WORLD TRADE ORGANIZATION  
ORGANISATION MONDIALE DU COMMERCE  
ORGANIZACIÓN MUNDIAL DEL COMERCIO  WT/TPR/M/196/Add.1 
10 April 2008 
 (08-1647) 
Trade Policy Review Body 
25 and 27 February 2008 Original: English/Spanish 
 anglais/espagnol  inglés/español 
 
TRADE POLICY REVIEW 
BRUNEI DARUSSALAM 
Minutes of Meeting
 
Addendum  
Chairperson:  H.E. Mr. Yonov Frederick Agah (Nigeria) 
 This document contains the advance writte n questions, and replies provided by Brunei 
Darussalam.1 
 __________________________________________________________________________________ 
Organe d'examen des politiques commerciales 
25 et 27 février 2008 
 
EXAMEN DES POLITIQUES COMMERCIALES 
BRUNEI DARUSSALAM 
Compte rendu de la réunion
 
Addendum  
Présidente:  H.E. M. Yonov Frederick Agah (Nigeria) 
 
 Le présent document contient les questions écrites communiquées à l'avance et les réponses 
fournies par Brunei Darussalam.1 
 
 __________________________________________________________________________________ 
Órgano de Examen de las Políticas Comerciales 
25 y 27 de febrero de 2008 
 
EXAMEN DE LAS POLÍTICAS COMERCIALES 
BRUNEI DARUSSALAM 
Acta de la reunión
 
Addendum  
Presidente:  Excmo. Sr. Yonov Frederick Agah (Nigeria) 
 
 En el presente documento figuran las pre guntas presentadas anticipadamente por escrito, 
junto con las respuestas facilitadas por Brunei Darussalam.1 
 
 
                                                      
1 In English and Spanish only./En anglais et espagnol seulement./En inglés y español solamente.  WT/TPR/M/196/Add.1 
 Page 3 
 
  WRITTEN QUESTIONS BY MEMBERS 
 
 
CANADA  
  
REPORT BY THE GOVE RNMENT (WT/TPR/G/196) 
  
No questions.  
 
 
REPORT BY THE SECRETARIAT (WT/TPR/S/196) 
 Summary Observations; (5) Outlook; Page xiii, Paragraph 27:  
  
The Secretariat Report notes that "Foreign investment  policies, while encouraging investment in all 
sectors, are unclear about limits on foreign equity holdings and the sectors in which investment is 
restricted".    
1. (a)  What actions will the Government of Br unei take to improve the transparency of the 
foreign investment regime both in the near and long term?   
    (b) Will the Government of Brunei issue a specific list of restricted sectors for foreign 
investment, including information on any limits on foreign equity holdings?  
 
I. Economic Environment; (5) Outlook; Page 17, Paragraph 43:   
 
The Secretariat Report notes a “lack of transparency  in government policies and the manner in which 
they are administered”, and a weak financial and statistical database with regards to “coverage, 
quality, timeliness and frequency”.    
2. Is anything being done to improve the sy stem in order to have a better and more 
effective way of data collection and timely dissemination of information?  
 
III. Trade policies and Practices by Measure; (2) Measures directly affecting imports; (iv) Tariff 
bindings; Page 41, Paragraph, 28;   
The Secretariat Report states that “Brunei did not sign the WTO Agreement on Information Technology products”.   
 
3. Could Brunei give further details on whether or not there are there any specific reasons for not signing the WTO Agreem ent on Information Technology products? 
 
III. Trade Policies and Practices by Measures; (2 ) Measures Directly Affecting Imports; (viii) 
Standards and sanitary and phyto sanitary measures; Pages 46-50: 
 
Canada notes that Brunei Darussalam has subm itted two WTO SPS notifications, the last one 
in March, 2004.    
4. Since then, has Brunei Darussalam cha nged or adopted any new SPS measures that 
affect international trade that were not notified to the WTO?    
 WT/TPR/M/196/Add.1 
Page 4  
 
  III. Trade Policies and practices by Measure; (2 ) Measures directly affecting Imports; (ix) 
Government procurement; Page 52, Paragraph 59:  
  
The Secretariat Report states that “[t]ender noti ces are published in the Pelita Brunei at least two 
weeks before the closing date of a tender”.  Cana da notes that government tenders are often open for 
less than a month and this is a challenge for forei gn companies interested in participating given the 
short timeframe for preparing the document and proposal.    
5. What is the process and what are th e criteria involved prior to the public 
announcement of a government tender? 
6. Does Brunei have any plans to streamline the procurement process?       
III. Trade Policy by Measure; (4) Measures Affecting Production and Trade; (vii) Intellectual 
property rights; (a) Overview; Page 60, Paragraph 97: 
 According to the Secretariat Report for Brunei Darussalam, “Brunei has not joined the Paris 
Convention for the Protection of Industrial Property”.   
 
7. Canada would appreciate Brunei’s views on whether it is considering joining this 
Convention. 
 
III. Trade Policy by Measure; (4) Measures Affecting Production and Trade; (vii) Intellectual 
property rights; (a) Overview; Page 60, Paragraph 98 & (b) Trademarks; Page 61, 
Paragraph 103: 
 Canada notes that according to the Secretariat Report for Brunei Darussalam, “[the Criminal Justice 
Division of the Attorney General's Chambers] does not have a public awareness programme as it lacks capacity in implementing such a programme ….The IP Section would benefit from appropriate 
technical assistance in this area as public awareness on IP  in the country is considered generally low”.  
The Secretariat further notes that, “[f]oreign [trade mark] applications account for 99% of all 
applications received”.   
8. Canada would be grateful  if Brunei could advise whether it is considering requesting 
technical assistance from WIPO or the WTO to enable it to promote public awareness on IP. 
 III. Trade Policy by Measure; (4) Measures Affecting Production and Trade; (vii) Intellectual property rights; (c) Patents; Page 62, Paragraph 105: 
 According to the Secretariat Report, “Brunei pr ovides protection for geographical indications under 
the Trade Marks Act (chapter 98)”.    
9. Canada would be grateful if Brunei c ould elaborate on the protection granted to 
geographical indications and, in particular , which types of products can receive such 
protection. 
 
III. Trade Policy by Measure; (4) Measures Affecting Production and Trade; (vii) Intellectual 
property rights; (c) Patents; Page 62, Pa ragraph 107 & (f) Trade Secrets; Page 64, 
Paragraph 117: 
 
Canada notes that according to the Secretariat Re port for Brunei Darussalam, “the Patents Order 1999 
was expected to be implemented in 2001 to repl ace the Inventions Act, 1984” but according to the 
authorities, “it has yet to be implemented”.  Similarly, the Secretariat Report states that “[t]he  WT/TPR/M/196/Add.1 
 Page 5 
 
 
  Ministry of Health is in the process of drafting legislation that will regulate the disclosure of 
information on medical products and cosmetics”.    
10. Canada would appreciate if  Brunei could provide an update on when these laws and 
regulations are expected to come into force.   
 III. Trade Policy by Measure; (4) Measures Affecting Production and Trade; (vii) Intellectual property rights; (c) Patents; Page 63, Paragraph 111:  
Canada notes that according to the Secretariat Report,  “[t]he exclusive rights to the invention can only 
cease if the Sultan declares in a public statement […] that the exclusive right, or the way in which it is 
exercised, is detrimental to Brunei Darussalam or prejudicial to the public”.   
 
11. Canada would appreciate if Brunei coul d provide details from examples of when 
patent rights have been deemed to  be detrimental in this way. 
 
III. Trade Policy by Measure; (4) Measures Affecting Production and Trade; (vii) Intellectual 
property rights; (d) Copyright and related rights; Page 63, Paragraph 113:  
 The Secretariat Report for Brunei Darussalam stat es that, “[the Copyright Order 1999] provides 
copyright protection for the creator's life plus 50 years for works…Copyright for published works is 
granted for 25 years from the year of the first publication.”    
12. Canada would appreciate if Brunei could confirm the term of protection granted to 
published and unpublished works. 
  
III. Trade Policy by Measure; (4) Measures Affecting Production and Trade; (vii) Intellectual 
property rights; (g) Enforcement and penalties; Page 65, Paragraph 121:  
 
According to the Secretariat Report regarding trade mark and copyright cases, “[d]elays are attributed 
due to the unavailability of the complainan t rights holder and necessary documents”.   
 
13. Canada would be grateful if Brunei c ould provide: (a) its views on why complainant 
rights holders are sometimes unavailable; and (b) more information on the necessary 
documents. 
  IV. Trade Policies by Sector; (5) Services; (ii)  Telecommunications; Page 85, Paragraph 71: 
 
The Secretariat notes that there ar e currently three telecommunications infrastructure providers which 
are locally owned and controlled, and, according to  the authorities, there is currently no significant 
foreign participation.  
14. Could Brunei Darussalam please clarify th e extent of any foreign participation in 
these providers? 
 
IV. Trade Policies by Sector; (5) Services; (ii)  Telecommunications; Page 86, Paragraph 73:  
 The Secretariat notes that although the licensing framework published by AiTi mandates a certain 
level of local loop unbundling (LLU), the lack of de facto LLU and competition in fixed-line 
telephony is one of AiTi's key issues.  
15. Could Brunei Darussalam provide further in formation on the actions taken by AiTi to 
address these issues? WT/TPR/M/196/Add.1 
Page 6  
 
   
The Secretariat notes that AiTi issues two types of  licenses, the second of which, SeTi, applies to 
telecommunications resale.  
16. Could Brunei Darussalam provide further information on the number of SeTi licenses 
issued to date, as well as the number of resale providers presently operating in Brunei 
Darussalam? 
 
IV. Trade Policy by Sector; (2) Agriculture, For estry, and Fishing; (i) Agriculture; Page 70, 
Paragraph 16:  
  
The Secretariat Report states that the “Imports of all meat and poultry produc ts are subjects to Halal 
requirements and may only be sourced  from government-approved abattoirs”. 
  
17. Could Brunei Darussalam give further de tails on its Halal requirements/certification 
for imports of all meat and poultry products? 
  
THE EUROPEAN COMMUNITIES
 
 
I. ECONOMIC ENVIRONMENT  
 
(1) I NTRODUCTION  
 
WTO Secretariat’s Report, page 1, para. 1 & page 6, para. 7  
 
According to paragraph 1, "The Government provides a wide range of free or heavily subsidized 
public services and employs 25% of the labour force".   According to paragraph 7, “It is estimated  that over 90% of the Bruneian labour force are employed 
by the public sector, including state-owned enterprises” [emphasis added]. 
 
1. Could Brunei Darussalam please clarify?  
 
WTO Secretariat’s Report, page 1, para. 1 
 According to the WTO Secretariat’s Report, “Some of  its policies, practices, and measures, including 
those pertaining to trade and foreign investment, are rather opaque”.   
2. How does Brunei Darussalam seek to incr ease transparency in this area?  
 
WTO Secretariat’s Report, page 1, para. 2 & page 72, para. 26  
 
According to paragraph 2, “The country continues to owe its economic prospe rity overwhelmingly to 
its abundant petroleum and natural gas resources […]”.   However, paragraph 72 states: “According to two re ports, Brunei’s oil reserves have to last 25 years 
or only another 10 years, at current rates of extrac tion. Brunei’s gas reserves […] are expected to last 
another 40 years”.   
3. Could Brunei Darussalam please indicate how it seeks to maintain its current level of 
prosperity in the future?  
  WT/TPR/M/196/Add.1 
 Page 7 
 
 
  WTO Secretariat’s Report, page 2, para. 3 & page 16, para. 42 
 
According to paragraph 2, “Since 2000, when the Government issued a landmark report acknowledging the country’s lack of a sufficiently diversified economic base, a series of plans to 
reduce unemployment, attract foreign investment , and restructure the economy away from over-
dependence on limited petroleum reserves have larg ely failed to achieve the desired changes”.  
According to paragraph 16, “A key, internal, long- term risk continues to be the slow pace of the 
Government’s diversification programme”.   
4. Could Brunei Darussalam please elaborate on how it seeks to enhance the effectiveness of its 
diversification programmes?  
 
(2) R
ECENT ECONOMIC DEVELOPMENTS  
 
(i) Macroeconomic performance  
 
(b) Employment   
WTO Secretariat’s report, page 6, para. 7&8 
 According to paragraph 7, the “Bruneization” po licy encourages companies to give preference to 
Bruneians in their employment policies.   However, paragraph 8 states that there is a “need fo r foreign workers”, particularly in the financial 
sector. 
 
5. Could Brunei please indicate how it seeks to make its “Bruneization” policy fit with the need 
for foreign workers for its economy?  
 (c) Prices   WTO Secretariat’s Report, page 6, para. 11 
 
It is stated that “Inflation continues to be constrai ned by the imposition of pr ice controls and subsidies 
on essential foods and petrol”.   
6. Does Brunei Darussalam share the view of the WTO Secretariat’s Report?  
 
(ii) Macroeconomic policies  
 
(a) Fiscal policy   WTO Secretariat’s Report, page 8, para. 19 
 
The aim of a “clean and healthy environment” is stated.   
7. Could Brunei Darussalam please indicate how it seeks to reconcile economic growth, and 
particularly the increasing importance of the fishery sector for its economy, with the aim of 
sustainable development?  
 WT/TPR/M/196/Add.1 
Page 8  
 
  WTO Secretariat’s Report, page 8, para. 20 & page 10, para. 28  
 
According to paragraph 20, “Information on the General Reserve Fund, administered by the 
autonomous Brunei Investment Agency is not ava ilable as the BIA presents its accounts only to the 
Sultan”.  
 
According to paragraph 10, “[…] the lack of ava ilable data on the Government’s investment income 
renders the level of transparency of the BIA rather low”.   
8. Why are data on the BIA lacking?  
 
9. Does Brunei Darussalam seek to increase the leve l of transparency with regards to BIA 
activities? If so, when?  
 (b) Monetary and exchange rate policies  
 
WTO Secretariat’s Report, page 10, para. 23 
 
It is stated that “One possible disadvantage is th at the resulting steady effective appreciation of the 
Brunei dollar may impede the Government’s effo rts to diversify the ec onomy and develop export 
industries”.  
 
10. Does Brunei Darussalam share the WTO Secretariat’s view?  
 
(iv) Structural policies: diversification of the economy  
 
WTO Secretariat’s Report, page 11, para. 29  
 
According to the WTO Secretariat’s Report, “[…] The strategy to achieve these goals was based on a 
broad corporatization/privatization effort, greater  foreign investment, and a more competitive labour 
market”.   
11. Could Brunei Darussalam please indicate whether it plans to further undertake liberalization 
efforts? If so, in which sectors?  
 
WTO Secretariat’s Report, page 11, para. 31 
 It is stated that “[…] there continues to be a strong government presence in the economy, often in the 
form of state-owned monopolies, which can act unencumbered by any competition law”.  
 
12. Could Brunei Darussalam please elaborate on its reasons for not having any competition law?  
 
13. Does Brunei Darussalam seek to  introduce competition law?  
 
“The very small size of the domestic market seems to discourage local and foreign participation in the 
economy […]”.   
14. Could Brunei Darussalam please indicate whethe r it intends to benefit from economies of 
scale by intensifying regional integration efforts?  
  WT/TPR/M/196/Add.1 
 Page 9 
 
 
  (3) D EVELOPMENTS IN TRADE  
 
(i) Composition of trade  
 
(a) Trade in goods  
 
WTO Secretariat’s report, page 12, para. 35  
 
According to the WTO Secretariat’s Report, “Brunei imports almost everything, including most 
foodstuffs and beverages”.  
 
15. Could Brunei Darussalam please explain if and how it wishes to meet the criterion of 
economic self-sufficiency?  
 
(ii) Direction of trade  
 
WTO Secretariat’s Report, page 15, para. 38  
 
According to the WTO Secretariat’s Report, “[…] the lowering of trade barriers within the ASEAN 
region through the ASEAN Free-Trade Agreement (AFTA ) may have led to some trade diversion”.  
 
16. Does Brunei Darussalam share the WTO Secretariat’s view?  
 
(5) O UTLOOK  
 
WTO Secretariat’s Report, page 17, para. 43 
 
According to the WTO Secretariat’s Report, “Lac k of reliable and timely data on, inter alia, 
investment income, balance of payments, monetary  statistics, the labour market, and the national 
accounts, as well as scant or non-existent info rmation about progress under the latest National 
Development Plan appear to highlight the general l ack of transparency, and thus public accountability, 
in the management of the economy”.   
17. How does Brunei Darussalam seek to improve data and statistics in these areas?  
 II. TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES 
 
(2) T
RADE POLICY OBJECTIVES AND ADMINISTRATION  
 
(i) Objectives  
 
WTO Secretariat’s Report, page 20, para. 13  
 
According to the WTO Secretariat’s Report, “The  Brunei Economic Development Board (BEDB) was 
set up in November 2001 to stimulate growth, expansion, and devel opment of the economy by 
promoting Brunei as an investment destination”.  
 In the World Bank's Doing Busi ness Report for 2008, Brunei scores 78 among 178 countries included 
in the report. Some of the biggest obstacles lie in  starting up a business, where a company needs to go 
through 18 procedures taking 116 days to complete. A ccording to the report, no reform progress has 
been made during the surveyed year.  
 WT/TPR/M/196/Add.1 
Page 10  
 
  18. Could Brunei Darussalam please elaborate on its reform plans in the short term in order to 
address these shortcomings in light of the Govern ment’s goal of encouraging the establishment of 
more private companies in the non-oil and gas sector?  
 
(3) T
RADE AGREEMENTS AND ARRANGEMENTS  
 
(ii) Regional agreements  
 
(a) ASEAN  
 
Brunei Darussalam’s Report, page 6, para. 10 & WT O Secretariat’s Report, page. 24-26, para. 25-31 
 
The EC takes note of the fact that no refere nce is made to the ongoing EU-ASEAN Free Trade 
Agreement negotiations which were launched on 4 May 2007 whereas Brunei’s report refers to them 
as “to begin in the near future”.  
 
19. Does Brunei Darussalam consider updating this language by mentioning that negotiations 
were launched on 4 May 2007?  
 (d) Trans-Pacific SEP  
 
Brunei Darussalam’s Report, page 7, para. 15  
 
According to Brunei Darussalam’s Report, “The Trans-Pacific Strategic Economic Partnership 
Agreement also has side agreements, namely the Environment Cooperation Agreement and Labour 
Cooperation Memorandum of Understanding, to reflect  a shared desire to encourage and promote 
sound labour and environment practices.  These agreements establish mechanisms for ongoing 
cooperation and dialogue on la bour and environment issues”  
 
20. Could Brunei Darussalam please elaborate on the specific actions taken “to encourage and 
promote sound labour practices”?  
 
21. In particular, what kinds of mechanisms for ongoing cooperation and dialogue on labour 
issues are being established?  
 
WTO Secretariat's Report, page 27, para. 37 
 
The WTO Secretariat's Report refers to upcoming Trans-Pacific SEP negotiations.   
22. Could Brunei Darussalam please indicate if evolutions of the regulatory framework for 
financial services contemplated in light of the ne gotiations on financial services are taking place 
this year in the context of the Trans-Paci fic Strategic Economic Partnership Agreement? 
 
(iii) Bilateral agreements  
 
WTO Secretariat’s Report, page 29, para. 40  
 According to the WTO Secretariat’s Report, “In December 2002, Brunei and the United States signed 
a Trade and Investment Framework Agreement (TIF A) […] It also includes consultations on the 
elements of a possible free trade agreement”.   
23. Could Brunei Darussalam please elaborate on the progress of consultations of such a possible 
free trade agreement?   WT/TPR/M/196/Add.1 
 Page 11 
 
 
  (4) F OREIGN INVESTMENT REGIME  
 
WTO Secretariat’s Report, page xiii, para. 27  
 According to the WTO Secretariat’s Report, “F oreign investment policies, while encouraging 
investment in all sectors, are unclear about limits on foreign equity holdings and the sectors in which 
investment is restricted, thereby providing scope for discretion in government decision-making”.  
 
24. Could Brunei Darussalam please elaborate on its  foreign investment policies, taking into 
account the above-mentioned assertion and expl ain how it reconciles discretion on foreign 
ownership caps with investors' need fo r predictability and legal certainty?  
 
(i) Legislative and institutional framework and investment procedures  
 
WTO Secretariat’s Report, page 29, para. 44 
 
It is stated that “Foreign nationals are generally not permitted to own land […]”.  
 
25. Could Brunei Darussalam please elaborate on the reasons for this prohibition?  
 
26. Does Brunei Darussalam seek to change this policy?  
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
 
(1) O
VERVIEW  
 
WTO Secretariat’s Report, page 33, para. 2 
 
It is stated that the gap between the applied a nd bound tariff rates “can bring about uncertainty for 
traders and other economic agents as it provides scope  for the authorities to raise applied tariffs”.  
 
27. Does Brunei Darussalam share the WTO Secretariat’s assessment?  
 
WTO Secretariat’s Report, page 33, para. 5 & page 51, para. 56  
 Paragraph 5 states that “Government procurement remains an important instrument of economic 
policy, and government construction activities, in particular, play a major part not only in the 
construction industry, but in the economy as a whole. Brunei is not a signatory to the WTO Government Procurement Agreement”.   Paragraph 56 states that “[…] the authorities state th at further study is needed before the Government 
can make a decision”.  
 
28. Given the fact that government procurement is  an important policy instrument in Brunei 
Darussalam, does Brunei Darussalam consider joining the WTO Government Procurement 
Agreement?  
 
29. Which further study is necessary before Brunei Darussalam can make a decision on joining 
the WTO Government Procurement Agreement?  
 WT/TPR/M/196/Add.1 
Page 12  
 
  WTO Secretariat’s Report, page 34, para. 8 
 
According to the WTO Secretariat’s Report, “Brunei does not appear to have a strong record in IPR 
enforcement”.  
30. Which steps is Brunei Darussalam undertaking in order to improve its IPR enforcement 
record?  
 
(2) M
EASURES DIRECTLY AFFECTING IMPORTS  
 
(i) Customs procedures  
 
WTO Secretariat’s Report, page 35, para. 12 & page 44-46, para. 32-36 
 
It is mentioned that Brunei maintains import rest rictions on certain goods for health, sanitary and 
phytosanitary reasons as well as moral reasons, whic h for example includes import restrictions on live 
cattle and poultry.  
 
31. Could Brunei Darussalam please confirm that these restrictions are fully in line with the SPS 
agreement, and as such, do not violate the OIE Terrestrial Animal Health Code 2007? 
 (iii) Applied tariff 
 
(a) Structure of the MFN tariff   
WTO Secretariat’s Report, page 38, para. 20  
 
It is stated that “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”.   
32. Does Brunei Darussalam intend to make informati on available with regards to the 131 lines?  
 
“High rates of smuggling” are also mentioned.   
33. Which steps is Brunei Darussalam undertaki ng in order to reduce these high rates of 
smuggling?  
 
(iv) Tariff bindings  
 
WTO Secretariat’s Report, page 41, para. 28  
 
According to the WTO Secretariat’s Report, “Brunei did not sign the WTO Agreement on 
Information Technology Products”.  
 
34. Does Brunei Darussalam intend to sign the WTO Agreement on Information Technology 
Products?  
  WT/TPR/M/196/Add.1 
 Page 13 
 
 
  (v) Other charges affecting imports  
 
WTO Secretariat’s Report, page 43, para. 30  
 
The possibility for the Minister of Finance to im pose and revoke excise taxe s on any goods as deemed 
appropriate could create uncertainty for private companies.  
 
35. Could Brunei Darussalam please elaborate on the criteria according to which goods could be 
subject to excise? If no such regulations/criteria are in place, could Brunei Darussalam please indicate if regulations are in the making?  
(viii) Standards and sanitary and phytosanitary measures  
 
36. Could Brunei Darussalam please explain why au thorities request a sanitary certificate for 
each European olive oil imported? 
 
(b) Sanitary and phytosanitary measures  
 
WTO Secretariat's Report, page 49, para. 45 
 
According to the WTO Secretariat's Report, "Followi ng 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".  
 With regard to Avian Influenza could Brune i please provide information on the following: 
 
37. Could Brunei Darussalam ensure that it applies all OIE recommendations with regard to 
import restrictions for reasons of avian influenza (AI)?  
 
38. If not, please could Brunei Darussalam ple ase clarify and explain whether Brunei is 
considering bringing its measures in line with OIE recommendations? 
 The OIE recommendations (Article 2.7.12.20) state th at heat-treated meat (following a process which 
ensures destruction of AI virus) can be safely trad ed regardless of the AI status of the exporting 
country.   
39. Could Brunei Darussalam ensure that import rest rictions are not being applied to EU exports 
of heat-treated poultry products?  
 
40. If so, could Brunei ensure that import restric tions are in accordance to the above-mentioned 
OIE recommendations?  
 An exporting country can re-gain its AI free status  after 90 days with no outbreaks, in accordance 
with the OIE Animal Health Code. The EC would al so like to point out that , according to the OIE, 
countries with outbreaks of AI only in the wild bird population should not suffer any import 
restrictions on poultry products.   
41. Is Brunei Darussalam following the above -mentioned approach, in accordance with 
international recommendations?  
 WT/TPR/M/196/Add.1 
Page 14  
 
  WTO Secretariat's Report, page 49, para. 46 & page 70, para. 16 
 
According to paragraph 46, "Under the 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 Islam; for 
slaughterhouses not on the list, an inspection commit tee, including representatives from the Ministry 
of Religious Affairs, the Majlis, the Ministry of H ealth, and the Department of Agriculture is required 
to inspect and approve the abattoir. The Board forw ards the application to the Majlis who makes the 
final decision on issuing the import permit".   According to paragraph 16, "Imports of all m eat and poultry products are subject to Halal 
requirements and may only be sourced from government-approved abattoirs".  
 The EC has no intention to contest the legitimacy of  the Halal Meat Act. However, the EC would like 
to highlight that the system of abattoir approval im plies that a lengthy procedure of approval has to be 
performed for every single establishment wishing to export agricultural products to Brunei 
Darussalam including on the spot inspection visits carried out by Bruneian officials. 
 
42. The EC would like to know if Brunei Darussalam  considers amending the relevant legislation 
in order to allow for EU exports of agricultural pr oducts to benefit also from a similar system of 
pre-listing and so as to make it not more trade restrictive than necessary to fulfil its legitimate 
objective?  
 
By way of example, the EC does not impose a lengthy approval system on countries wishing to export to the EU. Moreover, the EC practice is to allo w third countries to authorise the establishment to 
export to the EC by themselves, once the country itself has been approved. This is the so-called 
prelisting system.  
 
(ix) Government procurement  
 
(a) Overview   
WTO Secretariat’s Report, page 50, para. 53 
 
It is stated that “Although foreign suppliers can part icipate in government tenders, most retain a local 
agent to represent them in Brunei, as corporate relationships with the Government are of great importance”.   
43. Is the presence of a local agent compulsory fo r foreign suppliers or is it just advisable?  
 It is further stated that “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”.  
 
44. Which steps is Brunei Darussalam undertaking in order to increase the chances of foreign 
suppliers without local knowledge?  
 
WTO Secretariat’s Report, page 51, para. 54 
 
According to the WTO Secretariat’s Report, “The notification timeframe from receiving tender 
recommendations to award of contr acts is approximately a month”.  
 
45. How much can this figure vary and under which conditions?  
  WT/TPR/M/196/Add.1 
 Page 15 
 
 
  (b) Tendering procedures  
 
WTO Secretariat’s Report, page 52, para. 58  
 
According to the WTO Secretariat’s Report, “No detailed data were available from the authorities 
concerning the breakdown of procurement contract s awarded and their values by tender method”.  
 
46. Does Brunei Darussalam intend to make data  on the breakdown of procurement contracts 
available? If so, when?  
 (x) Import-related operations of state enterprises  
 
WTO Secretariats Report, page 52, para. 61 & page 54, para. 70  
 
According to paragraph 61, “Brunei has not notif ied any state-trading enterprises to the WTO”.  
 
According to paragraph 70, “No information was av ailable to the Secretariat on exports by state 
enterprises”.   
47. Could Brunei Darussalam please confirm that there are no state-trading enterprises?  
 
48. If state-trading enterprises exist, could Brunei Darussalam please explain if and when it 
intends to notify them to the WTO?  
 
(4) M
EASURES AFFECTING PRODUCTION AND TRADE  
 
(i) Legal framework for businesses  
 
WTO Secretariat’s Report, page 54, para. 73 
 
According to the WTO Secretariat’s Report, “At least half the directors of a company incorporated in 
Brunei must be either nationals of Brun ei or ordinary resident in Brunei”.  
 
49. Could Brunei Darussalam please elaborate on the rationale of this policy?  
 
(iii) Incentives  
 
(b) Tax incentives   
WTO Secretariat’s Report, page 56, para. 81 
 
According to the WTO Secretariat’s Report, “Br unei’s economic developmen t might be better served 
by a more broadly-based corporate income tax syst em involving fewer incentives, but with a tax rate 
substantially lower than the 30% currently levied”.   
50. Does Brunei Darussalam share the WTO Secretariat’s assessment?  
 WT/TPR/M/196/Add.1 
Page 16  
 
  (v) The public sector and private investment  
 
(a) The public sector   
WTO Secretariat’s Report, page 58, para. 89 
 
According to the WTO Secretariat’s Report, “Public sector monopolies also appear  to exist in key 
infrastructure sectors, including electricity, and water” [emphasis added].   
51. Could Brunei Darussalam confirm if such public sector monopolies exist?  
 
52. If so, does Brunei Darussalam intend to keep these monopolies? If so, why?  
 
WTO Secretariat’s Report, page 58, para. 91 
 The Government through various efforts encourag es expansion of the non-oil and gas sector and is 
said to aiming at reducing direct Government invol vement in the economy. Nevertheless, Government 
enterprises are directly involved  in several sectors of the econom y, which could be run by private 
companies, including SMEs.   
53. Could Brunei Darussalam please elaborate on the efforts it is pursuing in order to reduce the 
role of state-owned enterprises, in par ticular in commercially viable sectors?  
54. How has the contribution of state-owned ente rprises to the national economy evolved since 
the introduction of the Eighth National Development Plan? 
 
(vi) Competition policy  
 
WTO Secretariat's Report, page 60, para. 96 
 
It is stated that, "According to Brunei's APEC I ndividual Action Plan, it has no specific legislation on 
competition policy but it is considering competiti on policies in line with APEC principles".  
 
55. Could Brunei Darussalam please provide more information on the process and the timescale 
for the announced adoption of "competition po licies in line with APEC principles"?  
 
(vii) Intellectual property rights  
 (b) Trade marks  
 
WTO Secretariat’s Report, page 61, para. 102  
 
According to the WTO Secretariat’s Report, “Under the Act, a foreign applicant must provide an address in Brunei Darussalam for all related correspondence from the Registrar”.  
 
56. Could Brunei Darussalam please elaborate on the rationale of this policy?  
  WT/TPR/M/196/Add.1 
 Page 17 
 
 
  (c) Patents  
 
WTO Secretariat’s Report, page x, para. 15 
 
According to the WTO Secretariat’s Report, Brunei Darussalam “still needs to implement its Patent 
Order (that dates from 1999) to provide patent protection for, inter alia, pharmaceutical and 
agricultural products and processes”.  
57. Could Brunei Darussalam please elaborate on the measures it is implementing in order to 
protect the intellectual property rights especially  in pharmaceutical and agricultural sectors? 
 
WTO Secretariat’s Report, page 62, para. 107 
 
It is stated that “Due to a lack of qualifie d persons and expertise substantive examination for 
patentability will be conducted abroad under a refe rral arrangement with foreign patent offices”.  
 
58. Could Brunei Darussalam please elaborate on the role of these foreign patent offices?  
 
59. How is confidentially ensured?  
 (g) Enforcement and penalties  
 
WTO Secretariat’s Report, page 64, para. 118  
 
60. Is Brunei Darussalam aiming at introducing le gislation on disclosure of information on 
medical products and cosmetics? If so, when?  
 
61. Could Brunei Darussalam confirm that such legi slation will be fully aligned with the TRIPS 
Agreement in this respect?  
IV. TRADE POLICIES BY SECTOR  
 
(4) N
ON-OIL AND GAS SECTOR  
 
(i) Production and trade  
 
WTO Secretariat’s Report, page 71, para. 23 
 
According to the WTO Secretariat’s Report, “Brune i’s economy has followed the swings of the world 
oil market […]”.   
62. Which steps is Brunei Darussalam undertaking in  order to decrease its economic dependence 
on the swings of the world oil market?  
 
(ii) Oil and gas industry  
 
(a) Petroleum refining and other downstream activities   WTO Secretariat’s Report, page 75, para. 33 
 
According to the WTO Secretariat’s Report, “The G overnment is keen to encourage investment in 
downstream activities […]”.   WT/TPR/M/196/Add.1 
Page 18  
 
  63. Could Brunei Darussalam please elaborate on the nature of the liberalisation regime for 
foreign service providers willing to supply energy products distribution services?  
 
64. In light of the importance of the oil and gas sector for Brunei's economy, what is the current 
liberalisation regime and what are the conditions  ruling the provision of energy-related services 
by foreign service providers to those companies licensed to exploit the hydrocarbon resources?  
 
65. Is Brunei Darussalam considering undertaking co mmitments and reflecting its actual level of 
liberalisation in energy-related services sectors, as suggested notably in th e collective request on 
energy-related services?  
 
(5) S
ERVICES  
 
(i) Overview 
 
WTO Secretariat’s Report, page 78, para. 49 
 
According to the WTO Secretariat’s Report, “R ecognizing the importance of services for economic 
growth, the Government aims to transform Brunei into a service hub for trade and tourism (SHuTT)”.  
 
66. In light of plans to turn Brunei Darussalam into a services hub for trade and tourism, could 
Brunei Darussalam please elaborate on the conditi ons applying to foreign services suppliers 
interested in providing restaurant, hotel, travel ag encies, and tour operator services in Brunei?  
 
67. Could Brunei Darussalam please explain if consider ation is given to further liberalisation of 
tourism and travel-related services, as well as of infrastructure sectors that play a crucial role in 
the development of an efficient tourism indus try such as transport and construction services? 
 
WTO Secretariat’s Report, page 78, para. 51 
 
According to the WTO Secretariat’s Report, "The aut horities have indicated that they intend to revise 
their offer at an appropriate time in the DDA negotiations". 
 
68. Could Brunei Darussalam please inform us a bout the content of the new offer that the 
authorities indicated to revise in relation to future liberalisation?  
 
 
AUSTRALIA  
 
II. TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES  
 
1. The Secretariat report notes that “(t)he institu tional framework is characterized by a lack of 
transparency with respect to trade and trade-re lated policies, to the detriment of government 
accountability” (WT/TPR/S/196, page 18, paragraph 2).  The Report by Brunei Darussalam does not 
appear to contain any statements that address this  issue.  What are Brunei Darussalam’s current 
policies and practices relating to the publication of  trade measures and what steps is it taking to 
improve transparency in this area? 
  WT/TPR/M/196/Add.1 
 Page 19 
 
 
  (3) T RADE AGREEMENTS AND ARRANGEMENTS  
 (i) Multilateral agreements 
 2. Like all WTO Members, Brunei Darussalam is required to make regular notifications to the 
WTO in accordance with various WTO provisions (W T/TPR/S/196, page 24, pa ragraph 23 and page 
104, Table AII.1).  Brunei Darussalam has several regular WTO notifications outstanding, including 
notifications for agriculture domestic support and st ate trading enterprises.  Could Brunei Darussalam 
advise when it will be able to provid e WTO Members with these notifications? 
 
(4) F
OREIGN INVESTMENT REGIME  
 
3. The Secretariat report notes that in relation to  foreign investment, “only activities relating to 
national food security and those based on natural resources require local equity participation” 
(WT/TPR/S/196, page 29, paragraph 43).  How do es Brunei define the concept of “national food 
security” and the range of activities/products  that are covered by that concept? 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
 
(2) M EASURES DIRECTLY AFFECTING IMPORTS  
 (iii) Applied tariff 
 
4. Australia notes Brunei Darussalam’s relatively low average applied MFN tariff 
(WT/TPR/G/196, page 7, page 19).  The Secretaria t was, however, unable to include in its tariff 
analysis the specific tariff rates on 131 lines as information on ad valorem  equivalents was not 
available (WT/TPR/S/196, page 38, paragra ph 20).  Could Brunei Darussalam provide ad valorem  
equivalents for the specific tariff rates applied to  various products such as cigarettes, alcoholic 
beverages, coffee, tea, petroleum oils and lubricants? 
 
5. What is Brunei Darussalam’s policy rationale for the maintenance of high tariffs on wood and 
wood products, and certain machin ery and appliances, vehicles a nd vehicle parts and precision 
instruments and apparatus?  Is Brunei taking an y steps to review these policy settings and reduce 
those tariffs? 
 
(iv) Tariff bindings  
 
6. What are Brunei Darussalam’s reasons for not having become a party to the WTO 
Information Technology Agreement?  Does Brune i Darusssalam apply tariffs to information 
technology products? 
 
7. Within the Doha Round non-agricultural ma rket access (NAMA) negotiations, provision has 
been created for “small, vulnerable economies” not  to apply the general tariff reduction formula 
modality to their bound tariffs.  Members with less than  0.1% share of world trade may have access to 
this provision.  Can Brunei Darussalam clarify as to whether it considers itself to be a small, 
vulnerable economy, or whether it would anticipat e applying the same general tariff reduction 
formula modality as other developing countries?  
(ix) Government procurement 
 
8. The Secretariat report (WT/TPR/S/196, page 51, paragraph 56) notes that Brunei is not a 
signatory to the WTO Government Procurement Agreem ent, and that “the authorities state that further 
study is needed before the Government can make a decision”.  It is, however, noted that coverage WT/TPR/M/196/Add.1 
Page 20  
 
  under the Trans-Pacific Strategic Economic Partnershi p (SEP) Agreement is ex tensive and that Brunei 
Darussalam has been given two years (from July  2006) to negotiate its government procurement 
schedule.  The Report by Brunei Darussalam notes that it is preparing its list for entities under the Government Procurement chapter (WT/TPR/G/196, pa ge 7, paragraph 15).  What progress has Brunei 
made in negotiating its government procurement schedule under the Trans-Pacific SEP Agreement?  
Could these commitments form a basis for broader liberalisation of its government procurement 
activities and accession to the WTO Government Procurement Agreement?  If so, to what extent?  
(4) M
EASURES AFFECTING PRODUCTION AND TRADE  
 
(vii) Intellectual property rights 
 
9. Australia notes that enforcement of intellect ual property (IP) rights is based on complaints 
lodged by the registered owner (WT/TPR/G/196, pa ge 10, paragraph 31).  What process does a right 
holder have to undertake to lodge a comp laint and how is the complaint processed? 
 
10. Under Brunei Darussalam’s current statutory re gime, police powers of investigation of IP 
criminal offences are also dependant upon the receipt of a complaint by the right holder (WT/TPR/S/196, page 64, paragraph 118).  Are ther e any circumstances where criminal investigations 
may be launched by the police without receiving a complaint?  If so, please provide examples. 
 
11. Australia notes that Brunei Darussalam’s C opyright Order is being amended (WT/TPR/S/196, 
page 64, paragraph 114).  Are furt her details about the amendments  available, and when are the 
amendments expected to enter into force?  
12. Australia notes and welcomes Brunei Darussalam ’s work regarding electronic filing of trade 
mark applications (WT/TPR/S/196, page 61, para graph 104).  Can Brunei Darussalam cofnirm that 
the project was completed by end 2007 as expected?  13. Australia notes the reluctance of right holders to protect their own rights through border enforcement provisions under the relevant IP legi slation (WT/TPR/G/196, page 10, paragraph 33).  
Why are right holders reluctant to rely on these measures? 
IV. TRADE POLICIES BY SECTOR 
 (2) A
GRICULTURE , FORESTRY , AND FISHING  
 
(i) Agriculture 
 
14. Australia notes that as part of Brunei Daruss alam’s diversification program (Eighth Plan), 
B$90.5 million was allocated to agriculture from 2001-05 to encourage development within that 
sector (WT/TPR/S/196, page 68, paragraph 9).  How does Brunei Darussalam intend to notify the 
programs arising from this funding in its domestic support notification in accordance with Article 18.2 
of the Agreement on Agriculture?  15. The Secretariat’s report (WT/TPR/S/196, page 68- 69, paragraph 11 and footnote 4) states that 
the government of Brunei Darussalam used various  schemes, such as price support, to increase rice 
production.  How does Brunei Darussalam’s end-pr oduct subsidy scheme for rice producers operate?  
Would Brunei Darussalam confirm that this support would form part of its Current Total Aggregate 
Measure of Support (AMS) calculation?   WT/TPR/M/196/Add.1 
 Page 21 
 
 
  (5) S ERVICES  
 
16. The Secretariat report notes that foreigners ma y be allowed to hold up to 100 per cent of the 
equity in certain industries and activities in whic h the Government wishes to encourage investment 
(WT/TPR/S/196, page 29, paragraph 44).  The Secret ariat report also identifies some of the industry 
sectors in which Brunei is seeking to encourage fore ign investment: transport and logistics, business 
services, financial services, and hospitality and tour ism (Box II.2 on page 31).  To what extent does 
Brunei take into account the role that improved GATS commitments could play in advancing the 
objectives of the Economic Development Boar d’s economic diversification strategy? 
 
17. Australia notes Brunei's current GATS Mode 4 commitments regarding managers, executives 
and specialists but understands that current domestic regulation limits holders of  relevant visas to a 
single entry.   In Australia's view, multiple entr y visas for short term service suppliers facilitate 
increased trade in services and investment.  Is Brune i considering altering its current visa regulations 
to permit multiple entry by temporary entry visa holders? 
 
18. Australia is disappointed by Brunei's MFN ex emption on legal services and its failure to make 
or offer any commitments on legal services.  Is Brune i considering any legislative change that would 
enable it to make legal services commitments in future?  
 
UNITED STATES
 
 
WT/TPR/S/196 
 
TRADE POLICY FRAMEWORK 
 
Transparency 
  One theme of the Secretariat Report is the need for greater transparency in government 
policies and the manner in which they are admini stered (see, for instance, Summary Observations 
page viii).  As examples, the Report mentions the av ailability of information about foreign investment 
policies; the coverage, quality, timeliness, and frequency  of financial statistics; information about the 
National Development Plan and its  progress; and the procurement and trading activities of state 
enterprises. 
 
• What steps is Brunei contemplating to improve the transparency of its policies and activities 
in these areas? 
 
TRADE POLICY AND PRACTICES BY MEASURE 
 
Import Restrictions and Licensing  
 The information on imports subject to licen sing described (on page 46 paragraph 35 of the 
Secretariat Report as well as in Table AIII.2) appe ars to be different from the products listed in 
Brunei’s import licensing questionnaire (G/LIC/N /3/BRN/1), including w ith respect to some 
important U.S. exports such as medical products and telecommunications equipment.  We would 
appreciate information on Brunei’s plans fo r updating its import licensing notifications. 
 WT/TPR/M/196/Add.1 
Page 22  
 
  Standards and Sanitary a nd Phytosanitary Measures  
 
 The United States acknowledges the recent WTO TBT notification from Brunei on its proposed halal requirements.  The United States is in the process of reviewing this notification and 
providing comments on the proposed measure.  We note that the Secretariat Report (page 49 
paragraph 46) refers to the perm it requirements in the Halal Meat Act and the Halal Certificate and 
Halal Label Order 2005.  At the time of publication,  halal meat and poultry could only be imported 
from Malaysia and Australia.  The Report adds that  live cattle are imported from Brunei's state-owned 
cattle farm located in northern Australia.  Based on this information, we have the following questions: 
 
• Will Brunei's halal requirements and the process fo r obtaining approvals be available online?  
If yes, please identify the website.  If not, wh ere will the final rules and requirements be 
published? 
• Regarding restrictions on beef and poultry, what steps must foreign slaughterhouses 
(abattoirs) take in order for the Minister of Religious Affairs to a pprove these products for 
importation into Brunei? 
• Are Malaysia and Australia the only WTO Members with approved abattoirs?  To date, how 
many foreign abattoirs has Brunei appr oved?  How long is the approval process?  
• Will Brunei’s halal requirements allow for the use of facilities that have been properly 
cleaned in accordance with Isla mic requirements, if they have been used once for non-halal 
foods?  If not, please explain.  
• Does Brunei require all food processing plants in  foreign countries to undergo site inspection 
as a condition for approval?  
• Do food ingredients like additives, preservativ es and coloring require Brunei’s religious 
authorities’ approval?  
 
State Trading 
 According to the Secretariat Report (page 54 paragraph 70), little information is available 
about the trading activities of state enterprises incl uding the Ministry of Finance’s Department of 
Information Technology and State Stores, whic h handles rice imports, and we  could find no 
notifications to the Working Party on State Enterprises.   In light of the important role played by state 
enterprises in Brunei, we urge the government of  Brunei to submit these notifications.  Does Brunei 
have plans do so? 
Subsidies 
 The Secretariat Report identifies several subsidy programs that appear to be 
notifiable under Article 25 of the Agreement on Subsidies and Countervailing Measures.  These 
include the Investment Incentives Order 2001, the Pioneer Status and Inco me Tax Relief program, 
and other tax and tariff exemptions for compan ies investing in the Brunei-Indonesia-Malaysia-
Philippines East Asian Growth Area (BIMP-EAGA).  The Secretariat's Report also notes that the only 
subsidies notification Brunei has submitted pursuant to Article 25 of the Agreement on Subsidies and 
Countervailing Measures was in 1997.  What are Br unei’s plans for submitting its next subsidies 
notification? 
Intellectual Property Rights  
 When does Brunei expect to implement the Pate nt Order of 1999 (page 62 paragraph 107 of 
the Secretariat Report)?  
 
 On copyrights and related rights (page 64 para graph 114 of the Secretariat Report), what is 
the status of the amendments to the Copyright Order?  What is Brunei’s projected timing for 
implementation?  WT/TPR/M/196/Add.1 
 Page 23 
 
 
   
• Will the amendments contain provisions to addr ess enforcement against infringements in the 
digital environment and electronic commerce? 
• Are there plans to increase pub lic awareness activities regarding the importance of IPR 
enforcement in the digital realm? 
• Is Brunei considering giving ex officio  authority to Police and Customs officials to enforce 
against pirated works?  Providing ex officio  authority to law enforcement would remove the 
need for rights holders to participate in ev ery case, which is not possible for many rights 
holders because of resource constraints, while  allowing authorities to act against illicit goods. 
  Does Brunei intend to accede to the WIPO Internet Treaties?   With respect to copyright and related rights (p age 65 paragraph 119 of the Secretariat Report), 
what process should rights holders follow to inv oke border enforcement measures to prevent import 
of infringing goods?  Is this information available to the public?   With respect to criminal cases,  what is the process for rights holders to follow in filing a 
complaint?  Is this information available to the public? 
 
 How does Brunei prevent unauthorized uses of  well-known marks on dissimilar goods?  (Per 
TRIPS Article 16(3), WTO members must prevent unauthorized uses of registered, well-known trademarks, even if those uses are on goods or se rvices that are dissimilar to the goods/services 
associated with the well-known mark if (1) the unauthorized use would suggest a false connection 
between the goods and the owner of the well-k nown trademark, and (2) the use damages the 
trademark owner’s interests.)   Do the marks that Brunei has registered as certification marks include marks that are 
geographical indications?  
 Regarding intellectual property rights enforc ement and penalties (page 66 paragraph 125 of 
the Secretariat Report), how many criminal prosecu tions have been undertaken due to offenses under 
the Trade Marks Act of 1999?  What types of penalties were imposed? 
 
TRADE POLICIES AND PRACTICES BY SECTOR 
 
Agriculture 
 
 Page 70 paragraph 15 of the Secretariat Report comments that  "some agricultural products, 
i.e., rice, sugar, and salt, are subject to import restrictions.”  The Secretariat Report also says “most of 
Brunei's rice is imported directly by the Departme nt of Information Technology and State Stores 
under a government-to-government contract from Thailand."  
• What specific restrictions are in place on these products?  Please provide a complete list of 
agricultural products facing such import restrictions.  
 
• Are licenses required to import rice, sugar, and salt?  What is the procedure for obtaining such 
licenses?  Has Brunei included this informati on in its WTO import licensing notifications? 
  Page 70 paragraph 16 of the Secretariat Repor t notes that imports of beef and poultry are 
subject to a "food balancing require ment,” apparently adjusting imports to meet expected demand. 
 WT/TPR/M/196/Add.1 
Page 24  
 
  • What is the process for determining import volumes?  Is the process public?  What ministry 
or agency makes the determination?  Is the d ecision published in a gazette or other public 
notice? 
 
Forestry  
 Page 70 paragraph 18 of the Secretariat Repor t mentions that illegal logging appears to be 
increasing near border areas.  We know Brunei attaches great importance to conservation and 
sustainable forestry management.  We would we lcome an update on Brunei’s own efforts to curb 
illegal logging and its associated trade, as well as the government’s cooperative efforts with its 
neighbours, including the tri-national effort to protect the Heart of Borneo. 
Services 
 
 Page 78, paragraph 49 of the Secretaria t Report:  Brunei recognizes the importance of 
services for economic growth and diversification a nd has developed the Service Hub for Trade and 
Tourism (SHuTT) to promote priority services sectors. 
 
• Please describe the substance and operation of the SHuTT program.  What is the basis upon 
which Brunei determines which of its services sectors is a priority?  How does Brunei promote priority services sectors? 
 
• Brunei has identified tourism as a priority sector  and has set a target of 250,000 tourists by 
2010.  How does Brunei intend to reach this goal?   What further actions is Brunei taking to 
develop related industries such as transpor t, communications, and banking services? 
 
• Is Brunei considering additiona l commitments in the GATS as a way to reflect the importance 
of services to the diversification and growth of Brunei’s economy? 
 
 Page 81, Paragraph 61 of the Secretariat Repor t.   The Secretariat Report mentioned that 
Brunei had hoped to harmonize Islamic and conventi onal banking regulations by 2007.  Could Brunei 
inform us of the current timeline to complete this harmonization?  Wh ich regulations require 
harmonization?  What is the status of the new Islamic Banking Order 2007?  
 
COLOMBIA
 
 
Reporte de la Secretaría WT/TPR/S/196 
 
Preguntas: 
 
II. REGIMEN DE POLÍTICA COMERCIAL: MARCO Y OBJETIVOS 
 4) Régimen de Inversiones Extranjeras 
 
i) Marco legislativo e institucional y procedimientos de inversión 
 
“45.  …La Autoridad para el Desarrollo Industrial de Brunei (BINA) ha desa rrollado varios polígonos 
industriales cerca del Puerto de Mu ara y en otras partes de Brunei, con infraestructura para facilitar el 
establecimiento de pequeñas y medianas empresas.”   
 
• ¿Cuál es la diferencia entre los polígonos in dustriales, las zonas de elaboración para la 
exportación y los parques industriales?  WT/TPR/M/196/Add.1 
 Page 25 
 
 
  • ¿Qué tipo de incentivos se otorgan a las empresas que se instalen en los polígonos 
industriales? 
• ¿Cuál es el monto del presupuesto asignado por el Gobierno de Brunei anualmente para los 
incentivos que se otorgan en los polígonos industriales? 
• ¿Pueden las empresas nacionales o locales de Brunei instalarse en los polígonos industriales?.  
En caso afirmativo, ¿Las empresas nacionales o locales de Brunei reciben los mismos incentivos que las empresas extranjeras localizadas en dichos polígonos? 
• ¿Empresas de cualquier sector pueden loca lizarse en los polígonos industriales?  
 
“47.  Además, la BEDB (Junta de Desarrollo Ec onómico de Brunei) anunció  importantes incentivos y 
préstamos para fomentar otros proyectos de inve rsión del Extranjero.  Consultorías internacionales 
han confirmado el potencial de crecimiento que enci erran los siguientes sectores:  hotelería y turismo, 
principalmente turismo ecológico, turismo depor tivo y turismo médico; servicios financieros 
especialmente servicios especializados de alta ca lidad de gestión de inve rsiones y de fondos de 
activos;  servicios de transporte y logística, centrados principalmente en los servicios de 
mantenimiento de aeronaves; y servicios prestados a las empresas, centrados en el desarrollo de 
programas informáticos y la contratación externa de procesos empresariales”.   
• ¿Cuáles son los incentivos anunciados en este párrafo por parte de la BEDB para otros 
proyectos de inversión del extranjero? 
• ¿Se aplican a las inversiones enunciadas en est e párrafo exenciones fiscales adicionales a las 
mencionadas en el Cuadro AIII.3? 
• ¿Los interés a los préstamos anunciados para fomentar otros proyectos de inversión del 
extranjero tendrán tasas de interés especiales o subvencionadas por el Gobierno de Brunei? 
 
III. POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS 
 
viii) Normas y medidas sanitarias y fitosanitarias.  
 
“47.  La ley de Sustancias Tóxicas y el Reglamen to sobre Uso Indebido de Medicamentos, cuya 
aplicación corresponde al Servicio de Observancia Farm acéutica del Ministerio de Salud, prevén otras 
restricciones sanitarias.  En particular, contienen la reglamentación de todas las importaciones y 
exportaciones de productos farmacéuticos, químicos y agroquímicos, plaguicidas, etc., con asistencia 
del Departamento de Aduanas….”. 
• ¿Cómo o donde puede obtenerse las reglam entaciones mencionadas en este párrafo? 
• ¿Se encuentran estas reglamen taciones en idioma inglés? 
• ¿Cómo o donde pueden obtenerse las reglamenta ciones vegetales y las reglamentaciones 
zoosanitarias que se mencionan en los párrafo s 44 y 45 de esta misma sección, en idioma 
inglés? 
 ix) Operaciones de empresas estatales rel acionadas con las importaciones. 
 
“61.  Brunei no ha notificado a la OMC la existencia  de empresas de comercio de Estado.  A través 
del Departamento de Tecnología de la Información y Almacenes del Estado, del Ministerio de 
Finanzas, el Estado importa directamente cierto s productos sujetos a restricciones y licencias de 
importación, tales como arroz y el azúcar.  En concreto, el Departamento importa gran parte del arroz 
de Brunei a través de BruSiam Food Alliance, empr esa mixta de los Estados de Brunei y Tailandia.  
El Departamento expide también permisos pa ra la importación de otros productos sujetos a 
restricciones, tales como sal.   WT/TPR/M/196/Add.1 
Page 26  
 
  • Además de arroz, azúcar y sal, ¿Qué otros productos agropecuarios y no agropecuarios 
requieren permiso para su importación en Brunei? 
 
IV. POLÍTICAS COMERCIALES, POR SECTORES 
 
5)  Servicios 
 ii) Servicios Financieros. 
 
“63.  Para diversificar los servicios financieros en Brunei y hacer de dicho país un centro bancario y 
de negocios extraterritorial en la región, el G obierno creó el Centro Financiero internacional de 
Brunei (BIFC) en 2000 que ofrecía servicios financ ieros tanto convencionales como islámicos.  La 
legislación que acompañaba la formación del IIFC introducía medidas contra las actividades de 
blanqueo de dinero y trataba de armonizar la s normas de Brunei con las normas internacionales 
vigentes al respecto, a fin de potenciar la transparencia y atraer empresas…”.  
 
• ¿Además de la Orden sobre bl anqueo de dinero, Brunei ha adoptado otras medidas para 
contrarrestar esta práctica? 
• ¿Cuáles son los contenidos fundamentales de  la Orden sobre blanqueo de dinero? 
  
JAPAN
 
 
The Government Report (WT/TPR/G/196)  V. TRADE POLICY FRAMEWORK 
 
(2) SERVICES  
(Question 1: page 8, paragraph 23) 
(Secretariat Report: page 50, paragraph 50) 
  Could Brunei explain the reason why Brunei Darussalam has not made liberalization 
commitments in the construction sector?  (Question 2: page 8, paragraph 23)  
(1) In such sectors as (v) Financial (Insurance and Insurance related services) and (vi) Other 
Financial Services, please provide specific cases where Brunei Darussalam has made commitments in 
its EPAs/FTAs which is more liberal than its offer made by Brunei under the DDA services negotiations. 
 
(2) If it is the case, please explain these commitments precisely. 
 
The Secretariat Report (WT/TPR/S/196) 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
 (2) M
EASURES DIRECTLY AFFECTING IMPORTS  
 
(i) Customs procedures   WT/TPR/M/196/Add.1 
 Page 27 
 
 
  (Question 3: page 34, paragraph 9-10) 
 
 Japanese companies operating in Brunei Da russalam have reported to the Japanese 
Government that as Brunei Darussalam does not have  any bonded areas, companies will be required 
to pay additional fees per night unless concerne d companies do not pick up their imported goods 
within three days after notification of arrival at ports.    
 
(1) In light of facilitation of customs procedur es, please indicate whether the Government of 
Brunei Darussalam plans to establis h bonded areas and bonded warehouses. 
  According to the Secretariat report, the Government of Brunei Darussalam promotes the e-
government initiative aiming to provide an infrast ructure using IT as a platform for paperless 
transactions.   
(2) Please indicate its expectations to introduce an electric system into Customs procedures in 
Brunei.  (iii) Applied tariffs   (Question 4: page 38, paragraph 21) 
 
 Japan understands that new legisla tions became effective on January 1
st 2008, in order to 
eliminate the customs tariffs of automotive products , tobacco and alcohol beverages, while at the 
same time, imposing commodity taxes at the same ra te as the customs tariffs to these goods. Japan is 
of the view that automotive products are one of  the major import goods and regulations introduced 
which are mentioned above may have a significant im pact on the trade policy of Brunei Darussalam.  
  In light of transparency, please provide detaile d information on this regulation, as well as an 
explanation of the criteria and background of this regulation.  
 
(4) M
EASURES AFFECTING PRODUCTION AND TRADE  
 
(i) Legal framework for business  
(Question 5: page 54, paragraph 71, 73) 
 
 According to the Secretariat report, at least ha lf the directors of a company incorporated in 
Brunei must be either nationals of Brunei or ordi narily resident in Brunei under the Companies Act 
(Cap 39).  
(1) Does the Government of Brunei thin k this regulation is still necessary? 
 (2) Please explain the rationale of this regulation. 
 
(vii) Intellectual property rights 
 
(Question 6: page 64-65, paragraph 118) 
  Japanese companies operating in Brunei have re ported to the Japanese Government that they 
are suffering from an extremely large number of pirated goods in such products as maintenance 
equipment. According to the secretariat report, th e Government of Brunei Darussalam makes efforts 
to strengthen enforcement for protecting intellectual property rights. 
 WT/TPR/M/196/Add.1 
Page 28  
 
   Please explain specific measures taken by th e Government of Brunei Darussalam against 
pirated goods.  
 
INDIA
 
 
1. The Para 17 of the Brunei’s Report states th at in 2006, its economy improved, as it grew by 
5.1% compared to 2.7% in 2001.  GDP growth was largely due to positive developments in the 
hydrocarbon, financial and private services sectors.  The growth rate for the next five years is 
expected to be within the range of 2 to 4%.  We  request Brunei to share detailed composition of  the 
GDP growth and %age  contribut ion of each sector to the GDP. 
2. According to Para 38 of Brunei’s report, Semaun Holdings has a policy to divest of a 
company once the company is profitable and the G overnment has recovered its initial investment. 
Since commencing operations, Semaun Holdings has st eadily been building up its portfolio of joint 
ventures and linked companies.  However to date it has not divested any companies due to the failure 
of these companies to meet the cr iteria for divestment. Further, Para 14. of the Secretariat report 
mentions that relatively limited information is available on Semaun's contribution to GDP or its 
annual accounts, underlining a certain lack of tran sparency and public accountability in government 
policies. We request the delegation of Brunei to provi de detailed information on if the investments of 
Semaun Holdings have not been profitable to divest , then what specific step  with precise timelines the 
government proposes to take to make them profitable?  
3. Para 51 of Brunei’s report acknowledges that  ready made garments constitute the third 
biggest export after crude oil a nd liquefied natural gas. Recently, the textiles and clothing sector 
industry has seen a decline. The number of companies in operation in this industry has fallen from 25 
companies to merely 11. We would appreciate Brune i sharing with us its plans to strengthen this 
industry to compete on a global scale.  
 
4. Para 1 of Secretariat reports that Brunei owes its prosperity mainly to its abundant petroleum 
(oil and natural gas) resources, whose share of GDP grew from 53% in 2002 to 69% in 2006, and 
whose share of exports rose from 88% to 96% duri ng the same period.  Nonetheless, between 2002 
and 2006, the economy grew at a rather modest annual average real rate of 2.5%, which is insufficient 
to generate enough jobs for Brunei' s growing labour force.  As a result, official estimates put 
unemployment at some 4% in 2006, a cause for concern among Bruneians. What are the steps that the 
government is planning to take to address the i ssues in a comprehensive manner to reduce dependence 
on oil, diversify its economy, enhance its HRD skills  to provide jobs to the growing population? 
 5. The Secretariat report also in Para 3 mentions  that Corporate taxes and royalties paid by oil 
and natural gas companies now account for some 94%  of all government revenue, up from 86% at the 
start of the review period in 2002. We would appreci ate if Brunei could kindly clarify as to nature of 
the increase; to what extent was it due to the rise in oil revenue taxes and decline, if any, in non-oil 
related revenue taxes?   6. Para 5 of Secretariat reports that Brunei's ins titutional framework is characterized by a lack of 
transparency with respect to trade and trade-re lated policies, to the detriment of government 
accountability. We would appreciate if Brunei could please provide rationale for non-transparency 
and if it proposes to impart greater transparency and by when?  7. Para 8 of the Secretariat report informs that in seeking to promote private sector development 
in non-oil and gas industries, Brunei overhauled its investment laws, and established the Brunei 
Economic Development Board (BEDB) in 2001 to prom ote Brunei as an investme nt destination. Has  WT/TPR/M/196/Add.1 
 Page 29 
 
 
  any evaluation of the work carried out since est ablishment of BEDB been conducted for an overall 
assessment of its performance  and if so the resu lts and steps taken to make it more effective? 
 8. Foreign investment, including up to 100% foreign equity in vestment, is permitted in all 
sectors except those involving local natural resources (notably agriculture and fisheries) and those 
relating to national food security, for which minimum local participation of 30% is required.  Does 
Brunei envisages liberalising these sectors to attract FDI and with what timelines? 
9. Para 3 of the Secretariat report states that Brunei has bound nearly 93% of its tariff lines at the 
WTO;  while the average applied tariff rate is lo w, the average bound rate is 25.8%, leaving a large 
gap between the applied and bound MFN rates.  Wh at steps does Brunei proposes to take to bridge 
this gap to bring about certainty fo r traders and other economic agents. 
 
10. Para 13 of Secretariat reports that Brune i is not a signatory to the WTO Government 
Procurement Agreement.  Further Para 56 mentions  that Brunei the Bruneian authorities state that 
further study is needed before the Government can make a decision.  There is no specific legislation 
pertaining to competition policy. We would appreciate if Brunei could indicate as to by when the study would be initiated and comp leted and does Brunei plans to join the GPA as an observer. We 
would appreciate detail of plans of Brunei on introducing a Competition policy. 
 11. Para 4 of the Secretariat reports that through successive development plans,  the Government 
has sought to diversify Brunei's economy and create sustainable employment in the non-oil private 
sector and Brunei's economy has become even more heavily dependent on the oil and gas sector. We 
would appreciate to be informed of the cons traints faced by Brunei in meeting its planned 
development goals?   
 12. Para 20 of the Secretariat report comment s that the small domestic market, a poorly 
developed local private sector, high wage costs, a shortage of skilled la bour, slow bureaucratic 
procedures and a lack of transparency, and the ban on foreigners owni ng land have all deterred 
foreign capital and technology from non-oil and gas indus tries in Brunei.  What are the Brunei’s plans 
to address each of the foregoing issues to seek a balanced and sustainable economic and social 
growth?   13. Further, Para 42 of the Secretariat report states that a key, internal, long-term risk continues to 
be the slow pace of the Government's diversifica tion programme.  Implementa tion of the privatization 
plan, which has been ongoing for a decade or more, a ppears to have been slowed by concern about the 
effect of privatization on government revenue a nd prices.  How does government propose to resolve 
this situation?  14. Currently, Halal meat and poultry can be im ported only from Malaysia and Australia.  Brunei 
imports live cattle from its state-owne d cattle farm located in Northern Australia for slaughter at local 
abattoirs ( Para 46 of Secretariat report refers).  We would appreciate if Br unei could kindly explain 
the rationale of this restrictive import sourcing po licy and by when it proposes to open it to other  
interested exporting members?  
15. On Page 68 the Secretariat reports that Farming has become a part-time business for most 
rural families, owing to the availability of more lucrative forms of employment. However, in the 
subsequent section it reports that the Government  policy is to reduce Brunei's dependence on food 
imports and to attain greater self-sufficiency in ag riculture.  We would be pleased to be informed of 
steps the Government proposes to take to make the farming lucrative employment and in seeking self-sufficiency in this sector.  
 WT/TPR/M/196/Add.1 
Page 30  
 
  ADDITIONAL QUESTIONS BY INDIA 
 
1. According to Paragraph 11 of the Report by Brunei Darussalam it is a member of the Brunei 
Indonesia Malaysia Philippines – East Asian Growth Area (BIMP-EAGA), which seeks to progress economic growth and developmen t in the ASEAN sub region.  BIMP-EAGA was formed in 1994, 
and aims to increase economic cooperation, trade,  investment and tourism among participating 
economies in the sub-region.   BIMP-EAGA currently has four priority areas of cooperation:  transport, infrastructure and ICT developmen t; natural resource development; joint tourism 
development and SME development.  The designated lead country in the transport area is Brunei, 
which oversees a number of working groups dealing w ith air linkages; sea linkages; construction and 
construction materials and ICT.  BIMP-EAGA is al so pioneering environmental initiatives to address 
global concerns on climate change with the Hear t of Borneo and Coral Triangle initiatives.  The 
trilateral of BIMP-EAGA countries involved with  the Heart of Borneo initiative have made 
arrangements to ensure that the designated areas are protected. Could the Govt. of Brunei kindly enumerate the steps taken by it in the field of transport and climate 
change? 
 2. Paragraph 16 of the Report by Brunei says th at the Government continues to place great 
importance on economic diversification and enc ourages foreign investment into the country. 
Could the Government of Brunei mention its appr oach towards fulfilling the above-stated objective? 
 
3. As per the Table given in Paragraph 19 of the Report by the Government of Brunei, the 
ad valorem  rates for 2,181 tariff lines are 20%. 
Could the Government of Brunei mention an y measures taken to further reduce them? 
 4. According to Paragraph 24 of the Report by Brunei Darussalam, it does not maintain any 
WTO inconsistent trade-related investment measures.  A local equity requirement of not less than 30% 
applies to joint ventures in agriculture, fisheries and food processing, only if government facilities such as government-developed industrial sites are applied for. 
 Could the Government of Brunei explain the lo cal equity requirement of not less than 30%? 
 5. Paragraph 27 of the Report by Brunei Darussalam says that the Brunei Economic 
Development Board (BEDB) Act was revised in 2003 and is now called the Brunei Economic 
Development Board Act (Chapter 104). The Act stre ngthens the BEDB's powers for the promotion of 
foreign direct investment, development of joint ventures in strategic sectors and the provision of 
efficient services to investors.  The Act was furt her amended with the Br unei Economic Development 
Board Act (Amendment) Order 2003, which includes a new provision on auditing and BEDB is now a 
corporate body with perpetual succession and a comm on seal of power, subject to the provisions of 
the Brunei Economic Development Board Act, to acqui re and dispose of property, both moveable and 
immoveable, may sue and be sued in its corporate name and perform such other acts as corporate 
bodies may by law perform. 
 Could the Government of Brunei state the new provision with respect to auditing? 6. According to Paragraph 30 of the Report by  Brunei, the Registries Division administers the 
following Intellectual Property Rights litigation:  Trade Marks Act (Cap 98), Trade Marks Rules, 
2000, Inventions Act (Cap 72), Copyright Order 1999, Industrial Designs Order 1999, Industrial 
Designs Rules 2000 and Layout Designs Order 1999. 
 Could the Government of Brunei throw some light on the provisions relating to Geographical 
Indications (GI’s) and Compulsory Licensing?  WT/TPR/M/196/Add.1 
 Page 31 
 
 
  7. Paragraph 35 of the Report by Brunei Da russalam says that the National Standards and 
Accreditation Centre (NSAC) was formed in 2006 as a division under the Ministry of Industry and Primary Resources.  It has the task of assisting companies producing local products to comply with international standards in order to be able to penetrate the export market.  The services currently 
provided by NSAC include assistance in obtaini ng international certification (e.g. HACCP, GMP); 
standard and quality produ ct training; quality and promotion development; and consultation services. 
The establishment of a Calibration Laboratory, which will be traceable to the International System of 
Units as maintained by the Bureau  International des Poids et M easures (International Bureau of 
Weights and Measures) is currently in progress a nd NSAC is also proposing to establish a National 
Metrology Laboratory under the 9
th National Development Plan. NSAC is working together with 
various other ministries in moving towards centralising standards in Brunei Darussalam. 
Could the Government of Brunei throw some light  on the progress made so far in centralizing 
standards in its country?  8. Paragraph 36 of the Report by Brunei Darussalam  states that National standards are currently 
available in the construction and halal food sector.  It is the policy of Technical Committees for the 
development of standards to adopt international st andards where relevant and there is an ongoing 
exercise to review the alignment of national standard s with existing relevant international standards in 
line with ISO/IEC Guide 21:1999.  Brunei Darussal am is also a member of the following 
organisations responsible for the international standards for various sectors:  International 
Organisation for Standards (ISO), International Electrotechnical Commission (IEC), International 
Telecommunication Union (ITU) and C odex Alimentarius (food standards). 
 Could the Government of Brunei state whether it is a member of International Office of 
Epizootics (animal safety) and the various orga nizations and processes that operate under the 
International Plant Protection Convention (plant safety)? 
 Further, which are the notifying authority and the enquiry point for standards? 
9. According to Paragraph 49 of the Report by  the Government of Brunei, the Forestry 
Department under the Ministry of Industry and Primary Resources, aims to support the national 
economic diversification policy through the development of the forestry sector and the creation and facilitation of viable business opportunities while preserving biological forest resources for the well-being of the nation in accordance with internationa l and sustainable forest management obligations. 
Under the National Forestry Policy, not less than 55%  of the total land area of Brunei Darussalam will 
be demarcated and set aside to c onstitute the National Forest Estate. 
 Could the Government of Brunei explain the viable business opportunities it is planning in the 
forestry sector? 
10. Paragraph 50 of the Report by Brunei says that in February 2007 together with the 
Governments of Indonesia and Malaysia, Brunei Darussalam signed up to the Heart of Borneo 
Initiative, which is a voluntary trans-boundary c ooperation initiative to ensure the effective 
management of forest resources and conservation of  a network of protected areas, productive forests 
and other sustainable land uses for the benefit of pr esent and future generations.  It is hoped that 
opportunities based on non-timber forest product i ndustries such as bio product industries (e.g. 
pharmaceutical, herbal and cosmetic industries) c ould be opened up.  Eco and nature tourism is 
another potential sector to be further developed b ased on Brunei Darussalam's wealth of forest bio-
diversity.  
 Could the Government of Brunei shed some li ght on the opportunities to be generated in the 
fields of non-timber forest product industries, eco and nature tourism? WT/TPR/M/196/Add.1 
Page 32  
 
  11. Paragraph 56 of the Report by Brunei states  the formation of a national money-laundering 
committee to help prevent money-laundering and financial crime activities.  
 Could the Government of Brunei exp licate the success of this initiative? 
12. Paragraph 59 of the Report by Brunei says that  prior to 2005, the only mobile service provider 
available in Brunei Darussalam was DST Comm unications Sdn Bhd (DSTCom).  DSTCom was 
established in April 1995 as part of a Govern ment drive to privatize key segments of the 
telecommunication services sector.  In 2005, a sec ond mobile service provider was awarded a license, 
with the aim of increasing competition in the mobile  segment and thus, stimulating the market for 
mobile services. B-Mobile Communications Sdn. Bhd. (B-Mobile) is a joint venture company between TelBru and QAF Comserve.  DSTCom delivers its services on a GSM platform, while B-
Mobile delivers its services over a 3G (W-CDMA) platform. 
 Could the Government of Brunei give details of policy regarding Foreign Direct Investment 
(FDI) in the Telecommunications sector? Moreover, what are the limitations as well as FDI cap with respect to this sector?  
13. According to paragraph 61 of the Report by  Brunei, the development of ICT in Brunei 
Darussalam falls under the purview of the Ministry  of Communications.  Specific to ICT Sector, the 
key objective of the Ministry of Communications  is to uphold the vision of Brunei Darussalam on 
Information Society, which is to create a people-cen tered, intelligent, socially-responsible, inclusive 
and development-oriented Information Society wher e everyone can create, access, utilize and share 
information and knowledge.  
 What is the position regarding Foreign Direct Investment (FDI) in the ICT sector? 
14. Paragraph 65 of the Report by Brunei Darussal am says that it maintains a liberal air services 
policy. In order to attract more foreign airlines to  operate into Brunei, a reciprocal open skies air 
services policy has been adopted.  As part of this  effort, Brunei Darussalam has bilateral open skies 
agreements with New Zealand, Singapore, the United States and United Arab Emirates.  The agreements allow designated airlines to provide ai r services between the two countries with the rights 
to pick up passengers at intermediate stops or at  points beyond the two countries with no limitation on 
frequency, capacity and aircraft type 
 Could the Government enumerate its polic y regarding cargo flights as well as chopper 
services? 
15. According to Paragraph 77 of th e Report by Brunei, the Government is also still interested in 
attracting investment to develop the oil and gas sector s, albeit in the downstream industries, and in the 
manufacturing industry in sites such as the Sungai Liang and Pulau Muara Besar.  Both of these 
undertakings are considered to require foreign invest ors and expertise, and thus attract FDIs into the 
country. 
 Are there any plans of opening the upstream sector for Foreign Direct Investment (FDI)? 
What steps have been taken to attract investments in the manufacturing sector? 
REPORT BY THE SECRETARIAT 
16. Paragraph 4 of the Report By The Secretariat under Summary Observations says that a 
number of changes and revisions, partly relating to WTO provisions, have been made to national laws 
with respect to intellectual property rights, cu stoms and excise as well as to recent regional and 
bilateral agreements and investment, incl uding foreign direct investment.     WT/TPR/M/196/Add.1 
 Page 33 
 
 
   Could the Government of Brunei kindly menti on the changes and revisions made to national 
laws in order to bring it in conformity with th e WTO provisions and the various regional and bilateral 
agreements etc.? 
17. Paragraph 7 of the Report By The Secretariat under Summary Observations says that in 2007, 
Brunei and Japan signed the Brunei- Japan Economic Partnership Agreem ent to facilitate the free flow 
of goods, services, and investments as well as enhance cooperation in energy, human resource 
development and science and technology. 
 Could the Government of Brunei throw some light on its EPA with Japan? 
18. According to paragraph 10 of the Report By The Secretariat under Summary Observations, 
almost 99% of tariffs are subject to ad valorem  rates, while 131 carry specific rates of duty, which 
apply mainly to matches, cigarettes, coffee, tea, a nd 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 calculation of  the average applied MFN tariff rate would raise 
Brunei's overall level of tariff protection.  Brunei h as bound nearly 93% of its tariff lines at the WTO;  
while the average applied tariff rate is low, th e average bound rate is 25.8%, leaving a large gap 
between the applied and bound MFN rates.  This gap can bring about uncertainty for traders and other 
economic agents as it provides scope for the authorities to raise applied tariffs within the higher rates. 
However, Brunei has not made use of this  scope during the period under review.   
 Could the Government give a more detailed lis t of the items which carry specific rates of 
duty?  
 Moreover, the tendency of these ra tes to conceal relatively high ad valorem  equivalents is a 
matter of grave concern with respect to market access. Please elucidate. 
19. Paragraph 12 of the Report By The Secretariat under Summary Observations says that 
although Brunei's tariff barriers are relatively low,  a number of import prohib itions, restrictions, and 
licensing requirements on various products for hea lth, security, and moral reasons have remained 
generally unchanged during the review period.  In addition, a few products (e.g. rice, sugar) are still 
subject to export restrictions, mainly to attain secu rity of domestic supplies.  Currently, there are no 
mandatory standards (technical regulations) in Br unei, only 42 voluntary standards that relate to 
construction and one in the food sector.  There is no national body for setting standards in Brunei;  the 
Construction Planning and Research Unit, based in th e Ministry of Development, is the coordinator 
for standards and conformity assessment activities 
 Kindly explain? 20. According to Paragraph 13 of the Report By  The Secretariat under Summary Observations, as 
the Government is the largest operator in the economy, its policies on procurement and competition 
also have an impact on trade.  Government procurement remains an important instrument of economic 
policy, and government construction activities, in particular, play a major part not only in the 
construction industry, but in the economy as a w hole.  Brunei is not a signatory to the WTO 
Government Procurement Agreement.  There is no specific legislation pertaining to competition 
policy, although Brunei is exploring the possibility of introducing such legislation in line with APEC 
principles; also, steps have been taken to  increase competition through deregulation and 
corporatization in certain sectors, such as te lecommunications.  Brunei does not have its own 
tradeable stock exchange, and as such there is no specialized corporate governance code or takeover 
code. WT/TPR/M/196/Add.1 
Page 34  
 
   Would the Government explain its laws, re gulation and policies regarding Government 
Procurement, Corporate Govern ance Code and takeover Code. 
21. Paragraph 15 of the Report By The Secretariat under Summary Observations says that Brunei 
has strengthened its legal framework for the protec tion of intellectual property rights (IPRs) and is 
considering accession to the WIPO Copyright Treaty and the WIPO Performances and Phonograms 
Treaty, which address copyrighted works in a dig ital environment.  However, it still needs to 
implement its Patent Order (that dates fro m 1999) to provide patent protection for, inter alia,  
pharmaceutical and agricultural products and processes.   Brunei does not have a strong track record in 
IPR enforcement, partly due to a lack of ins titutional capacity, and could therefore benefit from 
targeted technical assistance in this area. 
 Could the Government of Brunei explain the curre nt status with respect to the Patent Order 
and IPR enforcement? 
22. As per Paragraph 16 of the Report By Th e Secretariat under Summary Observations, through 
successive development plans, the Government h as sought to diversify Brunei's economy and create 
sustainable employment in the non-oil private sector.  The 8th Plan emphasized the need to move the economy away from oil and gas as the primary sour ce of economic activity (and revenue) through the 
expansion of agriculture and industry and the development of certain services  with the potential to 
achieve growth, namely:  business services;  financia l services;  hospitality and tourism;  and transport 
and logistics.  However, Brunei's economy has beco me even more heavily dependent on the oil and 
gas sector.  The non-oil and gas manufacturing sector remains weak and underdeveloped and has 
shrunk from 3% to 1% of GDP since 2002, indicating that Brunei's diversification policy has met with 
little overall success. 
 Could the Government of Brunei kindly st ate the reasons behind the failure of its 
diversification policy? 
23. Paragraph 17 of the Report By The Secret ariat under Summary Observations says that in 
several key sectors of the economy, such as oil an d gas, telecommunications, transport and energy 
generation and distribution, there continues to be a strong government presence, often in the form of 
state-owned monopolies, which can act unencumbered by any competition law.  The resulting lack of 
competition may have adversely affected prices and the cost of doing business in Brunei, although 
relevant data were not available.  The very sma ll size of the domestic market discourages local and 
foreign participation in the economy and hampers th e ability of non-oil and gas industries to achieve 
economies of scale, and thus to compete against imports as well as in export markets.  The only other major source of export revenue has been the ga rment industry, which was established to take 
advantage of the international quota system under the ATC (Agreement on Textiles and Clothing), but 
following the ATC's expiry at the beginning of January 2005, exports have seriously declined. 
 Could the Government of Brunei comment on the presence of state-owned monopolies? 
24. Paragraph 27 of the Report by the Secretaria t under Summary Observations states that there is 
a lack of transparency in government policies an d the manner in which they are administered.  
Foreign investment policies, while encouraging invest ment in all sectors, are unclear about limits on 
foreign equity holdings and the sector s in which investment is restricted, thereby providing scope for 
discretion in government decision-making.  As the IMF has pointed out, the financial and statistical 
database in Brunei is considered weak with regard  to coverage, quality, time liness, and frequency.  
Lack of reliable and timely data on, inter alia,  investment income, balance of payments, monetary 
statistics, the labour market, and the national acc ounts, as well as scant or non-existent information 
about the progress made under the latest national de velopment plan, highlight the general lack of 
transparency, and thus public accountability, in the management of the economy.  WT/TPR/M/196/Add.1 
 Page 35 
 
 
   Could the Government of Brunei please elucidate on the above-mentioned points? 
25. According to Paragraph 9 of the Report By The Secretariat under Economic Environment, 
despite encouragement and a recent freeze in government salaries, it h as been difficult for the private 
sector to compete for labour.  The Government re mains the most attractive employer in Brunei; the 
annual salary is supplemented by vari ous allowances and benefits includi ng rent subsidy, low interest 
housing and car loans, and an allowance for the haj pilgrimage.  This is the case in particular for small 
and medium-sized enterprises (SMEs), which are enc ouraged by the Government through various tax 
and non-tax incentives.   Could the Government of Brunei explain as to why is the private sector not able to attract 
employment? 
 26. Paragraph 27 of the Report By The Secretar iat under the heading Economic Environment says 
that the overall balance of payments has reco rded only small surpluses, of US$24 million to 46 
million since 2002;  and a deficit of US$11 million was r ecorded in 2005, owing, it appears, to huge 
unexplained negative items in the errors and omissions category. 
  Could the Government of Brunei explain its  position on the overall balance of payments? 
 27. As stated in Paragraph 36 of the Report by  the Secretariat under Economic Environment, the 
Balance-of-payments data indicate that the net servi ces deficit has been substantial since 2001, when 
it was US$580 million and declining to US$466 million in 2006.   
  Could the Government of Brunei indicate the reasons behind it?  28. As mentioned in Paragraph 12 of the Report By The Secretariat under Part II relating to Trade 
Policy Regime: Framework And Objectives, the authoriti es maintain that the structure of the judiciary 
has remained unchanged since 2002 and has no substan tial effect on trade-related and other economic 
policy formulation.  No trade dispute has ever b een brought to the domestic courts.  The State of 
Brunei Darussalam cannot be broug ht before domestic courts on cases relating to WTO Agreements.  
  Could the Government of Brunei the reasons behind not changing the structure of the 
Judiciary since 2002 which as it is mentioned in the report has no substantial effect on trade-related 
and other economic policy formulation? Further, is  the Government taking any steps so that trade-
related disputes can be enforced in the municipal courts? 
29. As mentioned in Paragraph 22 of the Repor t By The Secretariat under Part III relating to 
Trade Policies And Practices By Measure, although th e overall average applied MFN tariff is low, 
escalation is particularly pronounced in wood and fu rniture, fabricated metal products and machinery 
and chemicals, providing relatively higher effective pr otection to these industries.  In the case of wood 
and furniture, the tariff on unprocessed and semi-process ed products is considerably higher than for 
finished products; this de-escalation provides high er protection for producers of raw material and 
semi-processed goods in Brunei.  
 Could the Government of Brunei explain the existence of pronounced tariff escalation and the 
presence of inverted tariffs with respect to certain commodities? 
30. As stated in Paragraph 32 of the Report By  The Secretariat under Part III relating to Trade 
Policies And Practices By Measure, Brunei continu es to maintain non-tariff measures (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 internat ional agreements.  In WT/TPR/M/196/Add.1 
Page 36  
 
  general, the NTMs are in the form of prohibitions, restrictions, and licensing, and they do not appear 
to have declined significantly since 2001.    
 Could the Government state the reasons behind its inability to reduce/eliminate the Non-
Tariff Barriers (NTB’s) since 2001? 
31. As stated in Paragraph 82 of the Report By  The Secretariat under Part III relating to Trade 
Policies And Practices By Measure, subsidies appear to be provided for ag ricultural inputs and for 
water, energy, and telecommunications services. 
 Could the Government of Brunei enlist the kinds  of subsidies given in the above-mentioned 
sectors? 
32. Paragraph 83 of the Report By The Secretar iat under Part III relating to Trade Policies And 
Practices By Measure, it is stated that under the Pri ce Control Act (chapter 142), administered by the 
Economic Planning and Development De partment in the Prime Minister 's Office, maximum prices for 
selected goods may be fixed by the Price Controlle r, for consumer protection purposes.  The goods 
are within the category of basic necessities:  motor vehicles, infant milk powder, and cigarettes.  The 
Act covers several aspects of market activity, such  as control of movement, export/import of specified 
goods, refusal to sell goods, prohibition against selli ng greater quantities of a controlled article than 
required for "ordinary use", hoarding,  and display of prices on goods.  
 Does the Government of Brunei have any plan to make the law relating to Price Control more 
flexible? 
33. As per Paragraph 5 of the Report By The Secr etariat under Part IV relating to Trade Policies 
By Sector, the private sector remains highly dependent on immigrant labour, primarily from the 
ASEAN countries, but also from India, Bangladesh,  and Pakistan.  According to the Government, 
there were 74,046 foreign workers (temporary residents) in the private sector in Brunei in 2005 (although this figure did not cover maids, drivers,  and private gardeners, who are thought to number 
around 22,000).  In 2004, foreign workers accounted for over 80% of the workforce in manufacturing 
and construction, and between 60% and 70% in pe rsonal services, retailing, hotels and restaurants, 
and agriculture. 
 Could the Government of Brunei through so me light on its heavy dependence on immigrant 
labour and also the facilities provided to them? 
34. Paragraph 15 of the Report By The Secretaria t under Part IV relating to Trade Policies By 
Sector, says that although there are few tariff restrict ions, some agricultural products, i.e. rice, sugar, 
and salt, are subject to import restrictions. 
 Could the Government of Brunei state the ki nd of import restrictions applied to the 
agricultural products mentioned above?    WT/TPR/M/196/Add.1 
 Page 37 
 
 
  CHINESE TAIPEI  
 REPORT BY BRUNEI DARUSSALAM (WT/TPR/G/196)  V. TRADE POLICY FRAMEWORK 
(3) I
NVESTMENT  
 
(Page 9, paragraph 27)  
As indicated in the Report, the 2003 revised  and amended Brunei Economic Development 
Board (BEDB) Act strengthens the BEDB's powers fo r the promotion of foreign direct investment, 
development of joint ventures in strategic sectors an d the provision of efficient services to investors. 
Subject to the provisions of the Act, the BEDB is now also a corporate body with perpetual succession 
and a common seal of power.  
 
Please could Brunei elaborate further on the status of the BEDB:  
 
(i) Is it an agency of the Brunei government? 
 
(ii) What is the nature and validity of BEDB’ s re lated measures, including agreements entered 
into with foreign investors? Should these be vi ewed as measures of the Brunei government? 
 
(4) I
NTELLECTUAL PROPERTY RIGHTS  
 (Page 10, paragraph 31)  
 
The Report states that Brunei’s enforcement of  intellectual property rights is based on 
complaints lodged by the registered owner.  
 
Since Brunei has acceded to the Berne Conven tion for the Protection of Literary and Artistic 
Works, which asks for no formal conditions to  possess a copyright, does the above imply that 
copyright holders are excluded from any remedy for infringements if they are not on the Brunei 
government’ s registry?  
 
(6) G
OVERNMENT LINKED COMPANIES  
 (Page 11, paragraph 37)  
  We note that Semaun Holdings was established as a domestic investment and trading arm of 
the government, and has been placed under the jurisdiction of the Ministry of Industry and Primary 
Resources. Its mission appears to be to develop Brunei’s strategic industries. 
 
(i) We understand that there is a successful joint venture in aquaculture between Semaun 
Holdings and one of our investors. Could we please have information  about other successful 
joint ventures with foreign investors? 
 
(ii) We are also interested in learning about Sem aun Holdings’ key investment plans,  both short- 
and long-term.  
 
(iii) Please could Brunei also inform us of the lim its on foreign equity holdings in such joint 
ventures? 
 WT/TPR/M/196/Add.1 
Page 38  
 
  V. SECTORAL POLICIES AND DEVELOPMENT  
(7) T
ELECOMMUNICATIONS  
 
(Page 15, paragraph 59)  
 As indicated in the Report, DST Communica tions Sdn Bhd (DSTCom), was established in 
1995 using the GSM platform, and B-Mobile Comm unications Sdn. Bhd (B-Mobile) was established 
in 2005 using the 3G (W-CDMA) platform. These two companies are the only providers using the 
GSM or W-CDMA platforms. (the  GSM platform is  mainly used for voice services; 3G is mainly for 
mobile data services)  
(i) Will the Authority for Info-Communication T echnology Industry (AITI)be issuing more new 
licences for GSM and 3G respectively to bring in more competition? 
 (ii) Is there any plan for issuing Wireless Broadband Access services (e.g. WiMAX)? If so, will 
the WBA licence be available to foreign investors? 
 REPORT BY THE WTO SECRETARIAT (WT/TPR/S/196)
 
 
I. ECONOMIC ENVIRONMENT 
(2) R ECENT ECONOMIC DEVELOPMENTS  
(iv) Structural policies: diversification of the economy 
 
(Page 11, paragraph 29) 
 
 Despite Brunei being blessed with considerable  natural oil and gas r esources, the government, 
being prudent and long-sighted, has launched sever al initiatives to place the economy on a path to 
sustainable growth. 
 
 In order to persuade our manufacturers to cons ider Brunei as an ideal place to invest for the 
purposes of expanding the sale of their products to  the Middle East market, could Brunei’s please 
provide details of incentives offered to foreign investo rs, e.g. in the acquisition of land, and in relation 
to labour policies and financial incentives. 
 
(Page 11, paragraph 31) 
 
 We note from the Report that, despite some privatization in several key sectors of the 
economy, for example oil and gas, there continu es to be a strong government presence in the 
economy.  The government is the largest employer in Brunei and has large shareholdings in key oil 
and gas companies.   It would be appreciated if Brunei could please explain how the government lessens or deals with situations in the oil and gas sector where co mpetition may be hindered by the presence of state-
owned monopolies?  
(5) 
OUTLOOK  
 (Page 17, paragraph 43) 
  We also find it difficult to obtain timely trade and economic data from Brunei, though 
updated statistical data plays an important role  in the investors’ decision-making process.  
  WT/TPR/M/196/Add.1 
 Page 39 
 
 
   Does the Brunei government have any plans to improve the efficiency of its provision of 
economic and trade data?  Given today’s global use of the Internet as a primary source of 
information, does Brunei have plans to include more  economic statistical dat a on its official website 
in the future? 
 II. TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES 
(4) F
OREIGN INVESTMENT REGIME  
 (Page 29, paragraph 43) 
 
 As indicated in the Report, foreign investment is open except in restricted sectors in which the 
Government is the major provider of services, such  as the mass media, telecommunications, posts, 
energy and utilities. 
 
(i) The Brunei government has opened many industries to foreign investment, but not the 
telecommunications industry.  In line with the trend toward telecoms deregulation, is the 
Brunei government preparing to open this sector to foreign investment? 
 
(ii) Is Brunei able to describe to us at this stage w hat are likely to be the conditions, the timeline, 
and the ceilings to such foreign investment? 
 
(Page 31, Box II.2) 
  
As indicated in Box II.2, “… investors enter into a Cooperation Agreement with the BEDB.  
In signing the agreement, the BEDB helps th e investor in securing incentives, utilities, and 
infrastructure.  The investor commits to agreed quantifiable and qualitative undertakings on a best 
endeavours basis in such areas as employment, transfer  of technology, local participation, promotion 
of local SMEs, spin-offs, and community development.”  
 
 Please could Brunei elaborate further on whether, should BEDB default on the agreement, 
responsibility for non-performance could be attri buted to the Brunei government and the relevant 
dispute resolution process provided by the Brunei government? 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE (2) M
EASURES DIRECTLY AFFECTING IMPORTS  
(vii) Import prohibitions, restrictions, and licensing 
 
(a) Import prohibitions 
 
(Page 44, paragraph 33)  
 
 As indicated in the Report, the Government  of Brunei maintains import prohibitions on a 
limited number of products, including opium, indece nt and obscene printed matter, firecrackers, and 
vaccines from us. 
 
(i) Would Brunei please provide further details of the regulations on the import of vaccines to 
Brunei and the main reasons why it prohibits the import of our vaccines in particular? 
 
(ii) Furthermore, if we fulfil all the requirements on vaccine imports, will the Government of 
Brunei consider removing this ban?  
 WT/TPR/M/196/Add.1 
Page 40  
 
  (3) M
EASURES DIRECTLY AFFECTING EXPORTS  
(ii) Export prohibitions, restrictions, and licensing  
(Page 53, paragraph 64)  
 
 As indicated in the Report, consumer prices for rice and sugar are subject to ceilings, and 
export restrictions appear to be intende d to ensure adequate domestic supply. 
 
(i) We should be grateful for more details on how  the Brunei government sets the price ceilings 
for rice and sugar.  
 
(ii) Will Brunei consider liberalizing the ri ce or sugar market in the future? 
 (4) M
EASURES AFFECTING PRODUCTION AND TRADE  
(v) The public sector and private investment  
(b) Corporatization and privatization  (Page 59, paragraph 95)   
 In April 2006, the Government announced th e corporatization of the Telecommunications 
Department. JTB's functions were split between tw o successor organizations, TelBru, responsible for 
delivering telecom services, and Ai Ti, responsible for regulating the local ICT industry. In addition, 
the government partially privatized certain services,  such as Internet access and mobile telephony in 
2006.  
 
(i) In line with the trend toward telecom deregul ation, is the Brunei government preparing to 
open the telecom sector to foreign investmen, and, if so, what are likely to be the conditions, 
the timeline, and the ceilings to such foreign investment?  
 
(ii) Does the Brunei government have other practical  privatization goals in areas other than 
telecommunication services, and, if so, will there be any limitations placed on foreign investors during the privatization process? 
 
(vii) Intellectual property rights  
(d) Copyright and related rights  (Page 63, paragraph 113)   
As indicated in the Report, Brunei grants copyright to published works for a period of 25 
years from the year of the first publication.  
 
 We would appreciate clarification from Brunei as  to whether this means that “all types” of 
published works are granted copyright for such a term .  If so, we wonder how the term of 25 years 
can be consistent with Article 7 of the Berne C onvention (incorporated into TRIPS) and Article 12 of 
the TRIPS Agreement, both of which provide for seve ral types of works to have copyright protection 
for 50 years from the year of their authorized publication or production?  
  WT/TPR/M/196/Add.1 
 Page 41 
 
 
  IV. TRADE POLICIES BY SECTOR 
(3) O IL AND GAS SECTOR  
(ii) Oil and gas industry 
 
(a) Petroleum refining and other downstream industries. 
 
(Page 75, paragraph 33)  
 
The Report indicates that the government of Br unei is keen to encourage investment in 
upstream and downstream investment activities. 
 
It would be appreciated if Brunei could please elaborate further on the following: 
 
(i) How does the government promote such investment s? Are there any incentives or rewards for 
foreign investors in this sector, and, if so, what are they? 
 
(ii) Please provide us with details of the pr ocedures and contact information regarding 
applications for investment in the oil and gas sector.  
 (iii) Could we please be informed of any plans to modify the application procedure to make it a 
more transparent mechanism, such as the introduction of open tenders for upstream 
exploration? 
 
(Page 75, paragraph 35)  
 
 As indicated in the Report, Petroleum Brune i has chosen to award private companies the 
exploration rights for the blocks it controls.  
 
 Could Brunei please provide us with details  of Petroleum Brunei’s concrete conditions or 
reviewing criteria used in the process of issuing or  approving exploration rights to foreign investors? 
  
BRAZIL
 
 
WT/TPR/G/196 paragraphs 75 and 77 
 
1) According to the Government Report, “the Government continues to place a great emphasis 
on the need for greater participation by the economic sector to contribute towards the diversification of the economy”. It also affirms that “the Governme nt is also still interested in attracting investment 
to develop the oil and gas sectors”. How the developm ent of new policies to attract investments in the 
oil and gas sectors can be reconciled with the G overnment’s plans to diversify Brunei’s economy? 
 WT/TPR/S/196 paragraph 27  
2) The Secretariat Report observes that “the lack of reliable and timely data (…), as well as scant 
or non-existent information about the progress made  under latest national development plan, highlight 
the general lack of transparency, and thus public  accountability, in the management of the economy”. 
What has the Government been doing  to tackle such a lack of transparency and public accountability? 
 WT/TPR/M/196/Add.1 
Page 42  
 
  WT/TPR/S/196 Chapter II (3) (ii)(d) paragraphs 37 and 38 
 
3) The Secretariat Report mentions the Trans-P acific Strategic Economic Partnership Agreement 
(Trans-Pacific SEP), between Brunei, Chile, New Zeal and and Singapore. What is the assessment of 
the country’s authorities on the impact of such an Agreement? 
 
  WT/TPR/M/196/Add.1 
 Page 43 
 
 
  FOLLOW-UP QUESTIONS SECOND DAY OF THE MEETING 
 THE EUROPEAN COMMUNITIES
 
 
WTO Secretariat’s Report, page 8, para. 20 & page 10, para. 28 
 
 Also the Executive Directors IMF Article IV urged Brunei Darussalam that the credibility for 
Government institutions would increase by pub lishing audited accounts.  Does Brunei Darussalam 
share this view, and in this respect, what e fforts are undertaken to increase transparency of 
Government institutions? 
  
WTO Secretariat’s Report, page 11, para. 31  
 
 Could Brunei Darussalam kindly elaborate on the mentioned competition policy and which 
sectors would be included?  What is the reas on for not introducing an overall competition law? 
  
WTO Secretariat’s Report, page xiii, para. 27  
 
 Referring also to answer to question 1 b) from Canada, could Brunei Darussalam please 
explain what the rationale behind not having a clear  and transparent list of sectors in which foreign 
companies can or cannot invest?  In  order to increase predictability for investors, is there any plan to 
introduce such a list? How often are the sectoral po licies related to foreign participation revised? 
  
WTO Secretariat’s Report, page 29, para. 44  
 
 Could Brunei Darussalam please elaborate on how  the concerns of prohibition for foreign 
nationals to own land will be addressed  through the Strata Title Act? 
  
WTO Secretariat’s Report, page 33, para. 2  
 
 Is Brunei Darussalam seeking to lower its  bound tariff rates in order to reduce the 
uncertainties for traders created by diffe rences in bound and applied tariff rates? 
  
WTO Secretariat’s Report, page 35, para. 12 & page 44-46, para. 32-36  
 
 According to Chapter 2.3.13 of the OIE Code, trade with cattle, meat and meat products can 
be undertaken from countries, zones or compartmen ts with negligible, c ontrolled or undetermined 
BSE risk under certain conditions related to e.g. sl aughter procedures and age of the cattle (with the 
exception of goods mentioned in Chapters 2.3.13.13- 14).  Can Brunei Darussalam confirm that the 
applied import conditions follow these guidelines?   
WTO Secretariat’s Report, page 43, para. 30  
  Could Brunei Darussalam please state to which types of goods the criteria for excise apply 
and if they are depicted in a regulation along with the applied excise rates?    
WTO Secretariat's Report, page 49, para. 46 & page 70, para. 16  
  Could Brunei Darussalam please explain if there is any plan to sign mutual recognition 
agreements with organisations respons ible for halal certifications in other countries, such as within the 
EU, in order to avoid lengthy inspection procedur es requiring on-site visits by Bruneian authorities? 
  WT/TPR/M/196/Add.1 
Page 44  
 
  WTO Secretariat’s Report, page 58, para. 91  
 
 According to the report, Semaun Holdings and its subsidiaries "appears to dominate domestic 
manufacturing".  Does Brunei Darussalam share this view?  Does Brunei Darussalam see a risk that private investment is discouraged in sect ors where state-owned enterprises have a strong 
presence? 
  
WTO Secretariat’s Report, page 62, para. 107  
 
 Could Brunei Darussalam please explain wh ether this mindfulness of confidentiality 
requirements implies that it is regulated? 
  
WTO Secretariat’s Report, page 78, para. 49  
 
 What other conditions may be imposed upon aw ard of an operating license for tour operators?  WT/TPR/M/196/Add.1 
 Page 45 
 
 
  REPLIES PROVIDED BY BRUNEI DARUSSALAM 
 
 
CANADA  
 
REPORT BY THE GOVE RNMENT (WT/TPR/G/196) 
  
No questions.  
 
 
REPORT BY THE SECRETARIAT (WT/TPR/S/196) 
 Summary Observations; (5) Outlook; Page xiii, Paragraph 27:  
  
The Secretariat Report notes that "Foreign investment  policies, while encouraging investment in all 
sectors, are unclear about limits on foreign equity holdings and the sectors in which investment is 
restricted".    
1. (a)  What actions will the Government of Br unei take to improve the transparency of the 
foreign investment regime both in the near and long term?   
    (b)  Will the Government of Brunei issue a specific list of restricted sectors for foreign 
investment, including information on any limits on foreign equity holdings?  
 
Answer: 
 
(a) Brunei Darussalam continues to address the i ssue by developing measures and practices, and one 
example is the Government has published the “Br unei Darussalam Long Term Development Plan” 
which outlines the National Vision of the C ountry (Wawasan 2035), the Outlines Strategies and 
Policies for Development, as well as th e National Development Plan 2007 – 2012. 
 Under the National Development Plan 2007-2012, the Government aims to establish a national 
committee to increase transparency and reduce bureau cracy and red tape. In 2007, Brunei joined the 
World Bank survey on the Ease of Doing Business. This  helps to identify areas in which changes need 
to be made.   Actions Brunei Darussalam has taken to improve tr ansparency include the publication of the business 
and investment guide and other related informatio n on business and investment in hardcopy and 
through the electronic media, such as www.mipr .gov.bn and www.bedb.com.bn. All statistics are 
available on the website of the Departm ent of Economic Planning and Development, 
www.depd.gov.bn.  (b) Brunei Darussalam does not have a list. Ho wever, under the ASEAN Investment Area Bold 
Measures Agreement signed in January 1999, Brune i Darussalam allows for 100% foreign equity 
ownership in high-technology manufactu ring and export oriented industries. 
 Other than that, full foreign ownership is not p ermitted in sectors involving local natural resources 
(notably fisheries and agriculture) and those relatin g to national food security where a minimum of 
30% local participation is required. 
 WT/TPR/M/196/Add.1 
Page 46  
 
  I. Economic Environment; (5) Outlook; Page 17, Paragraph 43:   
 
The Secretariat Report notes a “lack of transparency  in government policies and the manner in which 
they are administered”, and a weak financial and statistical database with regards to “coverage, 
quality, timeliness and frequency”.   
 
2. Is anything being done to improve the sy stem in order to have a better and more 
effective way of data collection and timely dissemination of information?  
 
Answer: 
 
The Department of Statistics at the Department  Economic Planning and Development (DEPD) is the 
central agency for national statis tics in Brunei Darussalam.   
 The Department also collects and disseminates data on a quarterly basis. This is to ensure that data 
and information collected are available in a timel y manner.  The Department has also undertaken 
initiatives to upload such national data online on the DEPD website (www.depd.gov.bn
) for 
convenience in dissemination to the public as well as publications of quarterl y reports such as Brunei 
Economic Bulletin (BEB).  To improve the quality of data collection and disse mination, the Department of Statistics plans to 
develop short and long term strategic plans in line with ASEAN Secretariat and UN recommendations 
and to enhance capacity building.  In this regard, Brunei Darussalam would appreci ate any technical assistance offered by WTO 
members. 
 
III. Trade policies and Practices by Measure; (2) Measures directly affecting imports; (iv) Tariff 
bindings; Page 41, Paragraph, 28;   
The Secretariat Report states that “Brunei did not sign the WTO Agreement on Information 
Technology products”.   
 
3. Could Brunei give further details on whether or not there are there any specific reasons for not signing the WTO Agreem ent on Information Technology products? 
 
Answer: 
 
Brunei Darussalam would like to highlight that it has one of the lowest average MFN applied rates amongst developing countries and these lines include products under coverage in the WTO ITA. 
 Our MFN applied rates on these said-products are ext remely low – some of which are accorded duty-
free concessions.  
 
As such, we are already well on the way to meet ing the objectives of the ITA i.e. eventual tariff 
elimination.  On the issue of accession, the merits of this pl urilateral agreement has always been considered, of 
which the eventual decision is dependent on the ne eds and conditions arisi ng from Brunei’s national 
developmental objectives.   WT/TPR/M/196/Add.1 
 Page 47 
 
 
  III. Trade Policies and Practices by Measures; (2 ) Measures Directly Affecting Imports; (viii) 
Standards and sanitary and phyto sanitary measures; Pages 46-50: 
 
Canada notes that Brunei Darussalam has subm itted two WTO SPS notifications, the last one 
in March, 2004.   
 
4. Since then, has Brunei Darussalam cha nged or adopted any new SPS measures that 
affect international trade that were not notified to the WTO?    
 
Answer: 
 
No, measures  comply with International Standard for Phyt osanitary Measures (ISPM) Guidelines and 
OIE standards and procedures.  III. Trade Policies and practices by Measure; (2 ) Measures directly affecting Imports; (ix) 
Government procurement; Page 52, Paragraph 59:  
  
The Secretariat Report states that “[t]ender noti ces are published in the Pelita Brunei at least two 
weeks before the closing date of a tender”.  Cana da notes that government tenders are often open for 
less than a month and this is a challenge for forei gn companies interested in participating given the 
short timeframe for preparing the document and proposal.   
 
5. What is the process and what are th e criteria involved prior to the public 
announcement of a government tender?  
Answer: 
 
Prior to public announcement, the process with in the department concerned will include:  
preparation of a necessary documentations, incl uding draft agreement, tender specifications. 
 Brunei Darussalam would also like to clarify that tender notices do not only appear in Pelita Brunei, 
but are also published in other leading newspapers, as well as some websites.  
 
6. Does Brunei have any plans to streamline the procurement process?       
Answer:  
 
Yes, by introduction of an e-procurement system.  III. Trade Policy by Measure; (4) Measures Affecting Production and Trade; (vii) Intellectual 
property rights; (a) Overview; Page 60, Paragraph 97: 
 
According to the Secretariat Report for Brunei Darussalam, “Brunei has not joined the Paris 
Convention for the Protection of Industrial Property”.   
 
7. Canada would appreciate Brunei’s views on whether it is considering joining this 
Convention. 
 
Answer: 
 
Brunei Darussalam is currently considering the feas ibility of joining the Paris Convention and hopes 
to accede to the Conventio n in the near future. WT/TPR/M/196/Add.1 
Page 48  
 
  III. Trade Policy by Measure; (4) Measures Affecting Production and Trade; (vii) Intellectual 
property rights; (a) Overview; Page 60, Paragraph 98 & (b) Trademarks; Page 61, 
Paragraph 103:  
Canada notes that according to the Secretariat Report for Brunei Darussalam, “[the Criminal Justice 
Division of the Attorney General's Chambers] does not have a public awareness programme as it 
lacks capacity in implementing such a programme ….The IP Section would benefit from appropriate 
technical assistance in this area as public awareness on IP  in the country is considered generally low”.  
The Secretariat further notes that, “[f]oreign [trade mark] applications account for 99% of all applications received”.  
 
8. Canada would be grateful  if Brunei could advise whether it is considering requesting 
technical assistance from WIPO or the WTO to enable it to promote public awareness on IP. 
 
Answer: 
 
Brunei Darussalam would certainly avail itself of th e technical assistance from WIPO and/or WTO in 
raising awareness on IP in the country.  However, as  highlighted in the WTO Secretariat Report, the 
IP Division’s current set-up (only 4 officers deali ng with IP, 2 being full-time trademark examiners) 
somehow makes it challenging for the Division to take up a more pro-active role in promoting IP awareness. 
 
III. Trade Policy by Measure; (4) Measures Affecting Production and Trade; (vii) Intellectual 
property rights; (c) Patents; Page 62, Paragraph 105: 
 
According to the Secretariat Report, “Brunei pr ovides protection for geographical indications under 
the Trade Marks Act (chapter 98)”.    
9. Canada would be grateful if Brunei c ould elaborate on the protection granted to 
geographical indications and, in particular , which types of products can receive such 
protection. 
 
Answer: 
 
The protection of geographical indications (GIs) is subsumed under the Trade Marks Act (Cap 98) 
and is protected as certification marks.  Section 52  of the Act provides a general definition of a 
certification mark as “a mark indicating that the goods  or services in connection with which it is used 
are certified by the proprietor of that mark in respect  of origin, material, mode of manufacture of 
goods or performance of services, quality, accuracy and other characteristics.”   
 
Rule 56(1) of the Trade Marks Rules of 2000 provid es that an application for the registration of a 
certification mark must be filed on Form TM32 together with the prescribed fee.  Within 9 months 
from the filing date, the applicant must file the regulations governing the use of the mark on Form 
TM23 (Rule 56(2)). 
 
III. Trade Policy by Measure; (4) Measures Affecting Production and Trade; (vii) Intellectual property rights; (c) Patents; Page 62, Pa ragraph 107 & (f) Trade Secrets; Page 64, 
Paragraph 117: 
 Canada notes that according to the Secretariat Re port for Brunei Darussalam, “the Patents Order 1999 
was expected to be implemented in 2001 to repl ace the Inventions Act, 1984” but according to the 
authorities, “it has yet to be implemented”.  Similarly, the Secretariat Report states that “[t]he  WT/TPR/M/196/Add.1 
 Page 49 
 
 
  Ministry of Health is in the process of drafting legislation that will regulate the disclosure of 
information on medical products and cosmetics”.    
10. Canada would appreciate if  Brunei could provide an update on when these laws and 
regulations are expected to come into force.   
 Answer:  Brunei Darussalam has just received comments on it s Draft Patent Regulations from WIPO. The IP 
Division is currently taking the necessary steps to  finalise the Regulations with a view to 
implementing both the Draft Patent Order and Regulations in the near future. 
 
III. Trade Policy by Measure; (4) Measures Affecting Production and Trade; (vii) Intellectual 
property rights; (c) Patents; Page 63, Paragraph 111:  
Canada notes that according to the Secretariat Report,  “[t]he exclusive rights to the invention can only 
cease if the Sultan declares in a public statement […] that the exclusive right, or the way in which it is 
exercised, is detrimental to Brunei Darussalam or prejudicial to the public”.   
 
11. Canada would appreciate if Brunei coul d provide details from examples of when 
patent rights have been deemed to  be detrimental in this way. 
 
Answer: 
 
There has not been an occasion where an invention has been declared de trimental to Brunei 
Darussalam or prejudicial to  the public in any way. 
 
III. Trade Policy by Measure; (4) Measures Affecting Production and Trade; (vii) Intellectual 
property rights; (d) Copyright and related rights; Page 63, Paragraph 113:  
 
The Secretariat Report for Brunei Darussalam stat es that, “[the Copyright Order 1999] provides 
copyright protection for the creator's life plus 50 years for works…Copyright for published works is 
granted for 25 years from the year of the first publication.”   
 
12. Canada would appreciate if Brunei could confirm the term of protection granted to 
published and unpublished works. 
  
Answer: 
 Term of Protection for Published Work
 
 
 Typographical arrangement of a published edition exp ires at the end of the period of 25 years 
from the end of the year in which the edition wa s first published: §17 of the Copyright Order. 
 First publication for typographical arrangement of published editions occurs when copies 
were first issued to the public: §178(1)(a) of the Copyright Order 
 
 
Term of Protection for Unpublished Work  
 
 Any copyright in anonymous or pseudonymous literary, dramatic, musical or artistic works, 
other than photographs, continues to subsist if the work has not been published, until the end 
of the period of fifty years form the end of th e year of commencement or, if during that period 
the work was first commencement or, if during t hat period the work was first made available WT/TPR/M/196/Add.1 
Page 50  
 
  to the public within the meaning of subsection (2) of section 14, the date on which the 
copyright expires in accordance therewith: Para 11 (3)(b) of Schedule 1 of the Copyright 
Order. 
 If the work is of unknown authorship, copyright  will expire at the end of the period of fifty 
years from the date on which the work was either  made, first made available to the public or 
first published, whichever date is the latest, provided that where the author’s identity is 
revealed or is no longer in doubt before the expir ation of that period, the provisions of 
subsection (1) of section 14 apply: §14(2) of the Copyright Order. 
 
III. Trade Policy by Measure; (4) Measures Affecting Production and Trade; (vii) Intellectual 
property rights; (g) Enforcement and penalties; Page 65, Paragraph 121:   
According to the Secretariat Report regarding trade mark and copyright cases, “[d]elays are attributed 
due to the unavailability of the complainan t rights holder and necessary documents”.   
 
13. Canada would be grateful if Brunei c ould provide: (a) its views on why complainant 
rights holders are sometimes unavailable; and (b) more information on the necessary 
documents. 
  
Answer: 
 
(a) Complainant right holders are unavailable due to the following reasons: 
 
i. Problems with right holders whose location is geographically far from Brunei. 
ii. Small market which discourages loca l presence of right holders.  
iii. It was observed that even right holders from  neighbouring countries have difficulties in 
attending meetings or court dates that have been set.  
iv. A number of complainants cannot produce orig inal documents to prove their purported 
rights even when given a long period of time. 
 
(b) The necessary documents meant are mainly those which prove that they are the rights holders or 
the exclusive licensees for Brunei and also to s how assignment of such rights where applicable 
 
IV. Trade Policies by Sector; (5) Services; (ii)  Telecommunications; Page 85, Paragraph 71: 
 
The Secretariat notes that there ar e currently three telecommunications infrastructure providers which 
are locally owned and controlled, and, according to  the authorities, there is currently no significant 
foreign participation. 
 
14. Could Brunei Darussalam please clarify th e extent of any foreign participation in 
these providers? 
 
Answer: 
 
The maximum extent of foreign participation allowed is  50%. If foreign providers wish to participate 
in the Brunei market, they may do so by acquiring eq uity in existing providers in the course of normal 
commercial negotiations. 
 
IV. Trade Policies by Sector; (5) Services; (ii)  Telecommunications; Page 86, Paragraph 73:  
 
The Secretariat notes that although the licensing framework published by AiTi mandates a certain level of local loop unbundling (LLU), the lack of de facto LLU and competition in fixed-line 
telephony is one of AiTi's key issues.  WT/TPR/M/196/Add.1 
 Page 51 
 
 
  15. Could Brunei Darussalam provide further in formation on the actions taken by AiTi to 
address these issues? 
 
Answer: 
 
AITI is working with the relevant parties to migrat e licensees to the new InT i/SeTi licenses. Once this 
is complete, applying the rules contained in the Interconnection Handbook and enforcing the rules of 
accounting separation contained in the InTi/SeTi licenses will bring about de facto LLU and competition.  
The Secretariat notes that AiTi issues two types of  licenses, the second of which, SeTi, applies to 
telecommunications resale.  
16. Could Brunei Darussalam provide further information on the number of SeTi licenses 
issued to date, as well as the number of resale providers presently operating in Brunei 
Darussalam? 
 
Answer:  There are no SeTi licenses issued to date. Our current operators a re still operating under their old 
licenses issued by the Ministry of Communications. The new licensing framework is intended to work 
as a tiered system. Service providers who both own in frastructure and operate it are expected to be 
licensed with an InTi license and a SeTi licen se. While service providers who only resell 
telecommunications services are expected to be licensed with a SeTi license only.  We are currently in the process of migrating exi sting licensees to the new InTi/SeTi licenses and 
licensing a number of new SeTi providers – some 50 or so in total. 
 IV. Trade Policy by Sector; (2) Agriculture, For estry, and Fishing; (i) Agriculture; Page 70, 
Paragraph 16:  
  
The Secretariat Report states that the “Imports of all meat and poultry produc ts are subjects to Halal 
requirements and may only be sourced  from government-approved abattoirs”. 
  
17. Could Brunei Darussalam give further de tails on its Halal requirements/certification 
for imports of all meat and poultry products? 
 Answer:   Brunei Darussalam would like to clarify that onl y meat and poultry products aimed for the Halal 
market are subject to the Halal requirements.  These requirements are regulated under the Hala l Meat Act and the Halal Certificate and Halal 
Label Order 2005. Both these legislative instrume nts are available from the Brunei Darussalam 
Printing Office. 
 WT/TPR/M/196/Add.1 
Page 52  
 
  THE EUROPEAN COMMUNITIES
 
 
I. ECONOMIC ENVIRONMENT  
 
(1) I NTRODUCTION  
 
WTO Secretariat’s Report, page 1, para. 1 & page 6, para. 7  
 
According to paragraph 1, "The Government provides a wide range of free or heavily subsidized 
public services and employs 25% of the labour force".  
According to paragraph 7, “It is estimated  that over 90% of the Bruneian labour force are employed 
by the public sector, including state-owned enterprises” [emphasis added].  
69. Could Brunei Darussalam please clarify?  
 Answer:   With reference to paragraph 1, the ‘labour force’  refers to the total labour force which includes the 
local and foreign workers, meanwhile, the ‘Br uneian labour force’ in paragraph 7 refers only to 
Brunei citizens and permanent residents. 
 
WTO Secretariat’s Report, page 1, para. 1 
 
According to the WTO Secretariat’s Report, “Some of  its policies, practices, and measures, including 
those pertaining to trade and foreign investment, are rather opaque”.  
 
70. How does Brunei Darussalam seek to incr ease transparency in this area?  
 
Answer:  
 Brunei Darussalam continues to address the issu e by developing measures and practices, and one 
example is the Government has published the “Br unei Darussalam Long Term Development Plan” 
which outlines the National Vision of the C ountry (Wawasan 2035), the Outlines Strategies and 
Policies for Development, as well as th e National Development Plan 2007 – 2012. 
 In 2007, Brunei joined the World Bank survey on th e Ease of Doing Business. This helps to identify 
areas in which changes need to be made.  
 Actions we have taken to impro ve transparency include the publica tion of the business and investment 
guide and other related information on busin ess and investment in several websites including 
www.mipr.gov.bn and www.bedb.com.bn.  All sta tistics are available on the website of the 
Department of Economic Planning a nd Development at www.depd.gov.bn. 
 
Brunei Darussalam has also published Investment Guid es to further facilitate FDI into the country.  
The Brunei Economic Development Bo ard (BEDB) which plays a role  in developing and promoting 
Brunei as an investment destination is a major foca l point for potential investors to get information 
and assistance.  
 
Please also refer to the answer to Question 1 from Canada. 
  WT/TPR/M/196/Add.1 
 Page 53 
 
 
  WTO Secretariat’s Report, page 1, para. 2 & page 72, para. 26  
 
According to paragraph 2, “The country continues to owe its economic prospe rity overwhelmingly to 
its abundant petroleum and natural gas resources […]”.  However, paragraph 72 states: “According to two re ports, Brunei’s oil reserves have to last 25 years 
or only another 10 years, at current rates of extrac tion. Brunei’s gas reserves […] are expected to last 
another 40 years”.   
71. Could Brunei Darussalam please indicate how it seeks to maintain its current level of 
prosperity in the future?  
 
WTO Secretariat’s Report, page 2, para. 3 & page 16, para. 42 
 
According to paragraph 2, “Since 2000, when the Government issued a landmark report acknowledging the country’s lack of a sufficiently diversified economic base, a series of plans to 
reduce unemployment, attract foreign investment , and restructure the economy away from over-
dependence on limited petroleum reserves have larg ely failed to achieve the desired changes”.  
According to paragraph 16, “A key, internal, long- term risk continues to be the slow pace of the 
Government’s diversification programme”.   
72. Could Brunei Darussalam please elaborate on how it seeks to enhance the effectiveness of its 
diversification programmes?  
 
Answer: 
 In response to Questions 3 and 4, Brunei Darussa lam acknowledges the importance of diversifying 
the economy away from the crude oil and natural  gas sectors. Brunei Darussalam has identified 5 
economic clusters that can potentially be developed;  1) Tourism and Hospitality, 2) Halal Food, 3) 
Transport and Logistics, 4) Business and Financ ial Services and 5) Info-Communication Technology 
(ICT).  In addition to that, Brunei Darussalam also reali ze the benefit it can get from further exploiting its 
comparative advantage in the energy sector.  In that context, Brunei Darussalam has begun 
undertaking to develop downstream activities in the oil and natural gas sectors. The development of 
the Sungai Liang Industrial Park (SPARK) as an authority and a one stop centre to facilitate establishment and operations of FDI in the park indicates one major move by Brunei towards 
widening its economic base for future generations. Under SPARK, the construction of the USD350 
million methanol plant is currently underway and  will start production by 2010.  The methanol 
derivatives are also expected to provide more business and employment opportunities to the local 
SMEs. The multi-billion deep water Pulau Muara B esar (PMB) port project is also expected to 
generate similar opportunities.  In the new Long-Term Development Plan, several policy directions and programmes that will be 
implemented under the Economic, Institutional Developm ent, Local Business Development, as well as 
Infrastructure Development strategies will he lp to further widen the economic base.  
 
(2) R
ECENT ECONOMIC DEVELOPMENTS  
 
(i) Macroeconomic performance  
 
(b) Employment   WT/TPR/M/196/Add.1 
Page 54  
 
  WTO Secretariat’s report, page 6, para. 7&8 
 
According to paragraph 7, the “Bruneization” po licy encourages companies to give preference to 
Bruneians in their employment policies.  However, paragraph 8 states that there is a “need fo r foreign workers”, particularly in the financial 
sector. 
 
73. Could Brunei please indicate how it seeks to make its “Bruneization” policy fit with the need 
for foreign workers for its economy?  
 Answer:  The “Bruneization” policy that the WTO Secretar iat report notes is one practiced by private 
companies such as Brunei Shell Petroleum and Royal Brunei Airlines (as indicated in the report) and 
as such is not a Government policy, which may be a form of corporate responsibility.  
 
Brunei Darussalam in fact recognizes the necessity to  bring in highly skilled foreign workers in areas 
such as the financial services as well as the petr ochemical industry to facilitate the transfer of 
knowledge and expertise which will result in the in crease of total labour productivity of the economy 
in the long-run.  
 (c) Prices  
 
WTO Secretariat’s Report, page 6, para. 11 
 
It is stated that “Inflation continues to be constrai ned by the imposition of pr ice controls and subsidies 
on essential foods and petrol”.  
 
74. Does Brunei Darussalam share the view of the WTO Secretariat’s Report?  
 
Answer: 
 
Several factors impact upon Brunei Darussalam’s inflatio n (as indicated in the CPI), this includes 
import price inflation.  Brunei Darussalam has also  been able to maintain its price stability and 
relatively low inflation due to the fact that its  currency is on par with the Singapore dollar.  
 (ii) Macroeconomic policies  
 
(a) Fiscal policy   
WTO Secretariat’s Report, page 8, para. 19 
 
The aim of a “clean and healthy environment” is stated.  
 
75. Could Brunei Darussalam please indicate how it seeks to reconcile economic growth, and 
particularly the increasing importance of the fishery sector for its economy, with the aim of sustainable development?  
 Answer:   In Brunei Darussalam, the development of the Fi sheries sector balances need against sustainability. 
For every area opened for aquaculture, an Environm ental Impact Assessment is carried out to 
determine that economic growth is rec onciled with sustainable development.   WT/TPR/M/196/Add.1 
 Page 55 
 
 
   
The aim of reconciling economic growth and sustain able development has also been incorporated in 
the Long Term Development Plan which highlights what  we intend to do in th is area. As a further 
indication of Brunei Darussalam’s commitment to economic growth and sustainable development, the 
Government has established the Department of En vironment, Parks and Recreation as main agency 
on issues related to the environment.  Moves will include the following:  
− Strengthening the legal and regulatory framewo rk to protect the environment in line with 
international standards,  
− Developing a comprehensive monitoring syst em for air and water quality, waste 
management, hazardous waste, etc 
− Public awareness and education on safeguarding the environment 
 Furthermore the Government is looking into ot her new methods of offshore fishing / aquaculture, 
such as deep sea fishing. The Go vernment has imposed a moratorium on fishing in Zones 1 and 2, as 
the policy is now to encourage deep sea fishing in Zo ne 3. This is aimed at  protecting coastal fish and 
the coral reef, where stocks have been depleted, whilst at the same time opening a new area for development.  
 
WTO Secretariat’s Report, page 8, para. 20 & page 10, para. 28  
 
According to paragraph 20, “Information on the General Reserve Fund, administered by the 
autonomous Brunei Investment Agency is not ava ilable as the BIA presents its accounts only to the 
Sultan”.  
 
According to paragraph 10, “[…] the lack of ava ilable data on the Government’s investment income 
renders the level of transparency of the BIA rather low”.   
76. Why are data on the BIA lacking?  
 
77. Does Brunei Darussalam seek to increase the leve l of transparency with regards to BIA 
activities? If so, when?  
 
Answer 
 
Based on Brunei Darussalam’s obligat ion to the IMF under Article VII, s. 5(vii) of IMF Articles of 
Agreement, its international investment position is furn ished form time to time on a confidential basis. 
Brunei Darussalam believes that data on the Brunei Investment Agency (the ‘BIA’) is not lacking to 
the extent indicated by the report.  The BIA is not a public listed company, and as such it is not under 
any legal obligation to make their accounts known to  the public.  This also applies to the issue of 
transparency raised in the report. 
The BIA is obligated to report to their Board of Directors which the Government believes it has done 
sufficiently satisfactory as there has been no complaint by the Board of Directors. 
 
(b) Monetary and exchange rate policies  
 WTO Secretariat’s Report, page 10, para. 23 
 
It is stated that “One possible disadvantage is th at the resulting steady effective appreciation of the 
Brunei dollar may impede the Government’s effo rts to diversify the ec onomy and develop export 
industries”.  WT/TPR/M/196/Add.1 
Page 56  
 
   
78. Does Brunei Darussalam share the WTO Secretariat’s view?  
 
Answer: 
 
Whilst Brunei Darussalam agrees that this may possi bly be a disadvantage, it is only a disadvantage 
if the Government’s efforts to diversify the economy were concentrated on a labour-intensive industry, 
such as manufacturing. However, the Government is not focusing in such an industry, but rather is 
looking towards the value-added industries such  as the services and downstream industries.  
 
(iv) Structural policies: diversification of the economy   
WTO Secretariat’s Report, page 11, para. 29  
 
According to the WTO Secretariat’s Report, “[…] The strategy to achieve these goals was based on a 
broad corporatization/privatization effort, greater  foreign investment, and a more competitive labour 
market”.   
79. Could Brunei Darussalam please indicate whether it plans to further undertake liberalization 
efforts? If so, in which sectors?  
 Answer:  The previous 8
th National Development Plan saw the co rporatization of Telecommunication 
Department as well as the newly established re gulatory body Authority for Info-Communication 
Technology Industries (AiTi).  Under the new plan, more government departments and services are 
being earmarked for corporatization and commerci alization.  The plan has also endorsed a 
Privatization Master Plan which will set guidelin es and procedures to further liberalise the public 
sector and encourage public-private partnerships (PPP). 
 
WTO Secretariat’s Report, page 11, para. 31 
 It is stated that “[…] there continues to be a strong government presence in the economy, often in the 
form of state-owned monopolies, which can act unencumbered by any competition law”.  
 
80. Could Brunei Darussalam please elaborate on its reasons for not having any competition law?  
 
81. Does Brunei Darussalam seek to  introduce competition law?  
 
Answer: 
 Brunei Darussalam practices competition policy th rough economic regulations such as price 
regulations and licensing of entry into economic sectors, in addition to implementing competition 
policy on a sectoral basis.   
“The very small size of the domestic market seems to discourage local and foreign participation in the 
economy […]”.   
82. Could Brunei Darussalam please indicate whethe r it intends to benefit from economies of 
scale by intensifying regional integration efforts?  
  WT/TPR/M/196/Add.1 
 Page 57 
 
 
  Answer: 
 Yes. As part of ASEAN, Brunei Darussalam aims to be an integral part of the ASEAN Economic 
Community and is a continuous supporter for ASEAN integration, particularly  as a proponent of 
FTAs including the region-to-region FTA between ASEAN and the EU.    
 
(3) D
EVELOPMENTS IN TRADE  
 
(i) Composition of trade  
 
(a) Trade in goods   
WTO Secretariat’s report, page 12, para. 35  
 
According to the WTO Secretariat’s Report, “Brunei imports almost everything, including most 
foodstuffs and beverages”.  
 
83. Could Brunei Darussalam please explain if and how it wishes to meet the criterion of 
economic self-sufficiency?  
 Answer:  Brunei Darussalam has not claimed to aim to achi eve economic self-sufficiency, particularly as it 
cannot and does not rely on domestic production or import substitution, but rather recognizes and 
practices the need for a diverse base of imports. 
 
However, the Government does aim to achieve sel f-sufficiency in selected agricultural products, 
subject to the capacity to produce coupled with th e availability of new technologies and innovations 
in farming practice. Current statistics revealed that Brunei achieved 100 percent self-sufficiency in 
egg production, while broiler re corded 94 percent sufficiency.  
 
(ii) Direction of trade  
 
WTO Secretariat’s Report, page 15, para. 38  
 
According to the WTO Secretariat’s Report, “[…] the lowering of trade barriers within the ASEAN 
region through the ASEAN Free-Trade Agreement (AFTA ) may have led to some trade diversion”.  
 
84. Does Brunei Darussalam share the WTO Secretariat’s view?  
 
Answer: 
 
Since the inception of AFTA, Brunei has seen an increa se in trade within ASEAN as well as outside 
ASEAN.  
 
(5) O
UTLOOK  
 
WTO Secretariat’s Report, page 17, para. 43 
 
According to the WTO Secretariat’s Report, “Lac k of reliable and timely data on, inter alia, 
investment income, balance of payments, monetary  statistics, the labour market, and the national 
accounts, as well as scant or non-existent info rmation about progress under the latest National WT/TPR/M/196/Add.1 
Page 58  
 
  Development Plan appear to highlight the general l ack of transparency, and thus public accountability, 
in the management of the economy”.   
85. How does Brunei Darussalam seek to improve data and statistics in these areas?  
 Answer:  Please refer to Question 2 from Canada. 
 
II. TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES 
 
(2) T
RADE POLICY OBJECTIVES AND ADMINISTRATION  
 
(i) Objectives  
 
WTO Secretariat’s Report, page 20, para. 13  
 
According to the WTO Secretariat’s Report, “The  Brunei Economic Development Board (BEDB) was 
set up in November 2001 to stimulate growth, expansion, and devel opment of the economy by 
promoting Brunei as an investment destination”.  
 
In the World Bank's Doing Busi ness Report for 2008, Brunei scores 78 among 178 countries included 
in the report. Some of the biggest obstacles lie in  starting up a business, where a company needs to go 
through 18 procedures taking 116 days to complete. A ccording to the report, no reform progress has 
been made during the surveyed year.  
 
86. Could Brunei Darussalam please elaborate on its reform plans in the short term in order to 
address these shortcomings in light of the Govern ment’s goal of encouraging the establishment of 
more private companies in the non-oil and gas sector?  
 
Answer: 
 
Past efforts are continued and new initiatives und ertaken in encouraging a more dynamic private 
sector.  More emphasis has also been given in streamlining government procedures and in the usage 
of ICT in ensuring that business can start off more efficiently.   
In accordance to the implementation of e-government  projects, the Ministry of Industry and Primary 
Resources (MIPR) has launched the e-MIPR progr amme to deliver fast, accurate, efficient and 
business friendly online services fo r investors, entrepreneurs and bus inesses such as in submitting 
licenses or permit application . In the long term, it is  envisioned that e-MIPR can be established as a 
single window in delivering services to the country ’s business community.  The Attorney General 
Chambers of Brunei (AGC) has also be gun putting up online facilities  for the registering of 
businesses (www.eregistry.agc.gov .bn) which is estimated to cut down processing time from 
7 to 3 days.    
Brunei Darussalam’s involvement in the World Bank ’s Doing Business Report surveys is also a clear 
indication of the Government’s effo rts to overcome it’s shortcomings, as through the Report it is able 
to identify areas in which reform is needed.  The M anagement Services Department (MSD) 
together with MIPR are currently in the process of discussing issues identified by the World 
Bank Ease of Doing Business report. 
  WT/TPR/M/196/Add.1 
 Page 59 
 
 
  (3) T RADE AGREEMENTS AND ARRANGEMENTS  
 
(ii) Regional agreements  
 (a) ASEAN  
 
Brunei Darussalam’s Report, page 6, para. 10 & WTO Secretariat’s Report, page. 24-26, para. 
25-31 
 The EC takes note of the fact that no refere nce is made to the ongoing EU-ASEAN Free Trade 
Agreement negotiations which were launched on 4 May 2007 whereas Brunei’s report refers to them 
as “to begin in the near future”.   
87. Does Brunei Darussalam consider updating this language by mentioning that negotiations 
were launched on 4 May 2007?  
 
Answer: 
 Brunei Darussalam wishes to clarify that the “negotiations” has began with the EU and was 
launched on 4 May 2007. 
 (d) Trans-Pacific SEP  
 
Brunei Darussalam’s Report, page 7, para. 15  
 According to Brunei Darussalam’s Report, “The Trans-Pacific Strategic Economic Partnership 
Agreement also has side agreements, namely the Environment Cooperation Agreement and Labour 
Cooperation Memorandum of Understanding, to reflect  a shared desire to encourage and promote 
sound labour and environment practices.  These agreements establish mechanisms for ongoing 
cooperation and dialogue on la bour and environment issues”  
 
88. Could Brunei Darussalam please elaborate on the specific actions taken “to encourage and 
promote sound labour practices”?  
 
89. In particular, what kinds of mechanisms for ongoing cooperation and dialogue on labour 
issues are being established?  
 
Answer:  
 The Labour Cooperation MOU in the TPSEP (P4) is  based on cooperation and consultation among 
the parties.  
Brunei Darussalam is aligning its domestic polic ies to comply with the obligations under the 
International Labour Organisation (ILO).  Consultations are also held at international meetings and other fora, such as the ASEAN Labour Ministers meeting and ILO. 
 
WTO Secretariat's Report, page 27, para. 37 
 
The WTO Secretariat's Report refers to upcoming Trans-Pacific SEP negotiations.   WT/TPR/M/196/Add.1 
Page 60  
 
  90. Could Brunei Darussalam please indicate if evolutions of the regulatory framework for 
financial services contemplated in light of the ne gotiations on financial services are taking place 
this year in the context of the Trans-Paci fic Strategic Economic Partnership Agreement? 
 
Answer: 
 
Negotiations in the area of Financial Services have yet to begin, and as such it is difficult to speculate 
as to the evolution of the regulatory framew ork for financial services in Brunei Darussalam. 
 
(iii) Bilateral agreements  
 
WTO Secretariat’s Report, page 29, para. 40  
 
According to the WTO Secretariat’s Report, “In December 2002, Brunei and the United States signed 
a Trade and Investment Framework Agreement (TIF A) […] It also includes consultations on the 
elements of a possible free trade agreement”.  
 
91. Could Brunei Darussalam please elaborate on the progress of consultations of such a possible 
free trade agreement?  
 
Answer: 
 
Brunei Darussalam and the U.S. continue to hol d consultations under the Brunei-US Trade and 
Investment Framework Agreement (TIFA) which is  focused on trade facilitation and cooperation.  
 
(4) F
OREIGN INVESTMENT REGIME  
 
WTO Secretariat’s Report, page xiii, para. 27  
 
According to the WTO Secretariat’s Report, “F oreign investment policies, while encouraging 
investment in all sectors, are unclear about limits on foreign equity holdings and the sectors in which 
investment is restricted, thereby providing scope for discretion in government decision-making”.  
 
92. Could Brunei Darussalam please elaborate on its  foreign investment policies, taking into 
account the above-mentioned assertion and expl ain how it reconciles discretion on foreign 
ownership caps with investors' need fo r predictability and legal certainty?  
 
Answer:  
 Please refer to the answer to Question 1(b) from Canada. 
 
(i) Legislative and institutional framework and investment procedures  
 
WTO Secretariat’s Report, page 29, para. 44 
 
It is stated that “Foreign nationals are generally not permitted to own land […]”.  
 
93. Could Brunei Darussalam please elaborate on the reasons for this prohibition?  
 
94. Does Brunei Darussalam seek to change this policy?  
  WT/TPR/M/196/Add.1 
 Page 61 
 
 
  Answer: 
 Brunei Darussalam is a small country and land is clearly limited.   Nonetheless, under the BEDB Act local and foreign in vestors are allowed to own industrial land 
through leases of up to 30 years (renewable).  The la nd can be used as collateral to finance projects.  
 In addition, a Strata Title Act is bei ng drafted to address such concerns.   
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
 
(1) O
VERVIEW  
 
WTO Secretariat’s Report, page 33, para. 2 
 It is stated that the gap between the applied a nd bound tariff rates “can bring about uncertainty for 
traders and other economic agents as it provides scope  for the authorities to raise applied tariffs”.  
 
95. Does Brunei Darussalam share the WTO Secretariat’s assessment?  
 Answer:  Brunei is committed to having a liberal tariff policy. Since the Uruguay Round, Brunei has 
unilaterally reduced its applied MFN tariffs. 
 
WTO Secretariat’s Report, page 33, para. 5 & page 51, para. 56  
 
Paragraph 5 states that “Government procurement remains an important instrument of economic 
policy, and government construction activities, in particular, play a major part not only in the 
construction industry, but in the economy as a whole. Brunei is not a signatory to the WTO Government Procurement Agreement”.  
Paragraph 56 states that “[…] the authorities state th at further study is needed before the Government 
can make a decision”.   
96. Given the fact that government procurement is  an important policy instrument in Brunei 
Darussalam, does Brunei Darussalam consider joining the WTO Government Procurement 
Agreement?  
 
97. Which further study is necessary before Brunei Darussalam can make a decision on joining 
the WTO Government Procurement Agreement?  
 
Answer: 
 
At this moment Brunei Darussalam does not have an y immediate plans to join the GPA either as a 
signatory or as an observer.  Brunei Darussalam feels that it is first necessary to study how the GPA could benefit Brunei in line 
with our National Development policies.   
WTO Secretariat’s Report, page 34, para. 8 
 
According to the WTO Secretariat’s Report, “Brunei does not appear to have a strong record in IPR 
enforcement”.  WT/TPR/M/196/Add.1 
Page 62  
 
   
98. Which steps is Brunei Darussalam undertaking in order to improve its IPR enforcement 
record?  
 
Answer: 
 
All complaints that have been made on IP were acted on.  However, cases which were not evidentially 
viable were not brought to Court.  Brunei Darussalam continuously welcomes right s-holders to enforce their rights in Brunei 
Darussalam by lodging complaints against in fringements and also by utilising the border-
enforcement measures available.  Brunei Darussalam also continuously maintain s public awareness on IPR through seminars in 
various forms. 
 
As of 2006, the Attorney General has directed that  enforcement agencies refer complaints or cases in 
relation to intellectual property to the Attorney General’s Chambers before raids are conducted to 
ensure compliance of the law and usability of the evidence. This has resulted in discussion of the 
relevant evidential requirement between the Criminal Justice Division, the Registries Division as well as enforcement agencies such as the Royal Brunei Police Force and the Customs Department as well 
as right holders and complainants, when available.   
 (2) M
EASURES DIRECTLY AFFECTING IMPORTS  
 
(i) Customs procedures  
 
WTO Secretariat’s Report, page 35, para. 12 & page 44-46, para. 32-36 
 
It is mentioned that Brunei maintains import rest rictions on certain goods for health, sanitary and 
phytosanitary reasons as well as moral reasons, whic h for example includes import restrictions on live 
cattle and poultry.  
 
99. Could Brunei Darussalam please confirm that these restrictions are fully in line with the SPS 
agreement, and as such, do not violate the OIE Terrestrial Animal Health Code 2007? 
 
Answer: 
 As a member of the OIE, Brunei Darussalam follows OIE standards and procedures. Brunei 
Darussalam bases restrictions on th e relevant ISPM Guidelines. 
 (iii) Applied tariff 
 
(a) Structure of the MFN tariff   
WTO Secretariat’s Report, page 38, para. 20  
 It is stated that “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”.   
100. Does Brunei Darussalam intend to make informati on available with regards to the 131 lines?  
  WT/TPR/M/196/Add.1 
 Page 63 
 
 
  Answer: 
 These ad valorem conversions – both on agricultural and non-agricultural lines - were provided to 
the WTO Secretariat. 
 “High rates of smuggling” are also mentioned.  
 
101. Which steps is Brunei Darussalam undertakin g in order to reduce these high rates of 
smuggling?  
 Answer:  Brunei Darussalam remains vigilant in its efforts to counter smuggling activities.  (iv) Tariff bindings  
 
WTO Secretariat’s Report, page 41, para. 28  
 
According to the WTO Secretariat’s Report, “Brunei did not sign the WTO Agreement on 
Information Technology Products”.   
102. Does Brunei Darussalam intend to sign th e WTO Agreement on Information Technology 
Products?  
 
Answer: 
 
Please refer to the answer to Question 3 from Canada.  
(v) Other charges affecting imports  
 
WTO Secretariat’s Report, page 43, para. 30  
 The possibility for the Minister of Finance to im pose and revoke excise taxe s on any goods as deemed 
appropriate could create uncertainty for private companies.   
103. Could Brunei Darussalam please elaborate on the criteria according to which goods could be 
subject to excise? If no such regulations/criteria are in place, could Brunei Darussalam 
please indicate if regulations are in the making?  
 
Answer: 
 Goods to be excised are generally considered on the basis of: 
1. Revenue generation. 
2. Social, health and environmental impact. 
 (viii) Standards and sanitary and phytosanitary measures  
 
104. Could Brunei Darussalam please explain why authorities request a sanitary certificate for 
each European olive oil imported? 
 WT/TPR/M/196/Add.1 
Page 64  
 
  Answer: 
 Brunei Darussalam requires a sanitary certificate for all types of olive oil imported into the country, 
in accordance with local health and safety regula tions. This is applied on a non-discriminatory basis, 
i.e. to all WTO members, not just to the EC.  
 
(b) Sanitary and phytosanitary measures   
WTO Secretariat's Report, page 49, para. 45 
 According to the WTO Secretariat's Report, "Followi ng 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".   With regard to Avian Influenza could Brune i please provide information on the following: 
 
105. Could Brunei Darussalam ensure that it appli es all OIE recommendations with regard to 
import restrictions for reasons of avian influenza (AI)?  
 
106. If not, please could Brunei Darussalam please  clarify and explain whether Brunei is 
considering bringing its measures in line with OIE recommendations? 
 Answer:  Brunei Darussalam has been a member of the OI E since 2004, accordingly import restrictions for 
reasons of avian influenza are in line with the OIE recommendations. 
 
The OIE recommendations (Article 2.7.12.20) state th at heat-treated meat (following a process which 
ensures destruction of AI virus) can be safely trad ed regardless of the AI status of the exporting 
country.   
107. Could Brunei Darussalam ensure that import rest rictions are not being applied to EU exports 
of heat-treated poultry products?  
 
108. If so, could Brunei ensure that import restric tions are in accordance to the above-mentioned 
OIE recommendations?  
 Answer:  Brunei Darussalam confirms that it can receive imports of poultry products that have undergone the 
process of heat-treatment according to the OIE.  
An exporting country can re-gain its AI free status  after 90 days with no outbreaks, in accordance 
with the OIE Animal Health Code. The EC would al so like to point out that , according to the OIE, 
countries with outbreaks of AI only in the wild bird population should not suffer any import restrictions on poultry products.   
109. Is Brunei Darussalam following the above-m entioned approach, in accordance with 
international recommendations?  
 
Answer: 
 
Yes.  WT/TPR/M/196/Add.1 
 Page 65 
 
 
  WTO Secretariat's Report, page 49, para. 46 & page 70, para. 16 
 
According to paragraph 46, "Under the 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 Islam; for 
slaughterhouses not on the list, an inspection commit tee, including representatives from the Ministry 
of Religious Affairs, the Majlis, the Ministry of H ealth, and the Department of Agriculture is required 
to inspect and approve the abattoir. The Board forw ards the application to the Majlis who makes the 
final decision on issuing the import permit".   According to paragraph 16, "Imports of all m eat and poultry products are subject to Halal 
requirements and may only be sourced from government-approved abattoirs".  
 The EC has no intention to contest the legitimacy of  the Halal Meat Act. However, the EC would like 
to highlight that the system of abattoir approval im plies that a lengthy procedure of approval has to be 
performed for every single establishment wishing to export agricultural products to Brunei 
Darussalam including on the spot inspection visits carried out by Bruneian officials. 
 
110. The EC would like to know if Brunei Da russalam considers amending the relevant 
legislation in order to allow for EU exports of  agricultural products to benefit also from a 
similar system of pre-listing and so as to make it not more trade restrictive than necessary to fulfil its legitimate objective?  
 
By way of example, the EC does not impose a lengthy approval system on countries wishing to export to the EU. Moreover, the EC practice is to allo w third countries to authorise the establishment to 
export to the EC by themselves, once the country itself has been approved. This is the so-called 
prelisting system.  
 
Answer: 
 There are no plans to do so at the moment.  (ix) Government procurement  
 
(a) Overview   
WTO Secretariat’s Report, page 50, para. 53 
 It is stated that “Although foreign suppliers can part icipate in government tenders, most retain a local 
agent to represent them in Brunei, as corporate relationships with the Government are of great importance”.   
111. Is the presence of a local agent compulsory fo r foreign suppliers or is it just advisable?  
 Answer:  The presence of a local agent is advisable, to look after a foreign company’s interest in Brunei 
Darussalam and for easy communication and transfer of knowledge and know how etc, but it is not compulsory. 
 
It is further stated that “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”.  
 WT/TPR/M/196/Add.1 
Page 66  
 
  112. Which steps is Brunei Darussalam undertaking in  order to increase the chances of foreign 
suppliers without local knowledge?  
 
Answer: 
 
Brunei Darussalam encourages foreign suppliers to wo rk together with a local agent in order to 
increase the suppliers’ accountability as well as to ensure efficient a fter sales services.  
 Brunei Darussalam believes that local knowledge is  important for a foreign supplier/company to 
establish itself in the country. 
 
WTO Secretariat’s Report, page 51, para. 54 
 
According to the WTO Secretariat’s Report, “The notification timeframe from receiving tender recommendations to award of contr acts is approximately a month”.  
 
113. How much can this figure vary and under which conditions?  
 
Answer:  Normally between 2 to 3 weeks. 
 
(b) Tendering procedures   
WTO Secretariat’s Report, page 52, para. 58  
 According to the WTO Secretariat’s Report, “No detailed data were available from the authorities 
concerning the breakdown of procurement contract s awarded and their values by tender method”.  
 
114. Does Brunei Darussalam intend to make data  on the breakdown of procurement contracts 
available? If so, when?  
 Answer:  Brunei Darussalam is working on the project to introduce e-Procurement System to enhance the 
transparency of its Government Procurement regimes, information and Statistic Data. 
 
(x) Import-related operations of state enterprises  
 
WTO Secretariats Report, page 52, para. 61 & page 54, para. 70  
 
According to paragraph 61, “Brunei has not notif ied any state-trading enterprises to the WTO”.  
According to paragraph 70, “No information was av ailable to the Secretariat on exports by state 
enterprises”.  
 
115. Could Brunei Darussalam please confirm that there are no state-trading enterprises?  
 
116. If state-trading enterprises exist, could Brune i Darussalam please explain if and when it 
intends to notify them to the WTO?  
  WT/TPR/M/196/Add.1 
 Page 67 
 
 
  Answer: 
 
Brunei Darussalam understands that the Informati on Technology and State Store Department (ITSS) 
is not a state enterprise, as it does not fulfil the definition of a State Trading Enterprise under the 
WTO.  
 
The ITSS functions as a body to purchase and store rice and sugar for reasons of national food security. ITSS is not given special and exclusive rights to purchase such  items. There are no 
restrictions on importation of rice and sugar as bus inesses are allowed to import rice and sugar with 
a permit. 
 
(4) M
EASURES AFFECTING PRODUCTION AND TRADE  
 
(i) Legal framework for businesses  
 
WTO Secretariat’s Report, page 54, para. 73 
 
According to the WTO Secretariat’s Report, “At least half the directors of a company incorporated in 
Brunei must be either nationals of Brun ei or ordinary resident in Brunei”.  
 
117. Could Brunei Darussalam please elaborate on the rationale of this policy?  
 
Answers: 
 This policy is reflected under section 138(2) of the Companies Act (Cap. 39).  
 
The rationale of the provision has always been to  secure the presence of a local director who will be 
accountable and answerable for the company’s matters and liabilities.   
 
(iii) Incentives  
 (b) Tax incentives  
 
WTO Secretariat’s Report, page 56, para. 81 
 
According to the WTO Secretariat’s Report, “Br unei’s economic developmen t might be better served 
by a more broadly-based corporate income tax syst em involving fewer incentives, but with a tax rate 
substantially lower than the 30% currently levied”.   
118. Does Brunei Darussalam share the WTO Secretariat’s assessment?  
 
Answer: 
 
Yes. 
 
(v) The public sector and private investment  
 (a) The public sector  
 
WTO Secretariat’s Report, page 58, para. 89 
 
According to the WTO Secretariat’s Report, “Public sector monopolies also appear  to exist in key 
infrastructure sectors, including electricity, and water” [emphasis added].  WT/TPR/M/196/Add.1 
Page 68  
 
   
119. Could Brunei Darussalam confirm if such public sector monopolies exist?  
 
120. If so, does Brunei Darussalam intend to keep these monopolies? If so, why?  
 
Answer: 
 Traditionally electricity and water is provided by the government. However in the case of electricity, 
there is one private electrical power station provid ing electricity supply to Brunei Darussalam in 
addition to the government owned power stations.  
 
At present, water is still provided by the government  to ensure that the basi c needs of the people are 
provided for. Such public sector monopolies exist where the prohibitive cost of developing 
infrastructure represents a barrier to  entry for new entrants. For example, it would be very costly for 
a second provider to implement a second fi xed line infrastructure in Brunei. 
 
WTO Secretariat’s Report, page 58, para. 91 
 
The Government through various efforts encourag es expansion of the non-oil and gas sector and is 
said to aiming at reducing direct Government invol vement in the economy. Nevertheless, Government 
enterprises are directly involved  in several sectors of the econom y, which could be run by private 
companies, including SMEs.  
 
121. Could Brunei Darussalam please elaborate on the efforts it is pursuing in order to reduce the 
role of state-owned enterprises, in par ticular in commercially viable sectors?  
 
122. How has the contribution of state-owned enterprises to the national economy evolved since 
the introduction of the Eighth National Development Plan? 
 
Answer:  
 At the moment, there is no plan to reduce the ro le of state-owned enterprises in the economy. 
 
State-owned enterprises were set up in order to stimulate business activities in commercially viable 
industries where the private sector is constraine d by lack of access to technology and financial 
resources.  
Nevertheless Brunei Darussalam undertakes e fforts to develop the private sector by:  
 Enhancing the business, management  and technical skills of local businesspersons through 
various training programs offered by MIPR, MO E and the private sector, most of which are 
offered free of charge.  
 The Enterprise Facilitation Scheme provides lo wer than market rate interest loans for 
qualified entrepreneurs. 
 
(vi) Competition policy  
 
WTO Secretariat's Report, page 60, para. 96 
 It is stated that, "According to Brunei's APEC I ndividual Action Plan, it has no specific legislation on 
competition policy but it is considering competiti on policies in line with APEC principles".  
 
123. Could Brunei Darussalam please provide more information on the process and the timescale 
for the announced adoption of "competition po licies in line with APEC principles"?   WT/TPR/M/196/Add.1 
 Page 69 
 
 
  Answer: 
 As a member of APEC, Brunei Darussalam adheres to the APEC principles of competition policy, and 
as such there is no timeline to announce its adoption.   
 
(vii) Intellectual property rights  
 
(b) Trade marks   
WTO Secretariat’s Report, page 61, para. 102  
 
According to the WTO Secretariat’s Report, “Under the Act, a foreign applicant must provide an address in Brunei Darussalam for all related correspondence from the Registrar”.   
124. Could Brunei Darussalam please elaborate on the rationale of this policy?  
Answer: 
 An address for service is a requirement under the law which applies to foreign applicants only. This 
address for service (usually a law firm that acts as  the agent for the applicant, if appointed) is the 
address to which all correspondences fr om the registrar are sent.  
 
This is to ensure that the service of doc uments are properly and efficiently effected. 
 
(c) Patents   
WTO Secretariat’s Report, page x, para. 15 
 
According to the WTO Secretariat’s Report, Brunei Darussalam “still needs to implement its Patent 
Order (that dates from 1999) to provide patent protection for, inter alia, pharmaceutical and 
agricultural products and processes”.  
125. Could Brunei Darussalam please elaborate on th e measures it is implementing in order to 
protect the intellectual property rights especially  in pharmaceutical and agricultural sectors? 
Answer: 
 The Patents Order 1999 has been published in th e Government Gazzette but is yet to be fully 
implemented. These new laws on patents are TRI PS-compliant. Currently, there is no independent 
system for the registration of patents.   
WTO Secretariat’s Report, page 62, para. 107 
 
It is stated that “Due to a lack of qualifie d persons and expertise substantive examination for 
patentability will be conducted abroad under a refe rral arrangement with foreign patent offices”.  
 
126. Could Brunei Darussalam please elaborate on the role of these foreign patent offices?  
127. How is confidentially ensured?  
 WT/TPR/M/196/Add.1 
Page 70  
 
  Answer: 
 The role of the foreign patent office is to carry out substantive searches on patentability as the new 
system that Brunei Darussalam is optin g for is based on formality checks only. 
 
Currently, Brunei Darussalam has not finalized arrangements with any foreign patent offices. 
However, it is mindful of the ‘confidentiality’ re quirement when dealing with applications for the 
registration of patents.   
(g) Enforcement and penalties   
WTO Secretariat’s Report, page 64, para. 118  
 
128. Is Brunei Darussalam aiming at introducing le gislation on disclosure of information on 
medical products and cosmetics? If so, when?  
 
129. Could Brunei Darussalam confirm that such legi slation will be fully aligned with the TRIPS 
Agreement in this respect?  
Answer: 
 Disclosure of information on medicinal products an d cosmetics will be regulated by the Medicines 
Order, 2007 which commenced on 1 January 2008 w ith respect to cosmetic products. [The Order 
provides for different commencement dates for me dicinal products and cosmetic products]. 
Accordingly, medicinal products are required to be  registered before marketing authorization can be 
granted whereby applications for registration require the disclosure of “documents, items, samples, 
particulars and other information as the Authority may require.  
 
Section 65(1) provides that any person who disclo ses to any other person (a) any information with 
respect to any manufacturing process or trade secret obtained by him in premises which he has 
entered by virtue of section 59; or (b) any informat ion obtained by or furnished to him in pursuance 
of this Order, is unless the disclosure was made in th e performance of his duty, guilty of an offence.   
 
IV. TRADE POLICIES BY SECTOR  
 
(4) N
ON-OIL AND GAS SECTOR  
 
(i) Production and trade  
 
WTO Secretariat’s Report, page 71, para. 23 
 
According to the WTO Secretariat’s Report, “Brune i’s economy has followed the swings of the world 
oil market […]”.  
 
130. Which steps is Brunei Darussalam undertaking in order to decrease its economic 
dependence on the swings of the world oil market?  
Answer: 
 
In order to decrease Brunei Da russalam’s economic dependence on the swings of the world oil 
market, Brunei strives to achieve economic diversific ation, away from crude oil and natural gas. For 
further details, please refer to th e answers to Questions 3 and 4.   WT/TPR/M/196/Add.1 
 Page 71 
 
 
  (ii) Oil and gas industry  
 
(a) Petroleum refining and other downstream activities   
WTO Secretariat’s Report, page 75, para. 33 
 
According to the WTO Secretariat’s Report, “The G overnment is keen to encourage investment in 
downstream activities […]”.   
131. Could Brunei Darussalam please elaborate on the nature of the liberalisation regime for 
foreign service providers willing to supply energy products distribution services?  
132. In light of the importance of the oil and gas sector for Brunei's economy, what is the current 
liberalisation regime and what are the cond itions ruling the provision of energy-related 
services by foreign service providers to those companies licensed to exploit the hydrocarbon resources?  
133. Is Brunei Darussalam considering undertaking commitments and reflecting its actual level 
of liberalisation in energy-related services se ctors, as suggested notably in the collective 
request on energy-related services?  
Answer: 
 Brunei Darussalam would like to request that the E.C. clarify / elaborate Questions 63 and 65.  
 
As to Question 64, the conditions  for the provision of services are determined by the individual 
company licensed to exploit the hydrocarbon res ources. Currently, highly specialised activities 
including seismic gathering activities, offshore drillin gs are provided by foreign service providers.  
 
(5) S
ERVICES  
 
(i) Overview 
 
WTO Secretariat’s Report, page 78, para. 49 
 
According to the WTO Secretariat’s Report, “R ecognizing the importance of services for economic 
growth, the Government aims to transform Brunei into a service hub for trade and tourism (SHuTT)”.  
 
134. In light of plans to turn Brunei Darussalam into a services hub for trade and tourism, could 
Brunei Darussalam please elaborate on the cond itions applying to foreign services suppliers 
interested in providing restaurant, hotel, tr avel agencies, and tour operator services in 
Brunei?  
135. Could Brunei Darussalam please explain if consider ation is given to further liberalisation of 
tourism and travel-related services, as well as of infrastructure sectors that play a crucial role in the development of an efficient touris m industry such as transport and construction 
services? WT/TPR/M/196/Add.1 
Page 72  
 
  Answer:  
 
Travel Agent Closed sector as there is a cap on licences issued to 45 companies (holders of 
existing licenses) since 1985 (Ministry of Finance Directive) and in 1980, the 
Ministry of Finance issued a circular requiring all new applicants to be Brunei 
Darussalam nationals. 
Tour Operators Currently no restrictions on this sector other than domestic presence 
requirements and conditions which mayb e imposed upon award of an operating 
licence. 
Tour Guides Currently no restrictions on this sect or. Steps are currently being undertaken in 
order to regulate this sector. 
 NB: Details as to the other sectors will be provided at a later date  One of the clusters designated by BEDB to prom ote our economic diversification programme is 
‘hospitality and tourism’. It is an area which we shall consider pos itively for further liberalization in 
the near future.  Brunei Darussalam believes in the gradual and event ual liberalization of the transport sector while 
striking a balance between protecting the cons umers, the development of the local players and 
achieving strategic economic interest of the count ry towards providing a sa fe, easy, accessible and 
secure (SEAS) transport services in Brunei Darussalam.  
WTO Secretariat’s Report, page 78, para. 51 
 
According to the WTO Secretariat’s Report, "The aut horities have indicated that they intend to revise 
their offer at an appropriate time in the DDA negotiations".  
136. Could Brunei Darussalam please inform us about  the content of the new offer that the 
authorities indicated to revise in relation to future liberalisation?  
Answer:  
 DDA negotiations are not complete and as such Br unei Darussalam will respond when the outcome is 
clearer.  
 
 AUSTRALIA
 
 II. TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES  
 
1. The Secretariat report notes that “(t)he institu tional framework is characterized by a lack of 
transparency with respect to trade and trade-re lated policies, to the detriment of government 
accountability” (WT/TPR/S/196, page 18, paragraph 2).  The Report by Brunei Darussalam does not 
appear to contain any statements that address this  issue.  What are Brunei Darussalam’s current 
policies and practices relating to the publication of  trade measures and what steps is it taking to 
improve transparency in this area?   WT/TPR/M/196/Add.1 
 Page 73 
 
 
  Answer: 
 To improve transparency, the Go vernment recently published the new Brunei Darussalam Long-Term 
Development Plan which outlines the National Vi sion of the Country (Wawasan Brunei 2035), the 
Outline of Strategies and Policies for Development (OSPD), as well as the National Development 
Plan 2007 – 2012.  One of the strategies, Institu tional Development Strategy, addresses the issue of 
transparency and minimization of red tape by mainta ining high standards of governance in the public 
and private sector. In the National Development Pl an 2007-2012, one of its development thrusts, 
Strengthening the Institutional Capacity, al so aims to address the same issue.  
 
In 2007 Brunei joined the World Bank survey on the Ease of Doing Business. This helps to identify 
areas in which changes need to be made.  
 
(3) T
RADE AGREEMENTS AND ARRANGEMENTS  
 
(i) Multilateral agreements  
2. Like all WTO Members, Brunei Darussalam is required to make regular notifications to the 
WTO in accordance with various WTO provisions (W T/TPR/S/196, page 24, pa ragraph 23 and page 
104, Table AII.1).  Brunei Darussalam has several regular WTO notifications outstanding, including 
notifications for agriculture domestic support and st ate trading enterprises.  Could Brunei Darussalam 
advise when it will be able to provid e WTO Members with these notifications? 
 
Answer:  
 
Brunei Darussalam has no state trading enterprises.  In relation to the agriculture domestic support, 
Brunei Darussalam only gives assistance for purposes of maintaining food security, provision of 
infrastructural services, and research and training activities. 
 
(4) F
OREIGN INVESTMENT REGIME  
 
3. The Secretariat report notes that in relation to  foreign investment, “only activities relating to 
national food security and those based on natural resources require local equity participation” 
(WT/TPR/S/196, page 29, paragraph 43).  How do es Brunei define the concept of “national food 
security” and the range of activities/products  that are covered by that concept? 
 
Answer:  
 Brunei Darussalam considers that the notion of na tional food security is to ensure availability, 
physical and economic accessibility of basic food suppli es to all sections of the population. This basic 
notion of food security also enco mpasses for reasons for health and safety for the whole country. 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE  (2) M
EASURES DIRECTLY AFFECTING IMPORTS  
 
(iii) Applied tariff 
 
4. Australia notes Brunei Darussalam’s relatively low average applied MFN tariff (WT/TPR/G/196, page 7, page 19).  The Secretaria t was, however, unable to include in its tariff 
analysis the specific tariff rates on 131 lines as information on ad valorem  equivalents was not 
available (WT/TPR/S/196, page 38, paragra ph 20).  Could Brunei Darussalam provide ad valorem  WT/TPR/M/196/Add.1 
Page 74  
 
  equivalents for the specific tariff rates applied to  various products such as cigarettes, alcoholic 
beverages, coffee, tea, petroleum oils and lubricants? 
 
Answer:  
These ad valorem conversions – both on agricultural and non-agricultural lines - were provided to 
the WTO Secretariat. 
 
5. What is Brunei Darussalam’s policy rationale for the maintenance of high tariffs on wood and 
wood products, and certain machin ery and appliances, vehicles a nd vehicle parts and precision 
instruments and apparatus?  Is Brunei taking an y steps to review these policy settings and reduce 
those tariffs? 
 
Answer:  
Since the Uruguay Round, Brunei has committed to unilaterally reduce her applied MFN tariffs. To 
date, Brunei has one of the lowest average applied MFN tariffs among developing countries. 
 (iv) Tariff bindings  
 
6. What are Brunei Darussalam’s reasons for not having become a party to the WTO 
Information Technology Agreement?  Does Brune i Darussalam apply tariffs to information 
technology products? 
 
Answer:  
Please refer to the answer to Question 3 from Canada.  
 
7. Within the Doha Round non-agricultural ma rket access (NAMA) negotiations, provision has 
been created for “small, vulnerable economies” not  to apply the general tariff reduction formula 
modality to their bound tariffs.  Members with less than  0.1% share of world trade may have access to 
this provision.  Can Brunei Darussalam clarify as to whether it considers itself to be a small, 
vulnerable economy, or whether it would anticipat e applying the same general tariff reduction 
formula modality as other developing countries? 
 
Answer:  
As a general policy direction, Brunei attaches g reat importance to promoting trade liberalization. 
Brunei therefore sees the benefits of applying tariff  cuts based on her already liberal tariff policy 
regime – regardless of whether she considers herself as an SVE or otherwise. 
 
(ix) Government procurement 
 8. The Secretariat report (WT/TPR/S/196, page 51, paragraph 56) notes that Brunei is not a 
signatory to the WTO Government Procurement Agreem ent, and that “the authorities state that further 
study is needed before the Government can make a decision”.  It is, however, noted that coverage 
under the Trans-Pacific Strategic Economic Partnershi p (SEP) Agreement is ex tensive and that Brunei 
Darussalam has been given two years (from July  2006) to negotiate its government procurement 
schedule.  The Report by Brunei Darussalam notes that it is preparing its list for entities under the 
Government Procurement chapter (WT/TPR/G/196, pa ge 7, paragraph 15).  What progress has Brunei 
made in negotiating its government procurement schedule under the Trans-Pacific SEP Agreement?  
Could these commitments form a basis for broader liberalisation of its government procurement activities and accession to the WTO Government Procurement Agreement?  If so, to what extent?  WT/TPR/M/196/Add.1 
 Page 75 
 
 
  Answer:  
 On the Government Procurement schedule under the Trans-Pacific Strategic Economic Partnership 
Agreement, Brunei Darussalam is still in the process of negotiation an d as such details can only be 
further elaborated upon completion of the negotiation 
 
(4) M
EASURES AFFECTING PRODUCTION AND TRADE  
 (vii) Intellectual property rights 
 
9. Australia notes that enforcement of intellect ual property (IP) rights is based on complaints 
lodged by the registered owner (WT/TPR/G/196, pa ge 10, paragraph 31).  What process does a right 
holder have to undertake to lodge a comp laint and how is the complaint processed? 
 
Answer:  
 
Rights holders may lodge a complaint with the pol ice and file in required documents proving they 
own the rights alleged to have been infringed. Due to evidential requirements on mens rea, prior 
notice of their rights would be important; such prio r notice can be done by advertisements in the local 
newspaper or notice to vendors. 
 
10. Under Brunei Darussalam’s current statutory re gime, police powers of investigation of IP 
criminal offences are also dependant upon the receipt of a complaint by the right holder (WT/TPR/S/196, page 64, paragraph 118).  Are ther e any circumstances where criminal investigations 
may be launched by the police without receiving a complaint?  If so, please provide examples. 
 
Answer:  
 The police have ex-officio powers to take action, however as limited number of rights holders are 
present in Brunei Darussalam, a complaint is the usual basis for action as it indicates that the 
particular rights holder will be present to prov ide technical assistan ce in identifying where 
infringements have occurred and ap pearing in court as the compla inant during court proceedings.  
 Where a rights holder gives adequate notice that their titles should only be obtained from their exclusive licencee in country X and no other, the police can then contemplate enforcement action 
against those ordering infringing copies without a specific complaint.  However, the rights holder, 
representative or exclusive licencee who has aut hority to deal with infringement in Brunei 
Darussalam, will then be required to certify such infringing goods or articles and appear in court to 
give evidence that their rights have been infringed. 
 
11. Australia notes that Brunei Darussalam’s C opyright Order is being amended (WT/TPR/S/196, 
page 64, paragraph 114).  Are furt her details about the amendments  available, and when are the 
amendments expected to enter into force? 
 
Answer:  
 The amendments had been reviewed and discussed amongst relevant agencies and it was decided that 
further review was needed to be done on certai n other areas. Further comparison work with 
legislations from other countries is also to be carried out. 
 
12. Australia notes and welcomes Brunei Darussalam ’s work regarding electronic filing of trade 
mark applications (WT/TPR/S/196, page 61, para graph 104).  Can Brunei Darussalam confirm that 
the project was completed by end 2007 as expected? WT/TPR/M/196/Add.1 
Page 76  
 
  Answer:  
 The e-Registry project was completed at the end of 2007 as scheduled and the business processes of 
the Registry of Trade Marks a re now fully automated. The trademark e-filing system will be 
introduced in phases and will be availabl e to the public at a later stage. 
 
13. Australia notes the reluctance of right holders to protect their own rights through border enforcement provisions under the relevant IP legi slation (WT/TPR/G/196, page 10, paragraph 33).  
Why are right holders reluctant to rely on these measures?  Answer:   Although no specific reasons have been given by ri ght holders, the reluctance may be due to right 
holders not wishing to incur liability in assuri ng appropriate security which may be imposed in 
indemnifying Customs as a result of detention of goo ds which are the subject of the rights holder’s 
notice.  
IV. TRADE POLICIES BY SECTOR 
 (2) A
GRICULTURE , FORESTRY , AND FISHING  
 
(i) Agriculture 
 
14. Australia notes that as part of Brunei Daruss alam’s diversification program (Eighth Plan), 
B$90.5 million was allocated to agriculture from 2001-05 to encourage development within that 
sector (WT/TPR/S/196, page 68, paragraph 9).  How does Brunei Darussalam intend to notify the 
programs arising from this funding in its domestic support notification in accordance with Article 18.2 
of the Agreement on Agriculture?  
Answer:  
 
According to the Eighth Plan, the budget allocated to agriculture was for th e purposes of maintaining 
food security, provision of basic  infrastructural services, and research and development activities and 
regulatory and market promotion.  As part of Brunei Darussalam’s capacity building ac tivities to ensure compliance with WTO rules on 
domestic support, a Consultant Study is cur rently being undertaken to research the incentive 
programmes administered by the Department of Agriculture.  Brunei Darussalam will look into updating its  outstanding notifications where appropriate.  
 
15. The Secretariat’s report (WT/TPR/S/196, page 68- 69, paragraph 11 and footnote 4) states that 
the government of Brunei Darussalam used various  schemes, such as price support, to increase rice 
production.  How does Brunei Darussalam’s end-pr oduct subsidy scheme for rice producers operate?  
Would Brunei Darussalam confirm that this support would form part of its Current Total Aggregate 
Measure of Support (AMS) calculation?  Answer:   The scheme is part of a National Development Plan programme to encourage domestic rice 
producers – and is based on providing a Guarantee d Price to the producers (through a Government 
Purchasing Scheme). Rice producers need to be regist ered with the Department of Agriculture to join 
the scheme, and should only grow local rice va rieties recommended by the department for the  WT/TPR/M/196/Add.1 
 Page 77 
 
 
  domestic market. Rice grown under this scheme only provides 1-3% of Brunei Darussalam’s domestic 
rice consumption. As rice is a controlled commodity in Brunei Darussalam, the retail price is set by 
the Government.   Brunei Darussalam is still at the stage of developi ng technical capacity in order to carry out AMS 
calculations. In this regard, Brunei Darussalam welcomes assistance from the WTO Secretariat and 
Member Countries in this field.   (5) S
ERVICES  
 
16. The Secretariat report notes that foreigners ma y be allowed to hold up to 100 per cent of the 
equity in certain industries and activities in whic h the Government wishes to encourage investment 
(WT/TPR/S/196, page 29, paragraph 44).  The Secret ariat report also identifies some of the industry 
sectors in which Brunei is seeking to encourage fore ign investment: transport and logistics, business 
services, financial services, and hospitality and tour ism (Box II.2 on page 31).  To what extent does 
Brunei take into account the role that improved GATS commitments could play in advancing the 
objectives of the Economic Development Boar d’s economic diversification strategy? 
 
Answer:  
 
Brunei looks positively to making a revised offer based on her economic diversification strategy. 
 
17. Australia notes Brunei's current GATS Mode 4 commitments regarding managers, executives 
and specialists but understands that current domestic regulation limits holders of  relevant visas to a 
single entry.   In Australia's view, multiple entr y visas for short term service suppliers facilitate 
increased trade in services and investment.  Is Brune i considering altering its current visa regulations 
to permit multiple entry by temporary entry visa holders?  
Answer:  
 Brunei Darussalam will look into this possibility.  
 18. Australia is disappointed by Brunei's MFN ex emption on legal services and its failure to make 
or offer any commitments on legal services.  Is Brune i considering any legislative change that would 
enable it to make legal services commitments in future?  Answer:   Currently, there are still no plans for Brunei Darussalam in respect of  making legal services 
commitments.   Brunei reaffirms that any new commitments shall be  conducted on the basis of reciprocity. As such, 
Brunei welcomes the interest of Australia on this issue.  WT/TPR/M/196/Add.1 
Page 78  
 
  THE UNITED STATES
 
 
WT/TPR/S/196  
 
TRADE POLICY FRAMEWORK 
 
Transparency 
 
One theme of the Secretariat Report is the need fo r greater transparency in government policies and 
the manner in which they are administered (see, fo r instance, Summary Observations page viii).  As 
examples, the Report mentions the availability of in formation about foreign in vestment policies; the 
coverage, quality, timeliness, and frequency of fina ncial statistics; information about the National 
Development Plan and its progress; and the procur ement and trading activities of state enterprises. 
 
• What steps is Brunei contemplating to improve the transparency of its policies and activities in 
these areas? 
 
Answer: 
 To improve transparency, the Go vernment recently published the new Brunei Darussalam Long-Term 
Development Plan which outlines the National Vi sion of the Country (Wawasan Brunei 2035), the 
Outline of Strategies and Policies for Development (OSPD), as well as the National Development 
Plan 2007 – 2012.  One of the strategies, Institu tional Development Strategy, addresses the issue of 
transparency and minimization of red tape by mainta ining high standards of governance in the public 
and private sector. In the National Development Pl an 2007-2012, one of its development thrusts, 
Strengthening the Institutional Capacity, al so aims to address the same issue.  
 
The progress of the past National Development Plans  can be found in each of Brunei Darussalam’s 
National Development Plans including the latest publication.   
For the coverage, quality, timeliness and frequency of financial statistics, Brunei Darussalam is 
currently improving its data collection methods. Its participation in regional and international fora 
such as the ASEAN Working Group for Foreign Direct Investment Statistics (WGFDIS), International 
Labour Organisation (ILO), United Nation Economic  and Social Commission for Asia and the Pacific 
(UNESCAP), United Nation Statistics Division (UNS D), helps Brunei Darussalam to continuously 
enhance its data collection dissemination and analysis.  Please also refer to Question 2 from Canada.   
 With respect to government procurement, Brune i Darussalam is working on introducing an e-
Procurement System. 
 With respect to foreign investment policies, please refer to the ans wers to Questions 1a and 1b from 
Canada.  
TRADE POLICY AND PRACTICES BY MEASURE 
 Import Restrictions and Licensing  
The information on imports subject to licensing described (on page 46 paragraph 35 of the Secretariat 
Report as well as in Table AIII.2) appears to be di fferent from the products listed in Brunei’s import 
licensing questionnaire (G/LIC/N/3/BRN/1), including with respect to some important U.S. exports 
such as medical products and telecommunications e quipment.  We would appreciate information on 
Brunei’s plans for updating its import licensing notifications.  WT/TPR/M/196/Add.1 
 Page 79 
 
 
  Answer: 
 Brunei Darussalam will look into updating its  outstanding notifications where appropriate.  
 Standards and Sanitary a nd Phytosanitary Measures  
 
The United States acknowledges the recent WTO TBT notification from Brunei on its proposed halal 
requirements.  The United States is in the pro cess of reviewing this no tification and providing 
comments on the proposed measure.  We note that  the Secretariat Report (page 49 paragraph 46) 
refers to the permit requirements in the Halal M eat Act and the Halal Certificate and Halal Label 
Order 2005.  At the time of publication, halal m eat and poultry could only be imported from Malaysia 
and Australia.  The Report adds that live cattle are imported from Brunei's state-owned cattle farm 
located in northern Australia.  Based on this information, we have the following questions: 
 
• Will Brunei's halal requirements and the process fo r obtaining approvals be available online?  If 
yes, please identify the website.  If not, where will the final rules and requirements be published? 
 
Answer:  
 At this time, there are two conditions for rules rela ting to halal food in Brunei Darussalam, namely: 
 
i. The Halal Meat Act; and 
ii. The Halal Certificate and Halal Label Order 2005 
 
Both these legislative instrument s are available from the Brunei Darussalam Printing Office. They 
are not yet available online. However, the Go vernment is currently looking into this.  
 
• Regarding restrictions on beef and poultry, what  steps must foreign slaughterhouses (abattoirs) 
take in order for the Minister of Religious A ffairs to approve these products for importation into 
Brunei? 
 
Answer:  
 
Interest parties must obtain permission from the Depa rtment of Halal Food (Protection) and include 
the following:  
i. A letter requesting permission; 
ii. Twin forms A or B or C or D; 
iii. A profile of the firm/abattoir that intend s to export meat into Brunei Darussalam 
iv. Copies of certificates from the authorities in  their originating countries such as 
certificates showing that the country is free of contagious and easily communicable diseases such as avian flu, foot and mouth disease, mad-cow disease and the like; in accordance with the OIE. 
v. A valid slaughtering certificate for the abatto ir/slaughtering house that is applying. 
vi. Certificates showing accreditation such as HACCP , VHM, GMP, ISO, etc. that have been 
issued by the authorities in the country to the applying abattoir. 
 
The letter requesting permission to export halal meat  into Brunei Darussalam must be submitted to 
the Authority Issuing Board for Halal Import P ermits (Jawatankuasa Lem baga Mengeluarlan Permit 
Import Halal or LMPIH) and if approved, it will be s ubmitted to the Brunei Islamic Religious Council 
(Majis Ugama Islam Brunei or MUIB). If MUIB agrees with the endorsement of the abattoir by 
LMPIH, MUIB will instruct the Inspection Authority (JP) to inspect the abattoir. JP will give a report WT/TPR/M/196/Add.1 
Page 80  
 
  on its findings to MUIB. MUIB, upon satisfactory assessm ent of the applying abattoir’s report, i.e. the 
abattoir meets all the requirements to import meat  into Brunei Darussalam, will send two safety 
instructors to the abattoir at th e expense of the applying abattoir. 
 
• Are Malaysia and Australia the only WTO Members with approved abattoirs?  To date, how many 
foreign abattoirs has Brunei approved?  How long is the approval process?  
 
Answer:  
 No, Malaysia and Australia are not the only WTO Members with approved abattoirs.  
 
There are currently 6 WTO membe rs with approved abattoirs, namely: Malaysia, Indonesia, 
Australia, Saudi Arabia, China and India.  The length of approval is dependant on the peculiar ities of each application as determined by the 
Halal Board of Brunei Darussalam. 
 
• Will Brunei’s halal requirements allow for the use of  facilities that have been properly cleaned in 
accordance with Islamic requirements, if they ha ve been used once for non-halal foods?  If not, 
please explain.  
 
Answer:  
 
Brunei Darussalam will allow the use of facility or machinery that previously produced non-halal 
food to be used provided that the facility or machin ery has been cleansed acco rding to Islamic rites. 
 
• Does Brunei require all food processing plants in foreign countries to undergo site inspection as a 
condition for approval?  
 
Answer:  
 Brunei Darussalam does not require site in spections for food processing plants.  
 However, for ‘Brunei Halal
’ certification for food processing plants,  such plants must undergo site 
inspection in accordance with the Halal Standard (PBD 24:2007). 
 
• Do food ingredients like additives, preservativ es and coloring require Brunei’s religious 
authorities’ approval?  
 
Answer:   
If potential foreign exporters intend to seek ‘Brunei Halal’ certification from MUIB, then approval 
must be obtained from the religious authorities.   Otherwise, interested parties must  merely comply with the requirem ents under the Public Health 
(Food) Act under the Ministry of Health. 
 
State Trading 
According to the Secretariat Report (page 54 paragr aph 70), little information is available about the 
trading activities of state enterprises including the Ministry of Finance’s Department of Information 
Technology and State Stores, which handles rice imports , and we  could find no notifications to the 
Working Party on State Enterprises.  In light of the important role played by state enterprises in  WT/TPR/M/196/Add.1 
 Page 81 
 
 
  Brunei, we urge the government of Brunei to subm it these notifications.  Does Brunei have plans do 
so? 
Answer:  
Brunei Darussalam will look into updating its  outstanding notifications where appropriate.  
 
However, Brunei Darussalam understands that the ITSS is not a state trading enterprise as it does not 
meet the definition of a State Trading Enterprise under the WTO. The ITSS functions as a body to purchase and store rice and sugar for reasons of national food security.   ITSS is not given special and exclusive rights to purchase such items. There are no restrictions on 
importation of rice and sugar as businesses are allowed to import rice and sugar with a permit.  
 
Subsidies 
The Secretariat Report identifies several subsidy prog rams that appear to be notifiable under Article 
25 of the Agreement on Subsidies and Counterva iling Measures.  These include the Investment 
Incentives Order 2001, the Pioneer Status and Income  Tax Relief program, a nd other tax and tariff 
exemptions for companies investing in the Brunei -Indonesia-Malaysia-Philippines East Asian Growth 
Area (BIMP-EAGA).  The Secretariat's Report also notes that the only subsidies notification Brunei has submitted pursuant to Article 25 of the Agre ement on Subsidies and Countervailing Measures was 
in 1997.  What are Brunei’s plans for s ubmitting its next subsidies notification? 
Answer:  
Brunei Darussalam will look into updating its  outstanding notifications where appropriate.  
 
Intellectual Property Rights  
When does Brunei expect to implement the Pate nt Order of 1999 (page 62 paragraph 107 of the 
Secretariat Report)?  
 
Answer:   Brunei Darussalam has just received comments on it s Draft Patent Regulations from WIPO. The IP 
Division is currently taking the necessary steps to  finalise the Regulations with a view to 
implementing both the Draft Patent Order and Regulations in the near future.  
 
On copyrights and related rights (page 64 paragraph 114 of the Secretariat Report), what is the status 
of the amendments to the Copyright Order?  What  is Brunei’s projected timing for implementation? 
 
• Will the amendments contain provisions to addr ess enforcement against infringements in the 
digital environment and electronic commerce? 
• Are there plans to increase public awareness activities regarding the importance of IPR 
enforcement in the digital realm? 
• Is Brunei considering giving ex officio  authority to Police and Custom s officials to enforce against 
pirated works?  Providing ex officio  authority to law enforcement would remove the need for rights 
holders to participate in every case, which is not possible for many rights holders because of 
resource constraints, while allowing authorities to act against illicit goods. 
 WT/TPR/M/196/Add.1 
Page 82  
 
  Answer:  
 1. The amendments had been reviewed and discussed  amongst relevant agencies and it was decided 
that further review was needed to be done on certain other areas. Further comparison work with 
legislations from other countries are also to be carried out. 
 
2. Copyright infringements are actionable under the cu rrent law whether the con duct of the crime is 
done physically or through the digital environment. 
 3. AGC maintains continuous awa reness programs on the importance of IPR and will include such 
additions or amendments to its contents as appear necessary.   
 4.  Ex-officio authority is vested in the police und er the current law.  The police however would not 
normally act without a general or specific compla int / notice from the rights holder especially on 
the issue of pirated works.  This is due to the fa ct that such offences arise from infringements of 
licensing arrangements and agreements and affected  parties should be responsible for providing 
the police with necessary information and docum ents.  For e.g. where a rights holder gives 
adequate notice that their titles should only be obtained from their exclusive licencee in country X and no other, the police can then contemplate enforcement action against those ordering infringing copies.  The rights holder, representa tive or exclusive licencee who has authority to 
deal with infringement in Brunei Darussalam, w ill then be required to certify such infringing 
goods and appear in court to give evidence that thei r rights have been infringed.  On the issue of 
Customs officials, for e.g a rights holder may give a notice in writing to Customs, with sufficient 
security as may be necessary, to treat such a lleged infringing copies as prohibited goods, The 
rights holder can therefore rely on this and not have to be ever present in the country.    
 
Does Brunei intend to accede to the WIPO Internet Treaties? 
 
Answer:  
 Brunei Darussalam is currently considering the feasib ility of acceding to the WIPO Internet Treaties 
and hopes to accede in the near future. 
 
With respect to copyright and related rights (pag e 65 paragraph 119 of the Secretariat Report), what 
process should rights holders follow to invoke bor der enforcement measures to prevent import of 
infringing goods?  Is this info rmation available to the public? 
 Answer:   For copyright, the owner of the copyright may give a notice in writing to the Controller of Customs, 
with sufficient security as may be  necessary, to treat such allege d infringing copies as prohibited 
goods.    
This information on copyright and related rights is contained in the Copyright Order. A copy of the 
Order may be purchased from th e Government Printing Department and  the library of the Attorney 
General’s Chambers.   Such information has also been made available to requesting parties. 
 
With respect to criminal cases, wh at is the process for rights holders to follow in filing a complaint?  
Is this information available to the public?   WT/TPR/M/196/Add.1 
 Page 83 
 
 
  Answer:  
 Rights holders may lodge a complaint with the pol ice and file in required documents proving they 
own the rights alleged to have been infringed.  Due to evidential requirements on mens rea, prior 
notice of their rights would be important, such prio r notice can be done by adv ertisements in the local 
newspaper or notice to vendors. 
 This information is also contained in the Copyri ght Order. A copy of the Order may be purchased 
from the Government Printing Department and the library of the Attorney General’s Chambers.  
 
Such information has also been made available to requesting parties.  
How does Brunei prevent unauthorized uses of well-known marks on dissimilar goods?  (Per TRIPS Article 16(3), WTO members must prevent unauthor ized uses of registered, well-known trademarks, 
even if those uses are on goods or services that are dissimilar to the goods/services associated with the 
well-known mark if (1) the unauthorized use would suggest a false connection between the goods and 
the owner of the well-known trademark, and (2) th e use damages the trademark owner’s interests.) 
 
Answer: 
 Brunei Darussalam does not have specific provisions on ‘dilution’ of trade marks but the provisions 
on the protection of well-known trade marks can be  found in the Trade Marks Act (Cap 98), namely 
section  –   54.   (1) References in this Act to a trade ma rk which is entitled to protection under the Paris 
Convention as a well-known trade mark, including su ch a trade mark entitled to the benefits of the 
Paris Convention by virtue of the World Trade Organisation Agreement are to the trade mark of a 
person who –   (a) is a citizen of, is domiciled, ordinarily resi dent or has a right of abode in, a Paris Convention 
country or a World Trade Organisation country; or  
(b) is domiciled in, or has a real and effective i ndustrial or commercial establishment in, any such 
country   whether or not that person carries on business,  or has any goodwill, in Brunei Darussalam. 
References to the proprietor of such a tr ade mark shall be construed accordingly. 
 
(2) Subject to section 49, the proprietor of a trade  mark which is entitled to protection under the Paris 
Convention as a well-known trade mark is entitled to restrain by injunction the use in Brunei 
Darussalam of a trade mark which, or the essential part of which, is identical or similar to his trade 
mark, in relation to identical or similar goods or serv ices, where the use is likely to cause confusion.  
 
(3) Nothing in subsection (2) affects the continuation of any bona fide use of a trade mark begun 
before the commencement of this section.  As there is no specific legal provision that deals with the unauthorised uses of well-known marks on 
dissimilar goods, the owner of such a well k nown trademark may pursue civil action under the 
common law of ‘passing-off’ in cases of infringe ments of a well-known mark in dissimilar goods.  
 
Do the marks that Brunei has registered as certifi cation marks include marks that are geographical 
indications?  WT/TPR/M/196/Add.1 
Page 84  
 
  Answer:  
 Yes, they include marks that are geographical indications. 
 
Regarding intellectual property rights enforc ement and penalties (page 66 paragraph 125 of the 
Secretariat Report), how many criminal prosecutions have been undertaken due to offenses under the 
Trade Marks Act of 1999?  What types of penalties were imposed?  
Answer:  
 
Trademark infringement cases include the following– 
 
1996- 14 vendors were convicted  1997 – 2 vendors were convicted.  Another 2 we re not proceeded with because one did not 
have authority to take enforcement action & goods  were affirmed as genuine by the rights 
holder and the other had not registered their trademark in Brunei Darussalam. 
 1999 -  9 vendors had items seized which were la ter proved to be genuine and from an 
authorized distributor  
2000 – another complaint withdrawn as items were proven genuine 
 2001 – one complaint which was lat er withdrawn on mutual agreement 
 2003 – 5 vendors had items seized which were later proved to be genuine 
 
Statistics on penalties were not available but co mmon practice would involve the imposition of fines.  
 TRADE POLICIES AND PRACTICES BY SECTOR 
 
Agriculture 
 
Page 70 paragraph 15 of the Secretariat Report comme nts that "some agricultur al products, i.e., rice, 
sugar, and salt, are subject to import restrictions.”   The Secretariat Report also says “most of Brunei's 
rice is imported directly by the Department of  Information Technology and State Stores under a 
government-to-government contract from Thailand." 
 
• What specific restrictions are in place on these products?  Please provide a complete list of 
agricultural products facing such import restrictions.  
 
Answer: 
 
For rice and sugar, the restriction is importation of up to 10% of total import volume of each product. 
Salt is no longer an import restricted product.  A complete list of import restrictions and import licensing on agricultural pr oducts can be found in 
the WTO Secretariat Report, in Tabl e III.4 and Table AIII.2 respectively. 
 
• Are licenses required to import rice, sugar, and sa lt?  What is the procedure for obtaining such 
licenses?  Has Brunei included this informati on in its WTO import licensing notifications? 
  WT/TPR/M/196/Add.1 
 Page 85 
 
 
  Answer: 
 Brunei wishes to inform that approval permits are required for the importation of rice and sugar. 
These permits can be obtained from the Departmen t of Information Technology and State Stores 
under the Ministry of Finance. Salt is no longer an import restricted product. 
 
Page 70 paragraph 16 of the Secret ariat Report notes that imports of beef and poultry are subject to a 
"food balancing requirement,” a pparently adjusting imports to meet expected demand. 
 
• What is the process for determining import volumes?  Is the process public?  What ministry or 
agency makes the determination?  Is the decisi on published in a gazette or other public notice? 
 Answer:  The process for determining import volumes is determ ined by the Department of Agriculture (Ministry 
of Industry and Primary Resources) and is based on th e monitoring of per capita consumption and the 
trend in supply and demand. Factors affecting the regular consumption include  festive seasons (such 
as religious holidays and state events) and environmen tal factors (leading to disruptions in crop or 
livestock and poultry production).  
 
Forestry  
Page 70 paragraph 18 of the Secretariat Report ment ions that illegal logging appears to be increasing 
near border areas.  We know Brunei attaches grea t importance to conservation and sustainable 
forestry management.  We would welcome an upda te on Brunei’s own efforts to curb illegal logging 
and its associated trade, as well as the government’s cooperative efforts with its neighbours, including 
the tri-national effort to protect the Heart of Borneo. 
 
Answer: 
 A national Committee involving various enforcemen t agencies including the Forestry Department, 
Royal Brunei Police Force and the Royal Brunei Ar med Forces was set up to  oversee the issue of 
illegal logging and its associated trade. Amongst meas ures identified to address the issue is through 
the enhancement of bilateral cooperation and regional e fforts under the Heart of Borneo Initiative. As 
this Initiative is still in the early stages of implem entation, participating countries are still in the 
process of drafting National Project Implementa tion Frameworks before bilateral/sub-regional 
initiatives can be undertaken. 
 
Services 
 
Page 78, paragraph 49 of the Secretariat Report:  Brunei recognizes the importance of services for economic growth and diversifica tion and has developed the Service Hub for Trade and Tourism 
(SHuTT) to promote priority services sectors. 
 
• Please describe the substance and operation of th e SHuTT program.  What is the basis upon which 
Brunei determines which of its services sectors is  a priority?  How does Brunei promote priority 
services sectors? 
 
Answer: 
 
[ Brunei Darussalam will provide this information at a later date. ]  WT/TPR/M/196/Add.1 
Page 86  
 
  • Brunei has identified tourism as a priority sector a nd has set a target of 250,000 tourists by 2010.  
How does Brunei intend to reach this goal?  What  further actions is Brunei taking to develop 
related industries such as transport,  communications, and banking services? 
 
Answer: 
 
Our Government Report (see para. 73, page 17) ha s identified the steps to achieve the said-goal. As 
mentioned previously, transport, communications and  financial services form the niche sectors which 
Brunei would like to develop, and hence the acti ve promotion by the BEDB has been undertaken. 
 
• Is Brunei considering additional commitments in the GATS as a way to reflect the importance of 
services to the diversification and growth of Brunei’s economy? 
 
Answer: 
 In light of the importance of services, Brunei is  positively considering offering a revised set of 
commitments in GATS. 
 
Page 81, Paragraph 61 of the Secretariat Report.   The Secretariat Report mentioned that Brunei had 
hoped to harmonize Islamic and conve ntional banking regulations by 2007.  Could Brunei inform us 
of the current timeline to complete this harmonizat ion?  Which regulations require harmonization?  
What is the status of the new Islamic Banking Order 2007?  Answer:  The introduction of the Islamic Banking Order,  2007 has been delayed to 2008 due to unforeseen 
technical circumstances.   
Regulations that require harmonization includes am ongst others capital and prudential regulations 
which will complement the existing Banking Order, 2006.    The draft Islamic Banking Order 2007 is still being fina lized by the legislative drafting division of the 
Attorney General’s Chambers.  
 
 
COLOMBIA
 
 
Report by the Secretariat, WT/TPR/S/196  
 
Questions:  
 
V. TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES 
 (4) F
OREIGN INVESTMENT REGIME  
 
(i) Legislative and institutional framework and investment procedures  
 
"45.  …The BINA (Brunei Industrial Development Au thority) has developed several industrial parks 
near the Muara Port and in other parts of Brunei, with infrastructure to facilitate small and medium-
sized enterprises." 
  WT/TPR/M/196/Add.1 
 Page 87 
 
 
  • What is the difference between the industrial estates, industrial parks and export processing 
zones? 
• What kind of incentives are granted to ente rprises setting up in the industrial estates? 
• What is the annual budget allocated by the Gove rnment of Brunei for incentives granted to 
the industrial estates? 
• Can national and local enterprises from Brunei set up in the industrial estates?  If so, do they 
receive the same incentives as foreign en terprises established in such estates? 
• Can enterprises from any sector set up in the industrial estates?  
 
Answer: 
 The term industrial parks/estates are used int erchangeably. There are currently no export processing 
zones in Brunei.   
Details of the relevant tax incentives may be f ound under the Investment Incentives Order 2001.  
 Other incentives provided by MIPR: facilities provid ed by industrial, agriculture and fisheries sites. 
Mainly in the form of infrastructure facilities as incentives such as financing (in the form of 
government guaranteed loans) and subsidise feed & f ertiliser are only available to local businesses 
(including JVs with foreign companies). 
 
Yes, national and local enterprises from Brunei can set up in the industrial parks/estates and will receive the same incentives as foreign enterp rises established in such parks/estates. 
 Priority listing for industrial parks/estates is gi ven to manufacturing and processing. Other sectors 
are as mentioned in the preferred list issued by  the Ministry of Industry and Primary Resources. 
 
"47.  Additionally, the BEDB (Brunei Econom ic Development Board) announced significant 
incentives and loans to encourage other investment projects from abroad.  International consultancies 
have confirmed the growth potential for hospitality and tourism, focusing on eco-tourism, sports and 
medical tourism;  financial services, aiming at high-end, niche investment management services and 
asset fund management;  transportation and logis tics primarily focusing on aircraft maintenance 
services;  and business services, concentrating on  software development and business process 
outsourcing."  
• What are the BEDB incentives mentioned in this  paragraph for other investment projects from 
abroad? 
 
• Do any tax exemptions other those listed in Ta ble AIII.3 apply to the investments mentioned 
in this paragraph? 
 
• Will the interest on the loans announced by the BE DB to encourage other investment projects 
from abroad have special rates or rates s ubsidized by the Government of Brunei? 
 
Answer: 
 BEDB utilises The Investment Incentives Order 2001, as  referred to above. It includes tax exemptions 
(as those listed in Table AIII.3), deductable allow ances, and import duties depending on the industries 
envolved.  
 WT/TPR/M/196/Add.1 
Page 88  
 
  VI. TRADE POLICIES AND PRACTICES BY MEASURE 
 (2) M
EASURES DIRECTLY AFFECTING IMPORTS  
 
(viii) Standards and sanitary  and phytosanitary measures  
 
"47.  Other sanitary and health restrictions ar e maintained under the Poisons Act and the Misuse of 
Drugs Regulations, which are enforced by the Pharma ceutical Enforcement Services, in the Ministry 
of Health.  This includes regulation of all imports  and exports of pharmaceuticals, chemicals, agri-
chemicals, pesticides, etc. in collaboration with Customs … " 
 
• How or from where may the regulations men tioned in this paragraph be obtained? 
• Are these regulations in English? 
• How or from where may the plant regulations  and animal regulations mentioned in 
paragraphs 44 and 45 of this section be obtained in English? 
 
Answer: 
 
Poisons Act and Misuse of Drugs Regulations are available on the Department of Pharmaceutical 
Services website at:  http://www.moh. gov.bn/medhealthservices/pharmacyservices.htm 
 The plant regulations and animal regulations can be obtained from the website of the Department of 
Agriculture, Ministry of Industry and Primary Resources at http://www.agriculture.gov.bn/ 
 
Both these Acts are available in English. 
 
(x) Import-related operations of state enterprises 
 "61.  Brunei has not notified any state-trading enterprises 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." 
 
• In addition to rice, sugar and salt, what ot her agricultural and non-agricultural products 
require a permit for importation into Brunei? 
  
Answer: 
 
A list containing agricultural and non-agricultural products requiring an import permit can be found 
under Table AIII.2 (page 109) of the Secretariat Report.   Brunei Darussalam is also able to provide a lis t of Import Licenses and Permits issued by the 
Ministry of Industry and Primary Resources (attached as Annex 1).  
 
These two lists are non-exhaustive, however, as unfort unately due to time constraints Brunei is unable 
to furnish Colombia with a list from the other Ministries/agencies.   Brunei Darussalam would also like to take this opportunity to clarify that the Department of 
Information Technology and State Stores (ITSS) is no t a state trading enterprise as defined under the 
WTO.   WT/TPR/M/196/Add.1 
 Page 89 
 
 
  VII. TRADE POLICIES BY SECTOR 
 (5) S
ERVICES  
 
(ii) Financial services  
"63.  The Government established the Brunei Inte rnational Financial Centre (BIFC) in 2000 to 
diversify financial services in Brunei and to est ablish Brunei as an off-shore banking and trading 
centre for the region offering both conventional and Islamic financial services.  The legislation to 
accompany the formation of the BIFC sought to  introduce measures against money laundering 
activities and to bring Brunei's standards up to international standards, thereby improving 
transparency and attracting companies to the BIFC … "   
• In addition to the Money Laundering Order,  has Brunei adopted any other measures to 
counteract this practice? 
• What is the substance of the Money Laundering Order? 
 
Answer: 
 Yes.  They are: 
• Criminal Conduct (Recovery of Proceeds) Order, 2000 
• Anti Terrorism Order, 2002 
• Establishment of Financial Intelligence Unit in February 2007 
• Issuing guidelines on KYC/CDD to Financial Institutions 
• Issuing guidelines on STR and STR forms 
 
The Money Laundering Order is an order to prevent the use of financial system for money laundering. 
 WT/TPR/M/196/Add.1 
Page 90  
 
  Annex 1 
 
Import Licenses & Permits Issued by  
the Ministry of Industry and Primary Resources 
 
# Product Document Issuing Authority 
i. Live & Fresh Fish Import Permit  
 
Conditions: 
1 Import permit per consignment valid 
for 1 month   Live fish -  need health certificate for 
exporting countries Department of Fisheries 
ii. Cement Import Permit  
 
Condition (sample):  
Importers must be registered with BINA 
1 permit per consignment valid for 2 
months BINA 
iii. Artesian or Drinking Water Import Permit 
 
Condition (sample):  
Importers must be registered with BINA 
1 permit per consignment valid for 2 
months BINA 
iv. Plant and Plant Products 
(Fruits, Vegetables, Flowers, 
flower-cuttings, seeds) Import Permit 
 
Conditions: 
Importers must be registered with the 
Department of Agriculture 
Phytosanitary Certificate Department of Agriculture 
 
(Procedures as attached) 
 
Chapter 43 – Agricultural Pests and Noxious Plants Act 
 
Note : DoA is in the process of drafting the 
plant quarantine act. 
 
Note : As for protected plant species – CITES Regulations 
Wild Flora and Fauna Regulations 2007 
v. Live Animals Import Permit 
 
Veterinary Health Certificate issued by  
veterinarian authorised in the country 
concerned within 7 days before departure Department of Agriculture 
 
(Procedures as attached) 
 
Chapter 47 – Subsidiary Legislation ‘Quarantine and Prevention of Disease (Animals) Regulations’ 
vi. [Non-Halal Meat – Pork] Import Permit 
 
Health Certificate from the exporting 
country Department of Agriculture 
 
(Procedures as attached) 
 Chapter 47 – Subsidiary Legislation 
‘Quarantine and Prevention of Disease 
(Animals) Regulations’ 
vi. Meat and Meat Products  (Halal 
Meat) 
(Fresh, Frozen or Chilled)  (Refer to Ministry of Religious Affairs / 
Syariah Department / Lembaga Mengeluar 
Import Permit Daging Halal) 
vii. Processed Food  (Refer to MoH) 
 
(attached info) 
viii. Inputs from Department of 
Forestry  Import/Export Permit per consignment 
per month Forestry Dept. 
Import for all forest products = $20 per 
permit Export for all value added product (semi and finished products) = free 
 
AP = $20 per permit/month/lorry 
AP = $40 per permit/month/barge  WT/TPR/M/196/Add.1 
 Page 91 
 
 
  JAPAN  
 
The Government Report (WT/TPR/G/196) 
 
V. TRADE POLICY FRAMEWORK 
 
(2) S ERVICES  
 (Question 1: page 8, paragraph 23) 
(Secretariat Report: page 50, paragraph 50)  
Could Brunei explain the reason why Brunei Darussal am has not made liberalization commitments in 
the construction sector? 
 
Answer: 
 
At the moment only Government projects in the Construction sector are regulated. However projects 
under non-Government sectors are not regulated.  
 
Brunei Darussalam has made commitments in secto rs in which it has identified as a priority for 
liberalization. Any future liberalization would be  dependant on the outcome of negotiations.  
 
(Question 2: page 8, paragraph 23) 
 (1) In such sectors as (v) Financial (Insurance and Insurance related services) and (vi) Other 
Financial Services, please provide specific cases where Brunei Darussalam has made commitments in 
its EPAs/FTAs which is more liberal than its  offer made by Brunei under the DDA services 
negotiations.  
(2) If it is the case, please explain these commitments precisely. 
 
Answer: 
 
No, except under the ASEAN Framew ork Agreement on Services (AFAS). 
 
The Secretariat Report (WT/TPR/S/196)  III. TRADE POLICIES AND PRACTICES BY MEASURE 
 
(2) M
EASURES DIRECTLY AFFECTING IMPORTS  
 
(i) Customs procedures 
 (Question 3: page 34, paragraph 9-10) 
 
Japanese companies operating in Brunei Darussalam  have reported to the Japanese Government that 
as Brunei Darussalam does not have any bonded areas,  companies will be required to pay additional 
fees per night unless concerned companies do not pick up their imported goods within three days after 
notification of arrival at ports.     
(1) In light of facilitation of customs procedur es, please indicate whether the Government of 
Brunei Darussalam plans to establis h bonded areas and bonded warehouses. 
 WT/TPR/M/196/Add.1 
Page 92  
 
  According to the Secretariat report, the Gove rnment of Brunei Darussalam promotes the e-
government initiative aiming to provide an infrast ructure using IT as a platform for paperless 
transactions. 
  
(2) Please indicate its expectations to introduce an electric system into Customs procedures in 
Brunei. 
 
Answer: 
  
(1) Brunei Darussalam is currently in the process of establishing such entities. 
 
(2) Brunei Darussalam recognizes the benef its of using an electronic system. 
 Brunei is in the process of establishing several projects which incorporates its e-Government 
ambitions such as the National Single Window, the ASEAN Single Window, E-Customs and Online 
Issuance of Certificate of Origin.   
As such, Brunei Darussalam welcomes any technica l assistance offered by WTO Member Countries.  
 (iii) Applied tariffs  
 
(Question 4: page 38, paragraph 21) 
 Japan understands that new legislati ons became effective on January 1
st 2008, in order to eliminate the 
customs tariffs of automotive products, tobacco an d alcohol beverages, while at the same time, 
imposing commodity taxes at the same rate as the cu stoms tariffs to these goods. Japan is of the view 
that automotive products are one of the major im port goods and regulations introduced which are 
mentioned above may have a significant impact on the trade policy of Brunei Darussalam.  
 
In light of transparency, please provide detailed information on this regulation, as well as an explanation of the criteria and background of this regulation.  
 
Answer: 
 
The elimination of custom tariffs is to fulfill Br unei Darussalam’s commitments in its bilateral and 
regional Free Trade Agreements, as well as in the multilateral arrangements. 
 The fiscal policies that Brunei Darussalam have im plemented are non-discriminatory and consistent 
with our WTO obligations. 
 
(4) M
EASURES AFFECTING PRODUCTION AND TRADE  
 (i) Legal framework for business 
 
(Question 5: page 54, paragraph 71, 73) 
 
According to the Secretariat report, at least half the directors of a company incorporated in Brunei 
must be either nationals of Brunei or ordinarily resident in Brunei under the Companies Act (Cap 39). 
 
(1) Does the Government of Brunei thin k this regulation is still necessary? 
 
(2) Please explain the rationale of this regulation. 
  WT/TPR/M/196/Add.1 
 Page 93 
 
 
  Answer: 
 This policy is reflected under section 138(2) of th e Companies Act (Cap. 39). The rationale of the 
provision has always been to secure the presence of a local director who will be accountable and 
answerable for the company’s matters and liabilities.  This in turn raises  the credibility of the 
investment and investor. Therefore, Brunei Darussa lam does think that this regulation is still 
necessary. 
 
(vii) Intellectual property rights 
 
(Question 6: page 64-65, paragraph 118) 
 Japanese companies operating in Brunei have report ed to the Japanese Government that they are 
suffering from an extremely large number of pi rated goods in such products as maintenance 
equipment. According to the secretariat report, th e Government of Brunei Darussalam makes efforts 
to strengthen enforcement for protecting intellectual property rights. 
 
Please explain specific measures taken by the Gove rnment of Brunei Darussalam against pirated 
goods.  Answer:  Brunei Darussalam has enacted the relevant legislat ions on which rights hol ders can avail themselves 
in cases where their rights had been infringed.  
 
On the issue of pirated goods, the Royal Brunei Police Force has ex-officio powers to take action, 
however as limited number of rights holders are presen t in Brunei Darussalam, a complaint is the 
usual basis for action as it indicates that the particular rights holder will be present to provide technical assistance in identifying where infringe ments have occurred and appearing in court as the 
complainant during court proceedings.   
Border enforcement measures are also available for infringements under Copyright Order. The owner 
of the copyright may give a notice in writing to the Controller of Customs, with sufficient security as 
necessary to treat such alleged infri nging copies as prohibited goods.  
  The complaints of IP rights holders as well as  their presence and cooperation with the relevant 
enforcement agencies are needed to ensure that measures can be taken against pirated goods. 
  Perhaps Japan could clarify on the ‘extremely large number of pirated goods in such products as 
maintenance equipment’. In the present example, th e appropriate procedure to follow is for the 
companies to lodge complaints to the police, provid ing information to them as well as other relevant 
agencies regarding the pirated goods that are damaging their business.  Such complaints and 
information will be important in the assessment of  the proper enforcement action to be taken as any 
resulting enforcement action would need to conform to the laws as well as secure evidence that can be 
used for prosecution. 
  WT/TPR/M/196/Add.1 
Page 94  
 
  CHINESE TAIPEI
 
 
REPORT BY BRUNEI DARUSSALAM (WT/TPR/G/196) 
 V. TRADE POLICY FRAMEWORK 
 
(3) I
NVESTMENT  
 
(Page 9, paragraph 27)  
As indicated in the Report, the 2003 revised  and amended Brunei Econom ic Development Board 
(BEDB) Act strengthens the BEDB's powers for the promotion of foreign direct investment, 
development of joint ventures in strategic sectors an d the provision of efficient services to investors. 
Subject to the provisions of the Act, the BEDB is now also a corporate body with perpetual succession 
and a common seal of power.  
 
Please could Brunei elaborate further on the status of the BEDB:  
 (i) Is it an agency of the Brunei government? 
 
(ii) What is the nature and validity of BEDB’s re lated measures, including agreements entered 
into with foreign investors? Should these be vi ewed as measures of the Brunei government? 
 Answer:  Under the BEDB Act, the BEDB is a corporate body with perpetual succession and a common seal 
with power, subject to the provisions of this Act,  to acquire and dispose of property, both movable and 
immovable, and may sue and be sued in its cor porate name and perform such other acts as bodies 
corporate may by law perform.  Section 9 of the BEDB Act provides that the BEDB ma y enter into contracts with other persons on 
behalf of the Board, for the carrying into effect the purpose of the Act. All contractual acts and 
measures taken by BEDB are binding on the BEDB. 
 
(4) I
NTELLECTUAL PROPERTY RIGHTS  
 
(Page 10, paragraph 31)   
The Report states that Brunei’s enforcement of in tellectual property rights is based on complaints 
lodged by the registered owner.  
 Since Brunei has acceded to the Be rne Convention for the Protection of Literary and Artistic Works, 
which asks for no formal conditions to possess a co pyright, does the above imply that copyright 
holders are excluded from any remedy for infringeme nts if they are not on the Brunei government’s 
registry?   Answer:  
 
No, copyright holders are not excluded from any remed y for infringements by reason of not being on 
a ‘registry’ of copyright. There is no requirement for registration under the Copyright Order.  
 The statement underlines the fact that the enfo rcement of IP rights can only be successfully 
implemented with the presence and assistance of ri ght holders, be it in the form of the initial  WT/TPR/M/196/Add.1 
 Page 95 
 
 
  complaint of infringement, providing a notice of the ownership of the right as well as providing 
documentary and evidentiary information n ecessary for the prosecution of any cases. 
 
(6) G OVERNMENT LINKED COMPANIES  
 
(Page 11, paragraph 37)   
We note that Semaun Holdings was established as a domestic investment and trading arm of the 
government, and has been placed under the jurisdiction of the Ministry of Industry and Primary Resources. Its mission appears to be to develop Brunei’s strategic industries. 
 
(i) We understand that there is a successful jo int venture in aquaculture between Semaun 
Holdings and one of our investors. Could we please have information about other successful 
joint ventures with foreign investors? 
 (ii) We are also interested in learning about Se maun Holdings’ key investment plans, both short- 
and long-term.  
 (iii) Please could Brunei also inform us of the limits on foreign equity holdings in such joint 
ventures? 
 
Answer:  
(i) Semaun Holdings Sdn Bhd currently has joint ventures with partners from Singapore, 
Canada, Sweden and Australia.  
 (ii) Short term: Enter into and develop joint ventures in areas where the private sector is not able 
to penetrate. Long term: Divesture of those companies. 
 
(iii) Limits on foreign equity holdings are inlin e with those currently re quired by the Government 
subject to the sector concerned. 
 
V. SECTORAL POLICIES AND DEVELOPMENT  
 
(7) T
ELECOMMUNICATIONS  
 
(Page 15, paragraph 59) 
 
As indicated in the Report, DST Communications Sdn Bhd (DSTCom), was established in 1995 using 
the GSM platform, and B-Mobile Communications  Sdn. Bhd (B-Mobile) was established in 2005 
using the 3G (W-CDMA) platform. These two comp anies are the only providers using the GSM or 
W-CDMA platforms. (the  GSM platform is mainly used for voice services; 3G is mainly for mobile 
data services)  (i) Will the Authority for Info-Communication Technology Industry (AITI)be issuing more new 
licences for GSM and 3G respectively to bring in more competition? 
 (ii) Is there any plan for issuing Wireless Broadband Access services (e.g. WiMAX)? If so, will 
the WBA licence be available to foreign investors? 
 WT/TPR/M/196/Add.1 
Page 96  
 
  Answer:  
 (i) Yes, provided that it is commercia lly viable and meets the market needs.  
 (ii) Yes, AITI is considering issuing WBA li censes. These WBA licenses will be available to 
foreign investors that partner with one of the local operators as explained in the AITI Operational 
Handbook.  REPORT BY THE WTO SECRETARIAT (WT/TPR/S/196) 
 
II. ECONOMIC ENVIRONMENT 
 (2) R
ECENT ECONOMIC DEVELOPMENTS  
 
(iv) Structural policies: diversification of the economy  
(Page 11, paragraph 29) 
 
Despite Brunei being blessed with considerable na tural oil and gas resources, the government, being 
prudent and long-sighted, has launched several  initiatives to place the economy on a path to 
sustainable growth. 
 In order to persuade our manufacturers to consider Brunei as an ideal place to invest for the purposes 
of expanding the sale of their products to the Middl e East market, could Brunei please provide details 
of incentives offered to foreign investors, e.g. in  the acquisition of land, and in relation to labour 
policies and financial incentives. 
 
Answer: 
 
The Investment Incentives Ord er 2001 administered by the Ministry of Industry and Primary 
Resources offers investment incenti ves in the form of tax exemption under the following heading:  
• Pioneer Industries 
• Pioneer Services Companies 
• Post-pioneers Companies 
• Expansion of Established Enterprises 
• Expanding Service Companies 
• Production For Export 
• Export For Service 
• International Trade Incentives 
• Foreign Loans For Productive Equipment 
• Investment Allowances 
• Warehousing and Servicing Incentives 
• Investment in New Technology Companies  
• Overseas Investment and Venture Capital 
• Incentives Other Incentives U nder The Income Tax (CAP 35)   
 
(Page 11, paragraph 31) 
 We note from the Report that, despite some privatiz ation in several key sectors of the economy, for 
example oil and gas, there continues to be a strong government presence in the economy.  The 
government is the largest employer in Brunei a nd has large shareholdings in key oil and gas 
companies.  WT/TPR/M/196/Add.1 
 Page 97 
 
 
   
It would be appreciated if Brunei could please explain how the government lessens or deals with situations in the oil and gas sector where compe tition may be hindered by the presence of state-owned 
monopolies? 
 
Answer:  There is no state owned monopoly in the oil and gas sector as there are several multinational 
companies in Brunei Darussalam, such as Brune i Shell, Total, BHP Billiton, Mitsubishi Corp., 
Conoco Phillips.  Brunei Darussalam also refers Ch inese Taipei to para. 26 page 72 of the WTO Secretariat report 
which highlights that two international consortia  (one led by Canada’s Loon Energy and another led 
by UK-registered Valiant International Petroleu m) have also been awarded exploration blocks in 
Brunei thus indicating that there is co mpetition in the oil and gas sector.  
 (5) 
OUTLOOK  
 
(Page 17, paragraph 43)  
We also find it difficult to obtain timely trade and economic data from Brunei, though updated 
statistical data plays an important role in the investors’ decision-making process.  
 Does the Brunei government have any plans to improve the efficiency of its provision of economic 
and trade data?  Given today’s global use of the In ternet as a primary source of information, does 
Brunei have plans to include more economic statisti cal data on its official website in the future? 
 Answer:  Please refer to the answer to Question 2 from Canada.   
III. TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES 
 
(4) F
OREIGN INVESTMENT REGIME  
 
(Page 29, paragraph 43) 
 
As indicated in the Report, foreign investment is open except in restricted sectors in which the 
Government is the major provider of services, such  as the mass media, telecommunications, posts, 
energy and utilities.  
(i) The Brunei government has opened many industries to foreign investment, but not the 
telecommunications industry.  In line with th e trend toward telecoms deregulation, is the 
Brunei government preparing to open this sector to foreign investment? 
 
(ii) Is Brunei able to describe to us at this stage what are likely to be the conditions, the timeline, 
and the ceilings to such foreign investment? 
 Answer:   
The telecommunications sector in Brunei is open to foreign investment. If foreign providers wish to 
invest in the Brunei market, they may do so by ac quiring equity in the existing providers through the 
course of normal commercial negotiations. WT/TPR/M/196/Add.1 
Page 98  
 
  As per AiTi’s published Operational Handbook, the maximum allowable foreign equity participation 
in the telecommunications sector is 50%.   (Page 31, Box II.2) 
 
As indicated in Box II.2, “… investors enter in to a Cooperation Agreement with the BEDB.  In 
signing the agreement, the BEDB helps the investor in securing incentives, utilities, and 
infrastructure.  The investor commits to agreed quantifiable and qualitative undertakings on a best 
endeavours basis in such areas as employment, transfer  of technology, local participation, promotion 
of local SMEs, spin-offs, and community development.”  
 
Please could Brunei elaborate further on whether, should BEDB default on the agreement, 
responsibility for non-performance could be attribut ed to the Brunei government and the relevant 
dispute resolution process provide d by the Brunei government? 
 
Answer:  
 As provided by the BEDB Act, the BEDB may enter in to contracts and may be sued and be sued in its 
corporate name. All contractual acts and meas ures taken by BEDB are binding on the BEDB. 
Resolution of Disputes would be governed by the contractual agreement. 
 In the event of dispute or disagreement, the BED B will meet with investo rs to resolve the issue. 
Failing to reach a consensus on the way forward, either party is allowed to refer the issue for 
arbitration in accordance with the Rules of Arbitr ation of the International Chamber of Commerce. 
The arbitration tribunal shall consist of a single arbitrator  appointed by agreement between the 
parties. The place of arbitration shall be in Sing apore and the language of arbitration shall be in 
English.  Both parties agreed that an award of determina tion by any duly appointed  arbitrator in any 
arbitration proceedings pursuant to this shall be conclusive and binding upon it and may be enforced 
in any Court of competent jurisdiction. Both par ties also agreed where possible to continue perform 
their obligation under the Cooperation Agreement in relation to other subject matters which are not 
in dispute or in disagreement pending resoluti on of the aforesaid dispute or disagreement. 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE  (2) M
EASURES DIRECTLY AFFECTING IMPORTS  
 
(vii) Import prohibitions, restrictions, and licensing 
 
(a) Import prohibitions 
 
(Page 44, paragraph 33)   
As indicated in the Report, the Government of Brunei maintains import prohibitions on a limited 
number of products, including opium, indecent and obscene printed  
matter, firecrackers, and vaccines from us. 
 (i) Would Brunei please provide further details of the regulations on the import of vaccines to 
Brunei and the main reasons why it prohibits  the import of our vaccines in particular? 
 
(ii) Furthermore, if we fulfill all the requirements on vaccine imports, will the Government of 
Brunei consider removing this ban?   WT/TPR/M/196/Add.1 
 Page 99 
 
 
  Answer:  
 At present only vaccines which are manufactured in  countries with “Good Ma nufacturing Practice” 
(“GMP”) and which are authorized by the Ministry of Health are allowed for importation. 
 
Brunei Darussalam is in the process of implementi ng a ‘Drug Registration’ system and any country is 
welcome to submit their registration once this system has been set up. 
 
(3) M
EASURES DIRECTLY AFFECTING EXPORTS  
 (ii) Export prohibitions, restrictions, and licensing  
(Page 53, paragraph 64)  
 
As indicated in the Report, consumer prices for rice and sugar are subject to ceilings, and export 
restrictions appear to be intended to ensure adequate domestic supply. 
 
(i) We should be grateful for more details on how  the Brunei government sets the price ceilings 
for rice and sugar.  
 
(ii) Will Brunei consider liberalizing the rice or sugar market in the future? 
 
Answer:  
(i) The price ceiling for rice and sugar at present is controlled by the Ministry of Finance based 
on recommendations made by the Department of Information Technology and State Stores. The 
determination on pricing is gen erally made by taking into account costs associated with importing 
these commodities as follows:-  
• Supplier’s variable costs 
• Supplier’s administration costs 
• Safety stock management cost 
• Packaging cost 
• Surveyor’s inspection cost 
• Export handling expenses 
• Administration fee charged to the government 
• Insurance 
• Freight 
• Transportation from Muara to ITSS warehouse 
 (ii) Any consideration for liberalization woul d be entirely dependant on any changes in policy 
concerning food security, i.e. depending whether conditions on national food security have become 
more favorable.   
(4) M
EASURES AFFECTING PRODUCTION AND TRADE  
 (v) The public sector and private investment 
 (b) Corporatization and privatization 
 WT/TPR/M/196/Add.1 
Page 100  
 
  (Page 59, paragraph 95)  
 
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 Ai Ti, responsible for regulating the local ICT industry. In addition, 
the government partially privatized certain services,  such as Internet access and mobile telephony in 
2006.  
 
(i) In line with the trend toward telecom deregul ation, is the Brunei government preparing to 
open the telecom sector to foreign investment, a nd, if so, what are likely to be the conditions, 
the timeline, and the ceilings to such foreign investment?  
 
(ii) Does the Brunei government have other practical  privatization goals in areas other than 
telecommunication services, and, if so, will there be any limitations placed on foreign investors during the privatization process? 
 
Answer: 
 (i) Please refer to the answer to the question on page 5: II. TRADE POLICY REGIME: 
FRAMEWORK AND OBJECTIVES (4) FOREIGN INVESTMENT REGIME. 
 (ii) Please refer to the answer to Question 13 from India’ s first set of questions. 
 
(vii) Intellectual property rights 
 
(d) Copyright and related rights  (Page 63, paragraph 113)  
As indicated in the Report, Brunei grants copyright to published works for a period of 25 years from 
the year of the first publication.  
 
We would appreciate clarification from Brunei as to whether this means that “all types” of published 
works are granted copyright for such a term.  If so, we wonder how the term of 25 years can be 
consistent with Article 7 of the Berne Convention (incorporated into TRIPS) and Article 12 of the 
TRIPS Agreement, both of which provide for several types of works to have copyright protection for 
50 years from the year of their authorized publication or production?  
 
Answer: 
 
Publication generally means the issue of copies of the work to the public: §178(1). This definition is 
given in respect of all works in which copyright subsists. Thus all types of published works are 
granted copyright protection i.e. life of the aut hor + 50 years. However, copyright in typographical 
arrangement of a published edition expires at the end of 25 years: §17.  
IV. TRADE POLICIES BY SECTOR 
 (3)
  O IL AND GAS SECTOR  
 
(ii) Oil and gas industry 
 (a) Petroleum refining and other downstream industries. 
  WT/TPR/M/196/Add.1 
 Page 101 
 
 
  (Page 75, paragraph 33)  
 
The Report indicates that the government of Brunei is keen to encourage investment in upstream and 
downstream investment activities. 
 
It would be appreciated if Brunei could please elaborate further on the following: 
 
(i) How does the government promote such investme nts? Are there any incentives or rewards for 
foreign investors in this sector, and, if so, what are they? 
 (ii) Please provide us with details of the pro cedures and contact in formation regarding 
applications for investment in the oil and gas sector.  
 (iii) Could we please be informed of any plans to modify the application procedure to make it a 
more transparent mechanism, such as the introduction of open tenders for upstream 
exploration? 
 
Answer: 
 (i) Investments in activities categorized as havi ng pioneer status would receive generous 
incentives in the form of tax holidays etc. 
 (ii) Upstream exploration – invitation is done throug h open invitation with the conditions for the 
submission of bids clearly provided. 
 
For non-exploration investment – interested parties may contact the Petroleum Unit for advice etc. 
 (iii) Open tendering for upstream exploration is already being practiced.   
 
(Page 75, paragraph 35)  
 As indicated in the Report, Petroleum Brunei has c hosen to award private companies the exploration 
rights for the blocks it controls.   
Could Brunei please provide us with details of Petr oleum Brunei’s concrete conditions or reviewing 
criteria used in the process of issuing or approvi ng exploration rights to foreign investors? 
 
Answer: 
 The main criteria and conditions that would be used  in assessing the bids received from the oil 
companies are provided in the documents with the Invitation to Bid. This includes among others the 
proposed minimum work programme i.e. commitmen t as to expenditure and number of exploration 
wells etc.  
  
INDIA
 
 
1. The Para 17 of the Brunei’s Report states th at in 2006, its economy improved, as it grew by 
5.1% compared to 2.7% in 2001.  GDP growth was largely due to positive developments in the 
hydrocarbon, financial and private services sectors.  The growth rate for the next five years is 
expected to be within the range of 2 to 4%.  We  request Brunei to share detailed composition of the 
GDP growth and %age  contribut ion of each sector to the GDP. WT/TPR/M/196/Add.1 
Page 102  
 
  Answer: 
 Please refer to page 1 and 2 of the Trade Poli cy Review Report by WTO Secretariat.  For more 
information of GDP figures, please visit the De partment of Economic Planning and Development’s 
website www.depd.gov.bn. 
 2. According to Para 38 of Brunei’s report, Semaun Holdings has a policy to divest of a 
company once the company is profitable and the G overnment has recovered its initial investment. 
Since commencing operations, Semaun Holdings has st eadily been building up its portfolio of joint 
ventures and linked companies.  However to date it has not divested any companies due to the failure 
of these companies to meet the cr iteria for divestment. Further, Para 14. of the Secretariat report 
mentions that relatively limited information is available on Semaun's contribution to GDP or its 
annual accounts, underlining a certain lack of tran sparency and public accountability in government 
policies. We request the delegation of Brunei to provi de detailed information on if the investments of 
Semaun Holdings have not been profitable to divest , then what specific step  with precise timelines the 
government proposes to take to make them profitable?  
Answer: 
Brunei Darussalam acknowledges th e challenges facing these companies and as such is planning to 
conduct a review of the performance of Sem aun Holdings’s subsidiary companies which are no 
longer viable.  
 
3. Para 51 of Brunei’s report acknowledges that  ready made garments constitute the third 
biggest export after crude oil a nd liquefied natural gas. Recently, the textiles and clothing sector 
industry has seen a decline. The number of compani es in operation in this industry has fallen from 
25 companies to merely 11. We would appreciate Brun ei sharing with us its plans to strengthen this 
industry to compete on a global scale.  
 
Answer:  There are no plans to strengthen the existing textile industry.  
 4. Para 1 of Secretariat reports that Brunei owes its prosperity mainly to its abundant petroleum 
(oil and natural gas) resources, whose share of GDP grew from 53% in 2002 to 69% in 2006, and 
whose share of exports rose from 88% to 96% duri ng the same period.  Nonetheless, between 2002 
and 2006, the economy grew at a rather modest annual average real rate of 2.5%, which is insufficient 
to generate enough jobs for Brunei' s growing labour force.  As a result, official estimates put 
unemployment at some 4% in 2006, a cause for concern among Bruneians. What are the steps that the government is planning to take to address the i ssues in a comprehensive manner to reduce dependence 
on oil, diversify its economy, enhance its HRD skills  to provide jobs to the growing population? 
 
Answer: 
 
(Please refer to the answers to Questions 3 and 4 from the EC)  Brunei Darussalam has allocated BND250 million to  its HRD Fund, for specific programmes and 
projects to enhance HRD. In addition, BND165 million has also been allocated to improve science, 
technology and R&D activities.  
 
5. The Secretariat report also in Para 3 mentions  that Corporate taxes and royalties paid by oil 
and natural gas companies now account for some 94%  of all government revenue, up from 86% at the 
start of the review period in 2002. We would appreci ate if Brunei could kindly clarify as to nature of  WT/TPR/M/196/Add.1 
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  the increase; to what extent was it due to the rise in oil revenue taxes and decline, if any, in non-oil 
related revenue taxes?   
Answer: 
 
The increase in revenue from the oil and gas companies was to some extent due to the rise in the price 
of oil.  There has also been a small decline in  non-oil related revenue taxes due to the number of 
textile factories that have closed down.   
6. Para 5 of Secretariat reports that Brunei's ins titutional framework is characterized by a lack of 
transparency with respect to trade and trade-re lated policies, to the detriment of government 
accountability. We would appreciate if Brunei could please provide rationale for non-transparency 
and if it proposes to impart greater transparency and by when?    
Answer: 
 
Please refer to the answer to  Question 1(a) from Canada. 
 
7. Para 8 of the Secretariat report informs that in seeking to promote private sector development in non-oil and gas industries, Brunei overhauled its investment laws, and established the Brunei 
Economic Development Board (BEDB) in 2001 to prom ote Brunei as an investme nt destination. Has 
any evaluation of the work carried out since est ablishment of BEDB been conducted for an overall 
assessment of its performance and if so the results  and steps taken to make it more effective? 
 Answer: 
The BEDB internally reviews its effectiveness and performance on a continuous basis. Some recent 
initiatives carried out by the BEDB include a BEDB Stakeholders Forum where it seeks to further 
align its objectives and strategy with various sta keholders including the public and private sector. 
8. Foreign investment, including up to 100% foreign equity in vestment, is permitted in all 
sectors except those involving local natural resources (notably agriculture and fisheries) and those 
relating to national food security, for which minimum local participation of 30% is required.  Does 
Brunei envisages liberalising these sectors to attract FDI and with what timelines? 
Answer: 
The Government has no plans to reduce limits on minimum local equity pa rticipation in sectors 
involving natural resources and th ose relating to food security. 
9. Para 3 of the Secretariat report states that Brunei has bound nearly 93% of its tariff lines at the 
WTO;  while the average applied tariff rate is lo w, the average bound rate is 25.8%, leaving a large 
gap between the applied and bound MFN rates.  Wh at steps does Brunei proposes to take to bridge 
this gap to bring about certainty fo r traders and other economic agents. 
 
Answer: 
 
Please refer to the answer to Question 27 from the EC. 
 
10. Para 13 of Secretariat reports that Brune i is not a signatory to the WTO Government 
Procurement Agreement.  Further Para 56 mentions  that Brunei the Bruneian authorities state that 
further study is needed before the Government can make a decision.  There is no specific legislation 
pertaining to competition policy. We would appreciate if Brunei could indicate as to by when the WT/TPR/M/196/Add.1 
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  study would be initiated and comp leted and does Brunei plans to join the GPA as an observer. We 
would appreciate detail of plans of Brunei on introducing a Competition policy. 
 
Answer:  
On the GPA:  
Please refer to the answer to Question 29 from the EC.   On Competition policy:  Please refer to the answer to Questions 12 and 13 from the EC.  
 11. Para 4 of the Secretariat reports that through successive development plans,  the Government 
has sought to diversify Brunei's economy and create sustainable employment in the non-oil private 
sector and Brunei's economy has become even more heavily dependent on the oil and gas sector. We 
would appreciate to be informed of the cons traints faced by Brunei in meeting its planned 
development goals?   
 
Answer:  
 
The new Brunei Darussalam Long-Term Developmen t Plan has identified several challenges faced by 
Brunei Darussalam in meeting its development goal s.  The Government will work with all the 
stakeholders to ensure the strate gies, policy directions and projects are implemented effectively and 
efficiently.  Brunei Darussalam would also like to refer India to Box I.1 of page 9 of the WTO Secretariat  report. 
 
12. Para 20 of the Secretariat report comment s that the small domestic market, a poorly 
developed local private sector, high wage costs, a shortage of skilled la bour, slow bureaucratic 
procedures and a lack of transparency, and the ban on foreigners owni ng land have all deterred 
foreign capital and technology from non-oil and gas indus tries in Brunei.  What are the Brunei’s plans 
to address each of the foregoing issues to seek a balanced and sustainable economic and social 
growth?  
 
Answer: 
 Please refer to the answer to Question 4.  
 13. Further, Para 42 of the Secretariat report states that a key, internal, long-term risk continues to 
be the slow pace of the Government's diversifica tion programme.  Implementa tion of the privatization 
plan, which has been ongoing for a decade or more, a ppears to have been slowed by concern about the 
effect of privatization on government revenue a nd prices.  How does government propose to resolve 
this situation?  Answer:  Brunei Darussalam has a national committee, th e Jawatankuasa Khas Penswastaan, aimed at 
strengthening the private sector, and beside this, the tender document for the Privatization Master 
Plan has also been prepared, under Brunei Daruss alam’s Long Term Development Plan (i.e. under 
the National Development Plan 2007-2012), which will address the related issues mentioned.  
 
14. Currently, Halal meat and poultry can be im ported only from Malaysia and Australia.  Brunei 
imports live cattle from its state-owne d cattle farm located in Northern Australia for slaughter at local 
abattoirs (Para 46 of Secretariat report refers).  We would appreciate if Brunei could kindly explain  WT/TPR/M/196/Add.1 
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  the rationale of this restrictive import sourcing po licy and by when it proposes to open it to other  
interested exporting members?  
Answer: 
 
Brunei Darussalam would like to clarify that impor tation of Halal meat and poultry is not restricted 
to imports from Malaysia and Australia. In fact , Brunei Darussalam also imports Halal meat from 
India (Frigorifico Allana Ltd and Al Kabeer Pvt Ltd).  Brunei Darussalam does not restrict importation of Ha lal meat by place of origin but rather on 
whether or not they are certified by the Board i ssuing import permits under the Halal Meat Act.  
 As such, Brunei Darussalam is open to imports of Halal meat and poultry from all interested 
exporting members.  
15. On Page 68 the Secretariat reports that Farming has become a part-time business for most 
rural families, owing to the availability of more lucrative forms of employment. However, in the 
subsequent section it reports that the Government  policy is to reduce Brunei's dependence on food 
imports and to attain greater self-sufficiency in ag riculture.  We would be pleased to be informed of 
steps the Government proposes to take to make the farming lucrative employment and in seeking self-sufficiency in this sector.  
 
Answer: 
 Due to the small land area available for farmi ng, the Government recognises that full self-sufficiency 
will be a challenge to achieve. Accordingly, th e Government targets self sufficiency in selected 
agricultural products only, subject to capacity to  produce coupled with the availability of new 
technologies and innovations in farming practice. Current statistics revealed that Brunei achieved 
100 per cent self-sufficiency in egg production, while  broiler recorded 94 per cent self- sufficiency. 
 
 
BRAZIL
 
 
WT/TPR/G/196 paragraphs 75 and 77  
  
1. According to the Government Report, "the Government continues to place a great emphasis 
on the need for greater participation by the economic sector to contribute towards the diversification 
of the economy".  It also affirms that "the Governme nt is also still interested in attracting investment 
to develop the oil and gas sectors".   How the deve lopment of new policies to attract investments in 
the oil and gas sectors can be reconciled with the Government's plans to diversify Brunei's economy? 
  
Answer: 
 
Brunei Darussalam recognizes the importance of divers ifying the economy away from the crude oil 
and natural gas sectors, however Br unei Darussalam also realizes the benefit it can get from further 
utilizing its comparative advantage in the energy sector.   Therefore, to reconcile both these needs, Brunei Darussalam has begun undertaking to develop 
downstream activities in the oil and gas sectors. Th e development of the Sungai Liang Industrial Park 
(SPARK) as an authority and a one stop centre to fa cilitate establishment and operations of FDI in 
the park indicates one major move by Brunei towards widening its economic base for future 
generations. Under SPARK, the construction of the USD350 million methanol plant is currently 
underway and will start production by  2010.  The methanol derivatives are also expected to provide WT/TPR/M/196/Add.1 
Page 106  
 
  more business and employment opportunities to the local SMEs. The multi-billion deep water Pulau 
Muara Besar (PMB) port project is also exp ected to generate similar opportunities. 
 Furthermore, Brunei Darussalam has identified 5 other economic clusters – 1) Tourism and 
Hospitality, 2) Halal Food, 3) Transport and Logis tics, 4) Business and Financial Services and 5) 
Info-Communication Technology (ICT) – which it believes can complement and mutually support the 
development of its downstream industries.  In the Brunei Darussalam Long-Term Developmen t Plan, the Government has identified several 
policy directions and programmes that will be  implemented under the Economic, Institutional 
Development, Local Business Development, as we ll as Infrastructure Development strategies will 
further help to achieve economic diversification.   WT/TPR/S/196 paragraph 27  
 2. The Secretariat Report observes that "the lack  of reliable and timely data (...), as well as scant 
or non-existent information about the progress made  under latest national development plan, highlight 
the general lack of transparency, and thus public accountability, in the management of the economy".  
What has the Government been doing  to tackle such a lack of transparency and public accountability? 
  
Answer: 
 
Please refer to the answer to Questions 1(a) and 2 from Canada.  
 
WT/TPR/S/196 Chapter II (3) (ii)(d) paragraphs 37 and 38 
 3. The Secretariat Report mentions the Trans-P acific Strategic Economic Partnership Agreement 
(Trans-Pacific SEP), between Brunei, Chile, New Zeal and and Singapore. What is the assessment of 
the country’s authorities on the impact of such an Agreement?  
Answer: 
 
The TPSEP Agreement (P4) has provided Brunei Da russalam with increased market access to the 
other P4 countries, in particular to New Zealand a nd Chile, in goods, services and investment. At the 
same time, due to Chile’s participation in the Ag reement, Brunei Darussalam now has a platform to 
access the rest of South America.     
Brunei’s participation in the P4 has also r esulted in additional commitments for increased 
cooperation in the areas of Environment and Labour, Government Procurement as well as 
Competition Policy.   Perhaps one of the key effects from Brunei’s partici pation in a dynamic initiative such as the P4, is 
the elevation of our profile as an economy that is wil ling to be at the forefront of regional integration. 
The interest generated by this initiative has provid ed an impetus to Brunei’s efforts in enhancing our 
attractiveness and competitiveness as an investment destination. 
 
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