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lations of the United States by any means, including 
by— 
(A) shipping such items through 1 or more 
foreign countries; or 
(B) by using false information regarding 
the country of origin of such items. 
SEC. 302. 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 Director 
of National Intelligence shall submit to the Secretary of 
Commerce, the Secretary of State, the Secretary of the 
Treasury, and the appropriate congressional committees 
a report that identifies all countries that the Director 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 in 
Iran. 
SEC. 303. DESTINATIONS OF POSSIBLE DIVERSION CON-
CERN AND DESTINATIONS OF DIVERSION 
CONCERN. 
(a) DESTINATIONS OF POSSIBLE DIVERSION CON-
CERN.—
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(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-
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
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shall initiate government-to-government activities de-
scribed in paragraph (3) to strengthen the export 
control systems of the country. 
(3) GOVERNMENT-TO-GOVERNMENT ACTIVITIES 
DESCRIBED.—The government-to-government activi-
ties described in this paragraph include— 
(A) cooperation by agencies and depart-
ments of the United States with counterpart 
agencies and departments in a country des-
ignated as a Destination of Possible Diversion 
Concern under paragraph (1) to— 
(i) develop or strengthen export con-
trol systems in the country; 
(ii) strengthen cooperation and facili-
tate enforcement of export control systems 
in the country; and 
(iii) promote information and data ex-
changes among agencies of the country 
and with the United States; and 
(B) efforts by the Office of International 
Programs of the Department of Commerce to 
strengthen the export control systems of the 
country to— 
(i) facilitate legitimate trade in high- 
technology goods; and
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(ii) prevent terrorists and state spon-
sors of terrorism, including Iran, from ob-
taining nuclear, biological, and chemical 
weapons, defense technologies, components 
for improvised explosive devices, and other 
defense items. 
(b) DESTINATIONS OF DIVERSION CONCERN.— 
(1) DESIGNATION.—The Secretary of Com-
merce shall designate a country as a Destination of 
Diversion Concern if the Secretary, in consultation 
with the Secretary of State and the Secretary of the 
Treasury, determines— 
(A) that the government of the country al-
lows substantial transshipment, reexportation, 
or diversion of items that originated in the 
United States to end-users whose identities can-
not be verified or to entities in Iran; or 
(B) 12 months after the Secretary of Com-
merce designates the country as a Destination 
of Possible Diversion Concern under subsection 
(a)(1), that the country has failed— 
(i) to cooperate with the government- 
to-government activities initiated by the 
United States under subsection (a)(2); or
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(ii) based on the criteria described in 
subsection (a)(1), to adequately strengthen 
the export control systems of the country. 
(2) LICENSING CONTROLS WITH RESPECT TO 
DESTINATIONS OF DIVERSION CONCERN.— 
(A) REPORT ON SUSPECT ITEMS.— 
(i) IN GENERAL.—Not later than 45 
days after the date of the enactment of 
this Act, the Secretary of Commerce, in 
consultation with the Director of National 
Intelligence, the Secretary of State, and 
the Secretary of the Treasury, shall submit 
to the appropriate congressional commit-
tees a report containing a list of items 
that, if the items were transshipped, reex-
ported, or diverted to Iran, could con-
tribute to— 
(I) Iran obtaining nuclear, bio-
logical, or chemical weapons, defense 
technologies, components for impro-
vised explosive devices, or other de-
fense items; or 
(II) support by Iran for acts of 
international terrorism.
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(ii) CONSIDERATIONS FOR LIST.—In 
developing the list required under clause 
(i), the Secretary of Commerce shall con-
sider— 
(I) the items subject to licensing 
requirements under section 742.8 of 
title 15, Code of Federal Regulations 
(or any corresponding similar regula-
tion or ruling) and other existing li-
censing requirements; and 
(II) the items added to the list of 
items for which a license is required 
for exportation to North Korea by the 
final rule of the Bureau of Export Ad-
ministration of the Department of 
Commerce issued on June 19, 2000 
(65 Fed. Reg. 38148; relating to ex-
port restrictions on North Korea). 
(B) LICENSING REQUIREMENT.—Not later 
than 180 days after the date of the enactment 
of this Act, the Secretary of Commerce shall re-
quire a license to export an item on the list re-
quired under subparagraph (A)(i) to a country 
designated as a Destination of Diversion Con-
cern.
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(C) WAIVER.—The President may waive 
the imposition of the licensing requirement 
under subparagraph (B) with respect to a coun-
try designated as a Destination of Diversion 
Concern if the President— 
(i) determines that such a waiver is in 
the national interest of the United States; 
and 
(ii) submits to the appropriate con-
gressional committees a report describing 
the reasons for the determination. 
(c) TERMINATION OF DESIGNATION.—The designa-
tion of a country as a Destination of Possible Diversion 
Concern or a Destination of Diversion Concern shall ter-
minate on the date on which the Secretary of Commerce 
determines, based on the criteria described in subpara-
graphs (A) through (D) of subsection (a)(1), and certifies 
to Congress and the President that the country has ade-
quately strengthened the export control systems of the 
country to prevent transshipment, reexportation, and di-
version of items through the country to end-users whose 
identities cannot be verified or to entities in Iran. 
(d) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as may be 
necessary to carry out this section.
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SEC. 304. REPORT ON EXPANDING DIVERSION CONCERN 
SYSTEM TO COUNTRIES OTHER THAN IRAN. 
Not later than 180 days after the date of the enact-
ment of this Act, the Director of National Intelligence, in 
consultation with the Secretary of Commerce, the Sec-
retary of State, and the Secretary of the Treasury, shall 
submit to the appropriate congressional committees a re-
port that— 
(1) identifies any country that the Director de-
termines may be transshipping, reexporting, or di-
verting items subject to the provisions of the Export 
Administration Regulations to another country if 
such other country— 
(A) is seeking to obtain nuclear, biological, 
or chemical weapons, defense technologies, com-
ponents for improvised explosive devices, or 
other defense items; or 
(B) provides support for acts of inter-
national terrorism; and 
(2) assesses the feasability and advisability of 
expanding the system established under section 303 
for designating countries as Destinations of Possible 
Diversion Concern and Destinations of Diversion 
Concern to include countries identified under para-
graph (1).
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TITLE IV—EFFECTIVE DATE; 
SUNSET 
SEC. 401. EFFECTIVE DATE; SUNSET. 
(a) EFFECTIVE DATE.—Except as provided in sec-
tions 104, 202, and 303(b)(2), the provisions of, and 
amendments made by, this Act shall take effect on the 
date that is 120 days after the date of the enactment of 
this Act. 
(b) SUNSET.—The provisions of this Act shall termi-
nate on the date that is 30 days after the date on which 
the President certifies to Congress that— 
(1) the Government of Iran has ceased pro-
viding support for acts of international terrorism 
and no longer satisfies the requirements for designa-
tion as a state sponsor of terrorism under— 
(A) section 6(j)(1)(A) of the Export Ad-
ministration Act of 1979 (50 U.S.C. App. 
2405(j)(1)(A)) (or any successor thereto); 
(B) section 40(d) of the Arms Export Con-
trol Act (22 U.S.C. 2780(d)); or 
(C) section 620A(a) of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2371(a)); and 
(2) Iran has ceased the pursuit, acquisition, 
and development of nuclear, biological, and chemical
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weapons and ballistic missiles and ballistic missile 
launch technology. 
Attest: 
Secretary.