Brunei's Import Market: What's Coming In?

Brunei's imports are largely dominated by mineral fuels, mineral oils, and products of their distillation, which accounted for 63% of all imports in 2023. The top imports into Brunei in 2023 were crude petroleum, refined petroleum, cars, coal briquettes, and gas turbines. In 2022, the United States imported goods from Brunei worth $90 million, a significant increase of 429.9% from 2021.

Crude petroleum

Brunei imported crude petroleum primarily from Malaysia ($1.19 billion), the United Arab Emirates ($935 million), Kazakhstan ($540 million), Qatar ($523 million), and Saudi Arabia ($340 million). These imports contributed to Brunei's overall trade balance remaining positive, despite the country importing most of its consumer goods and food.

The Observatory of Economic Complexity reports that in 2022, Brunei was the 30th largest importer of crude petroleum in the world. Crude petroleum accounted for 63% of all commodity imports to Brunei in 2023, valued at $3.92 billion. This made it the top import commodity group for the country.

Brunei's economy is heavily reliant on the income generated from the sale of oil and gas and downstream products, which represent 80% of the country's exports and 53.5% of its GDP. The country has been described as an "oil-rich Sultanate" and has no sovereign debt.

Cars

Importing a Car into Brunei

If you want to import a car into Brunei, you must follow specific procedures and regulations. The import process depends on the vehicle's origin and age.

Importing a Vehicle from ASEAN Countries

If importing a vehicle from an ASEAN (Association of Southeast Asian Nations) country, you must:

• Obtain an Import Permit from the Brunei Land Transport Department (LTD).
• Obtain a Certificate of Origin from the country where the vehicle was manufactured.
• Obtain a Bill of Sale from the seller, including the vehicle's details, the purchase price, and the seller's and buyer's information.
• Pay the following taxes and duties: Import Tax (15% of the vehicle's value), Excise Duty (variable, depending on the vehicle's age and engine capacity), and Sales Tax (5% of the vehicle's value).
• Present the documents to the Customs Authorities: when the vehicle arrives, the necessary documents must be presented to the Customs authorities for verification. They will check the vehicle's condition and if it meets the technical requirements, you can register it in Brunei.

Importing a Vehicle from Non-ASEAN Countries

Importing a vehicle from a non-ASEAN country is a more complicated process. You must:

• Obtain an Import Permit from the Brunei Land Transport Department (LTD).
• Obtain a Certificate of Origin from the country where the vehicle was manufactured.
• Obtain a Bill of Sale from the seller, including the vehicle's details, the purchase price, and the seller's and buyer's information.
• Obtain a Pre-Export Inspection from a recognised inspection company, confirming the vehicle meets Brunei's technical requirements.
• Pay the following taxes and duties: Import Tax (15% of the vehicle's value), Excise Duty (variable, depending on the vehicle's age and engine capacity), and Sales Tax (5% of the vehicle's value).
• Present the documents to the Customs Authorities: when the vehicle arrives, the necessary documents must be presented to the Customs authorities for verification. They will check the vehicle's condition and if it meets the technical requirements, you can register it in Brunei.

Valuation of Cars

The valuation of new cars is based on the purchase price in the open market, plus Freight, Insurance, Commission, and all other costs incidental to the purchase and delivery.

The valuation of used cars is based on the Brunei Darussalam Retail List Price (RLP) of a particular model and year of manufacture. The Retail List Price (RLP) is assessed by Customs, taking into account the depreciation since the date of first registration.

Other Requirements

Within 24 hours of a vessel's arrival, the master or agent must present the following documents to the Customs Officer: Port Clearance, Inward Manifest, Crew List, Ship Stores List, and all other necessary documents pertaining to the voyage. The inward manifest must be certified by the master or agent of the vessel and contain particulars such as marks, numbers, contents of each package, names of shippers and consignees, weight measurements, etc.

Prior to importing any restricted goods, a permit (A.P) must be obtained from Customs. The applicant must fill in the prescribed form in quadruplicate and submit it to the Controller of Customs.

All goods, whether dutiable or not, must be declared in the prescribed form and submitted to the Customs where the goods are to be imported. Dutiable goods may be moved from one place to another within the State with the permission of the Controller of Customs.

Buying a Car in Brunei

If you are a foreign national planning to buy a car in Brunei, you need a valid passport and a work permit. Once you have these, you can visit a car dealership and choose the model you want. The dealership will provide a sales contract and you will pay a deposit, usually 10% of the car's price. The dealership will then order the car from the manufacturer. When it arrives, you pay the remaining amount, sign the sales contract, and the dealership will register the car in your name and provide the necessary paperwork.

Buying a Used Car in Brunei

Buying a used car in Brunei requires more effort. You can find used cars for sale online, in newspapers, or at car dealerships. When you find a car you are interested in, arrange a meeting with the seller to inspect the car's condition, mileage, and history, and take it for a test drive. If you are satisfied, make an offer to the seller. If they accept, sign a sales contract and pay a deposit (usually 10%). Check for any outstanding debts or fines, and ensure the seller provides the necessary paperwork, including the car's registration certificate. When you have paid the remaining amount, the seller will transfer ownership to you and you will receive the registration certificate. You should also obtain car insurance and register the car with the Brunei Land Transport Department (LTD).

Coal briquettes

In 2022, the top exporters of coal briquettes were Australia ($109 billion), Indonesia ($50.8 billion), Russia ($36.5 billion), the United States ($23.7 billion), and Colombia ($12.9 billion). The largest importers of coal briquettes in 2022 were India ($58.7 billion), Japan ($53.7 billion), China ($28.1 billion), South Korea ($26.8 billion), and Chinese Taipei ($15.7 billion).

Indonesia's exports of coal briquettes in 2022 were primarily to India, China, Japan, the Philippines, and South Korea. The country's imports of coal briquettes came largely from Australia, China, Russia, Kazakhstan, and the United States.

Gas turbines

Brunei's largest import sector by market value is machinery and transport equipment, which includes gas turbines. In 2023, the import of turbo-jets, turbo-propellers, and other gas turbines accounted for 0.946% of all commodity imports, or $70 million.

The country's energy sector is largely focused on oil and gas production, with gas turbines playing a supporting role. Brunei LNG (BLNG), located in Lumut, is the largest oil and gas producer in the country and the fourth-largest in Southeast Asia. It is also the ninth-largest liquefied natural gas (LNG) producer globally.

The BLNG plant in Lumut, established in 1969, is a key player in the country's energy sector. It has a capacity of 6.7 to 6.71 million tonnes of liquefied gas per year, which is pumped into ocean-going tankers. The plant's energy consumption is equivalent to a 300 MW power station, supplied by nine steam boilers that drive turbine compressors and generator turbines.

Brunei's gas industry has seen significant growth since the opening of the LNG plant in Lumut in 1973, the first facility of its kind in the Western Pacific. The country has a 50% stake in the BLNG plant through the Ministry of Finance and the Sultan and Yang Di-Pertuan of Brunei Darussalam. The remaining 50% is owned by Shell Overseas Holdings Limited and Mitsubishi Corporation, with each holding a 25% stake.

Pharmaceutical products

Brunei's economy is heavily dependent on the income from selling oil and gas, which also makes up the bulk of government revenues. However, the country is trying to diversify its economy, and it markets itself as a financial centre and a destination for upmarket and eco-tourism. Brunei imports most consumer goods and food, and the country's large oil exports keep its trade balance positive.

In 2023, the total value of merchandise imports to Brunei was $7.48 billion, a decrease of 18.5% compared to 2022. The top import sectors by market value were machinery and transport equipment, manufactured goods, and food.

The import of all goods into Brunei is monitored by the Royal Customs and Excise Department. Importers must register with the port of entry, and import permits are required for some products. Completed customs declaration forms must be submitted via the Brunei Darussalam National Single Window website, along with supporting documentation such as invoices, freight and insurance slips, airway bills, and packing lists.

Frequently asked questions