1
TARIFF MEASURES
Structure
of the tariff schedule
Brunei
applies a nine-digit tariff nomenclature based on the Harmonized Commodity
Description and Coding System. The tariff schedule has one column
of duty rates.
Tariff
publications
Current information on customs
related matters is available from the Royal Customs and Excise Department,
Jalan Menteri Besar, Berakas BB 3910, Negara Brunei Darussalam.
Tariff
rates
| 11 |
All
dutiable goods imported into Negara Brunei Darussalam are subject to customs
duties in accordance with the schedule of the Customs Duty Order 1973.
Duties are assessed either on specific or ad valorem basis. Some
70 percent of items including basic foodstuffs, and goods for industrial
use are zero rated. Most other goods are subject to rates of 10%,
20% or 30%. A 10% rate applies to gold jewellery. Timber, electrical
equipment and appliances, photographic materials, furniture, and public
transport type motor vehicles and spare parts are dutiable at 20%.
A rate of 30% is set on cosmetics and perfumes. Motor vehicles including
station wagons and racing cars are subject to rates of 40%, 60%, 80%, 100%
or 200% depending on engine size. Specific duties apply to cigarettes
and alcoholic beverages. |
| 12 |
A
commercial and economic agreement was signed between the Brunei and the
European Union providing for MFN tariff treatment. |
| 16 |
The Industrial
Incentive Act of 1975 provides for tax advantages in four industrial categories:
industries related to national food security, local market industries,
industries based on local resources, and export market industries.
In addition, companies granted pioneer status, and established companies
planning expansion are eligible for exemption from import duties. |
| 19.2 |
The Association
of South-East Asean Nations (ASEAN) decided in 1992 to establish an ASEAN
Free-Trade Area (AFTA) by the year 2008, later brought forward to 2003
for the six original founding members of ASEAN: Brunei Darussalam, Indonesia,
Malaysia, the Philippines, Singapore, and Thailand. Vietnam joined
in 1995, Laos and Myanmar in 1997, and Cambodia in April 1999. In
December 1998, the ASEAN members decided to accelerate the completion of
the ASEAN Free-Trade Area. In this regard, the six original founding
members would advance their tariff reductions to 0-5% from 2003 to 2002.
In May 2000, Malaysia received approval from its ASEAN partners for an
extension of its commitments under AFTA to reduce tariffs in the automobile
sector and selected agricultural products until 2005. Vietnam would
implement its tariff reductions to 0-5% by 2003, and Laos and Myanmar by
2005.
In
the year 2015, final reductions will be achieved by these four countries.
Since 1 of January 2003, the ASEAN countries have announced the abolishment
of tariffs on 60 per cent of traded goods and the introduction of a 5%
on import tariffs within its six original members, i.e. Brunei Darussalam,
Indonesia, Malaysia, the Philippines, Singapore, and Thailand. Products
affected essentially by this measure are electronic products, machinery
items and petrochemicals. And goods excluded from the tariff reduction
agreements are goods of key industries in some of the member countries;
for example, the Philippines and Indonesia will delay the 5% cap on sugar
and petroleum, and Malaysia will shelve the cap on car imports until 2005.
As for Cambodia, Myanmar, Lao People's Democratic Republic and Vietnam,
the four ASEAN's latecomers, will introduce the 5% tariff cap only in 2010.
ASEAN member states decided,
in December 1998, to expand access to the 1996 Basic Agreement on the ASEAN
Industrial Cooperation (AICO) Scheme, which promotes joint manufacturing
industrial activities between ASEAN-based companies. AICO provides
tariff preferences on inputs sourced in the region.
The
eight ASEAN summit was held in Phnom Penh, Cambodia, from 4 to 6 November
2002. During this meeting, several free trade plans were developed
involving 14 Asian countries, i.e. the 10 ASEAN members such as Brunei
Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines,
Singapore, Thailand, and Vietnam with China, India, Japan and the Republic
of Korea. The objectives of these free-trade plans are to quicken
the pace of trade liberalization and foster multilateralism in the region.
At
the 19th ASEAN summit held from 6 to 8 October 2003 in Bali (Indonesia)
members reinforced regional integration and fostered economic cooperation,
signing a strategic partnership with China, a framework for economic comprehensive
partnership with Japan, and a framework agreement for economic cooperation
with India.
Brunei is a participant
in the East Pacific Economic Cooperation (APEC) forum, formed in 1989.
The objective of the agreement is to implement free trade among the member
countries by the year 2020, with advanced industrialized countries realizing
the goal by the year 2010. Individual action plans for each member
country were established to outline a path to the goal. Brunei has
pledged to reduce tariffs on 688 items as part of its APEC Commitment.
On 10 November 2000, APEC leaders agreed to EVSL (early voluntary sectoral
liberalization) in 15 sectors, that is liberalization before the agreed
goals of 2010 or 2020, respectively.
The 15 sectors comprise
automotive products, chemicals, civil aircraft, energy, environmental goods
and services; fish and fish products, food, forest products, gems and jewellery,
medical equipment and instruments, natural and synthetic rubber, oilseeds
and oilseed products, toys; also mutual recognition agreement for telecommunication
products. Of these 15 sectors, nine were to be accelerated under
the ATL initiative (ATL) namely: chemicals, energy, environmental goods
and services, fish and fish products, forest products, gems and jewellery,
medical equipment and instruments and toys, as well as the mutual recognition
agreement for telecommunications products.
BIMP-EAGA, the East ASEAN
Growth Area established in March 1994 by Brunei Darussalam, Indonesia,
Malaysia and the Philippines is also, the largest growth area in Asia and
aims at developing trade opportunities through the pooling of common and
complementary resources and encouraging the free movement of resources
across borders. |
| 19.3 |
A
new trade initiative between the ASEAN and the U.S.A. has been set up as
the Enterprise for Asean Initiative (EAI), which objectives aim at developing
the Southeast Asian Region, and enhance close U.S. ties with ASEAN. The
EAI offers bilateral free trade agreements (FTAs) between the United States
and individual ASEAN countries, by determining jointly the launching of
FTA negotiations. ASEAN members and China leaders decided in Brunei
on November 2001 to work on creating a free trade area within the next
ten years.
ASEM
or the Asia-Europe Meeting, held its first summit meeting in 1996, in Thailand
with seven members of ASEAN of which Brunei Darussalam, together with the
European Commission and the 15 members of the European Union, Japan, China
and Korea; ASEM objectives aim at reducing non-tariff barriers.
At
their third meeting in Seoul, Korea, in October 2000, members reiterated
their commitment to trade liberalization.
TREATI,
or Trans-Regional EU-ASEAN Trade Action Plan, was launched on 9 July 2003
by the European Commission with the objective of boosting trade between
the two regions. This action aims at enhancing relations with ASEAN
members. |
2
PARA-TARIFF MEASURES
| 23.2 |
Excise
taxes legislation lays in the Excise Act amended of 1984, and are levied
as follows: B$5 per gallon on locally produced Samsoo and medicated Samsoo. |
| 24 |
Used
motor vehicles may only be imported subject to customs valuation. |
3
PRICE CONTROL MEASURES
| 31.9 |
Imported rice
and sugar under monopoly by the Department of Information Technology and
State Stores, are subject to maximum retail prices.
Under
the Price Control Act and the Emergency Price Control Act Amendment Order
of 1999, administered by the Economic Planning and Development Department
in the Ministry of Finance, administrative pricing is set on the following
items: rice, sugar, motor vehicles, petroleum products, cigarettes, infant
milk, milo bread, coffee, and tea. |
4
FINANCE MEASURES
| 49 |
Duty
drawback provisions under Part X of the Customs Law Amendment of 1984,
allows repayment of import duties paid when goods are re-exported unprocessed
within 12 months period and payment for each consignment should not be
less than B$100. |
5
AUTOMATIC LICENSING MEASURES
| 52 |
Import monitoring
of beef and poultry in order to protect local market supplies. |
6
QUANTITY CONTROL MEASURES
Non-automatic licensing
Licensing
under the authority of
Royal
Customs and Excise Department,
Jalan
Menteri Besar,
Berakas
BB 3910,
Negara
Brunei Darussalam
| 61.4 |
The Department
of Information Technology and State Stores, Ministry of Finance subject
to licensing the importation of sugar and salt, rice paddy and the products
thereof, separated, skimmed or filled milk; equally licensing for converted
timber, timber, classes 1A, 1B, 1C, Nibong, Rotans, by the Forestry Department,
Ministry of Industry and Primary Resources. |
| 61.6 |
Registration
requirement for all importers with the Government in order to be eligible
for conducting the clearance of imported goods from Customs Control.
Most
items may be imported under Open General Licence. However, for environmental,
health, safety, security or religious reasons, the Royal Customs and Excise
Department has introduced the Approval Permit System. This system
is applicable for the importation of certain restricted items, under the
provisions of the Customs (Prohibition and Restriction on Imports and Exports)
(Amendment) Order, 1994 & 1995 - Section 28 Customs Enactment, 1984. |
| 61.7 |
In addition,
approval of licence or permit must be obtained from other competent departments
before the Approval Permit is issued to import controlled and restricted
goods.
Import restrictions apply
as well to petrol, kerosene, cigarettes, spirits and liquors, firecrackers,
and items bearing the imprint of state emblems. |
| 61.71 |
Import of Persian
glue is subject to licensing by the Ministry of Health, the same requirement
applies to meat, meat products and edible offal, including poultry meat
and its products; the medical Department and the Ministry of Health require
license for deleterious drugs, any kind of chemical substances, agricultural
chemicals, poisons, antiseras and vaccines. |
| 61.72 |
Import permit
issued by the Agriculture Department, Ministry of Industry and Primary
Resources is required for eggs for hatching purposes and fresh eggs unless
such eggs are clearly stamped "imported" with non-erasable ink or similar
substance, and for live cattle, and any other animals, poultry and birds,
including from Sabah and Sarawak; any live insects, invertebrate animals
in any stage of their life cycles. |
| 61.73 |
Import permit
requirement issued by the Agriculture Department, Ministry of Industry
and Primary Resources for any living plant or planting material, including
from Sabah and Sarawak, and seeds for germinating, and commercial shipments
of fruit and vegetables. |
| 61.75 |
The Department
of Museums controls the import of Rhinoceros horn and all other parts of,
or products derived from the carcass of a rhinoceros. The Department
of Fisheries, Ministry of Industry and Primary resources subjects to licensing
in order to regulate and to ensure adequate protection of marine resources,
fish and any other marine products except those listed under CITES, prawn,
crab, cuttlefish and any kind of crustaceans and molluscs, Piranha and
Arawana, and fishing equipment. |
| 61.76 |
Poisons and
deleterious drugs are under the administration or Narcotics Control Bureau. |
| 61.77 |
Import restrictions
of motor vehicles of five years and more, including motorcars, motorcycles,
lorries, omnibuses, tractors and trailers, for road and safety reasons.
The permit is issued by the Land Transport Department. Further the
importer must also submit the import permit to the Royal Department of
Customs to obtain an admission permit (AP) in order to import. Imports
of any radio-active materials under the control of the Ministry of Health. |
| 61.78 |
Royal Brunei
Police Force, Ministry of Religious Affairs, Ministry of Home Affairs,
subject to licensing, importation of printed media, radio communication
apparatus and dealers, radar apparatus-remote control such as for motor
car, racing car and boat, wireless telephone, walkie talkie, pagers, mobile
radio transmitters, amateur and hand transceiver, radio transmitter and
transmitter receiver,maritime radio communications apparatus for use in
coastal and shipping communication, aeronautical communications apparatus
for use in aircraft and aviation, telecommunications fixed line set dealers
such as domestic telephone sets, arms, explosives, and fireworks/crackers.
Publications and printed materials and recorded media including cassette,
videos, CD, LD etc... |
| 61.9 |
The Ministry
of Home Affairs subjects to licensing the import of pin tables, fruit machines,
slot machines and any other machines of like nature whether involving an
element of chance or not, Poh Ka, Poh Kah or Poh Kau, Liow Ko, and Ch'ow
Ko.
Religious reasons restrict
the import and manufacture of alcohol and alcohol products under the Customs
Prohibitions and Restriction of Imports and Exports Amended Order of 1990,
effective since 1 of December 1990, which subjects imports of alcohol to
a licence issued by the Controller.
The Ministry of Religious
Affairs, Ministry of Health, and Department of Agriculture, and Ministry
of Industry and Primary Resources, restrict the importation of beef and
poultry including the carcass of the animal or any part thereof, the meat
whether frozen, chilled or fresh, bones, hide, skin, hooves, horns, offal
or any other part of the animal or any portion thereof, unless it has been
slaughtered in an abattoir approved in writing by the Minister of Religious
Affairs; the same Ministry subjects to licensing meat, meat products and
edible offal, including poultry meat and its products.
Antiques and articles of
a historical nature made or discovered in Brunei Darussalam, and wild life,
are controlled by Brunei Museums.
The import of natural mineral
water requires a permit issued by Brunei Industrial Development Authority
(Bina). |
Prohibition
| 63.1 |
Indecent and
obscene articles or prints, articles bearing the imprint or reproduction
of any currency, bank notes or coins, knives, and video games are absolutely
prohibited. |
| 63.4 |
Temporary ban
on import of cement, in order to protect the state-owned sole domestic
supplier. |
| 63.71 |
Import ban is
set on the following goods: opium and Chandu, the "Salk" polio vaccine,
and vaccines of Chinese Taipei origin, and cough mixture containing codine.
Imported cigarettes are
prohibited unless with health warning written on the packages approved
by the Ministry of Health.
Due to the risk of transmission
of the Avian Influenza virus to humans through consumption of infected
poultry products, a ban is set on the importation of all types of poultry
products including those live and frozen and all types of poultry eggs
from all countries affected by and suspected of having cases of Avian Influenza.
With the incidence of Bovine
Spongiform Encephalopaty and the outbreak of Foot-and-Mouth diseases, in
Europe including the United Kingdom, an import ban has been set since 4
of March 2001, on all types of meat, including those chilled and frozen,
their by-products such as sausage, meat extract and canned meat.
Import ban is set also on milk and other dairy products such as pasteurised
milk, cheese, butter, ice-cream, yoghurt, powdered milk and baby formulation
from the U.K. produced on 1 February 2001. |
| 63.72 |
Import prohibition
on pigs bred from Thailand, in order to prevent the introduction of animal
diseases into Brunei Darussalam.
With the incidence of Bovine
Spongiform Encephalopaty and the outbreak of Foot-and-Mouth diseases, in
Europe including the United Kingdom, an import ban has been set since 4
of March 2001, on all types of meat, including those chilled and frozen,
their by-products such as sausage, meat extract and canned meat.
Import ban is set also on milk and other dairy products such as pasteurised
milk, cheese, butter, ice-cream, yoghurt, powdered milk and baby formulation
from the U.K. produced on 1 February 2001.
With the outbreaks of the
Avian Influenza virus in several countries, and with the view of avoiding
the transmission of the disease to animals, effective from 28 January 2004,
an import ban is set on all types of poultry products, including those
live and frozen and all types of poultry eggs from all countries affected
by and suspected of having cases of Avian Influenza. |
| 63.73 |
Imports of a
number of plants from specific regions or countries, soil itself or attached
to plant roots are prohibited. |
| 63.75 |
Import prohibition
of Java Sparrows and turtle egg. |
| 63.76 |
There
is a short list of prohibited items including dangerous drugs such as opium,
heroin, morphine, and psychotropic substances, mescaline, barbiturates,
and amobarbital. |
| 63.77 |
Fire crackers
known as "double bangers" are banned at importation. |
| 63.78 |
All prohibitions
under any order under the Sedition Enactment (cap.24) or the Undesirable
publications Enactment (cap.25) arms and ammunitions, and fabrics of tissues
consisting of any fibre whatsoever and of any other article whatsoever
which fibre or tissue or other articles bear the imprint of any currency
note, bank note or coins which are or have not at any time been issued
or current, in any other country whatsoever, are prohibited imports as
broadcasting equipment. |
| 63.9 |
Import prohibitions
on pens, pencils and other articles resembling syringes, and on alcoholic
beverages including spirit and liquors. |
7
MONOPOLISTIC MEASURES
| 71.1 |
Single
channel for imports
Import
monopoly of rice bought mostly from Thailand by the Department of Information
Technology, and State Stores in the Ministry of Finance under a government
to government contract.
Sugar
is also subject to import monopoly. |
8
TECHNICAL MEASURES
Technical
regulations
Standards
and technical regulations are the responsibility of:
Ministry
of Development,
Old
Airport, Bandar Seri Begawan 1190,
Negara
Brunei Darussalam.
As
there is no national body for elaborating standards, the Construction Planning
and Research Unit (CPRU) in the Ministry of Development stands for a focal
point for standards and conformity assessment activities. Yet Brunei
is a member of the following international and regional standard setting
fora which include ISO, WHO, Codex, the ASEAN, ACCSQ (consultative committee
on Standards and Quality), the ASEM Trade Facilitation Action Plan, the
APEC Sub-Committee on Standards and Conformance, and the Asia-Pacific Laboratory
Accreditation Cooperation Scheme.
| 81.1 |
Motor
vehicles, agricultural products, pharmaceuticals, and drug related products
may be imported subject to certificate of origin requirements.
In
conformity with the Emergency (Halal Meat) Order, 1998, "halal" imported
meat must originate from facilities which have been approved by Brunei
authorities as "halal". |
| 81.12 |
Health certificates
are required for beef and poultry.
Inedible tallow must be
accompanied by a sterilization certificate.
Imports of live animals
and animals products must be covered by veterinary certificates.
Imported eggs must be identified
with the imprint "imported" on the shell of the egg, in order to track
out the source of supply and prevent illegal cross-bordering movements
of eggs of unknown sanitary status and to ensure conformity with veterinary
and sanitary requirements.
Under Regulations ruling
the Quarantine and Prevention of Animal Diseases, all import of dogs, cats
and related species must be accompanied by a veterinary health certificate
and a certificate from the Veterinary authority of the exporting country
stating that the country is free from rabies for a period of six months
prior to exportation. |
| 81.13 |
Phytosanitary
certificates from the Department of Agriculture are required for imported
plants and plant materials. No soil may be attached.
The Plant Quarantine Unit
of the Department of Agriculture in the Ministry of Industry and Primary
Resources, Under the Agricultural Pests and Noxious Plants Act, 1962, is
responsible for implementing phytosanitary regulations. Phytosanitary
certificates must accompany imports of plants. |
| 81.3/4 |
Legislation
on food labelling requirements is contained in the Emergency Public Food
Order of 1998, in force since January 2001. Labels must be written
in Malay or English and must contain the following information: name of
food, list of ingredients, net/drained content details of the manufacturer,
importer; the country of origin, lot identification, the best before date,
storage and use instructions etc. Imports of meats and products containing
meat must conform to labelling requirements approved by the Board for Issuing
Halal Import Permits. As for food with animal or alcohol content,
the origin of both animal or alcohol must also be indicated; imported eggs
must be clearly marked "imported" to distinguish them from locally produced
eggs. |
| 81.5 |
Inspection requirements
are set on such imports as motor vehicles, pharmaceuticals, beef, plant
and plant materials. Inspection is conducted by various government
departments controlling the restricted goods including the Transport Department,
the Health Department, and the Department of Agriculture, respectively.
Random samples analysis
of imported Mineral water, conducted by the Ministry of Health.
Imported live animals are
subject to veterinary inspection at the border, with the exception of those
imported from Australia, Ireland, New Zealand, Sabah, Sarawak, Singapore,
the United Kingdom; for other countries that are free from rabies, animals
may be subject to quarantine for six months upon arrival. Inspection
of imported and locally produced drugs by the Drug Quality Control Service,
to ensure quality. |
|