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New Standard Contractual Clauses for International Data Transfers and Data Processing Agreements

New Standard Contractual Clauses for International Data Transfers and Data Processing Agreements

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On 4 June 2021, the European Commission adopted two implementing decisions (Decision no. 2021/914 and Decision no. 2021/915) which contain Standard Contractual Clauses for processing and transferring of personal data and are set in line with the General Data Protection Regulation (2016/679) (“GDPR”) with the hope of bringing about a higher level of personal data protection.

Standard Contractual Clauses (“SCCs”) are a contract appendix with provisions that control the operation of personal data, whose main purpose and function is to ensure the appropriate protection safeguards for transferring personal data outside of the European Union/European Economic Area to third countries (international transfers). SCCs are a clear choice for situations in which data processors or controllers are based in countries recognized by the European Commission as “not safe” from the perspective of ensuring an adequate level of personal data protection.

In this particular case, the SCCs adopted in 2001 and 2010 under the Data Protection Directive 95/46/European Commission are being replaced with the new ones, since they are intended as an improvement over the previous standards. The new SCCs are to be proven as a better solution in the field of long and complex processing chains, as they provide greater flexibility. Besides that, unlike the old SCCs, which only applied on the controller to controller and controller to processor transfers outside of the European Union/European Economic Area, the new SCCs include different modules that parties may select, conclude, and complete, depending on the circumstances of the transfer, such as:

  • processor to processor,
  • processor to the controller, or
  • processor to sub-processor.

Finally, the new SCCs take into effect on 27 June 2021, whilst the old SCCs are not to be repealed straight away but 3 months after the entry into force of the new ones. As far as the usage of the old SCCs goes, they may be used for new data transfers/contracts during the transition period (which amounts to the additional 15 months, i.e. 27 December 2022), but only for the performance of contracts concluded between the data exporters and data importers before the date of their repeal.

By Katarina Zivkovic, Senior Associate, and Aleksandra Bijeljac, Trainee, Samardzic, Oreski & Grbovic

Serbia Knowledge Partner

SOG in cooperation with Kinstellar is a full-service business law firm in Serbia that provides foreign and domestic clients with premium-quality legal advice and assistance across a wide range of key areas of corporate law. The firm was founded in 2015 by a group of seasoned, internationally-trained lawyers. SOG has developed a distinctively dynamic culture, bringing together top talent, fostering entrepreneurship, and maintaining exceptional relationships with its clients.

SOG has achieved consistent growth in the volume of its business, accompanied by an exponential increase in the number of hired associate lawyers and the firm’s network of business contacts. SOG has a robust client base of multinationals, investment and private equity firms, and financial institutions. Clients praise SOG for being commercially minded, very responsive and knowledgeable.

Establishing permanent cooperation with Kinstellar is part of realising SOG's long-term development strategy to be the leading provider of legal services in the Western Balkans market.

Firm's website: https://www.kinstellar.com/


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