Certain Goods, Services, and Technologies to Iran"
---

# §8543. Destinations of Diversion Concern

- (a) **Designation—**
  - (1) **In general—** The President shall designate a country as a Destination of [Diversion](/usc/22/8541.md?p=4) Concern if the President determines that the [government](/usc/22/8541.md?p=7) of the country [allows](/usc/22/8541.md?p=1) substantial [diversion](/usc/22/8541.md?p=4) of goods, services, or technologies described in [section 8542(b) of this title](/usc/22/8542.md?p=b) through the country to [Iranian end-users](/usc/22/8541.md?p=11) or [Iranian intermediaries](/usc/22/8541.md?p=12).
  - (2) **Determination of substantial—** For purposes of [paragraph (1)](#a-1), the President shall determine whether the [government](/usc/22/8541.md?p=7) of a country [allows](/usc/22/8541.md?p=1) substantial [diversion](/usc/22/8541.md?p=4) of goods, services, or technologies described in [section 8542(b) of this title](/usc/22/8542.md?p=b) through the country to [Iranian end-users](/usc/22/8541.md?p=11) or [Iranian intermediaries](/usc/22/8541.md?p=12) based on criteria that include—
    - (A) the volume of such goods, services, and technologies that are diverted through the country to such [end-users](/usc/22/8541.md?p=5) or [intermediaries](/usc/22/8541.md?p=8);
    - (B) the inadequacy of the export controls of the country;
    - (C) the unwillingness or demonstrated inability of the [government](/usc/22/8541.md?p=7) of the country to control the [diversion](/usc/22/8541.md?p=4) of such goods, services, and technologies to such [end-users](/usc/22/8541.md?p=5) or [intermediaries](/usc/22/8541.md?p=8); and
    - (D) the unwillingness or inability of the [government](/usc/22/8541.md?p=7) of the country to cooperate with the United States in efforts to interdict the [diversion](/usc/22/8541.md?p=4) of such goods, services, or technologies to such [end-users](/usc/22/8541.md?p=5) or [intermediaries](/usc/22/8541.md?p=8).
- (b) **Report on designation—** Upon designating a country as a Destination of [Diversion](/usc/22/8541.md?p=4) Concern under [subsection (a)](#a), the President shall submit to the [appropriate congressional committees](/usc/22/8511.md?p=2) 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](/usc/22/8542.md?p=b) that the President determines are diverted through the country to [Iranian end-users](/usc/22/8541.md?p=11) or [Iranian intermediaries](/usc/22/8541.md?p=12).
- (c) **Licensing requirement—** Not later than 45 days after submitting a report required by [subsection (b)](#b) with respect to a country designated as a Destination of [Diversion](/usc/22/8541.md?p=4) Concern under [subsection (a)](#a), the President shall require a license under the [Export Administration Regulations](/usc/22/8541.md?p=6) or the [International Traffic in Arms Regulations](/usc/22/8541.md?p=9) (whichever is applicable) to export to that country a good, service, or technology on the list required under [subsection (b)(2)](#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)](#c) with respect to a country designated as a Destination of [Diversion](/usc/22/8541.md?p=4) Concern under [subsection (a)](#a) for a 12-month period if the President—
    - (A) determines that the [government](/usc/22/8541.md?p=7) 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](/usc/22/8541.md?p=4) of goods, services, or technologies described in [section 8542(b) of this title](/usc/22/8542.md?p=b) through the country to [Iranian end-users](/usc/22/8541.md?p=11) or [Iranian intermediaries](/usc/22/8541.md?p=12); 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](/usc/22/8531.md?p=3);
    - (B) determines that it is appropriate to carry out [government](/usc/22/8541.md?p=7)-to-[government](/usc/22/8541.md?p=7) activities to strengthen the export control system of the country; and
    - (C) submits to the [appropriate congressional committees](/usc/22/8511.md?p=2) a report describing the steps specified in [subparagraph (A)](#d-1-A) being taken by the [government](/usc/22/8541.md?p=7) of the country.
  - (2) **Additional 12-month periods—** The President may delay the imposition of the licensing requirement under [subsection (c)](#c) with respect to a country designated as a Destination of [Diversion](/usc/22/8541.md?p=4) Concern under [subsection (a)](#a) for additional 12-month periods after the 12-month period referred to in [paragraph (1)](#d-1) if the President, for each such 12-month period—
    - (A) makes the determinations described in subparagraphs [(A)](#d-1-A) and [(B)](#d-1-B) of paragraph (1) with respect to the country; and
    - (B) submits to the [appropriate congressional committees](/usc/22/8511.md?p=2) an updated version of the report required by [subparagraph (C)](#d-1-C) of paragraph (1).
  - (3) **Strengthening export control systems—** If the President determines under [paragraph (1)(B)](#d-1-B) that is it appropriate to carry out [government](/usc/22/8541.md?p=7)-to-[government](/usc/22/8541.md?p=7) activities to strengthen the export control system of a country designated as a Destination of [Diversion](/usc/22/8541.md?p=4) Concern under [subsection (a)](#a), the United States shall initiate [government](/usc/22/8541.md?p=7)-to-[government](/usc/22/8541.md?p=7) 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](/usc/22/8511.md?p=9) sponsors of terrorism, including [Iran](/usc/22/8531.md?p=3), from obtaining nuclear, biological, and chemical weapons, defense technologies, components for improvised explosive [devices](/usc/22/8511.md?p=7), and other defense articles; and
    - (C) encouraging the [government](/usc/22/8541.md?p=7) 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](/usc/22/8541.md?p=4) Concern under [subsection (a)](#a) shall terminate on the date on which the President determines, and certifies to the [appropriate congressional committees](/usc/22/8511.md?p=2), that the country has adequately strengthened the export control system of the country to prevent the [diversion](/usc/22/8541.md?p=4) of goods, services, and technologies described in [section 8542(b) of this title](/usc/22/8542.md?p=b) to [Iranian end-users](/usc/22/8541.md?p=11) or [Iranian intermediaries](/usc/22/8541.md?p=12).
- (f) **Form of reports—** A report required by subsection [(b)](#b) or [(d)](#d) may be submitted in classified form.

## Source credit

(Pub. L. 111–195, title III, § 303, July 1, 2010, 124 Stat. 1347.)

## Notes

### Termination of Section

For 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.