What Is the International Data Transfer Agreement?

Understanding and complying with international data transfer laws is essential when your business needs to transfer personal data outside the UK. The UK data protection regulator has issued a contract that allows businesses to transfer personal data to certain overseas countries if they meet strict conditions. The UK International Data Transfer Agreement (IDTA) is a data protection contract that facilitates the lawful transfer of personal data from the UK to countries without an adequacy decision from the UK government. This article will explore the IDTA and what your business should consider when using it. 

Why May Businesses Need the International Data Transfer Agreement? 

Businesses frequently transfer personal data to other countries in an increasingly global business market. However, these international transfers have significant legal challenges, especially concerning data protection and privacy.

UK businesses must follow strict rules when sending personal data outside the UK. The UK General Data Protection Regulation (UK GDPR) specifies these rules to protect personal data during international transfers. The UK GDPR generally prohibits sending personal data outside the UK unless your business meets specific conditions. This is because some ‘third countries’ do not have data protection laws that match the UK’s high standards. 

Transferring personal data without proper safeguards, which the law requires, could put individuals’ data at risk. This background explains why you may sometimes need documents such as an IDTA.

What are Adequacy Decisions?

Under the UK GDPR, you can transfer personal data to countries with an ‘adequacy decision’ from the UK government. This means that their data protection laws offer a level of protection comparable to that of the UK. When this is the case, your business can transfer data there without needing extra safeguards. 

Currently, the UK recognises several countries and territories as providing adequate protection. This includes Andorra, Argentina, Canada (commercial organisations only), Faroe Islands, Guernsey, Isle of Man, Israel, Japan (private-sector organisations only), Jersey, New Zealand, Switzerland, Uruguay and all EU member states and EEA countries and EFTA states. The US is also partially covered under the UK-US Data Bridge. However, you should continuously check this list to see if countries remain covered. 

What If There Is No Adequacy Decision? 

Suppose you are transferring data to a country that does not have an adequacy decision. In that case, you need to implement appropriate safeguards, such as the IDTA, to protect personal data. 

One of the main tools your business can use is the IDTA. This acts as a contract to ensure that your data transfer meets the UK’s data protection standards. 

How Does the International Data Transfer Agreement Safeguard Personal Data? 

The IDTA was established under the UK Data Protection Act 2018. It is an important document that UK businesses can use to lawfully transfer personal data to countries that lack an adequacy decision. Its essential purpose is to help you ensure that your data transfers comply with strict UK data protection standards. 

This agreement was needed after the UK left the European Union, requiring a UK-specific solution for data transfers. The EU has its own version of this document, commonly known as ‘Standard Contractual Clauses’. 

What Does the International Data Transfer Agreement Include? 

The IDTA is a flexible, user-friendly document that businesses can use. Its fundamental purpose is to ensure that the organisation in a foreign country receives personal data and protects it by creating binding data privacy obligations they must comply with. The IDTA sets out the legal obligations for both parties to protect personal data. This covers crucial aspects like data security, individual rights protection, and working with authorities such as the ICO. 

The IDTA covers the fundamental bases for a compliant international data transfer, including crucial clauses such as the following:

• the agreement lays out who is involved in the transfer, e.g., the UK business (the data exporter) and the foreign business receiving the data (the data importer). It also details the data you are transferring, including the data types, who it relates to, and why you are transferring it;
• the UK business (the data exporter) and the foreign entity receiving the data (the data importer) have specific responsibilities under the IDTA, including maintaining the security of the data, addressing data subject requests, and cooperating with regulatory authorities such as the ICO. Understanding these roles and obligations is critical to complying with the IDTA’s requirements. Individuals still need to be able to exercise their rights under the UK GDPR regarding international data transfers. This means they can access, correct, or delete their data. The IDTA ensures these rights are protected, even when data is sent to a country without an adequacy decision;
• the IDTA includes provisions detailing each party’s responsibilities in the event of a data breach. This includes the allocation of liability and the procedures for addressing such breaches;
• the IDTA also allows for some flexibility. You can add commercial clauses that fit your business needs. However, any such provisions must not conflict with the mandatory legal requirements;
• the annex sections to the IDTA cover the specifics of the data you seek to transfer, the security measures in place, and the purposes for which the data will be processed. Completing these annexes properly is crucial for tailoring the IDTA to your business’s needs; and
• the IDTA also includes terms for ending the agreement.

Why May Businesses Seek Legal Advice When Using the IDTA? 

Navigating the complexities of international data transfers can be tricky, which is why legal advice is so valuable.

The IDTA is not the only method you may rely on to transfer personal data. Depending on the circumstances, you may be able to rely on other safeguards, such as ‘Binding Corporate Rules’ and other exceptions. 

Working with a lawyer with UK data protection law expertise can help you identify whether you need to use the IDTA, correctly fill it in and implement it. This can help ensure your business complies with the UK GDPR. It can also help mitigate potential legal risks associated with international data transfers. 

A data protection lawyer can also help you assess the risks associated with the data transfer. They can also tailor the IDTA to your specific needs and present it to third parties in foreign countries. They can also advise on additional compliance steps your business might need to take alongside the IDTA, such as a transfer risk assessment.

Key Takeaways

The IDTA is a robust tool for UK businesses needing to transfer personal data to countries without an adequacy decision.  It is a flexible document covering a range of obligations to ensure that personal data transfers to an international country are safe and secure. Seeking legal advice is crucial for navigating the complexities of the IDTA and ensuring your business remains compliant with UK data protection laws.

If you need help with the IDTA or other data protection matters, LegalVision’s experienced data protection lawyers are here to help. As part of our LegalVision membership, you can access lawyers who can answer your questions and review your documents for a low monthly fee. Call us today on 0808 196 8584 or visit our membership page.

Frequently Asked Questions

1. What is the UK GDPR? 

The UK GDPR governs the collection, processing, storage and sharing of personal data within the UK. It ensures the protection of personal data, and gives individuals rights over their data by imposing obligations on organisations that process it.

2. Can I transfer personal data outside of the UK? 

You can transfer personal data outside the UK but must meet certain conditions to protect the data. If the destination country has an adequacy decision, meaning its data protection laws meet UK standards, you can transfer data there. Otherwise, you must use safeguards like the IDTA or other appropriate safeguards recognised under the UK GDPR.