brunei freight forwarders association (brufa) bruneiair cargo. brunei freight forwarders have the...

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BRUNEI COUNTRY REPORT 2018

Brunei Freight Forwarders Association (BRUFA)

BRUNEI

Country Report Year 2018 for

The 45th Executive Council Meeting

THE FEDERATION OF ASIA PACIFIC AIR CARGO ASSOCIATIONS (FAPAA)

FROM

29 – 30 August, 2018

At

Amber 2, 2nd Floor, BITEC Bangna, Bangkok, Thailand

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BRUFA COUNCIL MEMBERS FOR YEAR 2016 TO 2018 (OFFICE BEARERS) SECRETARIAT POSTAL ADDRESS : P.O. BOX 880, BANDAR SERI BEGAWAN BE3978, NEGARA BRUNEI DARUSSALAM WEBSITE : www.brufa.com MAIN PERSONS TO CONTACT : PRESIDENT : Mr. Thomas Koh Email : [email protected] VICE PRESIDENT : Mr. Lawrence Rathinam Email : [email protected] SECRETARY GENERAL : Ms Linda Chang Email : [email protected] TREASURER : Mr. Sean Yapp Email : [email protected]

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BRUFA EXECUTIVE COUNCIL MONTHLY MEETING IN PROGRESS

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BRUNEI DARUSSALAM ECONOMIC OVERVIEW Despite repeated calls for diversification, Brunei’s economy remains overwhelmingly dependent on the income derived from the sale of oil and gas, which represents 90% of Brunei’s total exports. Additionally, substantial revenue from overseas investments supplements income from domestic hydrocarbon production. Brunei encourages foreign direct investment (FDI) in its domestic economy through various investment incentives offered by the Energy and Industry Department and the Prime Minister’s Office, as well as through activities conducted by the Ministry of Foreign Affairs and Trade and the Brunei Economic Development Board (BEDB). The five largest destinations for Brunei exports (mostly mineral fuels) as of December 2016 were Japan (36%), Republic of Korea (16%), India (9%), Thailand (8%), and Taiwan (7%). The five largest sources of imports to Brunei were from Malaysia (21%), Singapore (14%), China (10%), the United States (10%), and the Republic of Korea (9%). The largest export sectors by market value were mineral fuels, chemicals, and machinery and transport equipment. The largest import sectors by market value were machinery and transport equipment, manufactured goods, and food. In 2016, the total trade between United States and Brunei was US $628 million. The 2016 U.S. trade surplus with Brunei was US $601 million: exports totaled US $614 million while imports totaled US $13 million. Brunei is a founding member of the Trans-Pacific Partnership (TPP) trade agreement that concluded negotiations in October 2015. Over 98% of products entering Brunei in 2016 came through Muara Port with 2% brought in as air cargo. Brunei Freight Forwarders have the capability to transport imported products. The logistic companies have developed reliable network connections with established shipping and logistics partners worldwide, and have the capacity to provide effective and reliable shipping agencies, stevedoring, courier service, freight forwarding, transshipment, packing and removal, warehousing and distribution, transport, crane hire and project cargo forwarding. LOCATION DATE SUMMARY DEADLINE

Brunei- 02-Jan-2018 Asean University Network/southeast Asia Engineering Education Development Network Project Phase 4.

N.A.

Brunei- 31-Aug-2017 New Greenfield Fertilizer Plant in Brunei.

N.A. Brunei- 28-Aug-2017 Orchid Garden Hotel and Mall Development- Phase Iii.

N.A. Brunei- 19-Jul-2017 Champion 7 Offshore Platform in The South China Sea.

N.A.

Brunei- 06-Jul-2017 Establishing the Quality and Safety of Diagnostic Radiology Services in Brunei Darussalam.

N.A.

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LOGISTICS & TRANSPORT OVERVIEW

Effective 01st April, 2017 the Royal Brunei Customs & Excise Department has implemented a few changes on import duties & excises as they worked hand in hand with some government bodies ie Land Transport Department and Ministry of Health.

Policies announced included new excise taxes on sugary drinks and products and mono-sodium glutamate and increased tobacco excises, an income tax board of review, as well as the establishment of a new SME bank, a free trade zone to support exports

Ports Department (MPC) has given good Port tariff rates to all importers and exporters and importers are enjoying new Port Storage period.

Ports Department, MPC, Customs met with BRUFA members on the Ports ICD relocation as effective 15th April, 2017, they have started the ICD Muara relocation.

To succeed in this strategy, the Government is relying on the advantages of its trade agreements to help streamline Customs and procedures and facilitate the movement of goods across borders. The ASEAN single window project for instance, creates a unified platform for import and export operations, facilitating the process for making declarations and paying taxes, all of which reduce transit times and costs.

This could be particularly beneficial for Brunei Darussalam in terms of exporting goods, produced in the Malaysian states of Sarawak and Sabah, especially if operations are located closer to the Brunei Darussalam border than to ports in their own provinces. The linkages are expected to be enhanced in the future through new cooperative projects including the Trans-Borneo Railway (TBR) and the Trans-Borneo Bus Service (TBBS).

LAYING THE TRACKS : The TBR is intended to provide the island’s first comprehensive railway, which will run along the coastline of Kalimantan, Sabah, Sarawak and Brunei Darussalam. The project will encompass a total rail network spanning 4440 km at an estimated cost of BND20bn)(BND15.57bn) and is intended to provide a more efficient way to move freight between major urban centres and open up the hinterland for further exploitation of Borneo’s vast timber, coal and other natural resources.

Another key component of Brunei Darussalam’s plans to become a future logistics hub is the establishment of free trade zones (FTZ) was established at Muara in the form of the Muara Export Zone (MEZ), located just outside the port perimeter, followed by a second FTZ at Sungai Liang managed by the Ports Authority, the MEZ offers shipping and logistics companies warehousing services, container movement and handling and Customs procedures at the port.

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MUARA PORT AUTHORITY (MUARA PORT COMPANY) OCEAN FREIGHT STATISTIC DATA REPORT

YEAR TEU’S 2017 105,000

2018 (As of January 2018 – June 2018) 59,000

AIR CARGO SIDE Imports – Most imports coming into Brunei are mostly from the neighbouring Countries with direct flights. Commodities like fresh fruits and vegetables, fresh flowers, frozen cargoes, live fishes and chicks and urgent cargoes. However, if there is any transshipment shipments, the flights are mostly via Singapore or Kuala Lumpur. Exports – Brunei has less exports out but there are exports on Used household & personal effects for expatriates under Government Contracts, pets, medical supplies and trade samples.

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EVENTS & MEETINGS

BRIEFING BY JPKE ON ANTI-COMPETITION LAW AT ROYAL BRUNEI CUSTOMS & EXCISE DEPARTMENT WITH SOME OF BRUFA MEMBERS

SHORT DISCUSSIONS ON “EASE OF DOING BUSINESS 2016 & 2017 FOR TRADING ACROSS

BORDERS” BY THE BRUNEI ROYAL CUSTOMS & EXCISE DEPARTMENT WITH BRUFA

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10/AUG/2017 - DIALOGUE SESSION ON CURRENT AIR CARGO TERMINAL AND WAREHOUSE

SERVICES CHARGES & OPERATION ISSUES WITH BIACC & BIACC, BRUFA & CUSTOMS AT BIACC CONFERENCE ROOM BRUNEI AIRPORT, CARGO SECTION, BANDAR SERI BEGAWAN, BRUNEI

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BRUFA PARTICIPATED ON THE LAND FLOAT PROCESSION IN CONJUNCTION WITH THE SULTAN’S

50 YEARS GOLDEN JUBILEE CELEBRATION ON 22/OCT/2017

=== END OF REPORT ===

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