Introduction
The rise of the global economy in the 21st century has seen digitized trade not only incorporate trade as one of its aspects but also form a key support system for worldwide supply chains. The rise and increased use of digitized services and intellectual property protection have not only changed international trade practices concerning the provision of goods and services but have also impacted how international frameworks and policies control and supervise these processes. Key issues that form a significant part of international digitized trade include rules and regulations for cross-border data flows, customs simplification, and intellectual property protection.
At the multilateral level, the World Trade Organization (WTO) currently leads efforts towards developing binding rules, as well as additional aspirational rules, for digital trade. Among the important items being negotiated is the moratorium on customs duties applied to e-transactions, including data-heavy such as software and digital media. Since 1998, WTO members have maintained a moratorium on customs duties for electronic transmissions (software, digital media), extended at MC13 (Abu Dhabi, February 2024) until MC14 (Yaoundé, Cameroon, 26-29 March 2026) or 31 March 2026, whichever is earlier, amid revenue concerns from developing nations. Parallelly, the WTO Joint Statement Initiative on E-Commerce (91 participants) stabilized text on 26 July 2024 covering paperless trade, e-signatures, consumer protection, cybersecurity, source code limits, with Article 11 banning duties on transmissions (five-year reviews), pending plurilateral WTO adoption.
Data flows are also an integral part of cross-border supply-chain functionality. Data is an essential ingredient of logistics systems, inventory systems, forecasting systems, customs filing systems, and other compliance systems. The International Chamber of Commerce (ICC) and the OECD strongly argued that any kind of non-managed and non-safe data flow between
borders can significantly boost export levels and GDP, but data fragmentation, achieved via localization and privacy regulations, remains a non-tariff barrier to cross-border trade. A higher degree of regulation also results in higher costs and supply-chain inefficiencies, and this is especially true pertaining to MSMEs.
Data Localization Rules—laws requiring data to be hosted or processed within a country—represent problematic areas. India’s DPDP Act 2023 (notified 11 August 2023; Draft Rules 2025) permits cross-border transfers except to government-restricted countries, while sector regulators (e.g., RBI) maintain specific localization, raising free-flow trade concerns.
Supply chain visibility tools like interoperable Single Window solutions–a hub where all documents for regulatory purposes are submitted by traders via a single exemption-free electronic platform–have been widely supported around the world in terms of trade facilitation. The Single Window solution helps in cutting red tape, repudiated submissions, and increasing predictability of Customs clearance by facilitating the distribution of harmonized data to all parties concerned. In particular, under WTO obligations for facilitation in the realm of trade, such systems are encouraged or mandatory for countries.
In China, customs modernization in cross-border e-commerce trade demonstrates how data flows are leveraged in the digital age for easier compliance with customs rules. Under China’s General Administration of Customs, data related to e-commerce imports must be transmitted through connected platforms for transaction and shipment access, and these data networks provide the critical background for customs risk screening and fees determination.
Intellectual property (IP) protection remains integral to digital trade, especially where digital products, software, and innovative services move across international boundaries on a daily basis. The WTO Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement has established basic international standards for the protection of intellectual property rights. More recent digital trade agreements and FTAs now contain provisions that consider the aspect of intellectual property with respect to digital services and innovation based on data.
For businesses operating in digitally enabled international supply chains, compliance must navigate these multilevel requirements:
- Establishing robust data governance frameworks, aligned both to the domestic privacy laws-like GDPR and commitments to free flows of data under trade agreements, will become key. To this effect, organizations will have to map data flows, classify data types, and use risk-based segmentation to differentiate personal data from non-personal data when developing compliance plans.
- Electronically document trade and customs. Utilize paperless workflows for bills of lading, certificates of origin, customs declarations, and electronic invoices, adhering to the digital trade standardization announced at the WTO and Single Window systems. The result of such automation will significantly help in their effective error reduction and quick clearance, traceable for better supply chains.
- Monitor the trending landscape of customs duties and tariff policies. Considering the fact that the WTO moratorium on digital tariffs may shift after 2026, companies that export and import digital goods and services should model cost impacts due to such and ensure tariff classification and valuation for avoidance of duties or penalties not intended.
- Integrate JSI source code protections and TRIPS-compliant digital rights management for software/algorithms in cross-border contracts.
Rajiv Tuli is the Managing Partner at LEGALLANDS LLP, based in New Delhi, with over three decades of professional experience. Having begun his career as a Chartered Accountant and then transitioned into legal practice, he brings a unique blend of financial, tax, and legal expertise.
Areas of Expertise
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Corporate & Commercial Law: Advising on mergers & acquisitions, joint ventures, foreign collaborations, business structuring.
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International Trade & Taxation: Deep involvement in inbound/outbound foreign investment, regulatory compliance, customs & excise issues.
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Project Finance & Infrastructure: Experience with banking, financing, and structuring in infrastructure-intensive sectors.
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Litigation & Dispute Resolution: Tax litigation, arbitration, commercial dispute management.
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Specialized sectors: Education, healthcare, gaming, and non-profit structuring for both Indian and international clients.
Thought Leadership & Writing
Rajiv contributes in-depth commentary and analytical writing on topics such as regulation of foreign investment, digital economy law, Free Trade Agreements (FTAs) including CEPA frameworks, and corporate governance. His writing aims to bridge industry practices with evolving global regulatory trends.
Why His Writing Matters
His multi-disciplinary background—financial, legal, regulatory—allows him to present complex topics in accessible form for businesses, investors and legal professionals alike. His insights are particularly valuable for those engaging in India-UAE trade, corporate establishment or regulatory compliance.
