WT/TPR/S/309/Rev.1  
7 April 2015  
(15-1869)  Page: 1/88  
Trade Policy Review Body   
 
 TRADE POLICY REVIEW 
REPORT BY THE SECRETARIAT 
BRUNEI DARUSSALAM  
Revision 
This report, prepared for the third Trade Policy Review of Brunei Darussalam, has been drawn up 
by the WTO Secretariat on its own responsibili ty. The Secretariat has, as required by the 
Agreement establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement 
Establishing the World Trade Organization), sought clarification from Brunei Darussalam on its trade policies and practices.  
Any technical questions arising from this report may be addressed to Mr Ricardo Barba-Viniegra 
(tel: 022/ 739 5088) and Ms Stéphanie Dorange (tel: 022/739 5497).  
Document WT/TPR/G/309 contains the policy statement submitted by Brunei Darussalam. 
 
 
Note: This report was drafted in English. WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  CONTENTS 
SUMMARY ....................................................................................................................... . 6 
1   ECONOMIC ENVIRONMENT ........................................................................................ 10  
1.1   Recent Econ omic Developments.................................................................................. 10 
1.2   Trade Performance and Investment ............................................................................. 11 
1.2.1   Trade in g oods and se rvices .................................................................................... 11 
1.2.2 Foreign dire ct invest ment ......................................................................................... 15 
1.3   Outlook ................................................................................................................... 15 
2   TRADE AND INVE STMENT RE GIME ............................................................................ 17  
2.1   General Institutional and Legal Framework ................................................................... 17 
2.2   Trade Policy Form ulation and Ob jectives ...................................................................... 17 
2.3   Trade Agreements and Arrangements .......................................................................... 17 
2.3.1   WTO ................................................................................................................... . 17 
2.3.2   Regional Trade Agreements ..................................................................................... 18 
2.3.2.1   ASEAN ............................................................................................................... 18 
2.3.2.2   Trans-Pacific Strategic Economic Partnership (TPSEP) Agreement ............................... 20 
2.3.2.3   Bilateral agreements ........................................................................................... 20 
2.3.2.4   Other arrangements ............................................................................................ 21 
2.4   Investme nt regime ................................................................................................... 21 
2.4.1   Legal framework .................................................................................................... 21 
2.4.1.1   Incentives .......................................................................................................... 22 
2.4.2   Starti ng a bu siness ................................................................................................ 23 
3   TRADE POLICIES AND PRACTICES BY MEASURE ........................................................ 26  
3.1   Measures Direct ly Affectin g Imports ............................................................................ 26 
3.1.1   Customs procedur es and requirements ..................................................................... 26 
3.1.2   Custom s valuation ................................................................................................. 27 
3.1.3   Rules of origin .......................................................................................................  27 
3.1.4   Tariffs an d excise duties ......................................................................................... 28 
3.1.4.1   MFN applied tariff ................................................................................................ 28 
3.1.4.2   Bound tariff ........................................................................................................ 31 
3.1.4.3   Preferential tariff ................................................................................................. 31 
3.1.4.4   Excise duties ...................................................................................................... 32 
3.1.5   Import prohibitions, restrictions, an d licensing ........................................................... 33 
3.1.5.1   Import prohibitions ............................................................................................. 33 
3.1.5.2   Import restri ctions and licens ing ........................................................................... 34 
3.1.6   Contingenc y trade me asures ................................................................................... 35 
3.1.7   Standards and othe r technical requirements .............................................................. 35 
3.1.8   Sanitary and phyt osanitary requ irements .................................................................. 37 
3.1.9   Labelling and marking ............................................................................................ 38 
3.2   Measures Directly Affecting Exports ............................................................................. 38 WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  3.2.1   Export procedur es and requirements ........................................................................ 38 
3.2.2   Export taxes, charges, an d levies ............................................................................. 39 
3.2.3   Export prohibitions, restrictions, and licensing ............................................................ 39 
3.2.4   Expo rt support ...................................................................................................... 40 
3.2.4.1   Duty drawback ................................................................................................... 40 
3.2.4.2   Tax exemption .................................................................................................... 40 
3.2.4.3   Export processing zones ....................................................................................... 40 
3.2.5   Export finance, insurance, and promotion .................................................................. 41 
3.3   Measures Affectin g Production and Trade ..................................................................... 41 
3.3.1   In centives ............................................................................................................  41 
3.3.1.1   Tax incentives .................................................................................................... 41 
3.3.1.2   Other financial support ........................................................................................ 43 
3.3.1.3   Supp ort to SMEs ................................................................................................. 43 
3.3.1.4   Research and development ................................................................................... 44 
3.3.1.5   Supporting St art-Ups and I nnovati on ..................................................................... 45 
3.3.1.6   Credit support .................................................................................................... 45 
3.3.2   Competition policy, consumer protection, and price controls ......................................... 45 
3.3.2.1   Competition policy .............................................................................................. 45 
3.3.2.2   Consum er protection ........................................................................................... 46 
3.3.2.3   Pric e contro ls ..................................................................................................... 46 
3.3.3   State trading, state-owned enterprises, and privatization ............................................. 47 
3.3.4   Governme nt procurement ....................................................................................... 48 
3.3.5   Intellectual property rights ...................................................................................... 49 
3.3.5.1   Overview ........................................................................................................... 49 
3.3.5.2   Patents .............................................................................................................. 50 
3.3.5.3   Trademarks, industrial designs and indust rial layouts ............................................... 52 
3.3.5.4   Copyright and related rights ................................................................................. 53 
3.3.5.5   Enforcement ....................................................................................................... 53 
4   TRADE POLICIES BY SECTOR ..................................................................................... 55  
4.1   Agriculture, Fo restry and Fisheries .............................................................................. 55 
4.1.1   Agriculture ............................................................................................................ 55 
4.1.1.1   Main features and recent developments .................................................................. 55 
4.1.1.2   Agricultural policy ............................................................................................... 56 
4.1.2   Fisheries ............................................................................................................... 58 
4.1.3   Fo restry  .............................................................................................................. . 60 
4.2   Energy  sector .......................................................................................................... 61 
4.2.1   Oil and gas ...........................................................................................................  61 
4.2.1.1   Recent  developments .......................................................................................... 61 
4.2.1.2   Policy developments ............................................................................................ 63 
4.2.2   El ectricity ........................................................................................................... .. 65 WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  4.3   Manuf acturi ng .......................................................................................................... 66 
4.4   Services ................................................................................................................ .. 67 
4.4.1   Overview ..............................................................................................................  67 
4.4.2   Financial services ................................................................................................... 68 
4.4.2.1   Overview ........................................................................................................... 68 
4.4.2.2   Banking .............................................................................................................  69 
4.4.2.3   Insura nce .......................................................................................................... 70 
4.4.3   Telecommunications ............................................................................................... 71 
4.4.4   Transport .............................................................................................................  74 
4.4.4.1   Air transport ....................................................................................................... 74 
4.4.4.2   Mariti me tran sport .............................................................................................. 76 
4.4.5   Tourism ................................................................................................................ 77 
REFERENCES .................................................................................................................. 7 9 
5   APPENDIX  TABLES .................................................................................................... 82  
 
CHARTS 
 
Chart 1.1 Product composition of merchandise trad e, 2008 an d 2013 ...................................... 13 
Chart 1.2 Direction of merchandise trade, 2008 and 2013 ...................................................... 14 
Chart 3.1 Distribution of MFN app lied tariff rates,  2007 and 2014 ........................................... 29 
Chart 3.2 Average applied MFN and bound ta riff rates by HS se ction, 2007 and 2014 ................ 31 
Chart 3.3 Patent ing process .............................................................................................. 51 
 
TABLES 
 
Table 1.1 Selected economic indicators, 2008-13 .................................................................. 11 
Table 1.2 Balance of payments, 2008-13 ............................................................................. 12 
Table 1.3 FDI inflows by se ctor and count ry, 2008- 13 ........................................................... 15 
Table 2.1 Notifi cations,  2008- 14 ........................................................................................ 18 
Table 2.2 Investment incentives ......................................................................................... 23 
Table 2.3 Miscellaneous licences, 2014 ................................................................................ 24 
Table 3.1 Overview of origin determination across ASEAN agreements post-2008 ...................... 28 
Table 3.2 Tariff structure, 2007 and 2014 ............................................................................ 28 
Table 3.3 Applied MFN tariff summary, 2014 ........................................................................ 30 
Table 3.4 Summary analysis of Brunei's preferential tariffs, 2014 ............................................ 32 
Table 3.5 Specific ex cise duti es, 2014  ................................................................................. 32 
Table 3.6 Prohibited  imports,  2014  ..................................................................................... 33 
Table 3.7 Restricted  imports,  2014  ..................................................................................... 34 
Table 3.8 Licensed  imports,  2014  ....................................................................................... 35 
Table 3.9 Restricted  exports,  2014  ..................................................................................... 39 
Table 3.10 Licensed  exports,  2014  ..................................................................................... 40 WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  Table 3.11 Feature of loan s and grants to MSMEs ................................................................. 44 
Table 3.12 Price-contro lled goods, 2014 .............................................................................. 47 
Table 3.13 Main state-owned enterprises, 2014 .................................................................... 47 
Table 3.14 Patent indicators, 2008-13 ................................................................................. 52 
Table 3.15 Overview of trademarks, industrial designs, and layout designs ............................... 52 
Table 3.16 Overview of copyright and related rights .............................................................. 53 
Table 4.1 Agricultural  production , 2008-13  .......................................................................... 55 
Table 4.2 Agricultural se lf-sufficien cy, 2008- 13 .................................................................... 56 
Table 4.3 Prices of rice and sugar imported by SSSD ............................................................. 58 
Table 4.4 Fisheries production, 2008-13 .............................................................................. 59 
Table 4.5 Logging production , 2008- 12 ............................................................................... 60 
Table 4.6 Oil and natural gas production, export and domestic consumptio n, 2008- 13 ............... 61 
Table 4.7 Oil and gas export s by destinat ion, 2008- 13 .......................................................... 62 
Table 4.8 Main petroleum activities, 2014 ............................................................................ 64 
Table 4.9 Selected financial soundness in dicators of commerc ial banks,  2008-13  ...................... 70 
Table 4.10 Selected telecommuni cation indica tors, 2008 -13 ................................................... 72 
Table 4.11 Air traffic indicators, 2008-13 ............................................................................. 74 
Table 4.12 Incentives on la nding and parking fees ................................................................ 75 
Table 4.13 Muara Port traffic, 2008-13 ................................................................................ 77 
Table 4.14 Tourism in dicators, 2008-13  .............................................................................. 77 
 
APPENDIX TABLES 
 Table A1. 1 Merchandise trade by product group, 2008-13 ..................................................... 82
 
Table A1. 2 Merchandise trade by destination and origin, 2008-13  .......................................... 83 
 
 
Table A2. 1 Main trade-re lated legislat ion, 2014 ................................................................... 84 
Table A2. 2 RTAs that entere d into force du ring 2008 -14 ....................................................... 86 
 
 
Table A4. 1 Modalities of bilateral air transport agreements .................................................... 88 WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  SUMMARY 
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. 
2. Brunei's economy grew at an average annual rate of 0.2% during 2008-13 mainly due to 
lower oil and gas production. Real GDP growth of  5.3% is expected in 2014 as large energy-
related projects begin production. Under its National Vision 2035, Brunei aims to achieve annual real GDP growth rates of 5-6% which may require increasing overall productivity, particularly in 
the government sector (including state-owned enterprises) being the largest employer. 
3. Sizable hydrocarbon exports and the steady accumulation of long-term foreign assets over 
many years have provided Brunei with a comfortable balance of payments position, which also 
reflects the big gap between savings and investment. The external current account surplus, as 
percentage of GDP, fell from 48.9% in 2008 to 31.5% in 2013 because of the important reduction in oil and gas export revenues and, consequently, Brunei's trade balance surplus decreased from 
US$7,867 million in 2008 to US$6,916 million in 2013. 
4. Petroleum and natural gas represented 96.5% of total merchandise exports in 2013 (97.8% 
in 2008). The remaining exports are manufactures,  mostly machinery and transport equipment. 
Brunei's exports are mainly destined to Japan and other countries in East Asia. Machinery and 
transport equipment are Brunei's most important import category, accounting for 37% of total 
imports in 2013 (44% in 2008). Its merchandise imports also originate mainly in East Asia, led by Malaysia. Brunei is, increasingly, a net importer of services.  
5. FDI inflows have increased during the last years but remain relatively small averaging some 
US$600 million per year in 2008-13. Success in attracting larger FDI inflows has been hampered by increased competition from neighbouring economies. Brunei would benefit from further 
improvement of its business climate, and its FD I policies could also be more transparent, 
particularly with respect to limits on foreign equity participation, partnership requirements, and identification of sectors in which FDI is restricted. Full foreign investment may be allowed in most activities, except in those that use natural resources, relate to food security, and are located in 
industrial sites for which 30% minimum local equity participation is required.  
6. Brunei has eight RTAs encompassing 16 partners: the other nine parties of ASEAN; six 
countries that have negotiated agreements with ASEAN (Australia and New Zealand, China, Japan, 
Republic of Korea, and India), and Chile in the context of the Trans-Pacific Strategic Economic 
Partnership (TPSEP). Five RTAs entered into fo rce during the review period: four are RTAs 
negotiated in the context of ASEAN, and one bilate ral arrangement with Japan. Brunei's RTAs have 
been notified to the WTO. 
7. Brunei is an original Member of the WTO, and grants at least MFN treatment to all its 
Members. It has never been involved in any trad e dispute. During the review period, Brunei made 
a number of notifications to the WTO, but some remain outstanding, particularly in agriculture and 
import licensing. Since 2008, Brunei has adopted new trade-related legislation in the areas of 
business environment, financial services, fisherie s, intellectual property, and TBT. Additional 
legislation on standards and competition is being drafted. Brunei has no legislation pertaining to 
contingency trade remedies. It does not participate in the Information Technology Agreement. 
8. During the review period, Brunei took steps to further facilitate trade, such as e-Customs 
which has been fully operational since 2008 allowing traders to submit applications electronically, 
and Brunei Darussalam National Single Window (BDNSW) which began to operate, in phases, in 
January 2014 and will allow applications for several trade procedures (e.g. certificates of origin and import permits). BDNSW is expected to be integrated into a wider ASEAN level single window system in the future. Brunei has no customs fees for import/export procedures or registration. WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  9. Goods imported into Brunei may be subject to import and excise duties (there is no VAT). 
Since its last TPR, Brunei has introduced new excise duties on liquors, tobacco, vehicles, nuclear reactors, boilers, machinery, and mechanical appliances, and medical or surgical instruments. The authorities informed that these new excise duties are levied for fiscal, social, health, and 
environmental considerations. The authorities also indicated that goods subject to excise duties 
are not manufactured in Brunei. 
10. Brunei applies relatively very low tariffs. With the adoption of the 2012 ASEAN Harmonized 
Tariff Nomenclature, the number of Brunei's tariff lines (at the HS ten-digit level) was reduced 
from 10,689 in 2007 to 9,916 lines in 2014, and the simple average applied MFN rate decreased from 4.8% in 2007 to 1.7% in 2014.  Specific tariff lines were reduced from 131 in 2007 to 55 in 
2014 which enhances transparency.  
11. The coverage of  Brunei's bound tariff lines went from 92.8% in 2007 to 89.1% in 2014 also 
because of the changes in HS nomenclature. There remains a significant gap between the overall bound average of 25.4% and Brunei's applied MFN tariff of 1.7% which undermines predictability. 
The difference is even larger in agriculture where the bound average tariff is 23.1% and the MFN 
tariff rate is zero. 
12. Import and export prohibitions, restrictions, and licensing requirements apply on various 
products for safety, health, and moral grounds. In some cases, Brunei maintains export 
restrictions on certain goods, such as sugar, rice, paddy and products thereof, to ensure adequate domestic supply and price stability.  
13. In 2010, the National Standards Council, und er the Ministry of Industry and Primary 
Resources, was established as the body responsible to monitor and strengthen standards and 
conformance activities in Brunei. There are no technical regulations in Brunei. It has 83 national standards, mainly on construction and electrical-related products; 53 have been directly adopted 
from international standards. Brunei is still to notify its enquiry point to the WTO Committee on 
Technical Barriers to Trade. 
14. In order to encourage investment in priority sectors and production for export, Brunei 
continues to use extensive tax and other incentives. During the review period, Brunei changed the 
Income Tax Act to reduce tax liabilities of ente rprises, with the exception of those engaged in 
petroleum activities. The income tax rate decr eased from 27.5% in 2008 to 20% in 2014, and will 
be further reduce to 18.5% as from 2015. Also, ta x thresholds were introduced in 2008 to further 
reduce corporate tax burden.  
15. Since 2008, three grant and loan schemes have been created and two more revised to help 
micro, small, and medium sized enterprises grow, consolidate, and internationalize. Three grant 
schemes have also been established to support start-ups and innovation. Under the 10
th National 
Development Plan 2012-17, Brunei has allocated 1% of GDP (B$200 million) to R&D and innovation to help achieve economic diversification.  
16. In line with commitments under the ASEAN Economic Community, since 2011 Brunei has 
been drafting comprehensive competition legislation. At present, competition issues are addressed on a sector-by-sector basis and tackled by its respective regulator. Competition regulations exist in telecommunications, financial services, and energy, although in limited forms. 
17. Goods subject to price control increased substantially during the review period. Currently, 
there are 19 categories of products for which maximum retail prices are set (e.g. rice and sugar). Prices/tariffs of housing, petroleum products, utilities, healthcare, and telecom services continue to 
be subsidized in Brunei. Fuel subsidy reform over the medium term could provide fiscal space to 
maintain development expenditures and reduce distortions that could limit diversification efforts. 
18. The public sector continues to exert a direct influence on the economy, mainly through 
state-owned enterprises. Some of these still operate under monopoly or hold exclusive rights in 
sectors such as oil and gas, manufacturing, banking, telecom, and air transport. Brunei's 
Privatization Master Plan is in the process of being completed.  WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  19. As the Government is the largest operator in the economy, procurement also plays an 
important role. Some changes have recently been made to the legal framework, including adjusting the thresholds under the different procurement methods. Brunei is not a party to the WTO Agreement on Government Procurement. 
20. Main changes to Brunei's IPR regime since its last TPR include the restructuring of the 
administrative system, notably the establishment of the Brunei Intellectual Property Office, as well as the entry into force of a new patent law in 2011 which, inter alia , established a national patent 
system. Brunei has made concerted efforts to improve IPR enforcement, in particular to curb 
copyright piracy through, for example, an increa se in fines and prison sentences. During the 
review period, Brunei acceded to three additional  WIPO-administered treaties and is considering 
acceding to others. 
21. Under its National Vision 2035, Brunei has identified the following activities that may 
increase value-added, exports, and jobs creation: agri-food; downstream oil and gas and energy-intensive industries; information and communication technology; life sciences 
(pharmaceutical, cosmetics, and functional health food and health supplements); light 
manufacturing; services, such as financial services and tourism; and other activities that may be technology driven.  
22. Despite its relatively small share of total real GDP (1%), agriculture and related activities is 
of key importance in the economy because of Brunei' s food security and self-sufficiency objectives. 
As a net importer of agricultural products, food security is mainly promoted through zero applied 
MFN and preferential tariffs. The agri-food proce ssing industry has increased its participation in 
agricultural production supported by growing domestic demand in halal food and the authorities' 
efforts to market the "Brunei Halal brand" at regional and international level. Brunei maintains a system of subsidy for rice and sugar to protect consumers from increases in commodity prices. 
23. The energy sector, mainly oil and gas, remains the backbone of Brunei's industrial output 
and trade. However, oil and gas production shru nk at an annual average rate of -1.8% during 
2008-13 partly due to maintenance works. The largest oil and gas operator and producer remains 
the state-owned Brunei Shell Petroleum (BSP) by virtue of its control of the major oil and natural 
gas fields. While BSP operates a concession, the exploration and development of a number of new onshore and offshore blocks have been offered on production sharing basis. 
24. Brunei has the lowest 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 . Steps are being taken to reduce 45% of its 
energy intensity by 2035 and improve efficiency. In 2012, a progressive electricity tariff structure 
was introduced to reduce the government power subsidy by more than half. 
25. Overall, the performance of the manufacturing sector has been weak in recent years partly 
due to the relatively high cost of doing business,  shortage of skilled and unskilled workers, and 
lack of competitiveness of local products. To encourage private participation, manufacturing 
companies are eligible to receive financial support, incentives, and other measures. The Government also invests directly, mainly through its company Semaun Holdings which still dominates manufacturing. In addition, the Government is promoting and managing large-scale 
industrial sites, including industrial parks that cater to downstream petrochemicals plants. 
26. Since its establishment in 2011, the Autoriti Monetari Brunei Darussalam, a statutory body 
acting as the central bank, has been responsible for the supervision and regulation of the financial 
system. Brunei aims to become a regional financial centre for Islamic financial services. In terms 
of banking, the main change over the review peri od was the adoption of the Islamic Banking Order 
2008 which harmonized Islamic and conventional ba nking regulations. Brunei does not have its 
own stock exchange and the capital market still is in an infant stage. It is not a signatory to the 
Fifth Protocol to the GATS (on financial services). 
27. A complete review of the telecoms regulatory framework is being undertaken so as to have 
a single converged regulator for telecoms  and broadcasting by 2015. Moreover, a 
Telecommunications and Broadcasting Competition Code, Brunei's first-sector specific competition 
code, is expected to be implemented in 2015. A new Tariff Regulation Code of Practice will be also WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  introduced to regulate retail and wholesale tariffs for telecoms and broadcasting infrastructure and 
services. Currently, there are two mobile op erators, and the state-owned Telekom Brunei 
continues to have the monopoly over the fixed-line market . 
28. Brunei has liberalized international air transport through bilateral, regional, and plurilateral 
agreements. It has signed 36 bilateral air agreements of which five integrate open sky arrangements. Since 2009, three regional open sky agreements came into force with a view to 
establish the ASEAN Single Aviation Market. Most of Brunei's international waterborne trade is 
carried by foreign vessels.  
 WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  1  ECONOMIC ENVIRONMENT 
1.1  Recent Economic Developments 1.1.  At the time of the second TPR of Brune i Darussalam in 2008, economic growth had resumed 
following the recession of the late 1990s. Nonethel ess, its modest annual average GDP growth rate 
of 2.5% during 2002-06 was insufficient to generate enough jobs for Brunei's growing labour 
force, a cause of concern among Bruneians. 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.
1 
1.2.  Since then, Brunei experienced an import ant contraction in economic activity in 2008-09 
mainly due to the global financial crisis. From 2010 to 2012, its GDP growth rates were positive 
with the non-energy sector, led by services, grow ing in general faster than the energy sector.2 In 
2013, the economy contracted again (-1.8%) as the energy sector GDP declined 7.2% due to lower oil and gas production (section 4.2.1.1). In  2013, the non-energy sector GDP grew by 2.7% 
driven by public development expenditure and property financing.
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 Government.4 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. 
1.4.  On 1 January 2011, the Autoriti Monetari Brunei Darussalam (AMBD), a statutory body acting 
as the central bank, was established and replaced the Brunei Currency and Monetary Board.
5 The 
AMBD has four main objectives: to achieve and maintain domestic price stability; to ensure the 
stability of the financial system, in particular by formulating financial regulations and prudential 
standards ; to assist in the establishment and function ing of an efficient payment system; and  
foster and develop a sound and progressive financial services sector (section 4.4.2).6  
1.5.  The annual average inflation rate in Brunei was 0.7% over 2008-13 su pported by the pegged 
exchange rate between the Brunei dollar (B$) and the Singapore dollar at par.7 According to the 
IMF, the AMBD has been successful in managing such currency board arrangement  and the real 
exchange rate appears to be broadly in line with fundamentals.8 Inflation has also been subdued 
by price controls on basic commodities and selected  goods (section 3.3.2.3), as well as subsidies, 
inter alia , on petrol and electricity (sections 4.2.1 and 4.2.2). For 2014 and 2015, the IMF expects 
average inflation rates of 0.4% and 0.5%, respectively.9 
1.6.  Brunei's overall fiscal surplus, as percentage of GDP, fell from 40% in 2008 to 16.6% in 2013 
as oil and gas revenues declined (Table 1.1). Corporate taxes levied on oil and gas companies represent over 90% of total government revenues. Pr ices of housing, petroleum products, utilities, 
education, healthcare, and telecom services continue to be subsidized in Brunei. In addition, the 
State absorbs unpaid consumers' bills (section 3.3.1.2). During the next few years, Brunei aims to foster non-oil revenues, contain the size of the government and public sector wage bill, and reduce 
                                               
1 WTO (2008).  
2 Non-energy GDP is dominated by public and private enterprises depe ndent on government contracts. 
3 IMF Press Release No. 14/335, 9 July 2014. 
4 IMF, Public Information Notice No. 06/137, June. Viewed at: 
http://www.imf.org/external/np/sec/pn/2013/pn1371.htm .  
5 Autoriti Monetari Brunei Darussalam Order 2010. The AMBD amalgamated four divisions previously 
under the Ministry of Finance: Fina ncial Institutions Division, Brunei Currency and Monetary Board, Brunei 
International Financial Centre, and part of  the Research and International Division. 
6 AMBD online informat ion. Viewed at: www.ambd.gob.bn/i ndex.php/about-ambd/objectives.  
7 Inflation in Brunei generally moves in line with trend price developments in Singapore, but deviations 
in overall annual inflation performance may arise throug h supply disruptions, changes in administered prices, 
price developments in the non-traded goods sect or, and the composition an d pattern of imports. 
8 IMF Press Release No. 14/335, 9 July 2014. There are no capital controls, and no distinction is made 
between accounts held by Brunei nationals and non-nationals. 
9 IMF (2014).  WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  subsidies including through a progressive electricity tariff structure introduced in 2012 
(section 4.2.2). The IMF has pointed out that Brunei's long-term fiscal sustainability could be further strengthened by improving public financ ial management, including through the governance 
framework for oil-related funds (section 1.3).
10 
Table 1.1 Selected economic indicators, 2008-13 
 2008  2009  2010  2011 2012 2013a 
Miscellaneous       
GDP at current pr ices (B$ million) 20,398 15,611 16,867 20,996 21,185 20,158 
GDP at 2000 prices (B$ million) 11,754 11,546 11,847 12,253 12,369 12,152 
GDP per capita (B$) 54,394 41,072 43,607 53,371 52,989 49,625 
Real GDP (% change) -1.9 -1.8 2.6 3.4 0.9 -1.8 
Consumer prices (average; % change) 2.1 1.0 0.2 0.1 0.1 0.4 
Money and banking (% change)b       
Private sector credit 3.7 -3.0 -1.2 -5.0 1.8 5.9 
Narrow money 13.9 22.9 -29.2 10.9 1.4 4.0 
Broad money 9.6 9.7 4.8 10.1 0.9 1.5 
Public finances (% of GDP)c       
Total revenue 70.1 42.5 48.5 61.1 51.7 54.0 
Oil and gas 64.9 36.8 42.8 55.8 48.0 46.9 
Other 5.2 5.7 5.7 5.3 3.7 7.1 
Total expenditure 30.1 38.7 40.1 33.0 34.8 37.3 
Overall primary balance 40.0 3.8 8.4 28.1 16.8 16.6 
Non-energy overall primary deficit 19.1 28.4 29.4 22.3 26.0 25.1 
National accounts (% change)       
Personal consumption expenditure 1.8 4.7 2.1 3.7 5.2 2.8 
Government consumption expenditure -0.8 5.3 3.5 -3.7 2.0 1.1 
Gross capital formation 13.2 -0.3 -3.5 2.1 3.0 5.6 
Exports of goods and services -6.3 -5.3 11.5 16.6 -3.6 -8.2 
Imports of goods and services 11.0 -0.8 -0.3 11.4 -3.4 -1.5 
External sector       
B$/US$ (period average) 1.42 1.45 1.36 1.26 1.25 1.25 
Real effective exchange rate (2005=100) 100.5 102.2 102.4 101.6 100.6 .. 
Exports + Imports / GDP (%) 91.1 89.2 92.3 96.2 97.8 104.1 
Current account (% of GDP) 48.9 40.3 45.5 36.4 33.5 31.5 
Gross official reserves (US$ million) 751 1,357 1,563 2,487 3,285 .. 
In months of next year's imports 2.4 4.1 4.7 5.4 .. .. 
.. Not available.  
a Provisional.  
b Data for 2013 as of end-October.  c Central government. On a calendar year basis;  excludes interest an d investment income.  
Source: Department of Economic Planning and Development (2013), Brunei Darussalam Statistical  
Yearbook 2012 ; IMF Country Report No. 14/191, Brunei Darussalam: Statistical Appendix, 
July 2014; and data provided by the authorities.  
1.2  Trade Performance and Investment 
1.2.1  Trade in goods and services 
1.7.  Sizable hydrocarbon exports and the steady accumulation of long-term foreign assets over 
many years have provided Brunei with a comfortable balance of payments position (Table 1.2), 
which also reflects the big gap between savings an d investment. Nonetheless, the external current 
account surplus, as percentage of GDP, fell from 48.9% in 2008 to 31.5% in 2013 (Table 1.1) because of the important reduction in oil and gas export revenues and consequently in Brunei's trade balance during the period. For 2014 and 2015, the IMF expects a current account surplus of 
31.6% and 30.1% of GDP, respectively.
11 
                                               
10 IMF Press Release No. 14/335, 9 July 2014. 
11 IMF (2014).  WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  Table 1.2 Balance of payments, 2008-13 
(US$ million) 
 2008  2009  2010  2011 2012a 2013a 
Current account 6,941.20 3,834.40 4,998.40 6,439.40 5,673.50 3,773.50 
Goods 7,866.6 4,668.8 6,213.8 8,629.0 8,762.4 6,915.8 
Exports 10,431.1 7,056.6 8,779.3 12,374.3 12,880.3 11,819.8 
Imports 2,564.5 2,387.8 2,565.6 3,745.3 4,117.9 4,904.0 
Services -642.3 -691.6 -807.0 -1,316.9 -2,157.4 -2,365.1 
Receipts 448.4 386.6 460.5 500.7 482.6 492.9 
Payments 1,090.7 1,078.2 1,267.4 1,817.6 2,640.0 2,858.0 
Primary income (net) -8.3 126.0 -100.3 -497.9 -456.6 -200.3 
Financial accountb 2,530.6 1,905.1 4,894.7 3,881.6 2,887.2 2,713.4 
Direct investment in Brunei 323.1 370.1 480.7 691.1 864.8 775.3 
Portfolio investment assets 84.9 267.4 880.6 162.0 684.8 459.7 
Other investment assets 2,958.9 2,423.6 4,668.2 4,381.5 2,948.5 2,627.7 
Other investment liabilities 190.1 415.8 173.7 -29.3 -118.7 -401.6 
Current-Financial Accounts 
Balance 4,410.6 1,929.0 103.7 2,557.8 2,786.4 1,060.1 
Errors and omissions (net) -4,323.9 -1,355.3 -29.5 -1,755.5 -2,086.9 -885.1 
Reserve Assets 86.7 573.7 74.2 802.3 699.5 175.0 
a Preliminar.  
b Excludes reserve assets.  
Source: Data provided by the authorities.  
1.8.  Brunei's ratio of merchandise trade (exports and imports) to GDP reached 104.1% in 2013, 
up from 91.1% in 2008 (Table 1.1). In 2013, Brunei ranked 63rd among world merchandise 
exporters and 112th among importers (considering EU member States as one and excluding 
intra-EU trade). In services trade, Brunei ranked 94th as exporter and 93rd as importer.12 
1.9.  Brunei's merchandise exports amounted to US$11,432 million in 2013 (compared with 
US$10,543 million in 2008). Imports went up from US$2,574 million in 2008 to US$3,612 million in 2013 (Charts 1.1 and 1.2; and Tables A1.1 and A1.2). Mineral fuels, which includes petroleum 
and natural gas, represented 96.5% of total merchandise exports in 2013 (down from 97.8% in 
2008). The remaining exports are manufactures,  led by machinery and transport equipment 
(1.1% of total merchandise exports in 2013) and chemicals (0.8%) (Table A1.1).  
1.10.  Brunei's merchandise exports are mainly destined for the East Asian region. Japan remains 
Brunei's largest export partner, with a share of 39.8% in 2013 (43.2% in 2008), followed by the 
Republic of Korea (16.3%). ASEAN's share declined from 24.2% in 2008 to 23.2% in 2013, with a significant reduction in the participation of Indonesia from 20% to 4.7% in the period. Outside the 
East Asian region, the share of India increased fr om 3.2% to 7.6%, whereas the participation of 
China has fluctuated over the recent years. The sh are of the EU and the United States in Brunei's 
merchandise exports is negligible (Table A1.2).  
1.11.  Manufactures continue to dominate Brunei's imports; machinery and transport equipment 
remained Brunei's most important merchandise im port category, accounting for 36.6% of total 
imports in 2013 (compared with 43.8% in 2008), foll owed by other manufactured imports such as 
chemicals. The share of food imports in total merchandise imports increased from 12.3% in 2008 
to 13.3% in 2013, while that of mineral fuels also  increased from 2.6% to 7.5% during the same 
period (Table A1.1). 
1.12.  Brunei's merchandise imports also originate mainly in East Asia. Malaysia has become the 
largest source of imports, increasing its share from 18.7% in 2008 to 21.9% in 2013, while 
Singapore's participation went from 20.4% to 19.1% in the same period. Imports from ASEAN countries represented 50.9% in 2013 (47.9% in 2008). Overall, Asian countries have further 
increased their share of Brunei's imports during 2008-13 partly at the expense of 
the United States and the EU (Table A1.2). 
                                               
12 WTO Statistics database, "Trade Profiles: Brunei Darussalam". Viewed at: http://stat.wto.org/Country 
Profile/BN_e.htm.  WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  Chart 1.1 Product composition of merchandise trade, 2008 and 2013 
2008 2013
(a)    Exports (f.o.b.)
Total:   US$10.5 billion Total:  US$11.4 billion
(b)    Imports (c.i.f.)
Machinery &
transport equipment
43.8%Manufactured goods 
by material
22.0%
Chemicals
7.2%Chemicals
8.0%
Other
2.4%
Total:   US$2.6 billion Total:  US$3.6 billionManufactured goods
by material
20.4%
Other
1.7%Crude petroleum
44.7%Natural gas, liquefied
51.8%Other
2.2% Other
3.5%
Crude petroleum
53.2%
Live animals, food,
beverages & tobacco
14.5%Live animals, food, 
beverages & tobacco
14.4%Machinery & 
transport equipment
36.6%Liquefied natural gas
44.6%
Misc. manufactured 
articles
10.6%Misc. manufactured 
articles
8.3%Mineral fuels, 
lubricants & related 
material
7.5%Mineral fuels, 
lubricants & related 
material
2.6%
 
Source: WTO Secretariat calculations, based on figures taken from the Brunei Darussalam  Statistical 
Yearbook 2012 ; and data provided by the authorities.  WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  Chart 1.2 Direction of merchandise trade, 2008 and 2013 
2008 2013
(a)    Exports (f.o.b.)
ASEAN
24.2%
Total:   US$10. 5 billion Total:  US$11.4 billion
(b)    Imports (c.i.f.)
Other 
9.4%
EU27
10.4%Malaysia
18.7%
United States
13.7%
EU27
9.3%Singapore
19.1%United States
11.9%
Total:   US$2.6 billion Total:   US$3.6 billionJapan
43.2%
Malaysia
21.9%Korea, Rep. of
3.4%Korea, Rep. of
3.2%Australia
10.4%
Viet Nam
5.3%Indonesia
4.7%
Japan
5.8%China
6.9%Thailand
4.2%New Zealand
3.0%
Japan
8.5%
Other
7.4%Other  1.7%
Other ASEAN
4.2%India
3.2%
Indonesia
20.0%Other
1.2%
Japan
39.8%
Other 
ASEAN
0.7%New Zealand
4.1%
Thailand
5.2%Korea, Rep. of
14.8%
India
7.6%
Australia
7.3%
Other
ASEAN
0.9%
ASEAN
50.9%ASEAN
47.9%ASEAN
23.2%
Other ASEAN
4.6%
Thailand
5.0%
Singapore
20.4%Korea, Rep. of
16.3%
China
11.3%Singapore
4.4%
Indonesia
4.3%Indonesia
2.7%
 
Source: WTO Secretariat calculations, based on figures taken from the Brunei Darussalam  Statistical 
Yearbook 2012 ; and data provided by the authorities.  
1.13.  Balance of payments data indicate that Brunei is a net importer of services with a deficit 
that increased from US$642 million in 2008 to US$2,365 million in 2013 (Table 1.2). Net outflows 
have occurred in the form of payments for foreign travel, trade-related transport, and occasionally 
high professional fees in the oil and gas sector.  WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  1.2.2 Foreign direct investment 
1.14.  Brunei's FDI inflows averaged some US$600 million per year during 2008-13 (up from 
US$328 million over 2005-07). Over the review period about 90% of FDI flows have been 
allocated to the mining and quarrying sector (i.e. oil and gas industry), followed by manufacturing 
and services, particularly wholesale and retail trade (Table 1.3). Traditionally, FDI inflows have 
been dominated by investment from the EU, notably from the United Kingdom and the Netherlands. Hong-Kong, China is also an important investor in Brunei. 
1.15.  Success in attracting significant FDI infl ows has been hampered by increased competition 
from neighbouring economies. In addition, external sources indicate that while positive steps have been taken, there remains considerable scope for Brunei to improve its business climate.
13 
Moreover, Brunei's FDI policies could be more transparent, particularly with respect to limits on 
foreign equity participation, partnership requirements, and the identification of sectors in which 
FDI is restricted (section 2.4.1).14 
Table 1.3 FDI inflows by sector and country, 2008-13 
 2008  2009  2010  2011 2012 2013a 
Total inflows of FDI (B$ million) 457 538 655 869 1,081 970 
Total inflows of FDI (US$ million) 323 370 481 691 865 775 
Total inflows of FDI (% of GDP) 2.2 3.4 3.9 4.1 5.1 4.8 
(B$ million) 
Mining and quarrying 231 385 185 557 709 698 
Manufacturing 80 -28 63 97 97 142 
Construction 0 0 4 0 48 -52 
Wholesale and retail trade 0 1 13 1 51 48 
Financial activities 66 114 338 55 151 92 
Other  80 66 53 158 25 43 
(B$ million) 
ASEAN 1.3 4.5 122.1 84.9 39.3 -10.5 
Malaysia 0.7 3.4 61.2 42.4 6.5 4.3 
Singapore 0.6 0.6 59.5 41.9 32.8 -14.8 
EU 300.3 415.5 189.8 569.7 747.7 704.2 
Germany 0 0 3.0 0 -20.1 19.2 
Netherlands 66.2 134.5 30.8 0.9 265.7 143.1 
United Kingdom 231.2 277.6 152.0 565.8 498.7 539.0 
Other 2.9 3.5 4.1 3.0 3.4 2.9 
Hong-Kong, China 152.8 122.0 422.7 292.7 293.7 276.8 
Japan 36.8 -7.1 30.0 69.7 69.4 19.8 
United States 5.5 2.0 20.7 23.2 40.1 -6.7 
Other 84.2 88.3 274.5 182.7 75.4 147.3 
a Provisional.  
Source: Department of Economic Planning and Development (2013), Brunei Darussalam Statistical 
Yearbook  2012; and data provided by the authorities.  
1.3  Outlook 
1.16.  Brunei's economy remains highly dependent on oil and gas production, which accounts for 
about two-thirds of output15, and over 90% of merchandise exports and government revenues. 
This makes Brunei particularly vulnerable to an eventual depletion of resources over the next 
decades, and remains a cause for concern for the authorities due to fluctuating international 
energy prices. With the objective of ensuring inter- generational economic equity in the exploitation 
of its non-renewable natural wealth, Brunei has th e General Reserve Fund (GRF), a sovereign fund 
administered by the autonomous Brunei Investment  Agency (BIA) containing savings set aside for 
future generations.16 
                                               
13 Brunei ranks 59th (out of 183 economies) in the World Bank's Ease of Doing Business 2014 Index, 
from 79th in 2013. World Bank Group online information. Viewed at: 
www.doingbusiness.org/data/ exploreeconomies/brunei/ .  
14 USTR (2013b).  
15 This figure includes manufacture of liquefied natural gas (LNG). 
16 Information on the GRF is not available as the BIA presents its accounts only to the Sultan. Brunei 
has other funds: the Consolidated Fund , administered by the Ministry of Fi nance, comprising the Government's WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
- 16 - 
 
  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.
17 Over the medium term, acceleration in the 
non-energy sector due to infrastructure and downst ream projects is expected to support economic 
growth.18 Nonetheless, sustaining high growth rates on  an ongoing basis will require the successful 
implementation of Brunei's ambitious diversification strategy, and on enhancing private-sector 
participation in the economy.19 
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 (section 4.1.1); downstream oil and gas and energy-intensive industries (section 4.2.1); 
information and communication technology (ICT) (section 4.4.3); life sciences (pharmaceutical, 
cosmetics, and functional health food and health  supplements); light manufacturing (section 4.3); 
services such as financial services (section 4.4.2), logistics, and tourism (section 4.4.5); and 
activities that may be driven by technology development (section 2.2).
20 In addition, there is room 
to improve productivity throughout the economy and particularly in the government sector. Fuel subsidy reform over the medium term could provide fiscal space to maintain development 
expenditures and reduce distortions that could limit diversification efforts.
21 
 
                                                                                                                                               
tax and non-tax revenues (including transfers from th e GRF), and from which the Government's ordinary and 
charged expenditures are paid; the Development Fund, a llocated in accordance with the National Development 
Plan from which development expenditures are paid; an d the Government Trust Fund, another extra-budgetary 
fund, finances loans on favourable  terms to government employees. 
17 IMF (2014).  
18 IMF Press Release No. 14/335, 9 July 2014. 
19 Brunei's diversification strategy started in 2000,  when the Brunei Darussalam Economic Council 
(subsequently renamed the Depa rtment of Economic Planning and Develo pment) issued a report calling for the 
restructuring of the economy away fro m oil and gas. Since then, little progress has been achieved in the 
diversification of the economy and the participation of the private sector remains limited. 
20 Brunei Economic Development Board online information. Viewed at: 
http://www.bedb.com.bn/bisop_fdi.htm.  
21 IMF, Public Information Notice No.06/137, June. Viewed at: 
http://www.imf.org/external/np/sec/pn/2013/pn1371.htm .  WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  2  TRADE AND INVESTMENT REGIME 
2.1  General Institutional and Legal Framework 2.1.  There have been no changes to the institutional framework in Brunei Darussalam since its 
last Trade Policy Review in 2008. Under the Constitution, the Sultan is the head of State and 
serves as Prime Minister, Minister of Finance, an d Minister of Defence. The power to promulgate 
laws is also vested in the Sultan. He is assisted by the Council of Ministers
1 which handles 
executive matters and the Legislative Council in which policies under consultation or 
implementation are debated.2 Other councils advise the Sultan on constitutional, religious, and 
customs and tradition issues.  
2.2.  Brunei's legal system is based on the common law and the Sharia law.3 On 1 May 2014, a 
new Sharia Penal Code entered into force applicable to both Muslims and non-Muslims.4 
2.2  Trade Policy Formulation and Objectives 
2.3.  Formulating and implementing Brunei's trade policy lies with the Ministry of Foreign Affairs 
and Trade (MOFAT) in cooperation with other ministries and trade-related agencies. MOFAT is also 
responsible for: WTO issues, negotiating and im plementing Regional Trade Agreements (RTAs), 
and promoting trade and investment. MOFAT holds consultations with the private sector in the formulation of Brunei's trade policy on ad hoc  basis, including organizing briefings on RTA 
negotiations.  
2.4.  Brunei aims to achieve three key objectives: have more highly skilled people; an economy 
that is sustainable, dynamic and diversified; an d high quality of life for its population. These 
objectives are contained in Brunei's long-term development plans: the National Vision 2035 
(Wawasan  2035) launched in 2008, the First Outline of Strategies and Policy Directions 
(OSPD) 2007-17, and its 10
th National Development Plan 2012-17. 
2.5.  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 communications technology (ICT); life sciences (pharmaceutical, cosmetics, and func tional health food and health supplements); light 
manufacturing; services (financial services, logist ics, and tourism); and activities that may be 
driven by technology development.
5 Better assisting SMEs in increasing competitiveness and 
venturing in overseas markets would also help Brunei's efforts for economic diversification. 
2.6.  Since 2008, new trade-related legislation has been introduced in the areas of business 
environment, competition, financial services, fisheries, intellectual property, and TBT 
(Table A2.1).6 Additional legislation on standards (section 3.1.7) and competition (section 3.3.2.1) 
is being drafted.  
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 trad e in civil aircraft. Brunei fully supports the 
multilateral trading system and endorses the Bali Package, in particular the Agreement on Trade 
                                               
1 The Council of Ministers is appointe d and presided over by the Sultan. 
2 Oxford Business Group (2011).  
3 For further information, see Workshop Papers for the ASEAN Law Association 11th General Assembly, 
Bali 2012, "Framework of the Judicial Cooperation in  Case Management: the Experience of each ASEAN 
country". Viewed at: http://www.aseanlawassociation.org/workshop-eleventhGA.html .  
4 Two subsequent phases of the new Sharia Penal Code  are to be introduced but their timing is not yet 
determined. 
5 BEDB online information. Viewed at: http://www.bedb.com.bn/bisop_fdi.htm.  
6 Legislation in English may be viewed at: http://www.agc.gov.bn .  WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  Facilitation.7 It has never been involved in any trade dispute. During the review period, Brunei 
made regular notifications to the WTO (Table 2.1); however, by March 2014, it had 45 outstanding notifications, including on agriculture and import licensing.
8  
Table 2.1 Notifications, 2008-14 
Agreement Requirement Periodicity WTO documents 
Enabling Clause  
Paragraph 4(a) RTA Ad hoc WT/COMTD/N/35, 23.08.10 
WT/COMTD/N/33, 08.07.10 
GATT 1994 
Article XXIV:7(a) FTA Ad hoc WT/REG277/N/2, 27.07.11 
WT/REG287/N/1, 08.07.10 
WT/REG284/N/1, 09.04.10 
WT/REG277/N/1, 14.12.09 
WT/REG244/N/1, 04.08.08 
General Agreement on Trade in Services  
Article V:7(a) Economic integration 
agreements Ad hoc S/C/N/560, 08.07.10 
S/C/N/559, 08.07.10 
S/C/N/545, 09.04.10 
S/C/N/466, 04.08.08 
Agreement on Implementation of Article VI of the GATT 1994 (Anti-dumping) 
Article 16.5 Authorities and procedures As appropriate G/ADP/N/193/BRN, 20.07.10 
Agreement on Sanitary and Phytosanitary Measures 
Article 7, Annex B SPS regulations Ad hoc G/SPS/N/BRN/3/Rev.1, 29.11.12 
Agreement on Technical Barrier to Trade 
Annex 3C Acceptance of/withdrawal 
from a code of good 
practice Once G/TBT/CS/N/172, 07.02.08 
Source: WTO Secretariat.  
2.3.2  Regional Trade Agreements 
2.8.  Brunei is of the view that regional in tegration, based on open regionalism, is a 
complementary approach to multilateralism. It considers that its RTAs will help increase market access and investment inflows in support of its economic diversification efforts.
9  
2.9.  Brunei has eight RTAs encompassing 16 partners. Five RTAs entered into force during the 
review period: four are regional agreements negotiated in the context of ASEAN (with Australia and New Zealand; India; Japan; and the Republic  of Korea), and one was negotiated bilaterally 
with Japan (Table A2.2).
10 Brunei's RTAs have been notified to the WTO; the Brunei-Japan 
Economic Partnership Agreement and the Trans-Pacific Strategic Economic Partnership (TPSEP) have been reviewed by the Committee on Regional Trade Agreements. 
2.10.  In 2013, merchandise trade with RTA partners accounted for about 75% of Brunei's total 
imports and 99.6% of total exports. 
2.3.2.1  ASEAN 2.11.  During the review period, the ASEAN member States worked to achieve regional economic 
integration by 2015 when the ASEAN Economic Community (AEC) is to be established. AEC 
converts ASEAN into a single market and production  base, in which there is a free flow of goods, 
services, investment, capital, and skilled labour.  
2.12.  The ASEAN Trade in Goods Agreement (ATIGA) entered into force in 2010 to consolidate 
into a comprehensive document existing commitments on trade in goods. ATIGA supersedes the 1992 Common Effective Preferential Tariffs Agreement for the ASEAN Free-Trade Area 
                                               
7 WTO document WT/MIN(13)/ST/9, 4 December 2013. 
8 WTO Statistics database, "Trade Prof iles: Brunei Darussalam". Viewed at: 
http://stat.wto.org/Country Profile/BN_e.htm.  
9 MOFAT online information. View ed at: http://www.mofat.gov.bn/index.php/free-trade-agreements-
ftas/brunei-darussalam-s-fta-policy.  
10 See section 3.1.4.3 and Table 3.3 for a description of Brunei's preferential tariffs vis-à-vis MFN rates. WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
- 19 - 
 
  (CEPT-AFTA) and 11 economic integration agreements.11 However, the Protocol to Provide Special 
Consideration for Rice and Sugar, which allows ASEAN member States to temporarily waive their obligations, continues to apply.
12  
2.13.  Compared with CEPT-AFTA, ATIGA introduces a broader coverage for trade in goods. It 
incorporates enhanced measures for NTBs elimination and trade facilitation. In addition, ATIGA 
contributes to a more transparent and predictable tariff regime by consolidating tariff liberalization/reduction for each ASEAN member into a single schedule.
13 Intra-ASEAN trade was 
liberalized in 2010 among ASEAN-6. Cambodia, Lao PDR, Myanmar, and Viet Nam will complete 
tariff liberalization in 2015, with flexibility until 2018. Under ATIGA, Brunei has only one dutiable tariff line (Table 3.4). 
2.14.  During the review period, ASEAN member States continued to liberalize progressively trade 
in services under the ASEAN Framework Agreement on Services (AFAS) to cover all sectors and 
modes of supply. To date, 9 out of 10 packages of  commitments have been signed. Liberalization 
in financial and air transport services is carried out in separate packages.
14 For each new package 
of commitments, the number of subsectors to be liberalized increases and member States are 
committed to: (i) remove restrictions for cross-border supply and consumption abroad; and (ii) increase foreign (ASEAN) equity participation and remove other market access limitations for 
commercial presence.
15 
2.15.  To liberalize trade in services further, ASEAN member States have signed mutual 
recognition arrangements for greater mobility of qualified workers in accountancy, architectural, dental, engineering, medical, nursing, surveying,  and tourism services. In addition to the AFAS 
packages on air transport, three mutual agreements allow unlimited air passenger and cargo 
services within the region
16; these agreements have been ratified by Brunei.17 
2.16.  The ASEAN Comprehensive Investment Agreement (ACIA), a new legal framework for 
investment, entered into force in 2012 to replace the ASEAN Investment Area (AIA) and the 
ASEAN Investment Guarantee Agreement (IGA). ACIA  reaffirms relevant AIA/IGA provisions (i.e. 
obligation of national and MFN treatments); covers direct and portfolio investment; and benefits to 
ASEAN investors and ASEAN-based foreign invest ors. Under ACIA, protection is granted to 
investment made in all sectors and a more comprehensive investor-State dispute mechanism has been introduced. In addition, liberalization applies to manufacturing, agriculture and fisheries, forestry, mining and quarrying, and services re lated to these sectors. Reservations may be 
maintained on national treatment and nationality requirements for senior management but are 
required to be reduced or eliminated gradually.
18 The Protocol to amend the ASEAN 
Comprehensive Investment Agreement is still to be signed. 
2.17.  Integration into the world economy is a core element to establish the AEC. To this end, 
ASEAN has signed RTAs with six dialogue partners, referred to as ASEAN+1. During the review period, agreements entered into force with Aust ralia and New Zealand; India; Japan; and the 
Republic of Korea (Table A2.2). The ASEAN-Aust ralia-New Zealand agreement was negotiated as a 
single undertaking to cover trade in goods, se rvices, and investment. Trade in services and 
investment was subsequently negotiated with China (signed 2007/entry into force 2007)
19, the 
                                               
11 Protocol to Amend Certain ASEAN Economic  Agreements related to Trade in Goods. 
12 ATIGA, Article 24. 
13 ASEAN (2011).  
14 ASEAN online information. Viewed at: http://www.asean.org/communities/asean-economic-
community/category/services .  
15 ASEAN (2009).  
16 ASEAN Multilateral Agreement on Air Services (MAAS), ASEAN Multilateral Agreement on the Full 
Liberalisation of Passenger Air Services (MAFLPAS), and ASEAN Multilateral Agreement on the Full Liberalisation of Air Freight Services (MAFLAFS). 
17 Economic Research Institute for ASEAN and East Asia (2013).  
18 The reservation lists may be viewed at: http://investasean.asean.org/index.php/page/view/acia-
reservation-list . Since the ACIA came into force, Brunei has ma de some improvements to  the reservations and 
the changes were endorsed by the 16th ASEAN Investment Area Council Meet ing held in Brunei in August 2013. 
19 The agreement on trade in good s entered into force in 2005.  WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  Republic of Korea (2008/2009), and India (2014/not yet in force) (Table A2.2). Negotiations with 
Japan are still ongoing.20 
2.18.  ASEAN is also engaged in expanding the ASEAN+1 network. FTA negotiations are ongoing 
with the EU and Hong Kong, China. In addition, ASEAN seeks further economic integration with its 
six RTA partners in an effort to broaden and deepen current engagements. To this end, 
negotiations for a Regional Comprehensive Economic Partnership (RCEP), which cover trade in goods, services, and investment, began in 2012. The RCEP is built upon two initiatives for regional 
economic integration in which ASEAN member States and RTA partners are also engaged, the 
ASEAN+3
21 East Asia Free Trade Agreement (EAFTA) and the ASEAN+6 Comprehensive Economic 
Partnership for East Asia (CEPEA).22  
2.3.2.2  Trans-Pacific Strategic Econ omic Partnership (TPSEP) Agreement 
2.19.  Brunei, Chile, Singapore, and New Zealand signed the TPSEP Agreement in 2005. The 
agreement entered in Brunei into force fully in 2009 after it had finalized its schedules on services 
and government procurement.23 Brunei was given extra time to negotiate these schedules as this 
was the first time Brunei drafted a negative list on services and provided market access for 
government procurement. In the meantime, Brunei did not benefit from the other parties' commitments.
24 Brunei's schedule for procurement of good s and services applies to some entities 
listed in its schedule and contracts valued at or above B$250,000.25  
2.20.  The TPSEP Agreement provides for complete  trade liberalization among the parties, except 
for alcohol, tobacco, and firearms which Brunei excludes to safeguard public morals, human health, and security.
26 Discussions to accommodate liberalization of these products are being held 
in the context of the Trans-Pacific Partnership Agreement (TPP). Negotiations for trade in financial 
services and investment, which was not originally covered, initiated in 2008. 
2.21.  Building on the TPSEP Agreement, negotiations for the TPP began in 2010. To date, 
Australia, Brunei, Canada, Chile, Japan, Mala ysia, Mexico, New Zealand, Peru, Singapore, 
United States, and Viet Nam are engaged in the negotiations.27 
2.3.2.3  Bilateral agreements  
2.22.  The Economic Partnership Agreement between Brunei and Japan entered into force 
on 31 July 2008. Japan is among the main trading partners for Brunei in terms of exports (section 1.2). Under the agreement, Brunei's tariff liberalization excludes a small number of products such as prepared food, chemicals, and minerals
28; these products accounted for 0.1% of 
Brunei's total imports from Japan over the 2008-13 period. The Agreement incorporates specific 
provisions for the energy sector according to which measures affecting trade in oil and natural gas may be notified among the parties. However, contracts signed prior to the introduction of new 
measures, will have to be fulfilled.
29 Liberalization in trade in services excludes measures affecting 
air traffic rights30; government procurement; cabotage in maritime transport services; subsidies; 
                                               
20 For a "Quick Look" at ASEAN+1, see Invest in ASEAN online inform ation, "Enabling Environment: 
Establishing Free Trade Areas." Viewed at: http://investasean.asean.org .  
21 ASEAN + China, Japan, an d the Republic of Korea. 
22 Singapore Ministry of Trade and Industry, Press Release, November 2012. Viewed at: 
http://www.fta.gov.sg/press_release%5CFACTSHEET%20ON%20RCEP_final.pdf ; and Australia Department of 
Foreign Affairs and Trade online information. Viewed  at: http://www.dfat.gov.au/fta/rcep/downloads/rcep-
background-paper-background.pdf.  
23 MOFAT online information. View ed at: http://www.mofat.gov.bn/index.php/free-trade-agreements-
ftas/agreements-in-force/trans-pacific-strateg ic-economic-partnership- agreement-tpsep-p4.  
24 New Zealand Ministry of Foreign Affairs and Trade (2005).  
25 Brunei has been granted a special threshold upon the parties' decision to exclude Brunei's Mini Tender 
Board (MTB) from the committed entities. WTO do cument WT/REG229/1, 9 May 2008; and International 
Enterprise Singapore online  information. Viewed at: http://www.fta.gov.sg/fta_tpfta.asp?hl=12 .  
26 WTO document WT/REG229/1, 9 May 2008. 
27 OAS online information. Viewed at: http://www.sice.oas.org/TPD/TPP/TPP_e.ASP .  
28 WTO document WT/REG244/1, 6 July 2009. 
29 Chapter 7 of the Agreement. 
30 Other than measures affe cting aircraft repair and maintenance services, the selling and marketing of 
air transport services, and computer  reservation system services.  WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  and measures affecting job seekers or measures on nationality, residence or employment on a 
permanent basis (Table A2.2). 
2.23.  Brunei and Pakistan are exploring ways to enhance trade, investment and economic 
cooperation. 
2.3.2.4  Other arrangements 
2.24.  During the review period, Brunei received  GSP treatment from Belarus/Kazakhstan/Russian 
Federation; Canada; the European Union; Norway; and Turkey.31  
2.4  Investment regime 
2.4.1  Legal framework 2.25.  There is no specific framework to regulate domestic and foreign investment in Brunei. The 
main investment legislation is the Investment In centives Order 2001 which provides tax incentives 
to investors (section 2.4.1.1). No changes were made to this legislation during the review period. 
2.26.  The Ministry of Foreign Affairs and Trade (MOFAT) is responsible for maintaining a conducive 
investment climate to attract FDI. The Brunei Economic Development Board (BEDB), under the 
Prime Ministers' Office, is in charge of promoting Brunei as an attractive destination for FDI. BEDB 
markets Brunei in sectors of interest for economic diversification (section 2.2). To attract foreign investors, BEDB has identified 12 industrial sites for which it is in charge of infrastructure 
development, marketing, operation, and maintenanc e. During the review period, BEDB's efforts in 
securing industrial land with a complete infrastructure package attracted investors in large-scale downstream oil and gas and manufacturing projects.
32 The Brunei Industrial Development 
Authority (BINA), under the Ministry of Industry and Primary Resources, manages nine industrial 
estates in which small-and-medium size projects have established (section 4.3). The Autoriti 
Monetari Brunei Darussalam (AMBD) is in charge of,  inter alia , attracting financial institutions to 
convert Brunei into a new centre for international financial services (section 4.4.2). 
2.27.  Brunei prohibits domestic and foreign investment in the manufacture of liquor and 
armaments. Full foreign participation may be allowed in most activities, except in those that use natural resources, relate to national food security, and are located in industrial sites for which 30% 
minimum local equity participation is required. In addition, domestic and foreign investment in 
sectors for which the State is the major service provider (e.g. telecom, energy) is subject to 
approval by the relevant regulatory authority. Market 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.
33  
2.28.  No minimum level of investment is required to invest in Brunei. There are no restrictions on 
repatriation of capital, remittance of profits or royalties abroad, and exchange control. However, 
pursuant to measures against money laundering introduced in 2011, cross-border movements of 
cash exceeding B$15,000 must be reported to Customs on arrival and the Immigration and National Registration Department on departure. Financial institutions must declare suspicious 
transactions to the Financial Intelligence Unit under the AMBD.
34 There is no record of 
expropriation in Brunei.35  
                                               
31 WTO PTA Database. Viewed at: http://ptadb.wto.org/ ; and UNCTAD (2011).  
32 PowerPoint Presentation by BEDB, "Business Opportunities in Brunei Darussalam", December 2013. 
Viewed at: http://www.bedb.com.bn/presentation/BEDB_Presentation(Dec13).pdf; and BEDB online information. Viewed at: http://www.bedb.com.bn/keyindustrialsites.html .  
33 WTO document WT/TPR/M/196/Add.1, 10 April 2008; ASEAN (2010a); U.S. Department of State 
online information. Viewed at: http://www.state.gov/e/eb/rls/othr/ics/2013/204609.htm ; APEC (2009a); and 
APEC document 2009/SOM1/006anx3, "Written questions received during the review session". Viewed at: 
http://www.apec.org/About-Us/How-APEC-Op erates/Action-Plans/IAP-Peer-Review.aspx .  
34 Criminal Asset Recovery Order 2012 (S 47/12), Part III; and HSBC (2013), Treasury Management 
Profile: Brunei . Viewed at: https://globalconnections.hsbc.com/downloads/treasury_management_profile-
bn.pdf . 
35 ASEAN (2010a); U.S. Department of State online information. Viewed at: 
http://www.state.gov/e/eb/rls/othr/ics/2012/191116.htm .  WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  2.29.  Previously, permanent residents and foreigners were able to purchase land and property 
through power of attorney or trust deeds. However, in 2012, the Government announced it intended to revoke such procedure and convert land and property purchases into 60-year leases. The authorities are still drafting the relevant amendment to the Land Code (Chapter 40).
36  
2.30.  Foreigners may own strata titles in commercial and residential multi-storey buildings, on 
leasehold for up to 99 years (up from 60 years effective since 2010).37 In addition, long-term 
agreements may be signed for lease of industrial land (30 years) and commercial property 
(60 years); leases exceeding seven years must be registered and approved by the Sultan. 
Temporary occupation licences (TOL) are issued for temporary use of state-owned land. Since 2011, new TOL for land are only issued for, inter alia , commercial and educational use (schools).
38 
2.31.  In 2010, new legislation for domestic and international arbitration entered into force 
(Table A2.1) based on model laws from the United Nations Commission on International Trade Law 
(UNCITRAL). The new international arbitration legislation allows courts in Brunei to support but not interfere in arbitration proceedings. The Atto rney General's Chambers and the Arbitration 
Association of Brunei Darussalam are working to enhance infrastructure and capacity building for 
arbitration in Brunei.
39 
2.32.  Brunei has 8 bilateral investment treaties (BITs)40, 16 double taxation agreements (DTAs)41, 
and 10 tax information exchange agreement (TIEA).42 Brunei is also a signatory to the ASEAN 
Comprehensive Investment Agreement (ACIA) (section 2.3.2.1), and a contracting party to the International Centre for Settlement of  Investment Disputes (ICSID).  
2.4.1.1  Incentives 
2.33.  During the review period, no substantial changes were introduced to the incentives granted 
to domestic and foreign investors under the Investment Incentives Order 2001 (S 48/01).
43 
Investors may apply for an incentive certificate to the Ministry of Industry and Primary Resources 
(MIPR).44 Incentives are aimed at encouraging enterprises to manufacture pioneer products or 
provide pioneer services, engage in export activities, and invest in new productive equipment to increase production or profitability (Table 2.2). Pioneer status in manufacturing is granted to 
activities that are innovative and have significant development prospects to contribute to economic 
diversification, exports, and job creation.
45 Brunei has declared 28 manufacturing activities eligible 
for pioneer status.46 In 2013, two manufacturing companies were granted pioneer status in 
production of animal feeds, and canning/bottling/packaging. 
                                               
36 Revised Edition 1984, as amended by S 29/09; Brunei Times , 18 March 2012. Viewed at: 
http://www.bt.com.bn/legco/2012/03/18/new-pa-rule-may-hit-investment ; and Brunei Times , 21 March 2013. 
Viewed at: http://www.bt.com.bn/2013/03/21/impact-trust-deed-abolition-tackled .  
37 Land Code (Strata) Act (Chapter 189), Revised Edition 2000, as amended by S 28/09.  
38 The other uses are no longer issued but the existi ng ones are still renewable as long as there are 
developments on them. Licenses are not regist ered. They are issued annually (renewable). 
Jones Lang LaSalle (2013); and PowerPoint Presentation for the 17th ASEAN Valuers Association Pre-Congress, 
20-22 July 2011. Viewed at: http://www.aseanvaluers.org/index.php?opti on=com_content&view=art icle&id=55&Itemid=87 .  
39 Rahman, A.J. (2013).  
40 Bahrain, Kingdom of; China; Germany; India; Republic of Korea; State of Kuwait; Oman; and 
Ukraine. 
41 Bahrain, Kingdom of; China; Hong Kong, China;  Indonesia; Japan; Kuwait; Lao (PDR); Malaysia; 
Oman; Pakistan; Qatar; Singapore; Ta jikistan; Viet Nam; United Arab Emirates; and United Kingdom. MOF 
online information. Viewed at: http://www.mof.gov.bn/index.php/tax-treaties. 
42 Australia; Canada; Denmark; Fa roes; Finland; France; Greenland;  Iceland; Norway; and Sweden. 
MOF online information. Viewed at: http://www.mof.gov.bn/index.php/tax-treaties ; and OECD Exchange of Tax 
Information Portal. Viewed at: http://eoi-tax.org/jurisdictions/BN#agreements. 
43 As amended by S 15/10 and S 5/11. 
44 Application is processed online through OneBiz (section 2.4.2). 
45 Section 4 of the Investment Incentives Order 2001, as amended by S 15/10 and S 5/11.  
46 List of pioneer industries  and products viewed at: http://www.industry.gov.bn/ .  WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  Table 2.2 Investment incentives 
 Incentive Tax relief period (not exceeding) 
Pioneer industries  Exemption from income tax 
Carry forward of losses and allowances Exemption from customs and import duties 5-8 years (11 years), depending on the 
amount of fixed capital expenditure 11 years (20 years)  for industries 
established in high tech park 
Pioneer service 
companies  Exemption from income tax 
Carry forward of losses and allowances 
Exemption from customs and import 
duties 8 years (11 years)  
5 years (10 years) for financial services 
Post-pioneer companies Exemption from income tax 
Deduction of losses  Adjustment of capital allowances and losses  6 years (11 years)  
Expansion of established 
enterprises  Exemption from income tax 3-5 years (15 years), depending on the 
amount of new capital expenditure 
Expanding service 
companies Exemption from income tax 11 years (20 years) 
Production for export  Exemption from income tax 6 years (11 years) for pioneer 
enterprises, depending on sales volume 
8 years for the rema ining enterprises, 
depending on sales volume 
15 years, depending on the amount of 
fixed capital expenditure 
Export of services  Exemption from income tax 
Deduction of allowances and losses  11 years (20 years)  
International trade 
incentives  Exemption from income tax 8 years  
Foreign loans for 
productive equipment  Exemption from withholding tax on interests paid to non-resident lenders  Depends on the financial agreement 
with the foreign lender 
Investment allowances  Exemption from income tax 5 years 
11 years for tourism 
Warehousing and servicing incentives
 Exemption from income tax 11 years (20 years) 
Investment in new 
technology companies  Deduction of losses   
Overseas investment and venture capital incentives
 Deduction of losses   
Source: Investment Incentives Order 2001, as amended by S 15/10 and S 5/11. 
2.34.  Incentives are mainly in the form of income tax exemption for specific periods of time that 
may be extended further (Table 2.2). Tax relief pe riod for pioneer industries is determined by the 
amount of expenses in fixed capital (minimum B$500,000) or the location. Providers of pioneer 
services are granted an eight-year tax relief period except for those providing financial services for which a five-year tax relief period was introduced in 2010. 
2.35.  Enterprises manufacturing pioneer products or  export products are also exempt from import 
duties on capital goods and raw materials only if these are not on sale in Brunei.
47 
2.4.2  Starting a business 
2.36.  Business entities are registered in Brunei under the Companies Act (Chapter 39)48 or the 
Business Names Act (Chapter 92).49 The Companies Act sets guidelines for the incorporation of 
companies and the registration of foreign branches  of companies. All businesses must register at 
the Registry of Companies and Business Names Division under the Ministry of Finance.50 The cost 
of name search is B$5 per name. The registration fees for companies are based on a flat fee of 
B$300. The registration fee for sole proprietorship or partnerships is B$30. Foreigners are not 
                                               
47 Part XV of the Investment Incentives Order 2001, as amended by S 15/10 and S 5/11. 
48 Revised Edition 1984, as amended by S 26/98, S 23/99, S 69/01, S 10/03, S 118/10, S 31/12, 
Section 130 of Banking Order 2006 (S 45/06); and Section 130 of Islamic Banking Order 2008 (S 96/08). 
49 Business Name Act (Chapter 92), Revised Edition 1984, as amended by S 30/88 and S 32/12. 
50 The Registrar moved from the Attorn ey General's Chambers to the Mini stry of Finance in 2012. After 
selecting the type of business, one can search for th eir desired business name on  www.e-registry.agc.gov.bn 
to check for availability. WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  allowed to establish as sole proprietors. In 2014, there were 9,822 companies incorporated in 
Brunei and 822 branches of foreign companies. 
2.37.  Regulated activities (e.g. financial services, telecom) are also required to be licensed by or 
registered with the regulatory authority prior to operations with a view to protect consumers' 
interest. In addition, shops are subject to licensing under the Miscellaneous Licences Act 
(Chapter 127) (Table 2.3). Miscellaneous licences  may be applied (and paid) online through the 
Business Licensing System (OneBiz)51; licences are collected at the Business Facilitation Center 
(BFC).52 OneBiz was launched in 2013 by the Minist ry of Industry and Primary Resources to 
streamline procedures in starting and operating a business.53 To date, OneBiz is partly operational; 
there is no timing for its full implementation. According to the authorities, about 4,000 miscellaneous licences were processed online in 2013. 
Table 2.3 Miscellaneous licences, 2014 
Activity  Regulatory authority 
Beauty and health establishmenta  Municipal Board or District Licensing Board 
Coffee shops, restaurants, boarding house, lodging 
house, and places for public  resort and entertainment Municipal Board or District Licensing Board  
Hawkers District Licensing Board 
Motor vehicle dealer  Ministry of Industry and Primary Resources  
Petrol station, including st orage places for petrol and 
inflammable materials Ministry of Industry and Primary Resources 
Retail shop Municipal Board or District Licensing Board 
Timber store and furniture factories  Muni cipal Board or District Licensing Board 
Workshop Municipal Board or District Licensing Board 
a Included in 2011. 
Source: Miscellaneous Licences Act (Chapter 127), as amended by S 43/08, S 85/08, and S 69/11. 
2.38.  Companies may be incorporated in Brunei as public or private companies with limited or 
unlimited liabilities54; 90% of the companies were incorporated as private limited companies 
in 2014.55 Private companies must, inter alia , have at least two but not more than 50 shareholders 
and at least two directors.56 Shareholders may be of any nation ality; however, participation of 
national shareholders may be required in compan ies subject to licensing. In 2010, the nationality 
restriction of having at least half the board of directors to be Brunei nationals was removed57; 
private companies must now have one of the two directors or at least two where there are more than two directors, to be ordinarily resident.
58 There is no minimum paid-up capital requirement 
for the incorporation of companies (or registration of foreign branches) except for financial 
institutions as criteria for licensing (section 4.4.2). 
                                               
51 OneBiz online information. Viewed at: http://www.business.gov.bn/ . 
52 There is one BFC per district. BFCs provide also fa cilities for applicants with no internet access. 
53 Registration of companies and businesses (Ministry of Finance), building and occupancy permit (Town 
and Country Planning), water supply (Department of Water Services), electricity supply (Department of Electrical Services), miscellaneous licence (Ministry of Home Affairs), labour licence (Labour Department), investment incentives (MIPR), foreign worker pass (Department of Immigration and National Registration), land transport vehicle registration (Land Transport Department), commercial vessels registration (Marine Department), Brunei halal certification and halal import permit (Ministry of Religious Affairs), import/export permit (foods and drugs) (Ministry of Health), and certificate of origin (MOFAT). MIPR online information. Viewed at: http://industry.gov.bn/index.php?option=com_content&view=article&id=101%3Aease-of-doing-
business-2011&Itemid=53 . 
54 Liabilities may be limited by shares, guarantees or both shares and guarantees. 
55 OECD (2011). 
56 Sections 29-31 and 138 of the Companies Act (Chapter 39), Revised Edition 1984, as amended by 
S 26/98, S 23/99, S 69/01, S 10/03, S 118/10, S 31/12, Section 130 of Banking Order 2006 (S 45/06), and Section 130 of Islamic Banking Order 2008 (S 96/08). 
57 Section 138 of the Companies Act (Chapter 39), Revised Edition 1984, as amended by Section 14 
of S 118/10. 
58 Minimum stay for residence status is 183 days (Section 2 of Income Tax Act (Chapter 35), Revised 
Edition 2013). WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  2.39.  A branch of a foreign company must have  a registered office in Brunei and, effective 
from 2010, at least two local authorized agents. It has the same powers and authority as a local company.
59  
2.40.  Foreigners may also participate in partnerships which are exempt from income tax.60 Brunei 
allows limited liability partnerships to be established but the Limited Liability Partnership Order 
2010 has yet to enter into force. 
2.41.  International business companies (IBCs) and international limited partnerships (ILPs) 
generally conduct business outside Brunei, but they may also conduct business in Brunei. They are 
governed by the International Business Companies Order (IBCO) 2000 and International Limited Partnerships Order 2000, respectively. IBCs an d ILPs may incorporate in Brunei only through 
agents licensed by the AMBD under the Registered Agents and Trustees Licensing Order 2000. 
2.42.  To date, there are 11 licensed agents. Registration with AMBD is also compulsory for IBCs 
and ILPs.
61 There were some 11,000 companies incorporated as IBCs in 2013. IBCO 2000 provides 
tax-free corporate facilities for both IBCs and foreign international companies (FICs). Companies 
incorporated under the IBCO wishing to provide international financial services must be licensed 
under the relevant international banking and insurance orders (section 4.4.2). 
2.43.  Expat employment is controlled by the La bour Department through a labour quota system 
and the Department of Immigration and National Re gistration through the issuance of employment 
visas and/or work permits (employment passes). Employers must be licensed by the Labour Department prior to recruiting foreign workers. They must also obtain a bank guarantee to cover repatriation and insurance costs for each foreign worker they intend to hire. Employment visas 
may be granted by Brunei's diplomatic missions ov erseas and are required prior to the entry into 
Brunei. Work permits may be subject to laws, regulati ons, and policies enforced  from time to time.  
 
                                               
59 Part IX of Companies Act (Chapter 39), Revised Edition 1984, as amended by S 118/10. 
60 Section 311 of the Companies Act (Chapter 39), Revised Edition 1984, as amended by S 26/98, 
S 23/99, S 69/01, S 10/03, S 118/10, S 31/12, Section 130 of Banking Order 2006 (S 45/06), and Section 130 of Islamic Banking Order 2008 (S 96/08); and BEDB online information. Viewed at: 
http://www.bedb.com.bn/doing_guides_types.html .  
61 AMBD online information. Viewed at: http://www.ambd.gob.bn /corporate-services-
development/development. WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  3  TRADE POLICIES AND PRACTICES BY MEASURE 
3.1  Measures Directly Affecting Imports 3.1.1  Customs procedures and requirements 3.1.  Since its last Review in 2008, Brunei has taken steps to further facilitate customs procedures 
particularly at the regional level. Under the ASEAN Trade in Goods Agreement (ATIGA) 
(section 2.3.2.1), an ASEAN Single Window (ASW ) to process trade documents electronically will 
integrate the national single windows of ASEAN member States.
1 Brunei Darussalam National 
Single Window (BDNSW) began to operate, in phases, in January 2014. BDNSW will allow 
applications for several trade procedures, such as certificates of origin and import permits. In addition, a new ASEAN Agreement on Customs was signed in 2012 (replacing the 1997 ASEAN Agreement on Customs) to streamline customs procedures. For Brunei, the agreement entered 
into force on 1 April 2013. Also, progress has been  achieved in establishing the ASEAN Customs 
Transit System.
2  
3.2.  Brunei's e-Customs system has been fully operational since 2008 and allows traders to 
submit applications electronically.3 Merchandise imports into (and exports from) Brunei continue to 
be governed under the Customs Order (2006) administered by the Royal Customs and Excise Department (RCED) under the Ministry of Finance.  
3.3.  All imports into Brunei shall be declared through electronic submission via the e-Customs 
system. Bill of lading or airway bill and comme rcial invoice, and any supporting documents must 
be presented during customs clearance. If applicab le, preferential tariff treatment under a regional 
trade agreement (RTA) may be given when the certificate of origin is endorsed by a trade officer at 
the Certificate of Origin Office of the Mini stry of Foreign Affairs and Trade (MOFAT). 
3.4.  Estimates for 2014 indicate that import procedures take 15 days and cost US$770 per 
container.
4 According to a Time Release Study by RC ED, the average time from submission of 
customs declaration to customs clearance was 10 hours and 18 minutes in 2012.  
3.5.  The RCED classifies risk ba sed on an internal process which includes analyzing past record of 
companies, importation of controlled and dutiable items, and high value items.  
3.6.  There are no customs fees for import proced ures or registration; goods in transit via Brunei 
are subject to fees ranging from B$10 to B$100 depending on their type or nature. 
3.7.  Importers must register with the RCED and appoint registered forwarding agents to log into 
the e-Customs system, and submit all required documentation for import/export. Import permits 
are required for some products, including plants, animals, birds, fish, salt, sugar, rice, drugs, 
gambling machines, and used motor vehicle. These are available from the relevant government ministries and departments. In some cases, including for plants, animals and animal products, 
birds, and fish, import licences must be accompanied by SPS certificates from the exporting 
country. All other goods, unless prohibited, may be imported under open general licences.  
3.8.  Customs decisions may be appealed under section 153 of the Customs Order 2006. Authority 
for all customs decisions lies with the Controller of Customs; unless it is specifically stated that 
such decisions may only be made at the absolute discretion of the Controller, appeals may be made to the Minister of Finance, whose decision is final. 
3.9.  Brunei has no laws pertaining to pre-shipment inspection for customs valuation and 
classification, and no company has ever provided  pre-shipment inspection services in Brunei. 
                                               
1 The ASEAN Single Window is still at the pilot testing stage. 
2 The ASEAN Customs Transit System has nine protocols, two of which are under customs 
administration: Protocol 2 (ASEAN Designation of Fron tier Posts) and Protocol 7 (ASEAN Customs Transit 
System). Protocol 7 was signed ad referendum  in April 2013. 
3 RCED online information. Viewed at: http://www.mof.gov.bn/index.php/brunei-e-customs .  
4 World Bank/IFC (2014). WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  3.10.  Brunei is a member of the World Customs Organization since 1996, and became party to 
the Harmonized System Convention on 1 June 2014. Brunei is currently doing gap analysis on the International Convention on the Simplification and Harmonization of Customs Procedures (Revised Kyoto Convention). 
3.11.  Brunei has already made its notification of Category A commitments under the Agreement 
on Trade Facilitation.
5  
3.1.2  Customs valuation 
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 2001.6 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
7). If the transaction value method may not be 
used, five methods apply in sequential order: (i) transaction value of identical goods; 
(ii) transaction value of similar goods; (iii) deductive value; (iv) computed value; and (v) residual valuation (flexible and reasonable method).
8 At the request of the importer, computer and residual 
methods may be applied reversely.9 According to the authorities, most goods were assessed under 
the transaction value in 2013.  
3.13.  Customs value must be determined within 30 days 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.
10 
3.1.3  Rules of origin 
3.14.  Brunei has notified the WTO that it does not have non-preferential rules of origin.11 
3.15.  Brunei applies preferential rules of origin under its eight RTAs in force (section 2.3.2), i.e. 
Association of Southeast Asian Nations (ASEAN-ATIGA)12; ASEAN-Australia-New Zealand; ASEAN-
China; ASEAN-India; ASEAN-Japan; ASEAN-Korea; Trans-Pacific Strategic Economic Partnership13; 
and Brunei-Japan.14 In general, the basic rule is a product wholly obtained or that has undergone 
substantial transformation in the country of export. Substantial transformation is defined as a 
change in tariff classification, value-added threshold, and specific process, which vary across 
agreements. The revision of the ASEAN rules of origin has introduced, so far, other origin criteria as an alternative to the long-standing regional value content of at least 40%.
15  
3.16.  Co-equal and dual rules of origin are used  across ASEAN agreements to determine if goods 
not wholly obtained or produced in the exporting party  qualify for tariff preferences (Table 3.1). 
When co-equal rule applies, tolerance in change in tariff classification (CTC) may allow final products to contain a percentage of non-originating inputs that have not undergone a change in 
tariff classification. In addition, cumulation of regional value content is permitted under ASEAN 
                                               
5 WTO document WT/PCTF/N/1/BRN/1, 8 August 2014.  
6 See WTO document G/VAL/N/1/BRN/1, 26 October 2001. 
7 Customs (Valuation of Imported Goods) Rules 2001, Rule 12. 
8 Customs (Valuation of Imported Goods) Ru les 2001; and WTO document G/VAL/N/1/BRN/1, 
26 October 2001. 
9 WTO document G/VAL/N/2/BRN/1, 27 June 2002. 
10 WTO documents G/VAL/N/1/BRN/1, 26 Octobe r 2001 and G/VAL/N/2/BRN/1, 27 June 2002; and 
Customs (Valuation of Im ported Goods) Rules 2001. 
11 WTO document G/RO/N/5, 1 November 1995. 
12 ATIGA replaced the Common Effective Preferential  Tariffs Agreement for the ASEAN Free Trade Area 
(CEPT-FTA) in 2010. Viewed at: http://www.asean.org/communities/asean-economic-community/item/rules-
of-origin-for-the-ce pt-scheme-for-afta .  
13 For rules of origin under the ASEAN-China Free Trade Agreement and the Trans-Pacific Strategic 
Economic Partnership Agreement, which entered into force prior to 2008, see: http://www.mofat.gov.bn/inde x.php/trade-department.  
14 Under Brunei's bilateral agreement with Japan, goods qualify for tariff preferences if they are: 
(i) wholly obtained in the exporting Party; or (ii) pr oduced entirely in the Party exclusively from originating 
materials from the Party; or (iii) produced entirely in the Party using non-originating materials which satisfy 
product-specific rules. 
15 ASEAN (2011). WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  agreements. ATIGA allows also inputs that have at least 20% but less than 40% regional value 
content to qualify for partial cumulation; these inputs are, however, not eligible for tariff preferences.
16 Product-specific rules have also been established with the exception of the 
agreement ASEAN-India for which they are being negotiated. Brunei has appointed certified 
exporters to participate in the test for the ASEA N Self-Certification System which is aimed at 
replacing ATIGA certificate of origin in paper form; the System is being tested until 31 December 2015.
17 
Table 3.1 Overview of origin determin ation across ASEAN agreements post-2008 
ATIGA ASEAN-Australia-
New Zealand FTA ASEAN-India  
FTA ASEAN-Japan  
CEP ASEAN-Korea 
FTA 
Goods not wholly obtained or produced in the exporting Party 
Co-equal  
CTC or 40% RVC Co-equal 
CTC or 40% RVC Dual  
CTC plus 35% RVC Co-equal  
CTC or 40% RVC Co-equal  
CTC or 40% RVC 
De minimis  
10% of the f.o.b. 
value 10% of f.o.b. value 
 
10% of f.o.b. value 
or total weight 
(HS 50-63)  10% of the f.o.b. 
value (HS 16, 19, 
20, 22, 23, 28-49, 
64-97) 
 
7%-10% 
(HS 18 and 21) 
 
10% of total weight 
(HS 50-63) 10% of f.o.b. value 
 
10% of total weight 
(HS 50-63) 
Note: CTC: change in tariff classification. RVC: minimu m regional value content. CTC requires a change in 
tariff headings except for ASEAN-India wher e change in tariff subheadings applies.  
Source: WTO Secretariat on the basis of in formation provided by  the authorities.  
3.1.4  Tariffs and excise duties 
3.1.4.1  MFN applied tariff 
3.17.  Brunei applies relatively very low tariffs. Goods imported into Brunei may be subject to 
import and excise duties. There is no VAT. 
3.18.  With the adoption of the 2012 ASEAN Harmonized Tariff Nomenclature (the AHTN 
Protocol)18, Brunei's tariff was simplified and now comprises 9,916 lines at the national tariff line 
HS ten-digit level, compared with 10,689 in 2007 (Table 3.2). Specific tariff lines have been 
reduced from 131 in 2007 to 55 in 2014 which enhances transparency.19 
Table 3.2 Tariff structure, 2007 and 2014 
(%, unless otherwise indicated) 
 MFN applied rate Final bounda 2007 2014 
Bound tariff lines (% of all tariff lines) 92.8 89.1 89.1 
Simple average rate 4.8 1.7 25.4 
Agricultural products (HS01-24) 0.0 0.0 23.2 
Industrial products (HS25-97) 5.4 2.1 25.9 
WTO agricultural products 0.0 0.0 23.1 
WTO non-agricultural products 5.4 2.0 25.8 
Duty free tariff lines (% of all tariff lines) 68.1 76.9 0.0 
Simple average rate of dutiable lines only 15.5 7.6 25.4 
Tariff quotas (% of all tariff lines) 0.0 0.0 0.0 
                                               
16 ATIGA, Article 30 and Annex 6. 
17 ASEAN (2013a). 
18 The transposition was from HS2002/AHTN2004 to HS 2007/AHTN2007. The AHTN follows the six-digit 
commodity classification codes of the World Customs Orga nization's Harmonized System (HS) adding two more 
digits to the codes for subheadings used across ASEAN. It applies to intra and extra-ASEAN trade. 
19 The 55 specific rates apply to (num ber of lines in parentheses): coffe e (8); tea (8); food preparations 
used for the manufacture of alcoholic beverages (7); petroleum oils, other than crude (16); odoriferous 
alcoholic preparations used in the manufacture of al coholic beverages (2); and lu bricating preparations and 
preparations used for the oil or grease treatm ent of textile materials,  leather, etc. (14). WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
- 29 - 
 
   MFN applied rate Final bounda 2007 2014 
Non-ad valorem  tariffs (% of all tariff lines) 1.2 0.6 0.4 
Domestic tariff "peaks" (% of all tariff lines)b 21.4 4.9 0.0 
International tariff "peaks" (% of all tariff lines)c 20.4 3.2 88.7 
Overall standard deviation of tariff rates 8.1 4.1 8.3 
Coefficient of variation of tariff rates 1.7 2.4 0.3 
Nuisance applied rates (% of all tariff lines)d 0.0 0.0 0.0 
Total number of tariff lines 10,689 9,916 8,835 
Ad valorem  3,283 2,235 8,792 
Duty free 7,275 7,626 0 
Specific 131 55 43 
a Final bound rates are based on the 2014 tariff schedule in HS12 nomenclature.  
b Domestic tariff peaks are defined as those exceed ing three times the overall average applied rate.  
c International tariff peaks are defined as those exceeding 15%. d Nuisance rates are those greater than zero, but less than or equal to 2%.  
Note: The 2007 tariff is based on HS02 nomenclature, while the 2014 tariff is based on HS12. Calculations 
for the averages are based on the national tariff li ne level (10-digit). The MFN applied rates for 2014 
include 40 AVEs (out of 55 specific lines) provided by the authorities. 
Source: WTO Secretariat calculations, based on data provided by the authorities. 
3.19.  Brunei does not maintain any tariff quotas, and there are no seasonal tariffs. Overall, 94.6% 
of tariff lines are within the range >0-5%. The sh are of duty-free imports increased from 68.1% in 
2007 to 76.9% in 2014 (Chart 3.1).  
Chart 3.1 Distribution of MFN applied tariff rates, 2007 and 2014 
(68.1) 
(8.2) 
(1.2) (0.9)(20.4) 
(0.1)   (1.2) (76.9)
(17.6)
(1.1) (0.5)(3.2)
(0.0) (0.6)
01,0002,0003,0004,0005,0006,0007,0008,0009,000
Duty free 5% 10% 15% 20% 30% Specific ratesNumber of tariff lines
Tariff rates (%)MFN 2007
MFN 2014
 
Note: Figures in parentheses denote the share of total lines.  
Source: WTO Secretariat calculations, based on data provided by the authorities.  
3.20.  The simple average applied MFN rate is 1.7% (down from 4.8% in 2007). The reduction is 
mainly due to changes in tariff nomenclature. Tariffs are zero on agriculture (WTO definition20), 
and 2% on non-agricultural products (5.4% in 2007). Tariff rates range from zero to 30%, with 
chemicals and products thereof subject to the highes t tariff protection (Table 3.3). By HS section, 
the highest tariff rates are on footwear and headgear, followed by machinery, and wood and products thereof (Chart 3.2).  
                                               
20 WTO definition of agriculture: HS Chapters 01-24 less fish and fishery products (HS 0301-0307, 0509, 
051191, 1504, 1603-1605 and 230120) plus some selected products (HS 290543, 290544, 290545, 3301, 
3501-3505, 380910, 382311-382319, 382360, 382370, 382460, 4101-4103, 4301, 5001-5003, 5105-5103, 5201-5203, 5301 and 5302).  WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  3.21.  Brunei does not participate in the Information Technology Agreement (ITA). 
Table 3.3 Applied MFN tariff summary, 2014 
 Number 
of lines Average 
(%) Range 
(%) Standard 
deviation Duty free 
(%)a 
Total 9,916 1.7 0-30 4.1 76.9 (0.6) 
By WTO category      
WTO agricultural products 1,298 0.0 0-5 0.4 97.8 (1.8) 
Animals and products thereof 150 0.0 0-0 0.0 100.0 
Dairy products 38 0.0 0-0 0.0 100.0 
Fruit, vegetables, and plants 348 0.0 0-0 0.0 100.0 
Coffee and tea 42 1.5 0-5 1.8 47.6 (38.1) 
Cereals and preparations 185 0.0 0-0 0.0 96.2 (3.8) 
Oils seeds, fats, oil and their products 198 0.0 0-0 0.0 100.0 
Sugars and confectionary 32 0.0 0-0 0.0 100.0 
Beverages, spirits and tobacco 106 0.0 0-0 0.0 100.0 
Cotton 5 0.0 0-0 0.0 100.0 
Other agricultural products, n.e.s. 194 0.0 0-0 0.0 100.0 
WTO non-agricultural products  8,618 2.0 0-30 4.4 73.8 (0.4) 
Fish and fishery products 377 0.0 0-0 0.0 100.0 
Minerals and metals 1,386 0.3 0-20 1.9 94.9 (1.0) 
Chemicals and photographic supplies 1,327 0.4 0-30 2.0 93.3 (0.2) 
Wood, pulp, paper and furniture 455 1.6 0-5 2.3 68.1 
Textiles 802 1.0 0-10 2.5 82.9 
Clothing 300 0.0 0-0 0.0 100.0 
Leather, rubber, footwear and travel goods 319 4.3 0-20 7.0 65.5 
Non-electric machinery 1,292 3.9 0-20 5.8 51.5 
Electric machinery 716 5.7 0-20 4.5 10.8 
Transport equipment 885 2.3 0-20 6.4 88.4 
Non-agricultural products, n.e.s. 723 2.7 0-20 3.3 55.0 
Petroleum 36 0.5 0-2.2 0.0 55.6 (44.4) 
By ISIC sector      
ISIC 1-Agriculture, hunting and fishing 625 0.1 0-5 0.8 96.8 (0.6) 
ISIC 2-Mining 117 0.3 0-5 1.2 94.0 
ISIC 3-Manufacturing 9,173 1.9 0-30 4.2 75.3 (0.6) 
Manufacturing excluding food processing 8,139 2.1 0-30 4.4 72.5 (0.4) 
By stage of processing      
First stage of processing 1,061 0.2 0-5 0.9 95.2 (1.5) 
Semi-processed products 2,503 0.2 0-10 1.1 96.3 (0.1) 
Fully processed products 6,352 2.6 0-30 4.9 66.2 (0.6) 
By HS section      
01 Live animals and products 521 0.0 0-0 0.0 100.0 
02 Vegetable products 474 0.1 0-3.5 0.4 96.6 (3.4) 
03 Fats and oils 156 0.0 0-0 0.0 100.0 
04 Prepared food, beverages and tobacco 443 0.1 0-5 0.6 97.1 (1.6) 
05 Mineral products 204 0.1 0-2.2 0.3 92.2 (7.8) 
06 Chemicals and products thereof 1,157 0.5 0-30 2.2 91.0 (1.4) 
07 Plastics, rubber, and articles thereof 480 2.2 0-20 5.9 87.7 
08 Raw hides/skins, leather, products thereof 100 1.4 0-10 3.5 86.0 
09 Wood and articles of wood 157 3.5 0-10 2.5 31.8 
10 Pulp of wood, paper and paperboard 269 0.0 0-0 0.0 100.0 
11 Textiles and clothing 1,079 0.7 0-10 2.0 88.5 
12 Footwear, headgear, etc. 75 5.3 0-10 3.5 21.3 
13 Articles of stone, plaster, cement 215 0.7 0-20 3.4 96.3 
14 Precious stones and metals, pearls, etc. 81 2.7 0-5 2.5 45.7 
15 Base metals and articles thereof 909 0.1 0-20 1.3 99.6 
16 Machinery, electrical equipment, etc. 2,090 4.5 0-20 5.4 36.7 
17 Transport equipment 899 2.3 0-20 6.4 88.5 
18 Precision equipment 329 3.2 0-10 2.9 40.7 
19 Arms and ammunition 27 0.0 0-0 0.0 100.0 
20 Miscellaneous manufactured articles 239 2.7 0-10 3.5 57.7 
21 Works of art, etc. 12 0.0 0-0 0.0 100.0 
a Figures in brackets refer to the percentage of specific lines.  
Note: Calculations for averages are based on national tariff line level (10-digit), including 40 AVEs (out of 
55 specific lines) provided by the authorities.  
Source: WTO Secretariat calculations, based on data provided by the authorities.  WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  Chart 3.2 Average applied MFN and bound tariff rates by HS section, 2007 and 2014 
0.0%2.5%5.0%7.5%10.0%12.5%15.0%17.5%20.0%22.5%25.0%27.5%30.0%32.5%35.0%
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 2101   Live animals & products        
02   Vegetable products03   Fats & oils      
04   Prepared food, etc.
05   Mineral products06   Chemicals & products07   Plastic & rubber
08   Hides & skins09   Wood & articles
10   Pulp, paper, etc.
11   Textiles & articles12   Footwear, headgear13   Articles of stones
14   Precious stones, etc.15   Base metals and products
16   Machinery
17   Transport equipment18   Precision instruments19   Arms & ammunition
20   Miscellaneous manuf.21   Works of art, etc.MFN 2007 MFN 2014 Bound
Average applied rate
2007 (4.8%)Average bound rate
(9.9%)
Average applied rate
2014 (1.7%)
 
Note: MFN applied rates for 2014 include 40 AVEs (out of 55 specific lines) provided by the authorities. 
Sections 4, 5, 6,7,10, 15, 16, 17, 18, 19, and 20 are not fully bound.  
Source: WTO Secretariat calculations, based on data provided by the authorities.  
3.1.4.2  Bound tariff 
3.22.  The coverage of  Brunei's bound tariff lines went from 92.8% in 2007 to 89.1% in 2014 also 
because of the changes made in HS nomenclature. There remains a significant difference between the overall bound average of 25.4% and Brunei's applied MFN tariff of 1.7% (Table 3.2 and 
Chart 3.2). The difference is even larger in agriculture where the bound average tariff is 23.1% 
compared with an MFN average of zero.  
3.23.  Greater coverage of bindings could increase tariff predictability. According to the authorities, 
applied rates have not been raised during the review period and the gap also provides some 
flexibility to policymakers. Regarding agricultural products, the authorities maintain that the difference is necessary to address food security concerns and that it would consult with, and 
notify, all affected parties in advance, should tariffs be raised. 
3.1.4.3  Preferential tariff 3.24.  Brunei has preferential trading agreements with 16 partners: the other nine parties of 
ASEAN
21; seven countries that have negotiated agreements with ASEAN (Australia and New 
Zealand; China; Japan22; Republic of Korea, and India); as well as Chile in the context of the 
TPSEP.23 Brunei is committed to achieving free trade by specific dates under some of these RTAs 
(Table A2.2).  
3.25.  In 2014, the average preferential tariff (o n all products) under Brunei's RTAs ranged from 
zero (ASEAN Trade in Goods Agreement and Brun ei-Japan Economic Partnership Agreement) to 
1.4% (ASEAN India Free Trade Agreement). Simple average tariff rates under those RTAs are 
lower than the simple average applied MFN rates of 1.7% (Table 3.4). Tariffs, both MFN and 
preferential, are zero on agriculture (WTO definition).  
                                               
21 The other ASEAN members are Cambodia; Indonesi a; Lao PDR; Malaysia; Myanmar; Philippines; 
Singapore; Thailand; and Viet Nam. 
22 In addition to the ASEAN-Japan agreement, Brunei has its own bilateral trade agreement with Japan. 
23 TPSEP also includes Singapore and New Zealand,  members, respectively, of ASEAN and AANFTA. WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  Table 3.4 Summary analysis of Br unei's preferential tariffs, 2014 
 Total WTO agriculture WTO non-agriculture 
Average Duty free Average Duty free Average Duty free 
(%) rates (%) (%) rates (%) (%) rates (%) 
MFN 1.7 76.9 0.0 97.8 2.0 73.8 
ATIGA 0.0 100.0a 0.0 100.0 0.0 100.0 
AANZFTA 0.5 95.1 0.0 98.2 0.6 94.7 
ACFTA 0.1 97.5 0.0 98.2 0.1 97.4 
AIFTA 1.4 78.1 0.0 97.8 1.6 75.1 
AJCEP 0.3 96.3 0.0 98.2 0.3 96.0 
AKFTA 0.2 97.7 0.0 97.6 0.3 97.7 
BJEPA 0.0 98.8 0.0 98.2 0.0 98.9 
TPSEP 0.3 96.5 0.0 98.2 0.3 96.2 
a Only one tariff line is dutiable: fireworks (HS 3604.10) at 30%. 
Note: ATIGA = ASEAN Trade in Goods Agreement; AANZFTA = ASEAN-Austra lia-New Zealand FTA; 
ACFTA = ASEAN-China FTA; AIFTA = ASEAN-India FTA; AJCEP = ASEAN-Japan Comprehensive Economic Partnership; AKFTA = ASEAN-Republic of Korea FTA; BJEPA = Brunei-Japan EPA; and 
TPSEP = Trans-Pacific Strategic Economic Partne rship. Calculations are based on the 2014 tariff 
schedule in HS2012 nomenclature. 
Source: WTO Secretariat on the basis of in formation provided by  the authorities.  
3.1.4.4  Excise duties 
3.26.  Brunei's legislation on excise taxes is contained in the Excise Order 2006, which allows the 
Minister of Finance to impose and revoke excise taxes on any goods deemed appropriate. Until 31 December 2007, excise duties were levied only on Samsu  liquor (included medicated Samsu  
liquor). Since 1 January 2008, excise duties are levied on liquors (Chapter 22); tobacco 
(Chapter 24); vehicles (Chapter 87); and, effe ctive from 1 April 2012, excise duties are also 
applied on nuclear reactors, boilers, machinery, and mechanical appliances (Chapter 84), and medical or surgical instruments (Chapter 90).
24 The authorities informed that these new excise 
duties are levied for fiscal, social, health, and environmental considerations.25 The authorities also 
indicated that all goods subject to excise duty we re not manufactured in Brunei. Import duties on 
products subject to excise duties have been eliminated. 
3.27.  According to the authorities, 10.3% of tota l tariff lines (1,021 tariff lines at HS ten-digit 
level) were subject to excise duties in 2014, of which: 633 lines relate to vehicles; 276 to nuclear reactors, boilers, machinery, and mechanical appl iances; 42 to liquors; 39 to medical or surgical 
instruments; and 31 to tobacco. Over the 2008-13 pe riod, excise revenue from imports amounted 
to B$883 million. 
3.28.  Excise rates are set as a percentage of th e value of the goods with the exception of liquors 
and tobacco (Table 3.5). In 2012, changes were introduced to the rate applied to passengers' 
vehicles in an effort to encourage the use of energy-efficient and environmentally-friendly vehicles. 
Originally set at 20%, the rate is now based on the engine capacity and is divided in five tiers ranging from 15% for vehicles with engine capacity not exceeding 1,700 cc to 35% for those with 
engine capacity exceeding 3,500 cc. Diesel vehicl es are also charged an additional 5% on the 
applied excise rate and hybrid vehicles (petrol or  diesel) are granted a 5% reduction. The rate for 
vehicles used for public transport was reduced from 20% to 15%, while that for other vehicles 
remains unchanged (20%). The rate is set at 5%  for nuclear reactors, boilers, machinery, and 
mechanical appliances, and medical or surgical instruments. 
Table 3.5 Specific excise duties, 2014 
(B$) 
Goods Excise duty 
Liquors and vinegar (per 10 litres or decalitres)  
Beer made from malt  30 
Sparkling wine 120 
Wine and grape must   
Alcohol content < 15% 55 
                                               
24 Excise Duties Order 2007 (S 26/07) amended by amendment order S 114/08, S 91/10, and S 65/12.  
25 APEC (2009a).  WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
- 33 - 
 
  Goods Excise duty 
Alcohol content > 15%  90 
Vermouth and other wine of fresh grapes  flavoured with plants or aromatic 
substances   
Alcohol content < 15% 55 
Alcohol content > 15% 90 
Other fermented beverages  
Cider, shandy, other rice wine 30 
Sake, toddy 90 
Undernatured ethyl alcohol of ≥ 80% alcohol content  250  
Spirits, liqueurs, and othe r spirituous beverages   
Spirits and liqueurs 250 
Samsu  (including medicated Samsu ), arrack, and pineapple spirit   
Alcohol content < 40% 90 
Alcohol content > 40% 120 
Bitters and similar beverages  250 
Other 120 
Tobacco and manufactured tobacc o substitutes (per kg.)   
Unmanufactured tobacco 60 
Cigars  200 
Cigarettes   
Beedies  120 
Clove cigarettes (per stick) 0.25 
Other manufactured tobacco  120 
Source: Excise Duties (Amendment) Order 2012 (S 65/21).  
3.1.5  Import prohibitions, restrictions, and licensing 
3.1.5.1  Import prohibitions 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.  
3.30.  Although sale of alcohol is prohibited in Brunei, permission is granted to non-Muslims who 
may import 12 cans of beer and 2 litres of liqu ors duty free for personal consumption. Imports 
must be declared to Customs on arrival and a 48-hour gap is required between imports.27 The 
authorities indicated that import prohibited goods are not manufactured in Brunei.28  
Table 3.6 Prohibited imports, 2014 
Product Reason for prohibition 
1. Dangerous drugs (e.g. opium, heroin, morphine) Health and moral 
2. Java sparrows CITES 
3. Live animals from countries with F oot and Mouth Disease (FMD)  Health 
4. Fire crackers (known as double bangers) Safety and security 
5. Salk polio vaccine Health 
6. Vaccines of Chinese Taipei origin Health and security 
7. Arms and ammunition Security 
8. Fabric of tissue bearing the imprint of any currency or bank 
notes/coins Security 
9. Cigarettes without health warning written on packaging Health 
10. Shark products  Food security and environment 
Source: Information provided by the authorities.  
                                               
26 APEC (2009a); and ASEAN Database of Non-Tariff Measures of Brunei Darussalam (03.06.2010). 
Viewed at: http://www.asean.org/communities/asean-economic-community/item/non-tariff-measures-
database .  
27 MOF online information. Viewed at: http://www.mof.gov.bn/index.php/royal-custom-
matters/customs-procedures/passengers-concession ; and Government of the United Kingdom online 
information. Viewed at: https://www.gov.uk/foreign -travel-advice/brunei/local-laws-and-customs .  
28 APEC (2009a).  WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
- 34 - 
 
  3.1.5.2  Import restri ctions and licensing 
3.31.  Brunei maintains various import restrictions mainly for health, sanitary and phytosanitary, 
and moral reasons, and in some cases to ensure adequate supply and stable prices (Table 3.7). 
Since the last review in 2008, Brunei added se parated skimmed or filled milk to the list. 
3.32.  Importers must refer to the relevant govern mental agency to obtain an import permit prior 
to apply for an approval permit (AP) with RCED. Only importers registered with RCED and domiciled in Brunei may apply for APs. RCED requires 3 to 10 working days to process APs; no 
fees are charged. RCED is responsible for inform ing the Customs office where goods with APs are 
to be released. Applications must also be accompanied with the packing list and any relevant documents, e.g. veterinary health certificate (if required). Import licences are then issued for six 
months (with possible extension) and may not be transferred to another importer.
29 
Table 3.7 Restricted imports, 2014 
Product Reason for restriction Authorizing agency 
Eggs for hatching purpos es and fresh eggs unless 
clearly stamped in non-erasable ink or similar 
substance with the word "IMPORTED" on the shell of each egg  Health. To prevent 
introduction of zoonotic 
poultry diseases (e.g. Avian Influenza) Department of 
Agriculture and Agrifood 
(DOAA) 
Any living plant or planting material, plant 
products and soil To prevent the 
introduction of exotic 
plant pest and diseases  DOAA 
Live animals (e.g. cattle, sheep, goats, poultry, and birds) To prevent the 
introduction of animal diseases  DOAA  
Pin tables, fruit machines, slot machines and any 
other machines of like natu re whether involving an 
element of chance or not To prevent illegal 
gambling activities Ministry of Home Affairs 
Poisons and deleterious drugs He alth Narcotics Control Bureau 
Rice paddy and the products thereof, and 
separated, skimmed or whole milk Security of supply and 
price stability Supply and State Stores 
Department (SSSD) 
Separated skimmed of filled milk Food safety and health Mi nistry of Health 
Persian glue  Health  Ministry of Health 
Poh Ka, Poh Kah or Poh Kau; Koyoh or Koyok; 
Liow Ko, Ch'ow Ko  To prevent illegal 
gambling activities Ministry of Home Affairs 
Sugar, salt  Security of supply and 
price stability SSSD  
Converted timber  Security of supply and 
price stability Forestry Department 
Used and reconditioned vehi cles (5 years or older) 
including motorcars, motorcycles, lorries, 
omnibuses, tractors and trailers Safety  RCED, Land Transport 
Department 
Any radio-active materials  Safety  Ministry of Health 
Rhinoceros horn and all other parts of or products 
derived from the carcass of a rhinoceros  CITES DOAA 
Beef, including the carcass of the animal or any 
part thereof, the meat (w hether frozen, chilled or 
fresh), bones, hide, skin, hooves, horns, offal or 
any other part of the animal or any portion thereof, unless it has be en slaughtered in an 
abattoir approved in writing by the Minister of Religious Affairs  Religious and health Ministry of Religious 
Affairs; DOAA 
Turtle eggs CITES  DOAA  
Broadcasting equipment Security Authority for Info-
Communication Technology Industry (AITI) 
Cigarettes unless wi th Ministry of Health approved 
health warning written on the packages Health Ministry of Health 
                                               
29 WTO document G/LIC/N/3/BRN/1, 10 April 1997; and RCED online information. Viewed at: 
http://www.mof.gov.bn/index.php/ro yal-custom-matters/customs-services-and-technique/approval-permit .  WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
- 35 - 
 
  Product Reason for restriction Authorizing agency 
Poultry, including the carcass of the bird or any 
part thereof, the meat (w hether frozen, chilled or 
fresh), bones, skin, offal or any other part of the animal or any portion thereof, unless it has been slaughtered in an approved abattoir  Religious and health Ministry of Religious 
Affairs; DOAA 
 Alcoholic beverages  Religious RCED 
 Cough mixture containing  codeine Health RCED 
 Pens  and other articles resembling syringes Safety and security RCED 
Source: Information provided by the authorities.  
3.33.  In addition to prohibited and restricted  imports, Brunei also has some controlled goods 
which require a special permit from relevant agencies to be imported (with prior approval from RCED) (Table 3.8). 
Table 3.8 Licensed imports, 2014 
Product Reason for licence Authorizing agency 
Publication materials, prints, films, CDs, DVDs, etc.  Security and moral Royal Brunei Police Force 
Recital of Al-Quran, Hadith, religious books Religion and moral Islamic Dakwah Center 
Talisman goods (e.g. clothing with dubious photos) Moral Internal Security Department 
Halal meat and meat produc ts (fresh, cold, frozen) Religion Halal Import Permit Issuing 
Board 
Firearms, explosives, dangerous weapon s Safety Royal Brunei Police Force 
Scrap metal Safety Royal Brunei Police Force 
Plants, crops, live animals, vegetables, fruits, eggs Safety  Department of Agriculture 
Fish, prawns, shells, water organisms, fishing 
equipment, etc. Safety Fisheries Department 
Chemical, poison and radioactive mate rials Safety Ministry of Health 
Medicines, herbal, health foods, soft drinks, snacks Safety Ministry of Health 
Radio transmitter and rece iver and communications 
equipment, and broadcasting equipment Security Authority for Info-
Communication Technology Industry (AITI) 
Used vehicles, e.g. cars, motorcycles, mini buses, 
trucks, trailers, bicycles Safety RCED, Land Transport 
Department 
Timber and products thereof Primar y resources Forestry Department 
Badges, banners, souvenirs of government flags 
and emblems, royal regali a, government flags and 
crests Security Adat Istiadat Department 
Antiques made or found in Brune i Historical Museums Department 
Mineral water Safety Ministry of Industry and 
Primary Resources 
Building construction material, e.g. ce ment Safety Ministry of Industry and 
Primary Resources 
Rice, sugar and salt Security of supply 
and price stability Supply and State Stores 
Department (SSSD) 
Source: Information provided by the authorities.  
3.1.6  Contingency trade measures 
3.34.  Brunei does not have legislation or regulations on antidumping, subsidies and 
countervailing, and on safeguard measures. No anti-dumping, countervailing or safeguard 
measures have been taken during the revi ew period or are currently in force. 
3.1.7  Standards and other technical requirements 3.35.  In 2010, the National Standards Council (N SC), under the Ministry of Industry and Primary 
Resources (MIPR), was established as the body responsible to monitor and strengthen standards 
and conformance activities in Brunei.
30 It also provides policy direction with the aim of creating 
industries that are able to stimulate sustainable economic growth, and promotes awareness on consumer safety issues. Up to September 2014, th e following five Standards Committees had been 
formed: Construction, Halal, Food, Management Systems, and Electrical. Other three Standards 
                                               
30 The NSC, chaired by the Ministry of Industry  and Primary Resources, has members from various 
government agencies, the privat e sector and consumer groups. WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
- 36 - 
 
  Committees are envisaged for Energy, Pharmacy and Medicines, and Tourism and Handicraft. As of 
1 January 2014, the National Standards Centre, also  under the MIPR, is in charge of developing 
quality infrastructure in Brunei. Previously, this was the responsibility of the Authority for Building Control and Construction Industry (ABCi) Di vision in the Ministry of Development.  
3.36.  Brunei is still to notify its WTO enquiry point. So far, it has made three notifications to the 
WTO Committee on Technical Barriers to Trade, one during the review period (Table 2.1). 
3.37.  In Brunei all standards are voluntary. Nati onal standards, which are prepared by technical 
committees, are submitted for approval to the Standards Committees, which are chaired by the 
relevant Minister. Technical committees currently exist for the construction sector and for food-related standards. Technical Committees adopt international standards where relevant, and the alignment of national standards with existing relevant international standards is reviewed in line 
with the ISO/IEC Guide 25. Following examination by the Standards Committees, a standard is 
sent to the Standards Secretariat at the National Standards Centre for public comment (usually for six weeks); any comments are forwarded to the Technical Committees. For transparency, the 
Ministry of Development publishes a directory of  certified products, companies, and accredited 
laboratories.
31 
3.38.  Currently, there are no mandatory standards (technical regulations) in Brunei. It has 
83 national standards, mainly on construction and electrical-related products; 53 have been 
directly adopted from international standards. They cover use of the metric system in construction, quality management, steel reinforcement, cement , concrete, timber, and roads. Standards for 
electrical and electronic goods, gas appliances, and fire equipment are voluntary and based on ISO 
or IEC standards (for electrical/electronic products), where international equivalents exist. Both 
under ASEAN and APEC, Brunei participates on the harmonization of standards with international 
standards in areas such as: electrical and elec tronic, rubber-based products, medical devices, 
wood products, automotive, and cosmetics. 
3.39.  Since April 2010, the Accreditation Division, under the National Standards Centre, has been 
the national accreditation service provider. Cu rrently, there are eight conformity assessment 
bodies registered under NSC. The Accreditation Division offers three accreditation schemes: 
Management System Accreditation Scheme, Laboratory Accreditation Scheme, and Inspection Bodies Accreditation Scheme.  
3.40.  Since 1 July 2012, the Measurement Standards Division, under the National Standards 
Centre, has been the custodian of measurement standards in Brunei on the basis of the 
International System of Units (SI). Measurement and metrology facilities in Singapore (PSB) and Malaysia (SIRIM) are used frequently by Brunei's laboratories in calibration activities. Currently, 
laboratory accreditation for the construction sector is covered by the Ministry of Development 
Laboratory Accreditation Scheme; all other sectors are covered by the Brunei-Singapore SAC MoU on accreditation. 
3.41.  Brunei is a member of several international and regional standard-setting fora, including the 
ISO, Pacific Area Standards Congress, Codex A limentarius, ASEAN Consultative Committee on 
Standards and Quality
32, Pacific Accreditation Cooperation, APEC Sub-Committee on Standards and 
Conformance, and Asia-Pacific Laboratory Accreditation Cooperation scheme. Brunei participates in 
the IEC Affiliate Member programme, participates in the APEC E/E MRA, and signed the TEL MRA 
with Singapore in telecommunications; the scope of these MRAs concerns acceptance of test and certification. To reduce business compliance costs, Brunei unilaterally accepts certificates of 
conformity from such recognized bodies, and theref ore does not require re-certification or testing. 
Under ASEAN, MRAs for recognition and acceptance of conformity assessment results have been developed and implemented for electrical, electronic equipment, and medicinal 
products/pharmaceuticals.
33 
                                               
31 Ministry of Development online information. Viewed at: http://www.mod.gov.bn/ .  
32 The goal of the integration initiatives in the st andards and conformance area is to harmonise the 
technical requirements or product safe ty and quality through the adoption of  single regulatory regimes across 
ASEAN. There are currently two single re gulatory regimes in place, one for the cosmetic sector and the other, 
the electrical and electronic equipment sector. 
33 ASEAN (2013a).  WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
- 37 - 
 
  3.1.8  Sanitary and phytosanitary requirements 
3.42.  Brunei's national notification authority for SPS measures is the Department for Trade 
Development in the Ministry of Foreign Affairs and Trade.34 Three institutions, under MIPR, deal 
with SPS measures: the Department of Agricult ure and Agrifood (DOAA) for plants and plant 
products, live animals, and eggs and other fresh animal (non-halal) products; the Department of 
Fisheries for fish and fisheries products; and the Department of Forestry for forestry products. In addition, the Ministry of Religious Affa irs is responsible for halal products. 
3.43.  Since 2008, Brunei has made only one SPS notification of emergency measures, regarding 
the temporarily ban of imports of fresh agricultural and fish products (and processed foods) from certain regions of Japan due to possible radioactive contaminants.
35 Brunei also prohibits the 
importation of live animals from countries with FMD (Table 3.6).  
3.44.  Restricted/licensed live animals, animal products, fruits, vegetables, plants and plant 
products are listed in Tables 3.6 and 3.7, respectively.  
3.45.  Brunei is member of the Codex Alimentarius Commission and the World Organization for 
Animal Health (OIE).36 Brunei is not yet a member of the International Plant Convention (IPPC) 
but, according to the authorities, it complies with the IPPC. 
3.46.  Phytosanitary regulations are implemented by the DOAA Plant Quarantine Unit, under the 
Agricultural Pests and Noxious Plants Act, revised in 1984. Under the Act, imports of all plants and 
plant materials require import permits, issued by  the DOAA, and phytosanitary certificates, issued 
by the legal issuing authority in the country of origin, certifying the phytosanitary status of the plants.
37 Imports of a number of plants and materials from specific regions or countries may be 
prohibited to prevent entry of dangerous pests and diseases. All plant imports are subject to 
inspection by the DOAA on arrival in Brunei. Imports of soil (including attached to plant roots), are prohibited. Phytosanitary certificates for exports of agricultural materials may be obtained from 
the DOAA. 
3.47.  The Quarantine and Prevention of Disease (Animals) Regulations allow for the prohibition of 
import, detention of animals for treatment and examination, and for the investigation of imported 
products. Imports and exports of animals or their products must be declared at the port of entry or 
exit for quarantine inspection; and must be ac companied by an import permit, issued by the 
DOAA, and a veterinary health certificate, issued by a veterinarian authorized in the country concerned within seven days before departure. Exports of live animals and poultry must be 
accompanied by a veterinary health certificate. When a certificate is required for exports of 
products derived from animals, an Animal Health Certificate may be obtained from the relevant veterinary office.
38  
3.48.  Imports of beef and poultry are subject to import restrictions under the Second Schedule of 
the Customs (Prohibition and Restriction on Impo rts and Exports) Order, unless they have been 
slaughtered in a foreign abattoir approved in wr iting by the Minister of Religious Affairs. The 
Government maintains a list of approved abattoirs from which meat or poultry may be imported by 
holders of halal import permits issued under the Halal Meat Act (Chapter 183) and the Halal Certificate and Halal Label Order 2005. Under the Halal Meat Act, the Board for Issuing Halal Import Permits grants the permit if the slaughterh ouse is already on a list approved by the Brunei 
Islamic Religious Council ( Majlis Ugama Islam )
39; for slaughterhouses not on the list, an inspection 
committee, including representatives from the Ministry of Religious Affairs, the Majlis , and the 
DOAA is required to inspect and approve the abat toir. The Board forwards the application to the 
Majlis who makes the final decision on issuing the import permit.40 Authorized officers from the 
                                               
34 WTO document G/SPS/ENQ/26, 11 March 2011. 
35 WTO documents G/SPS/N/BRN/3, 9 May 2011, and G/SPS/N/3/Rev.1, 29 November 2012. 
36 WTO document G/SPS/GEN/49/Rev.11, 23 September 2011. 
37 Phytosanitary certificates  issued by the country of origin are valid for 14 days (Plant Quarantine 
Services, 1993). 
38 Quarantine and Prevention of Disease (E xportation of Animals) Regulations.  
39 The Board is chaired by the Controller of Cust oms and its members include representatives from the 
Ministry of Religious Affairs, Medi cal and Health Services, the Departme nt of Agriculture,  and the Majlis 
(Section 3 of the Halal Meat Act). 
40 Halal Meat Act, Section 3. WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
- 38 - 
 
  DOAA examine all imports of halal meat and certify it fit for human consumption. Currently, halal 
meat and poultry may be imported only from Australia, China, India, Indonesia, Jordan, Malaysia, and the Philippines. Brunei imports live cattle from Australia and Malaysia (Sabah and Sarawak) for slaughter at local abattoirs.  
3.49.  Other sanitary and health restrictions are maintained under the Poisons Act and the Misuse 
of Drugs Regulations, which are enforced by th e Pharmaceutical Enforcement Services, in the 
Ministry of Health. This includes regulation of all imports and exports of pharmaceuticals, 
chemicals, agri-chemicals, pesticides, etc. in collaboration with Customs. Regular inspections are 
also conducted on pharmaceutical wholesalers, clinics, and retailers in Brunei. Imported veterinary pharmaceuticals, animal vaccines, and agri-chemi cals are controlled and approved by the DOAA, 
through the Ministry of Health under the Poisons Act. The Drug Quality Control Service also 
inspects all drugs, both locally produced and imported, to ensure quality.  
3.50.  The Department of Health Services under th e Ministry of Health ensures food imported and 
distributed in Brunei is safe. Food importers are required to comply with the Public Health Order 
(Food) 1998, Public Health (Food) (Amendment) Order 2002 and its Regulations 2000, which 
protect consumers from dangerous adulterated or p oor quality foods. Food importers are required 
to submit the customs declaration form together with relevant documents (including health 
certificates) to the Food safety and Quality Control Division, Department of Health Services, for 
endorsement.  
3.1.9  Labelling and marking  3.51.  Brunei's legislation on food labelling requirements is contained in the Public Health (Food) 
Order, 1998. Labels for food products must contain the following information either in Malay or 
English: name of food, list of ingredients, net/ drained content, name and address of manufacturer, 
packer, wholesaler, importer and distributor, the country of origin, lot identification, date and 
storage instructions, and instructions and date for use. Where a suitable common name for the 
food product is not available, a description to indicate the nature of the food is required. All imports of meat and products containing meat mu st conform to labelling requirements approved 
by the Board for Issuing Halal Import Permits.
41 For food with animal or alcohol content, the origin 
of the animal or alcohol product must also be indicated. In addition, the contents of all meat products should be clearly mentioned on the label.  
3.52.  Since 1 January 2002, 25 categories of food and beverage products require date marking 
and must be registered with the Food Safety and Quality Control Division before importation into 
Brunei. The products include cream, milk and milk products, pasteurised fruit and vegetable juice, soya bean curd, chilled food, sauces, peanut butter, flour and flour products, egg products, raisins 
and sultanas, chocolate, edible fats and oils, food additives, margarine, meat products, and 
nutrient supplements.  
3.53.  Labelling requirements on imported tobacco are set out in the Tobacco (Labelling) 
Regulations, 2007 and the Tobacco Order, 2005 (S/49/05). Labels must include a printed health 
warning in English on one surface and in Malay on the other surface, and conform to the specifications set out in the specific schedules  in the Tobacco (Labelling) Regulations, 2007.  
3.54.  No genetically-modified labelling requirements are currently in force in Brunei. 
3.2  Measures Directly Affecting Exports 
3.2.1  Export procedures and requirements 3.55.  Exporters must be registered with the Royal Customs and Excise Department (RCED) and 
must appoint a forwarding agent who should also be registered with the RCED. All exports from 
Brunei shall be declared through electronic submission via e-Customs system. Invoices and other related documents shall be presented during customs clearance. However, for restricted and/or 
controlled items, supporting documents, such as export permit(s) from relevant government 
agencies may be required.  
                                               
41 Meat products must carry the halal label when sold in Brunei (Emergency (Halal Meat) Order 1998). WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
- 39 - 
 
  3.56.  During the review period, two IT applications were implemented to make export procedures 
paperless: (i) the Brunei's e-Customs42 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.
43 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.
44  
3.57.  According to the latest estimates from th e World Bank, export procedures in Brunei take 
19 days and cost US$705 per container (27 days and US$515 per container in 2008).45 There are 
no customs fees for export procedures or registration; goods in transit via Brunei have fees ranging from B$10 to B$100 depending on their type or nature. 
3.2.2  Export taxes, charges, and levies 
3.58.  Brunei does not have export taxes, charges, levies or minimum export prices. 3.2.3  Export prohibitions, restrictions, and licensing 
3.59.  The Customs Order 2006 (Section 31) allows the Minister of Finance to prohibit imports or 
exports. Brunei prohibits exports of prawn refu se and copra cake, stone and gravel, and round 
timber of logs and sawn timber. 
3.60.  Brunei maintains export restrictions on certain goods, such as sugar, rice, paddy and 
products thereof, to ensure adequate domestic su pply and price stability. Before restricted goods 
may be exported, an export permit from the rele vant authorizing agency and Customs' approval 
are required (Table 3.9).
46  
Table 3.9 Restrict ed exports, 2014 
Goods Reason Authorizing agency 
Articles of antique or historical nature 
made or discovered in Brunei Cultural heritage Department of Museums  
Cigarettes Health Ministry of Health  
Automotive gas oil (diesel)  Supply an d price stability Energy Department 
Gasoline (premium and regular) Supply and price stability Energy Department 
Kerosene Supply and price st ability Energy Department 
Rice, paddy, and pr oducts thereof Supply and price stability Supply and State Stores 
Department (SSSD)a 
Sugar Supply and price stability SSSDa 
Highly processed timber Supply and price stability Department of Forestry 
Elaeis Quineesis (oil palm) Supply and price stability SSSDa 
Derris species (tuba) Wildlife Department of Agriculture and 
Agrifood (DOAA) 
a Until 2010, Department of Information Technology and State Stores.  
Source: Information provided by the authorities.  
3.61.  Some other products are subject to export licences which may be obtained upon fulfilment 
of certain conditions (Table 3.10), including local content and packaging and labelling 
requirements. 
                                               
42 Ministry of Finance online information. Viewed at: http://www.mof.gov.bn/index.php/brunei-e-
customs . 
43 APEC document 2011/MAG/WSKP1/005, February 2011. Viewed at: 
http://mddb.apec.org/Documents/2011/MAG/WKSP1/11_mag_wksp1_005.pdf. 
44 ASEAN online information. Viewed at: http://www.asean.org/news/asean-statement-
communiques/item/the-pilot-project-f or-the-implementation-of-a-regional-self-certification-system-brunei-
darussalammalaysiasingaporeasean-secretariat-29-october-2010 ; and ASEAN (2013a).  
45 World Bank/IFC (2014).  
46 RCED online information. Viewed at: http://www.mof.gov.bn/index.php/royal-custom-
matters/customs-procedures/prohibition-and-restriction  and http://www.mof.gov.bn/in dex.php/royal-custom-
matters/customs-procedures/import-and-export-licencepermit .  WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
- 40 - 
 
  Table 3.10 Licensed exports, 2014 
Goods Authorizing agency  
Badges, banners, and souvenirs Department of Adat Istiadat  
Eggs, crops, fruits, live an imals, plants, vegetables Department of Agriculture and Agrifood 
(DOAA) 
Fishes, prawns, shells, water organisms, and fishing 
equipment Department of Fisheries 
Halal meat and meat products  (fresh, cold, and frozen) Halal Import Permit Issuing Board  
Radio transmitter and receiver, communications equi pment Info-Communication Technology Industry  
Salt Supply and State Stores  Department (SSSD) 
Vehicles Land Transport Department 
Poison, chemicals, and radioactive materials Ministry of Health 
Broadcasting equipment Authority of Info-Communication Technology 
Industry (AITI)  
Firearms, explosives, fire crackers, dangerous weapons, 
publication materials, prints , films, CDs, scrap metal Royal Brunei Police Force 
Source: Information provided by the authorities. 
3.2.4  Export support 
3.2.4.1  Duty drawback 
3.62.  There was no change to the duty dr awback system during the review period.47 Duty 
drawback may be claimed on goods that are re-e xported without transformation within 12 months 
of import duty payment. In addition, re-expor t consignments must bear a minimum value of 
B$500. Drawback is set at nine tenth of the impo rt duties paid. Exporter manufacturers are also 
entitled to claim duty drawback on inputs imported  by them and used in the manufacture of export 
goods providing production takes place in pr emises approved by Customs and inputs are 
re-exported within 12 months of import duty paymen t. Drawback is permitted for re-exportation of 
imported goods not used or sold in Brunei. According to the authorities, the amount of duty drawback is negligible. 
3.2.4.2  Tax exemption 
3.63.  Exporters may claim income tax exemption under Part VII of the Investment Incentives 
Order 2001 (S 48/01)
48 (section 2.4.1.1 and Table 2.2). Claims are made to the Ministry of 
Primary Resources and Industry (MIPR). Eligible exporters are those that manufacture and export 
agricultural, forestry, fishery, and manufacturing goods. The grant of income tax exemption is 
subject to the exporter manufacturers giving evid ence of: (a) incurred fixed capital expenditure of 
at least B$500,00049; or (b) export sales of at least 20% of total sales and not less than B$20,000 
in the first year of assessment and not less than B$20,000 in subsequent years.50 Income tax 
exemption is granted for up to 15 years. According to the authorities, there is no data on revenue 
forgone from tax incentives granted to exporter s. Also, exporter manufacturers are allowed to 
duty-free imports of capital goods and raw materials providing these are not on sale in Brunei.51 
3.64.  Enterprises engaged in overseas services projects and international trading companies may 
also claim income tax exemption under the Investment Incentives Order 2011 (section 2.4.1.1 and Table 2.2). 
3.2.4.3  Export processing zones 
3.65.  Brunei does not have export processing zones. 
                                               
47 Part X of the Customs Order 2006 (S 39/06), as amended by S 98/08, S 39/11, and S 21/13. 
48 As amended by S 15/10 and S 5/11. 
49 For fixed capital expenditure up to B$50 million, 40% of the paid-up capital of the export enterprise 
must be hold by nationals or resident permit holder s and activities must be re cognized as promoting and 
enhancing Brunei's economic and technological development. 
50 The accounting period in which manufacturer exporters are expected  to reach export sales target 
must be specify in the certificate for income tax exemptio n issued by MIPR. If, in th e first year of assessment, 
exporters fail to fully reach the sales target, the exempt ion will apply as from the year sales requirements are 
satisfied. If sales target is met part ially in the first year of  assessment, MIPR may allow income tax exemption. 
51 Part XV of the Investment Incentives Order 2011 (S 98/01), as amended by S 15/10 and S 5/11. WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
- 41 - 
 
  3.2.5  Export finance, insurance, and promotion 
3.66.  The MIPR launched the Export Refinancin g Scheme (ERS) in 2010 in collaboration with the 
state-owned Bank Islam Brunei Darussalam (BIBD).52 ERS is a loan scheme aimed at helping 
enterprises to internationalize and increase comp etitiveness. Eligible exporters are direct and 
indirect exporters exporting "promoted products ", i.e. agricultural and fishery products, 
downstream forestry products, manufacturing, and ICT products.53 ERS loans are used to finance 
pre- and post-shipment costs, i.e. raw material s, packing, storage, transport, and delivery 
expenses. The amount of loans ranges from B$50,000 to B$500,000, at a 4% interest rate. 
Guarantee is required in the form of letters of credit and purchase orders.54 No exporters have yet 
applied to ERS; the authorities are in the process of reviewing procedures and eligibility criteria.  
3.67.  The MIPR is also engaged in export promotion through sponsorship and certification 
programmes. Costs associated with exporters' participation in overseas trade fairs and exhibitions, 
are sponsored by MIPR. These cost include registration, booth, advertisement, interpretation service, shipment of material (not exceeding 150 kg per company), and transport or 
accommodation (whichever is higher and for one pe rson per enterprise). In addition, to ensure 
compliance of export goods with standards in overseas markets, MIPR covers the full cost of certification for food and manufactured products providing export goods are manufactured in 
factories approved by the relevant governmental authorities. To apply to MIPR programmes, 
export enterprises are required a mi nimum 30% local equity participation.
55  
3.68.  In 2010, Brunei's first B2B online portal, Buy Brunei56, was launched to promote trade and 
partnerships between local and international traders.57 Buy Brunei is a BEDB initiative co-financed 
with AMIR consortium which was awarded web development.58  
3.69.  Brunei does not have export insurance schemes.  3.3  Measures Affecting Production and Trade 
3.3.1  Incentives 
3.3.1.1  Tax incentives 3.70.  During the review period, Brunei introduced several changes to the Income Tax Act 
(Chapter 35) with the view to reducing tax liabili ties of enterprises, with the exception of those 
engaged in petroleum activities (see below). 
3.71.  The income tax rate was reduced gradually from 27.5% in 2008 to 20% in 2014, and will be 
further reduce to 18.5% as from 2015. Also, tax thresholds were introduced in 2008 to further 
reduce corporate tax burden. These thresholds were subsequently modified over the 2008-14 
period.
59 As from 2014, the corporate income tax has three rates: 5% for incomes up to 
B$100,000; 10% for incomes above B$100,000 and up to B$250,000; and 20% for incomes above 
B$250,000. Companies newly incorporated are exempt from income tax for revenue up to 
B$100,000 during the first three years of assessment.60 
3.72.  Tax credits may be claimed for investment in capital goods and human resources (new staff, 
training, pension plan). However, they must not exceed 50% of total taxes payable by the 
enterprise. For expenditure in new machineries and plants incurred between 2012 and 2017, a tax 
                                               
52 BEDB (2012).  
53 Export enterprises may be wholly  foreign owned, with the exceptio n of joint ventures for which a 
minimum 30% local equity participation is required. 
54 For further information, see BIBD  online information. Viewed at: 
http://www.bibd.com.bn/corporate/financing/sme-financing/export-refinancing-scheme/ .  
55 BEDB (2012).  
56 Padian online information. Viewed at: www.padian.com .  
57 Brunei Times , 29 October 2013. Viewed at: http://www.bt.com.bn/business-
national/2013/10/29/padian-portal-bimp-eaga-businesses-goes-online .  
58 BEDB online information. Viewed at: http://www.bedb.com.bn/bisop_devlocalbusiness.html . 
59 MOF online information. Viewed at: http://www.mof.gov.bn/index.php/type-of-taxes/income-tax . 
60 Section 35 of the Income Tax Act (Chapter 35), Revised Edition 2013; and STARS online information. 
Viewed at: https://www.stars.gov.bn/eServices/Public/TaxGuide.aspx .  WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
- 42 - 
 
  credit of up to 15% of the expenditure may be claimed. This tax credit may be carried forward for 
a maximum of two years.61 
3.73.  In addition, initial and annual allowances  for expenditure in industrial buildings were 
doubled as well as initial allowance for expenditure in machineries and plants.62 Annual allowance 
for expenditure in machineries and plants continue to be calculated at a rate comprised between 
3% and 25% on the reducing value of assets. However, effective 2009, enterprises may opt for a 33.33% annual allowance for a period of three years. In addition, 100% capital allowance may be 
claimed for expenditure incurred in machineries and plants not exceeding B$2,000
63 and 
computers and other office automation equipment.64 Enterprises are authorized to carry forward 
capital allowances so long as they carry on the same industrial park.65 
3.74.  Further deductions were also introduced on contribution to staff pension plan, and salaries 
paid to staff on maternity leave.66  
3.75.  In addition, a 1% tax on income raised from approved exports was introduced in 2012.67 
Industries and products declared as approved for export are pursuant to section 8A of the Income 
Tax (Amendments) Order 2012.68 Export enterprises may opt to pay the tax on exports in lieu of 
the standard income tax rate.69 According to the authorities, so far no enterprise has opted to pay 
the tax on exports in lieu of the income tax rate.  
3.76.  Business losses may be set off and unabsorbed losses carried forward for a maximum 
period of six years.70 
3.77.  Changes to the Income Tax Act (Chapter 35) do not apply to companies engaged in 
petroleum activities which are governed by the Income Tax (Petroleum) Act (Chapter 119).71 
Since 2008, there has been no change to the tax regime applied to companies engaged in 
petroleum activities.  
3.78.  Enterprises manufacturing pioneer products and investing into new assets to increase 
production volume, may be exempt from income tax under the Investment Incentives Order 2001 
(S 48/01) (section 2.4.1.1 and Table 2.2). 
3.79.  Tax credits may be granted under Brunei's double taxation agreements (section 2.4.1).72 
The Income Tax Act (Chapter 35) provides also for avoidance of reciprocal tax relief on income 
arising from Commonwealth partners; provision ceases if a double taxation treaty is in force.73  
                                               
61 Section 42 of the Income Tax Act (Chapter 35), Revised Edition 2013. 
62 For expenditure in buildings, enterprises may claim an initial allowance of 40% of the cost and annual 
allowance of 4% of the qualifying expenditure, on a straig ht line basis until total expe nditure is written off. For 
expenditure in machineries and plants, initial allowance is 40% of the cost. 
63 Aggregate amount shall not exceed B$30,000 per year of assessment. 
64 Sections 13 and 16 of the Income Tax Act (Chapter 35), Revised Edition 2013. 
65 Oxford Business Group online information. Viewed at: 
http://www.oxfordbusinessgroup.com/news/ru les-game-tax-updates- businesses-need-know .  
66 Section 11 of the Income Tax Act (Chapter 35), Revised Edition 2013. 
67 Section 8A of the Income Tax Act (Chapter 35), Revised Edition 2013. 
68 The 22 approved industries for ex port are: cement finish mill; pharmaceutical; aluminium wall tile; 
rolling mill plant; industrial chemical; tissue paper; text ile; canning, bottling, and pa ckaging; furniture; glass; 
ceramic and potteries; wood base; plasti cs and synthetic; fertilizers and pesticides; gas; sheet metal-forming; 
manufacture of electrical industrial  machinery and apparatus; slaughteri ng, preparing, and preserving halal 
meat; manufacture of non-metallic mineral products; manufacture of ra dio, television, and communication 
equipment and apparatus; manufacture of communicatio n equipment; and manufacture of other articles of 
paper and paperboard. 
69 Oxford Business Group online information. Viewed at: 
http://www.oxfordbusinessgroup.com/news/ru les-game-tax-updates- businesses-need-know .  
70 BEDB online information. Viewed at: http://www.bedb.com.bn/doing_guides_taxation.html ; and MOF 
online information. Viewed at: http://www.mof.gov.bn/index. php/type-of-ta xes/income-tax .  
71 Revised Edition 2004, as amended by S 6/12. 
72 Section 41 of the Income Tax Act (Chapter 35), Revised Edition 2013; and Sections 47-48 of the 
Income Tax (Petroleum) Act (Chapter 119), Revised Edition 2004. 
73 Sections 40 and 41(3) of the Income Tax Act (Chapter 35), Revised Edition 2013. WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  3.3.1.2  Other financial support 
3.80.  In 1996, Brunei notified the WTO that it did not maintain any subsidy programme.74  
3.81.  In 2010, the Department of Agriculture an d Agrifood (DOAA) launched the Agriculture and 
Agrifood Incentive Scheme (SIPA), a subsidy schem e aimed at enhancing productivity and output 
in the agriculture and agri-food sectors (section 4.1.1.2).75  
3.82.  Some varieties of rice76 and refined white sugar, which are imported and distributed by the 
State (section 3.3.3), continue to be subsidized to keep affordable retail prices and protect 
consumers from increases in world commodity prices  (section 4.1 and Table 4.3). In addition, price 
support for subsidized rice and sugar applies also in the form of price monitoring (section 3.3.2.3).  
3.83.  Prices of housing, petroleum products (section 4.2.1), utilities (section 4.2.2), as well as 
education, healthcare, and telecom services (section 4.4.3) continue to be subsidized in Brunei. In 
2010, unpaid consumers' bills amounted to B$486 million: B$163 million for electricity, 
B$67 million for water, B$66 million for telecom, and B$20 million for housing.  
3.84.  Brunei is taking measures to reduce subsidies and increase financial prudence, including 
through the introduction of a progressive electricity tariff structure in 2012 (section 4.2.2).77 
3.3.1.3  Support to SMEs 3.85.  In 2012, 98% of the businesses established in Brunei were micro, small, and medium sized 
enterprises (MSMEs)
78 which employed about 92% of total workforce in the private sector. 
In 2010, MSMEs were concentrated in wholesal e and retail trade, construction, mining and 
quarrying, and manufacturing. Participation of MSMEs in oil and LNG production and sawmilling 
and timber processing, was limited. MSMEs contribution to GDP amounted to 22% in 2008.79  
3.86.  Financial assistance for MSMEs is provided by the Brunei Economic Development Board 
(BEDB) and the Ministry of Industry and Primar y Resources (MIPR). Five grant and loan schemes 
have been developed to help MSMEs grow, consolidate, and internationalize (Table 3.11). Under 
MIPR schemes, 909 applications have been received from 1999 until July 2014; total financial 
assistance amounted to B$177.49 million (Table 3.11). Under the 10th National Development Plan 
2012-17, B$100 million have been allocated to MSMEs support.80 
3.87.  During the review period, BEDB set up three main grant schemes for micro entrepreneurs 
(Table 3.11): (i) the Village Enterprise Grant Scheme was developed to promote sales of village products in support of the "One Village, One Prod uct" initiative launched by the Ministry of Home 
Affairs; (ii) the Youth Entrepreneurship Development Programme which has helped 118 micro 
entrepreneurs start their business
81; and (iii) the Enterprise Technical Assistance Scheme (ETAS) 
that covers cost relating to enhancing competitiveness such as improving corporate governance, 
                                               
74 WTO documents G/SCM/N/3/BRN and G/SCM/N/16/BRN, 22 November 1996. 
75 Brunei Times , 19 February 2014. Viewed at: http://www.bt.com.bn/ over-glass-teh-
tarik/2010/06/22/helping-smes-through-sipa ; and RBT News online in formation. Viewed at: 
http://www.rtbnews.rtb.gov.bn/index.php?option=com_content&view=article&id=11861%3Aincentive-
scheme-roadshow&Itemid=74 . 
76 Thai Hom Mali rice, Vietname se fragrant rice, Thai white ri ce, and Thai glutinous rice. 
77 To expose consumers to the scale of energy subsid ies, a "no fuel subsidy" campaign was organized in 
2010 during which only unsubsidized gasoline and diesel were sold for one day; for example, pump price of premium gasoline (RON 97) jumped from B$0.53 per litre to B$0.98 per litre. 
78 Micro: 1-5 employees; small: 6-50 employees; and medium: 51-100 employees. 
79 PowerPoint presentation by BEDB, "Promising Local Enterprise Development Scheme (PLEDS)", 
February 2012. Viewed at: http://www.bedb.com.bn/documents/pleds/pleds_briefing-feb12.pdf ; and 
PowerPoint presentation by Brunei Tour ism, "Assessment on SME Innovation Policies and Best Practices: Brunei 
Darussalam Self-Assessment Report", June 2010. Viewed at: http://www.apec-smeic.org/_file/daegu/4-1.brunei%20Daegu%20Initiative%20-%20Brunei%20D arussalam%20Self%20Assessment%20Report%20 
Presentation%20(7%20June%202010).pdf.  
80 RTB News online information. Viewed at: 
http://www.rtbnews.rtb.gov.bn/index.php?option=com_content&view=article&id=17985%3Astrategic-plan-
for-smes-future&Itemid=74 .  
81 BEDB Press Release, 28 January 2014. Viewed at: 
http://www.bedb.com.bn/news_readmore.php?id=314 .  WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  hiring professional and to overcome common market  entry barriers. The BEDB also introduced the 
Promising Local Enterprise Development Scheme (PLEDS) and the PLEDS Investment Fund to assist local enterprises to expand. Investment per local enterprise is up to B$5 million. 
Table 3.11 Feature of loans and grants to MSMEs 
(B$ million) 
Scheme Since MSMEs Description Total 
Recipients Outlay  
BEDB  
Youth Entrepreneurship 
Development 
Programme (YEDP) 2008 Micro  Maximum grant B$2,000 (further 
B$2,000 extension possible)  118a 0.24b 
Village Enterprise Grant 
Scheme 2012 Micro  Maximum grant B$50,000  5  ..  
Enterprise Technical 
Assistance Scheme 
(ETAS)  2012 SMEs  Cost-sharing grant (50:50). 
Maximum allocation B$300,000  .. .. 
MIPR  
Micro-Credit Financing 
Scheme (MFS) 2001 Micro  Maximum loan B$50,000; 4% 
annual interest rate. Maximum 
tenure 5 years. Grace period 
3-12 months  645c 13.81c 
Enterprise Facilitation 
Scheme (EFS) 1999 SMEs  Maximum loan B$5 million; 4% 
annual interest rate. Maximum tenure 10 years. Grace period 
3-12 months 264
c 163.68c 
.. Not available. 
a As of 2013. 
b As of 2012. c As of July 2014. 
Source: WTO Secretariat; and information provided by the authorities.  
3.88.  In 2008, the MIPR Micro-Credit Financing Scheme (MFS) and Enterprise Facilitation Scheme 
(EFS) were significantly revised. The amount of loans was increased to B$50,000 (up from B$30,000) for MFS loans and to B$5 m illion (up from B$1.5 million) for EFS loans 
(Table 3.11). Loan tenures and gr ace periods were also extended.
82 Both schemes are financed by 
the Government through the SME Development Fund as of 11 April 2012. The Fund is administered by MIPR; disbursements are jointly managed by Bank Islam Brunei Darussalam 
(BIBD) and Baiduri Bank Berhad (BBB).
83  
3.89.  Most MFS clients are involved in: contract/tender (24%); food services and restaurants 
(20%); boutique and tailoring (12%); and retail trade (10%). EFS is aimed at assisting SMEs develop export capacity. Loans are primarily given to those operating in agriculture (28%), fishery 
(26%), manufacturing (29%), tourism (9%), and, effective from 2008, ICT (3%), construction 
(4%), and services (1%). There is no minimum local equity participation required to MSMEs under MFS and EFS, with the exception of joint ventures (30%).
84 
3.3.1.4  Research and development  
3.90.  Under the 10th National Development Plan 2012-17, Brunei has allocated 1% of GDP 
(B$200 million) to R&D to help achieve economic diversification.85 In 2012, the Brunei Research 
Incentive Scheme (BRISc) was launched by the BEDB to support R&D. Bruneian-owned and 
foreign companies engaged in energy, environment, health, food security, and ICT, are eligible under the scheme. BRISc is a cost-sharing grant with a maximum allocation of B$5 million per project. BRISc offers three levels of financing: 80%  of the cost of the proj ect is financed by BEDB 
for projects developed by Bruneian-owned enterprises; 70% for projects developed by foreign 
                                               
82 Brunei Times , 18 May 2008. Viewed at: 
http://www.bt.com.bn/news/2008/05/18/govt_revises_enterprise_loan_schemes . 
83 Brunei Times , 3 November 2010. Viewed at: http://www.bt.com.bn/business-
national/2010/11/03/mipr-funds-open-farmers-fishermen . For further details, see BIBD online information, 
"Corporate: SME Financing". Viewed at: http://www.bibd.com.bn/ ; and Baiduri Bank Group online information. 
Viewed at: http://www.baiduri.com.bn/cb_smefinancing.htm .  
84 BEDB (2012).  
85 Department of Economic Planning and Development (2012).  WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  enterprises in collaboration with IHLs or govern mental agencies; and 50% for projects developed 
by foreign enterprises. Projects must not exceed three years.86. 
3.91.  The Income Tax Act (Chapter 35) allows enterprises to deduct R&D costs against taxable 
income.87 In addition, tax incentives are granted to enterprises investing in new technology under 
the Investment Incentives Order 2001 (S 48/01) (section 2.4.1.1 and Table 2.2). 
3.3.1.5  Supporting Start-Ups and Innovation 3.92.  During the review period, Brunei created three grant schemes to support start-ups and 
innovation: (i) in 2010, the Authority of Info-Comm unications Technology Industry (AITI) set up a 
grant, for up to B$250,000 and 50% locally- owned enterprises, to enhance ICT product 
development, improvement, certification, and packaging/marketing
88; (ii) Local Enterprise 
Application and Product (LEAP) grant covers up  to B$150,000 per project of local SMEs and 
students and staff from institutes of higher learning (IHLs) for the development of innovative 
products and applications with commercial and export potential in a broad range of clusters (e.g. ICT, robotics, engineering, nano technology, bi o-tech, agriculture and aquaculture, and green 
technology)
89; and (iii) Start-Up Brunei aims to encourage the start-up of innovative businesses 
and to attract world-class, high potential start-ups to set up in Brunei. Start-up Brunei is eligible for both local and foreign companies, providin g an incentive of up to B$50,000 per company. 
Foreign companies are also eligible for an additional B$30,000 relocation incentive.
90  
3.93.  Brunei also has other three schemes to help start-ups and innovation: (i) the Creative Arts 
Facilities (CRAFT) provides an ecosystem for the development of digital multimedia through 
provision of shared infrastructure and capacity development programs91; (ii) the iCentre is the first 
ICT incubator aiming to be the centre for nurturi ng and developing successful entrepreneurs in the 
industry92; and (iii) Entrepreneurship at Campus (E@C), an initiative launched in 2013 by BEDB 
and Universiti Brunei Darussalam with the support of iCentre E@C, aims to encourage the start-up 
of innovative businesses amongst students through incubation, mentorship, talks by local and 
international speakers and other entrepreneurial development activities. 
3.94.  In 2009, BEDB invested B$5 million in Accel-X Pte Ltd., a Singapore-based venture capital 
fund that helps early stage and innovative technology companies in ICT, interactive digital media, 
and engineering by providing access to financial support, extensive overseas networks, and mentorships. The Fund allocates a maximum of B$ 1.5 million per company; higher allocation is 
possible subject to approval.
93 Innovative ICT enterprises may also apply to the Future Fund which 
allocates from B$50,000 to B$150,000 to projects.94 
3.3.1.6  Credit support  3.95.  According to the authorities, Brunei does not have preferential credit facilities to enterprises. 
3.3.2  Competition policy, consumer protection, and price controls 
3.3.2.1  Competition policy  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 
                                               
86 BEDB online information. Viewed at: http://www.bedb.com.bn/brisc/[BRISc]-Application.Guideline-
(May2013).pdf . 
87 Section 11C of the Income Tax Act (Chapter 35), Revised Edition 2013. 
88 Up to 2013, 12 ICT enterprises have been awarded these grants. AITI Latest News, 
12 February 2014. Viewed at: http://www.AITI.gov.bn/news /allnews/Pages/Two-more-local-ICT-business-
awarded-with-AITI-Grant.aspx ; and BEDB (2012).  
89 So far, BEDB has monitored the develo pment of twenty four LEAP projects. 
90 To date, two local and two foreign companies ha ve been awarded the Start-Up Brunei grant. 
91 Training on 3D animation and vi sual effects are conducted by two software partners Autodesk Asia 
Pte Ltd and Side Effects Softwa re Asia Pacific (Singapore). 
92 The iCentre provides enterprise development assistance, mentorship, fund-raising assistance as well 
as exposure trips abroad. 
93 BEDB Press Release 11 May 2009. Viewed at: http://www.bedb.com.bn/news_readmore.php?id=77 . 
94 For further details, see BEDB (2012). WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  through strong competition regimes, Brunei ha s 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.  
3.97.  At present, competition issues are addresse d on a sector-by-sector basis and tackled by its 
respective regulator. Competition regulations exist in telecommunications, financial services, and 
energy, although in limited forms. For example, in telecoms, licensees' behaviour is regulated by 
AITI under the Telecommunications Order, and licensees are guided by their licence conditions, including a prohibition against anti-competitive behaviour. AITI is currently working towards establishing a competition code of practice that covers telecommunication and broadcasting 
(section 4.4.3).
95 
3.3.2.2  Consumer protection 3.98.  The Consumer Protection (Fair Trading) Order 2011 (S 64/11) entered into force on 
1 January 2012. Prior to 2012, Brunei had no specific legal provisions on consumer protection 
which was covered in several pieces of legislation.
96  
3.99.  The Consumer Protection (Fair Trading) Order 2011 (S 64/11) allows consumers to take 
unfair sales practices to civil courts. The Small Claims Tribunals are competent to hear complaints 
between consumers and suppliers arising from transactions not exceeding B$10,000. Since 2012, 
there have been six consumer complaints that were recommended by the Department of Economic Planning and Development (JPKE) to be brought forward to the Small Claims Tribunals as these 
complaints could not be resolved by JPKE through consultation and mediation. The decision to 
bring a case into the Small Claims Tribunal is entirely up to the consumer. In addition, when there are reasonable grounds to believe a supplier has engaged in an unfair practice, the legislation 
provides for JPKE to invite the supplier enter into a voluntary compliance agreement under which 
he volunteers to compensate the consumer. In any case, consumers' complaints must be filed with JPKE which will decide if they fall under the law. According to the authorities, JPKE usually 
recommends an aggrieved consumer to bring the case to the Small Claims Tribunals before going 
to the High Court. 
3.100.  Under the Consumer Protection (Fair Tradin g) (Cancellation of Contracts) Regulations 2011 
(S 65/11), contracts may be cancelled within five days by consumers.  
3.3.2.3  Price controls  
3.101.  Brunei continues to set retail prices fo r basic commodities and selected goods to keep 
affordable prices for consumers. Price controls apply to imports and domestically-produced goods. 
The Price Controller, under JPKE, is responsible for fixing maximum and minimum retail prices, and 
may also prohibit or restrict trade in price-controlled goods.
97  
3.102.  The number of goods subject to price cont rol 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 capped. 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, an d 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 
                                               
95 ASEAN Competition Policy and Law. Viewed at: http://www.aseancompetition.org/aegc/aegc-
members/brunei-darussalam ; and ASEAN (2013b).  
96 For details, see: http://aseanconsumer.org/misc/down loads/misc-listoflegislations.pdf . ASEAN 
Coordinating Committee on Consumer Protection (2008).  
97 Price Control Act (Chapter 142), Revised Edition 2002, as amended by S 88/12. 
98 MOF online information. Viewed at: http://www.mof.gov.bn/index.php/services-sss/rice-and-sugar . 
99 PowerPoint presentation by JPKE, "Briefing on Price Control Act Cap 142 (Amendment)". Viewed at: 
http://www.depd.gov.bn/projects/control/Price_Control_Act(Amendment)Order_2012updated.pdf , and JPKE 
online information. Viewed at: http://www.depd.go v.bn/control.html . 
100 Articles 7 and 8 of the Price Control Act (Chapter 142), Revised Edition 2002, as amended by 
S 88/12; and Price Control Act, Order made under Section 7(1) (S 94/12). WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  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. 
Table 3.12 Price-controlled goods, 2014 
Maximum price 
1. Asphalt  11. Gasoline (Premi um 97, Super 92 and Regular 85) 
2. Automotive gas oil (diesel)  12. Passenger mo tor vehicles 
3. Powdered infant milk 13. Plain flour 
4. Bitumen 14. Rice 
5. Bottled LPG 15. Ready-mix concrete  
6. Bricks (clay and concrete) 16. Reinforcement bar 
7. Cement 17. Sand 
8. Cooking oil (canola, corn , palm, 
vegetable, sunflower, and soya bean) 18. Stone (aggregate ¾) 
9. Dual purpose kerosene 19. Sugar (white, re fined, granulated, cane sugar, fine grain) 
10. Milk (condensed and evaporated)  
Minimum price 
1. Cigarettes and tobacco  
Source: Price Control (Maximum Prices and Charges) Order 2012 (S 91/12) and Price Control (Minimum 
Prices and Charges) Order 2012 (S 92/12).  
3.3.3  State trading, state-owne d enterprises, and privatization 
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.  
3.104.  Subsidized rice and sugar are imported and distributed through the Supply and State 
Stores Department (SSSD), under the Ministry of  Finance (MOF), to ensure adequate domestic 
supply.102 Rice is mainly imported from Thailand, in particular through the Brusiam Food Alliance 
Co., a joint-venture between MOF and a Thai rice miller.103 SSSD does not sell rice and sugar 
directly to consumers but to registered local vendors. SSSD imports and distributes four varieties of rice (Thai Hom Mali, Vietnamese fragrant, Thai white, and Thai glutinous) and white refined 
sugar. Local vendors that wish to import other varieties of rice and types of sugar must obtained 
an import permit from SSSD and an approval  permit from Customs (section 3.1.5.2).
104 
3.105.  Since Brunei's previous TPR, the public sector has continued to exert a direct influence on 
the economy, mainly through state-owned enterpri ses (SOEs). Most of these still operate under 
monopoly or hold exclusive rights in many sectors, including oil and gas (section 4.2.1.2), manufacturing (section 4.3), banking (section 4.4. 2.2), telecom (section 4.4.3), and air transport 
(section 4.4.4.1). In particular, the State partic ipates in the oil and gas sector mainly through 
Petroleum Brunei and British Shell Petroleum, in various manufacturing industries through Semaun Holdings, and in telecommunications via TelBru and Progresif Cellular Sdn Bhd (Table 3.13).  
Table 3.13 Main state-owned enterprises, 2014 
Sector SOE State share 
(%) 
Air transport Royal Brunei Airlines Majority 
Banking Baiduri Bank 
Bank Islam Brunei Darussalam Majority 
Majority 
Manufacturing Semaun Holdings 50 
Oil and gas (downstream) Brunei LNG 
Brunei Methanol Company 50 
25 
Oil and gas (marketing) Brunei Shell Marketing  50 
Oil and gas (midstream)  Brunei Gas Carriers 
Brunei Shell Tankers  80 
50 
                                               
101 In these cases, the Price Controller is  responsible for enforcing retail prices. 
102 MOF online information. Viewed at: http://www.mof.gov.bn/index.php/services-sss/rice-and-sugar ; 
and http://www.mof.gov.bn/ind ex.php/trading-division .  
103 MOF online information. Viewed at: http://www.mof.gov.bn/index.php/news/369-new-rice-supplier-
to-feed-bruneis-population .  
104 MOF online information. Viewed at: http://www.mof.gov.bn/index.php/services-sss/rice-and-sugar .  WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  Sector SOE State share 
(%) 
Oil and gas (upstream) Brunei National Petroleum (Petroleum BRUNEI) 
Brunei Shell Petroleum  100 
50 
Technical support services to 
governmental agencies Royal Brunei Technical Services  100 
Telecom (fixed-line operator) Telbru 100 
Telecom (mobile operator) Progresif Cellular Sdn Bhd  100 
Trade in agricultural products Br usiam Food Alliance Company .. 
Halal food and non-food products Brunei Halal 100 
.. Not available.  
Source: Information obtained by the WTO Secretariat.  
3.106.  In line with its National Vision 2035, Brunei seeks further participation of foreign investors 
to help achieve economic diversification. It has embarked in a Privatization Master Plan which is in the process to be completed.
105  
3.3.4  Government procurement106 
3.107.  Brunei is not a party to the WTO Agreement on Government Procurement.  3.108.  Government procurement is regulated by  the 1983 Financial Regulations 327-340; Ministry 
of Finance (MOF) Circular No. 3/2004 (6 October 2004); MOF Circular No. 2/2009 (25 July 2009); 
and MOF Circular No. 1/2014 (20 March 2014). MOF Circular No. 2/2009 was issued to standardize 
the tender fee charged to suppliers and review  of the performance bond/Banker’s Guarantee 
charged to awarded suppliers. MOF Circular No. 1/2014 was an update to the performance 
bond/Banker’s Guarantee rates charged to awarded suppliers. 
3.109.  Procurement procedures seek to maintain equity, integrity, and efficiency in the tendering 
process and ensure purchases are at the best value for money, including price, quality, delivery 
timelines, supplier's reliability, and after-sale se rvice. Procurement of goods, services, and works 
is carried out by ministries and departments. 
3.110.  Procurement methods are determined according to specific thresholds. Purchases of up to 
B$2,000 may be acquired off the shelf or directly from known suppliers. For procurement above 
B$2,000 and not exceeding B$50,000, ministries/dep artments must invite at least three qualified 
suppliers to submit written quotations. Tenderers/vendors who want to participate in quotation must at least have the same nature of business and/or registered with the relevant agency with 
the type of quotation being issued. 
3.111.  Procurement of goods, services, and works exceeding B$50,000 is made through open 
tenders. Tenders comprised between B$50,001 and B$500,000 are considered by the Mini Tender 
Board (MTB) in each ministry and tenders abov e B$500,000 by the State Tender Board (STB) in 
the Ministry of Finance. If no contract is awarde d under an open tender, a selective tender may be 
used upon approval by STB/MTB. Only contract ors identified as capable of supplying goods, 
services or works may participate in the selectiv e tender. Open tenders may also be waived upon 
STB/MTB approval in case supply of goods, services, and works is urgently needed or call for 
tenders is not feasible.  
3.112.  Only some tenders require suppliers to re gister with the relevant ministry/departments. 
The registration aims to ensure that companies participating in certain areas (e.g. construction, 
supply of medical products and ICT projects) are qu alified in terms of their financial capabilities, 
employees, manpower and equipment. Although a local partner is not mandatory, foreign 
enterprises are recommended to form a joint-venture with local partners to improve their chances 
of being awarded a contract as local partners may better liaise with the authorities and ease the registration process. 
                                               
105 APEC Competition Policy and Law Data base online information. Viewed at: 
http://www.apeccp.org.tw/doc/Brunei.html#Policy .  
106 This section is based on MOF State Tender Board online information. Viewed at: 
http://www.mof.gov.bn/index.php/gene ral-information-state-tender-board .  WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  3.113.  Tenders and quotations are announced at least two weeks prior to the closing date. They 
are published in Malay and/or English in the weekly Government's newspaper Pelita Brunei107, and 
may also be accessed on most of the governmental websites. Tenders may also be advertised in local and/or international newspapers. 
3.114.  Electronic submission of tender documents is not yet accepted; only hard and soft copies 
in CD-ROM are allowed. Proposals must be in English and prices in Brunei dollars. Tenders are open, recorded, and forwarded by STB or MTB to ministries/departments for evaluation based on, 
inter alia , budget, technical, financial, and commercial criteria. Recommendations made by the 
ministries/departments are subsequently consider ed by STB or MTB and endorsed by the Sultan 
(in his capacity of Minister of Finance) or the relevant minister. Brunei does not yet have a review body on government procurement, but suppliers' co mplaints on the decisions taken by STB or MTB 
may file with the relevant ministries/departments. The evaluation, recommendation, approval, and 
implementation process must not exceed three months from the closing date of a tender.
108  
3.115.  When procurement is supplied through a quotation, the relevant ministry/department 
evaluates the offers and makes recommendation to the Quotation Committee for approval. 
Quotation Committees are formed at the relevant ministry/department. Suppliers may file complaints on decisions taken by a Quotation Comm ittee with the relevant ministries/departments. 
3.116.  In addition, statutory bodies, i.e. BEDB or AITI, conduct their own procurement procedure. 
In July 2010, the Centre of Science and Techno logy Research and Development (Ministry of 
Defence) was established to administer military procurement.
109  
3.3.5  Intellectual property rights 
3.3.5.1  Overview 
3.117.  The main change to Brunei's IPR regime during the review period was the entry into force 
of a new patent legislation (section 3.3.5.2) an d the restructuration and transfer of industrial 
property administration from the Attorney Ge neral's Chambers (AGC) to the Brunei Economic 
Development Board (BEDB). The Patent Registry Office (PRO), created in 2012 under BEDB, took gradually over the registration process from AGC.
110 PRO was converted into the Brunei 
Intellectual Property Office (BruIPO) on 1 June 2013.111  
3.118.  Brunei acceded to the following IPR treaties during the review period (date of accession in 
parentheses): Paris Convention for the Protecti on of Industrial Property (17 February 2012); 
Budapest Treaty on the International Recognit ion of the Deposit of Microorganisms for the 
Purposes of Patent Procedure (24 July 2012); an d Hague Agreement Concerning the International 
Registration of Industrial Designs (24 December 2013). Accession to the Madrid Protocol for the protection of trademarks is foreseen; and acce ssion to the WIPO Copyright Treaty and WIPO 
Performances and Phonograms Treaty is under consideration.
112 Brunei's increased participation in 
international IP treaties is pursuant to ASEAN commitments for simplified and harmonized IP protection and registration in the ASEAN Economic Community.
113 In 2009, the ASEAN Patent 
                                               
107 Pelita Brunei online information. Viewed at: http://www.pelitabrunei.gov.bn/ .  
108 MOF State Tender Board online information. Viewed at: http://www.mof.gov.bn/index.php/tender-
process .  
109 USTR (2013b).  
110 The Registry of Patents was transferred from AGC to PRO in January 2012, followed by the Registry 
of Industrial Designs in October 2012 and the Registry of Trade Marks in June 2013. 
111 BruIPO online information. Viewed at: http://www.brunei-
patents.com.bn/index.php?option=com_k2&view=item&layout=item&id=6&Itemid=277. 
112 Brunei adhered to the Berne Convention in 2006. BruIPO online information. Viewed at: 
http://www.brunei-patents.com.bn/index.php?option=com_k2&view=item&layout=item&id=60&Itemid=279; and BEDB Press Release, 4 May 2013. Viewed at: http://www.bedb.com.bn/ne ws_readmore.php?id=284 . 
113 See ASEAN IPR Action Plan 2004-10 and the Work plan for Copyright and IPR Action Plan 2011-15. 
Viewed at: http://www.aseanip.org/ipportal/index.php?optio n=com_content&view=category&id=218&Itemid=653 . WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  Examination Cooperation (ASPEC) was established. It allows IP offices of ASEAN member States 
share search and examination reports.114  
3.3.5.2  Patents 3.119.  The Patents Order 2011 (S 57/11), supported by the Patents Rules 2012 (S 19/12)
115, 
entered into force on 1 January 2012. It established a national and independent patent system in 
Brunei and repealed the Inventions Act (Chapter 72) and the Emergency (Patents) Order 1999 (S 42/99). Under the Inventions Act (Chapter 72), patent protection was granted through 
re-registration of patents granted in Malaysia, Singapore, and the United Kingdom (including 
through the European Patent Office). Applications had to be filed within three years from the date the original patent was granted. Protection in Brunei was granted as long as the patent remained valid in the country of origin.
116 After the Patents Order 2011 (S 57/11) had entered into force, 
re-registration was still possible during a transition period.117  
3.120.  To claim protection under the Patents Order 2011 (S 57/11), patentable invention must be 
new118, involve an inventive step, and have an industrial applicability. Surgical, therapeutic, and 
diagnostic methods are excluded from patentability.119  
3.121.  The patenting process may take up to 4 years (Chart 3.3). Foreign applicants are 
recommended to file applications through an authorized patent agent with a local address in 
Brunei.120 Applicants may claim priority for applications filed earlier in signatory countries of the 
Paris Convention or in WTO Members.121 Since Brunei's accession to the Patent Cooperation Treaty 
(PCT), they may also file applications using the PCT route.  
3.122.  Brunei's patent system has three characteristics: (a) a first-to-file system, i.e. the first 
applicant to file an application has priority over others for the same invention; (b) a 
formality-based system, i.e. BruIPO does not conduct search and examination; and (c) a self-assessment system, i.e. applicants may re quest the certificate of grant although the 
examination report shows the invention does not fully meet the patentability criteria. Request for 
search and examination are processed by BruIPO  and based on the approach chosen by the 
applicant: (a) "local approach", i.e. BruIPO outsources local search and examination to 
examiners
122; (b) "foreign approach", i.e. BruIPO relies on search and examination reports issued 
by prescribed foreign patent offices123 for a corresponding application; and (c) "mixed approach", 
BruIPO relies on search reports issued by prescribed foreign patent offices for a corresponding application and requests the conduct of an examination.
124 BruIPO processed 19 requests for 
search and examination over 2012-13125; 95% was conducted under the mixed approach and 5% 
was under the local approach.  
                                               
114 Brunei does not participate in ASEPEC (March 2014). For more information on ASPEC, see ASPEC 
Notice Procedures, 30 April 2012. Viewed at: http://www.bruipo.com.bn/files/ASPEC_Notice_Procedures_new_-_30Apr2012.pdf. 
115 The Patent Rules 2012 were amended in 2013 (S 11/13). 
116 For further information, see WTO document WT/TPR/S/196/Rev.1, 4 June 2008; and 
Mirandah, G. (2012).  
117 For transitional provisions, see Section 115 of the Patents Order 2011 (S 57/11). 
118 If an invention is disclosed, the novelty criterion continues to apply provided application is filed 
within 12 months of disclosure. 
119 However, products used therein may claim pate nt protection. Part III of the Patents Order 2011 
(S 57/11). 
120 BruIPO Factsheet on Patents. Viewed at: http://www.brunei-patents.com.bn/files/updated_BRUIPO_-
_Patent_leaflet.pdf; and European Commission (2013).  
121 Section 17 of the Patents Order 2011 (S 57/11). 
122 Danish, Austrian, and Hungarian patent offices. 
123 Australia; Canada; European Pate nt Office; Japan; Korea (Rep. of ); New Zealand; United Kingdom; 
and United States. 
124 BruIPO News, "Understanding the Patent System", 9 May 2012. Viewed at: http://www.brunei-
patents.com.bn/index.php?option=com_k2&view=item &id=46:understanding-the-patent-system&Itemid=275; 
and PowerPoint presentations by BEDB, "Effective Utiliz ation of Patent Classification Systems", December 2013. 
Viewed at: http://www.wipo.int/edocs/mdocs/aspac/en/wipo_reg_ip_tyo_13/wipo_reg_ip_tyo_13_t5.pdf ; and 
"Patent Registry Office: An Overview". Viewed at: 
http://www.wipo.int/edocs/mdocs/aspac/en/wipo_asean_ip_tyo_12/wipo_asean_ip_tyo_12_refbrunei.pdf .  
125 PowerPoint presentation by BEDB, "IP Data Availabi lity and Use of IP Data by IP Offices: National 
Experiences", December 2013. Viewed at: http://www.wipo.int/edocs/mdocs/aspac/en/wipo_ip_reg_mnl_13/wipo_ip_reg_mnl_13_t12c.pdf . WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  Chart 3.3 Patenting process 
 
a Name of the applicant, application number, filing date, invention title, and priority date (if any).  
Source: WTO Secretariat with information provided by the authorities.  
3.123.  Upon grant, the term of protection is 20 ye ars from the date of filing (or priority date if 
claimed).126 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.127 
Protection for re-registration granted during the transition period, is 20 years from the date of 
filing of the original patent.128 
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.129 Rights over a patent are lost if the patent is not renewed. 
However, restoration of lapsed patents due to unpaid fees may be possible.130 Effective 
1 January 2012, all re-registration patents are lia ble to pay the annual renewal fee upon evidence 
that the foreign patent has not been revoked is provided.131  
3.125.  Local applicants intending to file a pa tent abroad must be authorized by BruIPO.132 
3.126.  The use of patents may be authorized under non-exclusive compulsory licences in return 
for payment of a fee to the patent owner.133 Compulsory licences may be granted by the High 
Court if a market for the patented invention is not being supplied or is not being supplied in 
reasonable terms in Brunei. 
3.127.  While there are no specific provisions contained in the Patents Order 2011, according to 
the authorities parallel imports are allowed.  
                                               
126 Section 35 of the Patents Order 2011 (S 57/11). 
127 Section 36 of the Patents Order 2011 (S 57/11). See also Section 54 of the Patent Rule (S 19/12) as 
amended by S 11/13. 
128 Section 115 of the Patents Order 2011 (S 57/11); and Patent Journal  Issue No. 2014/02A, 
28 February 2014. 
129 For fees, see BruIPO on line information. Viewed  at: http://www.brunei-
patents.com.bn/index.php?option=com_k2&view=item&layout=item&id=19&Itemid=306 (First Schedule of the Patents Rules 2012 (S 19/12) as amended by S 11/13). 
130 Section 40 of the Patents Order 2011 (S 57/11). 
131 BruIPO Revised Practice Note 2012/01. Viewed at: 
http://www.bruneipatents.com.bn/files/Patents%20Rules/Patent_Practice_Note_2012_01_Rev_.pdf. 
132 Section 33(1) of the Patents Order. 
133 Part XI of the Patents Order 2011 (S 57/11). Application filed with BruIPO 
Deposited in the Patent Deposit Box or  faxed. No e-filing system yet  
Date of filing issued  
Bibliographic information of the applicationa published in the Patents Journal A 
Preliminary examination conducted by BruIPO 
Application published in the Patents Journal B once it hits 18 months and meet s formal requirements  
Search and examination 
Upon request by the applicant. Not conducted by Br uIPO. Three approaches: local, foreign, or mixed  
Request for the Certificate of Grant by the applicant  
Certificate of Grant issued by BruIPO 
Details of the patent are published WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  3.128.  Brunei has no specific legal provisions to protect undisclosed information. However, 
provisions exist under the common law. Civil actions may be brought against unauthorized disclosure and unfair commercial use of undisclosed information.
134 
3.129.  In line with its National Vision 2035, which focuses on R&D and innovation as an engine for 
economic development and diversification (section 1.3), Brunei is encouraging patent registration 
by locals. This seems to have discouraged pate nt registration by foreigners (Table 3.14).  
Table 3.14 Patent indicators, 2008-13 
 2008 2009  2010  2011  2012 2013  
Application  75  43 40 53 33 62 
Locals 0 0 0 0 20 27 
Foreigners 75 43  40  53 11 35 
PCT n.a. n.a. n.a. n.a. 2 0 
Registration  75 43 40 53 33 62 
n.a. Not applicable. 
Source: PowerPoint presentation by BEDB, "IP Data Availa bility and Use of IP Data by IP Offices: National 
Experiences", December 2013. Viewed at: http://www.wipo.int/edocs/mdocs/aspac/en/wipo_ip_reg_mnl_13/wipo_ip_reg_mnl_13_t12c.pdf .  
3.3.5.3  Trademarks, industrial designs and industrial layouts 
3.130.  There was no change to the legislation on  trademarks, industrial designs, and industrial 
layouts of integrated circuits (layout designs) during the review period (Table 3.15).  
Table 3.15 Overview of trademarks, indu strial designs, and layout designs 
 Trade marks Industrial designsa Layout designs 
 Trade Marks Act (Chapter 98, 
Revised Edition 2000) 
Trade Marks Rules 2000 
(S 27/00) Emergency (Industrial Designs) 
Order 1999 (S 7/00) 
Industrial Designs Rules 
(S 23/00) Emergency (Layout Designs) 
Order 1999 (S 8/00) Criteria Be a sign or symbol visually 
perceptible, capable of graphic 
representation, and capable of 
distinguishing g oods/services of 
one trader from another Be new 
Have industrial applicability Be original Procedure File application with BruIPO 
Formal & substantive 
examination (BruIPO) 
2 months to oppose an 
application 
Priority claimb File application with BruIPO 
Formal examination only 
(BruIPO); no substantive 
examination conducted 
Priority claimb Protection is automatic Duration 10 years from the date of 
registration (or priority date if 
claimed), renewable for 10 years 5 years from filing date of 
application (or priority date if 
claimed), renewable for 10 years 10 years from the date of 
commercial exploitation if 
commercially exploited within 
5 years of creation; 
15 years in all other cases 
a Does not apply to computer programs which ar e covered by copyright, and layout designs.  
b Priority may be claimed for applications filed earlie r in signatory countries of the Paris Convention or 
in WTO Members.  
Source: WTO Secretariat on the basis of in formation provided by  the authorities.  
3.131.  The Trade Marks Act (Chapter 98) protects  trade, service, collective, and certification 
marks. If a mark is not used within five years of registration, third parties may request registration to be cancelled.
135 Brunei applies the international trade mark classes outlined in the Nice 
Agreement 7th Edition of the International Classification of Goods and Services; it has not yet 
adopted the latest classification. The authorities in dicated that foreigners represented 95% of total 
                                               
134 WTO documents IP/Q/BRN/1, IP/Q2/BRN/1, IP/Q 3/BRN/1, and IP/Q4/BRN/1, 13 October 2003.  
135 Section 47(1) of the Trade Marks Act (Chapter 98). WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  registrations (3,257) over the 2008-13 period; they  must have a local address for the purpose of 
registration.136  
3.132.  The Act also provides for the registration of geographical indications as collective or 
certification marks.137 However, the owner of such collective or certification mark cannot prohibit 
the honest (industrial and commercial) use of geographical indications.138 Brunei is exploring the 
possibility of introducing a more comprehensive geographical indication system.  
3.133.  An industrial design is eligible for registration if it has been applied by industrial process to 
more than 50 articles (Table 3.15).139 According to the authorities, 111 applications for industrial 
designs were registered over the 2008-13 period; foreigners accounted for 92% of total registration. The low level of registrations by locals is explained by a lack of information on industrial design protection.
140 Since 2013, applicants have been able to file international 
applications for industrial designs. 
3.134.  Brunei is finalizing its plant variety protection legislation and preparing for accession to the 
International Union for the Protection of New Varieties of Plants (UPOV). It was granted observer 
status in UPOV in 2012.141 The Patent Order 2011 provides for a system of plant protection. 
3.3.5.4  Copyright and related rights 3.135.  An overview of the main legal provisions governing the protection of copyright and related 
rights is in Table 3.16. The copyright legislat ion was amended in 2013 to enhance enforcement 
provisions (section 3.3.5.5). Copyright legislation is reviewed by the Attorney General's Chambers (AGC). 
Table 3.16 Overview of copyright and related rights 
Legislation Emergency (Copyright) Order 1999 (S 14/00), as amended by S 92/13a 
WIPO (in 
force) Berne Convention (30.08.2006)  
Registration  Protection is automatic  
Duration of 
copyright   Literaryb, dramatic, musical, and artistic works: author's life + 50 years 
 Computer-generated work: 50 years from the date the work was made 
 Sound recordings and films: 50 years from th e date the work was made; or if it was 
released earlier, 50 years from the date of release 
 Broadcasts and cable progra mmes: 50 years from the date they were broadcast or 
transmitted  
 Typographical arrangement of published edit ion: 25 years from the year it was first 
published 
Related rights   Performers' rights and persons with record ing rights in relation to a performance: 
50 years from the year the fi rst performance took place 
a Further amendments to the Copyright Order are expected with stricter fines for infringement. 
b Includes computer programs and databases.  
Source: WTO Secretariat with information provided by the authorities.  
3.3.5.5  Enforcement 
3.136.  During the review period, Brunei made concerted efforts to curb copyright piracy, in 
particular with respect to the legal framework. The copyright legislation was amended in 2013 to 
                                               
136 BEDB online information. Viewed at: http://www.bedb.com.bn/documents/misc/tm_info.pdf . 
137 First and Second Schedule of the Trade Mark Act (Chapter 98), Revised Edition 2000. 
138 First and Second Schedules of the Trade Marks Act (Chapter 98), Revised Edition 2000. 
139 Industrial Designs Rule s (S 23/00), Rule 5. 
140 BruIPO News, 3 October 2012. Viewed at: 
http://www.bruipo.com.bn/index.php?option=com_k2&view=item&id=62:few-locals-seek-protection-for-
designs&Itemid=275. 
141 BruIPO online information. Viewed at: http://www.brunei-
patents.com.bn/index.php?option=com_k2&view=item&layout=item&id=60&Itemid=279; UPOV Final Report 
on 6th East Asia PVP Forum Meeting, 3 July 2013. Viewed at: 
http://eapvp.org/report/items/docs/6_Final %20Report%206th%20EAPVP %20Forum%20Meeting.pdf ; and 
UPOV document CC/86/7, 25 September 2013. WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  enhance enforcement provisions.142 Fines and prison sentences were substantially increased 
from B$5,000 to B$20,000 and from two years to five years, respectively, the Royal Brunei Police Force (RBPF) is now allowed to enter premises, stop and search vehicles without warrants, and access computerized data.
143 These efforts led to Brunei's removal from the USTR Special 
301 Watch List in 2013.144 
3.137.  Successive anti-piracy campaigns led to police raids in the retail market and confiscation of 
pirated music, movies, and software entertainment. For the first time, a local manufacturer of 
pirated copyright was sentenced to prison.145 Local and foreign artists may now exercise their 
rights through the new Brunei Authors and Composers Association (BeAT) established in 2011 to collect royalties. Since 2013, the Customs Law Enforcement Division is present at the border to enhance control and monitoring on the importation and exportation of prohibited, restricted and 
controlled goods, including IPRs.
146  
3.138.  In March 2014, BruIPO launched a campaign to raise IPR protection awareness among the 
public.147 However, copyright piracy remains a problem with some shops selling pirated works, 
including counterfeit works originating in neighbouring countries. Illegal downloading from the 
internet is reportedly also growing fast in Brunei.148  
3.139.  The agencies responsible for IPR enforc ement are the RBPF and the Royal Customs and 
Excise Department. Brunei's IPR legislation provides for civil remedies and criminal sanctions 
against IPR infringement. Prosecution of offences is initiated by the Criminal Justice Division of the Attorney General's Chambers upon complaints filed by the right holders.
149 The Intermediate Court 
and the High Court are competent to hear civ il proceedings and the Magistrate's Court, the 
Intermediate Court, and the High Court to hear criminal proceedings.150  
3.140.  On suspicion of counterfeit and pirated imports, trademark and copyright owners may give 
written notice to Customs requesting imports to be seized at the border. The written notice must 
detail the infringing works or goods and the expected shipment into Brunei. Imports are seized for 
a maximum of ten working days; suspected counterfeit works or goods are treated as prohibited imports. During the detention period, the owner determines whether imports are counterfeit and 
decides on legal proceedings. Suspected counterfeit works or goods remain within Customs 
premises pending the court's decision. If legal proceedings do not commence within the ten-day period, imports are released. In addition, if Customs is aware of imports of suspected counterfeit works or goods, it may advise the righ t holder (if known) to file a notice.
151 
                                               
142 Emergency (Copyright) Order 1999 (S 14/99), as amended by S 92/13. 
143 Brunei Times , 19 December 2013. Viewed at: http://www.bt.com.bn/2013/12/19/stiff-fine-
copyright-violation . 
144 Brunei was placed on the List on 2009. USTR (2013a).  
145 USTR (2012); Brunei Times , 3 June 2013. Viewed at: http://www.bt.com.bn/2013/06/03/brunei-
cracking-down-copyright-infringement ; and  Brunei Times , 26 May 2012. Viewed at: 
http://www.bt.com.bn/news-national/2012/05/26/no-access-dvds-many-eye-online-piracy . 
146 At the border, any uncustomed good s (prohibited/restricted/controlle d) will be seized and issued 
notice of seizure for action to be taken. 
147 BEDB Press Release, 15 March 2014. Viewed at: 
http://www.bedb.com.bn/news_readmore.php?id=317 . 
148 U.S. Department of State on line information. Viewed at: 
http://www.state.gov/e/eb/rls/othr/ics/2013/204609.htm ; and IIPA (2012).  
149 ASEAN IP Portal online information. Viewed at: 
http://www.aseanip.org/ipportal/index.php?option=co m_content&view=category&layout=blog&id=83&Itemid=
448. 
150 WTO document IP/N/6/BRN/1, 27 November 2001. 
151 Trade Marks Act (Chapter 98), Section 82; Emergency (Copyright) Order 1999 (S 14/99), 
Section 109; PM Office and Attorney General's Chamber (2011), The Economic Contributi on of Copyright-Based 
Industries in Brunei Darussalam , August. Viewed at: 
http://www.wipo.int/expo rt/sites/www/copyright/en /performance/pdf/econ_ contribution_cr_bn.pdf .  WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  4  TRADE POLICIES BY SECTOR 
4.1  Agriculture, Forestry and Fisheries 4.1.1  Agriculture 4.1.1.1  Main features and recent developments 
4.1.  Agriculture's contribution to Brunei's economy remains marginal; along with fisheries and 
forestry, it accounts for about 1% of GDP. Area suitable for agriculture in Brunei is limited due to the large proportion of land covered by rainforest (section 4.1.3). Some 7,193 ha are used for 
agricultural purposes, 61.6% for crops and 38.4% for livestock. The sector employed 
13,887 persons in 2013, with crops as the largest employer.
1 Brunei imports the bulk of its food 
requirements, except for some livestock products, as domestic production is not sufficient to meet local demand. The share of food imports in total merchandise imports went from 12.3% in 2008 to 
13.3% in 2013 (Table A1.1). 
4.2.  Brunei's agricultural production increased from B$225.4 million in 2008 to B$291.7 million in 
2013 (Table 4.1).  Livestock contributed 53.8% to total agricultural output in 2013, compared with 
58.4% in 2008. Crops production (including flowers, fruits, rice, and vegetables) accounted for 
16.6% of total gross output value in 2013 (down from 18.3% in 2008).  
4.3.  The agri-food processing industry increased its participation in agricultural production from 
23.3% in 2008 to 29.6% in 2013, supported by gr owing domestic demand for halal food and the 
authorities' efforts to market the "Brunei Halal brand" at regional and international level.
2 The 
involvement of local SMEs in the agri-food indust ry is significant, with 376 entrepreneurs engaged 
and 1,740 persons employed in 2013.3 Agri-food is one of the industri es identified by Brunei that 
may rise value-added in the economy, have potential for exports, and create jobs (section 1.3).  
Table 4.1 Agricultural production, 2008-13 
(B$ million) 
 2008  2009  2010  2011  2012 2013  
Crops 41.4  45.0 42.7 43.9 59.3 48.5  
Flowers 2.1 1.5 1.5 1.6 1.8 2.5 
Fruit 5.7 9.4 5.8 4.6 20.0 8.9 
Rice 2.6 2.7 3.4 4.9 5.7 4.0 
Vegetable 29.5 30.1 30.4 31.3 29.7 30.4 
Other crops 1.5 1.4 1.7 1.4 2.0 2.7 
Livestock 131.6  130.1  132.0  139.9  159.4 157.0  
Beef 0.3 0.3 0.1 0.3 1.0 1.0 
Broiler chicken 86.7 84.6 85.3 94.1 107.3 104.4 
Eggs  21.2 22.4 23.3 23.0 24.7 25.9 
Goat 0.0 0.0 0.0 0.1 0.1 0.2 
Dairy milk 0.0 0.0 0.0 0.0 0.0 0.0 
Day old chick 15.3 15.5 16.0 15.5 18.5 17.8 
Fertilized eggs 8.0 7.4 7.3 7.0 7.8 7.0 
Other livestock 0.0 0.0 0.0 0.0 0.0 0.6 
Agri-food processing 52.5 53.2 53.8 57.2 62.8 86.2 
Total  225.4  228.3  228.4  241.0  281.5 291.7  
Source: Data provided by Agribu siness Services Unit, Department of Agriculture and Agrifood.  
4.4.  No FDI in agriculture was registered during 2008-13. Foreign investment in primary sectors is 
capped at 70% (section 2.3.3.1). 
                                               
1 Data provided by Agribusiness Services Unit, Department of Agriculture and Agrifood (DOAA). 
2 MIPR online information. Viewed at: 
http://www.industry.gov.bn/index.php?optio n=com_content&view=article&id=81&Itemid=102 ; and Oxford 
Business Group online in formation. Viewed at: 
http://www.oxfordbusinessgroup.com/economic_upda tes/adding-value-agricul ture-brunei-darussalam .  
3 In 2012, the Small Entrepreneurs Food Incubator (SEFI) centre was established to provide basic 
facilities for the entrepre neurs on bakery production. The ongoin g monitoring program on issues like 
processing, food safety and quality has been given emphasis through the setting up of food development 
centre in line with ISO 17025.  WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  4.1.1.2  Agricultural policy  
4.5.  The Department of Agriculture and Agrif ood (DOAA), under the Ministry of Industry and 
Primary Resources (MIPR), is responsible for ag ricultural development and food production. 
Brunei's key agricultural policy objective are ensuri ng food security and achieving self-sufficiency 
by increasing local production of crops (notably rice), livestock and agri-food. DOAA aims to 
promote a market-driven sustainable and competitive agribusin ess focusing, inter alia , on halal and 
food products with more value-added, high quality and safety.  
4.6.  Brunei has reached nearly full self-sufficiency in some livestock products, notably broiler 
chicken and egg production (Table 4.2). This has been possible largely because of the involvement 
of the private sector. Some six large-scale companies account for 65% and 90%, respectively, of 
total production of broiler chicken and eggs. Despite a recent increase in local production of beef and goat meat (Table 4.1), Brunei is still a major importer of these products.  
Table 4.2 Agricultural self-sufficiency, 2008-13  
(%) 
 2008  2009  2010  2011  2012 2013  
Livestock  
Broiler chicken 99.1 98.8 98.9 99.2 96.8 97.1 
Beef (buffalo and cattle) 0.8 0.9 0.3 0.7 2.4 1.7 
Egg 99.6 99.1 99.9 99.3 97.6 96.7 
Goat  21.0 3.5 8.1 42.4 50.6 37.0 
Crops  
Fruit 19.5 23.4 17.8 15.4 39.2 21.0 
Rice 2.8 2.8 3.3 4.4 5.1 3.6 
Vegetable 65.6 62.3 62.6 62.8 62.2 59.3 
Source: Data provided by Agribu siness Services Unit, Department of Agriculture and Agrifood.  
4.7.  Brunei's self-sufficiency in vegetables decreased from 65.6% in 2008 to 59.3% in 2013 
(Table 4.2). However, the local leafy vegetable production has allowed 90% self-sufficiency in 
recent years. The outbreak of pests and diseases in 2013 reduced the domestic production of fruits 
and rice which significantly affected se lf-sufficiency as compared to 2012.  
4.8.  In 2009, the "National Rice Production Towards Self-Sufficiency in Brunei Darussalam 
Programme" was launched. Local rice production almost doubled during the review period 
(Table 4.1). Brunei faces various constraints in ri ce production areas, such as unavailability of 
suitable land, inadequate irrigation and drainage infrastructures, insufficient supply of water due to lower water capacity in the main dam, limited us age of high yielding varieties, and lack of 
expertise in certain fields.  
4.9.  Steps are being taken by DOAA to increase rice yield, expand areas under rice cultivation, 
while an irrigation project that involves about 1,000  ha of rice production area in the Brunei Muara 
district is to be completed in 2015.
4 In addition, DOAA recently launched a new high technology 
rice mill that will increase production, provide fl atbed dryers to farmers, and built proper rice 
storages and packaging.5 Moreover, the National Rice Processing Centre Master Plan is being 
developed in order to achieve the 60% self-sufficiency target set by 2035. 
4.10.  The involvement of private companies is expe cted to further boost rice production in Brunei 
through a more efficient use of resources, an d better farm management. Private companies are 
being encouraged to support smallholders as serv ice providers in terms of farm mechanization and 
transportation (e.g. in land preparation, transplanting or harvesting). 
                                               
4 R&D activities have also been enhanced to speed up the process of developi ng new rice varieties to 
increase crop productivity with minimal risks of pests and diseases outbreaks. The Rice Farmers Field School 
was established to strengthen capacity building and fo ster rice farm management in all four districts. 
5 This mill can process 3.5 tonnes per hour and allows  supply of high quality rice to the local market. WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  4.11.  At the regional level, ASEAN has also take n initiatives to improve food security. The ASEAN 
Plus Three6 Emergency Rice Reserve Agreement was signed in 2011 to ensure sufficient stocks of 
rice in anticipation of unforeseen circumstances. Brunei contributes 3,000 tonnes to the stock.7 
4.12.  Agri-food has been identified as one of Brunei's strategic industries to promote value-added, 
exports, and jobs in the economy (section 2.2). 
4.13.  MFN and preferential tariffs on agricultur e (WTO definition) are zero (Tables 3.2 and 3.3). 
Specific import duties apply to 8 coffee lines and 8 tea lines.8 The bound average tariff for 
agriculture is 23.1% which allows scope for an increase of the applied rates of agricultural 
products within their bindings (section 3.1.4.2).  
4.14.  Some agricultural products, e.g. eggs, salt, and sugar, are subject to import and/or export 
restrictions (sections 3.1.5 and 3.2.3). In addition , imports of beef and poultry are subject to Halal 
requirements and may be imported only from approved abattoirs (section 3.1.8). 
4.15.  For some agricultural products (e.g. cooking oil, plain flour, milk, rice, and sugar) maximum 
retail prices are set by the Price Controller (section 3.3.2.3).  
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).9 However, Brunei has yet 
to make AMS notifications to the WTO.  
4.17.  Rice and sugar are imported mainly by the Supply and State Stores Department (SSSD), 
under the Ministry of Finance, and sold to SSSD  registered suppliers. However, SSSD does not 
have exclusive rights as registered suppliers may import rice and sugar other than those imported by SSSD, subject to an import permit from SSSD and an approval permit from Customs 
(section 3.1.5).
10 Most rice is however imported by SSSD which has signed contracts with 
suppliers from Thailand, Viet Nam and other neighbouring countries to diversify domestic supply hence ensuring stocks to satisfy local consumption.  
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.
11 
To apply to SIPA, applicants must fill in the ince ntive register form with DOAA. In addition, one of 
SIPA component is the Paddy Guarantee Price Purc hasing 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 subsidized (Table 4.3).  
                                               
6 ASEAN member States, China, Japa n, and the Republic of Korea. 
7 APTERR online inform ation. Viewed at: http://www.apterr.org/ . 
8 The authorities provided the ad valorem  equivalents for 15 out of these 16 lines. 
9 WTO document WT/TPR/M/196/Add.1, 10 April 2008. 
10 SSSD online information. Viewed at: http://www.mof.gov.bn/index.php/services-sss/rice-and-sugar ; 
and WTO document WT/TPR/M/196/Add.1, 10 April 2008. 
11 Prices of inputs, e.g. fertilizers, pesticides, and herbicides may be viewed at: 
http://www.agriculture.gov.bn/ . 
12 WTO document WT/TPR/M/196/Add.1, 10 April 2008. 
13 Oxford Business Group (2009). WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  Table 4.3 Prices of rice and sugar imported by SSSD 
(B$/10 kg) 
 Wholesale 
price Wholesale price  
to registered SSSD 
suppliers Retail  
price 
Thai Hom Mali rice  57.50 11.50 12.50 
Vietnamese fragrant rice 57.50 11.50 12.50 
Thai white rice  38.50 7.70 8.50 
Thai glutinous rice  35.50 7.10 7.60 
Refined white sugar  57.20 11.44 12.50 
Source: MOF online information. Viewed at: http://www.mof.gov.bn/index.php/services-sss/rice-and-sugar .  
4.1.2  Fisheries 
4.19.  The Department of Fisheries (DoF), under the MIPR, is responsible for managing and 
administering fishery resources and fishing activities in Brunei's exclusive economic zone. Fisheries 
are governed by the Fisheries Order 2009 (S 25/09)14, which came into force in 2009 and repealed 
the Fisheries Act (Chapter 61).15 Subsidiary legislation enacted under the Fisheries Act has 
remained in force, including the Fisheries Regulations.16  
4.20.  Under the Fisheries Order 2009, licences are issued to local fishing boats and commercial 
fishing vessels authorized to fish in Brunei's waters under a joint-venture arrangement. There are three types of fishing licences: individual small-sca le licences issued by DoF and small-scale fishing 
licences and commercial fishing licences approved by MIPR and issued by DoF.
17 Licences for 
foreign fishing boats must be applied for by a local agent; a security deposit may be required to cover potential fines or claims resulting from the activities carried out by the foreign fishing boat.
18 
In 2013, there were 2,520 fishing boats, including 45 commercial boats.19 T o  d a t e ,  n o  f o r e i g n  
fishing vessels have been registered. The registration of fishing boats and commercial fishing vessels is made by the Marine Department (see below).
20 
4.21.  Misuse of fishing licences and small-scale fishermen without licences are reported to be 
among the most common problems in Brunei's waters. To address these issues, DoF has 
strengthened the surveillance programme and enha nced awareness of the importance of fishing 
licences among fishermen.21 Moreover, Brunei's "Action Plan To Prevent, Deter and Eliminate 
Illegal, Unreported and Unregulated (IUU) Fishing" was launched in 2011. Its main objectives are 
in line with those of the Regional Action Plan to  Combat IUU Fishing: (i) to enhance and strengthen 
the overall level of fisheries management in Brunei’s waters; (ii) to sustain fisheries resources and 
the marine environment; and (iii) to optimise the benefit of adopting responsible fishing practices. 
IUU fishing is estimated to cost Brunei over B$19 million annually. 
4.22.  During the review period, registration for fishing boats was introduced. The Merchant 
Shipping (Registration of Fishing Vessels and Pleasure Craft) Regulations 2011 (S 52/11) came 
into force in April 2012 and repealed the Merc hant Shipping (Harbour and Pleasure Craft) 
Regulations 1986. The registration process was introduced to manage fishing boats as part of Brunei's efforts towards safety of vessels and security in Brunei's waters, including combating IUU 
fishing. The 2011 Regulations made fishing boat registration with the Marine Department 
mandatory prior to applying for a fishing licence. In addition, fishing gears must be licensed by DoF before registration of fishing boats is processed.
22 Full implementation of the registration 
process may take time as capacity of the fishing community increases.  
                                               
14 As amended by S 81/10; no subs tantial changes were introduced. 
15 Under the Fisheries Order 2009, DoF has, inter alia , more enforcement powers through a wider range 
of officers (including now from the Na vy and Air Force), as well as the possi bility to enter and inspect premises 
and vehicles without a warrant. 
16 The Fisheries Regulations are contained in Chapter 61. For a complete list of subsidiary legislation, 
see AGC online information. Viewed at: http://www.agc.gov.bn/ . 
17 For documentation requirements, see Southeas t Asian Fisheries Development Center (2011).  
18 Part VII of the Order. 
19 Data provided by the Department of Fisheries (DoF). 
20 Southeast Asian Fisheries Development Center (2012).  
21 Southeast Asian Fisheries Development Center (2011).  
22 See Section 13 of the Fisheries Order 2009 (S 25/09). WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  4.23.  Brunei has no shipyard capable of buildi ng fishing boats exceeding 24 meters. These are 
imported subject to an import permit valid for a three-month period. The fishing boat must be 
brought into Brunei before registration may start.23 
4.24.  Fisheries' limits are divided into four zones indicated by a demarcation line based on depth 
and distance parallel from the shoreline: from 0 to 3 nautical miles (nm) seaward for 
Zone 1; 3.1-20 nm for Zone 2; 20.1-45 nm for Zone 3; and 45.1 nm to 200 nm for Zone 4. A moratorium on small-scale fishing in Zones 1 was implemented in January 2008 to ease the fishing 
pressure due to overfishing, and to protect the nur sery and breeding grounds of fishes as well as 
the coral reef areas. Commercial fishing, such as trawling, purse seining and long lining are banned within Zone 1. 
4.25.  In 2014, Marine Protected Areas (MPAs) were established near Brunei's coastlines limiting or 
possibly banning fishing activities in such areas to ensure biodiversity conservation and protection 
of Brunei's marine life, including coral reefs and associated ecosystems, and the replenishment of 
depleted fish stocks. Brunei also aims to support sustainable shallow shelf demersal fisheries 
through protection of spawning of commercial species and export of larvae of those species. 
Brunei's reefs already show early warning signs of reef degradation, such as depressed populations of large predatory fish such as sharks.  
4.26.  On 8 June 2013, Brunei imposed a ban on the catch and landing of all shark species from its 
waters, and their sales in the domestic market. Br unei's ban on the importation and trade of shark 
products has been in place since August 2012 on food security and environmental considerations. 
4.27.  Fish processing establishments and fish culture farms must also be licensed.
24 Only licensed 
fishing boats may berth in Brunei's fish landing complexes (Muara Fish Landing Complex and Kuala 
Belait Fisheries Centre). In addition, vehicles entering the complexes must be authorized.25 
4.28.  Capture fisheries led by commercial fisheries accounts for nearly 80% of Brunei's total 
fishery production over the review period (Table 4.4). Brunei seeks to develop capture fisheries, in 
particular in Zones 3 and 4 where exploitation levels are untapped. Basic infrastructures for landing the fish, cold storage, fish-sorting and downstream processing areas are some of the 
facilities provided to promote good  fish handling and food safety.  
Table 4.4 Fisheries production, 2008-13 
(Tonnes) 
 2008 2009  2010  2011  2012 2013  
Capture fisheries 
Commercial fisheries (%) 15,576.3 
78.4 16,797.2 
93.1 15,329.2 
91.3 13,506.7 
73.1 13,625.8 
71.1 14,320.0 
78.8 
Aquaculture 
Cultured shrimps (%)  566.4 
77.4 460.6 
76.9 423.8 
69.2 301.8 
52.0 556.3 
70.4 606.0 
75.3 
Fish processing industry 822.6 599.1 564.1 1,249.9 2,031.1 3,326.0 
Total 16,965.3 17,856.9  16,317.1  15,058.4  16,213.2 18,252.0  
Source: Department of Economic Planning and Development (various issues), Brunei Darussalam Key 
Indicators , Bandar Seri Bagawan; and data pr ovided by the Brunei authorities. 
4.29.  Brunei's aquaculture production is relatively small and dominated by cultured shrimps 
(Table 4.4).26 Nonetheless, Brunei aims to make aquaculture the main component of its fisheries 
industry by 2023 with an estimated value of B$200 million. To attract more local and foreign investment in aquaculture, Brunei is providing sites with basic infrastructure (e.g. access roads, 
electricity, sea water supply and potable water, telephone lines) to reduce investors' costs.  
                                               
23 Southeast Asian Fisheries Development Center, "N ecessary Information (Min imum Requirements) for 
Boat Registration, 15 April 2014". Viewed at: http://www.seafdec.or.th/iuu/ index.php/publications-
reports?view=docman ; and Southeast Asian Fisheries Development Center (2012).  
24 Fisheries (Fish Processing Establishments) Regu lations 2002 (S 28/02) as amended by S 35/04; and 
Fisheries (Fish Culture Farms) Regulations 2002 (S 30/02). 
25 Fisheries (Fish Landing Complexes) Regulations 2002 (S 31/02). 
26 Major export markets for Brunei's frozen cultured shrimps are China, Japan, Republic of Korea and 
the United States. WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  4.30.  Brunei is taking steps to produce high quality shrimps for exports through high technology 
and integrated farming. Recently, Brunei started exporting Specific Pathogen Free (SPF) shrimp to 
China and Malaysia. In addition, it has converted into an aquaculture R&D centre and has been successful in commercializing a disease-free black tiger prawn.
27 Fish processing production mainly 
is sold on the domestic market.28 DoF has also established the Aquatic Animal Health Service 
Centre, a state of the art laboratory for disease surveillance, and will introduce Brunei Good Aquaculture Practice (Brunei GAP) by 2015 to ma ximize aquaculture production and ensure that 
cultured products comply with international standards.
29 
4.31.  Production from the fish processing industry went from 823 tonnes in 2008 to 3,326 tonnes 
in 2013 (Table 4.4), due to a significant increase in frozen shrimp and fish, as well as new products such as Surimi which is now exported by large-scale firms. 
4.32.  Fisheries activities are eligible to receive loans and other support, including tax exemptions 
(section 3.2.4.2), the Export Refinancing Scheme (section 3.2.5), and the SME Development Fund administered by MIPR (section 3.3.1.3). 
4.33.  Brunei's MFN tariff on fish and fishery products is zero (Table 3.3). 
4.1.3  Forestry 4.34.  Rainforest covers almost 75% of Brunei's land area of 527,000 ha.
30 However, annual 
logging production is limited (Table 4.5) as large forest areas are protected from commercial 
development under Brunei's domestic policy and involvement in the tripartite Heart of Borneo initiative. In addition, Brunei maintains a reduced cut policy which limits annual timber logging production to 100,000 m
3 from Reserved Forests (see below).31 There are 24 sawmills licensed by 
the Department of Forestry which operate under the quota of logs.  
Table 4.5 Logging production, 2008-12 
 2008  2009  2010  2011 2012  
Round timber ('000 m3) 99.2 141.9 117.9 105.7 98.8 
Sawn timber ('000 m3) 39.7 48.7 45.2 41.6 41.5 
Bakau poles ('000) 99.7 134.1 170.9 173.0 135.5 
Charcoal ('000 kg) 29.7 17.7 22.7 35.5 30.9 
Source: Department of Economic Planning and Development (various issues), Brunei Darussalam Key 
Indicators , Bandar Seri Bagawan.  
4.35.  The Department of Forestry, under the MIPR, is the main authority in charge of managing, 
conserving and protecting Brunei's forests and forest resources. It aims to support Brunei's diversification strategy through the development of the forestry sector by providing investment 
opportunities to the private sector on the basis of sustainable forest management. The 
implementation of Brunei's Selective Felling System aims to ensure the sustainable growth and production of the local timber industry on the basis of biological diversity conservation, and soil and water conservation.
32 
4.36.  In line with the National Forestry Policy 198933, the Department of Forestry classifies the 
National Forest Estate (Reserved Forests) into: Protection Forests, Production Forests, Recreational Forest, Conservation Forests, and National Park. To date, the National Forest Estate cover 41% of 
Brunei's total land area; 138,000 ha are reserved for production of timber to supply domestic 
                                               
27 Ministry of Foreign Affairs and Trade (2012) ; and MIPR online information. Viewed at: 
http://www.bruneimipr.gov.bn/index.php?option=com_content&view=article&id=139&Itemid=74 . 
28 Ministry of Foreign Affairs and Trade (2012. 
29 Brunei GAP will be based on the ASEAN Shrimp GAP. 
30 The forests are in excellent condition and offer a wide array of socio-ec onomic and environmental 
benefits. FAO (2010).  
31 Occasionally, timber extraction is conducted in the state land to allow for priority development 
projects such as highway construction. Round timber ex tracted from these areas also contributes to the annual 
round timber production, thus, the data might exceed 100,000 m3. 
32 Brunei's Selective Felling System only removes ma tured timber within the capacity of the forest 
ecosystem growth and leaves healthy fore st residual trees for future harvest. 
33 Forestry Departme nt online information. Viewed at: http://www.forestry.gov.bn/dept_policy.htm . WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  demand. Brunei is committed to dedicate 55% of  its total land area to reserved forest.34 In 
addition, the authorities have implemented a plantation programme to maintain sustainable stocks for timber supply.
35  
4.37.  To increase the contribution of forestry to economic diversification, the Department of 
Forestry focuses on encouraging (i) imports of raw material for the development of downstream 
processing industries; and (ii) exports of value-added timber products.36 The first value-added 
timber products were exported in 2010.37 In addition, economic contribution of forest resources 
may be enhanced through nature tourism which has developed strongly and is one of Brunei's top 
tourism products.  
4.38.  During the review period, there were no changes to the Forest Act (Chapter 46)38 and the 
Forest Rules (Chapter 46 Rules 1)39 which regulate forest industry. Logging in Reserved Forests 
requires a license from the Department of Forestry. Royalties are levied on forest products.  
4.39.  Brunei's average MFN tariff on wood and articles of wood is 3.5% (ranging up to 10%), 
while that of pulp of wood, paper and paperboard is zero (Table 3.3). 
4.40.  To ensure domestic supply and for environmental reasons, Brunei continues to restrict 
imports and exports of timber and products thereof (sections 3.1.5.2 and 3.2.3). 
4.2  Energy sector 
4.2.1  Oil and gas 
4.2.1.1  Recent developments 4.41.  The hydrocarbons industry continues to do minate Brunei's economy in terms of contribution 
to GDP, government revenues and merchandise exports (section 1.3). However, production in the 
oil and gas sector shrunk at an annual average ra te 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 (Table 4.6).
40 According to the authorities, this reduction is temporary and the result of 
maintenance work at the oil refinery and offshore platforms.  
Table 4.6 Oil and natural gas production, export and domestic consumption, 2008-13 
 2008  2009  2010  2011 2012 2013  
Production 
Petroleum ('000 barrels/day) 174.1 166.7 169.9 165.9 159.0 135.2 
Natural gas (MMscf/day) 1202.1 1140.1 1208.1 1255.8 1230.6 1200.9 
Export 
Petroleum ('000 b/day) 152.9 148.2 155.3 154.8 150.5 126.4 
LNG (MMBtu/day) 999,622 920,240 945,801 985,204 957,647 961,393 
Price 
Oil (US$/barrel) 101.0 64.4 79.3 116.1 117.6 115.1 
LNG (US$/MMBtu) 12.9 10.5 11.6 16.5 17.9 16.9 
Domestic consumption 
('000 barrels)  
Mogas 1880.1 1879.8 1943.4 2030.7 2138.9 2176.7 
Kerosene 26.5 22.6 27.8 20.0 52.5 53.6 
Jet A-1 696.7 666.7 820.0 838.6 619.7 642.0 
Diesel 1603.4 1681.2 1850.7 2070.0 2157.8 2014.4 
LPG 177.8 180.1 180.6 187.4 194.9 196.7 
                                               
34 Forestry Departme nt online information. Viewed at: http://www.forestry.gov.bn/frst_forest.htm .  
35 Department of Economic Planning and Development (2010. 
36 Forestry Departme nt online information. Viewed at: 
http://www.forestry.gov.bn/proj_development.htm ; and Department of Economic  Planning and Development 
(2010).  
37 Oxford Business Group online information. Viewed at: 
http://www.oxfordbusinessgroup.com/eco nomic_updates/brunei-branching-out . 
38 Revised Edition 2002 as amended by S 47/07. 
39 Revised Edition 2002 as amended by S 48/07. 
40 Oil production was also well below the government's target of 200,000-206,000 b/d set out for 
2007-12. Department of Economic Planning and Development (2007).  WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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   2008  2009  2010  2011 2012 2013  
Bitumen 64.6 56.8 91.5 104.8 82.3 80.5 
Lubricants 19.0 14.5 19.7 19.3 18.6 20.8 
Gas (MMscf/day) 154.2 162.8 169.7 161.8 161.8 160.2 
Note: MMscf = Million standard cubic feet; MMBtu = Million British thermal units.  
Source: Data provided by the authorities.  
4.42.  Brunei has long-term plans to boost investment and production in the energy sector. The 
Energy White Paper released in 2014 lays out several key goals, including a target of attracting 
B$70-80 billion in FDI by 2035.41 Moreover, the cumulative investment is expected to boost 
employment in the sector, to an estimated 30,000 people by 2017 and 50,000 in 2035, up from 
20,000 in 2010.42 
4.43.  Brunei's wealth is based on its hydrocarbon reserves. According to some private estimates it 
has around 1.1 billion barrels and a reserves-to-production ratio of about 18.2 years.43 Exploration 
and development programmes are being carried out by oil companies to improve extraction from 
mature fields and open new fields both onshore and offshore (section 4.2.1.2). While the initial results of these programmes have been mixed, the Energy White Paper estimates that 3.5 billion barrels of new reserves will be added by 2035.  As a result, the government aims to boost 
production levels from the current 372,000 barrels  of oil equivalent per day (boepd), roughly 40% 
oil and 60% gas, to 430,000 boepd by 2017 and 650,000 boepd by 2035.
44 
4.44.  During the review period, oil prices fluctuated from as low as US$64.4 per barrel in 2009 to 
US$117.6 per barrel in 2012 in consonance with world demand.45 In 2013, Brunei exported 92% 
of its total crude oil production (about 135,000 b/d) ; most of which went to Rep. of Korea (18%), 
Japan (16%), Australia (15%) and other countries in the region (Table 4.7). The remaining crude 
oil output (8%) is refined for domestic use. Despite Brunei's status as a net exporter of oil, it 
imports about 40%  of the refined petroleum products it co nsumes (e.g. gasoline, gasoil, Jet A1 
fuel, and kerosene), as it has limited domestic refining capacity. 
Table 4.7 Oil and gas exports by destination, 2008-13 
(US$ million and % share) 
 2008  2009  2010  2011 2012 2013  
Crude petroleum  
Total (US$ million) 5,652  3,484  4,494  6,563 6,477 5,307  
Australia 18.4  17.6 21.5 19.6 15.8 15.2  
China 0.7 8.5 13.2 8.9 5.2 2.7 
Indonesia 36.3  23.0 13.0 12.8 6.9 11.3  
India 6.1 16.4 10.8 15.3 17.0 16.2 
Japan 6.1  2.7 7.4 6.1 8.2 6.6  
Korea (Rep. of) 19.2 15.9 21.8 21.5 18.7 17.7 
New Zealand 6.5  8.9 9.4 7.3 10.7 9.4  
Thailand 1.4 3.1 1.1 1.1 6.8 7.6 
Viet Nam 0.0  0.0 0.0 2.7 8.3 11.2  
Others 5.5 3.0 1.8 4.7 2.4 2.1 
Natural gas  
Total (US$ million) 4,733  3,514  3,991  5,937 6,272 5,936  
Japan 89.6  93.7 89.0 90.3 86.9 65.6  
Korea (Rep. of) 10.4 6.3 11.0 9.7 13.1 15.2 
Malaysia 0.0  0.0 0.0 0.0 0.0 6.5  
Singapore 0.0 0.0 0.0 0.0 0.0 12.7a 
a FOB, not final destination.  
Source: Data provided by the authorities.  
                                               
41 This increased investment will be  a central part of efforts to boos t the amount of goods and services 
provided to the energy sector by local companies, from B$400 million in 2010 to B$7 billion by 2035. Oxford Business Group, Economic Update, 24 April 2014. 
42 Support services, another source of  employment for Brunei ans, will get a boost too, with the Energy 
White Paper setting a target of reaching 50% local content for goods and services to the energy sector by 2017 and 80% by 2035. Oxford Business Group, Economic Update, 24 April 2014. 
43 Oxford Business Group (2013). 
44 Oxford Business Group, Economic Update, 24 April 2014. 
45 Largely because of its light (low-sulphur) crude oil,  the average oil price for Brunei's crude was almost 
US$5 per barrel above the average Brent crude spot  prices in 2011. Oxford Business Group (2013). WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  4.45.  Brunei produced an average of 1,200 MMscf  of natural gas per day in 2008-13 (Table 4.6), 
and it is one of the world's largest producers of liquefied natural gas (LNG). The price for LNG increased from US$12.9 per MMBtu in 2008 to US$16.9 MMBtu in 2013.
46 In 2013, the bulk of 
Brunei's exports of natural gas went to Japan (66% of the total)47, Rep. of Korea (15%), and 
Malaysia (6.5%). Natural gas is also used domestically for petroleum operators' own-use, power 
generation, liquefied petroleum gas (LPG) used domestically, and as a reserve for industrial purposes. Approximately 86% of Brunei's natural gas is exported as LNG.  
4.2.1.2  Policy developments 
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. 
4.47.  Under the Income Tax (Petroleum) Act (Chapter 119), Brunei levies a corporate tax on 
petroleum and gas operations at a rate of 55%. Royalties and petroleum income tax are payable on concessions, and production sharing agreements (PSAs). 
4.48.  The State controls key enterprises in th e oil and gas industry (section 3.3.3), notably 
Petroleum BRUNEI the national oil company
48, and Brunei Shell Petroleum (BSP) a joint-venture 
owned in equal shares by the Government and the Royal Dutch Shell Group.49 Petroleum BRUNEI 
is responsible for managing assets in designated areas, and has the right to take a participating 
interest in certain blocks.  
4.49.  The Energy Department, under the Prime Minister's Office50, is responsible for developing 
and implementing the Government's energy policie s, including the oil and gas sector. The Energy 
Department also manages the BSP assets and Block A, while PetroleumBRUNEI manages other 
upstream assets assigned to it. Other responsibiliti es of the Energy Department include: exploiting 
Brunei's oil and gas reserves; promoting the development of downstream industries; fixing crude 
oil prices; and ensuring compliance with internationally acceptable technical, accounting, health 
and safety standards. 
4.50.  Despite efforts to introduce competition in the sector, the largest oil and gas operator and 
producer remains BSP by virtue of its control of Brunei's major oil and natural gas fields. BSP has 
two petroleum agreements with the Government until the end of 2022.51 BSP is taking new 
measures to improve extraction particularly from mature fields.52 These measures include a more 
holistic approach to water flooding to alter reservoir dynamics53, deploying new technology to 
access difficult oil fields54, and an enhanced oil recovery pilot project.55 
                                               
46 The LNG market was dramatically affected by th e nuclear shutdown in Japan after the tsunami in 
March 2011, which combined with additional demand from fast-growing economies in Asia, led to a substantial jump in LNG imports and spot prices. 
47 For the production and distribution of LNG, the Japanese company Mitsubishi is in a joint-venture 
partner with Shell and the Brunei Government in the fo llowing private limited companies: Brunei Liquefied 
Natural Gas (BLNG), Brunei Gas Carrier (B CG), and Brunei Shell Tankers (BST). 
48 PetroleumBRUNEI, 100% owned by the State, is al so known as Brunei National Petroleum Company 
Sendirian Berhad (Sdn Bhd, meaning private limited). 
49 Shell has had a presence in Brunei for more than a century and was one of the six companies that 
first explored for oil in the Sultanate in 1899. BSP had a monopoly on all upstream and downstream activities 
until 1999, when the Government awarded some exploration blocks to other companies. 
50 The Energy Department reports to the Minister of Energy at the Prime Minister's Office. 
51 The Onshore Petroleum Mining Agreement and the co nsolidated First and Seco nd Offshore Petroleum 
Agreement. 
52 BSP operates in seven oil fields and 4,750 reservoi rs, which illustrates the compartmentalized nature 
of oil and gas in Brunei. The most im portant field is the offshore Champion  which has some 40% of Brunei's oil 
reserves and produces 90,000 b/d. Oxford Business Group (2013). 
53 For example, BSP is drilling new wells and constructi ng offshore structures wh ich could extend the life 
of the Champion field by 30 years. Oxford Business Group (2013). 
54 In Seria, the oldest oil field in Brunei, BSP is usin g the longest fish hook well ever drilled, measuring 
4km in length. Oxford Business Group (2013). 
55 This project could increase production by 25% from the Seria oil field. Oxford Business Group (2013). WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  4.51.  While BSP operates a concession, the ex ploration and development of a number of new 
onshore and offshore blocks have been offered on production sharing basis.56 This includes the 
various blocks assigned to PetroleumBRUNEI such as Blocks CA1, CA2, L, N and Q (Table 4.8). 
Table 4.8 Main petroleum activities, 2014 
Companies and ownership Activities Agreement 
A. Upstream activities   
BSP (Brunei Government 50% and Royal Dutch Shell 50%) Onshore (422 km2), 
offshore (5,062 km2) Concession 
Shell Deepwater Borneo (53.9%) and PetroleumBRUNEI (46.1%) Block A (804 km2) Concession 
TOTAL E&P Borneo B.V. (37.5%), Shell Deepwater Brunei (35%) and 
PetroleumBRUNEI (27.5%) Block B (392 km2) Concession 
TOTAL E&P Deep Offshore Borneo B. V. (54%), BHP Billiton (22.5%), 
HESS (13.5%), Petronas Carigali Overseas (5%), Canam Brunei Oil (5%) Block CA1 (5,850 km
2) Production 
sharing 
Petronas Carigali Brunei (45%), Canam Brunei Oil (30%), Shell 
Deepwater Borneo (12.5%), Diamond Energy Exploration and 
Production (6.25%), ConocoPhilips (6.25%) Block CA2 (6,024 km2) Production 
sharing 
Kulczyk Oil Brunei Limited (40%), AED South East Asia Limited (50%), QAF Brunei (10%) Block L (1,123 km
2) Production 
sharing 
Petronas Carigali Brunei (50%), Shell Deepwater Borneo (50%) Block N (883 km2) Production 
sharing 
Shell Deepwater Borneo (50%), Petronas Carigali Brunei (50%) Block Q (1,116 km2) Production 
sharing 
B. Midstream, downstream and marketing activities   
Brunei LNG (Brunei Government (50%), Shell Overseas Trading (25%), Mitsubishi (25%)) Commercial LNG plant for 
export  Joint-venture 
Brunei Methanol Company (Mitsubishi Gas Chemicals (50%), Itochu 
Corporation (25%), PetroleumBRUNEI (25%)) Produces methanol for 
export Joint-venture 
Brunei Shell Tankers (Brunei Government (50%), Shell Overseas 
Trading (25%), Mitsubishi (25%)) Owns tankers chartered to 
Brunei LNG to transport LNG Joint-venture 
Brunei Gas Carriers (Brunei Gove rnment (80%), Shell (10%), 
Mitsubishi (10%)) Owns tankers chartered to 
Brunei LNG to transport 
LNG Joint-venture 
Brunei Shell Marketing (Brunei Government (50%), Shell Overseas 
Holding (50%) Supply and marketing of 
petroleum products Joint-venture 
Source: Information provided by the authorities.  
4.52.  BSP also operates the only refinery in Brunei with a capacity of 12,000 b/d for its crude 
distillation unit and 7,000 b/d for its reformer unit, which meets about 60% of the domestic demand for refined petroleum products. China' s Zhejiang Hengyi Group is set to invest 
US$4 billion in a new refinery and petrochemicals complex, with a capacity of 175,000 b/d. This 
would represent the biggest FDI project in Brunei so far. The tentative date for the start of refinery 
operations is 2018.
57 The Government aims to make Brunei se lf-sufficient in refined products, with 
remaining capacity available for export. 
4.53.  Brunei is keen to encourage investment in downstream activities related to the petroleum 
and natural gas sector and has set aside 1 trillion cubic feet (tcf) of gas for industrial use. Currently, 0.5 tcf is utilized by Brunei Methanol Company (BMC) that started operations in 2010 
and now produces 850,000 tonnes per year. The remaining 0.5 tcf will be allocated for future 
petrochemical projects.  
4.54.  In order to meet its ambitious oil production target, in recent years Brunei has been signing 
agreements with emerging oil-producer nations to play an active role in regional oil industries and 
ensure reserves abroad. For example, Petroleum BRUNEI is looking at investing in Myanmar's oil 
                                               
56 This reflects the additional risks associated with  the new blocks, allowing the Government to partake 
in a profit sharing partnership whil e also helping to minimize risk. 
57 Under the first phase of its projec t, Hengyi is constructing a 1.5 million tonne per year light naphta 
facility, a 1.5 million tonne per year  paraxylene unit, and half a million tonne per year benzene plant. Under 
the second phase, Hengyi will invest some US$3.5 billio n to expand the refinery to produce olefins. Oxford 
Business Group (2013). WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  and gas sector, and in November 2012 signed an MOU with PetroVietnam.58 Brunei is also to 
provide Timor-Leste with expertise and support.59 
4.55.  Petroleum products for local consumption are marketed solely by Brunei Shell Marketing 
Company (BSM) although some of its stations are operated by independent operators or 
franchises. Retail/end-user prices of gasoline, diesel, kerosene, and bottled LPG have been 
regulated since 1978, under a Price Stabilization Agreement between the Government and BSM, under which the Government subsidizes prices if the price of crude oil rises above a certain level. 
The cost of petrol delivered to the stations is fi xed, as are margins and final prices. Fuel prices 
range from B$0.36 per litre for regular (Ron 85) to B$0.53 per litre for premium (Ron 97), while diesel is sold at B$0.31 per litre. Since 2011, su bsidization costs amount to over B$350 million per 
year.
60 
4.56.  Currently, about 24,000 people work in th e energy sector. Together, the private limited 
companies BSP, BLNG, BSM and BST constitute the largest employer in Brunei after the 
Government with some 5,000 jobs. By 2035, the Government aims to create 50,000 jobs in the oil 
and gas sector, 80% of which will be held by Bruneians.61  
4.57.  Brunei's average MFN tariff on petroleum is 0.5%, ranging up to 2.2% (Table 3.3). 4.2.2  Electricity 
4.58.  The electric industry in Brunei is governed by the Electricity Act 1973 and Electricity Act 
(Amendment) Order, 2002. The Department of Electrical Services (DES), under the Prime Minister's Office, is responsible for the generation, transmission, and distribution of electricity. Other than DES, electricity is also generated by  an independent power producer (IPP), the Berakas 
Power Company (BPC).  
4.59.  In total, Brunei has an installed powe r capacity of 806 MW. In 2013, total production 
reached 3,900 GWh, while consumption stood at 3,400 GWh. Nonetheless, still some 0.3% of the 
population living in remote areas does not have access to the national grid and have stand-alone 
generators. The largest consumer of electricit y is the residential sector, followed by the 
commercial sector, government buildings, and industry. 
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.
62 In addition, the Government consumes itself 
over 700 GWh of electricity in terms of lightning an d 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.
63 To do so, in 2012 a new electricity tariff for the residential 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. 
4.61.  Almost 99% of electricity uses natural gas as the main fuel while the rest is generated by 
diesel fuel.64 The Government is, therefore, exploring ways 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.  
                                               
58 This could also present opportunities for other firms operating in Brunei. Shell has said that it is also 
interested in participating in My anmar. Oxford Business Group (2013). 
59 Timor-Leste is seeking partnerships  to develop oil refineries and a liquefied natural gas plant. Oxford 
Business Group, Economic Update, 24 April 2014. 
60 Lawrey, R. and Pillarisetti J. R. (2011). 
61 Oxford Business Group (2013).  
62 Oxford Business Group (2013). 
63 Brunei's energy intensity target al so aims to contribute to APEC's goal of reducing 45% its regional 
energy intensity by 2035. 
64 Prime Minister's Office (undated).  WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  4.3  Manufacturing 
4.62.  Non-oil and gas manufacturing accounted for 0.9% of GDP in 2013 (compared with 0.8% 
in 2008). The main large-scale industries are cement production, garment making, and production of pre-cast concrete structures. Other industries include building material products; electronic and 
electrical products, such as cables, switchboard, and assembly appliances; mineral water; canned 
food; dairy products; silica sands products; and publishing and printing. Brunei is a net importer of cement and steel. Buoyed by large-scale infrastruc ture projects included in Brunei's Development 
Plan 2007-12, imports of cement and steel grew by 78% and 62%, respectively, over the period.
65  
4.63.  Overall, the performance of the manufact uring sector has been weak in the last years 
mainly due to the relatively high cost of doing bu siness; shortage of skilled and unskilled workers; 
lack of competitiveness of local products; and limited access to financing for micro, small and 
medium-sized enterprises (MSMEs), which compose 98% of local companies and employ some 
92% of the private sector workforce.66  
4.64.  Manufacturing has continued to be encourag ed in order to reduce Brunei's dependence on 
its petroleum resources, and a number of incentives  are used to encourage investment in priority 
sectors identified by the Government. The incentives include financial assistance to local companies; a lower corporate income tax rate of 20% from 2010; industries granted "pioneer 
status" are eligible for tax relief of up to five years for investments between B$500,000 and 
B$2.5 million; investments in excess may be gran ted eight-year tax relief, extendable by three 
years if they are located in a high-tech indu strial park (section 2.4.1.1 and Table 2.2).
67 In 
addition, companies can also receive exemption fr om import duties on machinery, equipment, 
component parts, accessories, building structures and raw materials (section 3.2.4.2).  
4.65.  In priority sectors in which private investment is not forthcoming, the Government invests 
directly, mainly through its company Semaun Holdings (section 3.3.3).68 To date, Semaun 
Holdings has launched nine joint-ventures in areas such as aquaculture, food processing and fine 
glass crystal manufacturing where economic diversification is sought.69 
4.66.  The Brunei Industrial Development Authority (BINA), under the Ministry of Industry and 
Primary Resources, had traditionally been the principal custodian of manufacturing development 
policy. Since 2001, however, the Brunei Economic Development Board (BEDB) has risen to the fore by promoting and managing large-scale industri al estates, including industrial parks that cater 
to downstream petrochemicals plants.
70 By comparison, BINA concentrates on domestic-business 
focused designs that provide average plots sized between 0.2 ha and 2 ha. 
4.67.  The design and location of these new indu strial parks are expected to assist Brunei's 
long-term diversification plans. Widely dispersed across Brunei, they are also intended to provide 
more employment opportunities for Bruneians, and support other economic activities, especially 
SMEs. There are two flagship sites: the industrial site of Pulau Muara Besar (PMB), and the Sungai 
Liang Industrial Park (SPARK). PMB is located ad jacent to Brunei's main seaport at Muara and is 
site for the US$4 billion Zhejiang Hengyi Group's integrated refinery and petrochemicals plant. 
SPARK is home to BMC's US$600 million plant (section 4.2.1.2).  
4.68.  In addition, six other sites currently under development will cater to the industrial clusters 
identified in Brunei's Vision 2035: downstream oil and gas industries, health care and health 
                                               
65 Oxford Business Group (2013). 
66 Prime Minister's Office (undated). 
67 Oxford Business Group (2013). 
68 Semaun Holdings, whose board of directors consists ma inly of government offici als, is fully funded by 
the Government of Brunei. 
69 Semaun Holdings online information. Viewed at: 
http://semaunholdings.com/index.php?opti on=com_content&task=view&id=21&Itemid=30 ; and 
http://semaunholdings.com/index.php?opti on=com_content&task=view&id=20&Itemid=37 .  
70 BEDB's functions include attracti ng and promoting FDI in export-ori ented manufacturing and services 
companies; encouraging micro businesses and strengthen ing local enterprises towards internationalization; 
fostering R&D and innovation through the development of a national innovation system that encourage 
knowledge creation and commercialisation in science an d technology and creative sectors; and supporting and 
promoting intellectual property, infrastructure development, including  operation and maintenance for large-scale industrial estates, while facilitatin g partnerships between local and foreign firms. WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  services (including pharmaceuticals and medicine), information and communications technology 
(ICT), and halal products.71 These are: (i) Salambigar Industrial Park which is already host to 
Simpor Pharma, a joint-venture between Viva Pharmaceutical from Canada and one of Brunei’s equity fund manager, Aureos-BICB
72; (ii) the Rimba Digital site which has already attracted 
US$102 million investment from a joint-venture be tween the Government of Brunei and CAE, a 
Canadian global leader in civil aviation and defence company to set up a Multipurpose Training Centre which will cater both local and regional mark ets; (iii) the Telisai Industrial Park that will 
accommodate mixed industries; (iv) the Bukit Panggal project will host energy-intensive 
industries; (v) the Brunei Agrotech Park will have halal and agro-business; and (vi) the Anggerek Desa Technology Park.  
4.69.  Manufacturing companies are eligible to receive financial support through various initiatives: 
(i) the Industrial, Commercial and Entrepreneurial Development Programme has allocated 
B$742 million for the implementation of 42 projects
73; (ii) various grants and loans are given to 
MSMEs (Table 3.11); and (iii) the Promising Local Enterprise Development Investment Fund has 
B$15 million to support local companies that wish to expand abroad.74 In addition, exporters of 
manufactured goods are granted income tax exemptions (section 3.2.4.2), and receive loans through the Export Refinancing Scheme (ERS) (section 3.2.5). 
4.70.  Exports of stone and gravel are prohibit ed, while exports of some other manufacturing 
products are restricted (section 3.2.3).  
4.71.  Brunei's average MFN tariff on manufacturing (m ajor division 3 of ISIC, Revision 2) is 1.9%, 
ranging up to 30% on some chemical products (Table 3.3).  
4.4  Services 
4.4.1  Overview 4.72.  During the period under review, services grew in general faster than the rest of the 
economy (section 1.1). As a result, the share of private services (excluding construction and 
utilities) in real GDP went from 25% in 2008 to 29% in 2013. The leading services subsectors were: business services (6% of GDP in 2013), wholesale and retail trade (5.8%), transport and 
communications (5.5%), and finance (4.3%).  
4.73.  Under the GATS, Brunei made specific commitments in 4 of the 12 sectors listed in the 
Services Sectoral Classification List: business services (professional, computer, and rental or leasing services without operators); communication services (telecommunication); financial 
services (insurance, and banking and other financial services); and transport services (air 
transport).
75 Further commitments were made in telecommunications services under the Fourth 
Protocol. In its Article II (MFN) exemptions, future liberalization with regard to foreign equity 
participation is subject to discretionary changes and dependent on Brunei's development 
requirements. Brunei also has a preference for recruiting labour from traditional sources of supply to ensure social cohesion in the country. Sector-specific MFN exemptions are also proposed to be 
maintained for legal services, radio and television services, financial services, reinsurance and 
retrocession, and banking and other financial services. Brunei submitted an initial conditional offer on services in the framework of the DDA.
76  
4.74.  Brunei also has services commitments und er the ASEAN Framework Agreement on Trade in 
Services (AFAS). The AFAS aims to enhance cooperation and substantially eliminate restrictions to 
trade in services among member states, with a vi ew to realizing a free-trade area in services. 
Individual commitments contain horizontal and sector-specific commitments and MFN exemptions.  
                                               
71 Halal food processing, packaging and biotechnology will be establishe d to support halal food industry. 
72 This estate has 121 ha and accommodates, inter alia , food and beverages, pharmaceuticals, 
cosmetics and light manufacturing industries. 
73 Prime Minister's Office (undated). 
74 This Fund, under the BEDB, works alongside the B $3 million Enterprise Technical Assistance Scheme 
capped at B$300,000 per recipient over two years to supp ort the cofounding of professional consultants. 
75 WTO document GATS/EL/95, 15 April 1994. 
76 WTO document TN/S/O/BRN, 13 May 2005. WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  4.75.  During the review period, Brunei remained active in negotiating and implementing regional 
trade agreements (RTAs), all of which include se rvices provisions, with the exception of the 
ASEAN-Japan Comprehensive Economic Partnership (AJCEP)  for which provisions on services and 
investment are under negotiation. A positive-list approach was followed in all RTAs where there is 
much diversity in Brunei's services commitments (Table A2.2). In most cases, commitments under 
Brunei's RTAs go beyond its GATS schedule/offer. 
4.4.2  Financial services 
4.4.2.1  Overview 
4.76.  As of June 2014, Brunei had seven commercial banks, one restricted bank, and 61 
non-banking financial institutions comprising: one Islamic Trust Fund (Perbadanan Tabung Amanah Islam Brunei (TAIB)
77; nine insurance companies; four takaful  (Islamic) operators; 
three finance companies78; the Employees Trust Fund (ETF)79, 23 money changers, 21 remittance 
companies, and one pawnbroker.  
4.77.  Since its establishment in 2011, the Autoriti Monetari Brunei Darussalam (AMBD) is 
responsible for the supervision and regulation of the financial system (section 1.1).80 According to 
the IMF, AMBD has introduced various initiatives to help maintain financial stability and improve asset quality, notably through the establishment of the Credit Bureau.
81 Since September 2012, 
the Credit Bureau, under the Regulatory Department of AMBD, provides financial institutions with 
Credit Reports to help them determine their customers' credit-worthiness.82 The Credit Bureau also 
assists the AMBD in making its policy decisions. In September 2014, the Credit Bureau introduced the Self-Inquiry service to the public, which allows individuals or commercial entities to access 
their own credit reports. The service aims to  improve transparency, credit awareness, and 
incentivise individuals/commercial entities to build and maintain a good credit reputation towards a healthy credit culture. 
4.78.  In March 2013, in order to facilitate credit access, ensure adequate returns to depositors 
and support long-term diversification plans, the AMBD introduced interest rate regulations on some products provided by financial institutions to their customers. The AMBD has also imposed 
tighter consumer lending regulations (section 4.4.2.2), which, according to the authorities, has 
had a positive effect on financial intermediation since overall credit in Brunei went from B$5.2 billion in December 2012 to B$5.5 billion in June 2014. On aggregate basis, banks’ profitability (profit before tax) also increased 60.6% from December 2012 to December 2013. 
4.79.  The Brunei Darussalam’s Deposit Protection Corporation (BDPC), under the Ministry of 
Finance, is responsible for the implementation of the asset maintenance regulation and for the National Deposit Insurance Scheme.  
4.80.  Brunei aims to become a regional financial centre for Islamic financial services: Islamic 
banking, Takaful  (Islamic insurance) and Islamic capital market products. The National Syariah 
Financial Supervisory Board was established in 2006 to enhance the Syariah governance and 
                                               
77 TAIB's main objective is to give saving facilities for people to undertake the Haj pilgrimage to Mecca. 
It also provides limite d deposit and investment and financing facilities. 
78 The three finance companies (two local and one fo reign) provide mainly hire-purchase financing for 
cars and other consumer durables. 
79 The ETF, established in 1993, was initially a compulsory pension scheme for all new public sector 
employees and was extended in 1994 to include all private sector employees, except those working for an employer with an approved provident fund. 
80 With the enactment of the Autoriti Monetari Brunei Darussalam Order 2010, AMBD took over some 
duties of the Ministry of Finance: Financial Institutions Division, Brunei International Financial Centre, Brunei Currency and Monetary Board, and part  of the Research and International.  AMBD online information. Viewed 
at: www.ambd.gov.bn .  
81 Section 42A of the AMBD Order, 2010. 
82 The data collected for the Credit  Report includes: basic personal profile (e.g. name, identification 
number or business regi stration and employment details); credit facility account details such as credit facility 
type, credit limit, outstanding balance and payment histor y; dishonoured cheques, if any; and legal suits filed 
by financial institutions, if any. Th e Credit Bureau does not express any opinion or recommendation about the 
credit worthiness of  the borrower in the Credit Report. WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  supervision as well as stimulating the growth of the sector.83 The Board is responsible for making 
sure that all Islamic products are in accordance with Syariah Law before they are allowed to be 
distributed.84 
4.81.  Brunei does not have its own stock exchange and the capital market still is in an infant 
stage. A new Securities Market Order came into force on 25 June 2013 (Table A2.1); its 
regulations have been drafted and are expected to come into force in 2015. The new legislation 
covers both Islamic and conventional investment activities, and replaced the Securities Order 2001 
and Mutual Funds Order 2011, with the aim of fa cilitating the growth and development of the 
capital market, and enhancing investor protection.85 
4.82.  Brunei is not a signatory to the Fifth Protocol to the GATS (on financial services). 4.4.2.2  Banking 
4.83.  Brunei's banking system is characterized by  a dual system consisting of one Islamic bank 
and six conventional banks, and an Islamic Trust Fund set up under its own statute. Out of the 
sevent banks, two are international
86, three regional and two domestic. In addition, three offshore 
banks operate, and the three licensed finance comp anies are wholly owned subsidiaries of three 
licensed banks in Brunei. As of June 2014, local banks held about 60% of the banking assets, while 35% was held by the two international banks.  
4.84.  The largest Islamic financial institution in Brunei is Bank Islam Brunei Darussalam (BIBD). It 
captures a significant proportion of government business and is the main bank for government payroll.
87 As of June 2014, BIBD had about one-third of both total banking assets and deposits. 
BIBD has also been active in the sukuk  (Islamic bond) market, co-leading a US$1 billion issuance 
for the Government of Indonesia. 
4.85.  The main change in terms of Brunei's banking legislation since its last Review is the 
adoption of the Islamic Banking Order 2008 which harmonized Islamic and conventional banking 
regulations. The legal framework for bankin g is also composed of: Banking Order 2006; 
International Banking Order 2000; Finance Comp anies Act (Chapter 89); Hire Purchase Order 
2006; Pawnbrokers Order 2002; and Money-Changing and Remittance Businesses Act 
(Chapter 174); and Moneylenders Act (Chapter 62 ). Annual licences fees charged by the AMBD 
range from B$2,000 for money changes to B$50,000 for headquarters of a licensed bank.88 
4.86.  According to the IMF, Brunei's commercial banks are well capitalized, profitable and highly 
liquid (Table 4.9).89 In terms of capital requirements, all banks are currently mandated to have a 
minimum regulatory capital to risk weighted assets  ratio of 10%, and top-quality capital ("Tier 1) 
to risk weighted assets ratio of 5%, which are above the Basel I and Basel II requirements.90 
Basel III tightens the definition of capital; raises the minimum capital requirement to 4.5% (up 
from 2% in Basel II) and of "Tier 1" to 6% (up from 4% in Basel II) of risk-weighted assets, after 
deductions; introduce a maximum Leverage Ratio; and usher in liquidity requirements for banks to withstand liquidity stress over periods of one month (Liquidity Coverage Ratio) and one year (Net 
Stable Funding Ratio).  According to the authorities, all banks in Brunei fully comply with 
Basel III.
91  
                                               
83 AMBD acts as the Secretariat of the Board. 
84 AMBD online information. Viewed at: www.ambd.gov.bn .  
85 Oxford Business Group (2013). 
86 Hong-Kong and Shanghai Banking Corporation (HSBC) and Standard Chartered Bank (SCB). 
87 BIBD has 14 branches and the larg est network of ATMs in Brunei. 
88 AMBD online information. Viewed at: http://www.ambd.gov.bn/regulatory/banking-specialized-
markets .  
89 IMF Public Information Notice No. 13/71, 26 June 2013. 
90 Basel III strengthens prudential requirements on banks with a view to achieving a safer financial 
system. New guidelines on capital, liquidity, maturity an d leverage aim at reducing the incentives for building-
up high-risk, highly leveraged banks assets responsibl e for the 2008-09 financial crisis. Bank for International 
Settlements online info rmation. Viewed at: www.bis.org/bcbs/basel3.htm .  
91 Implementation of Basel III is to be formalized and will be communicated to all the banks soon. WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  Table 4.9 Selected financial soundness in dicators of commercial banks, 2008-13 
(%) 
 2008  2009  2010  2011 2012 2013  
Capital adequacya 14.0 18.0 21.1 18.8 20.9 20.4 
Non-performing loans ratiob 9.3 11.2 8.5 7.6 6.8 5.7 
Loans to depositsc .. 42.6 42.0 38.0 40.0 40.9 
Demand deposits/total depositsc .. 25.7 27.4 28.0 27.2 27.8 
.. Not available. 
a Regulatory capital to total risk weighted assets. 
b Based on loans overdue for more than 90 days. c Excluding government deposits. 
Source: Data provided by the authorities.  
4.87.  Since the introduction of the asset maintenance ratio in 2011 as part of the bank's 
obligations under the Deposit Protection Scheme (DPS)92, a shift in banking assets from offshore 
to onshore has occurred which in principle allows for more funds to be better channelled to 
domestic sectors. With the introduction of consum er credit regulations the bank's exposure to the 
personal loan portfolio has decreased from 64% of total credit in the banking system in 2005 to 30% as of June 2014.
93 In turn, this has enabled banks to allocate more funds to productive 
activities and SMEs. 
4.88.  With Brunei's banking sector looking for new opportunities for revenue growth and the 
government keen to position Brunei as a prominent regional financial centre, treasury services 
could provide new opportunities. However, there are no regional treasury centres in Brunei and its 
regulatory framework and incentive structure woul d need to change to attract such business. 
Moreover, Brunei needs to become more competitiv e and reduce its relatively high banking fees 
and transaction costs.94 
4.4.2.3  Insurance 4.89.  A significant consolidation in the insurance market has taken place in Brunei over the last 
few years. Indeed, the number of companies went down from 21 in 2006 to 13 as of 
September 2014, partly due to the increase in the minimum capital requirement from B$1 million 
to B$8 million for both general and life insurance.
95 Brunei's insurance market is relatively small 
given the size of the population, the demand for life insurance is limited because Brunei has a 
welfare system that offers full health care co verage and a generous pension scheme from the age 
of 60, and most insurance firms do not have the capital to underwrite large-scale projects associated with the lucrative oil and gas industry. 
4.90.  Nine insurance firms in Brunei are conventional, of which 4 are domestic takaful  and the 
rest foreign.
96 Like in banking, Brunei's takaful  companies have been increasing their participation 
in the market and now account for 50% of gross premiums (31% in 2008), a fifth of all assets and a third of total claims. The largest player in the conventional insurance market is National 
Insurance with almost 40% market share.
97  
                                               
92 AMBD works with the Deposit Protection Corpor ation to ensure that the DPS is implemented. 
93 AMBD rules limit the exposure of all banks' to pe rsonal loans to 30% of th eir portfolio. However, to 
stimulate a more conducive banking environment and to encourage increased deployment of excess liquidity 
within Brunei, the personal loans cap was increased to  40% (up from 30%) of total loans as of February 2014. 
94 Brunei's average cost for a bank  transaction is US$7.51 (compared, for example, to US$0.29 in 
Singapore and US$9.39 in Hong Kong-China), and its average monthly bank fees are US$18.64 (against Singapore's US$13.52 and Hong Kong-China's US$6.06). Brunei also has high fees for incoming, outgoing and urgent foreign payments. Oxford Business Group (2013). 
95 Insurance Order 2006 and its regulations. 
96 Brunei's takaful  companies are: Insurans Islam TAIB, Takaful Brunei Am and Takaful Brunei Keluarga. 
97 National Insurance is owned: 70% by Bruneian investors, 25% by Allianz Global Corporate & 
Speciality's Singapore branch, and 5% by Mitsui Sumitomo Insurance. Oxfo rd Business Group (2013). WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
- 71 - 
 
  4.91.  The prospect of establishing a local reinsurance company with substantial paid-up capital is 
being discussed. Nowadays most of the money earned  by domestically operating reinsurers of local 
insurance schemes goes abroad with the insurers themselves.98 
4.92.  In 2013, gross premiums for all general insurance companies totalled B$182.5 million (up 
from B$115.8 million in 2008). In general business, takaful  operators were heavily concentrated in 
motor insurance, and dominated the market with 40%  of total general premiums. In life business, 
conventional insurers remain the biggest market players as products offered are more extensive 
compared with takaful .  
4.93.  Insurance legislation is composed of: In surance Order 2006; International Insurance and 
Takaful Order 2002; Motor Vehicle Insurance (Third Party Risks) Act, Chapter 90;  and Takaful 
Order 2008.  
4.94.  The Insurance/ Takaful  and Capital Market Supervision Division, under AMBD, undertakes 
the registration, licensing and supervision of insurance and takaful  companies, their 
intermediaries, capital market intermediaries, securities and mutual funds (conventional and 
Islamic). The main elements of supervision incl ude a security deposit with the Government of 
B$1 million for insurers underwriting motor insurance, and for licensed life and/or general insurers under the Insurance Order 2006; minimum paid-up capital requirements of B$8 million and for 
foreign branches the equivalent in surplus of assets over liabilities; a solvency margin for general 
insurers of 20% of net premium income (NPI) of the previous year; and guidelines for the appointment of foreign employees and motor insura nce agents. Application fees range from B$250 
for captive insurance to B$1,500 for life and gene ral insurance (composite), while annual fees go 
from B$1,500 to B$12,000 depending on the type of license. 
4.95.  The Brunei Insurance and Takaful Association (BITA), a representative body for both 
conventional and Islamic insurers was established in November 2013. General insurers, both 
conventional and takaful , have agreed in principle to a cap on commission to agents ranging from 
15% to 25% across the various lines of business.
99  
4.96.  Brunei made GATS commitments for direct insurance (life and non-life), reinsurance and 
retrocession, insurance and intermediation (broking and agency services) and auxiliary services 
(consultancy, actuarial risk assessment, risk management, and maritime loss adjusting). In general, Brunei's schedule reflects current requirements and restrictions, including commercial presence only through companies registered in Brunei for direct insurance; and purchase of 
compulsory insurance for motor third-party liability and workmen's compensation only from 
insurance companies established in Brunei. 
4.4.3  Telecommunications 
4.97.  Brunei aims to increase the contribution of the information and communication technology 
(ICT) sector to the economy from 1.6% of GD P in 2010 to 6% by 2015. Brunei is making key 
investments in submarine cables and fibre-to-the-home infrastructure upon which its ICT 
transformation will be based (see below). There has also been significant investment in a rural 
telecoms network, allowing rural and remote areas access to telephone and the Internet.  
4.98.  While fixed-telephone subscribers decreased to 57 per 100 inhabitants in 2013
100, the 
mobile network has continued to grow over the last few years and mobile penetration had reached 
115% by 2013 (up from 106% at end 2008) (Table 4.10). Internet users increased from 46% to 
over 60% during the same period. By 2013, there were some 23,800 broadband subscriptions (compared with 16,900 in 2008). Overall, Brunei is ranked 58
th out of 157 countries in the latest 
ITU's Development Index.101 
                                               
98 Oxford Business Group (2013). 
99 Oxford Business Group (2013). 
100 Consumers worldwide continue to move aw ay from fixed-line telephony by using, inter alia , not only 
mobile phones but also Voice over Internet Protocol (VoIP) servic es and other options. 
101 ITU's ICT Development Index (IDI) is a composite index combining 11 indicators into one benchmark 
measure that serves to monitor and compare developmen ts in ICT across countries. Brunei has a relatively WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  Table 4.10 Selected telecommunication indicators, 2008-13 
 2008  2009  2010  2011 2012 2013a 
Fixed telephone subscriptions ('000) 80.8 80.5 79.9 79.9 70.9 56.7 
Fixed phone lines per 100 inhabitants 21.54 21.18 20.66 20.30 17.74 14.18 
Mobile cellular subscriptions ('000) 398.9 412.9 435.1 443.2 469.7 468.8 
Mobile cellular per 100 inhabitants 106.36 108.62 112.49 112.66 117.49 115.41 
Internet users (%) 46 49 53 56 60 .. 
Broadband subscriptions ('000) 16.9 20.0 21.7 20.5 17.8 23.8 
Broadband per 100 inhabitants 4.5 5.3 5.6 5.2 4.5 5.9 
.. Not available. 
a Preliminar. Source: ITU online information, "ICT Statistics Database". Viewed at: http://www.itu.int/ITU-
D/ict/statistics/ ; and information provided by the authorities.  
4.99.  The Ministry of Communications sets national policies for the development of the telecoms 
sector. The Authority for Info-communications Technology Industry (AITI), an independent 
statutory body under the Minister of Communication s, is the telecoms regulator and ICT industry 
development promoter. Brunei started the restructurin g of the sector in 2001 with the adoption of 
the following legal framework: the Telecommunication Successor Company Order 2001, the Telecommunications Order 2001, and the AITI Order 2001. These Orders replaced the 
Telecommunications Act of 1952.
102  
4.100.  The Telecommunications Order 2001 confers upon AITI the exclusive privilege to operate 
and provide telecommunication systems and services in Brunei and allows AITI to issue licences to 
operators and to manage the radio communications spectrum. AITI's licensing regime is 
technologically neutral, with no distinction drawn on the basis of the technology used. It has a two-tier licensing structure: the InTi (Infrastructure Provider for the Telecommunication Industry) 
licence is required by licensees who own infrastructure, and the SeTi (Service Provider for the 
Telecommunication Industry) licence is required by those who provide retail services through wholesale arrangements with InTi licensees. There is no specific regulation to govern prices and tariffs, but AITI has the power to give regulatory directions to licensees in the public interest and 
to ensure fair and efficient market conduct.
103  
4.101.  Telekom Brunei (TelBru), a state-owned company registered under Brunei's Companies 
Act, continues to be the only operator in the fixed-line market .104 TelBru also provides basic 
telephony and a range of value-added services such as leased-line services, dial-up internet, ADSL 
broadband, VoIP, ATM lines and pre-paid calling cards.  
4.102.  Competition in Brunei's mobile telephony market was introduced in 2005. Nonetheless, 
there are only two mobile operators: Progressif Cellular Sdn Bhd (PCSB)105, and the DST 
Communications Sdn Bhd (DSTCom) since 1995.106 At the end of 2013, B-mobile and DSTCom had 
about 15% and 85%, respectively, of total mobile subscribers. In November 2013, DST introduced 
4G long term evolution (LTE) network which pr ovides faster, and more spectrally-efficient 
technologies for mobile broadband.  
                                                                                                                                               
high income level but comparatively low IDI value, th erefore focused policies and government action could 
quickly lead to higher ICT levels. ITU (2013). 
102 See WTO (2008). 
103 AITI may also issue Codes of Practice in connec tion with the provision of telecom services, the 
conduct of telecom licensees, or  to govern the prices and tari ffs charged for telecom services. 
104 TelBru's predecessor, Jabatan Telekom Brunei/Telecommunications Department (JTB) was 
responsible for the deployment of tele coms infrastructure and provision of services in Brunei, as well as being 
the regulator. Under the Telecommunication Successor Company Order 2001, JTB was transformed into TelBru. 
105 In July 2014, PCSB replaced B-mobile Communications Sdn Bhd (B-mobile) who had been in 
operations since February 2005. B-mobile, previously a joint-venture between TelBru and QAF Comserve, was 
the first mobile operator in February 2005. It introduced the first 3G and 3.5G mobile networks. 
106 The DST Group are companies incorporated in Brunei  since 1995. Its operations include the telecoms 
networks, mobile communications, trunked radio servic es, broadband internet and leased lines. Its mobile 
subsidiary, DSTCom, joined the mobile market in 1995 with a AMPS network. WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  4.103.  TelBru, PCSB, and companies in the DST group are locally-owned and controlled and have 
no significant foreign participation. AITI's licensing framework implements policies which require that licensees are locally majority-owned or controlled. 
4.104.  Overall, Brunei is ranked 27
th out of 161 countries in the latest ITU's ICT Price Basket. This 
study finds that measured as a percentage of GNI per capita, fixed-telephone and mobile prices 
are relatively low in Brunei (ranking 16th and 21st in the world, respectively), but fixed broadband 
is relatively expensive (52nd).107 
4.105.  In 2008, the responsibility for the Broadc asting Act (Chapter 180) was transferred from 
the Prime Minister's Office to the Ministry of Communications. AITI is undertaking a complete review of the telecoms regulatory framework to have a single converged regulator for telecoms 
and broadcasting under AITI by 2015.
108 
4.106.  As part of the convergence exercise, AITI is developing a Telecommunications and 
Broadcasting Competition Code which will be Brunei's first-sector specific competition code and will mandate, inter alia , interconnection between fixed network suppliers and other service providers, 
local loop unbundling, infrastructure-sharing, and specific obligations to prevent anti-competitive 
behaviour, in particular affecting licensees with significant market power. The Competition Code, expected to be implemented in 2015, aims to prom ote efficiency and competitiveness in telecoms 
and broadcasting, ensure ease of market en try, and provide certainty to telecoms and 
broadcasting market players. 
4.107.  A new Tariff Regulation Code of Practice will be introduced to regulate retail and wholesale 
tariffs for telecoms and broadcasting infrastructure and services. The Code will implement ex ante  
tariff regulation methodologies to ensure that affordable prices are offered in Brunei, encourage 
competition, and ensuring transparency and certainty in the market. It will also streamline the existing filing and tariff control systems. 
4.108.  The introduction of the Competition and Tariff Regulation Codes aims to support the 
emergence of a competitive retail service provider industry which will complement Brunei's three phase fibre-to-the-home network by 2017. The Gove rnment, through TelBru and with the support 
of AITI, is developing nationwide fibre-to-the-home infrastructure. Phase one is being 
implemented by TelBru aiming to reach 30% of hous eholds. Phases two and three will follow so as 
to reach, respectively, 80% and 100% of households. 
4.109.  Brunei is partner in the US$400 million Sout h-East Asia–Japan Cable (SJC), which will 
connect 8,900 km between Brunei; Japan; Hong-Kon g, China; the Philippines; and Singapore with 
an option to extend to Thailand and Viet Nam.
109  
4.110.  AITI is undertaking some initiatives to provide a platform for recognition and funding for 
the local ICT industry, such as AITI Accredited Business (AAB) Status, ICT Accredited Business 
(ICTAB), AITI Grant Scheme, and the AITI Market Creation Programme. AAB and ICTAB is a centralized directory of ICT companies in Brunei, indicating financial and business track record. In 
2010, AITI introduced both the Grant Scheme to give partial financial assistance to develop 
"Brunei-Made" solutions for businesses (section 3.3.1.5), and the AITI Market Creation Programme to assist local ICT SMEs to obtain a ready market for their Brunei-Made ICT products and services. 
                                               
107 Fixed broadband continues to be a critical service for achieving the fu ll benefits of the internet as a 
development enabler, because it remains the primar y means of accessing high-speed, high-capacity and 
reliable internet services. ITU (2013). 
108 Currently, AITI is only responsible for regulati ng the telecoms industry. Companies wishing to 
become Internet Protocol Television (IPTV) providers al so require a broadcasting li cence from the Ministry of 
Communications. This requirem ent for a licence from a separate broadcas ting authority will no longer be the 
case once AITI creates a converged regulator. 
109 SJC would be Brunei's third international connection, the other two being the Asian-American 
Gateway (linking it to Malaysia; Singapore; Thailand; Viet Nam; Hong Kong, China; and the United States), 
and the SEA-ME-WE 3 cable which has connections to South East Asia and Africa. WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  4.4.4  Transport 
4.4.4.1  Air transport 4.111.  The Department of Civil Aviation (DCA) in  the Ministry of Communications is responsible 
for ensuring safe and secure air transport servic es. The regulatory regime for air transport is 
contained in the Civil Aviation Order 2006 (S 63/06) and subsidiary legislation, including the Civil 
Aviation Regulations 2006 (S 69/06), the Airport F ees and Charges Regulations, the Air Transport 
and Commercial Flying (Licensing) Regulations, and the Air Traffic Control Regulations.
110 There 
were no changes to the regulatory framework during the review period. 
4.112.  There is one airport in Brunei. Brunei Inte rnational Airport (BIA) is owned by the State and 
managed by DCA. To cope with substantial increase in passenger traffic (Table 4.11), BIA passenger terminal is being modernized and expa nded to improve facilities and double annual 
capacity from 1.5 million to 3 million passenger s. The project awarded to a Malaysian-Bruneian 
joint-venture, is supervised by the Brunei Economic Development Board (BEDB) and DCA; completion is expected by end-2014. No upgrade of BIA freight terminal, which has capacity of 
50,000 tonnes a year, is foreseen.
111 
Table 4.11 Air traffic indicators, 2008-13 
 2008 2009  2010  2011  2012 2013  
Passengers ('000) 
Inward 
Outward In transit  1,554.9 
632.3 
638.4 284.2 1,535.6
 
626.4 
638.8 270.4 1,929.3
 
781.3 
777.3 370.7 2,017.2
 
814.9 
808.6 393.7 1,680.9 
715.0 
705.1 260.8 1,714.5
 
.. 
.. .. 
Aircraft movements 
Scheduled 
Non-scheduled 
Chartered  14,500 
12,386 
2,051 
63 14,867  
12,021 
2,825 
21 17,876  
13,552 
4,313 
11 16,541  
12,916 
3,596 
29 13,860 
13,038 
772 
50 25,458  
.. 
.. 
.. 
Freight (tonnes) 
Inward Outward 19,592.8 
12,525.7 
7,067.1 
 19,191.3
 
12,042.4 
7,148.9 
 27,651.0  
16,184.0 
11,467.0 
 28,125.9  
16,765.1 
11,360.8 
 23,863.6 
15,123.4 
8,740.2 23,771.2  
.. 
.. 
.. Not available. 
Source: Department of Economic Planning and Develo pment (various issues), Brunei Darussalam Economic 
Bulletin; and information provided by the authorities.  
4.113.  Air carriers must obtain an air operator's certificate and an operating licence issued by 
DCA.112 During the review period, two airlines, the Philippine's Cebu Pacific and the Malaysian 
MASWings, launched flights to Brunei. To date, there are six regional airlines using BIA.113 The 
national flag carrier, Royal Brunei Airlines (RB) operates to 14 destinations (as of 17 October 2014), mainly within the region.
114 In 2011, its decision to cut long-haul routes and concentrate on 
the regional market led to a sharp drop in passeng ers in transit at BIA (Table 4.11); most of RB 
passengers on long-haul flights were passengers in transit as the airline sought to convert Brunei into a hub between Europe and Oceania.
115 Air freight is provided by RB and Syabas Airmark 
Aviation Sdn Bhd.116 
4.114.  Air fares and freight rates must be filed with and approved by DCA at least 25 days prior to 
implementation.117  
                                               
110 Subsidiary legislation includes the regulations enacted under the Air Navigation Act (Chapter 113) 
(Section 55(3)) which was repealed by the Civil Aviation Order 2006 (S 63/06). Complete list of subsidiary legislation, see AGC online information. Viewed at: http://www.agc.gov.bn/ . 
111 Ministry of Foreign Affairs and Trade (2012); Oxford Business Group (2011); and BEDB online 
information. Viewed at: http://www.bedb.com.bn/bisop_deliverinfrastructure.html#moder . 
112 Civil Aviation Order 2006 (S 63/06) and Civil Aviation Regulations 2006 (S 69/06). 
113 Air Asia (Malaysia), Cebu Pacific (Philippines), Malaysia Airlines, MASWings (Malaysia), Royal Brunei 
Airlines, and Singapore Airlines. 
114 RB online information. Viewed at: http://www.flyroyalbrunei.com/brunei/ .  
115 Oxford Business Group (2011); and Oxford Business Group (2013). 
116 Brunei Times , 8 July 2010. Viewed at: http://www.bt.com.bn/business-national/2010/07/08/not-
business-usual-bruneis-transport-sector .  
117 Civil Aviation Order 2006, Sections 30-31. WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  4.115.  Airport-related charges include landing, parking, and housing fees118; and a passenger 
service fee.119 Landing fees are based on the aircraft's maximum weight at take-off120; they do not 
differ from peak and off-peak hours. Fixed charges are set for parking (B$0.40/10 m2) and 
housing (B$0.80/10 m2); the first three hours of parking are free of charge. The passenger service 
tax rate is B$12 for all passengers embarking at BIA, except those travelling to the Brunei-
Indonesia-Malaysia-Philippines East Asia Growth  Area (BIMP-EAGA) cities (B$5). To encourage 
increased connectivity and flight frequency, incentives on landing and parking fees were 
introduced in early 2013 and may be granted to air carriers (Table 4.12). 
Table 4.12 Incentives on landing and parking fees 
 Recipient 
First 6 months: no fees  
Next 6 months: 50% discount  Next 1 year: 25% discount  Airlines operating to/from BIA pr oviding new services to/from new 
destinations New airlines operating to BIA from new destinations Freight carriers operating to/from BIA 
First 6 months: 50% discount  
Next 6 months: 25% discount Airlines increasing flight frequency 
25% discount Passenger charter se rvices from new destinations 
Source: Department of Civil Aviation online information. Viewed at: http://www.civil-aviation.gov.bn/ .  
4.116.  Ground services (fuel supply, flight pl anning) are provided by RB and private company 
Glamco Aviation Sdn Bhd.121 In addition, Brunei International Air Cargo Centre (BIACC) handles all 
freight transiting through BIA.122 Wholly-owned RB subsidiary Royal Brunei Catering provides 
catering services to all aircrafts.123  
4.117.  Brunei has liberalized international air transp ort through bilateral, regional, and plurilateral 
agreements. To date, it has signed 36 bilateral ai r agreements (Table A4.1). During the review 
period, a number of bilateral air services agreem ents were updated including with Japan, Kuwait 
(State of), United Kingdom, and Saudi Arabia (Kingdom of). Open sky arrangements are provided 
in five agreements.124  
4.118.  Since 2009, three regional open sky agreements125 liberalized traffic rights (passenger and 
freight) with the view to establishing the ASEAN Single Aviation Market.126 ASEAN air carriers are 
granted full traffic rights under the 3rd, 4th, and 5th freedoms between cities with international 
airports within the region. In addition, ASEAN en gaged in negotiating open sky agreements with 
dialogue partners. An agreement with China entere d into force in 2011. Other partners (EU, India, 
Japan, and Republic of Korea) have expressed interest in negotiating similar agreements.  
4.119.  Brunei is party to the Multilateral Agreem ent on the Liberalisation of International Air 
Transportation (MALIAT) Agreement.127 It grants full traffic rights for passengers under 3rd, 4th, 
                                               
118 Airport Fees and Charges Regula tions, as amended by S 16/13. 
119 Airport Passenger Service Charge Act (Chapter 188), Revised Edition 2000; and Airport Passenger 
Service Charge (Exemption) Order 2004 (S 30/04). 
120 Department of Civil Aviation online information. Viewed at: http://www.civil-
aviation.gov.bn/index.php/services/aeronautical-info rmation-services/93-services/ais/118-rate-of-landing-
charge . Unscheduled flights are subject to different rates. Viewed at: http://www.civil-
aviation.gov.bn/index.php/services/aeronautical-information-services/93-services/ais/116-landing-fees-for-
unschedule-landings .  
121 Glamco online information. Viewed at: http://www.glamco.info/index.php .  
122 BIACC is jointly owned by RB, Royal Brunei Tech nical Services, and privat e company Circle Freight 
International Sdn Bhd.  
123 Royal Brunei Catering online information. Viewed at: http://www.rbccatering.com/ .  
124 Agreements with Australia; Japa n; New Zealand; Singapore; and th e United States provides for an 
air liberalization index exceeding 25. 
125 Multilateral Agreement on Air Services (signed 2009/ratified by Brunei 2010); Multilateral Agreement 
on Full Liberalization of Passenger Air Services (2010/ 2013); and Multilateral Agreement on Full Liberalization 
of Freight Services (2009/2010). 
126 ASEAN (2010b). Viewed at: http://www.aseansec.org/wp-content/uploads/2013/07/BAP-2011-
2015.pdf.  
127 Other parties are Chile; the Cook Islands; Mongolia  (freight only); New Zeal and; Samoa; Singapore; 
Tonga; and the United States. WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  and 5th freedoms to all parties and under 7th and 8th freedoms to Chile, New Zealand, and 
Singapore; and (ii) full traffi c rights for freight under the 7th freedom to all parties.128 
4.120.  Brunei made commitments for rental of aircraft with crew under the GATS.129 
4.4.4.2  Maritime transport 
4.121.  Maritime transport is governed by the Merchant Shipping Order 2002 (S 27/02)130 and 
subsidiary legislation.131 There were no substantial changes to the regulatory framework during 
the review period. 
4.122.  The Marine Department in the Ministry of Communications is responsible for, inter alia , 
vessel registration (including fishing boats (section 4.1.2) and vessel licensing. Registration with the Marine Department is mandatory for locall y-owned vessels and self-propelled foreign-owned 
vessels exceeding 1,600 tonnes. In addition, those vessels not exceeding 100 tonnes must also be 
licensed by the Department; licences are valid for one year.
132 Licensing applies to both locally- 
and foreign-owned vessels. However, foreign-owned vessels under this category are only allowed to be used as pleasure boats. Brunei's merchant fleet comprises 1 cargo ships and 8 tankers; no 
bulk carriers or container ships are registered.
133  
4.123.  Shipping services are provided by 49 fo reign companies and represented by 14 shipping 
agents. In 2010, the authorities considered the crea tion of a national shipping company with the 
view to addressing ASEAN connectivity issues and lowering freight fees. Foreign shipping 
companies are reported to charge high cargo fees as vessels leaving Brunei are not fully loaded due to the small volume of domestic production.
134 To date, no further actions have been taken to 
create a national shipping company.  
4.124.  The Ports Department, under the Ministry  of Communications, is responsible for port 
development, except navigational assistance to vessels entering Muara port which is provided by the Marine Department.
135 The authorities have commissioned a study to corporatize and 
subsequently privatize the Ports Department.136 Port activities are regulated by the Port Act 
(Chapter 144).137 There was no change to the legal provisions on ports during the review period.  
4.125.  There are three ports owned, managed, an d operated by the Ports Department: (i) Muara 
is Brunei's deep-water port through which 90% of the merchandise trade, except oil and gas, is 
channelled; (ii) Kuala Belait port facilitates the movement of cargo comprising materials for offshore oil and gas activities via supply vessels; and (iii) Bangar operates a domestic route for cargo transported by barges.
138 The Ports Department also operates the Passenger and Car Ferry 
Terminals in Serasa to connect passengers to Labuan (Malaysia), as well as the Cruise Ship Centre 
which provides facilities for passengers/tourists calling via Cruise Vessels.  In addition, there are 
private terminals located in Seria and Lumut where crude oil and LNG are loaded for shipment. 
4.126.  Muara has two terminals for conventional cargo and containers that provide 24/7 service. 
Muara container terminal (MCT) is operated and maintained under a concession contract which 
                                               
128 MALIAT online information. Viewed at: http://www.maliat.govt.nz/ .  
129 For details, see: WTO/World Bank I-TIP Services database. Viewed at: http://i-
tip.wto.org/services/default.aspx .  
130 As amended by S 23/09. 
131 Subsidiary legislation includes the regulations enacted under the Merchant Shipping Act 
(Chapter 145) (Section 216(3)) which was repealed by the Merchant Shipping Order 2002 (S 27/02). Complete list of subsidiary legislation, see: AGC online information. Viewed at: http://www.agc.gov.bn/ .  
132 Parts II and VI of the Merchant Shipping Order 2002 (S 27/02) as amended by S 23/09; and 
Merchant Shipping (Registration of Ships) Regulations 2006 (S 62/06) as amended by S 23/09. 
133 Department of Economic Planning and Development (2013b); and UNCTAD (2013). 
134 Oxford Business Group (2013); and Brunei Times , 8 July 2010. Viewed at: 
http://www.bt.com.bn/business-national/2010/07/08/ not-business-usual-bruneis-transport-sector.  
135 Marine Department online  information. Viewed at: http://marine.gov.bn/function_duties.htm . 
136 Ports Department online information. Viewed at: 
http://www.ports.gov.bn/news/2013/20130615.htm . 
137 Revised Edition 1984, as amended by S 17/88 and S 26/02. 
138 Ministry of Foreign Affairs and Trade (2012); and Brunei Times , 27 August 2009. Viewed at: 
http://www.bt.com.bn/home-news/2009/08/27/muara-port-expansion-key-becoming-transit-hub. WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
- 77 - 
 
  was taken over by New Muara Container Terminal Services139 in 2009. During 2008-13, the 
volume of container throughput and cargo handled by Muara port increased (Table 4.13). However, MCT continued to operate well be low its annual capacity (220,000 to 300,000 TEUs).
140 
To help increase traffic and mitigate port f ees, which are among the highest in the region, 
incentives were introduced, including extended free storage period, lower terminal handling 
charges, and reduced port tariffs.141 
Table 4.13 Muara Port traffic, 2008-13 
 2008 2009  2010  2011  2012 2013  
No. of vessels 1,970 1,726 1,950 1,879 1,736 1,816 
Containers (TEUs) 90,372 85,577 93,243 101,401 116,551 111,817 
Cargo (tonnes) 948,033 927,316 1,049,695 1,044,154 1,212,235 1,041,516 
Source: Information provided by the authorities.  
4.127.  During the review period, the Ports Department completed two additional inland container 
depots to reduce congestion and facilitate movement of cross-border cargos. The extension of the 
container wharf is expected to start in 2015 and be completed by end of 2016.142 In addition, the 
Ports Department and the Tourism Brunei Board work jointly to convert Muara into a port of call 
for cruise liners in order to promote tourism development. Over the 2007-13 period, 168 cruise 
vessels (150,901 passengers) docked at Muara.143 
4.128.  Brunei made no commitments under the GATS on maritime transport.  
4.4.5  Tourism 
4.129.  Tourism has been identified as a contributor to economic development and diversification 
(section 1.3). During the review period, there was an increase in the number of tourist arrivals 
(Table 4.14). However, there is room for further improvement as tourism's share in the economy 
remains relatively small at about 2% of GDP.  
Table 4.14 Tourism indicators, 2008-13 
 2008 2009  2010  2011  2012 2013  
Tourist arrivals (‘000) 
Air Land Sea 2,741 
226 
2,267 
248 2,548 
157 
2,086 
305 2,791 
214 
2,095 
482 3,104 
242 
2,558 
304 3,506 
209 
2,974 
323 3,668 
225 
3,011 
432 
Average stay (day) 3.5 3.5 3.5 3.5 3.5 3.5 
No. of hotels 
Foreign-owned  .. 
.. .. 
.. 33 
1 34 
1 34 
1 40 
1 
No. of rooms 
% of occupancy  .. 
.. .. 
.. 2,998 
48.38 3,008 
47.20 3,008 
45.97 3,224 
53.11 
No. of tour operators 26 24 24 24 17 20 
.. Not available. 
Source: Information provided by the authorities.  
4.130.  Brunei does not have a comprehensive legal framework for tourism. The Brunei Tourism 
Board (BTB) is responsible for coordinating with various government agencies to promote the sector. The Tourism Development Department, under MIPR, is responsible for implementing 
                                               
139 NMCTS is a wholly-owned subsidiary of the Philippines-based port operator International Container 
Terminal Services Inc. ICTSI on line information. Viewed at: http://www.ictsi.com/operations/new-muara-
container-terminal-services-sdn-bhd-nmcts-negara-brunei-darussalam/ .  
140 Oxford Business Group online information. Viewed at: 
http://www.oxfordbusinessgroup.com/news/change-air-regional-and-local-regulatory-reforms-are-set-open-
sector .  
141 Ports Department online information. Viewed at: 
http://www.ports.gov.bn/news/2013/20130601.htm , and Oxford Business Group (2011).  
142 Other strategic projects are in the pipeline, including a consultanc y study on Port Masterplan and 
Land Use and a Dedicated Trailer Parkin g project, as well as the new tend er for a new operator for the Muara 
Container Terminal when the contract with New Mu ara Container Terminal Se rvices ends in 2015. 
143 Ports Department online information. Viewed at: 
http://www.ports.gov.bn/news/2013/20130322.htm .  WT/TPR/S/309/Rev.1 • Brunei Darussalam 
 
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  tourism-related policy. The Brunei Tourism Master Plan 2011-2015 identifies 25 initiatives and 
69 projects aimed at consolidating and diversifying Brunei's tourism products and enhancing capacity building, transport infrastructure, and the regulatory framework.  
4.131.  Holiday is the main reason for visiting Brunei, followed by business. Tourists are mainly 
from ASEAN and the Far East, in particular Malaysia and China. In addition, many visitors transit 
through Brunei International Airport or enter the country (by land or sea) for one-day visits.
144 In 
2011, RB cut several long-haul routes which had an impact on tourism development as long-haul 
flights represented 15% of total flight arrivals, and 90% of long-haul travellers were passengers in 
transit.  
4.132.  Brunei's tourism offer is based on nature and Islamic culture and heritage. Brunei’s 
rainforest (75% of total land) is amongst the top 10 in the world. Islamic tourism is developed in 
cooperation with Tourism Malaysia through joint-packages.145 Brunei has potential to develop 
cruise tourism and is taking steps to attract cruise liners (section 4.4.4.2).  
4.133.  Travel agent services are regulated 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.  
4.134.  Investors may apply to obtain loans at a pr eferential rate under the Enterprise Facilitation 
Scheme (section 3.3.1.3). In addition, they may claim income tax exemption for investment made 
in the tourism industry, other than hotels, for a period of 11 years (section 2.4.1.1). Since 1999, there have been 25 applications for EFS and three applications for MFS. 
4.135.  Brunei has made no GATS commitments in tourism services. It is a member of the UN 
World Tourism Organization. As part of the ASEAN Tourism Strategic Plan 2011-15, a Mutual Recognition Arrangement for Tourism Professionals was signed in 2009 to allow free movement of 
tourism professionals within ASEAN.
146 The MRA covers 32 job titles, ranging from housekeeping, 
front office, food and beverages services, and food  production for hotel division, travel agencies 
and tour operators for travel division.  
 
                                               
144 Department of Economic Planning and Development (2013a); Oxford Business Group (2013); and 
UNWTO 25th CAP-CSA Joint Meeting 12-14 April 2013. Viewed at: http://asiapacific.unwto.org/event/25th-
csacap-joint-meeting-unwto-conference-sustainable-tourism-development .  
145 Oxford Business Group (2013.  
146 ASEAN online information. Viewed at: http://www.asean.org/communities/asean-economic-
community/category/other-documents-11 .  WT/TPR/S/309/Rev.1 • Brunei Darussalam  
 
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WTO (2008), Trade Policy Review of Brunei Darussalam , Geneva. WT/TPR/S/309/Rev.1 • Brunei Darussalam  
 
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  5  APPENDIX TABLES 
Table A1. 1 Merchandise trade by product group, 2008-13 
 2008  2009  2010  2011 2012 2013  
Total exports (US$ million) 10,543.5 7,173.9 8,887.1 12,463.9 12,979.7 11,431.7 
 (% of total) 
Food and live animals 0.0 0.0 0.0 0.0 0.0 0.1 
Beverages and tobacco 0.0 0.0 0.0 0.0 0.0 0.0 
Crude material, inedible except fuel 0.1 0.1 0.2 0.1 0.1 0.1 
Mineral fuels, lubricants and related 
materials 97.8 96.1 95.2 95.4 95.8 96.5 
Crude petroleum 53.2 47.7 50.4 50.8 48.2 44.7 
Liquefied natural gas 44.6 48.4 44.7 44.7 47.5 51.8 
Animal and vegetable oils and fats 0.0 0.0 0.0 0.0 0.0 0.0 
Chemicals 0.0 0.1 1.1 1.6 1.9 0.8 
Manufactured goods by materials 0.3 0.4 0.4 0.4 0.4 0.7 
Machinery and transport equipment 0.8 2.1 1.8 2.0 1.2 1.1 
Miscellaneous manufactured articles 0.9 1.1 1.2 0.4 0.4 0.4 
Other 0.1 0.1 0.2 0.1 0.1 0.2 
Total imports (US$ million) 2,573.6 2,400.6 2,535.6 3,600.0 3,565.0 3,611.60 
 (% of total) 
Food and live animals 12.3 2.1 14.3 12.4 13.5 13.3 
Beverages and tobacco 2.1 2.3 2.2 1.3 1.5 1.4 
Crude material, inedible except fuel 0.6 1.0 1.2 1.4 1.4 1.1 
Mineral fuels, lubricants and related 
materials 2.6 3.2 5.1 7.9 10.3 7.5 
Animal and vegetable oils and fats 0.5 0.3 0.4 0.4 0.4 0.3 
Chemicals 7.2 8.0 8.9 6.5 7.3 8.0 
Manufactured goods by materials 22.0 22.4 20.3 19.6 23.9 20.4 
Machinery and transport equipment 43.8 39.6 36.1 42.5 31.1 36.6 
Miscellaneous manufactured articles 8.3 10.2 10.7 7.4 9.8 10.6 
Other 0.6 0.9 0.9 0.6 0.9 0.8 
Source: WTO Secretariat calculations, based on fi gures taken from the Brunei Darussalam Statistical 
Yearbook 2012; and data provided by the authorities.  WT/TPR/S/309/Rev.1 • Brunei Darussalam  
 
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  Table A1. 2 Merchandise trade by destination and origin, 2008-13 
 2008  2009  2010  2011 2012 2013  
Total exports (US$ million) 10,543.5 7,173.7 8,887.1 12,464.0 12,979.7 11,431.7 
  (% of total)  
ASEAN 24.2 17.1 12.4 13.9 14.7 23.2 
Viet Nam 0.0 0.0 0.1 1.5 4.6 5.3 
Thailand 0.8 1.9 0.9 0.8 3.6 4.2 
Indonesia 20.0 10.8 7.1 6.8 3.5 4.7 
Singapore 1.7 2.6 2.8 1.8 1.8 4.4 
Malaysia 0.3 1.6 1.5 3.0 0.7 3.9 
Philippines 1.4 0.3 0.1 0.1 0.5 0.7 
Japan 43.2 46.1 43.5 43.4 44.1 39.8 
Korea, Rep. of 14.8 11.6 16.7 16.0 15.7 16.3 
India 3.2 8.6 5.6 8.1 8.9 7.6 
Australia 10.4 7.3 10.3 9.9 7.5 7.3 
New Zealand 3.0 4.4 4.2 3.6 5.1 4.1 
China 0.4 4.0 6.6 4.3 2.7 1.4 
United States 0.6 0.6 0.2 0.1 0.7 0.1 
Chinese Taipei 0.0 0.0 0.1 0.3 0.3 0.1 
EU-27 0.1 0.2 0.2 0.2 0.2 0.1 
Hong Kong, China 0.0 0.0 0.2 0.1 0.0 0.0 
Norway 0.0 0.0 0.0 0.0 0.0 0.0 
United Arab Emirates 0.0 0.0 0.0 0.0 0.0 0.0 
Canada 0.0 0.0 0.0 0.0 0.0 0.0 
Other 0.0 0.0 0.0 0.2 0.0 0.0 
Total imports (US$ million) 2,573.6 2,400.6 2,535.6 3,600.0 3,565.0 3,611.6 
 (% of total) 
ASEAN 47.9 51.8 51.2 44.7 52.3 50.9 
Singapore 20.4 25.6 19.1 19.5 23.6 19.1 
Malaysia 18.7 19.4 23.6 18.5 19.9 21.9 
Thailand 5.2 4.0 5.4 4.2 5.8 5.0 
Indonesia 2.7 2.4 2.6 2.0 2.3 4.3 
Viet Nam 0.1 0.2 0.2 0.2 0.3 0.3 
Philippines 0.7 0.3 0.3 0.3 0.3 0.3 
Myanmar 0.1 0.0 0.0 0.0 0.0 0.0 
China 6.9 5.9 7.8 9.2 11.4 11.3 
EU-27 10.4 10.3 10.2 7.8 9.5 9.3 
United States 13.7 13.0 9.7 9.8 7.8 11.9 
Japan 8.5 8.9 10.0 5.8 7.5 5.8 
Korea, Rep. of 3.2 2.5 2.2 16.0 3.8 3.4 
Chinese Taipei 1.8 1.6 1.9 1.6 1.4 1.1 
Australia 1.4 1.5 1.9 1.3 1.4 1.4 
Hong Kong, China 2.6 0.9 1.1 0.7 1.3 1.1 
India 0.8 1.1 0.9 0.8 1.0 1.0 
Canada 0.3 0.3 0.3 0.2 0.3 0.3 
Switzerland 0.2 0.2 0.3 0.3 0.3 0.3 
New Zealand 0.5 0.4 0.5 0.4 0.3 0.3 
Brazil 0.1 0.0 0.0 0.0 0.2 0.1 
United Arab Emirates 0.4 0.2 0.2 0.1 0.2 0.3 
Other 1.4 1.4 1.8 1.2 1.4 1.7 
Source: WTO Secretariat calculations, based on figures taken from the Brunei Darussalam Statistical 
Yearbook 2012 , and data provided by the authorities.  WT/TPR/S/309/Rev.1 • Brunei Darussalam  
 
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  Table A2. 1 Main trade-related legislation, 2014 
Subject Acts and orders Chapter or 
Gazette  ref. Entry into 
force Last 
amended  
Air transport Airport Passenger Service Charge Act  Chapter 188 1999  
Civil Aviation Order 2006 (repeals Air 
Navigation Act (Chapter 113)) S 63/06 2006  
Business 
environment Arbitration Order 2009 (repeals Arbitration 
Act (Chapter 173)) S 34/09 2010  
Business Names Act  Chapter 92 1958 2012 
Companies Act  Chapter 39 1957 2012 
Co-operative Societies Act (as amended)  Chapter 84 1975 2012 
Criminal Asset Recovery Order 2012 (repeals 
the Anti-Money Laundering Act 
(Chapter 209)) S 47/12 2012  
Electronic Transaction Act  Chapter 196 2001  
International Arbitration Order 2009 S 35/09 2010  
International Business Companies Order 2000  S 56/00 2000 2013 
International Limited Partnership Order 2000 S 45/00 2000 2011 
International Trusts Order 2000  S 55/00 2000 2011 
Miscellaneous Licences Act Chapter 127 1983 2011 
Registered Agents and Trustees Licensing 
Order 2000 S 54/00 2000  
Limited Liability Partnership Order 2010 S117/10 Not yet in 
force  
Competition Consumer Protection (Fair Trading) 
Order 2011 S 64/11 2012  
Monopolies Act (as amended)  Chapter 73 1932  
Customs Customs Order 2006 (repeals Customs Act 
(Chapter 36)) S 39/06 2006 2013 
Excise Order 2006 (repeals Excise Act 
(Chapter 37))  S 40/06 2006  
Energy Electricity Act Chapter 71 1973  
Financial  
services  Autoriti Monetari Brunei Darussalam 
Order 2010  S 103/10 2011 2012 
Banking Order 2006  S 45/06 2006 2011 
Deposit Protection Order 2010  S 110/10 2011 2012 
Finance Companies Act  Chapter 89 1973 2006 
Hire Purchase Order 2006  S 44/06 2006 2011 
Insurance Order 2006  S 48/06 2006 2011 
International Banking Order 2000  S 53/00 2000 2011 
International Insurance and Takaful 
Order 2002  S 43/02 2002 2011 
Islamic Banking Order 2008 (repeals Islamic 
Banking Act (Chapter 168))  S 96/08 2008 2011 
Money-Changing and Remittance Businesses 
Act  Chapter 174  1995 2011 
Moneylenders Act  Chapter 62 1922 2011 
Pawnbrokers Order 2002  S 60/02 2005 2011 
Securities Market Order 2013 (repeals Mutual 
Funds Order 2001 and Securities Order 2001) S 59/13 2013  
Takaful Order 2008  S 100/08 2008 2011 
Fisheries  Brunei Darussalam Fishery Limits Act 
(as amended) Chapter 130 1983 2010 
Fisheries Order 2009 (repeals Fisheries Act 
(Chapter 61)) (as amended) S 25/09 2009 2010 
Forestry  Forest Act (as amended) Chapter 46 1934 2007 
Government 
procurement  Financial Regulations 327-340  n.a. 1983  
Hydrocarbons 
and mining  Petroleum (Pipe-Lines) Act Chapter 45 1920  
Mining Act Chapter 42 1920  
Petroleum Mining Act Chapter 44 1963  
Investment  Investment Incentives Order 2001 (repeals 
Investment Incentives Act (Chapter 97))  S 48/01 2001 2011 WT/TPR/S/309/Rev.1 • Brunei Darussalam  
 
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  Subject Acts and orders Chapter or 
Gazette  ref. Entry into 
force Last 
amended  
IPR Emergency (Copyright) Order 1999  S 14/00 2000 2013 
Emergency (Industrial Designs) Order 1999  S 7/00 2000  
Emergency (Layout Design) Order 1999 S 8/00 2000  
Merchandise Marks Act  Chapter 96 1953  
Patents Order 2011 (repealed Inventions Act 
(Chapter 72)) S 57/11 2012  
Trade Marks Act  Chapter 98 2000  
Manufacturing Industrial Co-ordination Order 2001 S 44/01 2001  
Maritime 
transport Merchant Shipping Order 2002 (repeals 
Merchant Shipping Act (Chapter 145)) S 27/02 2002 2009 
Ports Act  Chapter 144 1986 2005 
Price control  Price Control Act  Chapter 142 1974 2012 
SPS  Agricultural Pests and Noxious Plants Act Chapter 43 1971  
Halal Meat Act  Chapter 183 1999 2010 
Infectious Diseases Act (repeals Quarantine 
and Prevention of Disease Act (Chapter 47) Chapter 204 2003 2009 
Poisons Act  Chapter 114 1957 1996 
Taxation Income Tax (Petroleum) Act (as amended) Chapter 119 1963 2012 
Income Tax Act (as amended) Chapter 35  1949 2013 
TBT  Halal Certificate and Halal Label Order 2005 S 39/05 2008 2012 
Misuse of Drugs Act  Chapter 27  1978  
Public Health (Food) Act  Chapter 182 2001 2012 
Tobacco Order 2005 S 49/05 2008  
Telecom  Telecommunications Order 2001 (repeals 
Telecommunications Act (Chapter 54)) S 38/01 2006  
Tourism  Travel Agent Act Chapter 103 1982 2012 
n.a. Not applicable.  
Note: Legislation is passed by the Sultan as orders  and published in the Government Gazette Part II. 
Orders are converted into acts after revision by the Attorney General's Chambers (AGC) and 
incorporated into the Laws of Brunei. Currently, the Laws of Brunei compiles 220 Acts (referred to as Chapter). Orders and Acts have the same legal effect and are equally enforceable. (ASEAN Law 
Association online information, "Chapt er 2: Sources of Law". Viewed at: 
http://www.aseanlawassociation.org/legal-brunei.html ; and information provided by the 
authorities).  
Source: WTO Secretariat, based on AGC Legislation Online. Viewed at: http://www.agc.gov.bn ; and 
information provided by the authorities.  WT/TPR/S/309/Rev.1 • Brunei Darussalam  
 
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  Table A2. 2 RTAs that entered into force during 2008-14 
ASEAN member States, Australi a, and New Zealand (AANZFTA) 
Title Agreement Establishing the ASEAN-Australia-New Zealand Free Trade Area 
Parties ASEAN, Australia, New Zealand 
Date of signature/entry into 
force  February 2009/January 2012  
End of transition period 2026  
Services covered Positive list approach to sche duling of services sectors in Annex 3 of the 
FTA. Specific commitments made in 8 out of 11 sectors identified in the Services Sectoral Classification List (GATT document MTN.GNS/W/120, 
10 July 1991). No commitments made on: distribution; environmental; and 
recreational, cultural and sporting services. Other commitments made on energy services 
Selected features Advance origin/classification/valuation ruling on request; trade in services; 
investment; movement of natural persons; dispute settlement; intellectual 
property 
WTO consideration status  Factua l presentation not distributed 
Brunei's merchandise trade 
with Australia and 
New Zealand (2013) Australia: 1% of total impo rts; 7.3% of total exports 
New Zealand: 0.1% of total imports; 4.1% of total exports 
WTO document series WT/REG284/N/1 and S/C/N/545, 9 April 2010 
ASEAN member States and India 
Title Agreement on Trade in Goods (falling under the Framework Agreement on 
Comprehensive Economic Co-operation between ASEAN and the Republic of India,2003, as amended in 2009) 
Parties ASEAN, India 
Date of signature/entry into force Goods: October 2009/June 2010 
Services: July 2014/not yet in force  
End of transition period 2021 
Services covered Positive list appr oach to scheduling of services 
WTO consideration status Factual presentation not distributed 
Brunei's merchandise trade 
with India (2013) 1% of total imports; 7.6% of total exports 
WTO document series WT/COMTD/N/35, 23 August 2010 
ASEAN member States and Japan 
Title Agreement on Comprehensive Ec onomic Partnership Among Japan and 
Member States of ASEAN 
Parties ASEAN, Japan 
Date of signature/entry into force Goods: March 2008/not yet in force 
Services: under negotiation 
End of transition period 2018 
Selected features Agreement applies to goods on ly; provisions on services and investment are 
under negotiation 
WTO consideration status Factual presentation not distributed 
Brunei's merchandise trade with Japan (2013) 5.8% of total imports; 39.8% of total exports 
WTO document series WT/REG277/N1, 14 December 2009, and WT/REG277/N2, 27 July 2011. 
ASEAN member States and the Republic of Korea 
Title Agreement on Trade in Goods (falling under the 2005 Framework 
Agreement on Comprehensive Econ omic Co-operation among the 
Governments of the Republ ic of Korea and ASEAN) 
Parties ASEAN, Korea 
Date of signature/entry into 
force Goods: August 2006/January 2010 
Services: November 2008/May 2009 
End of transition period 2016  
Services covered Positive list approach to sche duling of services sectors in Annex/SC1 of the 
FTA. Specific commitments in 8 out of 11 sectors identified in the Services 
Sectoral Classification List (GATT document MTN.GNS/W/120, 10 July 1991). No commitments made on: distribution; environmental; and, recreational, cultural and sporting services. Other commitments made on energy services 
Selected features Transitional safeguard;  dispute settlement  
WTO consideration status Factua l presentation not distributed 
Brunei's merchandise trade 
with Korea (2013) 3.4% of total imports; 16.3% of total exports 
WTO document series WT/REG287/N/1; WT/COMTD/N/33; S/C/N/559; S/C/N/560, 8 July 2010; 
S/C/N/559/Add.1; S/C/N/560/Add.1, 3 May 2011 WT/TPR/S/309/Rev.1 • Brunei Darussalam  
 
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  Brunei-Japan  
Title Agreement between Japan and Br unei Darussalam for an Economic 
Partnership 
Parties Brunei and Japan 
Date of signature/entry into force  18 June 2007/31 July 2008  
End of transition period 2023  
Services covered Positive list approach to sche duling of services sectors in Annex 8 of the 
FTA. Specific commitments made in 9 out of 11 sectors identified in the Services Sectoral Classification List  (GATT document MTN.GNS/W/120, 10 
July 1991). No commitments made on: environmental; and recreational, cultural and sporting services. Other commitments made on energy services 
Selected features Bilateral safeguard measures; investment (negative list approach to 
scheduling of liberalization commitment s); energy, improvement of business 
environment, customs procedures and cooperation in areas such as 
agriculture, forestry and fisherie s, environment and human resource 
development 
WTO consideration status  Factual presentation completed  
Brunei's merchandise trade 
with Japan (2013) 5.8% of total imports; 39.8% of total exports 
WTO document series WT/REG244/N/1 and S/C/N/466, 4 August 2008; WT/REG244/1, 
6 July 2009; WT/REG244/2, 4 September 2009; WT/REG244/3, 15 October 2009; WT/REG244/M/1, 28 September 2009; WT/REG244/M/1, 28 September 2009 
Source: WTO Secretariat and informatio n provided by the authorities.  WT/TPR/S/309/Rev.1 • Brunei Darussalam  
 
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  Table A4. 1 Modalities of bilate ral air transport agreements 
Partner 
Date of 
signature 
5th freedom 
7th freedom  
Cabotage 
Cooperation 
Designation 
Withholdinga 
Pricingb 
Capacityc 
Exchange of 
statistics 
Air 
liberalization 
index  
Australia 24.03.2004 Yes No No Yes Multiple  PPoB DD PD Yes 27.0 
Austria 13.02.1997 No No No No Multiple SOEC DA PD Yes 4.0 
Bahrain, Kingdom of 27.06.1990 No No No No Single SOEC DA PD Yes 0.0 
Belgium 18.02.1994 Yes No No No Single SOEC DA PD Yes 6.0 
Cambodia 19.08.2000 Yes No No No Multiple SOEC DA PD Yes 10.0 
China 05.05.1993 No No No No Multiple SOEC DA PD Yes 4.0 
Egypt 08.11.1993 No No No No Multiple n.a. DA PD Yes 4.0 
Germany 27.04.2000 Yes No No No Multiple CoI CoO PD Yes 17.0 
Hong Kong, China 09.01.1989 No No No No Multiple PPoB DA PD Yes 12.0 
India 06.11.1995 Yes No No No Multiple SOEC DA PD Yes 10.0 
Indonesia 24.07.1986 Yes No No No Single SOEC DA B1 Yes 10.0 
Japan 28.10.2011 Yes No No Yes Multiple SOEC ZP FD Yes 26.5 
Korea, Republic of 05.08.1992 No No No No Multiple SOEC DA B1 Yes 8.0 
Kuwait, State of 14.11.1994 Yes No No No Single SOEC DA PD Yes 6.0 
Lao PDR  30.04.1998 Yes No No No Multiple SOEC DA PD Yes 10.0 
Macao, China 24.05.1998 No No No No Single PPoB DD PD Yes 14.0 
Malaysia 23.06.1994 Yes No No No Multiple SOEC DA B1 Yes 14.0 
Maldives 03.05.1986 Yes No No No Single SOEC DA B1 Yes 10.0 
Malta  26.11.1996 .. .. .. .. .. .. .. .. .. .. 
Myanmar 03.08.1995 Yes No No No Multiple PPoB DA PD Yes 18.0 
Nepal 10.07.1986 Yes No No No Single SOEC DA PD Yes 6.0 
Netherlands 17.01.1996 No No No No Single SOEC DA PD Yes 0.0 
New Zealand 04.03.1999 Yes Yes Yes Yes Multiple PPoB ZP FD No 50.0 
Oman 10.09.1988 Yes No No No Single SOEC DA PD Yes 6.0 
Pakistan 29.12.1987 Yes No No No Single SOEC DA PD Yes 6.0 
Philippines 24.08.1987 Yes No No No Single SOEC DA B1 Yes 10.0 
Qatar 12.11.1994 No No No No Multiple SOEC DA PD Yes 4.0 
Russian Federation 14.05.1998 No No No No Multiple SOEC DA PD Yes 4.0 
Saudi Arabia, Kingdom of 09.02.1992 Yes No No No Single SOEC DA PD Yes 6.0 
Singapore 24.05.1997 Yes Yes No Yes Multiple SOEC DD FD No 34.0 
Switzerland 22.11.1994 Yes No No No Single SOEC DA PD Yes 6.0 
Thailand 13.01.1987 Yes No No No Single SOEC DA PD Yes 6.0 
United Arab Emirates 29.03.1993 Yes No No No Multiple SOEC DA PD Yes 10.0 
United Kingdom 23.11.2007 No No No Yes Multiple SOEC DD FD No 22.0 
United States 20.06.1997 Yes No No Yes Multiple SOEC DD FD No 28.0 
Viet Nam 28.11.1991 No No No No Single SOEC DA PD Yes 0.0 
n.a. Not available.  
a CoI: community of interest. PPoB: principal pl ace of business. SOEC: substantial ownership and 
effective control.  
b CoO: country of origin. DA: double approval . DD: double disapproval. ZP: zone pricing.  
c B1: Bermuda I. FD: free determin ation. PD: pre-determination. 
Source: WTO ASAP, and information provided by the authorities.  
 
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