RESTRICTED  
  
S/C/W/464  
 
2 February 2024 
(24-0833) Page: 1/2 
Council for Trade in Services  Original: English  
 
  
COMMUNICATION FROM BRUNEI DARUSSALAM  
REVIEW OF ARTICLE II (MFN) EXEMPTIONS  
Written answers by Brunei Darussalam  to the questions from  Hong Kong China,   
Australia, the Republic of Korea and Switzerland  (S/C/W/431 ) 
The following communication dated 1 February 2024, from the delegation of Brunei Darussalam  is 
being circulated to the Members of the Council for Trade in Services.  
 
_______________  
 
 
1  QUESTION 1 FROM HONG KONG, CHINA (GENERAL QUESTION , S/C/W/431 , PAGE 2)  
For each of the MFN exemptions listed in the Secretariat's sectoral compilation 
(JOB/SERV/29/Rev.2), we would appreciate it if all Members maintaining any MFN exemptions would 
respond to the following general questions:  
 
Please indicate whether the exempt ion has been used for any actual measure since the previous 
review in 2016/17, and if so provide information on the use. If the exemption has not been used, 
please explain why the conditions which created the need for the exemption still prevail, and descr ibe 
whether any action has been taken or is being contemplated to eliminate such exemption. Please 
explain why if not.  
 
Answer  from Brunei Darussalam:  
These exemptions are still in place and are applied to our trading partners.  
 
2  QUESTION 3 FROM THE REPUBLIC OF KOREA (S/C/W/431 , PAGE 2)  
Regarding the MFN exemption measures, "Preferences for entry and temporary stay of workers from 
traditional sources of supply.", please confirm if the exemption measure pertains to measures 
affecting nat ural persons seeking access to the employment market, which are carved out by 
paragraph 2 of Annex on Movement of Natural Persons Supplying Services under the Agreement, 
irrespective of the period of stay.  
 
Answer  from Brunei Darussalam:  
This MFN exemptio n applies also to the movement of natural persons supplying services under the 
GATS.  
 
3  QUESTION 36 FROM AUSTRALIA (S/C/W/431 , PAGE 6)  
Do the conditions that created the need for the MFN exemptions still prevail? Could the Member 
please provide an update as to whether it is considering removal of the MFN exemption?  
 S/C/W/464  
 
- 2 - 
 
  Answer  from Brunei Darussala m:  
Yes, this MFN exemption is still necessary  as the establishment of foreign law firms in Brunei 
Darussalam is based on case -by-case approval . 
Brunei Darussalam maintains to keep the possibility of removing this exemption under review.  
 
4  QUESTION 85 FROM AUSTRALIA (S/C/W/431 , PAGE 11) 
Do the conditions that created the need for these MFN exemptions still prevail? Could the Member 
please provide an update as to whether it is considering removal of the MFN exemptions?  
 
Answer  from Brunei Darussalam:  
Yes, the MFN exemptions still prevail. There are no plans in the current juncture to remove the MFN 
exemptions.  
 
5  QUESTION 86 FROM THE REPUBLIC OF KOREA (S/C/W/431 , PAGE 11) 
Regarding the MFN exemption measure, "Treatment with respect t o the granting of approval to 
establish offshore banks and merchant banks, to expand existing operations and conduct new 
activities in the financial services sector may be accorded to service suppliers of another member in 
a differentiated manner or on the  basis of reciprocity and at the discretion of the relevant authority.", 
we wonder whether this exemption is based on any international agreements.  
 
Answer  from Brunei Darussalam:  
This exemption exists to provide the Central Bank with adequate policy space in its pursuit to develop 
Brunei Darussalam’s financial sector and not based on any international agreements.  
 
6  QUESTION 87 FROM SWITZERLAND (S/C/W/431 , PAGE 11) 
As inscribed, the MFN exemption states that in order to expand or conduct new activities in financial 
services reciprocity can be required, that access between services suppliers may be differentiated 
and that the relevant authorities exercise discretion i n granting approvals. In practice has reciprocity 
been required to obtain authorisation to supply? Could you please indicate whether formal guidelines 
exist that are applied by the regulator in determining whether to approve new or expanded activities 
once reciprocity has been determined?  
Has the legal framework been updated and do the circumstances for this exemption still prevail?  
 
Answer  from Brunei Darussalam:  
a) The principles of reciprocity is applied on a case by case basis  
 
b) Relevant provisions under  the Banking Order, 2006; Islamic Banking Order, 2008 and Brunei 
Darussalam Central Bank Order, 2010 applies in the exercise of regulatory and supervisory 
activities by the Central Bank.  
 
c) The legal framework remains unchanged and the exemption prevails.  
 
__________