The Cross-Border Privacy Rules (CBPR) System is an example of a regional interoperability scheme. It facilitates privacy-respecting data flows across member economies of the Asia Pacific Economic Cooperation (APEC). The system actually caters to the different concerns of consumers, businesses and even regulators in a data-driven society based on trust. Here’s the upside:

A member economy of the system can position itself as a trusted steward of data protection. This shift in paradigm comes with the advantage of drawing in investments from other economies, which will also help push local companies and organizations to be globally competitive.

On the compliance side, the system offers the government a fully operational data protection certification system through the accountability agent. Accountability agents monitor a company’s compliance with the APEC framework program requirements, which helps the government to promote full privacy compliance.

The CBPR System creates this bridge of trust, from the consumer to businesses.

If a business is CBPR-certified, consumers can feel safe in entrusting their data, knowing that adequate measures are in place to protect it.

Consumer trust and confidence in the privacy and security of online transactions are critical in enabling member economies to derive benefits from electronic commerce and fully participate in today’s information-driven global economy. The member economies have realized that a key part of earning consumer confidence in e-commerce is cooperation in promoting data privacy protection and the free flow of information within Asia Pacific region.

Only organizations currently certified by an APEC-recognized accountability agent may display a seal, Trustmark, or otherwise claim to participate in the CBPR System.

When businesses become CBPR-certified, they may then transfer personal data in a safe and seamless manner across other certified companies operating in the APEC region, which accounts for about half of global trade. For Philippine companies, this means gaining entry to a much larger market at reduced compliance costs with respect to cross-border data transfers. The ability to transfer information across country borders is a fundamental tool for business in the global economy.

The Philippines’ journey towards application to the CBPR:

The National Privacy Commission (NPC) formally submitted the Philippines’ letter of intent to join the CBPR System last 18 August 2019 in Puerto Varas, Chile.

International anticipation for Philippine participation in the CBPR System, however, has started since the country became a member in the APEC Cross-Border Privacy Enforcement Arrangement (CPEA) in in 2017.

Since then, the Commission has spearheaded preparations for the country’s formal application into the system in collaboration with the Departments of Information and Communications Technology (DICT), Trade and Industry (DTI), and Foreign Affairs (DFA).

Our submission is a perfect embodiment of inter-agency teamwork, achieving a milestone that not only boosted Philippine data privacy and trade but even diplomatic relationship with Asia Pacific economies.

What is next for the Philippines? Enrolment to the CBPR was only the first step towards adoption. As we anticipate the announcement of our acceptance from the Joint Oversight Panel before yearend, it is critical to establish credible and reliable accountability agents. The Commission is now looking at the best suitable scenario for choosing an accountability agent (AA) in the Philippines. We are evaluating the approach that other member economies undertook in nominating their AA. Simultaneous with this, we begin to work with the business community to promote the awareness and benefits of the CBPR certification.

Since the CBPR System was created with the joint effort from industry and civil society to build consumer, business and government-regulator trust in cross-border flows of personal information, we believe that participation from our stakeholders will help the Philippines towards full adoption of the vision and objectives of the APEC Framework and CBPR System.

If you have questions, feel free to contact the NPC via info@privacy.gov.ph.