Contractual provision that governs the subsequent sharing of personal information by a recipient with another third party located further down the supply chain. Onward data transfer clause is a vital component of the security agreements required under the Personal Information Protection Law for any organization that exports data. It ensures that the chain of accountability is not broken when data is passed from a foreign recipient to their own subcontractors or affiliates.
This clause mandates that the original recipient must ensure that any subsequent receiver provides the same level of protection as required by the initial contract. It creates a nested set of obligations that follows the data wherever it goes, regardless of the number of transfers. The boundary of this clause is the point at which the data is either deleted, anonymized, or returned to the original domestic controller.
Legal requirement for the first recipient to act as a guarantor for the compliance of all future handlers of the information. Onward data transfer clause requires that the foreign partner obtain written consent from the original domestic sender before any further transfer can occur. This consent is usually conditional on the downstream party signing a contract that mirrors the terms of the original transfer agreement.
The first recipient must perform its own due diligence on the downstream partner and provide the domestic sender with a report on their security capabilities. If a downstream party suffers a data breach, the first recipient is often held liable for the failure to supervise their subcontractors. This ensures that the domestic sender maintains a clear line of sight to everyone who has access to the data.
Technical and administrative controls that must be maintained throughout the lifecycle of the data as it moves between different entities. Onward data transfer clause specifies the minimum security standards that every party in the chain must implement, including encryption, access control, and incident response procedures. These standards must be consistent with the national guidelines of the People’s Republic of China, even if the data is being processed in a different jurisdiction.
The clause also includes a right to audit for the original domestic sender, allowing them to inspect the systems of any downstream party at any time. This prevents the degradation of security standards as the data moves further away from the source. Regular testing of the security measures is a common requirement for maintaining the validity of the transfer agreement.
Standardized language provided by the cyberspace authorities is the primary method for ensuring the legality of these onward transfers. Onward data transfer clause is often part of a larger set of standard contractual clauses that are pre approved by the state for use in international data sharing. These clauses are designed to be non negotiable, ensuring that all foreign recipients are held to the same high standard.
The contract must also define the specific purposes for which the downstream party can use the data and the duration for which they can keep it. Any deviation from these terms is a breach of contract and can lead to the termination of the entire data sharing relationship. The use of these clauses provides a clear legal framework for companies to manage the risks of global data flows.
It ensures that the privacy rights of the citizens are protected even when their data is used by multiple organizations across the world.
Cross-border personal information transfers from China require calculating annual cumulative data subject volumes from January 1 to determine filing tier exemptions.
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