WT/TPR/M/309/Add.1  
31 March 2015  
(15-1786)  Page: 1/56  
Trade Policy Review Body 
10 and 12 February 2015 Original: English/Spanish  
anglais/espagnol  
inglés/español  
 
  TRADE POLICY REVIEW 
BRUNEI DARUSSALAM  
MINUTES OF THE MEETING 
Addendum 
Chairperson: H.E. Mrs. Mariam MD Salleh (Malaysia) 
This document contains the advance written questions and additional questions by WTO 
Members, and replies provided by Brunei Darussalam.1 
 
 
Organe d'examen des politiques commerciales 
10 et 12 février 2015 
EXAMEN DES POLITIQUES COMMERCIALES 
BRUNÉI DARUSSALAM  
COMPTE RENDU DE LA RÉUNION 
Addendum 
Présidente: S.E. Mme. Mariam MD Salleh (Malaisie) 
Le présent document contient les questions écrites communiquées à l'avance par les 
Membres de l'OMC, leurs questions additionne lles, et les réponses fournies par Brunéi 
Darussalam.1 
 
 
Órgano de Examen de las Políticas Comerciales 10 y 12 de febrero de 2015 
EXAMEN DE LAS POLÍTICAS COMERCIALES 
B
RUNEI DARUSSALAM  
ACTA DE LA REUNIÓN 
Addendum 
Presidenta: Excma. Sra. Mariam MD Salleh (Malasia) 
En el presente documento figuran las preguntas presentadas anticipadamente por escrito y 
las preguntas adicionales de los Miembros de la OMC, así como las respuestas facilitadas por 
Brunei Darussalam.1 
                                               
1 In English and Spanish only./En  anglais et espagnol seulement./En inglés y español solamente. WT/TPR/M/309/Add.1 
 
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  TRADE POLICY REVIEW OF BRUNEI DARUSSALAM 
10 AND 12 FEBRUARY 2015 
REPLIES PROVIDED BY BRUNEI DARUSSALAM TO THEIR ADVANCE WRITTEN QUESTIONS 
AUSTRALIA ..................................................................................................................... . 3 
MALAYSIA ...................................................................................................................... .. 7 
CHINA ......................................................................................................................... ..... 8 
CANADA ........................................................................................................................ ... 9 
THAILAND ......................................................................................................................  11 
ADDITIONAL WRITTEN QUESTI ONS FROM TH AILAND ................................................... 21  
PERU .......................................................................................................................... .... 22 
SINGAPORE .................................................................................................................... 23  
BRAZIL ........................................................................................................................... 25  
ADDITIONAL QUESTION S FROM BR AZIL ........................................................................ 27  
THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND 
MATSU ......................................................................................................................... .. 28 
ADDITIONAL WRITTEN QUESTIONS FROM  THE SEPARATE CUSTOMS TERRITORY 
OF TAIWAN PENGHU, KI NMEN AND MATSU ................................................................... 33  
EUROPEAN UNION ......................................................................................................... 39  
FOLLOW-UP QUESTIONS EUROPEAN UNION .................................................................. 50  
UNITED STATES ............................................................................................................. 52  
 WT/TPR/M/309/Add.1 
 
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  AUSTRALIA 
Trade Policy Review of Brunei Da russalam 10 and 12 February 2015 
Report by the Secretariat - WT/TPR/S/309 2 TRADE AND INVESTMENT REGIME 
2.4.2 Investment regime/Starting a business 
Page 25, 2.39 
Is the local presence requirement for a branch of a foreign enterprise a limitation on cross-border 
trade in services? 
ANSWER:  We view the requirement as a limitation on cross-border trade in services.  
3 TRADE POLICIES AND PRACTICES BY MEASURE 
3.3.1.2 Measures Affecting Production and Trade/Incentives/Other  financial support 
Page 43, Paragraph 3.84 
1. Can Brunei provide more information on SIPA, specifically on the incentives provided to 
agricultural producers compared to its downstream industries, such as food manufacturing and 
processing? Do these measures favour agricultural producers? 
2. Can Brunei provide information on the budgetary outlays of SIPA, whether in-kind or direct, 
such as the level of support provided to agricultural producers? 
ANSWER: The roles of SIPA (Agriculture and Agrifood Incentives Schemes) are to help the 
farmers in the promotion of their products by pr oviding a number of products and services, which 
includes packaging options, machinery, seeds, ploughing services and livestock husbandry. The 
scheme focuses on ensuring that the products offe red to the local market are of high quality, 
competitive and sustainable.  
SIPA Objectives 
i. To enhance the technology transfer process for the purpose of increasing 
productivity and product output. 
ii. To provide primary input and facilities to support the producing of competitive 
agriculture products  
iii. To disseminate information 
iv. To reduce production cost 
v. To ensure commodity price stability 
3.3.2.3 Measures Affecting Production and Trade/Competition policy, consumer 
protection, and price controls/Price controls 
Pages 46-47, Paragraph 3.102 
The Secretariat’s report notes that the number of goods subject to price controls increased 
substantially during the review period. Are any price controls subject to mandatory review after a 
fixed period, or are they open-ended? What methodology is used to determine price levels (please illustrate using rice and/or sugar as examples)? 
ANSWER:  All price control items are subject to review and are not a one off fixed price. It is also 
subject to market forces. 
3.3.3 Measures Affecting Production and Trad e / State trading, state-owned enterprises, 
and privatization 
Page 47, Paragraph 3.104 
1. Are rice and sugar imports through the SSSD purchased at world market prices? 
ANSWER:  Yes, they are purchased at world market prices. WT/TPR/M/309/Add.1 
 
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  2. What is the difference between the import price of rice and sugar and the price for rice and 
sugar sold onto the domestic market? 
ANSWER:  This variation is due to several factors: 
a. The market price of the imported rice and sugar and the price for rice and sugar sold 
onto the domestic market;  
b. Foreign exchange; and 
c. Transportation charges. 
3. Is the Brusiam Food Alliance Co. the sole purchaser of rice on behalf of the SSSD? 
ANSWER:  No.  
4. Does the SSSD place any restrictions on suppliers from whom local traders can source rice 
and sugar? Is it a requirement that rice and sugar purchases are made through the Brusiam Food 
Alliance Co. or some other importing organisation associated with SSSD? 
ANSWER:  Local traders are allowed to import rice and sugar, however, there are specific varieties 
of rice and sugar that only the SSSD can import, to ensure adequate amounts are available for 
domestic consumption.  
The Supply and State Store Department does not restrict suppliers from sourcing other rice and 
sugar varieties sold in the market. However, for rice and sugar that are supplied through the 
B r u S i a m  F o o d  A l l i a n c e  C o . ,  t h i s  w o u l d  n e e d  t o  b e  s o u r c e d  f r o m  t h e  S u p p l y  a n d  S t a t e  S t o r e  
Department.  
3.3.5.3 Measures Affecting Producti on and Trade/Intellectual property 
rights/Trademarks, industrial designs and industrial layouts 
Page 53, Paragraph 3.134 
Can Brunei Darussalam provide any information on when it may accede to UPOV and what standard it will adopt? For instance, will the relevant legislation be compliant with UPOV 91? 
ANSWER:  The Brunei Intellectual property Office (BruIPO) has completed the drafting of the Plant 
Varieties Protection (PVP) Order which is consistent with UPOV 1991.The target date for 
implementation of the PVP system is 1 April 2015, subject to higher authority’s approval. 
Currently, BruIPO is still looking into the feasibility of accession to UPOV.  
4 TRADE POLICIES BY SECTOR 
4.1.1.2 Agriculture, Forestry and Fish eries/Agriculture/Agricultural policy 
Page 57, Paragraph 4.16 
What progress has Brunei made in developing the technical capacity to calculate Brunei’s 
aggregate measures of support (AMS)? When does it expect to be in a position to notify its AMS to 
the WTO? 
ANSWER:  Agriculture only represents a small portion of Brunei Darussalam’s economy. At the 
moment, the types of domestic support provided in this area are primarily targeted to improve the 
capacity and capability of our local small and medium size farmers/producers in order to improve 
their productivity, and contribute to the domestic requirements of the produce. 
However, we do acknowledge that our notification on the AMS is something that needs to be 
addressed in the very near future. In this regard, Brunei Darussalam welcomes assistance from the WTO Secretariat and Member Countries in this area.  
Page 57, Paragraph 4.18 
1. Is Brunei contemplating any measures to stop subsidised products (such as rice, sugar) 
being illegally sold for profit in neighbouring countries – a problem which has been referred to in 
the State Legislative Council? (See: http://www.bt.com.bn/news-nat ional/2012/02/15/financial-
prudence-subsidies-hot-topics ).  WT/TPR/M/309/Add.1 
 
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  ANSWER:  Rice is stated as restricted goods for export under forth schedule to the Customs 
(Prohibition and Restriction on Imports and Exports)  Order, 1955 that requires a permit from State 
Store and Supply Department upon its exportation. 
2. Has Brunei conducted any external or internal reviews on the effectiveness of its subsidies 
for rice and sugar, and if not, does it plan any such review? 
ANSWER:  At the moment Brunei has not conducted a formal review of the effectiveness of the 
subsidies mainly because being the staple food of Brunei, the price of rice has to be affordable.  
4.4.2.1 Services/Financi al services/Overview 
Page 68, Paragraph 4.81 The new Securities Market Order is expected to come into force in 2015, with the aim of facilitating the growth and development of the capital market , and enhancing investor protection. Does this 
Order differentiate between investments in foreign financial service providers and domestic 
providers?  
ANSWER:  The Securities Markets Order (SMO), 2013 came into force on 25
th June 2013. A 
subsidiary regulation i.e. Securities Markets Regulations (SMR) is expected to come into force in 
Q1 2015.  
All financial service providers, either foreign or domestic must obtained the relevant licenses 
issued by AMBD before they carry on or purport to carry on any regulated activity defined in the 
SMO and Securities Markets Regulations (SMR). The regulated activities in the SMO include any types of activities constituting investment business. These activities include dealing in investments, arranging deals in investments, safe keeping and administration of assets, managing 
securities, investment advice as an investment ad viser or financial planner, establishing collective 
investment schemes and using computer-based systems for giving investment instructions.  
The SMO does not differentiate between investments in foreign financial service providers and 
domestic providers. For instance, the minimum financial requirement i.e. base capital for a locally 
incorporated company and a foreign company with a branch in Brunei for an investment dealer is 
B$2,000,000. All reporting requirements are also the same for both foreign and domestic 
companies. All license holders have to submit their audited financial statements not later than 3 
months after the end of its financial year. Quarterly reporting are also required which must be submitted not later than 2 weeks after the end o f  e a c h  q u a r t e r .  A s  a p p a r e n t ,  t h e r e  i s  n o  
differentiation between the two. 
4.4.2.2 Services/Financial Services/Banking 
Page 70, Paragraph 4.88 Does Brunei plan to reform its regulatory framework and incentive structure to attract foreign 
treasury service providers? 
ANSWER:  AMBD is continuously strengthening its regulatory framework in line with international 
best practice and taking into account the development of the local banking industry. At the same 
time, AMBD welcomes foreign banks to set up in Br unei especially that can offer specialise services 
to the needs and requirements of the country as we ll as provide expertise in areas of development 
such as SMEs or corporate financing as well as investment banking. Having a specialised international foreign bank can provide added value (in terms of competition and bringing in foreign 
expertise) to the industry, and economy as a whole.  
What action is Brunei taking, if any, to reduce its high banking fees and transaction costs? ANSWER:  AMBD is continuously monitoring banking fees and transaction costs to ensure that the 
fees are relevant to the banks’ operations and services. AMBD has intervened on a number of 
occasions with regards to banking fees and costs whilst taking into account the interest of the public as well as the industry as a whole. Concurrently, AMBD also undertake continuous dialogue 
with banks to ensure that banks’ operations are managed well and services are efficient in line 
with the costs involve.  
Key banking service charges are also publishe d in the newspaper semi-annually. With this 
publication, customers will be aware of such ch arges and will be able to make well-informed 
decisions. WT/TPR/M/309/Add.1 
 
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  4.4.3 Services/Telecommunications 
Page 73, Paragraphs 4.103 & 4.106 Given there are only two domestic mobile phone providers (4.103 refers), is the Telecommunications and Broadcasting Competition Co de (4.106) intended to attract foreign mobile 
telephone service providers to Brunei as a means of increasing competition? 
ANSWER:  The competition code was introduced to ensure the growth of the telecommunications 
and broadcasting industry through fair competition policies where Foreign Service providers are 
welcome to participate. However, licensing would depend on the policies, laws and regulation in 
force. 
Report by Brunei Daruss alam - WT/TPR/S/309 
7 STRATEGY FOR FUTURE GROWTH 
Page 16, Paragraph 7.3 
Brunei has identified the services sector, including information and communications technology 
and high tech industries, air and sea logistics, av iation and energy services as ‘important efforts 
towards economic diversification’ in its Strategy for Future Growth. What policy steps is Brunei 
taking to develop these services? Does Brunei plan to develop these services through making commitments in FTAs under negotiation, including through easing restrictions on foreign equity 
participation? 
ANSWER:  Whilst Brunei Darussalam has made certain policy steps to develop these industries, on 
the easing of foreign equity participation, this is done in consultations with relevant agencies.  
For instance in the information and communications technology (ICT) sector, Brunei Darussalam 
has established its first ICT incubation centre called the iCentre  that focuses on nurturing ICT 
entrepreneurs to develop Made-in-Brunei products and applications through a well-structured and effective incubation programme.  
Where as in the Energy services, Brunei Darussalam is looking to increase its service sector base 
locally in an effort to increase local content. Brunei Darussalam will continue to involve foreign participation with no restrictions in participation with respect to highly specialized short-term and 
long-term services to the oil and gas industry. 
Report by the Secretariat - WT/TPR/S/309 
1 ECONOMIC ENVIRONMENT 1.2.2 Trade Performance and Invest ment/Foreign direct investment 
Page 15, Paragraph 1.15 & Report by Brunei Darussalam - WT/TPR/S/309 
8 CONCLUDING REMARKS 
Page 16, Paragraphs 8.1 & 8.2 
Australia agrees with Brunei’s assessment that trade and FDI can help to achieve its goals 
regarding diversification of its economy (8.1-8.2 refers). In light of this, does Brunei intend to improve the ease of doing business and increase the transparency of foreign investment 
restrictions (1.15 refers)? 
ANSWER:  Yes, The National Ease of Doing Business Steering Committee was set up in 2011 to 
provides the platform for national coordinated e fforts and inter-agency cooperation to improve the 
business environment in Brunei Darussalam through regulatory, administrative and procedural 
reforms throughout the business life-cycle. Severa l reforms and initiatives have been implemented 
recently such as the introduction of online system for company incorporation and issuance pre-approved Business License that allows applicants to start a business in 1 day at a much reduced 
cost.  WT/TPR/M/309/Add.1 
 
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  MALAYSIA 
MALAYSIA’S QUESTIONS FOR THE THIRD TRADE POLICY REVIEW OF BRUNEI 
DARUSSALAM 
SECRETARIAT REPORT 
2.3 Trade Agreements and Arrangements  
2.3.1 WTO 
2.7 Brunei is an original Member of the WTO, and grants MFN treatment to all its Members. 
Brunei is neither a party to the Information Technology Agreement  nor to the plurilateral 
agreements on government procurement and trade in civil aircraft. Brunei fully supports the 
multilateral trading system and endorses the Bali Package, in particular the Agreement on Trade 
Facilitation. 
QUESTION: 
1. Is there any particular reason for not becoming a party to the ITA? 
2. Does Brunei Darussalam intend to  join the ITA in near future? 
3. Does Brunei Darussalam apply tariffs in information technology products? 
ANSWER:  Joining the ITA is still under consideration by Brunei Darussalam. 44% of the goods 
listed under the ITA are dutiable, although the tariffs are relatively low and range 
from 5 – 20%.  
5. APPENDIX TABLES 
Table A2. 1 Main trade-related legislation, 2014 
TBT 
 Halal Certificate and Halal Label Order 2005  S 39/05  2008 2012 
Misuse o f Drugs Act  Chapter  27 1978  
Public Health (Food) Act  Chapter  182 2001 2012 
Tobacco Order 2005  S 49/05  2008 
QUESTION 
1. Appreciate if Brunei could sh are main features of amen dment to Halal Certificate 
and Halal Label Order 2005 that was undertaken in 2012. 
ANSWER:  The Halal Certificate and Halal Label Order 2005 was amended in 2012. Following are 
the main features of the amendment: 
Issue of certificate 
The Halal certificate, unless sooner suspended or revoked, shall be valid for three (3) years from 
the date of issue. 
Renewal of certificate 
The Halal certificate may be renewed for further periods not exceeding three (3) years in respect 
of each renewal. 
Fees (Fourth Schedule) 
The principal Order is amended by repealing the Fo urth Schedule and by substituting the following 
new Fourth Schedule therefor: 
Issue or renewal of Halal Certificate $90 
Issue or replacement of Hala l Certificate or permit $10 
Issue of permit $50 
Source: Halal Certificate and Halal Label (Amendment) Order, 2012.  WT/TPR/M/309/Add.1 
 
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  CHINA 
WTO TRADE POLICY REVIEW OF BRUNEI DARUSSALAM 
10-12 February 2015, Geneva 
Questions from China  
Question based on Report by Brunei Darussalam (WT/TPR/G/309) 
5.1 Investment 
Page 7, para.5.4 
The Report states that “Part of the incentives introduced to enhance the ease of doing business 
and attract foreigners to set up companies in Brunei Darussalam is through the amendment of Companies Act, Chapter 39, where there are 2 or more directors, one of the two directors, or at least 2 of them shall be ordinary residents of Brunei Darussalam.”  
Question ： 
China welcomes the decision made by the government of Brunei Darussalam on easing the 
requirement on local directors in setting up new companies. However, China would appreciate if 
the government of Brunei Darussalam could furt her clarify the requirements on local equity 
participation when setting up companies in Brunei Darussalam. 
ANSWER:  Generally, FDI is allowed in almost any sector except those that are related to national 
security or those that contravene our laws and religion. The policies relating to local equity 
requirements will depend on the type of sectors. 
Under the ASEAN Investment Area Bold Measures Agreement signed in January 1999, Brunei 
Darussalam allows for 100% foreign equity ownership in high-technology manufacturing and 
export oriented industries.  
For industrial activities that require use of government industrial sites, or other forms of incentives 
would need at least 30% local equity. 
For example in the oil and gas service sector, certain basic support services to oil and gas 
operators are confined to wholly local companies only. In all other services to the oil and gas 
industry, including highly specialized services, there are no restrictions to foreign equity 
participation.  WT/TPR/M/309/Add.1 
 
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  CANADA 
World Trade Organization 
Trade Policy Review of Brunei Darussalam 
February 10 & 12, 2015 
QUESTIONS FROM THE GOVERNMENT OF CANADA 
Report by the Secretariat – WT/TPR/S/309  
Summary, Paragraph 19, page 8: 
The Report by the Secretariat notes that changes have recently been made to Brunei Darussalam’s 
legal framework in relation to government procurement.  
1. Could Brunei elaborate as to what these changes are? 
ANSWER: 
a. The Ministry of Finance Circular No. 2/2009 (25 July 2009) was issued to standardize the 
tender fee charged to interested supp liers and revision of the performance 
bond/Banker’s Guarantee charged to awarded suppliers. 
b. The Ministry of Finance also has issued another circular No. 1/2014 (20 March 2014) 
which was an update to the performance bond/Banker’s Guarantee rates charged to awarded suppliers that was stated in the Circular No. 2/2009 above. 
Part II. Trade and Investment Regime: Regi onal Trade Agreements: ASEAN: paragraph 
2.15, page 19:  The Secretariat’s report notes with respect to  the ASEAN Framework Agreement on Services 
(AFAS) that Brunei Darussalam has, with the view to further liberalizing trade in services, signed 
Mutual Recognition Agreements (MRAs) with memb er states “for greater mobility of qualified 
workers in accountancy, architecture, dentistry, engineering, medicine, nursing, surveying and 
tourism services.” 
2. In light of the stated interest in liberalization in these sectors, could Brunei confirm whether 
qualified workers within these professions are exem pt from the application of economic needs tests 
or quantitative restrictions in order to temporarily enter Brunei Darussalam to fulfill a services 
contract? 
ANSWER: Certain services sectors are subject to economic needs test. However, this is also 
subject to the requirements of the services sectors.  
For instance in the oil and gas sector, highly skilled expatriates are still needed to support and 
supplement the workforce, including providing on-the-job-coaching for locals. 
Where as in the medical sector, provision under Me dical Practitioners and Dentists Act and Nurses 
Registration Act requires medical practitioners, de ntists and nurses to be registered and licensed 
to practice (for medical practitioners and dentists only) under the Brunei Medical Board and Brunei 
Nursing Board respectively. 
Part III. Trade Policies and Practices by  Measure: State trading, state-owned 
enterprises and privatization; government  procurement: paragraph 3.107, page 48: 
The Report notes that Brunei Darussalam is not a party to the WTO Agreement on Government Procurement. 
3. Could Brunei indicate if it has plans to join the WTO Agreement on Government Procurement 
in the near future? 
ANSWER:  Brunei Darussalam has no immediate plans to join the WTO GPA. However, we may 
take this into consideration in the future.  WT/TPR/M/309/Add.1 
 
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  Part III. Trade Policies and Practices by  Measure: State trading, state-owned 
enterprises and privatization; government  procurement: paragraph 3.108, page 48:  
The Report notes that a tender fee is charged to suppliers. 
4. Could Brunei indicate why it charges suppliers a tender fee? 
ANSWER:  The Government charges a tender fee according to the estimated project value to 
interested suppliers is not to burden them unnecessarily. The objectives for this tender fee is to 
cover the cost of preparing the tender documents;  to increase the sense of responsibility among 
the suppliers in submitting a reasonable quotation; and to ensure that only bona fide/genuine 
suppliers participate in the Government Procurement. 
Part III. Trade Policies and Practices by  Measure: State trading, state-owned 
enterprises and privatization; government  procurement: paragraph 3.114, page 49: 
The Report states that electronic submission of tender documents is not yet accepted and that only 
hard copies or soft copies in CD-ROM fo rmat are accepted by procuring entities.  
5. Does Brunei have any plans to develop an e-tendering system? 
ANSWER:  Please refer to the answer on Question 1 from Brazil.  
Part III. Trade Policies and Practices by  Measure: State trading, state-owned 
enterprises and privatization; governme nt procurement: paragraphs 3.114-115, 
page 49: 
The Report notes that Brunei Darussalam does not yet have a review body for government procurement but that suppliers can file grievances with the relevant ministry or department in regards to decisions taken by the Mini Tender Board or Quotation Committee of each 
ministry/department, or the State Tender Board (Ministry of Finance).  
6. Can Brunei indicate how it assures impartiality in such cases, particularly when a ministry is 
reviewing its own Mini Tender Board or Quotation Committee? 
ANSWER:  The members of the Mini Tender Board ar e government officials appointed by the 
Ministry of Finance whereby each tender board consists of members from various Ministries.  
A supplier can file their complaint on services provided by the Government to the Management 
Services Department at the Prime Minister’s Office. The Department will contact the respective 
Ministry or Department about the complaint and will try to solve it. In addition, suppliers can also file their complaint to Anti-Corruption Bureau under the Prime Minister’s Office, in relation to suspected corrupt practices and behaviours.  WT/TPR/M/309/Add.1 
 
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  THAILAND 
TRADE POLICY REVIEW OF BRUNEI DARUSSALAM 
WRITTEN QUESTIONS FROM THAILAND 
QUESTIONS REGARDING THE SECRETARIAT REPORT  
2. TRADE AND INVESTMENT REGIME 
Page 21 (paragraph 2.27)  
Question 1:  As indicated in the paragraph, foreign investors are allowed to invest in retail trade 
on a case-by-case basis. Please provide further de tails on procedures and criteria required by the 
Brunei Government in considering the investment by foreign investors in retail trade. Is there a limitation in foreign equity participation in retail trade investment? If so, what is the limitation? 
ANSWER:  The retail trade is regulated by the Ministry of Home Affairs through the Miscellaneous 
Licenses and it is only open for Bruneians who holds yellow IC.  
Page 22 (paragraph 2.29) 
Question 2:  Paragraph 2.29 indicates that relevant authorities are drafting the relevant 
amendment to the Land Code with the objectiv e to revoke the procedure for foreigners in 
purchasing land and property through power of attorney or trust deeds and convert land and 
property purchases into 60-year leases. Please clarify if foreign investors can currently purchase 
land or property. Under the prospective amendment, will foreign investors no longer be able to purchase land or property? Please clarify the deta il of such amendment, including the target date 
for the amendment to take effect. 
ANSWER:  The Land Code states that any transfer, charge, lease and sub-lease of land must have 
the consent in writing from HM the Sultan in Co uncil. Hence, anyone who wishes to own property 
legally in Brunei must follow the procedures set by the government in order to have their name registered in the Land Register as the legal owner. Purchases using nominees (via Power of 
Attorney) only gives the purchaser a right in equity in the land. It is not a legal right per se as HM 
the Sultan’s consent required under the Land Code was not obtained. The amendment of the Land Code will provide clearer provisions as to who can own land in Brunei. By “own” means outright 
ownership of landed properties which will be allowed only for Brunei citizens. Foreigners and 
permanent residents would not be able to own land ed property “outright” but ownership of leases 
of private land are allowed under section 23 to be registered (which can be up to 99 years) and also the Land Code (Strata) Act Cap 189 Laws of Brunei allows ownership of strata properties by 
foreigners and permanent residents who qualifies the criteria of residency in Brunei. The use of 
Power of Attorney to carry out other transactions related to land (except transfer) such as application for planning and building approval will still be allowed under the proposed Land Code 
Amendment. This also applies to Power of Attorney held by banks as part of secured landing. 
As to the conversion to 60 years leases, this is still under consideration. The Land Code 
Amendment Order 2015 will require holders of Power of Attorney to declare their PA to the Lands 
Department. There will be ample time given to “owners” of land via PA to declare his “ownership” 
before the law comes into full force at a date to be declared by the Minister.  
For foreign investors, special arrangements have been made which allow foreign companies to 
lease land up to 99 years (depending on individual agreements) from appointed statutory bodies 
such as the Brunei Economic Development Board, the Brunei Investment Agency and such bodies. 
The leases (if more than 7 years) will require HM the Sultan’s consent in writing before they can be 
registered. Leases under 7 years can be registered without HM the Sultan’s consent (section 23) 
as these are considered rentals.  
3. TRADE POLICIES AND PRACTICES BY MEASURE  
Page 31 (paragraph 3.22) 
Question 3:  As Brunei’s current bound average tariff rate is 25.4%, whereas the average applied 
MFN rate is 1.7%, does Brunei have any plan to reduce the bound tariff rates to be closer to the 
applied MFN tariff rates?  WT/TPR/M/309/Add.1 
 
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  ANSWER:  Brunei Darussalam has no immediate plans to reduce the bound tariffs to be closer to 
the applied MFN tariff rates, and would like to maintain the policy space for any possible 
adjustments to our applied rates.  
Page 32 (paragraph 3.26) 
Question 4:  Brunei imposes excise duties on liquors, tobacco, vehicles, nuclear reactors, boilers, 
machinery and mechanical appliances, and medical or surgical instruments. Further, the 
authorities indicated that all goods subject to ex cise duties were not manufactured in Brunei. In 
case there is a domestic production of such products in Brunei in the future, will these 
domestically-produced goods be subject to the same  rates of excise duties as imported goods? 
ANSWER:  To start a domestic production of excisable products, a license should be granted from 
the Controller of Customs. Excise duties are imposed particularly on liquors, tobacco and vehicles 
whether they are imported or produced. As for mechanical appliances and medical or surgical 
instruments are exempted from excise duties provided that the purpose of such goods are 
genuinely for medicinal, scientific or to any distillation of essential oils as stated in Section 57 of 
Excise Order 2006.  
Pages 37-38 (paragraph 3.48) 
Question 5:  As indicated, currently halal meat and poultry may be imported to Brunei only from 
Australia, China, India, Indonesia, Jordan, Malaysia  and the Philippines. As Thailand also produces 
halal meat and poultry, we would like Brunei to clarify the following points:  How can Thailand’s halal logo be recognized in Brunei? Please explain the criteria.  
ANSWER:  For the purpose of the Halal logo being recognized in Brunei Darussalam, the 
Department of Halal Food Control (BKMH) has to ensure that all ingredients and raw materials 
used are halal. Every stage and process needs to be  ascertained of its halal status through official 
on-site inspection. During this inspection, offices will examine the halal status of the raw material 
is maintained and monitored throughout the proc ess. Based on these reason therefore, BKMH 
requires a reputable and credible foreign halal certification bodies. 
1. The certification body shall apply directly to BKMH and enclosed with relevant documents such 
as: 
i. Profile of the Halal Certification Body 
ii. Copy of registration document with the authority 
iii. Information of its regional / branch offices, if any 
iv. Type of services and social activities of the halal certification body 
v. Defined scope of certification 
vi. Record of past and current activities on halal certification and monitoring services to 
the certified abattoirs and processing plants 
vii. List and qualification of Muslim professional workers 
viii. Sample of halal certificate or logo or consignment letter used by the Halal Certifying 
Body 
ix. Halal certification and monitoring procedures 
2. Evaluation visit will be made on the Halal Certification Body based on the application received 
to evaluate the ability of the Halal Certification Body in the halal certification.  
3. Compliance audit will be carried out by officers  from BKMH and MUIB to observe the operating 
office of the Halal Certification Body and visit to the certified abattoirs and food processing 
plant.  
4. Once the Halal Certification Body passed, letter of  appointment will be issued and will be listed 
as Recognised Foreign Halal Certification Body. 
2) What is the process/procedure which Thai expo rters need to follow before they can export 
halal meat and poultry to Brunei? 
ANSWER:  Importations of halal meat to Brunei Darussalam are done according to Halal Meat Act 
Chapter 183. Details on the procedure are as enclosed:  WT/TPR/M/309/Add.1 
 
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  Page 45 (paragraph 3.92) 
Question 6:  Thailand is interested in the Start-up Brunei scheme, which aims to encourage 
the start-up of innovative businesses and attract high potential start-ups in Brunei. Please provide 
details regarding the application procedures, criteria, and consideration process for companies that 
wish to apply for Start-Up Brunei? 
ANSWER:  Foreign companies interested to start their business in Brunei are welcomed to apply 
for Start-Up Brunei funding. The criteria are: 
1. Companies must to be registered for more than 1 year  
2. Their business plan must be clear, making use of innovation and technology, and scalable. 
3. Team members must be committed to running the business 
Companies can fill up the SUB Form, which is found in the BEDB website, and email the submission 
to: startupbrunei@bedb.com.bn.  
The BEDB will evaluate the application form, together with relevant stakeholders in Brunei. 
4. TRADE POLICIES BY SECTOR  
Page 57 (paragraph 4.16) 
Question 7: As Brunei has yet to fulfill the notification requirements for agriculture especially 
domestic support since 1995, when does Brunei expect to finish the calculation of aggregate 
measures of support (AMS) and notify WTO? If possible, could Brunei please inform Thailand the 
progress of the AMS calculation? 
ANSWER:  Please refer to the answer to Question 4 on Trade Policy by Sector from Australia. 
Page 62 (paragraph 4.42) 
Question 8:  Could Brunei elaborate more on its long-term plans to boost investment and 
production in the energy sector?  
ANSWER:  These plans are laid out in the Energy Wh ite Paper which has an emphasis of growing 
both the oil and gas upstream and downstream sector.  
Which sub-sectors does Brunei focus on attracting more investment? ANSWER:  Brunei Darussalam through the Brunei Economic Development Board is currently 
focusing on attracting Foreign Direct Investment in oil and gas-based downstream activities (such 
as refineries and petrochemicals).  
What are the examples of incentives for foreign investment in this area? ANSWER:  To ensure a conducive environment for investment, Brunei offers numerous investment 
incentives, financial partnership, readily available industrial sites with competitively priced utilities, 
research and training grants, and so forth.  
QUESTION REGARDING THE REPORT BY THE GOVERNMENT 
Page 5 (paragraph 3.5) 
Question 9:  Does Brunei have any plan to negotiate bilateral trade agreements with other 
countries besides Japan? The Secretariat Report in paragraph 2.23 states that Brunei and Pakistan 
are exploring ways to enhance trade. Does Brunei expect to develop a free trade agreement with 
Pakistan?  
ANSWER:  Brunei Darussalam is open to exploring bilate ral trade agreements with other countries.  
At this moment, there are no plans to establish a free trade agreement with Pakistan. However, 
we will continue to facilitate our economic cooperation with Pakistan through the exchanges of 
business delegations and greater exchange of good s and services. We also have Pakistani-related 
investments in BD and vice-versa which is the Brunei-Pakistan Joint Investment Company.  WT/TPR/M/309/Add.1 
 
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  ADDITIONAL WRITTEN QUESTIONS FROM THAILAND  
QUESTION REGARDING THE SECRETARIAT REPORT 
2. TRADE AND INVESTMENT REGIME 
Page 27 (paragraphs 3.12-3.13)  
“3.12. Brunei's legislation on customs valuation has not changed during the review period. It is still 
based on Customs (Valuation of Imported Goods) Rules 2001. Customs value is primarily assessed based on the transaction value which must also reflect costs incurred by the buyer when 
appropriate (e.g. packing fees, transport charges) . If the transaction value method may not be 
used, five methods apply in sequential order: (i) transaction value of similar goods; (ii) transaction value of identical goods; (iii) deductive value; (iv) computed value; and (v) residual valuation 
(flexible and reasonable method). At the request of the importer, computer and residual methods 
may be applied reversely. According to the authorities, most goods were assessed under the 
transaction value in 2013. 
3.13. Customs value must be determined within 30 da ys of the date of the customs declaration. If 
the value is objected by the importer, goods may be released from Customs' control provided the 
importer deposits a guarantee equivalent to the amount of the duty due. Importers have also the right to appeal on the value determined by RCED.” 
Question 10:  In the paragraphs, Thailand notices (1) the sequential order of five methods to be 
applied when transaction value method is not used and (2) the reversion of computed and residual 
methods to be used when the import requests. Could Brunei explain how these two applications follow the WTO rules under the Customs Valuation Agreement? 
ANSWER:  For item (1) , Brunei Darussalam would like to clarify that: Based on the Customs 
(Valuation of Imported Goods) Rule, 2001 para 6.(1 )(a), para 7(1), para 8(a) and para 11(1) – the 
hierarchical order of the valuation rules follows the WTO rules under the Customs Valuation 
Agreement i.e if customs value cannot be determined by the transaction value, then the next rules 
to be followed is the transaction value of identical goods, transaction value of similar goods, deductive value, computed value and residual value. 
For item (2) Brunei Darussalam would like to clarify that: Based on para 8(a), the order of reversal 
is for rule 9 (deductive value) and rule 10 (computed) and this can only be done if value cannot be determined by the preceding rules and upon written request from the importer. This is different with what had been quoted in the original text. Basically the reversal order for rule 9 and rule10 is 
in line with WTO rules under the Customs Valuation Agreement.  WT/TPR/M/309/Add.1 
 
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  PERU 
TERCER EXAMEN DE LAS POLÍTICAS COMERCIALES DE BRUNEI DARUSSALAM 
PREGUNTAS ESCRITAS DEL PERÚ 
BRUNEI DARUSSALAM:  
 ¿Puede indicar Brunei Darussalam cuáles son los elementos utilizados para la determinación 
de los precios de los productos subvencionados y no subvencionados? (párrafo 3.102 del informe de la Secretaría)  
 “3.102. The number of goods subject to price control increased substantially during the review 
period. In the previous Review in 2008, retail prices of cigarettes, infant milk powder, motor vehicles, rice, and sugar were reported to be ca pped. Currently, there are 19 categories of goods 
for which maximum retail prices are set (Table 3.12); for example, retail prices for rice ranges 
from B$0.76/kg to B$1.25/kg, and sugar is sold at B$1.25/kg.98 In December 2012, Brunei also 
introduced a minimum retail price for cigarettes.99 Hoarding of price-controlled goods is prohibited, with the exception of cars.100 The Price Controller sets prices for all products except 
for subsidized goods: the price for sugar and rice is set by the Supply and State Stores 
Department (SSSD), while the price for gasoline is set by the Energy Department.101 Prices are reviewed when deemed necessary” (Secretariat Report) 
1. With regard to the above, can Brunei Darussalam indicate what elements are used for the 
determination of prices of subsidized products and those that are not subsidized?  
ANSWER:  The elements considered in determining the prices of price controlled items which are 
not subsidized are inclusive of all the relevant documents provided from the suppliers of such 
items including the Custom Declarations and Invoices. Prices of controlled items are determined 
based on the information provided by the supplie rs and they are selected based on day-to-day 
essentials and requirements.  
 ¿Puede indicar Brunei Darussalam el monto establecido para las subvenciones al arroz y 
azúcar? (párrafo 4.18 del informe de la Secretaría) 
“4.18. Brunei maintains a system of subsidy for rice and sugar to protect consumers from 
increases in commodity prices. The DOAA, through the Agriculture and Agrifood Incentive Scheme 
(SIPA), provides farmers and agri-food producers with  inputs (e.g. padi seeds, fertilizers, chemical 
poisons) and other materials such as food packaging and machineries at a 50% subsidized price.To apply to SIPA, applicants must fill in the incentive register form with DOAA. In addition, one of 
SIPA component is the Paddy Guarantee Price Purchasing Scheme. Local rice producers registered 
with DOAA may be eligible for the Purchasing Scheme ; to qualify, they are required to grow only 
local rice varieties recommended by DOAA.12 Under the scheme, DOAA buys rice to local 
producers at a price of B$16 per 10 kg. Retail price for consumers is set at B$12 per 10 kg.13 Rice 
and sugar imported by SSSD are also subs idized (Table 4.3)” (Secretariat Report) 
2. With regard to the above, please indicate the amount established by Brunei Darussalam on 
the subsidies for rice and sugar? 
ANSWER:  Our subsidies on rice and sugar has managed to stabilise the price and sales of such 
staple items in order to meet the domestic consumption as well as to ensure food stability and 
security in the country.  WT/TPR/M/309/Add.1 
 
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  SINGAPORE 
TRADE POLICY REVIEW OF BRUNEI 
WRITTEN QUESTIONS FROM SINGAPORE 
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT 
I ECONOMIC ENVIRONMENT 
Page 10 (Para 1.3)  
“1.3. The "Bruneization" policy which encourages companies to give preference to Bruneians in their employment policies has continued. It is estimated that 56% of working citizens and permanent residents are employed by the Govern ment. In the private sector, chronic labour 
shortages, in professional and unskilled areas, have  been alleviated by more recruitment of foreign 
workers, who now make up almost half of the total working population. According to the latest census figures, the unemployment rate was 9.3% in 2011.” 
Question 
Could Brunei share more details on the “Bruneization policy” and how this policy has impacted 
Brunei’s industrial and economic development?  
ANSWER:  The “Bruneization” policy is a form of corporate responsibility which is practiced by 
certain private companies where it aims to equip locals with the right competencies and skills for 
employment. This includes work for skilled and semi-skilled jobs. 
However, Brunei Darussalam in fact recognizes that highly skilled expatriates are still needed to 
support and supplement the workforce, includin g providing on-the-job-coaching for locals. 
III TRADE POLICIES AND PRACTICES BY MEASURE 
Page 42 (Para 3.75)  
“3 .7 5 . I n add i ti on, a 1% tax on i nc ome  rai s ed  from approved exports was introduced in 2012. 
Industries and products declared as approved for export are pursuant to section 8A of the Income 
Tax (Amendments) Order 2012. Export enterprises ma y opt to pay the tax on exports in lieu of the 
standard income tax rate. According to the authorit ies, so far no enterprise has opted to pay the 
tax on exports in lieu of the income tax rate.”  
Question 
Could Brunei provide examples of how this 1% tax on income from approved exports may be 
operationalized?  
ANSWER:  If an exporter opts to be assessed in this alternate tax regime, the tax will be worked 
out on flat basis at the tax rate of 1% on export proceeds. The simplification of procedure will help 
in the operationalization of this scheme. Mean while awareness is being created among the tax 
payers.  
Page 45/46 (Para 3.96)  
“3.96. Brunei does not yet have comprehensive co mpetition legislation. However, in line with 
commitments under the ASEAN Economic Community to establish a competitive economic region 
through strong competition regimes, Brunei has been drafting comprehensive competition legislation since 2011. Consultations have been held with local stakeholders as well as regional and 
international experts on competition policy and law to ensure that the new piece of legislation 
takes into account Brunei's economic and legal context and is in line with international best practices.” 
Question 
Could Brunei provide an update on the status of its new competition legislation, as well as the 
expected timeframe by which it expects the legislation to come into effect? 
ANSWER:  The Brunei government is in the final stage of drafting a National Competition 
Legislation and plan to have the law co me into effect before the end of 2015. WT/TPR/M/309/Add.1 
 
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  Page 51 (Para 3.124)  
“3.123. Upon grant, the term of protection is 20 years from the date of filing (or priority date if 
claimed). Patent term may be extended in certain instances, in particular for pharmaceutical products that could not be exploited due to the process of obtaining marketing approval. 
Protection for re-registration granted during the transition period, is 20 years from the date of 
filing of the original patent.” 
 “3.124. To maintain a patent in force, the owner must pay an annual renewal fee from the fifth 
year of the grant until expiration. Rights over a patent are lost if the patent is not renewed. 
However, restoration of lapsed patents due to unpaid fees may be possible. Effective 1 January 2012, all re-registration patents are liable to pay the annual renewal fee upon evidence that the foreign patent has not been revoked is provided.”  
Question 
In the event of a patent lapse due to unpaid fees , would the patent owner still be protected under 
Brunei’s patent law should there be any patent infringement during this lapse period?  
In the scenario where the patent owner fails to pay the annual renewal fees for the last 5 years of 
the patent protection period, would the patent owner get to enjoy a 5 year extension of the patent term (i.e. 25 years) should the owner make payment at the end of these 5 years?  
ANSWER:  Yes. Section 40(8) of the Patents Order, 2011 provides that “Anything done under or in 
relation to the patent during the period between expiry and restoration shall be treated as valid.” 
Section 40(9) further provides that “ Anything done during that period which would have 
constituted an infringement if the patent had no t expired shall be treated as an infringement: 
a. If done at a time when it was possible for the patent to be renewed under Section 36(3); 
b. If it was a continuation or repetition of an earlier infringing act. 
1. No. The patent would be treated as lapsed for non-payment of the renewal fees unless 
restored within the prescribed period. Patent term extension is only allowed under section 36 of 
the Patents Order, 2011 due to the following:  
i. unreasonable delay by the Registrar in granting the patent.;  
ii. unreasonable delay in the issue of a corresponding patent; or 
iii. delay caused by process of obtaining marketing approval for pharmaceutical product. 
PART II: QUESTIONS REGARDING THE GOVERNMENT REPORT WT/TPR/M/309/Add.1 
 
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  BRAZIL 
THIRD TRADE POLICY REVIEW OF BRUNEI DARUSSALAM 
Advance questions from Brazil: 
 
Report by the Secretariat 
“1.17. Under its National Vision 2035 (Wawasan 2035), Brunei aims to achieve an annual average 
real GDP growth of 5%-6%. According to the IMF, Brunei's economic outlook remains favourable as planned large petrochemical and refinery projects begin production; real GDP growth is 
expected to reach 5.3% in 2014 and 3% in 2015. Ov er the medium term, acceleration in the non-
energy sector due to infrastructure and downstre am projects is expected to support economic 
growth. Nonetheless, sustaining high growth rate s on an ongoing basis will require the successful 
implementation of Brunei's ambitious diversification strategy, and on enhancing private-sector 
participation in the economy”.  
Question 1: 
In light of the importance of petroleum exports to its economy, could Brunei Darussalam please 
comment on the possible impacts of low international petroleum prices on its “National Vision 
2035” targets? 
ANSWER:  Brunei Darussalam will continue  working towards its Vision 2035 targets. In light of low 
international oil prices, the government has identified ways to accelerate economic growth such 
as: 1. Introducing the fiscal and monetary policies such as reduce the levels of excise duty and low 
interest rate for encouraging investment activities.  
2. Exploring opportunities for growth in non-oil and gas sectors such as in Agriculture, Fisheries 
and Forestry (0.7%), and Services Sector (31.0%) such as transport and logistics, finance, tourism and others.  
3. Strengthening the private sectors through the provision of incentives and entrepreneurial 
transformation program specifically for Small and Medium Enterprises (SMEs), business start-ups and GLCs. 
4. Monitoring the performance of Ease of Doing Business for continuously improved through 
the Committee of Ease of Doing Business (EODB).  
5. Promote the activities of the Foreign Direct Investment (FDI). 
6. Increasing productivity in Public and Private Sectors through Research and Development, 
Education, Training and New Technologies. 
“3.69. Brunei does not have export insurance schemes”. 
Question 2: 
Could Brunei Darussalam please clarify why it has no export insurance schemes in place?  
ANSWER:  The insurance market in Brunei Darussalam has been focused mainly on individuals, 
where there has been no demand thus far for a formalized export insurance scheme.  
Question 3: 
Would not the establishment of such schemes  be conducive to improving the business 
environment for further expansion of the private sector and to diversifying the industrial and 
export base? 
ANSWER:  We recognize that establishing such export insurance or trade credit insurance schemes 
would facilitate the expansion of the private sector, and this is a potential area that insurance 
companies are open to pursue, subject to the insurance market’s own capacity, as well as the 
demand for it.  
“4.16. At the time of Brunei's previous Review, the authorities indicated that technical capacity 
was being developed to calculate the aggregate measures of support (AMS). However, Brunei has 
yet to make AMS notifications to the WTO”. WT/TPR/M/309/Add.1 
 
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  Question 4: 
Could Brunei Darussalam please elaborate on why it has not made any AMS notifications to the WTO thus far? 
ANSWER:  Please refer to the answer to Question 4 on Trade Policy by Sector from Australia. 
Question 5: 
When does Brunei Darussalam estimate to be in  a position to fulfill such notifications? 
ANSWER:  Please refer to the answer to Question 4 on Trade Policy by Sector from Australia.  WT/TPR/M/309/Add.1 
 
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  ADDITIONAL QUESTIONS FROM BRAZIL 
THIRD TRADE POLICY REVIEW OF BRUNEI DARUSSALAM 
Additional advance questions from Brazil: 
 
PART I: QUESTION REGARDING THE SECRETARIAT REPORT 
3 TRADE POLICIES AND PRACTICES BY MEASURE Page 39 (Para 3.56) 
"3.56 During the review period, two IT applicatio ns were implemented to make export procedures 
paperless: (i) the Brunei's e Customs in 2008; and (ii) the Brunei Darussalam National Single Window (BDNSW) to process several trade-related requests, including certificates of origin. At the regional level, Brunei has appointed ten certified exporters to participate in the pilot project for the 
ATIGA Self Certification System. The System allows certified exporters to self-certify that export 
products comply with ASEAN rules of origin. The declaration of origin is made on the invoice or any commercial document. The test period ends on 31 December 2015." 
Question 1: 
Considering the recent developments in the impl ementation of paperless customs procedures in 
Brunei, such as e-Customs and the BDNSW, is the Government of Brunei also working on the 
implementation of an e-procurement system? 
ANSWER:  Brunei Darussalam is in the preliminary stages of setting up an e-procurement system.  
PART II: QUESTION REGARDING THE GOVERNMENT REPORT 
4 MACROECONOMIC ENVIRONMENT 
Page 6 (Para 3.10 e 3.11) 
"3.10 As the signatories to the Trans-Pacific Strategic Economic Partnership Agreement, Brunei is 
involved in the negotiations for the Trans-Pacific Partnership (TPP) Agreement, together with 
Australia, Canada, Japan, Malaysia, Mexico, Peru, the United States of America and Viet Nam. The 
TPP is aimed at achieving a plurilateral ‘21st century’ free trade agreement that will further liberalise and integrate the economies of the Asia-Pacific. The TPP involves disciplines on areas 
such as the Environment, Government Procurem ent and Labour, amongst others. The scope also 
encompasses new ‘cross-cutting issues’ not previously included in other FTAs, such as Development, Regulatory Consistency, Competitiv eness and State-Owned Enterprises, making the 
TPP the most comprehensive agreement that Brunei Darussalam is currently negotiating in. upon 
completion, the TPP would provide Brunei Darussala m with access to markets such as the United 
States, Canada, Mexico and Peru. 
3.11 Negotiations for the TPP is expected to be completed in 2014, and the countries involved in 
the negotiations hope that the TPP will present a pathway to the eventual realisation of the APEC 
goal to realise a ‘Free Trade Area in the Asia-Pacific’ (FTAAP)." 
Question 2: 
W h a t  i s  t h e  c u r r e n t  s t a t u s  o f  t h e  T P P  a n d  h o w  w i l l  i t  h e l p  B r u n e i  t o  l i b e r a l i z e  i t s  G o v e r n m e n t  
Procurement market? 
ANSWER:  TPP is still in the negotiation stage.  WT/TPR/M/309/Add.1 
 
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  THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU 
Trade Policy Review of Brunei Darussalam 
Written Questions from the Separate Custom s Territory of Taiwan, Penghu, Kinmen and 
Matsu 
PART I: REGARDING THE SECRETARIAT REPORT (WT/TPR/S/309) 
II. ECONOMIC ENVIRONMENT 
(1)  1.2 Trade Performance and Investment 
(i) 1.2.2 Foreign direct investment 
Page 15 (Para 1.15) 
Success in attracting significant FDI inflows has been hampered by increased competition from neighbouring economies…Moreover, Brunei’s FDI policies could be more transparent, particularly 
with respect to limits on foreign equity participation, partnership requirements, and the 
identification of sectors in which FDI is restricted. 
Question(s): 
1. When confronting the increased competition from neighbouring economies, which strategies 
has Brunei Darussalam adopted to attract FDI inflows?  
ANSWER:  Brunei Darussalam through the Brunei Economic Development Board takes a direct 
approach when attracting investments into Brunei by targeting companies that are in line with the 
agency’s focused cluster development and the investors’ compatibility with Brunei, through established networks and investment promotion trips abroad. 
In addition, Brunei Darussalam offers the following incentives to encourage FDIs:  
 exemption from income tax, the corporate tax is exempted for a pioneer industry; 
 exemption from taxes on imported duties on  machinery, equipment, component parts, 
accessories or building structures; 
 exemption from taxes on imported raw material, a pioneer industry is exempted from paying 
import duties on raw materials not available or produced in Brunei Darussalam intended for the production of the pioneer products; and  
 carry forward of loss and allowance.  
2. How will Brunei Darussalam respond to the concern that its FDI policies could be more 
transparent? 
ANSWER:  Actions Brunei Darussalam has taken to improve transparency include the publication 
of the business and investment guide and other related information on business and investment in 
hardcopy and through the electronic media, such as www.mipr.gov.bn and www.bedb.com.bn. All 
statistics are available on the website of the Department of Economic Planning and Development: 
http://www.depd.gov.bn/ .  
3. Does Brunei have any plan to liberalize the sectors in which FDI is restricted now and if so with 
what timelines about it?  
ANSWER:  Please refer to the answer to Question on Investment from China.  
II. ECONOMIC ENVIRONMENT 
(1)  1.2 Trade Performance and Investment (i) 1.3 Outlook 
Page 15 (Para 1.16) 
Brunei’s economy remains highly dependent on oil and gas production, which accounts for about two-thirds of output. This makes Brunei particularly vulnerable to an eventual depletion of 
resources over the next decade, and remains a cause for concern for the authorities due to 
fluctuating international energy prices. WT/TPR/M/309/Add.1 
 
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  Question(s): 
Recently the international oil prices have declined significantly. How has this affected Brunei’s economy? How is Brunei responding to this? 
ANSWER:  It is well known that the oil and gas sector continues to play a significant role in 
Brunei’s economy. Recently Brunei’s oil and gas production has decreased due to high deferment 
levels following asset integrity and operational issues. Nevertheless, regardless of falling oil prices, Brunei will continue its planned investment in the oil and gas sector to remedy asset integrity 
issues and to increase overall production in order to fulfil targets set in the Energy White Paper. 
This includes proceeding with its planned exploration activities in the coming years. 
Brunei will also continue to proceed with planned downstream projects to increase overall 
economic output including the construction of a refinery and the development of petrochemical 
projects that would boost the downstream industry which would generate employment 
opportunities and business development. 
In addition, the government has identified ways to accelerate economic growth such as: 
1. Introducing the fiscal and monetary policies such as reduce the levels of excise duty and low 
interest rate for encouraging investment activities.  
2. Exploring opportunities for growth in non-oil and gas sectors such as in Agriculture, Fisheries 
and Forestry (0.7%), and Services Sector (31.0%) such as transport and logistics, finance, 
tourism and others.  
3. Strengthening the private sectors through the provision of incentives and entrepreneurial 
transformation program specifically for Small and Medium Enterprises (SMEs), business start-ups 
and GLCs. 
4. Monitoring the performance of Ease of Doing Business for continuously improved through 
the Committee of Ease of Doing Business (EODB).  
5. Promote the activities of the Foreign Direct Investment (FDI). 
6. Increasing productivity in Public and Private Sectors through Research and Development, 
Education, Training and New Technologies.  
II. Trade and Investment Regime 
(1)  2.2 Trade Policy Formulation and Objectives 
Page 17 (Para 2.4) 
Brunei aims to achieve three key objectives: have more highly skilled people; an economy that is 
sustainable… 
Question(s): 
With regard to the first objective, having more highly skilled people, what is Brunei doing to 
achieve this goal?  
ANSWER:  In strengthening the nation’s local workforce, the Department of Economic Planning 
and Development (JPKE) approach is to continue working with private sector to ensure that the 
supply of human resources meet the expected dema nd. Endeavoring to this expectation, JPKE has 
introduced various schemes to increase the attractiveness of private sector employment.  
Another initiative that has been implemented since 2011 is the Training and Employment Scheme. 
This scheme aims to promote youth competencies and skills development through the provision of 
practical trainings and work related experiences. Incentives are also given to those candidates 
working with the private sector within a specified period.  
As to minimize the skills gap requirement of the locals in the private sector, a scheme tailored for 
Foreign Direct Investment (FDI) related firms in high technology and manufacturing activities has 
been recently introduced. The scheme aims to provide financial assistance covering specific permissible cost of training local employees of the newly established FDI in Brunei Darussalam. 
Which areas/sectors is Brunei targeting for the cultivation of more highly skilled people?  WT/TPR/M/309/Add.1 
 
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  ANSWER:  The attractiveness of private sector employment and providing more technical and 
vocational trainings for the locals in response to the industry requirements.  
The first step is by identifying major sectors that employ a large number of Bruneian locals, 
namely the Oil and Gas sector which is the largest private sector employer of the local population; 
Wholesale and Retail; Transportation; Hospitality; Support Services and ICT. By identifying these 
sectors, related initiatives and programmes were developed to increase the attractiveness of working in these sectors 
Is Brunei planning to bring in a greater numbe r of highly skilled people from abroad?  
ANSWER:  Brunei Darussalam will still continue to bring in highly skilled expatriates, not only to 
support and supplement the workforce but also to provide on-the-job coaching for locals. 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(1)  3.1 MEASURES DIRECTLY AFFECTING IMPORTS 
(i) 3.1.5 Imports prohibitions , restrictions, and licensing 
Page 33 (Para 3.29; Table 3.6) 
Only vaccines for human medicine manufactured in countries with good manufacturing practices 
and authorized by the Ministry of Health, may be  imported… Vaccines of Chinese Taipei origin are 
prohibited imports. 
Question(s): 
Why does Brunei prohibit the import of vaccines from Chinese Taipei? Please specify. 
ANSWER:  The prohibition of the importation of this good had been stated in The Customs 
(Prohibition and Restriction on Imports and Exports) Order 1955. Brunei is yet to review the 
regulation.  
However, Brunei Darussalam through the Ministry of Health does not restrict importation of 
vaccines from any particular country provided that it complies on the requirements and conditions 
of the importations of vaccines as enforced by the country.  
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(1)  3.3.2 Competition policy, consum er protection, and price controls 
(i) 3.3.2.1 Competition policy 
Page 46 (Para 3.96) 
…Brunei has been drafting comprehensive competition legislation since 2011. 
Question(s): 
What is the latest progress on the drafted competit ion legislation? Will it be completed before the 
end of 2015, when AEC is established? 
ANSWER:  The Final Draft Competition Law went through the Ministerial Review process. 
Brunei is positive that a national Competition Law will be enacted in line with the commitment of 
AEC 2015. 
Several consultations with stakeholders were carried out to ensure that Competition Order is in 
line with economic needs and are aligned with existing policies and laws.  
IV. TRADE POLICIES BY SECTOR 
(1)  4.1 Agriculture, Forestry and Fisheries (i) 4.1.1 Agriculture 
Page 55 (Para 4.3) 
…the authorities’ efforts to market the “Brunei Halal Brand” at regional and international level. 
IV. TRADE POLICIES BY SECTOR 
(1)  4.4.2 Financial services 
(i) 4.4.2.1 Overview 
Page 68 (Para 4.80) 
Brunei aims to become a regional financial centre for Islamic financial services… WT/TPR/M/309/Add.1 
 
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  Question(s): 
The Malaysian government also aims to develop its Halal industry and standards at the regional and international levels, as well as to develop Malaysia as a hub for Islamic financial services. In this regard, both countries have similar policies. How does Brunei cooperate, or compete, with 
Malaysia on developing its Halal industry and Islamic financial services? 
ANSWER:  Brunei Darussalam and Malaysia complement one other in the development of its Halal 
Industry and Islamic Financial Services. For instance in the Islamic financial industry, Brunei 
Darussalam through the establishment of AMBD in 2011, places great importance in ensuring that 
the overall Islamic financial industries operate in accordance with Syariah principles. Brunei Darussalam has also a comprehensive legal infrastructure regulating the Islamic Finance Industries. 
AMBD is currently developing the strategic plan  in order to achieve the Brunei Darussalam 2035 
vision to develop a strong and sound Islamic financial system and a well-developed Syariah 
principles and strong governance for the Islamic Finance Industries. These are the key architecture 
to the development of gaining public confidence and receiving international recognition. At the 
same time, AMBD has established a close working relationship with international Islamic standard setting body and organisations such as the Islamic Financial Services Board (IFSB) and 
International Islamic Financial Market (IIFM).  
Islamic banking continues to occupy pride of place in banking and finance in Brunei Darussalam. 
The level of penetration of Islamic banking account s to 46.7% as of Q2 2014, which is the highest 
in the region.  
Brunei Darussalam has also seen an encouraging growth in its takaful industry, currently takaful 
assets in Brunei Darussalam totaled B$446 million, accounting for 32.29% of total insurance assets. Further reforms in the takaful sector, including the prohibition of composite takaful 
businesses and the issuance of new takaful guidelines have further increased the assets of the 
takaful industries as well as the penetration rate of takaful products.  
Brunei Darussalam is keen in developing its capital market. To this end the Securities Market 
Order, 2013 was enacted. A developed capital market, would lead to the creation of new financial 
products and other investment opportunities for the public. Capital market will also attract more foreign investors and increase capital inflow. It will also open opportunities to facilitate the government’s plans to privatize various enterpri ses and services. Subsequent development of the 
secondary market, would provide the opportunity for Sukuk to be traded. This will open the 
gateway to an international Sukuk trading, as well as the international trading of other Islamic financial instruments. 
The growing demand trend for Islamic finance in Brunei Darussalam drives our policy stance to 
continuously develop our human capacity and capa bility to meet the demands. The establlisment 
of Centre for Islamic Banking, Finance and Management (CIBFM) is one of the instrumental in 
generating future leaders and experts in the area of Islamic finance. 
In positioning Brunei Darussalam as key global player in Islamic finance, Brunei Darussalam has 
actively worked with IFSB , IIFM, Centre for Research and Training (CERT) Malaysia in jointly organising various international meetings and events, including the Brunei Darussalam Islamic 
Investment Summit 2013 (BIIS 2013), Muktamar Kewangan Islam Brunei Darussalam 2013, the 
24th meeting of the IFSB Council held 27 March 2014, and the 12th IFSB General Assembly and The 9th Islamic Financial Stability Forum. These events will not only showcase Brunei as a key 
strategic player to the development of Islamic fi nance industry but will provide the opportunities 
for Brunei Darussalam to ink strategic relationships with the important global players. 
PART II: REGARDING THE GOVERNMENT REPORT (WT/TPR/G/309) 
I. GENERAL POLICY STATEMENT 
Page 3 (Para 1.3) 
In January 2008, Brunei Darussalam launched the Brunei Darussalam Long-Term Development Plan, Wawasan 2035 or National Vision 2035…  
Question(s): 
How are Brunei’s trade policies related to its National Vision 2035? To achieve the goals of National Vision 2035, which trade policies will Brunei be adopting? WT/TPR/M/309/Add.1 
 
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  ANSWER:  Brunei Darussalam’s trade policies relate to its National Vision 2035 through the 
creation of new jobs and expansion of opportuni ties for its people and the business communities 
through investment activities, both domestically and abroad, particularly in the areas of downstream industries and economic clusters outside of the oil and gas industry. 
In order to achieve the goals of our National Vision 2035, Brunei Darussalam will focus on 
improving its transparency and trade-facilitative  regulation towards a more conducive trade and 
investment environment.  
III. INTERNATIONAL TRADE RELATIONS 
(1)  3.3 Free Trade Agreements 
Page 5 (Para 3.3) 
At the sub-regional level, Brunei Darussalam, as a member of the Brunei Darussalam-Indonesia-
Malaysia-Philippines-East ASEAN Growth Area (BIMP-EAGA), continues to engage in BIMP-EAGA 
cooperation which are now streamlined into four pillars…(ii)establishing BIMP-EAGA as the food basket for ASEAN and the rest of Asia… 
Question(s): 
Regarding the second pillar of BIMP-EAGA, “estab lishing BIMP-EAGA as the food basket for ASEAN 
and the rest of Asia,” what is Brunei’s role? How will Brunei achieve this goal? 
ANSWER:  The Ministry of Industry and Primary Resources, through the Department of Agriculture 
and Agri-food and the Fisheries Department, is set to be responsible for the agricultural and 
fisheries development and food production. As a bit to spur and develop the food production 
sector, a number of strategies and programs will be implemented towards increasing the 
productivity in food production. These include developing suitable lands for food production, 
introducing of high yielding rice varieties, providing proper infrastructure and also developing the post-harvest facilities. 
Since the launching of the National Rice Production Towards Self-Sufficiency in Brunei Darussalam 
in 2009, the local rice production has almost doubled. 
The establishment of the Bio-Innovation Corridor (BIC) intends to develop an internationally 
renowned halal themed industrial park as part of the wider economic diversification strategy, to 
accommodate research and innovative technology applications, to build on and support the development of Brunei Halal Brand, to create a lively and mixed use environment and to generate employment opportunities. BIC capitalizes on Brunei Darussalam’s unique offerings on high quality 
Halal Certified food and non-food products, and its gateway status into the Borneo Island and the 
BIMP (Brunei Darussalam-Indonesia-Malaysia-Philippines) East Asean Growth Area (EAGA), China, Korea and Japan.  
Brunei Darussalam recognizes BIMP-EAGA members as the provider/source of raw materials 
(agricultural and fisheries products) which will be imported to Brunei Darussalam for processing into value-added products through the BIC; whic h will then be exported to the regional and 
international markets, and thus makes Brunei Darussalam as the gateway for BIMP-EAGA food 
products to the rest of Asia.  WT/TPR/M/309/Add.1 
 
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  ADDITIONAL WRITTEN QUESTIONS FROM THE SEPARATE CUSTOMS TERRITORY OF 
TAIWAN PENGHU, KINMEN AND MATSU 
Trade Policy Review of Brunei Darussalam 
Written Questions from the Separate Custom s Territory of Taiwan, Penghu, Kinmen and 
Matsu 
PART I: REGARDING THE SECRETARIAT REPORT (WT/TPR/S/309) 
2. Trade and Investment Regime 
2.4 INVESTMENT REGIME 
2.4.1 Legal framework 
Page 21 (Para 2.27) 
According to the Secretariat report, “market concentration and nationality requirement may also 
restrict the participation of domestic and foreign investors,” and “In retail trade, foreigners are 
allowed on a case-by-case basis.” 
Question(s): 
1. What are the details of “market concentration and nationality requirements” indicated by this 
report? Do these requirements apply to particular sectors or to all investments? 2. What are the principles that Brunei uses to determine whether or not to approve a foreign 
investment in retail trade? Are there any basic rules? 
ANSWER:  Generally, FDI is allowed in almost any sector except those that are related to national 
security or those that contravene our laws and religion. Policies relating to foreign ownership allow 
for full foreign ownership, majority foreign owne rship and minority foreign ownership, depending 
on the type of industry. 
Under the ASEAN Investment Area Bold Measures Agreement signed in January 1999, Brunei 
Darussalam allows for 100% foreign equity ownership in high-technology manufacturing and 
export oriented industries.  
For industrial activities that require use of government industrial sites, or other forms of incentives 
would need at least 30% local equity. 
The retail trade is regulated by the Ministry of Home Affairs through the Miscellaneous Licence and 
it is only open for Bruneians who holds yellow IC.  
3. TRADE POLICIES AND PRACTICES BY MEASURE 
3.1. Measures Directly Affecting Imports 
3.1.5 Import prohibitions, restrictions, and licensing 
Page 33 (Para 3.29) 
Import prohibitions are mainly in place for security, health, protection of wild life, and moral 
reasons (Table 3.6). During the review period, Br unei incorporated the following products to the 
list of prohibited imports: cigarettes without health warning written on their packages; fabric of tissue bearing the imprint of any currency or bank notes or coin; salk polio vaccine; and shark 
products (section 4.1.2). Only vaccines for human medicine manufactured in countries with good 
manufacturing practices and authorized by the Ministry of Health, may be imported.26 The Customs Order 2006 (Section 31) allows the Minister of Finance to prohibit imports or exports.  
Question(s): 
1. Could Brunei please provide further explanation on why it prohibits the import of Java 
sparrows, which are CITES Appendix II species, and a species for which artificial breeding techniques are quite mature? 
ANSWER:  The prohibition of the importation of this good had been stated in The Customs 
(Prohibition and Restriction on Imports and Exports) Order 1955. Brunei is yet to review the 
regulation.  WT/TPR/M/309/Add.1 
 
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  4. TRADE POLICIES BY SECTOR 
4.2 ENERGY SECTOR 4.2.1 Oil and Gas 
Page 61 (Para 4.41) 
The hydrocarbons industry continues to dominate Brunei's economy in terms of contribution to 
GDP, government revenues and merchandise exports. However, production in the oil and gas sector shrunk at an annual average rate of -1 .8% during 2008-13. Production of crude oil peaked 
at about 210,000 barrels a day (b/d) in 2006 and declined to 135,200 b/d in 2013. According to 
the authorities, this reduction is temporary and th e result of maintenance work at the oil refinery 
and offshore platforms. 
Question(s): 
1. Since the hydrocarbons industry is the key driving force in Brunei’s economy, has the reduction 
of oil and gas production in recent years had any serious impact on local economic development? 
ANSWER:  Please refer to answer to Question II on Economic Environment.  
2. When does the government of Brunei expect the re storation of production to its former levels? 
Has the recent decline in international oil prices affected the government’s decision-making concerning the amount of oil and gas being produced? 
4.2.1.2 Policy Developments 
Page 63 (Para 4.46) Under the Petroleum Mining Act (Chapter 44), inve stors, including foreign investors, may apply for 
petroleum mining agreements in respect of state land, whether onshore or offshore; the 
applications are considered by the Sultan in Council. 
Question(s) : 
1. Is there any restriction on foreign investment, such as the proportion of foreign investment, the 
qualifications of foreign investors, and so on? 
ANSWER:  There are currently no restrictions on the proportion of foreign investment with respect 
to the petroleum mining agreements under the Petroleum Mining Act. Any signed petroleum 
mining agreements are as a result of negotiations between the investor and the State.  
Page 65 (Para 4.55) 
Petroleum products for local consumption are marketed solely by Brunei Shell Marketing Company (BSM) although some of its stations are oper ated by independent operators or franchises. 
Retail/end-user prices of gasoline, diesel, kero sene, and bottled LPG have been regulated since 
1978, under a Price Stabilization Agreement betw een the Government and BSM, under which the 
Government subsidizes prices if the price of crude oil rises above a certain level.  
Question(s): 
1. Does the government of Brunei intend to enhance competition in the market? If yes, then 
please provide some details of the process or schedule. 
ANSWER:  The marketing of petroleum products in Brunei is considered to be open despite the 
presence of only one company retailing petroleum products. 
2. Does the subsidization cause serious fiscal burden to the government? Does the government 
plan to deregulate the extent of retail price control and let it return to market mechanisms? 
ANSWER:  There are no current plans to change the subsidization given to petroleum products for 
local consumption. 
Page 65 (Para 4.57) 
Brunei's average MFN tariff on petroleum is 0.5%, ranging up to 2.2%. 
Question(s): 
1. Since Brunei is a member of both the TPP and RCEP, do the ongoing negotiations of these 
two organisations affect the MFN tariff on petroleum in Brunei? Will zero tariff be the final goal in 
the TPP and RCEP negotiations? WT/TPR/M/309/Add.1 
 
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  ANSWER:  This matter is still under negotiations. 
4.2.2 Electricity 
Page 65 (Para 4.60) 
Brunei has the cheapest electricity rate and the highest energy intensity of all ASEAN countries. 
The Government spends some B$40 million per year on its electricity subsidy, out of a total annual 
energy subsidy of about B$1 billion. In addition, the Government consumes itself over 700 GWh of 
electricity in terms of lightning and power in the public sector, and pays the bill of unpaid utilities 
charges for the general public (B$230 million in 2011). To address this, Brunei is taking steps to 
reduce 45% its energy intensity by 2035 (with 2005 as base year) and improve efficiency. To do so, in 2012 a new electricity tariff for the resident ial sector was introduced, i.e. a progressive 
electricity tariff structure (as opposed to the regressive regime which existed since 1969) to 
reduce the government power subsidy by more than half. 
Question(s): 
1. Besides the subsidization for general public, is there any electricity subsidy for industry? 
What proportion of the total annual electricity subsidy goes to industry? 
2. How have people reacted to the new progressive electricity tariff structure? What have been 
the effects since the new tariff’s implementation in 2012? Were some supporting measures 
implemented with the new tariff structure? 
Page 65 (Para 4.61) 
Almost 99% of electricity uses natural gas as the main fuel while the rest is generated by diesel fuel. The Government is, therefore, exploring wa ys to increase renewables usage and reduce 
carbon emissions, including a smart grid and solar plants. The Government aims to have at least 
10% of power generation from renewable energy by 2035. The Government is developing a "Feed-in-Tariff" policy to accelerate the use of renewable energy. 
Question(s): 
1. Please provide more details on the current status of Brunei’s development of renewable energy. 
ANSWER:  Currently, renewable energy in Brunei accounts for 0.14% of the total installed capacity 
and 0.04% in terms of total power generation in the power generation mix. The majority of RE 
generation comes from the 1.2 MW Tenaga Suria Brunei Solar PV plant and the rest are supplemented by a few small off-grids and standalone installations in remote areas.  
Brunei is planning to set up a 10MW waste-to-ene rgy plant in the next few years with the use of 
municipal solid waste as feedstock.  
2. Please provide more information about Brunei’s plans to develop smart grid and solar plants. 
ANSWER:  Brunei is currently mooting proposals to develop new solar plant projects in addition to 
its existing 1.2 MW solar PV plant. 
At this current period, Brunei continues to focus on installing smart meters, on the consumption 
side, and operationalizing the SCADA system, on  the generation side, to improve reliability, 
especially on managing outages. 
3. Please provide more concrete information on the "Feed-in-Tariff" policy, including the policy 
content and the implementation methods. 
ANSWER:  Brunei continues to deliberate on a proposed feed-in tariff policy internally amongst the 
other similar options which Brunei are deliberating on as well in an effort to incentivize and 
accelerate the development of renewable energy. 
4. Since developing renewable energy requires a large amount of investment, what is the 
financial source for that? Will this situation a ffect the development of other energy sectors? 
ANSWER:  This matter is still under discussion within the Government. WT/TPR/M/309/Add.1 
 
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  PART II: REGARDING THE GOVERNMENT REPORT (WT/TPR/G/309) 
3. INTERNATIONAL TRADE RELATIONS 
3.3 Free Trade Agreements 
Page 5 (Para 3.4, 3.5, 3.6) 
3.4. Brunei Darussalam continues to actively participate in regional economic forums as a means 
to work with partners to advance multilateral trade liberalization. Within the framework of ASEAN, Brunei Darussalam continues to work closely with its partners to promote regional trade 
liberalisation, including on finalising ASEAN Free Trade Agreements (FTAs) with its dialogue 
partners. 3.5. Brunei-Japan Economic Partnership Agreement (BJEPA) is remains Brunei Darussalam’s first and only bilateral free trade agreement. 
3.6. Within the framework of ASEAN, Brunei is engaged in a number of FTAs with ASEAN’s 
dialogue partners. The latest FTA under nego tiation is the ASEAN-Hong Kong Free Trade 
Agreement (AHKFTA) which commenced in July 2014. The scope for the FTA include: (i) Trade in 
Goods and related issues such as tariffs, rules of origin, non-tariff measures, customs procedures 
and trade facilitation, trade remedies, technical barriers to trade and Sanitary and Phytosanitary 
measures; (ii) Trade in Services; (iii) Intellectual Property Rights; (iv) Dispute Settlement; (v) 
Horizontal and Institutional Issues; (vi) Economic and Technical Cooperation; and (vii) other areas 
of interest to be mutually agreed upon. In addi tion, a stand-alone investment agreement will be 
negotiated as well.  
Question(s): 
1. The Brunei-Japan Economic Partnership Agreement is Brunei Darussalam’s first and only 
bilateral free trade agreement; meanwhile, within the ASEAN framework, Brunei is engaged in a number of FTAs with ASEAN’s dialogue partners. In this regard, could Brunei Darussalam explain 
what are the principles and considerations it uses when deciding whether to sign FTAs with other 
WTO members alone or as a part of ASEAN? 
ANSWER:  Brunei Darussalam is open to exploring th e deepening of its economic linkages with 
other countries, either bilaterally, plurilaterally or as part of ASEAN. We very much view our FTAs 
as a vital part of our foreign trade policy, to ensure that our people, goods, services and investments have continued access to wider markets around the world. All our FTAs are consistent with GATT Article 24 and Article 5 of GATS, where we consider them as building blocks to the 
multilateral trading system.  
6. SECTORAL POLICIES AND DEVELOPMENT 
6.1 OIL AND GAS 
Page 9 (Para 6.1) 
The Energy Department, Prime Minister’s Office (EDPMO) was formed in 2011 upon the merger of the Energy Division at the Prime Minister’s Office  and the Petroleum Unit. This move was part of 
the efforts by the Government in further enhancing policy and decision-making in the energy 
sector. Reporting directly to the Minister of Ener gy at the Prime Minister’s Office, the EDPMO is 
responsible for developing national energy policies in several key areas of the energy sector including oil and gas, development of downstream  industries, local business development and local 
content, energy efficiency and conversa tion, renewable energy and electricity. 
Question(s): 
1. What was the original intention and goal for merging the Energy Division and the Petroleum 
Unit? 
ANSWER:  Please refer to Para 6.1 of the Secretariat Report. 
2. Since EDPMO’s establishment, has management effi ciency in the energy sector improved? What 
have been the effects on energy-related industries and enterprises in Brunei? 
ANSWER:  EDPMO is considered the principal regulator of the oil and gas industry in Brunei and is 
therefore the focal point for the Government to issue and implement policies that affects the oil 
and gas industry in Brunei. WT/TPR/M/309/Add.1 
 
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  6.1.1 UPSTREAM INDUSTRIES  
Page 9 (Para 6.3) 
In line with the Government’s policy of increasing oil and gas production, the Government and Petroleum BRUNEI (PB) has opened up several offshore petroleum blocks in the last five years 
which has resulted in increased exploration activity. This has resulted in new operators such as 
Petronas Carigali while existing players such as Total and Shell Deepwater Borneo have increased 
exploration activity in new areas. 
Question(s): 
1. Have the declines in international oil prices in recent months affected the government’s policy 
of increasing oil and gas production? 
ANSWER:  Please refer to answer to Question II on Economic Environment.  
2. At present, how many operators are in Brunei’s oil and natural gas exploration industry? What 
proportion of production does each operator account for? 
ANSWER:  The following companies are the current operators in Brunei’s oil and gas industry: 
i. Brunei Shell Petroleum Company 
ii. Total E&P Borneo BV 
iii. Total E&P Deep Offshore Borneo BV 
iv. Petronas Carigali Brunei Ltd 
v. Shell Deepwater Borneo Ltd 
vi. AED South East Asia 
Brunei Shell Petroleum continues to produce more than 80% of Brunei’s oil and gas production. 
6.8 RESEARCH AND DEVELOPMENT 
Page 14 (Para 6.44) 
Towards supporting better market efficiency and to promote better consumer welfare, Brunei 
Darussalam is also actively undertaking efforts towards developing a competition law framework. 
In view of the lack of expertise and capacity  in the issue of competition policy and law, 
engagements with regional and international experts have been a critical source of input. This 
included assistance provided via the ASEAN sectoral body on competition and the MOU signed with 
competition experts under the United Nations Co nference on Trade and Development (UNCTAD). 
Question(s): 
1. Please provide more concrete content and dire ction of the competition law framework. Also, 
what are the goals and the schedule for the framework? 
ANSWER:  The law will contain the key anti-competitive prohibitions. A phased implementation 
approach will be adopted. The goal, among others, is to create an efficient market conduct and 
promote overall productivity, innovation and competitiveness of markets in Brunei. Brunei is 
positive that a National Competition Law will be enacted in line with the commitment of AEC 2015. 
2. Will the development of competition law framework enhance the degree of market opening? 
How will this influence Brunei’s importan t energy sector and energy consumers? 
ANSWER:  The Brunei National Competition law is drafted in line with international best practices 
and advised by competition experts from UNCTAD. It  prohibits anti-competitive business practices.  
The Brunei National Competition Law will encourag e a more efficient market which will eventually 
benefit the consumers. 
Page 15 (Para 6.46) 
BRISc is a cost-sharing scheme to support R&D activities conducted in the five focus areas, which 
is Energy, Environment, Health Care & Health Sciences, Information & Communication Technology 
(ICT) and Food Security. It is eligible for local and foreign companies. WT/TPR/M/309/Add.1 
 
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  Question(s): 
1. Since BRISc has been implemented from 2012, how many applicants have applied, been 
approved, and received grants? What percentage of these have been foreign companies? 
ANSWER:  Since 2012, 6 companies have been awarded funding from BRISc. All the companies 
thus far have been foreign. 
2. Of the five focus areas, which areas have re ceived the most funding (please rank them)? 
ANSWER:  Three of the companies under BRISc are conducting R&D projects related to 
Environment and Health care. The others relate to food security, ICT and energy. 
3. What have been the effects of BRISc after tw o years’ implementation? Does the government 
plan to expand or narrow the scheme? 
ANSWER:  To date, 6 companies have been awarded BR ISc, all of which are conducting their R&D 
in collaboration with a Government research agency and / or Institute of Higher Learning. At least 
10 graduate students have been given either employment or training opportunities, and are directly involved with the projects. Additionally, pa tent applications have also started to be filed 
from the projects. The Government, through the Brunei Research Council, supports the 
implementation of BRISc, and will continue to do so.  WT/TPR/M/309/Add.1 
 
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  EUROPEAN UNION 
Brunei TPR 
EU Questions WT/TPR/S/309 – WTO Secretariat's Report 
SUMMARY 
1. ECONOMIC ENVIRONMENT 1.1 Recent Economic Developments  
Summary page 7 para 1  "The economy of Brunei Darussalam remains highly dependent on oil 
and gas, which accounts for about two-thirds of output, and over 90% of merchandise exports and government revenues. This makes Brunei particularly  vulnerable to an eventual depletion of its 
petroleum resources, and remains a cause for concern due to fluctuating international energy 
prices. The Government is thus implementing an ambitious diversification strategy and promoting 
private-sector participation in the economy, which remains limited ." According to para 1.1 ., "[…] 
Moreover, the prospect of an eventual depletion of its abundant petroleum and natural gas 
resources had prompted the Government to continue pursuing an active industrial policy to 
encourage economic diversification and boost non energy output and employment. "  According to 
point 1.6. "[…] During the next few years, Brunei aims to foster non-oil revenues …" Para 2.18 
page 16 "  Nonetheless sustaining high growth rate on an ongoing basis will require the successful 
implementation of Brunei diversification strategy and on enhancing private sector participation in the economy". 
E U  Q u e s t i o n  N o  1 : Could Brunei Darussalam please elaborate any specific measures that are 
being taken in short and long term to remedy th e impact of the lower oil and gas production and 
the declining trends of global oil price that are witnessed?  
ANSWER:  P l e a s e  r e f e r  t o  t h e  a n s w e r  t o  Q u e s t i o n  I I  o n  E c o n o m i c  E n v i r o n m e n t  f r o m  C h i n e s e  
Taipei. 
What role is the General Reserve Fund going to play in that respect if any?  
What liberalisation of the economy may the government consider in particular regarding opening 
up of certain sectors to private including foreign private investors?  
ANSWER:  Please refer to the answer to Question on Investment from China.  
Page 10 point 1.3 
According to point 1.3., " The "Bruneization" policy which encourages companies to give preference 
to Bruneians in their employment policies has continued. It is estimated that 56% of working 
citizens and permanent residents are employed by  the Government. In the private sector, chronic 
labour shortages, in professional and unskilled area s, have been alleviated by more recruitment of 
foreign workers, who now make up almost half of the total working population . " 
E U  Q u e s t i o n  N o  2 : What are Brunei intentions regarding the policy of employment of foreign 
workers in the private sector  under the "Bruneization" policy and what can be expected in the next 
five years in this regard?  
ANSWER:  In the oil and gas industry, highly skilled expatriates are still needed to support and 
supplement the workforce, including providing on-the-job-coaching for locals. 
1.2 Trade Performance and Investment 
1.2.2 Foreign direct investment 
Page 15 point 1.14 
According to point 1.14., "[…] Traditionally, FDI inflows have been dominated by investment from 
the EU, notably from the United Kingdom and the Netherlands. Hong-Kong, China is also an 
important investor in Brunei." 
E U  Q u e s t i o n  N o  3 : Does Brunei keep detailed statistics on FDI by origin of investors? Could 
Brunei Darussalam specify the sectors of EU investment? WT/TPR/M/309/Add.1 
 
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  ANSWER:  Yes, Brunei does compile detailed statistics on FDI by the origin of investors.  
The EU’s major sectors of investment are Mining and Quarrying; Manufacturing; Transport and 
storage; Wholesale and retail trade; and Financial and insurance activities. 
Page 16 para 1.18 " Brunei's economic strategy targets investment in sectors that may bring 
value-added activities, have a potential for exports, and create jobs. These sectors are: agri-food; 
downstream oil and gas and energy-intensive industries; information and communication technology (ICT); life sciences (pharmaceutical, cosm etics, and functional health food and health 
supplements); light manufacturing; services such as financial services, logistics, and tourism; and 
activities that may be driven by technology development . " and para 3.105 . "Since Brunei's 
previous TPR, the public sector has continued to exert a direct influence on the economy, mainly 
through state-owned enterprises (SOEs). Most of  these still operate under monopoly or hold 
exclusive rights in many sectors, including oil and gas, manufacturing, banking, telecom, and air 
transport.""  
EU Question No 4: Could Brunei elaborate on its "diversification strategy?  
ANSWER:  To intensify the country’s economic diversification efforts, the government will further 
develop its local non-oil and gas industry and commerce. The government will also enhance the 
development of several identified economic clusters. A development strategy for local industry and 
commerce will also be implemented to create more opportunities to local small and medium 
enterprises (SMEs).  
In this regard, Brunei Darussalam established the Brunei Economic Development Board in which its 
role is to attract Foreign Direct Investment in to Brunei to set up export-oriented manufacturing 
and services activities in the various identified clusters 
What would be the role of SOEs that in some sectors are in position of monopole? 
ANSWER:  One SOE is licensed under the Monopolies Act (Cap 73) as a monopoly to acquire the 
exclusive right to manufacture, sell, purchase, import, export all kinds of firearms and ammunition 
and defence equipment. 
What could be the role of foreign investors? 
ANSWER:  The role of the foreign investors is to provide the generation of export revenue, job 
creation, knowledge transfers and so forth, which is aimed to contribute towards Brunei’s 
economic diversification efforts. 
2 TRADE AND INVESTMENT REGIME 
2.4 Investment regime 
2.4.1 Legal framework 
Page 21 point 2.27 regarding restricted sectors to FDI " concentration and nationality 
requirement may also restrict the participation of domestic and foreign investors. In retail trade, 
foreigners are allowed on a case-by-case basis"   
EU Question No 5 Could Brunei Darussalam provide more transparency as to the exact scope of 
the sectors that are opened to FDI and of those that are closed?  Could Brunei Darussalam clarify 
the criteria for allowing foreigners in retail trade on a "case by case" basis? 
ANSWER:  Please refer to the answer to Question 2 on Trade and Investment Regime from 
Chinese Taipei.  
Page 22 point 2.29 " Previously, permanent residents and fore igners were able to purchase land 
and property through power of attorney or tr ust deeds. However, in 2012, the Government 
announced it intended to revoke such procedur e and convert land and property purchases into 
60-year leases. The authorities are still drafting the relevant amendment to the Land Code 
(Chapter 40)."  
E U  Q u e s t i o n  N o  6 : Could Brunei Darussalam clarify the reasons to revoke the procedure of 
foreigners' land and property purchases? Coul d Brunei Darussalam provide an update of the 
situation?  WT/TPR/M/309/Add.1 
 
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  ANSWER:  Please refer to the answer to Question 2 from Thailand.  
3. TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports 3.1.1 Customs procedures and requirements 
Page 27 point 3.11 
E U  Q u e s t i o n  N o  7 : The EU welcomes the timely notifica tion of Brunei of its Category A 
commitments under the TFA and would be interested to know if the ratification procedures for the 
TFA have started and what is the timeframe expected for their finalisation. 
ANSWER : Brunei Darussalam has begun the process of  ratifying the TFA and is working towards 
the deadline of July 2015.  
Page 27 point 3.6 
Page 27 para 3.6 states that " There are no customs fees for import procedures or registration; 
goods in transit via Brunei are subject to fees ra nging from B$10 to B$100 depending on their type 
or nature.""   
EU Question No 8 : Regarding traffic in transit, the EU would appreciate Brunei's views as to how 
the fees on transit are compatible with GATT Article 5 provisions? 
ANSWER:  Based on Customs (Customs Transit) Rules, 2006, fees are charged on the 
transportation of such goods per transport unit.  
3.1.4 Tariffs and excise duties 
3.1.4.4 Excise duties 
Page 32 point 3.26  
EU Question No 9 : How do the authorities of Brunei combine their differentiated approaches on 
excise duty applying to non-locally produced - an d import duty/no import duty on products subject 
to excise - depending on the origin of production of the goods (whether locally produced or not) 
with their commitments in terms of bound import duties in the WTO? How are ASEAN imports 
considered in this regard? 
ANSWER:  Import duties have been eliminated for goods which are subject to excise duties. 
Hence, in effect, duties applied on imported goods are either an import duty or excise duty.  
All applied import duties are below Brunei’s bound ra tes of import duties at the WTO. Similarly, for 
products subject to excise duties which we have bound under the WTO, the excise duties that are 
applied are within our WTO bound rates.  
Under the ASEAN Trade in Goods Agreement, import duties for all ASEAN originating products 
(with the exception of fireworks) have been eliminat ed. However, excise duties will continue to be 
levied on products listed in paragraph 3.26 of the Secretariat Report, even if it is imported from 
ASEAN. 
3.1.5 Import prohibitions, restrictions, and licensing 
3.1.5.1 Import prohibitions 
Page 34 point 3.43  
According to point 3.43. "  Since 2008, Brunei has made only one SPS notification of emergency 
measures". Brunei also prohibits the importation of live animals from countries with FMD (Table 
3.6). 
E U  Q u e s t i o n  N o  1 0 : Could Brunei Darussalam clarify the adopted risk analysis of the FMD, 
whether it applies to the whole country of origin, or to the zone of the country?  
ANSWER:  Brunei Darussalam imports live animals only from FMD disease free countries. These 
are countries that have declared free status from the disease occurrence as a whole state and not 
as a zone, from OIE. (World An imal Health Organization).  WT/TPR/M/309/Add.1 
 
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  3.1.8 Sanitary and phytosanitary requirements 
Page 37 point 3.48  
Parag 3.48 refers to import restrictions on beef and poultry linked to Halal. There are a limited 
number of countries allowed to export meat to Brunei. The procedure indicated requires an audit 
to each individual establishment.  Additionally, it seems mandatory the presence of officials from 
both the Religious Ministry and the Department of Agriculture and Agrifood. This is a complicated and costly procedure. Currently, no EU country is allowed to export meat (nor live cattle?)  to 
Brunei.  
EU Question No 11 : Could the Brunei authorities clarify the requirements the EU countries should 
meet in order to obtain an halal import permit as well as the procedures applying for its issuance?  Have the Brunei authorities considered the possibility of authorising establishments in third 
countries on the basis of certification by duly accredited Halal Certifications bodies?  
This could be a more agile and trade friendly procedure, while allowing for system audits performed by Brunei officials. 
ANSWER:  The requirements the EU countries should meet in order to obtain halal import permits 
are essentially not different from the requirements in effect for countries all over the world which 
wish to export their halal meat to Brunei. In a sense, the requirements compliance are more 
applicable towards the prospective exporting companies rather than the respective authorities in 
the exporting countries. 
The main issue to be focused is an exporting company, most often than not, an abattoir, that is 
willing to cooperate with an importing company from Brunei in complying to Halal Import Permit 
Issuing Board. For the initial stage, the importing company should request the prospectus of the 
abattoir, the slaughterhouse or the meat processing  plant in the EU countries and file it into an 
application. The Board will conduct a meeting discussing the application looking mainly at the 
background of the exporting company especially th e factors that support and that could convince 
the Board that it is serious in implementing its halal standards. The representatives from Customs and Excise Department will focus mainly on the ty pes of item to be imported into the country. The 
representatives from Department of Agriculture and Agrifood will look at the history of animal 
transmitted diseases in the exporting countries and also will decide on the importation quota that 
will be given to the importing company by taking into account the local agricultural production. Other requirements are the importing company must possess a sufficient storage to store all of the 
halal meat permitted for it to import and also the owner of the importing company must be 
Muslim. 
Results from the meeting conducted by the Halal Import Permit Issuing Board will be forwarded to 
Brunei Islamic Religious Council; the highest religious authority in the country. During the 
meeting, the Brunei Islamic Religious Council President will decide whether to allow the Inspection Committee to make a site visit on the respective abattoir with the travelling, transportation, 
accommodation and daily living expenses are to  be provided by the company/companies(the 
importing and exporting companies could compromise with each other in terms of covering the expenses and the Brunei Islamic Religious Council has no say in this). 
The Inspection Committee will take into account the following: 
1. The slaughterer must be a Muslim and is allowed by the law of the exporting country to do 
his job. 
2. There must be at least two Muslims workers/staffs who oversee the process of slaughtering, 
packaging, loading and transporting of the halal meat. 
3. The animal to be slaughtered must be in its best  of health/not in a condition that could lead 
to its death (Hayat Mustaqirrah) 
4. The trachea (halqum) and the esophagus (mar i’) must be cut and severed according to 
Islamic Law 
5. The utensils used to slaughter the animal must be sharp enough to avoid the animal from 
being tortured during the slaughtering process due to blunt knife. The utensils too must not be 
made from bones, nails or teeth. 
6. The slaughterer must recite ‘Bismillah’ (phrase containing praise to Allah) during the process 
of slaughtering. 
7. The act of cutting must be done in one motion. The definition of one motion is cutting the 
throat of the animal without lifting the knife of f the animal unnecessarily. Moving the knife back WT/TPR/M/309/Add.1 
 
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  and forth on the throat is allowed as long as the knife is not lifted off the animal during this 
process. 
8. Slaughtering of poultry must not include the process of stunning. This is to lessen the 
probability that the birds will be killed accidentally before the slaughtering process. 
9. For the countries that enforce stunning, the stunning mechanism must fulfill the following 
criteria 
a. The mechanism cause the animal to be stunned for a definite amount of time. 
b. The mechanism must not go through or break the animal’s skull. 
c. The mechanism must not cause permanent brain damage or any disability on the body 
of the animal. 
10. The procedures conducted in ensuring that the halal meat will never ever be mixed with 
non-halal meat in every stage of meat processing. 
With the above being stated, the policy holder on things related to halal standards in Brunei is the 
Brunei Islamic Religious Council as agreed by His Majesty The Sultan and Yang Dipertuan of Brunei 
Darussalam. There are many halal bodies accredited by the Brunei Islamic Religious Council all over the world but as far as the Brunei Islamic Religious Council is concerned with regard to halal 
raw meat importation, slaughterhouses or meat processing plants that are accredited halal by the 
respective halal bodies in their countries are considered ‘better’ than those without halal accreditation. The fact that they are halal accredited could smoothen the process of halal import 
application but will not replace or override the full authority of the Brunei Islamic Religious Council 
in terms of maintaining the halal standards in Brunei. 
There might be changes in future to make the international trade easier and we are currently 
looking into the possibility of setting up establishments in third countries. However, for the time 
being, the above are the procedures that have been practiced for all these while in the importation 
process of halal meat.  
TBT 
Summary page 7 para 13 and page 36 para 3.36. Brunei is still to notify its enquiry point in the 
TBT. 
E U  Q u e s t i o n  N o  1 2 : Could Brunei indicate its intentions regarding this notification, which is 
important for transparency? 
ANSWER:  Brunei Darussalam will be making its notification on TBT inquiry point in the near 
future.  
3.2 Measures Directly Affecting Exports 
3.2.3 Export prohibitions, restrictions, and licensing 
Page 39 point 3.59  
According to point 3.59., " The Customs Order 2006 (Section 31) allows the Minister of Finance to 
prohibit imports or exports. Brunei prohibits ex ports of prawn refuse and copra cake, stone and 
gravel, and round timber of logs and sawn timber."  
EU Question No 13 : Could Brunei Darussalam explain the reasons for prohibiting the import or 
exports of the above commodities? Do these restrictions apply to ASEAN members?  
ANSWER:  Prohibition on the import and export of the above commodities are due to Health, 
Safety and Environment Issue.  
Yes, the restrictions are also applied to ASEAN members. 
Table 3.10 Licensed exports, 2014 
Page 40 Table 3.10 
EU Question No 14 : Can the authorities explain the rationale for export licenses for eggs, plants, 
vegetables, prawns, water organism and fishing eq uipment? These categories are put in the same 
table as firearms, explosives…  WT/TPR/M/309/Add.1 
 
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  ANSWER:  Information received after the TPR period that eggs, plants, vegetables, prawns, water 
organism and fishing equipment are no longer require licensed export.  
3.2.4 Export support 
3.2.4.2 Tax exemption an d 3.2.5 export finance 
This section details the schemes of tax exemption that are directly related to the promotion of 
exports including in the manufacturing sector or in services. 
EU Question No 15 : Does Brunei Darussalam consider these measures are subsidies? If so, does 
Brunei consider notifying these subsidies to the WTO?  
ANSWER:  No, Brunei Darussalam does not consider the said measures as subsidies.  
3.3 Measures Affecting Production and Trade 
3.3.2 Competition policy, consumer protection, and price controls  
3.3.2.1 Competition policy 
Page 45-46 point 3.96 and 39.97 on competition policy 
According to point 3.96. " Brunei does not yet have comprehensive competition legislation. 
However, in line with commitments under the ASEAN Economic Community to establish a 
competitive economic region through strong competition regimes, Brunei has been drafting comprehensive competition legislation since 2011. Consultations have been held with local 
stakeholders as well as regional and international experts on competition policy and law to ensure 
that the new piece of legislation takes into account Brunei's economic and legal context and is in line with international best practices.  The EU notes that there is not yet a comprehensive 
competition legislation nor any entity in charge of competition enforcement across the country and 
sectors of the economy.  
E U  Q u e s t i o n  N o  1 6 : what are the intentions of the government in this regard? Would the 
competition legislation cover bid rigging in relation to public procurement? 
ANSWER:  The Brunei government is in the final stage of drafting a National Competition 
Legislation. This will cover anti-competitive behaviour which will include bid rigging.  
The EU notes that in many sectors the government has instituted exclusive rights to certain 
entities or monopolies 
EU Question No 17 : What is the role of the sectoral regulators in those sectors where there is yet 
no competition policy applying? 
ANSWER:  Sectoral regulators that do not have their own competition law will be regulated by the 
National Competition Authority. 
For instance, in the energy sector, the Energy Department, Prime Minister’s Office applies local 
business development policies, which amongst others requires oil and gas operators to establish 
mechanisms to prevent and discourage anti-competi tive and monopolistic behavior in the oil and 
gas service sector. 
Summary paragraph 27 page 8 " In the telecoms, a new Regulation code will be introduced which 
will be Brunei first sector specific competition code enter into force in 2015"  
EU Question 18 : Can Brunei further elaborate on this? Have stakeholders been consulted on this 
possible competition code? 
ANSWER:  Competition management has up to now been dealt with by the license conditions and 
Interconnection Hand book.  
As part of the exercise to develop a new conver ged regulatory framework, AITI will introduce a 
competition code to ensure growth of the Telecom and broadcasting industries. 
This was consulted with stakeholders in June 2012. WT/TPR/M/309/Add.1 
 
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  3.3.3 State trading, state-owned enterprises and privatization 
Page 47 point 3.103, 3.104, and 3.105 
According to point 3.103., "[…] Brunei has not filed notifications on state trading enterprises with 
the WTO. According to the authorities, Brunei does not have any state-trading enterprise."  
According to point 3.104., "[…] Subsidized rice and sugar are imported and distributed through the 
Supply and State Stores Department (SSSD), unde r the Ministry of Fina nce (MOF), to ensure 
adequate domestic supply"  
The WTO Understanding on the Interpretation of Article XVII, states that Members shall notify 
state trading enterprises in accordance with the following working definition: ""Governmental and non-governmental enterprises, including marketing boards, which have been granted exclusive or special rights or privileges, including statutory or  constitutional powers, in the exercise of which 
they influence through their purchases or sales the level or direction of imports or exports."  
EU Question No 19 : Given that rice seems to be subject to import and export controls, does the 
government consider notifying the SSSD as an STE under article XVII of GATT?  
ANSWER:  The SSSD functions as a body to purchase and store rice and sugar for reasons of 
national food security. There are no restrictions on importation of rice and sugar as businesses are 
allowed to import rice and sugar with a permit. 
According to point 3.105., "[…] Since Brunei's previous TPR, the public sector has continued to 
exert a direct influence on the economy, mainly through state-owned enterprises (SOEs). Most of these still operate under monopoly or hold exclusiv e rights in many sectors, including oil and gas, 
manufacturing, banking, telecom, and air transport."  
EU Question No 20: Could Brunei Darussalam clarify the efforts and intention, if any, to reform 
the deep role of its SOEs in the economy, particularly in commercially viable sectors? 
ANSWER:  Due to its small market size, the state-owned enterprises are established to provide 
certain business activities in industries where private sectors are seen to lack the viability to 
provide certain industries.  
Nevertheless Brunei Darussalam undertakes efforts to develop the private sector by enhancing the 
business, management and technical skills of local businesspersons through various training 
programs offered by Ministry of Industry and Pr imary Resources, Ministry of Education and the 
private sector.  
EU Question No 21 : What are the major expected contributions of the SoEs in the National Vision 
2035 (Wawasan 2035)? 
ANSWER:  The Government plays a major role and continues to do so in the economy and still has 
to drive developmental efforts including growth of  the private sector to make the private sector 
more diversified, robust and vibrant.  
E U  Q u e s t i o n  N o  2 2 : Can Brunei specify how the SOEs in the manufacturing sector operates? 
What is the level of subsidies granted to these entities?  
ANSWER:  SOEs in Brunei Darussalam do not receive subsidies where such subsidies are not 
available to the private sector. Subsidies are mostly provided in the form of tax exemptions which 
is eligible if for example the SOE qualifies for a pioneer position. Such qualification can also be applied by a private sector. 
3.3.5 Intellectual property rights 
3.3.5.3 Trademarks, industrial designs and industrial layouts  
3.3.5.4 Copyright and related rights 
Page 54 point 3.138 
According to point 3.138., " In March 2014, BruIPO launched a campaign to raise IPR protection 
awareness among the public. However, copyrigh t piracy remains a problem with some shops WT/TPR/M/309/Add.1 
 
- 46 - 
 
  selling pirated works, including counterfeit works originating in neighbouring countries. Illegal 
downloading from the internet is reportedly also growing fast in Brunei."  
EU Question No 23 : Could Brunei Darussalam please inform about the concrete actions including 
any legislative reform to address the situation? 
ANSWER:  Brunei Darussalam recently amended the Copyright Order in 2013, to include increased 
fines and imprisonment for piracy offences, and additional powers for enforcement agencies. The 
Attorney General’s Chambers continues to moni tor and assess the current situation in Brunei 
Darussalam, however there are currently no concrete actions for further legislative reform, in 
relation to the Copyright Order.  
4 TRADE POLICIES BY SECTOR 
4.1 Agriculture, Forestry and Fisheries 
4.1.2 Fisheries  
Page 58 point 4.22 
According to point 4.22., […] The 2011 Regulations made fishing boat registration with the Marine 
Department mandatory prior to applying for a fish ing licence. In addition, fishing gears must be 
licensed by DoF before registration of fishing boats is processed. Full implementation of the 
registration process may take time as capacity of the fishing community increases."  
EU Question No 24 : Could Brunei Darussalam give detailed assessment of the current state of 
play? 
ANSWER:  In 2015, all fishing vessels must first be registered with the Department of Marine, 
Ministry of Communication who is authorize to ensure the seaworthiness of the vessels, before the 
Department of Fisheries, Ministry of Industry and Primary Resources can issue or renew their 
fishing gear licenses. This new directives is to strengthen the national security in Brunei waters which include to prevent, deter and eliminate Ille gal, Unreported and Unregulated (IUU) Fishing.  
Prior to 2015, the Department of Fisheries, Minist ry of Industry and Primary Resources issued the 
fishing gear license first before the fishing vessel is registered with the Department of Marine. 
4.2 Energy sector 
4.2.1 Oil and gas 
4.2.1.2 Policy developments 
Page 63 point 4.46 
According to point 4.46. " Under the Petroleum Mining Act (Chapter 44), investors, including 
foreign investors, may apply for petroleum mining agreements in respect of state land, whether 
onshore or offshore; the applications are considered by the Sultan in Council."  
EU Question No 25 : Could Brunei Darussalam elaborate on the major factors to be considered by 
the Sultan in Council when examining applicatio ns in the framework of the "petroleum mining 
agreements"? 
ANSWER:  The major factors mainly centre on the potential economic and social benefits to the 
country including the commercial benefits to the country over the agreement period and the 
potential to develop the capabilities and capacity of locals. 
4.3 Manufacturing 
Page 66 point 4.63 
According to point 4.63., "Overall, the performance of the manufacturing sector has been weak in 
the last years mainly due to the relatively high cost of doing business; […]  
EU Question No 26 : Could Brunei Darussalam elaborate on the different elements of the high 
cost of doing business and how it intends to address the situation?  
Do the authorities consider any improvement for example regarding the consultation of 
stakeholders prior to adopting legislation, in the area of transparency or in enforcement?  
ANSWER:  Please refer to the answer to the Question on Ease of Doing Business from Australia.  WT/TPR/M/309/Add.1 
 
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  Page 67 point 4.70 
EU Question: Can Brunei explain the rationale behi nd the export prohibition of stone and gravel 
and how long will this restriction apply? 
ANSWER:  It is to safeguard domestic demand. 
4.4 Services 
4.4.5 Tourism 
Page 78 point 4.133 
According to point 4.133, " Travel agent services are regula ted under the Travel Agents Act 
(Amendment) Order 2012 and the Travel Agents Act (Amendment) Regulation 2012. Travel agents 
must be licensed by the Tourism Development Department. Licences are issued for a one-year period and renewed for a one year or three year period."  
EU Question No 27 : Could Brunei Darussalam clarify the criteria for renewing the licence, either 
in a "one or three year period"? 
ANSWER:  The renewal of the Travel Agents Licence either for 1 year or 3 years is dependent on 
the performance of the renewing travel agent whic h is based on their sales, financial and yearly 
report.  
Below are documents that should be submitted to TDD to renew their Travel Agents Licence: 1. Financial and yearly report 
2. Sales report 
3. List of local and foreign employees 
4. labour quota 
5. Copy of shareholders identification card 
6. Certificate copy of Registration of Business under the Registration of Company's Act 
(Section16 & 17) 
7. Tenancy Agreement 
8. Copy of Bankers Guarantee 
9. Copy of current Travel Agents Licence WT/TPR/M/309/Add.1 
 
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EU Question No 28 : Could Brunei Darussalam explain the conditions applying to foreign services 
suppliers interested in travel agencies, as well as other services like restaurants, hotels, and tour 
operator services in Brunei? 
ANSWER:  Currently all registration of companies are administered by Registry of Companies 
under the Ministry of Finance for registry of companies which will include travel agencies, hotels, 
and tour operators, where they will be issued a either a Certificate(16 & 17) or (Form X) for 
incorporated companies.  
The relevant form of legal entity on how a foreign service supplier can establish in Brunei 
Darussalam is through partnership with at least 1 of the 2 directors or if there are more than 2 
then at least 2 shall be ordinarily resident in Brunei Darussalam.  
However, restaurants are regulated by Ministry of Home Affairs through the Miscellaneous Licenses 
Act and the issuance of such licenses is only  for Bruneians who hold yellow IC holders. 
Please refer to the link for the criteria: http://www.mof.gov.bn/index .php/incorporation-of-
companies .  WT/TPR/M/309/Add.1 
 
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  WT/TPR/G/309 – WTO Government's Report 
1 GENERAL POLICY STATEMENT It is mentioned that one of the eight strategies to achieve Brunei's 2035 Vision is 'to ensure the 
proper conservation of our natural environment and cultural habitat '. However the rest of the 
report does not seem to mention any specific environmental developments.  
EU Question No 29: Could Brunei elaborate further on this point? 
ANSWER:  To ensure the proper conservation of our natural environment the Forestry Department 
had stipulated in the National Forestry Policy on environmental forestry which states that: 
 All Conservation Forests, Protection Forests, Recreational Forest, and National Parks of the 
country will be delineated and adequately documented for management and development purposes. 
 To provide essential information base for the management and administration of the 
Conservation Forests, Protection Forests, Re creational Forests, and National Parks, the 
Forestry Department will organise the required geographic and biological assessment of such 
forest categories in Brunei Darussalam, which will eventually lead to the production of 
dossier on the flora and fauna of the country and a blueprint for management and development of the same areas. 
 In anticipation of growing po pulation and development pressures on the primary resources 
of the country, and the attendant adverse effect s on wildlife, the Forestry Department will 
establish and maintain ex situ living collections of such organisms. 
 Physical facilities and operating plans, commensurate with purposes of the amenity areas, 
will be developed to ensure their maximum use. 
 Public usage in terms of visitation levels, type of use, frequency, duration of use, and users 
attitudes and preferences will be monitored to  promptly and sufficiently institute measures 
to upgrade the facilities, services and general rating of such areas; and to define new 
management opportunities options. 
 To arrest the degradation of unstable sites, and to restore vegetative cover on wastelands, 
priority will be given in their reforestation. 
 In order to foster public awareness of, and appr eciation for, the forests and their protective, 
productive, and social values, vigorous continuing formal and informal education will be instituted. Such programmes will involve all sectors and levels of society. 
 Maximum efforts will also be exerted to encour age the involvement of all sectors in forestry 
and related activities. 
 The government will intensify efforts to develop a pool of local professionals, sub-
professionals, and workers for the forestry sector. 
On the implementation, the forestry has developed a 20 years strategic planning which 
encompassed four aspects i.e. environmental cons ervation, development, social and economy. In 
the environmental conservation aspect, the department has succeed in maintaining the size of 
forest reserve at around 41% of the total land area, establishing National Forestry Policy and 
planning efficient management strategy which can help to support forest management policy, etc. 
Also in line with the mentioned strategy, there are National Park and Forest Recreational Parks 
established and developed. Meanwhile, Brunei Darussalam has also conducted silvicultural 
treatment activities in logged-over forests as the enrichment planting has already covered around 12, 955 ha and also rehabilitation or replanting activities in degraded land which already covered 
around 12 ha. 
Meanwhile, the Forestry Department is also undertaking National Forest Inventory (NFI).  WT/TPR/M/309/Add.1 
 
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  FOLLOW-UP QUESTIONS EUROPEAN UNION  
Trade Policy Review of Brunei Darussalam 
10 and 12 February 2015 
EU follow-up questions 
Page 16 para 1.18 " Brunei's economic strategy targets investment in sectors that may bring 
value-added activities, have a potential for exports, and create jobs. These sectors are: agri-food; downstream oil and gas and energy-intensive industries; information and communication 
technology (ICT); life sciences (pharmaceutical, cosm etics, and functional health food and health 
supplements); light manufacturing; services such as financial services, logistics, and tourism; and activities that may be driven by technology development . " and para 3.105 . "Since Brunei's 
previous TPR, the public sector has continued to exert a direct influence on the economy, mainly 
through state-owned enterprises (SOEs). Most of  these still operate under monopoly or hold 
exclusive rights in many sectors, including oil and gas, manufacturing, banking, telecom, and air 
transport."" 
EU Question No 4: Could Brunei elaborate on its "diversification strategy? What would be the role 
of SOEs that in some sectors are in position of monopole? What could be the role of foreign investors? 
ANSWER: To intensify the country’s economic diversification efforts, the government will further 
develop its local non-oil and gas industry and commerce. The government will also enhance the 
development of several identified economic clusters. A development strategy for local industry and commerce will also be implemented to create more opportunities to local small and medium 
enterprises (SMEs). In this regard, Brunei Darussalam established the Brunei Economic 
Development Board in which its role is to attract Foreign Direct Investment into Brunei to set up export oriented manufacturing and services acti vities in the various identified clusters.  
ANSWER: The role of the foreign investors is to provide the generation of export revenue, job 
creation, knowledge transfers and so forth, which is aimed to contribute towards Brunei’s 
economic diversification efforts.  
EU follow up question to initial question 4:  
Could Brunei further describe what would be the role of those SOEs that in some sectors are in a 
position of monopoly? 
ANSWER : One SOE is licensed under the Monopolies Act (Cap 73) as a monopoly to acquire the 
exclusive right to manufacture, sell, purchase, import, export all kinds of firearms and ammunition 
and defence equipment.  
3.1.4 Tariffs and excise duties 
3.1.4.4 Excise duties 
Page 32 point 3.26 
EU Question No 9 : How do the authorities of Brunei combine their differentiated approaches on 
excise duty applying to non-locally produced - an d import duty/no import duty on products subject 
to excise - depending on the origin of production of the goods (whether locally produced or not) with their commitments in terms of bound import duties in the WTO? How are ASEAN imports considered in this regard? 
ANSWER:  Import duties have been eliminated for goods which are subject to excise duties. 
Hence, in effect, duties applied on imported good s are either an import duty or excise duty. All 
applied import duties are below Brunei’s bound rate s of import duties at the WTO. Similarly, for 
products subject to excise duties which we have bound under the WTO, the excise duties that are 
applied are within our WTO bound rates. Under the ASEAN Trade in Goods Agreement, import duties for all ASEAN originating products (with th e exception of fireworks) have been eliminated. 
However, excise duties will continue to be levied on products listed in paragraph 3.26 of the 
Secretariat Report, even if it is imported from ASEAN. WT/TPR/M/309/Add.1 
 
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  EU follow up questions to initial question 9: 
Are excise duties or similar internal taxes applied in an equivalent manner on imported and 
domestic products? 
ANSWER : Yes.  
Can Brunei clarify the mentioned reference to “e xcise duties" which are bound under the WTO”? 
ANSWER : The WTO binding was in reference to the impo rt duty of the produc t, and not the excise 
duty. The sentence could otherwise be rephrased as follows: 
For products which we have bound under the WTO but are still subject to excise duties, the rate of 
the excise duty applied will stil l be within our WTO bound rate.  
What is the purpose of replacing WTO bound customs duties with internal taxes? ANSWER : Internal taxes can also be applied to goods produced domestically.  
Finally, the EU also notes that excise duties have increased in the recent past, and would like to 
know what are the intentions of Brunei for the future regarding these excise duties? 
ANSWER: At the current point in time, we do not have any immediate plans and would need to 
assess our current state of application of excise duties before considering anything further.  
3.2 Measures Directly Affecting Exports 
3.2.3 Export prohibitions, restrictions, and licensing 
Page 39 point 3.59 
According to point 3.59., " The Customs Order 2006 (Section 31) allows the Minister of Finance to 
prohibit imports or exports. Brunei prohibits ex ports of prawn refuse and copra cake, stone and 
gravel, and round timber of logs and sawn timber." 
EU Question No 13 : Could Brunei Darussalam explain the reasons for prohibiting the import or 
exports of the above commodities? Do these restrictions apply to ASEAN members? 
ANSWER: Prohibition on the import and export of the above commodities are due to Health, 
Safety and Environment Issue. Yes, the restri ctions are also applied to ASEAN members.  
EU Follow up question to initial question 13:  
Can Brunei further detail the type of health, safety and environmental grounds warranting export 
prohibition of prawn , copra cake stone and gravel and round timber of logs and sawn timber.  
ANSWER: Copra cake – Shipment of copra cake has been classed as dangerous due to its 
spontaneously combustive nature.  
Stone and gravel – The export of stone and gravel  is prohibited in order to safeguard domestic 
demand. 
Round Timber of logs and sawn timber – The export of timber from Brunei Darussalam is 
prohibited due to forest preservation, except under  the terms and conditions of an export permit 
issued by the Director of Forestry. The Director of  Forestry may issue an export permit for highly 
processed or finished timber products and also such categories of timber which in his opinion are unsuitable for further processing within Brunei Darussalam by reason of species or size.  WT/TPR/M/309/Add.1 
 
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  UNITED STATES 
WTO Trade Policy Review of Brunei Darussalam 
Questions from the United States 
February 10, 2015 
Part I: Questions on the Secretariat Report  
1.3 Outlook 
Page 15, paragraph 1.16: The Secretariat Report notes that Brunei remains highly dependent on 
oil and gas production, and that the authorities are concerned about fluctuating global energy 
prices. Could Brunei elaborate on how it expects low oil prices to affect its economic growth, and its fiscal and current account balances? Is Brunei prep ared to handle an extended period of low oil 
prices? 
ANSWER:  Please refer to answer to Question II on Economic Environment from Chinese Taipei. 
Page 16, paragraph 1.18: The Secretariat Report notes that fuel subsidy reform could provide 
fiscal space to maintain development expenditures and reduce distortions that inhibit efforts to 
diversify the economy away from oil and gas production. Has Brunei considered taking advantage 
of the period of current low oil prices to reduce these subsidies with minimal effect on low-income consumers? 
ANSWER:  There are no current plans to change the subsidization given to petroleum products for 
local consumption.  
3.3.3 State trading, state-owned enterprises and privatization 
Page 47, paragraph 3.103: The United States also notes that Brunei has not filed notifications on 
state trading enterprises (STE) with the WTO. When will Brunei be making its notification on STEs?  ANSWER:  The State Store and Supply Department (SSSD) acts as a body that procures and store 
rice and sugar for reasons of national food security. Local traders are allowed to import rice and 
sugar, however, there are specific varieties of rice and sugar that only the SSSD can import, to 
ensure adequate amounts are available for dome stic consumption. The SSSD does not export 
neither commodity. The SSSD therefore functions di fferently from the State Trading Enterprises 
defined under the Understanding on the interpreta tion of Article 7 of the General Agreement on 
Tariffs and Trade (GATT) 1994.  
Page 47, paragraph 3.105: The Secretariat’s Report gives examples of sectors where enterprises 
operate under monopoly or hold exclusive rights. Please clarify whether this statement is correct. 
If so, please explain how the entities in these sectors do not meet the definition in paragraph 1 of 
the Understanding on the Implementation of Arti cle XVII of GATT 1994. If they do meet the 
definition, please clarify when these entities will be notified to the Working Party on State Trading 
Enterprises.  
ANSWER:  Refer to the answer to the Question on State trading, state-owned enterprises and 
privatization from the EU. 
3.3.5. Intellectual property rights 
Page 49, paragraph 3.118: The Secretariat Report states that Brunei's "accession to the WIPO 
Copyright Treaty and WIPO Performances and Phonograms Treaty is under consideration." Please 
provide an update on the status of the Government 's consideration of accession to these treaties. 
Does the Government have an anticipated timeframe as to when accession may occur? 
ANSWER:  There is no anticipated timeframe as to possible accession, and Brunei Darussalam is 
still in the process of considering accession to the WCT and WPPT.  
Page 53, paragraph 3.132: The Secretariat Report indicates that Brunei’s trademark act “provides 
for the registration of geographical indications as collective and certification marks. However, the WT/TPR/M/309/Add.1 
 
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  owner of such collective or certification mark cannot prohibit the honest (industrial and 
commercial) use of geographical indications. Brunei is exploring the possibility of introducing a more comprehensive geographical indication system.” 
a. Please provide more information regarding the statement that “the owner of… a 
collective or certification mark cannot prohibit the honest… use of geographical 
indications.” 
ANSWER:  The mark shall not entitle the proprietor to prohibit a third party from using such signs 
or indications in the course of trade, provided that he uses them in accordance with honest 
practices in industrial or commercial matters. In particular, the mark may not be invoked against any third party who is entitled to use a certain geographical name.  
b. Additionally, please provide information on possible changes that are being contemplated 
to introduce a “more comprehensive geographical indication system.” Will Brunei ensure 
that the grounds for refusing protection or recognition of geographical indications (GIs) include if the proposed GI is determined to likely cause confusion with a prior sign 
(whether a prior GI or a prior trademark) or if the proposed GI is perceived to be the 
common name (generic) of a good in Brunei? Do interested parties have an opportunity to oppose a proposed GI before it is protected as well as seek cancellation after such 
protection is granted? Under what grounds can an opposition or cancellation proceeding 
be brought? 
ANSWER:  At present, no decision has been made as to whether BruIPO will implement a 
sui generis  system for GIs in the near future. BruI PO is merely exploring the possibility. 
c. As part of that “more comprehensive geog raphical indication system,” does Brunei 
intend to alter the scope of GI protection in Brunei? What will be the relationship be between the system for the registration of geographical indications as collective and 
certification marks and the more comprehensive system? 
Page 53, paragraph 3.135, Table 3.16: The Secretaria t Report states that "Further amendments to 
the Copyright Order are expected with stricter fine s for infringement." Please provide the status of 
Brunei's consideration of these amendments and state whether any proposals other than stricter 
fines for infringement are being considered. If so, please describe those proposals. 
ANSWER:  As amendments to the Copyright Order were made recently in 2013, Brunei 
Darussalam is still in the process of implementing  these amendments and as such no proposals or 
information on further amendments is available at the moment.  
4. TRADE POLICIES BY SECTOR 
4.1 Agriculture, Forestry and Fisheries 
4.1.1 Agriculture 
4.1.1.2 Agricultural Policy 
Page 56, paragraphs 4.8-4.9: The Secretariat Report notes that “National Rice Production Towards 
Self-Sufficiency in Brunei Darussalam Program,” launched in 2009, has doubled rice production. 
a. Please explain how this program is implemented and clarify whether the steps being 
taken, as described in paragraph 4.9, are part of this program. 
ANSWER:  Strategies taken for rice self sufficiency program: 
a. Opening of new areas 
b. Use of high and automated technology 
c. Upgrade agriculture infrastructure 
d. Use of modern high-yielding varieties 
e. Commercial production 
b. Please indicate what aspects of the program have been key to the increase in rice 
production. 
ANSWER:  Key aspects of the program: WT/TPR/M/309/Add.1 
 
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  Infrastructure, irrigation and drainage developmen t. To highlight this main contributing factor, 
over 200 hectares in Wasan Rice Project is the ma in example of a fully irrigated rice production 
area in comparison to the other rice producing areas which are rain fed. Wasan has now become the highest producing area in the whole of Brun ei and is the determining factor to the gross 
national output of rice annually, due to the availability of said infrastructure, and therefore, able to 
grow newer modern high yield varieties. Wasan has been opened since the 1970s and the soil in this area has been conditioned to grow two seasons of rice per year.  
c. Please provide specifics regarding how the irrigation project cited in paragraph 4.9 is 
being implemented. 
ANSWER:  Steps have been taken to ensure that the irrigation system reaches out to all rice 
growing areas in the Brunei Muara district.  
Other districts such as Temburong and Belait will be the next target areas for infrastructure 
development in the near future.  
Page 56, paragraph 4.10: The Secretariat report notes “private companies are being encouraged 
to support smallholders as service providers in terms of farm mechanization and transportation.” 
Please further explain this statement. 
ANSWER:  In the present situation, the Department of Agriculture and Agrifood holds a number of 
roles and responsibilities such as providing machinery services to carry out farm activities, such as 
tilling and levelling during land preparation, transplanting, harvesting as well as post-harvest management. Some of the services are partly priv atised but currently there are not many private 
companies which have the approprite facilities and machineries. 
Nevertheless, the Department is going to outsource and privatise fully most of these roles and 
focus on active monitoring roles, advisory services and providing courses through the established Rice Farmers’ Field School (RFFS). The participat ion of the private companies is encouraged in 
order to take over the government roles as servic e providers to the farmers. This will ultimately 
enhance the growth of the spin-off of the agribusiness sector in Brunei. 
Page 56, paragraph 4.16: According to the Secret ariat Report, Brunei has been WTO Member since 
1995 but to date has not made any notification of domestic support, export subsidies and export 
restrictions. When will Brunei be making its notification of export support and export restriction available? 
Page 57, paragraph 4.18: According to the Secretariat report, the DOAA purchases rice from local 
producers at a price of B$16 per 10kg. Please expl ain how this price is determined and how often 
it is adjusted or considered for adjustment. 
ANSWER:  Please refer to the answer to Question 4 on Trade Policy by Sector from Australia.  
4.1.2 Fisheries 
Page 60, paragraph 4.32: According to the Secretariat Report, fisheries activities are eligible for 
loans and other support. Please describe how these loans and other support measures operate, 
including whether they provide support for increased fishing capacity.  
ANSWER:  All fisheries companies are eligible for loans under the Ministry of Industry and Primary 
Resources, namely the Enterprise Facilitation Scheme (EFS) and Microcredit Facilitation Scheme. 
Both schemes, as the names suggest, provide support or facilitate for the ease of start of 
businesses in the fisheries industry and for the ease of operation of these businesses.  
Such supports are only extended to the fisheries companies that are already given fishing licenses 
to operate based on the maximum allowable number of vessels that can operate in Brunei waters. 
Thus the fishing capacity is always cont rolled by this maximum allowable number. 
4.1.3 Forestry 
Page 60, paragraph 4.35: According to the Secretariat Report, Brunei is providing investment 
opportunities to the private sector on the basis of sustainable forest management, and the 
implementation of Brunei's Selective Felling System aims to ensure the sustainable growth and WT/TPR/M/309/Add.1 
 
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  production of the local timber industry on the basis of biological diversity conservation. How is 
Brunei determining and monitoring sustainable forest management?  
ANSWER:  Sustainable forest management in Brunei Darussalam refers to the four Forestry 
Strategic Pillars as stipulated in the Forestry Strategic Planning i.e. environmental conservation, 
development, social and economy. Brunei Darussalam is currently in the early stage of get the 
forest certification. 
How does the Selective Felling System work to ensure the sustainable growth and production of 
the local timber industry on the basis of biological diversity conservation?  
ANSWER:  Logging in Brunei Darussalam is through an allowable annual Logging Quota and 
follows strictly to the Brunei Logging Guideline, which primarily aimed to give information on 
timber logging procedures in Brunei Darussalam; this include the facilitation of the day-to-day 
supervision and logging activities monitored by appo inted field officers, and ensuring that all such 
related logging activities is in accordance to Brunei Selective Felling System (BSFS). Items included in the Brunei Selective Felling System are: 
 Post-felling inventory. 
 Harvesting operation: identifying compartm ent and logging block and preparing working 
map, selecting timber to be felled according to girth limit and expected level of damage to 
the surrounding, selecting residual stands, tree ma rking, felling direction, buffer zone of 50 
metres along river, etc. 
 Silvicultural treatment in logged-over areas. 
Does this explicitly include protection of endangered and threatened timber species?  
ANSWER:  Yes, the BSFS includes the protection of species listed in the red book of IUCN and 
CITES list.  
Page 61, paragraph 4.40: According to the Secretariat Report, Brunei restricts certain imports and 
exports of timber and timber products for environmental reasons. Please explain the basis for the 
restrictions on imports and exports of timber and products thereof (sections 3.1.5.2 and 3.2.3), as 
well as identify the particular species at issue and whether they are regulated by domestic law or 
under CITES. 
ANSWER:  On imports, the restriction is more towards regulating and controlling the imports of 
certain timber products.  
Such restriction is undertaken: 
 To ensure the quality of the timber products imported into the country. 
 Stabilize the local market price 
 Reduce the dependency on local timber supply due to limited forest resources. 
On exports, the export of logs / round timbers is prohibited, whereas the expo rt of semi and highly 
processed timber products is allowed. 
Such restriction is undertaken due to: 
 Maximize the utilization of the timber products by the industry. 
 Encourage production of high value timber products. 
Regarding these restrictions, there is no particular species at issue. However, according to Laws of 
Brunei, Chapter 46: Forest Act, Forest Rules, under  section 52, Part V, rule 19, “The export of 
timber from, or import of timber into, Brunei Darussalam is prohibited except under the conditions 
of an export or import permit issued by the Dire ctor: Provided that in his discretion the Director 
may issue an export or import permit for highly processed or finished timber products and also 
such categories of timber which in his opinion are unsuitable for further processing within Brunei 
Darussalam by reason of species or size”. WT/TPR/M/309/Add.1 
 
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  4.3 Manufacturing 
Page 67, footnote 71: The Secretariat Report notes, "Halal food processing, packaging and 
biotechnology will be established to support halal food industry." What policies does Brunei intend 
to implement for biotechnology? 
ANSWER:  The Ministry of Industry and Primary Resources, through Halal Industry and Innovation 
Center (HIIC) is responsible for the development of the local Halal industry and biotechnology 
through the BioInnovation Corridor (BIC).  
The BIC intends to develop an internationally renowned Halal-themed industry park as part of the 
wider economic diversification strategy, to accommodate research and innovative technology applications, to build on and support the developmen t of Brunei Halal Brand, to create a lively and 
mixed use environment and to generate employment opportunities.  
BIC capitalizes on Brunei Darussalam’s unique offerings on high quality Halal Certified food and 
non-food products, and its gateway status into the Borneo Island and the BIMP (Brunei Darussalam-Indonesia-Malaysia-Philippines) East Asean Growth Area (EAGA), China, Korea and 
Japan.  
4.4.2 Financial Services 
Page 68, paragraph 4.78: The Secretariat Report notes that Brunei introduced interest rate 
regulations in March 2013, and that overall credit grew between December 2012 and June 
2014. But data from the IMF suggests that credit to the private sector began expanding in mid-2012 — before the interest-rate regulations were introduced — and that private credit growth peaked in the third quarter of 2013 and has slow ed since then. Given this, is the government 
concerned that the credit growth was, in fact, due to other factors than the interest-rate 
regulations, and that these regulations may lead banks to ration credit to riskier small- and medium-enterprises that need it the most? 
ANSWER:  Overall, credit has increased by 9.1% from  B$5.2 billion (2012) to B$5.7 billion (2014). 
This was largely contributed by private sector financing. 
Credit to private sector has increased by 34% fr om B$2.0 billion in mid-2012 to a peak of B$2.6 
billion in Q3 of 2014 which was contributed mainly by the increase in transportation sector.  
Credit growth will depend on whether there is an o pportunity to do so and will grow when there is 
a development activity in a country as well as positive economic outlook locally and globally. 
It is in AMBD’s interest to ensure the regulated rates remains relevant and reasonable to the 
banking sector while at the same time making them  affordable to targeted  sectors such as SMEs. 
Part II: Questions on the Government report 
Page 3, paragraph 1.4: In the Government Report, an  environmental strategy is noted in bullet 8 
of paragraph 1.4. Can Brunei elaborate on this and if the sustainable fisheries and forestry 
management activities programs fall under this st rategy? How will this strategy be implemented, 
and what does it encompass (Sustainable forestry ? Fisheries? Wildlife protections? Clean air and 
water?)? Has Brunei begun to implement this strategy?  
ANSWER:  Please refer to the answer on Question 29 from the EU.  
With regard to Fisheries, there are legislation wh ich exists to regulate the management of fishery 
activities and fishing areas as well as marine reserves and marine parks. The Brunei Fishery Limits 
(Cap 130) and Fisheries Order 2009 provide such le gislative infrastructure under the custodian of 
the Department of Fisheries.  
__________