'Sec 135AA aimed at hackers of commercially sensitive trade-related data'

'By selling commercially sensitive information, the hackers adversely impact the competitive position of Indian exporters in international trade,' says Revenue Secretary

The Finance Ministry has proposed a new section, 135AA, in the Customs Act, on request of importers and exporters, Revenue Secretary Tarun Bajaj told Business Standard, and added that the provision is aimed at ‘bad state actors’ and ‘hackers’ who illicitly mine commercially identifying and sensitive information and are engaged in selling transactional information.

“A number of websites have been identified by the CBIC who are selling data containing the name of exporter/importer, description of goods, quantity, value, classification etc. By selling commercially sensitive information, including the names of importers and exporters, they adversely impact the competitive position of Indian exporters in international trade,” Bajaj said on Saturday.

As per the new section, which will be brought in with an amendment to the Customs Act through the Finance Bill 2022, if a person publishes 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, he shall be punishable for a jail-term of upto 6 months or a fine upto Rs 50,000 or both.

The new section 135AA will not be applicable if a person or entity is required to publish such information by law or if the government itself releases such data.

Bajaj emphasised that the section is aimed at hackers and not at legitimate private trade bodies, who themselves had asked for these safeguards. Exporters and importers had requested the Finance and Commerce ministries for such provision in the run-up to the budget.

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“The provision seeks to empower the Customs to combat bad actors and hackers who illicitly mine commercially identifying and sensitive information and are engaged in selling transactional information on the dark web or through websites,” Bajaj said.

On Saturday, Congress’ Lok Sabha MP Shashi Tharoor tweeted a screenshot of the proposed Section 135AA and said: “This is incomprehensible. How can a democracy restrict discussion of publicly available data on the country’s trade? The BJP can bulldoze even such preposterous laws through Parliament - but surely the courts will find it unconstitutional?”

The Central Board of Indirect taxes and Customs replied on twitter and said: “Hon’ble MP’s attention is invited to the clause proposed as sub-section. 135 AA (2) under which Government agencies, such as, Department of Commerce, will continue to uninterruptedly publish data as per current practice. 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.”