mined by the agency that originally ob-
tained the information, and consistent with 
section 716 of title 31, United States 
Code, be made available only by that agen-
cy, upon request, to the Comptroller Gen-
eral of the United States or to any officer 
or employee of the Government Account-
ability Office authorized by the Comp-
troller General to have access to such in-
formation. 
(ii) PROHIBITION ON FURTHER DIS-
CLOSURE.—No officer or employee of the 
Government Accountability Office may dis-
close, except to the Congress in accordance 
with this paragraph, any such information 
that is submitted on a confidential basis or 
from which any individual can be identi-
fied. 
(4) INFORMATION SHARING.— 
(A) IN
GENERAL.—Any department or 
agency that obtains information that is relevant 
to the enforcement of the Export Administra-
tion Regulations, including information per-
taining to any investigation, shall furnish such 
information to each department or agency with 
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PWALKER on DSK8KYBLC1PROD with BILLS
enforcement responsibilities under this section 
to the extent consistent with the protection of 
intelligence, counterintelligence, and law en-
forcement sources, methods, and activities. 
(B) EXCEPTIONS.—The provisions of this 
paragraph shall not apply to information sub-
ject to the restrictions set forth in section 9 of 
title 13, United States Code, and return infor-
mation, as defined in subsection (b) of section 
6103 of the Internal Revenue Code of 1986 (26 
U.S.C. 6103(b)), may be disclosed only as au-
thorized by that section. 
(C) EXCHANGE
OF
INFORMATION.—The 
Secretary of Commerce and the Secretary of 
Homeland Security, upon request, shall ex-
change any licensing and enforcement informa-
tion with each other that is necessary to facili-
tate enforcement efforts under this section. 
(D) INTERAGENCY CONSULTATIONS.—The 
Secretary of Commerce, the Attorney General, 
and the Secretary of Homeland Security shall 
consult on a continuing basis with one another 
and with the head of other departments and 
agencies that obtain information subject to this 
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PWALKER on DSK8KYBLC1PROD with BILLS
paragraph, in order to facilitate the exchange of 
such information. 
(d) REPORTING REQUIREMENTS.—In the administra-
tion of this section and the Export Administration Regula-
tions, reporting requirements shall be so designed as to 
reduce the cost of reporting, recordkeeping, and export 
documentation required under this section and the Export 
Administration Regulations to the extent feasible con-
sistent with effective enforcement and compilation of use-
ful trade statistics. Reporting, recordkeeping, and export 
documentation requirements shall be periodically reviewed 
and revised in the light of developments in the field of 
information technology. 
(e) SIMPLIFICATION
OF REGULATIONS.—The Sec-
retary of Commerce, in consultation with appropriate de-
partments and agencies of the United States and with ap-
propriate technical advisory committees established pursu-
ant to section 5(h) of the Export Administration Act of 
1979, shall review the Export Administration Regulations, 
including the commodity control list, in order to determine 
how compliance with the provisions of the Export Admin-
istration Regulations can be facilitated by simplifying the 
Export Administration Regulations, by simplifying or 
clarifying the commodity control list, or by any other 
means. 
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PWALKER on DSK8KYBLC1PROD with BILLS
(f) FORFEITURE.— 
(1) IN GENERAL.—Any tangible items lawfully 
seized under subsection (a) by designated officers or 
employees shall be subject to forfeiture to the United 
States. 
(2) PROCEDURES.—Any seizure or forfeiture 
under this subsection shall be made in accordance 
with the procedures set forth in section 981 of title 
18, United States Code. 
(g) UNDERCOVER INVESTIGATION OPERATIONS.— 
(1) USE OF FUNDS.—In the case of any under-
cover investigative operation conducted by the Office 
of Export Enforcement of the Department of Com-
merce that is necessary for the detection and pros-
ecution of a violation of the Export Administration 
Regulations— 
(A) funds made available for export en-
forcement under this section may be used to 
purchase property, buildings, and other facili-
ties, and to lease equipment, conveyances, and 
space within the United States, without regard 
to sections 1341 and 3324 of title 31, United 
States Code, section 8141 of title 40, United 
States Code, sections 3732(a) and 3741 of the 
Revised Statutes of the United States (41 
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PWALKER on DSK8KYBLC1PROD with BILLS
U.S.C. 11(a) and 22), and sections 304(a), 
304A, 304B, 304C, and 305 of the Federal 
Property and Administrative Services Act of 
1949 (41 U.S.C. 254(a), 254b, 254c, 254d, and 
255); 
(B) funds made available for export en-
forcement under this section may be used to es-
tablish or to acquire proprietary corporations or 
business entities as part of an undercover oper-
ation, and to operate such corporations or busi-
ness entities on a commercial basis, without re-
gard to sections 1341, 3324, and 9102 of title 
31, United States Code; 
(C) funds made available for export en-
forcement under this section and the proceeds 
from undercover operations may be deposited in 
banks or other financial institutions without re-
gard to section 648 of title 18, United States 
Code, and section 3302 of title 31, United 
States Code; and 
(D) the proceeds from undercover oper-
ations may be used to offset necessary and rea-
sonable expenses incurred in such operations 
without regard to section 3302 of title 31, 
United States Code, if the Secretary of Com-
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PWALKER on DSK8KYBLC1PROD with BILLS
merce certifies in writing that the action au-
thorized by subparagraph (A), (B), (C), or (D) 
for which the funds would be used is necessary 
for the conduct of the undercover operation. 
(2) DISPOSITION OF BUSINESS ENTITIES.—If a 
corporation or business entity established or ac-
quired as part of an undercover operation has a net 
value of more than $250,000 and is to be liquidated, 
sold, or otherwise disposed of, the Secretary of Com-
merce shall report the circumstances to the Comp-
troller General of the United States as much in ad-
vance of such disposition as the Secretary of Com-
merce determines is practicable. The proceeds of the 
liquidation, sale, or other disposition, after obliga-
tions incurred by the corporation or business enter-
prise are met, shall be deposited in the Treasury of 
the United States as miscellaneous receipts. Any 
property or equipment purchased pursuant to para-
graph (1) may be retained for subsequent use in un-
dercover operations under this section. When such 
property or equipment is no longer needed, it shall 
be considered surplus and disposed of as surplus 
government property. 
(3) DEPOSIT OF PROCEEDS.—As soon as the 
proceeds from an undercover investigative operation 
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of the Office of Export Enforcement of the Depart-
ment of Commerce with respect to which an action 
is authorized and carried out under this subsection 
are no longer needed for the conduct of such oper-
ation, the proceeds or the balance of the proceeds re-
maining at the time shall be deposited into the 
Treasury of the United States as miscellaneous re-
ceipts. 
(4) AUDIT AND REPORT.— 
(A) AUDIT.—The Secretary of Commerce 
shall conduct a detailed financial audit of each 
closed undercover investigative operation of the 
Office of Export Enforcement of the Depart-
ment of Commerce. Not later than 180 days 
after an undercover operation is closed, the Sec-
retary of Commerce shall submit to the Con-
gress a report on the results of the audit. 
(B) REPORT.—The Secretary of Commerce 
shall submit to the appropriate congressional 
committees, in the Secretary’s annual report to 
the Congress on the administration of export 
controls and the Export Administration Regula-
tions, the following additional information: 
(i) The number of undercover inves-
tigative operations pending as of the end of 
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PWALKER on DSK8KYBLC1PROD with BILLS
the period for which the report is sub-
mitted. 
(ii) The number of undercover inves-
tigative operations commenced in the 1- 
year period preceding the period for which 
the report is submitted. 
(iii) The number of undercover inves-
tigative operations closed in the 1-year pe-
riod preceding the period for which such 
report is submitted and, with respect to 
each such closed undercover operation, the 
results obtained and any civil claims made 
with respect to the operation. 
(5) DEFINITIONS.—In this subsection: 
(A) CLOSED.—The term ‘‘closed’’, with re-
spect to an undercover investigative operation, 
refers to the earliest point in time at which all 
criminal proceedings (other than appeals) pur-
suant to the investigative operation are con-
cluded, or covert activities pursuant to such op-
eration are concluded, whichever occurs later. 
(B) UNDERCOVER
INVESTIGATIVE
OPER-
ATION AND UNDERCOVER OPERATION.— 
(i) IN GENERAL.—The terms ‘‘under-
cover investigative operation’’ and ‘‘under-
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PWALKER on DSK8KYBLC1PROD with BILLS
cover operation’’ mean any undercover in-
vestigative operation conducted by the Of-
fice of Export Enforcement of the Depart-
ment of Commerce— 
(I) in which the gross receipts 
(excluding interest earned) exceed 
$25,000, or expenditures (other than 
expenditures for salaries of employees) 
exceed $75,000; and 
(II) which is exempt from section 
3302 or 9102 of title 31, United 
States Code. 
(ii) EXCEPTION.—Subclauses (I) and 
(II) of clause (i) shall not apply with re-
spect to the report to the Congress re-
quired by paragraph (4)(B). 
(h) AUTHORIZATION FOR BUREAU OF INDUSTRY AND 
SECURITY.—The Secretary of Commerce may authorize, 
without fiscal year limitation, the expenditure of funds 
transferred to, paid to, received by, or made available to 
the Bureau of Industry and Security of the Department 
of Commerce as a reimbursement in accordance with sec-
tion 9703 of title 31, United States Code (as added by 
Public Law 102–393). 
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PWALKER on DSK8KYBLC1PROD with BILLS
SEC. 213. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated such sums 
as may be necessary to carry out this subtitle for each 
fiscal year. 
SEC. 214. DEFINITIONS. 
In this subtitle: 
(1) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional com-
mittees’’ means the Committee on Foreign Affairs of 
the House of Representatives and the Committee on 
Foreign Relations of the Senate. 
(2) EXPORT ADMINISTRATION REGULATIONS.— 
The term ‘‘Export Administration Regulations’’ 
means the Export Administration Regulations as 
maintained and amended under the authority of the 
International Emergency Economic Powers Act and 
codified, as of the date of the enactment of this Act, 
in subchapter C of chapter VII of title 15, Code of 
Federal Regulations. 
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Subtitle B—Prevention of Transfer 
of Sensitive Items to Countries 
of Concern 
SEC. 221. IDENTIFICATION OF LOCATIONS OF CONCERN 
WITH RESPECT TO TRANSSHIPMENT, RE-
EXPORTATION, OR DIVERSION OF CERTAIN 
ITEMS TO IRAN. 
Not later than 180 days after the date of the enact-
ment of this Act, and annually thereafter, the President 
shall submit to the appropriate congressional committees 
a report that identifies all countries that the President de-
termines are of concern with respect to transshipment, re-
exportation, or diversion of items subject to the provisions 
of the Export Administration Regulations to an entity 
owned or controlled by the Government of Iran. 
SEC. 222. DESTINATIONS OF POSSIBLE DIVERSION CON-
CERN AND DESTINATIONS OF DIVERSION 
CONCERN. 
(a) DESTINATIONS OF POSSIBLE DIVERSION CON-
CERN.— 
(1) DESIGNATION.—The Secretary of Com-
merce shall designate a country as a Destination of 
Possible Diversion Concern if the Secretary, in con-
sultation with the Secretary of State and the Sec-
retary of the Treasury, determines that such des-
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PWALKER on DSK8KYBLC1PROD with BILLS
ignation is appropriate to carry out activities to 
strengthen the export control systems of that coun-
try based on criteria that include— 
(A) the volume of items that originated in 
the United States that are transported through 
the country to end-users whose identities cannot 
be verified; 
(B) the inadequacy of the export and reex-
port controls of the country; 
(C) the unwillingness or demonstrated in-
ability of the government of the country to con-
trol diversion activities; and 
(D) the unwillingness or inability of the 
government of the country to cooperate with the 
United States in interdiction efforts. 
(2) STRENGTHENING
EXPORT
CONTROL
SYS-
TEMS
OF
DESTINATIONS
OF
POSSIBLE
DIVERSION 
CONCERN.—If the Secretary of Commerce designates 
a country as a Destination of Possible Diversion 
Concern under paragraph (1), the United States 
shall initiate government-to-government activities de-
scribed in paragraph (3) to strengthen the export 
control systems of the country. 
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