Brunei Darussalam WT/TPR/S/196 
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III. TRADE POLICIES AND PRACTICES BY MEASURE 
(1) OVERVIEW  
1. Since its previous Trade Policy Review in 2001,  Brunei has, by and large, maintained a 
relatively open trading system.  It has continued to reduce its already low tariff rates under ASEAN 
and more recent preferential agreements, although imports of a few products are still subject to 
non-tariff restrictions.  
2. Brunei's applied MFN tariffs average 4.8% in  2007:  zero for agriculture and 5.4% for 
non-agricultural products, and they range from 0% to 30%.  Almost 99% of tariff lines are subject to ad valorem  rates;  131 carry specific rates of duty, main ly on matches, cigarettes, coffee, tea, and 
petroleum oils and lubricants.  As they tend to conceal relatively high ad valorem  equivalents, 
estimates of which were not available, it is likely the inclusion of these specific duties in the tariff 
average would raise Brunei's overall level of tariff protection.  Brunei has bound nearly 93% of its 
tariff lines at the WTO and, while the average applied tariff rate is  low, the average bound rate is 
25.8%, leaving a large gap between the applied and bo und rates.  This gap can bring about uncertainty 
for traders and other economic agents as it provides sc ope for the authorities to raise applied tariffs.  
Brunei has not made use of this during the period under review.   
3. Brunei has continued to reduce its preferentia l tariff rates on products included under the 
ASEAN CEPT.  Overall, Brunei's average CEPT tariff rate is 2.4%, half of the average applied MFN 
rate.  Differences between the CEPT and MFN tariffs  exist mainly in plastic and rubber products, 
machinery, transport equipment, and precision inst ruments.  As a result of the Trans-Pacific SEP 
Agreement (with Chile, New Zealand, and Singapo re), Brunei will bind its current MFN applied 
zero rates at zero and eliminate all the tariffs that  it applies to other products by 2015 except for a 
short list of products, such as alcohol, tobacco, a nd firearms, which it seeks to exempt on moral, 
human health, and security grounds. Under the Brune i-Japan EPA, due to enter into force in 2007, 
Brunei is committed to eliminating tariffs on a ra nge of products, including Japanese automobiles and 
auto parts, on which the rate is currently set at 20%.    
4. Although Brunei's tariff barriers are relativel y low, a number of  import prohibitions, 
restrictions, and licensing requirements for health, security, and moral reasons have remained in place 
during the review period.  In addition, a few pr oducts (e.g. rice, sugar) are still subject to export 
restrictions, mainly for security of domestic suppl y;  restrictions are maintained on timber for 
environmental reasons.  There are no mandatory standards (technical regulations) in Brunei;  there are 
41 voluntary standards relating to construction, and one in the food sector.  There is still no national 
body for setting standards in Brunei;  the Construc tion Planning and Research Unit, based in the 
Ministry of Development, coordinates for st andards and conformity assessment activities.   
5. Government procurement remains an importa nt instrument of economic policy, and 
government construction activities, in particular, pl ay a major part not only in the construction 
industry, but in the economy as a whole.  Brune i is not a signatory to the WTO Government 
Procurement Agreement.  
6. Brunei continues to use extensive tax and other incentives to encourage i nvestment in priority 
sectors and production for export.  In the absence of personal and value-added taxes, the corporate tax 
remains a leading instrument of industrial policy, offering tax exemptions for up to eight years for 
companies investing in a broad range of activ ities under the pioneer status programme;  these 
exemptions are aimed at developing small and medium-sized enterprises (SMEs), which make up 
nearly 95% of enterprises in Brunei.  Various  National Development Plans, including the 8
th ,which WT/TPR/S/196 Trade Policy Review 
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covered the period 2001-05, have attempted to increa se the diversification of the economy, the key to 
Brunei's medium-term growth prospects.  However,  despite the use of tax and non-tax incentives 
(whose cost-effectiveness is questionable), the non-oil, SME-dominated private sector remains 
embryonic and largely depende nt on government spending on construction and services. 
7. To protect consumers, price controls are ma intained on a number of products, including rice, 
sugar, motor vehicles, and cigarettes.  There is no specific legislation on competition, although Brunei 
is exploring the possibility of introducing one in line with APEC principles;  efforts have been 
undertaken to increase competition through deregulation and corporatization in certain sectors, such 
as telecommunications.  Brunei does not have its ow n tradeable stock exchange, and there is no 
specialized corporate governance code or takeover code.     
8. Brunei has strengthened its legal framework fo r IPR protection and is considering accession 
to the WIPO Copyright Treaty and Performances and Phonograms Treaty, which address copyrighted 
works in a digital environment.  However, it still needs to implement its Patent Order (which dates 
from 1999) in order to provide patent protection for, inter alia,  pharmaceutical and agricultural 
products and processes.  Brunei does not appear to ha ve a strong track record in IPR enforcement, 
partly due to a lack of capacity, and would benefit from targeted technical assistance on TRIPS.    
(2) MEASURES DIRECTLY AFFECTING IMPORTS  
(i) Customs procedures 
9. During the period under review, Brunei Customs ha s introduced a several improvements in its  
procedures, in line with APEC trade facilitation guidelines as outlined in Table III.1.  Brunei has 
amended legislation and streamlined administrative practices in order to, inter alia :  harmonize its 
tariff nomenclature;  make customs-related inform ation more readily available to traders and the 
public;  align its laws with the WTO agreements  on customs valuation and intellectual property 
protection;  improve its appeal procedures and advance tariff classification ruling systems;  provide facilities for temporary importation;  introduce ri sk-management techniques;  introduce the green 
channel/red channel mechanism for cargo into the Cu stoms Order 2006;  raise the level of integrity in 
customs administration;  and enhance computerization by adopting the UN/EDIFACT
1 standard and 
reducing the requirement for paper documents.  Al so, Brunei is working with other ASEAN members 
to develop and put into opera tion by 2008 its national single  window to facilitate customs 
documentation procedures, cargo release, and clearance.2 
10. According to the authorities, several phases of the e-government initiative have been 
completed and others are in progress.  The aim of the initiative is to provide an infrastructure using IT 
as a platform for paperless transactions.  Th e Customs and Excise Department now accepts 
declarations using electronic media and is participating in the ASEAN single window project.  
11. All imports into Brunei must be accompanied by:  a bill of lading/deliv ery order or airway 
bill;  packing list;  commercial invoice, and at least  three copies of the customs declaration form, 
which must include the number and description of packages;  marks and numbers of individual 
packages;  detailed description of the goods being imported;  gross and net weights or quantities of 
                                                      
1 The UN/EDIFACT (United Nations rules for Electronic Data Interchange for Administration, 
Commerce and Transpor t) comprise a set of standards, directories,  and guidelines for th e electronic interchange 
of structured data, and in particular that relate to trade in goods or services, between independent computerized 
information systems. 
2 WTO document TN/TF/W/105, 26 May 2006, "Experience on the Development of the ASEAN 
Single Window".  Brunei Darussalam WT/TPR/S/196 
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packages;  value (f.o.b. and c.i.f.);  place of shipment and destination;  and country of origin.  The 
invoice must be signed by the exporter or seller.  If applicable, an exemption of duty determination 
issued by the Economic Development Board and a certificate of origin may be requested.   
Table III.1  
Main APEC guidelines on customs proce dures and actions taken by Brunei since 2001 
APEC guidelinea Actions taken by Brunei 
Greater public availability of information, 
including implementation of APEC 
Leaders' Transparency Standards on 
Customs Procedures (2002 Statement of 
Los Cabos, Mexico) -  Brunei Darussalam Customs continue to update information on customs website, that 
will include Customs Laws, tariff and proce dures, which are currently available to 
public.  Announcement of changes with regard  to customs procedures is made through 
customs circulars and briefings to importe rs and forwarders.  A hotline was also 
provided to enable the public to lodge an y complaint related to illegal activities or 
contraband to Customs. 
-  In 2004, some of the information related to customs procedures made available through 
the ASEAN customs website (http://www.asean.or.id/economic/customs/info_ 
brunei.htm).  Legislation and most of th e procedures available on a hard copy. 
Alignment with UN/EDIFACT 
International Standards for Electronic 
Commerce/Paperless Trading -  Brunei Darussalam introduced computeri zation and information system known as 
Customs Information Control System (CCIS).  The main function of the system is the 
processing of customs import/export declara tions at the major entry points/customs 
office.  By 2001, the network system of the CCIS expanded to nearly all customs entry 
points. 
-  Finalizing the Department's IS/IT Plan 2004-2009 for the implementation of 
e-Government, which include the following: 
 - Submission of importer/exporter data (customs declaration) electronically; 
 - Submission of manifest information electronically;  - Exchange of information electroni cally with other government agencies; 
 - Online payment;  and  - Development of web-services porta l (i.e. online application for permits, 
drawbacks, registrations etc.). 
Implementation of Clear Appeals 
Provisions - The appeal provision is contained in th e Brunei Darussalam Customs Act 1984, in 
which any person aggrieved by Controller's decision except specifically provided that 
such decision is at the absolute discretion of  the Controller, may a ppeal therefrom to the 
Minister of Finance whose decision shall be final. 
- Brunei Darussalam will review its current a ppeal provision in order to conform to the 
international practice. 
Alignment with WTO Valuation Agreement - Brunei Darussalam implemented the WTO Valuation Agreement in September 2001 
after the five-year delay permitted by the WTO. 
- The Customs (Amendment) Order, 2001 came into force on 1 September 2001 and 
inserted a new definition of customs valu e into Customs Act and provided for the 
keeping of business record.  The audit and ex amination of records, conditions for entry 
into buildings, the retention of documen ts obtained during a search and seized 
documents subjects to court order and pro ceedings.  At the same time the Customs 
(Valuation of Imported Goods) Rules, 2001 t ook effect.  These Rules applied the WTO 
Valuation Agreement as the method for valuing imported goods (on the c.i.f. basis). 
Provision of Temporary Importation Facilities (APEC economies will provide 
facilities for temporary importation, by 
taking such action as acceding, where 
appropriate, to the Customs Convention on the A.T.A. Carnet for the Temporary 
Admission of Goods (the A.T.A. 
Convention)) - Brunei Customs is in the process of updati ng the current facilitation to align with the 
international practices on temporary importation.   Efforts have also been made to study 
A.T.A. Carnet and Temporary Import Provisions and the legal aspects from the member 
APEC economies. 
- Goods for trade sample, exhibition and demonstration are allowed for temporary 
importation without payment of duty on condition that they are to be re-exported within 
six months from the date of importation and they must be covered by a Customs Import 
Declaration.  If the goods are not re-exporte d after the expiry date of the permission 
granted, duty will become payable.  A secu rity deposit is required to cover the potential 
customs duty on the goods temporarily imported. 
Table III.1 (cont'd) WT/TPR/S/196 Trade Policy Review 
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APEC guidelinea Actions taken by Brunei 
Implementation of an Advance 
Classification Ruling System - Brunei Darussalam received technical assi stance on ACR in June 2000 by experts from 
Korea and New Zealand.  The Committee on Cu stoms Procedures is in the process of 
drafting legislation.  Standa rd application forms for customs ruling on customs tariff and 
classification will be introduced for use by a pplicants requesting tari ff and classification. 
-  The Customs Matters Section is responsible  for the determination of customs tariff and 
classification and it is subject to request.  Under the provisions of the Customs Act 
1984, Brunei Customs Administ ration provides facilitation upon request either by 
writing or phone for the determinati on of tariff and classification. 
Implementation of Harmonized System 
Convention - Brunei Customs Administration implemen ted HS 2002 version.  In 1996, the HS 
Committee was set up to incorporate current ve rsion with the national tariff into the HS 
version 2002.  Brunei Darussalam is not a contracting party to the HS Convention. 
- In line with the commitment to ASE AN on the HS Convention, Brunei Customs 
Administration is incorporating the HS  version 2002 to ASEAN Harmonized Tariff 
Nomenclature (AHTN 2004). 
Adoption of Systematic Risk Management 
Techniques (to allow customs 
administrations to facilitate trade and travel while maintaining high-level border 
control) - All cargoes are subject to customs examin ation ranging from 10% to 100%.  Passengers 
and their belonging are subject to random insp ection (10% to 100% is still applied in the 
course of conducting the examination). 
- Brunei Darussalam Customs is in the pr ocess of studying the Risk Management 
Techniques through training and seminar attended by officer internals or overseas.  An 
Ad Hoc Committee has been set up to study  legal aspects and requirements of Risk 
Management Techniques. 
- Brunei Darussalam introduced Red and Green Channels at the International Airport. 
Integrity - Brunei Darussalam customs officers are subject to the Public Service Commission Act 
to uphold integrity among public servants (i ncluding customs officers) "11 Principal 
Work Ethic" introduced by the Public Se rvice Department and "Code of Conduct and 
Rules of Ethics" introduced to customs officers and customs personal. 
- A Discipline Committee has been set up with  the objectives among others, to deal with 
integrity of customs officials and penalties for non-compliance. 
a APEC economies have agreed to facilita te trade in the Asia-Pacific region by :  (a) Simplifying and harmonizing customs 
procedures;  (b) Encouraging the use of technologies and e-comm erce as productivity tools in keeping with developments of the 
new economy;  and (c) Enhancing cross-bor der cooperation in the movement of goods  and services to counter terrorism. 
Source:  APEC (2006), Brunei's Individual Action Plan 2006.  Viewed at:  http:// www.apec-iap.org/document/ 
BD_2006_Customs_Procedures.pdf. 
12. Importers must register with the port of entry.   Import permits are re quired for some products, 
including plants, animals, birds, fish, salt, suga r, rice, drugs, gambling machines, and used motor 
vehicle.  These are available from the relevant gove rnment ministries and departments.  In some 
cases, including for plants, animals and animal pr oducts, birds, and fish, import licences must be 
accompanied by sanitary or phytosanitary certifi cates from the exporting country.  All other goods, 
unless prohibited, can be importe d under open general licences.  
13. Customs decisions may be appealed under secti on 153 of the Customs Order 2006.  Authority 
for all customs decisions lies with the Controller of Cu stoms;  unless it is specifically stated that such 
decisions may only be made at the absolute discret ion of the Controller, appeals may be made to the 
Minister, whose decision is final. 
14. Brunei notified the WTO in 1995 that it has no laws pertaining to pre-shipment inspection.  
To date, no companies have provided pre- shipment inspection services in Brunei.  
(ii) Customs valuation and rules of origin 
(a) Customs valuation 
15. Brunei made use of the transitional measure under Article VII of the GATT 1994, which gave 
developing countries the right to delay application of this Article.  At the end of the transition period, Brunei Darussalam WT/TPR/S/196 
 Page 37 
 
 
Brunei informed the WTO that the legislati on on customs valuation had been gazetted and 
implemented and, with effect from 1 September 2001, the Customs and Excise Department would 
officially apply the Customs Valuation Code as contained in the Customs (Valuation of Imported 
Goods) Rules 2001 and amendments made to the Cust oms Act (Cap. 36) as contained in the Customs 
Order 2006.3   
(b) Rules of origin  
16. According to the authorities, there are no laws, regulations or administrative rulings on 
non-preferential rules of origin.  Preferential rule s of origin are applied under various preferential 
trading arrangements, notably ASEAN, the Trans-Pacific SEP and the Brunei-Japan EPA.  
17. Under the ASEAN CEPT local-content requireme nt a product is considered as originating 
from an ASEAN member country if at least 40% of the f.o.b. price of the finished good originates 
from any member country.  The requirement refe rs to both single country and cumulative ASEAN 
content.  There are also alternative substantial transformation rules, including:  process criterion for 
textiles and textile products;  change in chapter fo r wheat flour;  change of tariff sub-heading for 
wood-based products;  change in tariff classifi cation for certain aluminium products.  Tariff 
preferences under the CEPT scheme depend on certain conditions:  the product must be in the CEPT 
inclusion list of both the importing and exporting co untries and must have a CEPT tariff of 20% or 
below;  and the product must meet the local-conten t requirement of 40% or alternative substantial 
transformation rules.   
18. Under the Trans-Pacific SEP, the rules of origin take into account where the goods are 
produced and what materials are used in their producti on, to ensure that only goods originating in the 
territory of one of the three other parties are entitle d to preferential tariff treatment.  Generally, the 
product-specific rules on eligible goods  require substantial transformation in the territory of one of the 
parties, be i.e. a change in tariff classifica tion (CTC) between the imported or non-originating 
materials and the end product.  The CTC based on th e HS classification requires the product to have a 
different HS chapter, 4-digit or 6-digit HS head ing or subheading from the non-originating materials 
used in its production.  For a limited range of pr oducts regional-value content (RVC) is required, 
based on the transaction value of the good;  dependi ng on the product-specific rules, minimum local-
value content must be either 45% or 50% (for textile s, apparel and footwear).  For imports into Brunei 
under the Trans-Pacific SEP, it appears that trader s may opt for the rules of origin established under 
the AFTA.   
(iii) Applied tariff 
(a) Structure of the MFN tariff 
19. Brunei adopted the Harmonized Description and Coding System (HS) in 1992 although it is 
not a contracting party to the Convention.  Import du ties are assessed on the basis of c.i.f. value.  In 
2001, at the beginning of the review period, Brunei's applied MFN tariff was based on the 9-digit 
HS 96 nomenclature, consisting of 6,503 tariff lines ranging from 0% to 200%.  The 2004, 2006, and 
2007 tariff schedules are based on the 8-digit HS02 nomenclature consisting of 10,689 tariff lines, ranging from 0% to 30%.  According to the authorities, this change in nomenclature has not resulted in any tariff rates exceeding bindings.  Around 98.8% of the tariff is subject to ad valorem  rates while 
131 lines carry specific rates.  
                                                     
 
3The Customs Act (Cap. 36) was repealed by the Customs Order 2006, which entered into force on 
4 March 2006.   WT/TPR/S/196 Trade Policy Review 
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20. As information was not available on ad valorem  equivalents for the specific rates, the 
131 lines, which cover mainly cigarettes, alcoholic  beverages, coffee, tea, petroleum oils, and 
lubricants, are not included in the tariff analysis in this report.  Ad valorem  equivalents of specific 
rates tend to be high and are often used to conceal high rates of tariff.  According to the authorities, 
the preference for specific rates for these products  is based on their high rates of smuggling;  the 
specific rate is also considered to be administ ratively simpler for collecting duty.  Although the 
customs tariff is levied on a relatively small numb er of tariff lines, it accounted for around 3.6% of 
total tax revenue in 20064, from 4% in 2001.  For most of the tariff lines with specific rates, the 
authorities indicated that there are no or very few imports;  this may be b ecause they are prohibitively 
high in ad valorem  terms. 
21. In 2007, the simple average MFN tariff was 4.8%5, zero for agricultural products (both 
HS 1-24 and under the WTO definition of agricu lture) and 5.4% for in dustrial/non-agricultural 
products.  Tariff rates range from zero for several ag ricultural products to 30% for hair preparations 
and fireworks (6 lines in all in the 30% band).  In  general, basic foodstuffs  and goods for industrial 
use are exempted from import duties as are computer s and related products.  There are six tariff 
bands:  duty free, 5%, 10%, 15%, 20% and 30% (Chart III.1).  The majority of tariff lines (68.1%) are 
zero rated while 20.4% are subject to rates of  20%, including wood and wood products, boilers, 
machinery and mechanical appliances, electrical m achinery and appliances, vehicles and vehicle parts 
(except for heavy vehicles, which are taxed at  15%) and precision instruments and apparatus 
(Table AIII.1).  A significant number of tariff lines entail peaks;  over 21% of tariff lines exceed 
three times the simple average MFN tariff,  and 20.4% exceed 15% (Table III.2).   
22. Although the overall average applied MFN tariff is low, escalation is particularly pronounced 
in wood and furniture, fabricated metal products and machinery and chemicals, providing relatively 
higher effective protection to these industries (Cha rt III.2).  In the case of wood and furniture, the 
tariff on unprocessed and semi-processed products is c onsiderably higher than for finished products;  
this de-escalation provides higher protection for pr oducers of raw material and semi-processed goods 
in Brunei.  
23. Brunei does not maintain any tariff quotas. 
 
                                                      
 4 According to IMF figures, import taxes on international trade in 2005/06 amounted to B$125 million, 
divided into motor vehicle tax (55mn), tobacco (25) and others (26).    
5 As shown in Table III.2, there is a jump in the applied MFN average from 3.1% to 4.8% in 2004.  
According to analysis by the Secretaria t, this may be explained by the difference in the total number of tariff 
lines:  the schedules consisted of 6,503 and 10,689 tariff lines, respectively, for 2000 and 2004.  Rates have not 
actually increased;  on the contrary th ey have decreased, for example in the motor vehicle sector, but due to the 
splitting of lines (mainly where relativel y high tariffs exist), averages have gone up.  This can be illustrated by 
the example of HS chapter 44 (wood and wood products), which consisted of 71 tariff lines in 2000 of which 
47 were at 20% (representing 66.2% of all 71 lines) and 24  lines at 0% (representing 33.8% of all lines).  Since 
2004, the same chapter consists of 235 lines, of which 198 are at 20% (representing 84.3% of all lines) and 
37 are at 0% (representing 15.7%).  The average tariff of chapter 44 rose from 13.2% in 2000 to 16.9% since 
2004, as the share of lines at 20% is appreciably higher than in 2000.  Other chapters tend to show the same pattern.  Brunei Darussalam WT/TPR/S/196 
 Page 39 
 
 
(68.1%)
(8.2%).
(1.2%) (0.9%)(0.1%) (20.4%)
01,0002,0003,0004,0005,0006,0007,0008,000
Duty free 5% 10% 15% 20% 30%
Source:     WTO Secretariat calculations, based on data provided by the authorities of Brunei Darussalam.Chart III.1
Distribution of MFN tariff rates, 2007
Tariff rates 
Note:          Calculations exclude specific rates.  Figures in parentheses denote the share of total lines.Number of tariff lines
 
 
 
 
Table III.2 Brunei Darussalam's tariff structure, selected years 
(Per cent) 
  Applied MFN 
    2000 2004 2006 2007 Final 
bound 
ratea  
1. Bound tariff lines (% of all tariff lines) 94.4 92.8 92.8 92.8 92.8 
2. Simple average rate 3.1 4.8 4.8 4.8 25.8 
 Agricultural products (HS01-24) 0.0 0.0 0.0 0.0 23.4 
 Industrial products (HS25-97) 3.6 5.4 5.4 5.4 26.2 
 WTO agricultural products 0.0 0.0 0.0 0.0 23.5 
 WTO non-agricultural products 3.5 5.4 5.4 5.4 26.1 
 Textiles and clothing 0.5 0.8 0. 8 0.8 27.4 
3. Tariff quotas (% of all tariff lines) 0.0 0.0 0.0 0.0 0.0 
4. Domestic tariff "peaks" (% of all tariff lines)b 12.7 21.3 21.3 21.3 0.0 
5. International tariff "peaks" (% of all tariff lines)c 10.7 20.4 20.4 20.4 20.4 
6. Overall standard deviation of  tariff rates 9.4 8.1 8.1 8.1 8.7 
7. Coefficient of variation of tariff rates 3.1 1.7 1.7 1.7 0.3 
8. Duty-free tariff lines (% of all tariff lines) 79.0 68.1 68.1 68.1 0.0d 
Table III.2 (cont'd) WT/TPR/S/196 Trade Policy Review 
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  Applied MFN 
    2000 2004 2006 2007 Final 
bound 
ratea  
9. Non- ad valorem  tariffs (% of all tariff lines) 1.4 1.2 1.2 1.2 0.4 
10. Non- ad valorem  tariffs with no AVEs (% of all tariff lines) 1.4 1.2 1.2 1.2 0.4 
11. Nuisance applied rates (% of all tariff lines)e 0.0 0.0 0.0 0.0 0.0 
a Based on 2007 tariff schedule.  Implementation of the U.R. was reached in 1995.   Calculations on bound averages are based on 
9,924 bound tariff lines (representing 92.8% of total lines). 
b Domestic tariff peaks are defined as those exceeding three times the overall simple average applied rate. 
c International tariff peaks are defined as those exceeding 15%. d Negligible.  Only one tariff line is bound at zero. 
e Nuisance rates are those greater than zero, but less than or equal to 2%. 
Note: Excludes specific rates.  The 2000 tariff schedule is base d on 9-digit HS96 nomenclature consisting of 6,503 tariff lines  (ranging 
from 0% to 200%);  the 2004, 2006, and 2007 tariff schedules ar e based on 8-digit HS02 nomencla ture consisting of 10,689 tariff  
lines (ranging from 0% to 30%). 
Source :  WTO calculations, based on data provided by the authorities of Brunei Darussalam. 
n.a.n.a.02468101214161820
Food,
beverages and
tobaccoTextiles and
leather Wood and 
furniturePaper printing
and publishingChemicals Non-metallic
mineral
productsBasic metals Fabricated
metal products
and machineryOther
manufacturingPer centChart III.2
Tariff escalation by 2-digit ISIC industry, 2007
n.a.
Note:
Source :Not applicable.
Calculations exclude specific duties.
WTO Secretariat estimates, based on data provided by the authorities of Brunei Darussalam.Average rate in manufacturing
(4.9%)First stage of processing
Semi-processed
Fully processed
 
(b) Preferential tariffs 
24. Under the Customs Law, customs duties on imports  or exports may be changed by order of 
the Sultan, and subsequently published in the Government Gazette .  Brunei has adopted ASEAN trade 
agreements, which have been inco rporated into the following laws:  preferential rates applying to 
imports from other ASEAN countries are containe d in the Customs (ASEAN Common Effective 
Preferential Tariffs) (ASEAN Integration System of Preferences) Order 2006, and the Customs (ASEAN Common Effective Preferential Tariff) Orde r 2005, which was deemed to commence at the 
beginning of 2004 and repeals the Customs (ASEA N Common Effective Preferential Tariff) Order of Brunei Darussalam WT/TPR/S/196 
 Page 41 
 
 
1999.  Regarding the related agreement on the ASEAN-China FTA, Brunei introduced the Customs 
(Goods under the Early Harvest Programme) (Fra mework Agreement on Comprehensive Economic 
Cooperation between ASEAN and China) Order 2005.   
ASEAN 
25. As a member of ASEAN, Brunei participates in the CEPT scheme, which came into effect in 
1993.  ASEAN agreed to reduce tariffs to 0-5% ove r 15 years:  it is committed to eliminating all 
tariffs in the Inclusion List6 (IL) by 2010 for the ASEAN-6 (Brunei, Indonesia, Malaysia, Philippines, 
Singapore, and Thailand) and by 2015 for the ne w ASEAN countries (Cambodia, Laos, Myanmar, 
and Viet Nam).  For the ASEAN-6, 99.7% of tariff lines in the IL are currently at 0-5%;  65% of 
items in the list are at zero.  In Brunei's case, ove r 71% of tariff lines are duty free and nearly 22% are 
at 5% (Chart III.3).  The exception to the progra mme of reducing most tariffs to the 0-5% range 
appears to be transport equipment, for which th e average rate was 13.9% in 2006, well above the 
target range.  In addition, tea, coffee, alcoholic  products, and tobacco, which are excluded from CEPT 
reductions, carry specific rates of duty and are no t included in the CEPT analysis presented here.  
Brunei's CEPT tariff contains 10,689 lines at the HS nine-digit level of which 99.3% have ad valorem  
rates;  under 1% of lines, mainly relating to co ffee, tea, tobacco, alcohol, petroleum products and 
matches, carry specific rates of duty.  Overall, the CEPT tariff rate is half of the average applied MFN 
rate (Chart III.4).  The simple average rate accorded to other ASEAN members under the CEPT was 
2.4% in 2006, down from 2.6 % in 2004.  Diffe rences between average applied MFN and CEPT 
tariffs are mainly (by HS section) in plastic and rubber products, hides and skins, wood and wood 
articles, footwear and headgear, machinery, tr ansport equipment, and precision instruments.  
Other preferential agreements  
26. Under the Trans-Pacific SEP duties are to be eliminated on the majority of tariff lines upon 
entry into force of the agreement.  Brunei will bind its current MFN applied zero rates at zero and 
eliminate tariffs on other products by 2015, except for a short list of products, such as alcohol, 
tobacco and firearms, that it seeks to exempt on moral, human health, and security grounds.   
27. Upon the full implementation of the Brune i-Japan Economic Partnership Agreement 
(expected in 2007), Brunei will eliminate tariffs on a range of products, including automobiles and 
auto parts, which are currently set at 20%.  Also , the EPA entails tariff exemption for Japanese-made 
electronic and electrical appliances within five years of EPA approval.   
(iv) Tariff bindings  
28. Brunei has bound 92.8% of tariff lines.  A high percentage of lines are bound in most 
HS sections, the exceptions being prepared foods ( 04) at 88.7%, mineral products (05) at 93.4% and 
transport equipment (17) at 36%, (Chart III.5) .  Brunei did not sign the WTO Agreement on 
Information Technology Products.  In 2008, Brunei's overall bound rate was 25.8% (24.8% in 2000), 
23.4% for agriculture, and 26.2% for industrial produc ts.  In agriculture, tariff peak rates of 50% are 
found mainly in animal products, diary products, coffee and tea, and fruit and vegetables;  for 
non-agricultural products bound rates of 40% and above  are mainly in chemicals, leather products, 
wood and pulp, transport equipment, and electric machinery.  
                                                      
6 All manufactured products, including capital goods and agricultural products are covered under the 
CEPT scheme.  Only products in the General Exception List are exempted.  Products in the Temporary 
Exclusion List are temporarily excluded from the Inclusion List due to national sensitivity but will eventually be 
phased into the IL.  For details of which list a product is classified under, see the Consolidated 2006 CEPT Package.  Viewed at:  http://www.aseansec.org. WT/TPR/S/196 Trade Policy Review 
Page 42 
 
 
(71.2%)
(21.8%).
(0.0%) (0.1%) (0.0%) (6.2%)
01,0002,0003,0004,0005,0006,0007,0008,000
Duty free 5% 10% 15% 20% 30%
Source:     WTO Secretariat calculations, based on data provided by the authorities of Brunei Darussalam.Chart III.3
Distribution of CEPT tariff rates, 2006
Tariff rates 
Note:          Calculations exclude specific rates.  Figures in parentheses denote the share of total lines.Number of tariff lines
 
024681012141618
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21Chart III.4
MFN and CEPT tariff averages by HS section, 2006
Per cent
Source :   WTO Secretariat calculations, based on data provided by the authorities.MFN
CEPT
01 Live animals and prod.  
02 Vegetable products
03 Fats and oils      04 Prepared food, etc.05 Mineral products06 Chemicals and prod.07 Plastic and rubber
08 Hides and skins
09 Wood and articles10 Pulp, paper, etc.11 Textiles and articles12 Footwear, headgear13 Articles of stones
14 Precious stones, etc.
15 Base metals and prod.16 Machinery17 Transport equipment18 Precision instruments19 Arms and ammunition
20 Miscellaneous manuf.
21 Works of art, etc.
Note:      Calculations exclude specific rates.Average MFN rate
(4.8% )
Average CEPT rate
(2.4% )
 Brunei Darussalam WT/TPR/S/196 
 Page 43 
 
 
29. Although a high share of the tariff is bound, ther e remains a significant difference between 
the overall bound average of 25.8% and Brunei's 2007 applied MFN tariff of 4.8% (Table AIII.1).  
The difference is even greater in  agriculture where the bound average tariff is 23.4% compared with 
an MFN average of zero.  The gap imparts uncerta inty to traders and economic agents operating in 
Brunei by providing the Government with scope to raise tariff rates of products within their 
corresponding bound rates, although the authorities have stated that applied rates have not been raised 
during the review period.  Regarding agricultural products, the authorities maintain that the difference 
is necessary to address food security concerns and th at it would consult with, and notify, all affected 
parties in advance, should tariffs be raised.  
 
0102030405060708090100
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21
Source :  WTO Secretariat calculations, based on data provided by the authorities of Brunei Darussalam.Per centChart III.5                      
Share of bound tariff lines by HS section, 2007
01   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 & products
16   Machinery
17   Transport equipment18   Precision instrument19   Arms & ammunition
20   Miscellaneous manufactures21   Works of art, etc.
Total
 
 
(v) Other charges affecting imports  
30. Brunei's legislation on excise taxes is contained in the Excise Order 2006 (repealing the 
Excise Act), which allows the Minister of Fina nce to impose and revoke excise taxes on any goods 
deemed appropriate.  Currently, it appears that ex cise taxes are levied on locally produced Samsoo 
(including medicated Samsoo liquor) at the rate of B$5 per gallon (equal to 0.4546 decalitres, or 
B$11 per decalitre).  In comparison, imports of Samsoo face customs duties at rates of B$90 per 
decalitre for bottled Samsoo not exceeding 40% alc oholic strength by volume, and B$120 for other 
kinds of Samsoo. WT/TPR/S/196 Trade Policy Review 
Page 44 
 
 
(vi) Contingency measures 
31. Brunei informed the WTO Secretariat in 1996/97 that it does not have legislation or 
regulations on dumping, or relevant to the Agre ement on Subsidies and Countervailing Measures or 
those governing safeguard measures.  It appears that no anti-dumping, countervailing or safeguard 
measures are currently in force or have been taken in the period under review.  
(vii) Import prohibitions, restrictions, and licensing  
32. Brunei continues to maintain non-tariff measure s (NTMs) in the form of various import 
limitations, which are deemed necessary to protect  health, safety, security, the environment, and 
religion or to discharge Brunei's obligations under inte rnational agreements.  In general, the NTMs are 
in the form of prohibitions, restrictions, and licen sing, and they do not appear to have declined 
significantly since 2001.    
(a) Import prohibitions 
33. Import prohibitions are maintained on a lim ited number of products, including opium, 
indecent and obscene printed matter, firecracke rs, vaccines from Chinese Taipei, cough mixture 
containing codine, Java sparrows and turtle eggs, arms and ammunition, a nd alcoholic beverages, 
including spirits and liquors (Table III.3).  The prohibitions are maintained for security, health, 
protection of wild life, and moral reasons.  In addition, imports and manufacture of alcohol and 
alcohol products are restricted for religious reas ons under the Customs (Prohibitions and Restriction 
of Imports and Exports) Amended Order 1990.  Imports  of alcoholic beverages have been prohibited 
since 1991 although non-Muslims are allowed to im port 2 litres of alcohol and limited quantities of 
beer duty free.  Local distillation of alcohol is governed by the Exci se Act.  The temporary import ban 
on cement in order to protect the sole (state-owned ) domestic supplier was lifted in February 2005.   
Table III.3 
Prohibited imports, 2007   
Product Reason for prohibition 
1.  Opium and chandu, Java sparrows Health, morals 
2. Pigs bred in or exported from Thaila nd Prevent introduction of animal diseases 
3. Fire crackers Safety and security 
4. Vaccines of Chinese Taipei origin Health and security 
5. Arms and ammunition Security 
6. Spirit and liquors Health 
7. Cough mixture containing codine Health 
8. Pens, pencils, and other articles re sembling syringes Safety and security 
Source: Brunei Darussalam authorities. 
(b) Import restrictions and licensing 
34. Brunei maintains import restrictions, mainly for health, sanitary and phytosanitary, and moral 
reasons, on, inter alia , plants and animals, poisons, radioactive material, and alcohol (Table III.4).  All 
imported eggs must be marked with the word "impor ted" on the shell, to identify the source of supply, 
thereby preventing illegal cross-border movements of e ggs and to ensure conformity with the sanitary 
and food safety requirements of the Veterinary Authorit y and the Ministry of Health.  Imports of salt, 
sugar, and rice paddy are restricted to maintain secu rity of domestic supply and for price stability, and 
to ensure long-term sustainable supplies and market stability.  Imports of used motor vehicles of 
five years and older are restricted for road safety reasons.  Import permits for salt, sugar, and rice Brunei Darussalam WT/TPR/S/196 
 Page 45 
 
 
paddy may be obtained from the Department of Information Technology and State Stores;  import 
permits for used vehicles are issued by the Land Transport Department.  In all cases, the importer must also submit the import permit to the Royal De partment of Customs to obtain an approval permit 
(AP). 
Table III.4 
Restricted imports, 2007  
Product Reason for restric tion Authorizing agency 
Eggs for hatching purposes a nd fresh eggs unless clearly 
stamped in non-erasable ink or similar substance with the 
word "IMPORTED" on the shell of each egg  Health Agriculture Department, 
Ministry of Industry and 
Primary Resources 
Any living plant or planting material, including from Sabah 
and Sarawak To prevent the introduction of exotic 
plant diseases  Agriculture Department, 
Ministry of Industry and Primary Resources 
Live cattle, poultry, and birds To prevent the introduction of animal 
diseases  Agriculture Department, 
Ministry of Industry and 
Primary Resources 
Pin tables, fruit machines, slot machines and any other 
machines of like nature whether involving an element of 
chance or not To prevent illegal gambling activities Ministry of Home Affairs 
Poisons and deleterious drugs Health Narcotics Control Bureau 
Rice paddy and the products thereof, and separated, 
skimmed or whole milk Security of supply and price stability Department of Information 
Technology and State Stores, 
Ministry of Finance 
Persian glue  Health  Ministry of Health 
Poh Ka, Poh Kah or Poh Kau;  Liow Ko, Ch'ow Ko  To prevent illegal gambling activities Ministry of Home Affairs 
Sugar, salt  Security of supply and price stability Department of Information 
Technology and State Stores, 
Ministry of Finance 
Converted timber  Security of supply and price stability Forestry Department, Ministry 
of Industry and Primary 
Resources 
Used and reconditioned vehicles (5 years or older) 
including motorcars, motorcycles, lorries, omnibuses, 
tractors and trailers Safety  Royal Customs and Excise 
Department, Ministry of 
Finance 
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 Agriculture Department, 
Ministry of Industry and 
Primary Resources 
Beef, including the carcass of the animal or any part 
thereof, the meat (whether fr ozen, chilled or fresh), bones, 
hide, skin, hooves, horns, offal or any other part of the 
animal or any portion thereof, unless it has been 
slaughtered in an abattoir  approved in writing by the 
Minister of Religious Affairs  Religious Ministry of Religious Affairs;  
Ministry of Health;  and 
Department of Agriculture, 
Ministry of Industry and 
Primary Resources 
Turtle eggs Health  Agriculture Department, 
Ministry of Industry and 
Primary Resources  
Broadcasting equipment Security Ministry of Communications 
Cigarettes unless with Ministry  of Health approved health 
warning written on the packages Health Ministry of Health 
Poultry, including the carcass of the bird or any part 
thereof, the meat (whether fr ozen, chilled or fresh), bones, 
skin, offal or any other part of the animal or any portion thereof, unless it has been slaughtered in an abattoir approved by the Minister of Religious Affairs  Religious Ministry of Religious Affairs;  
Ministry of Health;  and 
Department of Agriculture, Ministry of Industry and Primary Resources 
Alcoholic beverages  Religious ban Royal Customs and Excise 
Department, Ministry of Finance 
Source:  Authorities of Brunei Darussalam. WT/TPR/S/196 Trade Policy Review 
Page 46 
 
 
35. A number of products, including telecommuni cations equipment, medical products, live 
plants and animals, mineral water, and used cars over five years old, require an import licence (Table AIII.2).  In general, according to the author ities, the main distinction between restricted and 
licensed imports is that restricted imports require the import and approval permits, while licensed 
imports require only a licence from the relevant government agency.  The procedure for obtaining 
permission is the same for restricted and licensed imports.  
36. Import licences may be granted to persons dom iciled and working in Brunei who have a 
business licence.  No specific documents are require d to apply for a permit or a licence, although for 
some products prescribed forms may be required from th e relevant authority, including Customs.  The 
primary purpose for requiring licences for these produc ts, according to Brunei's notification to the 
WTO (which dates back to 1997), is to safeguard h ealth, national security, and morals, although in the 
course of this Review, the authorities stated that domestic food security is also an objective.
7  
Licences, which must be obtained prior to importation,  are issued every six m onths and are valid for 
six months;  once issued, a licence may not be transferred to another importer. 
(viii) Standards and sanitary a nd phytosanitary measures 
(a) Standards 
37. There is no national body for setting standards in Brunei.8  The Construction Planning and 
Research Unit (CPRU), based in the Ministry of Development, is th e focal point and coordinator for 
standards and conformity assessment activities.  The unit's main functions are to:  promote 
construction quality through conformity assessment (e.g. ISO 900, ISO/IEC 17025), certification of 
personnel and materials, and traini ng; develop guidance documents and  national standards (including 
adoption of international standards where appropria te) for the construction industry;  maintain a 
library of standards and appropriate technical bulleti ns to serve industry in general;  and to act as the 
national focal point for safety, standa rds, and conformity assessment activities.9  All standards are 
voluntary.  
38. National standards, which are prepared by tec hnical committees, are submitted for approval to 
the Standards Committee, which is chaired by th e Minister of Development or the Permanent 
Secretary in the Ministry.  Technical committees cu rrently exist for the construction sector only (for 
timber, roads, iron and steel, concrete, locally ma nufactured building products, such as bricks and 
cement, and quality management systems).  A ne w Technical Committee for food-related standards 
was set up recently and a standard on halal food w as published in August 2007;  another ten are being 
drafted.  According to the authorities, it is the policy of the Technical Committees to adopt 
international standards, where relevant;  also the alignment of national standards with existing 
relevant international standards is being review ed in line with the ISO/IEC Guide 25.  Following 
examination by the Standards Committee, a standard is sent for comment to the Standards Secretariat 
at the CPRU, and for public comment (the period fo r comment is usually six weeks);  any comments 
are forwarded to the Technical Committees (Chart III. 6).  To maintain transparency, the Ministry of 
Development publishes a directory of certified pr oducts, companies, and accredited laboratories.10   
                                                      
7 WTO document G/LIC/N/3/BRN/1, 10 April 1997. 
8 According to the authorities, standards and conformi ty activities are still at the infant stage except for 
the well-established construction and oil and gas industries.  However, there appears to be a study for the establishment of a body to oversee the relevant activities. 
9 Ministry of Development online information.   Viewed at:  http://w ww.mod.gov.bn/cpru_web/ 
new_web/cpru_welcome.htm and the Ministry's 2005 publication "Brunei Darussalam Standards". 
10 Ministry of Development online information.  Viewed at:  http:/www.mod.gov.bn. Brunei Darussalam WT/TPR/S/196 
 Page 47 
 
 
 
Chart III.6
Overview of standards and co nformity assessment activiti es in the Ministry of 
Development, September 2007
Source :  Information provided by the authorities of Brunei Darussalam.Ministry of 
Development 
Laboratory 
Accreditation Scheme
(9 laboratories 
accredited)Programme for the 
Recognition of Competent 
Certification Bodies
(2 bodies recognized)Standardization
(42 standards issued:  
41 construction, one 
food)Quality Management 
System Consultants and 
Training Scheme
(6 companies registered)Product Certification 
Scheme
(voluntary scheme - 
certification covers only 
construction materials)Construction Planning 
 and Research UnitMinistry of Development
 
 
39. There are currently 42 voluntary, mainly constr uction-related standards in Brunei Darussalam 
(Piawaian Brunei Darussalam or PBDs);  37 are direc tly adopted from international standards.  They 
cover use of the metric system in construction,  quality management, steel reinforcement, cement, 
concrete, timber, and roads.  In addition, gui dance documents (GDs) and guidance specifications 
(GSs) in these areas have been published by the te chnical committees;  at present, there are 22 GDs, 
and 8 GSs.  Standards for electrical and electr onic goods, gas appliances, and fire equipment are 
currently voluntary and are based on ISO or IEC sta ndards (for electrical/electronic products), where 
international equivalents exist.11  The authorities note that Brunei has completed the alignment of its 
standards with international standards in four priori ty areas:  electrical/electronic appliances;  rubber 
products;  food labelling;  and machinery.  
40. Other than setting standards for construction in Brunei, the CPRU also monitors testing and 
conformity carried out by six testing laboratories ass ociated with the construction industry in Brunei, 
and manages regional prof iciency testing programmes e.g. APLAC.  The laboratories are accredited 
by, and registered with, the Ministry of Developm ent.  There are also two accredited laboratories for 
products related to oil and gas and a calibration labo ratory related to defence.  Brunei signed a Letter 
of Understanding with the Singapore Accredita tion Council (SAC) in April 2001 for technical 
cooperation in the area of accreditation, including the use of SAC accreditation of laboratories, 
                                                      
11 Brunei is a corresp ondent member of the ISO and partic ipates as an observer in ISO TC 
34 (Agriculture), TC 71 (Cement), TC 211 (GIS) and ISO TC 122 (Packaging).  Brunei is also an observer member of ISO CASCO and ISO COPOLCO.  WT/TPR/S/196 Trade Policy Review 
Page 48 
 
 
certification bodies, and inspection bodies.  To date , two laboratories have been accredited by the 
SAC.  Brunei maintains that it has reviewed the laboratory accreditation scheme to ensure that it 
meets ISO/IEC Guide 58.  In addition, Brunei's accredited commercial laboratories have increased 
their scope of testing and calibration services for the construction sector.   
41. Brunei has little industry other than petroleum a nd construction;  petroleum is dominated by 
multinational companies with their own testing facil ities and standards.  Other industries tend to rely 
on third-party certification in conformity assess ment.  However, the national Standards and 
Accreditation centre (NSAC) under the Ministry of Industry and Primary Resources, formed in 2006, is moving towards centralising standards by acting as a quality and accreditation centre for local food 
and handicraft products.  Brunei has no nationa l measurement and metrology centre;  the 
administration of weights and measures for commerc ial activities is carried out by the Weights and 
Measures Department.  However, the NSAC is wo rking to establish a calibration laboratory that 
complies with the international measurements syst em, under the Bureau International des Poids et 
Mesures, and has proposed the establishment of a national metrology laboratory under the budget of the next national development plan.  Measurement  and metrology facilities in Singapore (PSB) and 
Malaysia (SIRIM) are used frequently by Brunei 's laboratories in their 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.  
42. Brunei is a member of several international an d regional standard-setting fora, including the 
ISO, Pacific Area Standards Congress, Codex, the ASEAN Consultative Committee on Standards and 
Quality, the ASEM Trade facilitation Action Plan  on Standards and Quality, the ASEM Trade 
Facilitation Action Plan, the APEC Sub-Committee on Standards and Conformance, and the Asia-Pacific Laboratory A ccreditation Cooperation scheme.
12  It was admitted to the IEC Affiliate 
Member programme in 2001.  Brunei participat es in the APEC E/E MRA (since 2003) and in 
May 2004 signed the TEL MRA w ith 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 therefore does not require re-certification or testing.   
(b) Sanitary and phytosanitary measures  
43. Brunei's national notification authority for sanitary and phytosanitary measures is the 
Department of Agriculture in the Ministry of Industry and Primary Resources.  SPS measures are 
implemented by:  the Department of Agriculture for plants and plant products, live animals, and eggs 
and other fresh animal (non-halal) products;  the Ministry of Religious Affairs for halal meat 
products;  the Fisheries Department for fish and fi sheries products, and the Forestry Department for 
forestry products.    
Plant regulations 
44. Phytosanitary regulations are implemented by th e Plant Quarantine Unit of the Department of 
Agriculture, 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 Department of 
Agriculture, and phytosanitary certificates, issued by the legal issuing authority in the country of 
                                                     
 
12 For example, according to the CPRU, Brunei has participated in 61 projects on the ASEAN EC 
Standards Quality and Conformity A ssessment programme (2003-05) on electrical, pharmaceutical, cosmetic, 
food, and tourism activities.   Brunei Darussalam WT/TPR/S/196 
 Page 49 
 
 
origin, certifying the phytosanitary status of the plants.13  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 Department of Agriculture on arrival in Brunei.  
Imports of soil (including attached to plant root s), are prohibited.  Phytosanitary certificates for 
exports of agricultural materials may be obt ained from the Department of Agriculture. 
Animal regulations 
45. The Quarantine and Prevention of Disease (Animals ) Regulations allow for the prohibition of 
import, detention of animals for treatment and ex amination, 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 accompanied by an import permit issued by the Department 
of Agriculture and a veterinary health certificate i ssued 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 Certificat e may be obtained from the Contagious Veterinary 
Office.14  Following the outbreak of avian flu in several  countries, the Brunei Government imposed an 
import ban on all types of poultry products from countries affected by, or suspected of having, avian 
flu outbreaks.15  
Halal  
46. Imports of beef and poultry are subject to im port restrictions under the Second Schedule of 
the Customs (Prohibition and Restriction on Imports  and Exports) Order, unless they have been 
slaughtered in a foreign abattoir approved in writi ng by the Minister of Religious Affairs.  The 
Government maintains a list of approved abattoir s 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 th e Halal Meat Act, the Board for Issuing Halal 
Import Permits grants the permit if the slaughter house is already on a list approved by the Majlis 
Ugama Islam16;  for slaughterhouses not on the list, an inspection committee, including 
representatives from the Ministry of Religious Affair s, the Majlis, the Ministry of Health, and the 
Department of Agriculture is required to inspect and approve the abattoir.  The Board forwards the 
application to the Majlis who makes the final decision on issuing the import permit.17  Authorized 
officers from the Ministry of Health and the Agri culture Department examine all imports of halal 
meat and certify it fit for human consumption.  Cu rrently, halal meat and poultry can be imported only 
from Malaysia and Australia.  Brunei imports live ca ttle from its state-owned cattle farm located in 
Northern Australia for slaughter at local abattoirs.   
Other regulations 
47. Other sanitary and health restrictions are main tained under the Poisons Act and the Misuse of 
Drugs Regulations, which are enforced by the Pharma ceutical Enforcement Serv ices, in the Ministry 
of Health.  This includes regulation of all impor ts and exports of pharmaceuticals, chemicals, 
                                                      
13 Phytosanitary certificates issued by the country of  origin are valid for 14 days (Plant Quarantine 
Services, 1993). 
14 Quarantine and Prevention of Disease (Exportation of Animals) Regulations. 
15 WTO document G/SPS/N/BRN/2, 10 March 2004, notification of emergency measures. 
16 The Board is chaired by the Controller of Custom s and its members include representatives from the 
Ministry of Religious Affairs, Medical and Health Services, the Department of Agriculture, and the Majlis 
(Section 3 of the Halal Meat Act).  
17 Halal Meat Act, Section 3. WT/TPR/S/196 Trade Policy Review 
Page 50 
 
 
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-chemicals are controlle d by the Department of Agriculture through the 
Ministry of Health under the Poisons Act.  The Dr ug Quality Control Service also inspects all drugs, 
both locally produced and imported, to ensure quality.   
48. The Department of Health Services under the Mi nistry 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 adulterate d or poor quality foods.  Food importers are required to submit 
the customs declaration form together with releva nt documents (including health certificates) to the 
Food safety and Quality Control Division, Department of Health Services, for endorsement.   
(c) Labelling and marking  
49. Brunei's legislation on food labelling requirement s is contained in the Public Health (Food) 
Order, 1998, which came into force in January 2001.   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 instru ctions, and instructions and date for use.  Where a 
suitable common name for the food product is not availa ble, a description to indicate the nature of the 
food is required.  All imports of  meat and products containing meat must conform to labelling 
requirements approved by the Board for Issuing Halal Import Permits.18  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.   
50. Since 1 January 2002, 25 categories of food an d beverage products requi re 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 fl our products, egg products , raisins and sultanas, 
chocolate, edible fats and oils, food additives, margarine, meat products, and nutrient supplements.  
51. 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 Mala y on the other surface,  and conform to the 
specifications set out in the sp ecific schedules in the Tobacco (Labelling) regulations, 2007.   
52. Brunei does not have any labelling requirements for genetically modified foods.   
(ix) Government procurement 
(a) Overview 
53. The Government, through its public works depart ment and individual ministries, is the major 
source of contracts in the country.19  Government construction activities play a major part in the 
construction industry and in the economy as a whole;  the level of government spending has a direct 
impact on the country's economic climate.  According to figures supplied by the authorities, goods 
                                                      
18 Meat products must carry the halal label when so ld in Brunei (Emergency (H alal Meat) Order 1998). 
19 All public works (e.g. roads, bridges, airports , infrastructure, offices, low-cost housing, water 
supplies, drainage and sewage works) are funded by the Government.  The Public Works Department, under the Ministry of Development, is responsible for implementing the projects.  Brunei Darussalam WT/TPR/S/196 
 Page 51 
 
 
and services procured by the Government were valued at B$780 million in 2006, down from over 
B$1.1 billion in 2005, accounting for 4% and over 7%  of GDP, respectively (Table III.5).  Although 
foreign suppliers can participate in government tenders , most retain a local agent to represent them in 
Brunei, as corporate relationships with the Governme nt are of great importance.  Teamed with a good 
local agent with the appropriate connections and knowledge of local business practices, foreign 
suppliers have a better chance of winning contracts.   
Table III.5 
Government procurement expenditures, 2002-06 
(B$ million and per cent) 
 2002 2003 2004 2005 2006 
Goods and services procured by the Government of 
Brunei (B$ million) 603.1 585.3 812.0 1,166.5 780.5 
Goods and services as % of GDP 5.8 5.1 6.1 7.4 4.1 
Goods and services as % of governme nt expenditure 12.6 10.2 16.6 22.9 14.8 
Source:  Brunei authorities. 
54. The main legislation with regard to governme nt procurement is contained in the Financial 
Regulations 1983 (paragraphs 327-340), which aims to maintain equity, integrity, and efficiency in 
the tendering process.  Relevant circulars include the Ministry of Finance Circular Letter 3/2004 (of 
24 October 2004).  The State Tender Board is res ponsible for awarding contracts/projects/services 
above B$250,000 (tenders considered by the State Tender Board are approved by the Minister of 
Finance) and the Mini Tender Board of each Ministry is responsible for awarding 
contracts/projects/services of B$250,000 and belo w.  The Ministry/Department submitting the tender 
recommendations must prepare a detailed report on its evaluation process, a description of the evaluation, and a comparison of prices of all the bids received.  The name of the recommended bidder, it's tender price and deadline for completion of the project or delivery date are recorded in the 
minutes of Boards' meetings;  recommendations are a udited by the Auditor General.  The notification 
timeframe from receiving tender recommendations to award of contracts is approximately a month. 
55. Information on government procurement opportu nities above B$25,000 is published in the 
Government newsletter and other local  newspapers not less than two weeks from the date of issue.  If 
the goods or services are not available locally, foreig n companies will be invited to submit bids, with 
prior approval from the State Tender Board or Mi ni Tender Board depending on the value.   
56. Brunei is not a signatory to the WTO Govern ment Procurement Agreement;  the authorities 
state that further study is needed before the G overnment can make a decision.  Coverage under the 
Trans-Pacific SEP Agreement is extensive.
20  Brunei has been given two years (from July 2006) to 
negotiate its government procurement schedule.  Owing to its small size, procurement by Brunei's 
Mini Tender Board will be exempted from coverage. 
(b) Tendering procedures  
57. According to the Brunei Darussalam authorities, te nders are awarded to bids that represent the 
best value for money:  criteria include the price offered, compliance with tender specifications, quality 
of goods and services, timelines in delivery, relia bility, and after sales service.  Procurement 
procedures depend on the estimated value of the pr ocurement:  for goods or services up to B$2,000, 
procurement may be carried out directly by the Department;  for goods or services between B$2,000 
                                                      
20 New Zealand Ministry of Foreign Affairs online information.  Viewed at:  http://www.mfat.govt.nz/ 
Trade-and Economic-Relations. WT/TPR/S/196 Trade Policy Review 
Page 52 
 
 
and B$25,000 at least three quotations must be obtained from qualified suppliers;  procurement 
exceeding B$25,000 should be made by open tender.   
58. Selective and invited tender, and waiver of te nder procedures may only be used by the Mini 
Tender Boards.  Under Open Tendering, invitation s are widely published in order to obtain a 
reasonable and competitive price.  Under Invited Te ndering invitations to tender are published, and 
selected companies are invited to tender.  Approva l is required from the relevant Tender Board.  
Selective Tendering is used for procurement of sp ecialized supplies or servi ces, whereby only certain 
companies are capable of delivering the supplies or services required.  Approval is required from the relevant Board.  For urgently needed supplies or services, software licence renewal, specialized 
products, or specialized work or national security concerns, Normal tender procedures are waived.  
No detailed data were available from the aut horities concerning the br eakdown of procurement 
contracts awarded and their values by tender method.   
59. Tender notices are published in the Pelita Brunei at least two weeks before the closing date of 
a tender.  The tenders submitted by suppliers ar e recorded and witnessed by an elected quorum 
appointed by the Sultan, and submitted to the releva nt government agencies for evaluation.  Evaluated 
tenders are submitted to the Mini or the State Tender Board for approval.  
60. The bid evaluation criteria are applied differe ntly by different Ministries/Departments 
depending on the nature of projects:  they may i nvolve financial capability, technical capability, past 
performance, and track records of potential bidders .  These criteria are specified in the tender 
document.  Tender documents should include:  pertin ent instruction to bidders, such as forms that 
need to be submitted;  specifica tions;  tender document fees;  validit y of tender;  terms of acceptance 
or rejection;  criteria for consideration;  tende rer's responsibilities;  terms and conditions of the 
contract.  
(x) Import-related operations of state enterprises 
61. Brunei has not notified any state-trading enterpri ses to the WTO.  Certain products subject to 
import restrictions and licensing, such as rice and sugar, are imported directly by the Government 
through the Department of Information Technology and State Stores, in the Ministry of Finance.  In 
particular, the Department imports much of Br unei's rice through BruSiam Food Alliance, a joint 
venture between the governments of Brunei and Thaila nd.  The Department also issues import permits 
for other restricted products, such as salt.  
62. Other state-trading companies, according to the authorities, are Royal Brunei Catering Sdn 
Bhd;  Mulaut Abbatoir Sdn Bhd;  Royal Brunei Airlines Group of Companies and its subsidiaries;  the 
DST Group of Companies, and the Royal Brunei Technical Services (RBTS) Sdn Bhd.  The RBTS is the authorized agent of the Government for certa in equipment for the use of the Royal Brunei Air 
Force, Police Force, and other lawfully esta blished security forces of the Government.   
(3) M
EASURES DIRECTLY AFFECTING EXPORTS  
(i) Procedures 
63. There have been no substantial changes in export procedures during the review period.  
Exporters must be registered with the Ministry of Industry and Primary Resources and the Royal Customs and Excise Department.  Documentation requirements include an export declaration for 
customs, invoice, packing list, and certificate of origin.  An SPS certificate, an export licence, and 
other documents are required for restricted expor ts, under the Quarantine and Prevention of Disease 
(Animals) Regulations and the Agricultural Pests and Noxious Plants Act (chapter 43).  As in the case Brunei Darussalam WT/TPR/S/196 
 Page 53 
 
 
of imports, appeals against Customs decisions may be made to the Minister, under section 153 of the 
Customs Order 2006;  the Minister's decision is final.   
(ii) Export prohibitions, restrictions, and licensing 
64. Export prohibitions remain in place for prawn re fuse and copra cake, a nd exports of timber, 
oil palm, rice, and sugar are still restricted (Table  III.6).  Consumer prices for rice and sugar are 
subject to ceilings, and export restrictions appear to  be intended to ensure adequate domestic supply.  
Export licences are required for cigarettes, diesel, gaso line, kerosene, and salt.  The authorities state 
that, in general, there is no distinction between restricted and licensed exports.  Licences may be 
obtained upon fulfilment of certain requirements including local content, and packaging and labelling 
requirements.  
Table III.6 
Prohibited and rest ricted exports, 2007 
Product Reason for prohibition or restriction/licensing agency 
Prohibited export  
Prawn refuse and copra cake To ensure adequate supply 
Restricted exports  
Articles of an antique or historical nature 
made or discovered in Brunei To preserve national heritage/Department of Museums 
Derris species (Tuba) To protect wildlife/Department of Agriculture, Ministry of Industry and Primary Resources 
Elaeis quinaesis (oil palm) To ensure adequate supply/Depa rtment of Agriculture, Ministry of Industry and Primary 
Resources  
Rice, paddy and products thereof To ensure adequate suppl y/Department of Information Technology and State Stores 
Timber Class 1A, IB, IC, Nibong, Rotaus To  ensure adequate supply/Forestry Depart ment, Ministry of Industry and Primary 
Resources 
Sugar For security of supplies and price stab ility/Department of Information Technology and 
State Stores, Ministry of Finance 
Source:  Brunei authorities. 
(iii) Export taxes, charges, and levies 
65. Brunei has no export taxes or other charges on exports. 
(iv) Duty and tax concessions 
(a) Drawbacks 
66. Provisions for duty drawback are made under Part X of the Customs Order 200621 (as 
amended in 2006).  Nine-tenths of the import duty paid is reimbursed on goods re-exported without 
transformation within 12 months of duty payment, for import consignments of not less than B$500 in 
value.  
67. Imported inputs used in the manufacture of expor ts may also be eligible for drawback under 
certain conditions, including that the manufactured  premises are approved by the Controller of 
Customs and that re-export is within 12 months of payment of the import duty.22  Drawback is also 
permitted for personal effects and other goods imported by visitors for their personal use in Brunei 
and for trade samples, if the goods are re-expor ted within three months of importation.   
                                                      
21 Customs Order 2006, under the Constitution of  Brunei Darussalam (Article 83 (3)).  
22 Article 92 of the Customs Order 2006.  WT/TPR/S/196 Trade Policy Review 
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(b) Other tax concessions and subsidies 
68. Brunei has no other explicit tax concessions or s ubsidies for exports, but tax rebates may be 
available under the pioneer status programme for investment in industries with favourable export 
prospects. 
(c) Export-processing zones 
69. The Muara EPZ, situated outside Brunei's main  port (the Muara Port) was developed mainly 
to promote and develop Brunei as a regional trad e hub, and especially to promote the BIMP-EAGA 
region.  In 2004, the Brunei Economic Developmen t Board (BEDB) proposed a new deep-water port 
at Pulau Muara Besar (PMB) in association with a new EPZ, to develop the PMB into a transhipment 
port for a wide range of manufacturing goods for re -export.  The EPZ would play a crucial role in 
supporting the operation and profitability of the port by attracting foreign investment, and stimulating 
export-oriented growth and industrial development.  It should also create jobs. 
(v) Export operations of state enterprises  
70. No information was available to the Secretaria t on exports by state enterprises.  Petroleum 
and natural gas are exported by Brunei Shell Marke ting, jointly owned by the Government of Brunei 
and Brunei Shell Petroleum.  It is not clear which companies are involved in the export of restricted 
items, including timber, oil palm, rice and sugar, cigarettes, and salt. 
(4) MEASURES AFFECTING PRODUCTION AND TRADE  
(i) Legal framework for businesses  
71. All companies intending to do business in Brunei must be registered with the Registrar of 
Business Names or Registrar of Companies, both b ased in the office of the Attorney General of 
Brunei.  Certain types of business must obtain special approval and a licence before commencement of business activities:  such controls are deemed  necessary to safeguard the public, for health, 
environmental, security or moral interests.  Ba nks, finance companies, in surance agencies, money 
changers, travel agencies, private schools, tuition classes, and securities and investment companies 
require approval from the relevant  government regulatory authorities. 
72. A business may be established as a sole proprietors hip, partnership, company, or branch of 
foreign company.  Foreign individuals may hold equi ty in partnerships but may not register as sole 
proprietorships.  Companies formed as partnerships or  proprietorships are not subject to corporate tax 
in Brunei, which is normally 30%.  Foreign comp anies are required to register under section 299 of 
the Companies Act. 
73. Companies may incorporate in Brunei under the Companies Act (Cap 39), as (either private 
or public):  companies limited by shares;  companies limited by guarantee;  companies limited by both shares and guarantees;  or unlimited companies.  At least half the directors of a company incorporated 
in Brunei must be either nationals of Brunei or or dinarily resident in Brunei.  Registration of the 
company by the Registrar may take place after th e compliance conditions imposed by the Government 
have been fulfilled.  Registration fees are gradua ted depending on the authorized share capital of the 
company.  Under the Companies Act, there is no r estriction on the ownership in the equity of a 
company, although some form of local participati on is required in industries based on local resources 
and related to national food security.  Brunei Darussalam WT/TPR/S/196 
 Page 55 
 
 
74. A foreign company that does not incorporate as a local company, must register as a branch of 
the foreign company as provided under Part IX of the Companies Act.  The branch must have a 
registered office in Brunei and appoint a local authorized person. 
(ii) Corporate governance 
75. The main regulations concerning corporate governance in Brunei Darussalam are in the 
Companies Act and the Securities Order 2001, which was enacted to manage and regulate financial 
exchanges, dealers and other persons who provide a dvice in respect of dealings in securities.  
"Securities" has been broadly defined to encompass most forms of financial instruments as well as 
dealings in currencies and commodities.  Brunei doe s not have its own tradeable stock exchange, and 
there is no specialized corporate governance code or takeover code.   
76. Since its enactment in 1956, the Brunei Comp anies Act has undergone minor additions.  
Shareholders retain the right to appoint or remove  directors from the board of directors.  However, 
only executive directors can control day-to-day opera tions.  Directors have a duty to act in good faith 
as well as to perform to the best of their abilities when discharging their fiduciary duties to the company.      
(iii) Incentives 
(a) Tax regime 
77. There are no export, sales, payroll or manufac turing taxes, and sole proprietorships and 
partnership businesses are not subject to income tax.  Brunei has no personal income tax.  Only companies are subject to income tax, which is le vied at rates of 55% for petroleum companies under 
the Income Tax (Petroleum) Act, 1963 as amended, 55% for natural gas companies, and 30% for all 
other companies.
23  Companies are subject to tax on:  gains or profits from any trade, business or 
vocation;  dividends received from companies not previously assessed for tax in Brunei;  interest, 
rents, royalties, premiums, and any other profits ar ising from properties.  There is no capitals gains 
tax, unless the gains are considered as part of the operational income from normal trading activities.  
Petroleum and natural gas companies pay tax on a quarterly basis, while all other companies pay taxes 
annually.  Other taxes include stamp duty on docum ents, a withholding tax of 20% on interest paid to 
non-residents, a 3% estate duty for estates valued at  over B$2 million (of persons deceased on or after 
15 December 1988), and a building tax with rates va rying up to 12% of the value of the building. 
(b) Tax incentives 
78. In order to attract investment to targeted sectors, the Government provides a number of tax 
incentives (Table AIII.3).  At the start of the period under review, the Government enacted the 
Investment Incentives Order 2001 and Pioneer Status and Income tax Relief in June 2001.  The new 
law and regulations replace the Investment Incentives Act (chapter 97) with the stated objectives of:  
promoting the diversification of economic activities by providing tax incentives to promoted activities;  and encouraging investment and reinv estment activities to upgrade technology, undertake 
research and development, increase production cap acities, and expand market coverage.  The 
authority to administer the new legislation was transferred to the Minister of Industry and Primary Resources.  
                                                     
 
23 Only companies incorporated in  Brunei are liable for corporate ta x.  Non-resident companies are 
taxed only on income arising in Brunei.  WT/TPR/S/196 Trade Policy Review 
Page 56 
 
 
79. The new law provides guidelines in granting pioneer status to industries and tax relief for 
foreign and local investment, as well as extending th e tax relief period.  The investment incentives 
include exemption from payment of corporate tax for up to 5 years for companies that invest 
B$500,000 to B$2.5 million in approved ventures;  up to 8 years for investing more than 
B$2.5 million, and up to 11 years if the ventur e is located in a high-tech industrial park.  
80. The legislation also specifies that to encour age the development of new service activities not 
yet established on a commercial scale, companies ma y be classified as pioneer service companies if 
they are engaged in any qualifying activity including:  any engineering or technical services including 
laboratory, consultancy and R&D activities;  computer-related services;  industrial design 
development;  leisure and recreati onal services;  publishing;  educational services;  medical services;  
services related to agricultural technology and th e provision of warehousing facilities, financial and 
business services.  The incentives include a full corporat e tax holiday of up to 8 years (extendable up 
to 11 years), with carry-forward of losses. 
81. Investment incentives in the form of tax concessi ons continue to be granted to enterprises or 
industries approved by the Government under the Investment Incentives Order 2001.  According to 
the authorities, tax concessions play a vital role  in the pace and direction of Brunei's industrial 
development:  they are used to promote new invest ment in preferred industr ies and services and to 
encourage existing companies to upgrade through modernization and automation and through the 
introduction of new products and services.  However,  in the absence of any available studies by the 
authorities to evaluate the effectiveness of th ese tax incentives in achieving their industrial 
development objectives and in relation to tax re venues forgone, the cost-effectiveness of these 
measures is questionable.  Br unei's economic development might  be better served by a more 
broadly-based corporate income tax system involving fewer incentives, but with a tax rate substantially lower than the 30% currently levied.  This would bring it more into line with the tax 
rates in several of Brunei's neighbours (possibly co mplemented by a personal income tax levied at a 
similarly low rate).  Such a tax would be more neutral, and thus less distorting, as far as private 
investment decisions are concerned. 
(iv) Other assistance 
(a) Subsidies 
82. As noted in the previous report, Brunei notified the Secretariat in 1997 that it maintains no 
subsidies that are notifiable pursuant to Article XVI :1 of GATT 1994, or Article 25 of the Agreement 
on Subsidies and Countervailing Measures.
24  Subsidies, nevertheless, appear to be provided for 
agricultural inputs and for water, energy, and tel ecommunications services.  In addition, housing, 
education, and medical care are provided free of charge.  Government employees also have access to low-interest or interest-free loans for the purchase of cars and houses.   
(b) Price controls  
83. Under the Price Control Act (chapter 142), administered by the Economic Planning and 
Development Department in the Prime Minister's  Office, maximum prices for selected goods may be 
fixed by the Price Controller, for consumer protec tion purposes.  The goods are within the category of 
basic necessities:  motor vehicles, infant milk powde r, and cigarettes.  The Act covers several aspects 
of market activity, such as control of moveme nt, export/import of specified goods, refusal to sell 
goods, prohibition against selling greater quantities of a controlled article than required for "ordinary 
use", hoarding, and display of prices on goods.  
                                                     
 
24 WTO document G/SCM/N/1/BRN/1, 18 March 1997. Brunei Darussalam WT/TPR/S/196 
 Page 57 
 
 
84. Internal distribution controls are maintained by the Department of Information Technology 
and State Stores in the Ministry of Finance on items subject to import and export restrictions, for example, rice and sugar. 
(c) Assistance under the East ASEAN Growth Area 
85. The Government of Brunei also provides assi stance in the form of tax exemptions for 
companies investing in the BIMP-EAGA, as well as tariff exemptions on imports  of all raw materials 
and capital goods.  The main activities appear to include production of halal meat, shrimp and 
fisheries cultivation, bio-pharmaceuticals, high-va lue-added forestry products , and tourism activities 
such as diving and eco-resorts.  
(d) Assistance for small and medium-sized enterprises  
86. As part of its efforts to increase private sector  participation in the economy, the Government 
has continued to encourage the development of small and medium-sized enterprises (SMEs), which 
make up 98% of enterprises in the country and acc ount for 58% of Brunei's total employment in the 
private sector.  Financial assistance for SMEs cons ists of the Enterprise Facilitation Scheme (EFS), a 
financing scheme developed by the Enterprise Development Centre in the MIPR, and the Micro-credit 
Financing Scheme  (MFS);  the EFS and MFS provide maximum loans per enterprise of B$1.5 million 
and B$30,000, respectively.  Under the EFS, priori ty is given to enterprises operating in industrial 
sites, agricultural development sites, and fisheries development sites as well as operators of tourism 
activities in Brunei.  Both schemes are financ ed by the Government through the Industrial 
Development Fund, managed jointly with two appointed local banks responsible for the 
administration of the fund.  The loans are at a fa vourable rate of interest of 4%, repayable over 
seven years for EFS projects and four years fo r MFS loans.  At end-March 2007, total EFS 
applications covered 75 enterprises (with a loan va lue of B$21.4 million) and MFS loans amounted to 
B$7 million disbursed to 369 micro-enterprises.
25  
87. MIPR runs a number of courses in business management, an area that has been identified as 
one of the causes of SME failure.  Training cove rs accounting and finance, business management, 
marketing, quality and standards, and new technologies.  Nevertheless, the Government continues to 
be concerned about the number of SME bankruptcies.   According to the Economist Intelligence Unit, 
in 2006 there were 114 bankruptcies, up from only three in 1996.26  The Government also set up the 
SME Innovation Centre in 2006 to help SMEs in th e information and communications business.  The 
Centre is managed in partnership with Sun Micr osystems and Malaysian Incubation specialist SKALI 
(main providers of Java and Open Source technology) and aims to provide a supportive environment 
for promising Brunei ICT businesses. 
88. The Government is taking a "proactive" appro ach to diversifying the country's sources of 
economic growth and creating opportunities for SMEs.  As noted in the previous chapter, the Brunei 
Economic Development Board (BEDB), formed in 2001, aims to attract FDI and promote joint 
ventures – targeting US$4.5 billion in new investment and at least 6,000 new permanent jobs by 2008.  
BEDB has a two-prong strategy:  to develop a num ber of industry clusters , including tourism, 
transportation and logistics, and financial services;   and to develop a port and industrial complex at 
Pulau Muara Besar as well as develop oil and g as-related downstream activities at Sungai Liang27, 
                                                      
25 Information provided by the authorities of Brunei. 
26 EIU (2007) , p. 9. 
27 Key to the BEDB strategy is the development of Sungai Liang into a world class industrial site for 
petrochemical and manufacturing industries that w ill capitalize on Brunei's proven gas reserves.  See BEDB WT/TPR/S/196 Trade Policy Review 
Page 58 
 
 
with proposals including urea and ammonia plants, a methanol plant28, an aluminium smelter, and a 
tyre recycling facility.  The BEDB considers th at projects around the world similar to the Sungai 
Liang Industrial Park have shown that a number of "spin-off" oppor tunities can be derived from the 
production of methanol and ammonia/urea.  In addi tion, the BEDB anticipates that 6,000 construction 
workers will be required for the construction of the petrochemical projects.  This would create 
opportunities for the local construction industry for around two years and for support and service 
industries in catering for the worker population at the Sungai Liang site.   
(v) The public sector and private investment 
(a) The public sector  
89. The Government is the largest employer in Brunei. It has large shareholdings in key 
companies, including a 50% share in Brunei Shell Petroleum Company Limited (BSP), which is owned jointly with Royal Dutch Shell and is the main producer of petroleum and natural gas in 
Brunei.  The state-owned Petroleum Brunei, whic h took over the roles of the Brunei Oil and Gas 
Authority and the Petroleum Unit, in 2002, is respons ible for managing Brunei's assets in its joint oil 
and gas ventures and for regulating the country's petr oleum industry.  The Government also has a 50% 
share in Brunei LNG.  Public sector monopolies also appear to exist in key infrastructure sectors, 
including electricity, and water.    
90. The Government also plays a major role in the economy through its holding company 
Semaun Holdings Sendirian Berhad.  Semaun Ho ldings was incorporated as a private limited 
company under the Companies Act in 1994 and it serv es as an investment and trading arm of the 
Ministry of Industry and Primary Resources in e nhancing economic diversification programmes in 
Brunei.  Its Board of Directors is almost entirely composed of government representatives, including from the Ministries of Industry and Primary Res ources, Communications, Finance, and the Bank 
Islam of Brunei.  According to the authorities,  the company's mission is to spearhead industrial and 
commercial development through direct investment  in key industrial sectors and thereby accelerate 
industrial and commercial development in Brune i as well as generate opportunities for active 
participation of Brunei citizens.   
91. Semaun Holdings focuses on:  integrated poultry projects;  commercial mushroom 
production;  food manufacturing and processing;  computer software development;  design of 
electronic components;  technology park deve lopment, including commercial ventures into 
biotechnology;  high-tech manufacturing, includi ng downstream activities from oil and gas and 
packaging projects;  and value-added services in tourism and related services, packaging support 
services and information communication technology.  The company, along with its  subsidiary and 
joint-venture companies, appears to dominate do mestic manufacturing.  Little information is 
available, however, on its contribution to GDP, or annual accounts, suggesting a lack of transparency 
and public accountability.  
                                                                                                                                                                    
 
press release, September 2004 on the development of Sungai Liang Industrial Park at:  
http://www.bedb.com.bn/sme/documents/PR- Petrochemical-20,09.04.pdf.    
28 Agreements relating to the financing of the construction of a methanol plant at Sungai Liang were 
signed in May 2007 by the local Brunei Methanol Company, the Japan Bank of International Cooperation, and 
the bank of Tokyo Mitsubishi.  The plan to build a methanol plant with a capacity of 850,000 tonnes a year will 
require investment of US$500 million.  Work on the first phase of construction of the 16-ha methanol plant began in February 2007, with completion due by end 2009 (EIU, 2007, p. 12).   Brunei Darussalam WT/TPR/S/196 
 Page 59 
 
 
92. Semaun Holdings Sdn Bhd has established si x joint-venture companies under partnership 
with SemaunPrim Sdn Bhd, its subsidiary in the fisheries industry29:  Seiwa Sdn Bhd;  Semaun 
Seafood Sdn Bhd;  Semaun Aquaculture Sdn Bhd;   Semaun Marine Resources Sdn Bhd;  and 
AquaMas Farm Services Sdn Bhd.  In add ition, it has formed Mahkota Crystal Sdn Bhd a 
joint-venture company directly in partnershi p with Semaun Holdings and acquired equity 
shareholdings in OakTree Holding Ltd and Falcon Cross (B) Sdn Bhd, two Semaun linked companies. 
(b) Corporatization and privatization 
93. Efforts to reduce the scope of direct governme nt involvement in the economy began under the 
Sixth National Development Plan and continued u nder the Seventh and Eighth National Development 
Plans.  The various plans have been aimed at promoting diversif ication and strengthening economic 
growth, but progress has been slow.  Under the Ei ghth Plan (2001-05), the Government pushed for 
economic diversification by:  strengthening the private sector by encouraging FDI and corporatization, commercialization of government  agencies and activities, and enhancing SME 
capabilities;  and by improving the legal and administrative system and procedures relating to investment, the business climate, and land ownership policies.  In this regard there have been a 
number of important legislativ e improvements including the Economic Development Board Act 
(chapter 104), the Industrial Coordination Order 2001, and the Investment Incentives Order 2004, which were introduced at the start of the Eighth Pl an.  Overall, the Government has encouraged the 
private sector to play a leading role in economic growth and diversification, while increasingly restricting its own activities to investment in infr astructure facilities.  The Eighth Plan recommended 
boosting annual government expenditure to B$7.3 b illion (B$7.2 billion under the previous Plan).  
However, it appears that only a small part of  the money allocated was disbursed.  In 2003
30, for 
example, only 26% of allocated funds were spent a nd in some sectors the proportion was much lower 
(only 2% in information technolog y).  Persistent underspending, even  in areas such as public housing, 
makes the realization of government plans difficult.  
94. The authorities state that during the 8th NDP a total of B$1.8 billion was spent, which 
constituted about 25% of the overall pl anned budget.  This is consider ed to be low, mainly due to 
delays in the pre-contract stages (appointment of c onsultants, preparation of documents, assessment of 
tenders, securing bankers' guarantees), and in implementation.  
95. The authorities indicated in 2001 that government  agencies in the pipeline for corporatization, 
commercialization or privatization, included th e Department of Telecommunications, part of 
Electrical Services, the Postal Department, the Department of Information Technology and State 
Stores, the Meragang Hatchery section of the Depart ment of Fisheries, and the Employees Provident 
Fund.  Subsequent efforts to reduce public sector involvement in the economy included "corporatization" of public sector companies, contracting out public sector services to the private sector, and privatization of some public sector servic es.  Privatization, however, has been piecemeal 
and ad hoc.  So far, the Government has inco rporated the Employees Trust Fund as an autonomous 
                                                     
 
29 Production of prawns increased from 60 tonnes in 1999 to 487.5 tonnes in 2004, of which 93% are 
Rostris prawns.  Seiwa Corporation Sdn Bhd is the main  supplier and distributor of quality Rostris prawn fry, 
which are certified as specific pathogen free and resi stant to prawn diseases.  Semaun Seafood Sdn Bhd 
processes prawn and fish products utilizing local materials;  it has marketing networks in the United States, 
Japan, and Chinese Taipei.  Semaun Marine Resources Sdn Bhd supplies Rostris prawn fry to, inter alia,  Fiji, 
Vanuatu, New Caledonia, and Chinese Taipei.  Semaun Aquaculture Sdn Bhd produces fresh prawns and supplies raw material to the seafood processing industry for the export market. 
30 Development expenditure for the Eighth Plan (2001-05) was estimated at some B$7.3 billion, of 
which around 20% and 16% were to be spent on social services and public facilities, and 15% and 11% on industry and commerce, and transpor t and communications, respectively. WT/TPR/S/196 Trade Policy Review 
Page 60 
 
 
board;  also, a decision was reached to establish the Housing Development Department as a board and 
in April 2006, the Government announced the corporatization of the Telecommunications Department.  JTB's functions were split between tw o successor organizations, TelBru, responsible for 
delivering telecom services, and AiTi , responsible for regulating the local ICT industry;  in addition, 
the Government partially privatized certain services,  such as internet access and mobile telephony in 
2006.  
(vi) Competition policy 
96. According to Brunei's APEC Individual Ac tion Plan, it has no specific legislation on 
competition policy but is considering competition policies in line with APEC principles.  So far, 
competition regulations exist only in the telecommunications sector under AiTi, the telecoms 
regulator.  Under the Trans-Pacific SEP Agreement, owing to its small size, Brunei was granted flexibility to apply the commitments in the comp etition chapter on a best endeavours basis;  if, 
however, Brunei establishes a competition law or competition authority, the provisions of the competition chapter will fully apply.
31   
(vii) Intellectual property rights 
(a) Overview 
97. Brunei is a party to the Convention Establis hing the World Intellectual Property Rights 
Organization (since 1994).  It acceded to the Berne Convention for the Protection of Literary and 
Artistic Works on 30 August 2006.  Brunei has not joined the Paris Convention for the Protection of Intellectual Property.  Brunei has notified several of  its intellectual property laws to the WTO and, as 
a developing country Member, made use of the transi tional period available to it until 1 January 2000.  
Brunei's national legislation on in tellectual property rights was reviewed by the WTO Council for 
TRIPS in November 2001.  The authorities state that enforcement procedures and remedies are 
available under the various laws, as well as under th e common law, to enable effective action against 
infringement.  
98. The IP Section of the Registries Division of the Attorney General's Chambers
32 (under the 
Prime Minister's Office) is responsible for all matters concerning intellectual property including 
formulating and reviewing intellectual property polici es, drafting relevant legislation, registration and 
administration under the respective intellectual property legislation and promoting awareness and disseminating information on intellectual property in th e country.  The Head of Registries, who is also 
Assistant Solicitor General, is r esponsible for administering the Division.  The Royal Brunei Police 
Force is responsible for general enforcement and i nvestigation of criminal offences under the relevant 
laws, while the Royal Customs and Excise Depart ment enforces border control measures.  The 
Criminal Justice Division of the Attorney General' s Chambers initiates prosecution of IPR cases.  The 
Division does not have a public awareness programme as it lacks capacity in implementing such a programme.  Public outreach is limited to talks a nd lectures on the importance of IPR protection for 
local businesses, SMEs, and business students.  Th e IP Section would benefit from appropriate 
technical assistance in this area as public awareness on IP in the country is considered generally low.   
                                                     
 
31 The competition chapter provides general principles of competition (New Zealand Ministry of 
Foreign Affairs and Trade online information.   Viewed at:  http://www.mfat.govt.nz). 
32 For  historical reasons, the Attorney General is al so the Registrar.  Currently , the Registries Division 
administers:  Trade Marks Act (Cap. 98) and Trade Marks Rules, 2000;  Inventions Act (Cap. 72);  Copyright Order, 1999; Industrial Designs Order, 1999, Industrial Designs Rules, 2000 and Layout Designs Order, 1999.  Brunei Darussalam WT/TPR/S/196 
 Page 61 
 
 
99. At the regional level, Brunei participates in  the work of ASEAN on intellectual property 
cooperation, including measures to strengthen and enhance intellectual property rights protection, 
enforcement, administration, and legislation in ASEAN member countries.33  Brunei also participates 
in the EC–ASEAN Intellectual Property Rights Cooperation Project (ECAP II).  ECAP II's main 
objectives are to foster trade, investment, and technical exchanges between Europe and ASEAN 
member countries and to foster intra-ASEAN trade and investment.  
100. The intellectual property chapter of the Tran s-Pacific SEP seeks to provide an enhanced 
standard of IP protection beyond that under the TRI PS Agreement.  The three salient features of the 
IP chapter are:  Brunei (and Chile and Singapore) is considering accession to the WIPO Copyright 
Treaty and the WIPO Performances and Phonograms Treaty, which address copyrighted works in a 
digital environment;  they acknowledge their con sensus on specific IP principles between the rights 
holders and the legitimate interests of users;  a nd acknowledge that geographi cal indications will be 
protected in the respective jurisd ictions according to the terms a nd conditions of their respective 
domestic laws. 
(b) Trade marks 
101. The Trade Marks Act (Cap. 98) and Trade Marks Rules of 2000 cover the registration of trade 
marks in Brunei Darussalam and entered into force on 1 June 2000.  Prior to this, the repealed Act 
was based on the English Trade Marks Act of 1938 with  some modifications to suit local conditions.  
The law provided for the registration of trade marks in respect of goods but not services.  In line with the TRIPS Agreement, the current Act caters for applications for goods and services, and 
geographical indications, and incorporates border cont rol measures.  A trade mark must be visually 
perceptible, capable of being represented graphically (thus smell and scent marks are excluded) and capable of distinguishing goods and services of one unde rtaking from those of others.  In addition, the 
proposed trade mark must satisfy the formalities a nd substantive requirements set out in the Act and 
Rules that govern the registration procedures.  Afte r an application has been accepted for registration, 
it is published in the G overnment gazette (for a period of two months).  If there is no opposition, a 
certificate of registration is issued to the applican t.  Once registered, a trade mark is protected for 
ten years, renewable upon payment of a fee. 
102. Any person (individual, partnership or comp any), whether local or foreign, claiming 
ownership of a trade mark used or  proposed to be used by him in Brunei Darussalam may apply for 
registration of the trade mark.  Under the Act, a foreign applicant must provide an address in Brunei 
Darussalam for all related correspondence from the Registrar. 
103. To register a trade mark, an applicant must f ile Form TM1 together with the fee of B$150.  
Foreign applications account for 99% of a ll applications received (Table III.7).  
104. Amendments to the Trade Marks Ru les, expected to take effect by end 2007, include revision 
of the fee structure and electronic filing of trade ma rk applications.  In line with the e-Government 
initiative, the Registry of Trade Marks is in th e process of automating its business processes under the 
                                                     
 
33 Brunei Darussalam is a member  of the ASEAN Working Group on Intellectual Property Cooperation 
(AWGIPC), which was set up as a result of the AS EAN Framework Agreement on IP Cooperation in 
December 1995.  AWGIPC implements th e ASEAN Intellectual Property Right s Action Plan, which is designed 
to build on the progress in collaboration among ASEAN governments, ASEAN dialogue partner countries and 
institutions, and civil society organizations.  The ASEA N common form for the domestic filing of trademarks, 
ASEAN filing form for trademarks, and a consolidated list of ASEAN ethnic goods and services have been 
developed under AWGIPC since 2000.   WT/TPR/S/196 Trade Policy Review 
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e-Registry Project;  the project is expected to be completed by end 2007 and will enable online filing 
of trade mark applications and statutory documents.  
105. Brunei provides protection for geographical  indications under the Trade Marks Act 
(chapter 98).   
Table III.7 
Trade mark registrations, 2000-07 
 2000 2001 2002 2003 2004 2005 2006 2007a 
Applications          
Residents 31 28 37 43 51 49 34 3 
Non-residents 1,392 730 572 763 740 726 717 226 
Total 1,423 758 609 806 791 775 751 229 
Registrations          
Residents 22 28 20 24 10 4 .. .. 
Non-residents 1,266 569 466 283 327 89 157 .. 
Total 1,288 597 486 407 337 93 157 .. 
.. Not available. 
a January-April. 
Source:  Brunei authorities. 
(c) Patents 
106. Under the Inventions Act (chapter 72), pate nts granted in the United Kingdom, Singapore, 
and Malaysia, may be re-registere d in Brunei within three years from the date of grant.  These 
privileges will cease once the Patents Order comes into force.  Patent registration is administered by 
the Registry of Patents under the auspices of the A ttorney General's Chambers;  applications may be 
made by any persons.  There is no independent syst em of examination for patentability;  substantive 
examination is done by the patent office that grante d the patent.  The patent re-registrations received 
by the Registry are from foreign applicants;  pate nt applications and grants (all from non-residents) 
averaged around 30 annually between 2001 and 2006.   
107. At the time of the previous Review, the Patent s Order 1999 was expected to be implemented 
in 2001 to replace the Inventions Act, 1984, essentially  a re-registration system for patents granted in 
the United Kingdom, Malaysia, and Singapore.  Howe ver, according to the authorities, the Order was 
published in the G overnment Gazette  but has yet to be implemented.   The new patent regulations, 
submitted to WIPO in 2006 for comments and reco mmendations, are based on Singapore's Patent Act, 
and will provide for an independent system based on examination only.  Due to lack of qualified 
persons and expertise, substan tive examination for patentability will be conducted abroad under a 
referral arrangement with foreign patent offices.  
108. The Order provides for patent protection for 20 years from the date of filing, for any product 
or process that is considered to be novel, involves an inventive step, and is industrially applicable.  
Pharmaceutical and agricultural products and pr ocesses are protected under the new law.  The Order 
will not include protection for plant varieties;  the authorities are currently looking into the possibility 
of a sui generis  system of protection for plant varieties, given the lack of expertise in the area.    
109. The Order also provides for compulsory licensing under Sections 55 to 57 if, after three years 
from the date of grant or four years from the date of filing, the market for the patented invention is not 
being supplied by the patent holde r on reasonable terms or if the pa tent is not being adequately Brunei Darussalam WT/TPR/S/196 
 Page 63 
 
 
worked.  Compulsory licensing may be granted by the High Court or an intermediary court;  under 
this provision they are non-exclusive, and may only be used predominantly in Brunei and for the purpose for which they were authorized.  The patent  holder must be paid ad equate remuneration, as 
agreed between the licensee and patent hold er or as determined by the Court.   
110. In determining whether it is a ppropriate to grant a compulsory licence, the court takes into 
account:  the nature of the invention, the time that  has elapsed after the grant of the patent, measures 
already taken by the proprietor to make use of th e invention, the ability of the potential compulsory 
licensee to work the invention to the public advantag e, and investment and other risks involved for the 
applicant. 
111. Non-exclusive use for the services of the Governme nt of Brunei of any pa tented invention is 
also provided for under the Order and may only occu r if the Government ha s taken all reasonable 
steps to obtain the consent of the patent holder to u se the patented product.  Under the Inventions Act, 
which is to be replaced by the Emergency (Patents) Order, there is no provision for the granting of 
compulsory licences.  The exclusive rights to the invention can only cease if the Sultan declares in a 
public statement in Bandar Seri Begawan that the ex clusive right, or the way in which it is exercised, 
is detrimental to Brunei Darussalam or prejudicial to the public. 
112. There are no provisions on parallel imports in the IP  laws currently in force.  The Inventions 
Act (chapter 72) does not prohibit parallel importati on, and the Patents Order does not give the patent 
holder an opportunity to interfere with a parallel trader.
34 
(d) Copyright and related rights 
113. The Copyright Order 1999, entered into force on 1 May 2000.35  It protects literary, dramatic, 
musical, and artistic works, including computer programs, as well as sound recordings, films, broadcasts, and cable programmes.  It also provid es for the protection of performers' rights and any 
other rights granted to other persons under an ex clusive recording contract.  Data compilations, 
including databases, whether in ma chine-readable or other form, which are original by reason of 
selection or the arrangement of contents, are protected under the Order, as are producers of 
phonograms and broadcasting organi zations, provided they meet the conditions of authorship 
described under section II of the Order.  The Order provides copyright protection for the creator's life 
plus 50 years for works;  50 years from the date th at the work was made or recorded for computer-
generated works, sound recordings or films;  and 50 years from the date of broadcast or performance 
for broadcasters and performers.  Copyright for publis hed works is granted for 25 years from the year 
of the first publication.  Foreign works are prot ected in Brunei under the Order by virtue of an 
international convention or agreem ent to which Brunei is a party.  Thus, as a Member of the WTO, 
Brunei provides copyright protection to works from all the other WTO Members.  Under the Order, 
copyright owners have exclusive rights to reproduce,  adapt, issue, perform, broadcast or otherwise 
communicate the work to the public.
36  Any infringement of these rights may be actionable by the 
copyright holder or the licensee and remedies may be sought through a local court of law.   
                                                      
34 Section 66(2)(g) indicates that the proprietor of the patent has no right to prevent acts with regard to 
products that have been put on the market by him (or with his consent), including products that were put on the 
market outside Brunei Darussalam under his equivalent patents. 
35 The Emergency (Copyright) Order 1999 was published on 26 February 2000.  Previously Brunei had 
no copyright law, although UK copyright law applied.  
36 Article 18.  See also provisions in Chapter II of the Emergency (Copyright) Order 1999 and 
exceptions in Chapters III and IV. WT/TPR/S/196 Trade Policy Review 
Page 64 
 
 
114. The Copyright Order is being amended;  the amendments will include higher penalties for 
offences under the Order;  entry without warrant by police officers;  arrest without warrant by police 
officers;  and power to stop and search vehicles.37 
(e) Other industrial property rights  
115. The Industrial Designs Order and Rules, which ca me into force on 1 June 2000, are based on 
the Hong Kong industrial designs law.  The Order pr ovides for registration of new industrial designs 
for the visual appearance of products.  The Regi stry administers a registration system based on 
formalities examination only and does not conduct prio r art searches.  To be registered, an industrial 
design must be new at the filing date of the application.  An industrial design is new if it has not been 
registered, published, used or sold in Brunei Daruss alam or elsewhere before the date on which the 
application for registration was lodged.  Once ac cepted for registration, industrial designs are 
published in the Government gazette  and a certificate of registration is issued to the applicant.  
Registration is for five years, extendable for two pe riods of five years each, subject to payment of a 
renewal fee.  Protection for textile designs , including textile and plastic pieces of goods, 
handkerchiefs, shawls, and other similar articles that  the Registrar may include, is limited under the 
Order to features of pattern and ornaments.   
116. The Layout Designs Order 1999 protects the exclusive rights of the rights holder, with the 
exception of copying for private, research, or t eaching purposes.  Protection is from the day on which 
the layout design was created, for 10 years from the date of commercial exploitation, if it was commercially exploited within 5 years of creation, or for 15 years in all other cases.  Only layout 
designs created after 1 May 2000 are protected.  As with industrial designs, non-exclusive use by the 
Government for security and defence purposes is perm itted, provided the right hol der is remunerated.  
Infringement issues may be addressed in the natio nal courts, including th rough injunctions, and 
damages.   
(f) Trade secrets 
117. There is no specific law on trade secrets;  accordi ng to the authorities, protection is accorded 
under the common law.  Article 39.3 of the TRIPS Agreement obliges Members, when requiring the 
submission of undisclosed test or other data (as a condition for the marketing of pharmaceutical or 
agricultural chemical products), to protect such da ta against unfair commercial use and disclosure.  
According to the Brunei authorities, the market ing of pharmaceutical or agricultural chemical 
products in Brunei is not currently subject to an  approvals procedure requiring the disclosure of 
undisclosed test or other data.  The Ministry of Health  is in the process of drafting legislation that will 
regulate the disclosure of information on medical products and cosmetics.  
(g) Enforcement and penalties 
118. The legislation on intellectual property rights also provides for penalties for infringement of 
rights.
38  The powers of the police however, dependent the complainant or right holder reporting an 
infringement of specific products and supplying suffic ient information and proof.  According to the 
authorities, the main impediments to effective enfo rcement of IP rights include:  the reluctance of 
rights holders to use border enforcement measures ;  lack of technical assistance and training for 
                                                      
37 As of October 2007, the amendments to the Copyright Order were still being finalized;  once the 
Attorney General confirms the amendments, the draf t will be submitted to the Sultan for approval.   
38 TRIPS Article 41 requires Members to enact en forcement procedures to  permit effective action 
against any act of infringement of IPRs, including expeditious remedies to prevent infringements and remedies, which constitute a deterrent to further infringements.  Brunei Darussalam WT/TPR/S/196 
 Page 65 
 
 
customs and police officers;  absence of rights holde rs;  and the frequent lack of documentation from 
complainants to show they own the rights or that they act on behalf of the rights holder.  Resources and manpower are limited, and su ccess is highly dependant on the commitment and support of rights 
holders to protect their own rights.  Police o fficers from the Commercial Crime Unit and Attorney 
General's Chambers officers have been trained in general IPR enfo rcement, for example to detect 
counterfeit hard goods, and are trying to improve enforcement capabilities.  
119. Border enforcement measures for infringement s are undertaken by the Brunei Darussalam 
Customs Department.  Statutory authority for bord er enforcement is expressly provided for under the 
Copyright Order 1999, which enables copyright holders to give notice to the Controller of Customs if 
they suspect that infringing copies are crossing the border.  The authorities state that no such notice 
has been received and therefore no seizures have been made.  Border enforcement measures do not 
appear to be well received by rights holders, desp ite advice from the authorities as to the effectiveness 
of this method.
39  However, the Customs Department can  on their own initiative, under different 
grounds and laws, seize certain ar ticles detriment to public health and safety, providing they have 
information to show that there exists a poten tial danger to the public or individuals. 
120. The authorities did not provide statistics on the number of trade mark and copyright 
infringement complaints received during the period  under review.  However, the authorities have 
indicated that in the case of copyright infringement , the majority of complaints were withdrawn on the 
basis of an agreement with the alleged infringer. 
121. Trade marks and copyright legislation has been  tested in Court and is deemed by the 
authorities sufficient to give protection to rights holde rs.  The authorities also state that in ordinary 
criminal cases the courts in Brunei Darussalam have handled cases expeditiously.  Delays are 
attributed due to the unavailability of the complainant rights holder and necessary documents.  
122. Under the Emergency (Copyright) Order 199940, copyright infringements are actionable by 
the copyright holder, or in the event of a licence, the exclusive licensee.  The production, import, sale, 
rental or distribution of copyright-infringing goods  on a commercial scale is considered a criminal 
offence under the new legislation.  Remedies incl ude damages, injunction, and the right to seize 
infringing copies.  Seizure can be made when a reasonable complaint has been laid with supporting 
evidence.  Most complainants are based outside of Brunei Darussalam. 
123. Penalties for infringement include imprisonment for up to two years, a fine or both;  the size 
of the fine and the period of imprisonment is at the discretion of the Inte rmediate and High Courts, 
which have jurisdiction in cases of infr ingement of intellectual property rights.41  According to the 
authorities, there have been four prosecutions for offences under the Copyright Order, with the courts 
imposing fines in all four cases ranging from B$2,000 to  B$12,000.  The prosecutions were instigated 
by complaints made to the police by th e copyright owners/exclusive licensee. 
124. Once the Patents Order has been implemented a patent holder will be able to bring civil 
proceedings against an alleged infringer in any nati onal court of law.  Available remedies include 
                                                      
39 The Brunei Darussalam Customs Department has repeatedly asserted willingness to cooperate with 
rights holders but has yet to receive any notices. 
40 Criminal offences are dealt with under sections 203-212 of the Copyright Order;  the penalty is a fine 
and imprisonment . 
41 Depending on the intellectual property right and monetary damages claimed, civil actions are 
generally commenced in the Intermediate Court or High Court.  The Intermediate Court may hear any IPR 
matters subject to sections 13 and 14 of the Intermedia te Courts Act (Cap. 162), while the High Court may hear 
any IPR matters subject to sections 16 and 17 of the Supreme Court Act (Cap. 5). WT/TPR/S/196 Trade Policy Review 
Page 66 
 
 
injunctions, orders to deliver or destroy the infringing product or the means of its production, 
damages, and accounts of profits.  Under certain circumstances, including falsely representing a product, criminal penalties may apply.  
125. Wilful counterfeiting of trade marks is a cr iminal offence under the Trade Marks Act 
(chapter 98) 1999
42, and may result in fines of up to B$100,000 or up to ten years imprisonment or 
both.  Furthermore, seized counterfeit goods may be  forfeited, destroyed or otherwise disposed of. 
                                                      
42 Criminal offences are dealt with under sections 94 -103 of the Trade Marks Act;  the penalty is a fine 
and imprisonment.  Goods will be forfeited upon application made through the Court .