NASSCOM Paper on 'Cryptographic Information Security and Export Controls in India'

Terms of use

Terms of Use

The use of this site and the content contained therein is governed by the Terms of Use. When you use this site you acknowledge that you have read the Terms of Use and that you accept and will be bound by the terms hereof and such terms as may be modified from time to time.

All text, graphics, audio, design and other works on the site are the copyrighted works of nasscom unless otherwise indicated. All rights reserved.
Content on the site is for personal use only and may be downloaded provided the material is kept intact and there is no violation of the copyrights, trademarks, and other proprietary rights. Any alteration of the material or use of the material contained in the site for any other purpose is a violation of the copyright of nasscom and / or its affiliates or associates or of its third-party information providers. This material cannot be copied, reproduced, republished, uploaded, posted, transmitted or distributed in any way for non-personal use without obtaining the prior permission from nasscom.
The nasscom Members login is for the reference of only registered nasscom Member Companies.
nasscom reserves the right to modify the terms of use of any service without any liability. nasscom reserves the right to take all measures necessary to prevent access to any service or termination of service if the terms of use are not complied with or are contravened or there is any violation of copyright, trademark or other proprietary right.
From time to time nasscom may supplement these terms of use with additional terms pertaining to specific content (additional terms). Such additional terms are hereby incorporated by reference into these Terms of Use.

Disclaimer

The Company information provided on the nasscom web site is as per data collected by companies. nasscom is not liable on the authenticity of such data.
nasscom has exercised due diligence in checking the correctness and authenticity of the information contained in the site, but nasscom or any of its affiliates or associates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this site. The information from or through this site is provided "as is" and all warranties express or implied of any kind, regarding any matter pertaining to any service or channel, including without limitation the implied warranties of merchantability, fitness for a particular purpose, and non-infringement are disclaimed. nasscom and its affiliates and associates shall not be liable, at any time, for any failure of performance, error, omission, interruption, deletion, defect, delay in operation or transmission, computer virus, communications line failure, theft or destruction or unauthorised access to, alteration of, or use of information contained on the site. No representations, warranties or guarantees whatsoever are made as to the accuracy, adequacy, reliability, completeness, suitability or applicability of the information to a particular situation.
nasscom or its affiliates or associates or its employees do not provide any judgments or warranty in respect of the authenticity or correctness of the content of other services or sites to which links are provided. A link to another service or site is not an endorsement of any products or services on such site or the site.
The content provided is for information purposes alone and does not substitute for specific advice whether investment, legal, taxation or otherwise. nasscom disclaims all liability for damages caused by use of content on the site.
All responsibility and liability for any damages caused by downloading of any data is disclaimed.
nasscom reserves the right to modify, suspend / cancel, or discontinue any or all sections, or service at any time without notice.

For any grievances under the Information Technology Act 2000, please get in touch with Grievance Officer, Mr. Anirban Mandal at data-query@nasscom.in.

New

See all

No notification found.

NASSCOM Paper on 'Cryptographic Information Security and Export Controls in India'

Garima Prakash

@GarimaP

October 5, 2021

Public Policy

207

NASSCOM has published a paper titled ‘Cryptographic Information Security and Export Controls in India’, highlighting the challenges faced by the industry in classifying cryptographic information security items, software, or technology under the relevant category of the SCOMET list, the approaches adopted by other jurisdictions towards controlling cryptographic information security and suggestions on adopting some of these best practices in India.

Background:

The increasing commercial availability of cryptography as an information security tool in consumer applications, led to the classification of information security products and technology as “dual-use”. Consequently, information security products and technology are subject to export control restrictions under the export control regime of India and many other countries. India maintains controls over the exports of information security products and technology through Category 8A5 Part 2 of the SCOMET List. Cryptographic information security items, software, and technology, being exported from India, require an export licence from the Government of India, if they fall under this category.

Suggestions made:

1. Guidance is needed from the government for appropriate classification by the industry under the relevant text of Category 8A5 Part 2 of the SCOMET list. Specifically, there is a need for clarity on various terms and phrases, including:

What would constitute ‘of potential interest to a wide range of individuals and businesses’ as given under Note to Cryptography Note of Category 8A502 of the SCOMET list.

Whether ‘cryptographic functionality cannot easily be changed by the user’ as given under Cryptography Note would include turning on and off the encryption facility.

The meaning of primary function and non-primary functions as given under Category 8A502 a. of the SCOMET list.

2. There are approaches from other countries which can be adapted by India, given our early stage in the export control regime, which will improve the overall regime as well as assist the industry in complying with obligations. These include:

Introduction of bulk licences for certain cryptographic information security items, software or technology along with appropriate safeguards in the form of post-reporting requirements, implementation of internal compliance programme etc. This will significantly reduce the compliance burden on the industry.

Creation of a helpdesk to promptly assist the industry with classification queries. This will assist the industry in avoiding mis-classification or non-classification errors.

Complete digitisation of the SCOMET licensing process, that will enable the applicant to track the application status in real-time, submit and exchange all relevant application related documents in a centralised system and enable a two-way communication between applicant and licensing authority for timely resolution of gaps in the application.

Way forward:

This paper will form the basis of our advocacy efforts with the government, for the improvement of India’s export control regime generally, and as applicable to cryptographic information security, specifically.

The study has been attached with this post. For more information, kindly write to garima @nasscom.in.

We look forward to a continued engagement with the industry on issues related to export control laws applicable to cryptographic information security.

exportcontrol encryption dual-use SCOMET DGFT WA

Disclaimer

That the contents of third-party articles/blogs published here on the website, and the interpretation of all information in the article/blogs such as data, maps, numbers, opinions etc. displayed in the article/blogs and views or the opinions expressed within the content are solely of the author's; and do not reflect the opinions and beliefs of NASSCOM or its affiliates in any manner. NASSCOM does not take any liability w.r.t. content in any manner and will not be liable in any manner whatsoever for any kind of liability arising out of any act, error or omission. The contents of third-party article/blogs published, are provided solely as convenience; and the presence of these articles/blogs should not, under any circumstances, be considered as an endorsement of the contents by NASSCOM in any manner; and if you chose to access these articles/blogs , you do so at your own risk.

Download Attachment

Garima Prakash

Manager, Public Policy and Government Affairs

Reach out to me for all things policy about e-commerce, international trade, export controls, start-ups and fintech