
1 
This Order may be cited as the Driving Licences (Exchangeable Licences) Order 2007 and shall come into force on 31st January 2007.
2 
In this Order—
(a) “driving test” means a test corresponding to the practical test of driving skills and behaviour prescribed under section 89 of the Road Traffic Act 1988 as part of the test of competence to drive;
(b) “vehicle with automatic transmission” means a vehicle in which either—
(i) the driver is not provided with any means whereby he may vary the gear ratio between the engine and the road wheels independently of the accelerator and the brakes, or
(ii) he is provided with such means but they do not include a clutch pedal or lever which he may operate manually,(and accordingly, a vehicle with manual transmission is any other class of vehicle); ...
(c) a reference to a licensing category is a reference to the category identified by the same letter or combination of letters in Schedule 2 to the Motor Vehicles (Driving Licences) Regulations 1999 ;and
(d) the reference in paragraph (c) to the Motor Vehicles (Driving Licences) Regulations 1999 is, after 18th January 2013, a reference to those Regulations as amended by the Motor Vehicles (Driving Licences) (Amendment) Regulations 2012.
3 

(1) Subject to paragraph (3), the Faroe Islands is designated under section 108(2)(b) of the Road Traffic Act 1988 as respects licences of the description specified in paragraph (2).
(2) The licences referred to in paragraph (1) are licences which—
(a) authorise the driving of a class of vehicles corresponding to a class of vehicles included in licensing category  AM, B, B+E, F, K, or Q, and
(b) have been granted by the licensing authority of the Faroe Islands—
(i) to a person who has passed a driving test in the Faroe Islands, or
(ii) by way of exchange for a licence granted in the United Kingdom or an EEA State ... or in a country or territory named in the Schedule to a person who had passed a driving test in such a State, country or territory.
(3) Notwithstanding that a licence of a description specified in paragraph (2) authorises the driving of vehicles with manual transmission, that licence shall be exchangeable only to the extent that it authorises the driving of vehicles with automatic transmission if it was granted to a person who passed a driving test in a vehicle with automatic transmission.
Signed by authority of the Secretary of State for Transport
S.J Ladyman
Minister of State
Department for Transport

SCHEDULE
Article 3
Andorra
Australia
Barbados
British Virgin Islands
The provinces and territories of Canada
The Falkland Islands
Guernsey
Hong Kong
Isle of Man
Japan
Jersey
Monaco
New Zealand
Republic of Korea
Singapore
South Africa
Switzerland
Zimbabwe