CBIC Clarifies Proposed Clause in Customs Act Focused at Hackers and Criminals

The government claims that a proposed clause in the customs statute making the disclosure of specifics of export data a criminal offence is intended at hackers and criminals, not legitimately released data.

The proposed clause, according to the Central Board of Indirect Taxes and Customs, will only criminalize the unauthorized release of individualized, transaction-level information by private businesses who infringe data privacy.

It stated that legally published data was not prohibited.

In her Budget, Finance Minister Nirmala Sitharaman proposed amending the Customs Act by inserting Section 135AA, implying that publishing any information relating to the value, classification, quantity of goods being exported from or imported into India, or the details of the exporter or importer, were punishable offences attracting a jail term of up to six months or a fine of up to Rs 50,000 or both.

In response to a tweet by Congress MP Shashi Tharoor, the CBIC said, “The proposed clause will only criminalize the illicit publication of personalized, transaction level information by private entities, which affects the competitive position of Indian businesses in international trade and compromises their data privacy.”

Tharoor expressed his displeasure with the move in a tweet, calling it “incomprehensible.”

“I’m at a loss for words. How can a democracy prohibit the debate of publicly available trade data? Even if the BJP can ram through such ridiculous legislation in Parliament, the courts will very certainly rule it unconstitutional.” Tharoor remarked.

According to the CBIC, this was done in response to industry requests because numerous websites were selling data identifying the identity of the exporter or importer, description of goods, amount, value, categorization, and other commercially sensitive information that impacted their trade.