Obligations Concerned: Performance Requirements (Article 9.10) Senior Management and Boards of Directors (Article 9.11) Local Presence (Article 10.6)
Measures: Local Business Development Directive No. 2 of the Energy Department, Prime Minister’s Office
Description: Investment and Cross--Border Trade in Services
1. A foreign national or enterprise may supply, or establish an enterprise to supply services in the upstream, midstream and downstream petroleum industry other than those listed in Appendix I – A.
2. Where the total approved contract value for the supply of services in paragraph 1 is more than BND 10 million, the foreign national or enterprise must comply with the following requirements: (a) appoint at least 40 per cent or more, Brunei nationals to the enterprise’s management positions in Brunei Darussalam within the duration of the contract period; (b) accord a preference to goods and services produced in Brunei Darussalam so that at least 40 per cent, or more, of goods and services are produced or purchased in Brunei Darussalam within the duration of the contract period; and (c) establish or maintain a representative office or any form of enterprise, or be resident in Brunei Darussalam, unless as may otherwise be authorised by the Government of Brunei Darussalam.
Sector: Services supporting the petroleum industry
Sub-Sector: Operation of Marine Supply Base and Shipyard
Obligations Concerned: National Treatment (Article 9.4) Market Access (Article 10.5)
Measures: Administrative Measures and Guidelines
Description: Investment and Cross--Border Trade in Services
1. Foreign nationals or enterprises may not establish a marine supply base or shipyard to supply services to the oil and gas industry except through a joint venture with a Brunei national or Bruneian enterprise, and may not own more than 49 per cent equity shareholding in the joint venture.
2. The number of marine supply bases or shipyards in Brunei Darussalam may be subject to needs--based quantitative limits.
APPENDIX I-A. Work Categories
Corporate Services
1. Provision of environmental health services, including pest prevention services. This does not include advisory and consultancy services
2. Provision of media publication services
3. Provision of event management services
4. Provision of travel arrangements for staff (other than those booked online)
Engineering Design
1. Provision of quantity surveying services
Facility Management
1. Provision of supply, rental, installation and maintenance of air--conditioners for onshore and offshore areas
2. Provision of catering, cleaning, laundry and recreational services at offshore facilities
3. Provision of housekeeping and catering services for onshore oil and gas facilities including lodging
4. Provision of building and maintenance services for staff housing
5. Provision of electrical maintenance services for staff housing
6. Provision of landscape maintenance services
7. Provision of packing and transportation services for staff
8. Provision of office support services
9. Provision of security services
10. Provision of warehousing services for storage
11. Provision of maintenance services for industrial buildings
12. Provision of civil infrastructure services including maintenance, construction, renovation and demolition
13. Provision of courier services to worldwide locations and within Brunei
Inspection Services
1. Provision of specialist inspection and non--destructing testing services
Instrumentation – Aftermarket
1. Provision of after-sales maintenance services for instrumentation equipment and spare parts
Land
1. Provision of spot or term hire of light vehicles
2. Provision of spot or term hire of medium/heavy vehicles. This does not include specialised or special-purpose vehicles
3. Provision of material handling and manpower services
4. Provision of material clearing and forwarding services for air and sea freight
5. Provision of road fuel tankers and maintenance services for transport of petroleum products domestically
Marine Vessels
1. Provision of chartered anchor handling tugs
2. Provision of chartered barges for accommodation and working deck space
3. Provision of chartered Liquefied Natural Gas (LNG) tugs to support berthing of LNG vessels
4. Provision of chartered contingencies utility craft to support safety coverage
5. Provision of chartered fast crew boats for passenger transfer and light cargo
6. Provision of chartered vessels for general purpose launches, area launches, standby launches
7. Provision of chartered supply vessels
Offshore Maintenance Services
1. Provision of offshore construction and maintenance services including work pack preparation, project preparation, installation, repair and maintenance work
2. Provision of blasting and painting services for offshore facilities
3. Provision of scaffolding equipment and maintenance activities for offshore platforms
Onshore Fabrication
1. Provision of onshore fabrication services to support onshore brownfield projects and minor maintenance activities
2. Provision of onshore fabrication services to support offshore structures
3. Provision of onshore construction services
Onshore Maintenance Services
1. Provision of fabrication, installation and maintenance of onshore production support facilities including landfield maintenance and construction, tank maintenance and construction, project support for brownfield/greenfield projects and other associated services
2. Provision of scaffolding for onshore work
3. Provision of well tie--in services for onshore wells
4. Provision of workshop services including maintenance, repair, testing of equipment
Rotating equipment – aftermarket
1. Provision of after-sales maintenance services for rotating equipment and spare parts
Static equipment – aftermarket
1. Provision of after-sales maintenance services for static equipment and spare parts
Training
1. Provision of basic management, supervisory and development training. Training activities are either non--technical (such as soft skills) or minimal technical training. This does not include higher or tertiary education services, such as specialised technical training and engineering expertise.
Well Construction Services
1. Provision of chemicals and brine mixing services to support drilling activities
2. Provision of low--end drilling tools and equipment
3. Provision of post--drilling platform and tank cleaning services
Well Intervention
1. Provision of coil tubing services and equipment for onshore activities
2. Provision of hoist services for in support of onshore wells workover operations and related activities
3. Provision of equipment and personnel for well abandonment services
4. Provision of well integrity and maintenance services
Product Categories
1. Supply of materials and equipment for civil works including building material and hardware, small tools, textiles and clothing
2. Supply of flat--rack containers for storage and transportation
3. Supply of material handling accessories including wire ropes, cordage chains and tackles
4. Supply of non--office materials and equipment including furniture and household requisites
5. Supply of office materials and equipment including office machines, stationery and consumables
6. Supply of vehicles and vehicles accessories including bicycles. This does not include specialised or special--purpose vehicles.
7. Supply of abrasives, polishes and compounds
8. Supply of lubricants including oil products, greases and fuel additives
9. Supply of workshop tools and accessories including machine and pneumatic tools and accessories, welding and spraying equipment
SCHEDULE OF CANADA INTRODUCTORY
1. Description provides a general non-binding description of the measure for which the entry is made.
2. Obligations Concerned specifies the obligations referred to in Article 9.12.1 (Non-Conforming Measures) and Article 10.7.1 (Non-Conforming Measures) that do not apply to the listed measures.
3. In the interpretation of an entry, all elements of an entry shall be considered. An entry shall be interpreted in the light of the relevant provisions of the Chapters against which the entry is taken. To the extent that:
(a) the Measures element is qualified by a liberalisation commitment from the Description element, the Measures element as so qualified shall prevail over all other elements; and
(b) the Measures element is not so qualified, the Measures element prevails over other elements, unless a discrepancy between the Measures element and the other elements considered in their totality is so substantial and material that it would be unreasonable to conclude that the Measures element prevails, in which case the other elements prevail to the extent of that discrepancy.
Sector: All
Sub-Sector:
Obligations Concerned: National Treatment (Article 9.4) Most-Favoured-Nation Treatment (Article 9.5) Performance Requirements (Article 9.10) Senior Management and Boards of Directors (Article 9.11)
Level of Government: Central
Measures: Investment Canada Act, R.S.C. 1985, c. 28 (1st Supp.) Investment Canada Regulations, SOR/85-611, as qualified by paragraphs 8 through 12 of the Description element
Description: Investment
1. Except as set out in paragraphs 3 and 7, the Director of Investments will review a direct “acquisition of control”, as defined in the Investment Canada Act, of a Canadian business by an investor of an original signatory for which the Agreement has entered into force pursuant to Article 30.5 (Entry into Force) if the value of the Canadian business is not less than C$1.5 billion, adjusted in accordance with the applicable methodology in January of each subsequent year as set out in the Investment Canada Act.
2. Notwithstanding the definition of “investor of a Party” in Article 9.1 (Definitions), only investors who are nationals of an original signatory for which the Agreement has entered into force pursuant to Article 30.5 (Entry into Force), or entities controlled by nationals of those Parties, as provided for in the Investment Canada Act, may benefit from the higher review threshold.
3. The higher threshold in paragraph 1 does not apply to a direct “acquisition of control” of a Canadian business by a state owned enterprise of a Party. Such acquisitions are subject to review by the Director of Investments if the value of the Canadian business is not less than C$369 million, adjusted in accordance with the applicable methodology in January of each subsequent year as set out in the Investment Canada Act.
4. An investment subject to review under the Investment Canada Act may not be implemented unless the Minister responsible for the Investment Canada Act advises the applicant that the investment is likely to be of net benefit to Canada. This determination is made in accordance with six factors described in the Act, summarised as follows: (a) the effect of the investment on the level and nature of economic activity in Canada, including the effect on employment, on the use of parts, components and services produced in Canada, and on exports from Canada; (b) the degree and significance of participation by Canadians in the investment; (c) the effect of the investment on productivity, industrial efficiency, technological development and product innovation in Canada; (d) the effect of the investment on competition within an industry or industries in Canada; (e) the compatibility of the investment with national industrial, economic and cultural policies, taking into consideration industrial, economic and cultural policy objectives enunciated by the government or legislature of any province likely to be significantly affected by the investment; and (f) the contribution of the investment to Canada’s ability to compete in world markets.
5. In making a net benefit determination, the Minister, through the Director of Investments, may review plans under which the applicant demonstrates the net benefit to Canada of the proposed acquisition. An applicant may also submit undertakings to the Minister in connection with a proposed acquisition that is the subject of review. In the event of non-compliance with an undertaking by an applicant, the Minister may seek a court order directing compliance or any other remedy authorised under the Investment Canada Act.
6. A non-Canadian who establishes or acquires a Canadian business, other than those that are subject to review as described above, must notify the Director of Investments.
7. The review thresholds set out in paragraphs 1 and 3 do not apply to an acquisition of a cultural business.
8. In addition, the specific acquisition or establishment of a new business in designated types of business activities relating to Canada’s cultural heritage or national identity, which are normally notifiable, may be subject to review if the Governor-in-Council authorises a review in the public interest.
9. An indirect “acquisition of control” of a Canadian business by an investor of a Party in a sector other than a cultural business is not reviewable. 10. Notwithstanding Article 9.
10 (Performance Requirements), Canada may impose requirements, or enforce a commitment or undertaking in connection with the establishment, acquisition, expansion, conduct or operation of an investment of an investor of a Party or of a non-Party for the transfer of technology, production process or other proprietary knowledge to a national or enterprise, affiliated to the transferor, in Canada in connection with the review of an acquisition of an investment under the Investment Canada Act.
11. Except for requirements, commitments or undertakings relating to technology transfer as set out in paragraph 10 of this entry, Article 9.10 (Performance Requirements) applies to requirements, commitments or undertakings imposed or enforced under the Investment Canada Act.
12. For the purposes of this entry: a “non-Canadian” means an individual, government or agency thereof or an entity that is not Canadian; and “Canadian” means a Canadian citizen or permanent resident, a government in Canada or agency thereof, or a Canadian-controlled entity as described in the Investment Canada Act.
Sector: All
Obligations Concerned: National Treatment (Article 9.4)
Level of Government: Central
Measures: Canada Business Corporations Act, R.S.C. 1985, c. C-44 Canada Business Corporations Act Regulations, SOR/2001-512 Canada Cooperatives Act, S.C.1998, c1 Canada Cooperatives Regulations, SOR/99-256
Description: Investment
1. A corporation or distributing cooperative may place constraints on the issue, transfer and ownership of shares in a federally incorporated corporation or cooperative. The object of those constraints is to permit a corporation or cooperative to meet Canadian ownership or control requirements, under certain laws set out in the Canada Business Corporations Act Regulations and Canada Cooperatives Regulations, in sectors where ownership or control is required as a condition to operate or to receive licences, permits, grants, payments or other benefits. In order to maintain certain Canadian ownership levels, a corporation is permitted to sell shareholders’ shares without the consent of those shareholders, and to purchase its own shares on the open market.
2. The Canada Cooperatives Act provides that constraints may be placed on the issue or transfer of investment of shares of a cooperative to persons not resident in Canada to permit cooperatives to meet Canadian ownership requirements to obtain a licence to carry on a business, to become a publisher of a Canadian newspaper or periodicals or to acquire shares of a financial intermediary and in sectors where ownership or control is a required condition to receive licences, permits, grants, payments and other benefits. Where the ownership or control of investment of shares would adversely affect the ability of a cooperative to maintain a level of Canadian ownership or control, the Canada Cooperatives Act provides for the limitation of the number of investment shares that may be owned or for the prohibition of the ownership of investment shares.
3. For the purposes of this entry, “Canadian” means “Canadian” as defined in the Canada Business Corporations Act Regulations, or in the Canada Cooperatives Regulations.
Sector: All
Sub-Sector:
Obligations Concerned: National Treatment (Article 9.4)
Level of Government: Central
Measures: Citizenship Act, R.S.C. 1985, c. C-29 Foreign Ownership of Land Regulations, SOR/79-416
Description: Investment
1. The Foreign Ownership of Land Regulations are made pursuant to the Citizenship Act and the Alberta Agricultural and Recreational Land Ownership Act, RSA 1980, c. A-9. In Alberta, an ineligible person or foreign-owned or -controlled corporation may only hold an interest in controlled land consisting of a maximum of two parcels containing, in the aggregate, a maximum of 20 acres.
2. For the purposes of this entry, “ineligible person” means: (a) a natural person who is not a Canadian citizen or permanent resident; (b) a foreign government or agency thereof; or (c) a corporation incorporated in a country other than Canada; and “controlled land” means land in Alberta but does not include: (a) land of the Crown in right of Alberta; (b) land within a city, town, new town, village or summer village; and (c) mines or minerals.
Sector: All
Sub-Sector:
Obligations Concerned: National Treatment (Article 9.4)
Level of Government: Central
Measures: Air Canada Public Participation Act, R.S.C. 1985, c. 35 (4th Supp.) Canadian Arsenals Limited Divestiture Authorization Act, S.C. 1986, c. 20 Eldorado Nuclear Limited Reorganization and Divestiture Act, S.C. 1988, c. 41 Nordion and Theratronics Divestiture Authorization Act, S.C. 1990, c. 4
Description: Investment
1. A “non-resident” or “non-residents” may not own more than a specified percentage of the voting shares of the corporation to which each Act applies. For some companies the restrictions apply to individual shareholders, while for others the restrictions may apply in the aggregate. The restrictions are as follows: (a) Air Canada: 25 per cent in the aggregate; (b) Cameco Limited (formerly Eldorado Nuclear Limited): 15 per cent per non-resident natural person, 25 per cent in the aggregate; (c) Nordion International Inc.: 25 per cent in the aggregate; (d) Theratronics International Limited: 49 per cent in the aggregate; and (e) Canadian Arsenals Limited: 25 per cent in the aggregate.
2. For the purposes of this entry, “non-resident” includes: (a) a natural person who is not a Canadian citizen and not ordinarily resident in Canada; (b) a corporation incorporated, formed or otherwise organised outside Canada; (c) the government of a foreign State or a political subdivision thereof, or a person empowered to perform a function or duty on behalf of such a government; (d) a corporation that is controlled directly or indirectly by an entity referred to in subparagraphs (a) through (c); (e) a trust: (i) established by an entity referred to in subparagraphs (b) through (d), other than a trust for the administration of a pension fund for the benefit of natural persons the majority of whom are resident in Canada; or (ii) in which an entity referred to in subparagraphs (a) through (d) has more than 50 per cent of the beneficial interest; and (f) a corporation that is controlled directly or indirectly by a trust referred to in subparagraph (e).
Sector: All
Sub-Sector:
Obligations Concerned: Local Presence (Article 10.6)
Level of Government: Central
Measures: Export and Import Permits Act, R.S.C. 1985, c. E-19
Description: Cross-Border Trade in Services
Only individuals ordinarily resident in Canada, enterprises having their head offices in Canada or branch offices in Canada of foreign enterprises may apply for and be issued import or export permits or transit authorisation certificates for goods and related services subject to controls under the Export and Import Permits Act.
Sector: Business Service Industries
Sub-Sector:
Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Local Presence (Article 10.6) Senior Management and Boards of Directors (Article 9.11)
Level of Government: Central
Measures: Customs Act, R.S.C. 1985, c. 1 (2nd Supp.) Customs Brokers Licensing Regulations, SOR/86-1067