New UK International Data Transfer Agreement

Vlad Arutyunyan
Millie Pierce

On 2 February 2022 the UK Government’s Department for Culture, Media and Sport put before Parliament the International Data Transfer Agreement (IDTA), an addendum to the new EU standard contractual clauses (New EU SCCs) (Addendum) and various transitional provisions. The documents can be accessed here.

The IDTA has been created as the UK equivalent to the New EU SCCs for international data transfers. The EU commission modernised the EU SCCs on 4 June 2021. The New EU SCCs can be used by parties to incorporate standardised clauses into their contracts. These clauses deal with different sections, for instance for data controllers and processors. The IDTA is a standalone agreement that will apply to all transfers of personal data outside of the UK regardless of whether a party is a data controller or processor. Whilst there are a few exceptions, this includes data importers who are subject to the rules of the UK GDPR.

When the New EU SCCs were published on 4 June 2021, they didn’t apply in the UK due to Brexit. The IDTA and the Addendum have been created to replace the current SCCs used in the UK. The IDTA will take the binding effects of the European Court of Justice Schrems II[1] decision into account.

By addressing the necessary UK legal requirements, the Addendum will allow data exporters who continue to operate in the EU and UK to rely on the New EU SCCs without the need for an IDTA. The intent is to simplify the process for data exporters and will be supported by further guidance from the ICO on the risk protection steps that data exporters will need to undertake when transferring data.

The introduction of the IDTA and Addendum has been welcomed by the ICO, they have stated that “The IDTA and Addendum will also help to support the UK’s digital economy, by enabling the global flow of people’s personal data in order to deliver goods and services.

The ICO will continue to develop the following guidance to provide help and support for businesses:

  • Clause by clause guidance to the IDTA and Addendum.
  • Guidance on how to use the IDTA.
  • Guidance on transfer risk assessments.
  • Further clarifications to the international transfers guidance.

The ICO have stated that the IDTA and the Addendum “are immediately of use to organisations transferring personal data outside of the UK“. The ICO hopes, subject to Parliamentary approval, that these changes will grant parties more confidence when entering into data transfer agreements. The ICO have confirmed that if approved, the IDTA, Addendum and transitional provisions will come into force on 21 March 2022.

[1] Previously EU to US transfer of data was permitted under the Privacy Shield Decision. This was ruled to be illegal and stricter requirement for data transfer were expected based on the SCCs.