Cross-Border Data Transfer – New Provisions Clarify Contract Procedure for Personal Information Export | Dezan Shira & Associates

On June 30, China’s top cybersecurity department, the Cyberspace Administration of China (CAC), released a draft set of provisions stipulating the requirements for using a “standard contract” to conduct cross-border data transfer (CBDT).

The new provisions, titled the Standard Contract Provisions on the Export of Personal Information (Draft for Comment) (“Standard Contract Provisions”) clarify how companies can transfer personal information (PI) outside of China by signing a “Standard Contract” with the overseas recipient of the data – a much simpler procedure that does not require an external audit. 

Under China’s Personal Information Protection Law (PIPL), which came into effect on November 1, 2021, companies are required to undergo certain procedures or receive approval from the CAC in order to transfer certain types of data and quantities of PI outside of China. The Standard Contract is one of a few different mechanisms offered in the PIPL to receive approval for CBDT. 

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