Penalising export-import data publication: Govt says to punish ‘illegal sharing’; experts flag lack of clarity

“The aggregate data on exports and imports will actually be published by the Department of Commerce and by all the agencies, there is no issue on that. The problem that we are facing was that some of the exporters and importers came to us and told us that our data is being stolen and is being shared on the Dark Net and is also being shared otherwise, and this is illegal. We don’t want somebody to know at what price did I buy my product and from whom did I buy my product, it’s a competition advantage that I have or it’s a privacy issue that I have. So what we are saying is that people who are going to violate the law, who are going to use this information to sell it to others, we want to punish or we want to make a deterrent for it,” Revenue Secretary Tarun Bajaj said while addressing the CII National Council post-Budget meeting on Saturday.

The Finance Bill has proposed inserting a new Section 135AA in the Customs Act which proposes: “if a person publishes any information relating to the value or classification or quantity of goods entered for export from India, or import into India, or the details of the exporter or importer of such goods under this Act, unless required so to do under any law for the time being in force, he shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to fifty thousand rupees, or with both”.

Some industry experts raised concerns about making publishing of export data a punishable offence as the amendment does not define the exact category of data which if published will become an offence or not. Some experts also said it was not clear if this includes publishing of aggregate trade data by other agencies. For instance, some agencies such as Office of Textiles and Apparel (OTEXA) under the US Department of Commerce and China General Administration of Customs regularly update countrywide export-import data, including trade data of other countries with India.

Sources at the Commerce Ministry clarified that the amendment is aimed at addressing concerns of individual exporters and importers, and would not affect individuals or organisations publishing aggregate data. “This has been done to stop publication or use of individual importer/exporter data or information,” said an official who did not wish to be quoted, noting that the new section would not impact the publishing of aggregate level data.

“The proposed clause will only criminalise the illicit publication of personalised, transaction level information by private entities, which affects the competitive position of Indian businesses in international trade and compromises their data privacy,” the Central Board of Indirect Taxes and Customs (CBIC) tweeted.

Experts noted that exporters have been facing the issue of private players selling commercially sensitive data about individual exporters. Ajay Sahai, director general & CEO, Federation of Indian Export Organisations, said the new section addresses “concerns raised by exporters as few private people are publishing commercially sensitive information about exporters and their foreign buyers.” He added that such players were selling data, including prices at which goods are exported, and that this was resulting in unethical competition and cost-cutting by other exporters to take orders and “thereby depriving the country of better export value”.