(2) A reference to a licensing category or a licensing sub-category is a reference to the category or sub-category (as the case may be) identified by the same letter or combination of letters or the same letter and number in Schedule 2 to the Motor Vehicles (Driving Licences) Regulations 1999( a ). 

## Designation of the Cayman Islands 

3. —(1) Subject to paragraph (3), the Cayman Islands is designated under section 108(2)(b) of the Act as respects licences of the description specified in paragraph (2). 

(2) The licences specified for the purposes of 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 P, or licensing sub-category A1 or B1, and 

(b) have been granted by the licensing authority in the Cayman Islands— 

(i) to a person who has passed a driving test in the Cayman Islands in respect of each class of vehicle authorised by that person’s licence corresponding to a class included in one or more licensing categories or sub-categories referred to in paragraph (2)(a), or 

(ii) in exchange for a licence granted in— 

(aa) the United Kingdom to a person who has passed a driving test in the United Kingdom in respect of each licensing category or sub-category referred to in paragraph (2)(a) authorised by that licence, or 

(bb) an EEA State, the Republic of North Macedonia, Taiwan, Ukraine, or the United Arab Emirates, or a country or territory named in the Schedule, to a person who has passed a driving test in such a State, country or territory, as the case may be, in respect of each class of vehicle authorised by that licence corresponding to a class included in one or more licensing categories or sub- categories referred to in paragraph (2)(a). 

(3) A licence of a description specified in paragraph (2) shall be exchangeable only in so far as it authorises the driving of vehicles with automatic transmission if it was granted to a person who passed a driving test, whether in the Cayman Islands, or in a State, country or territory named in paragraph 2(b)(ii), in a vehicle with automatic transmission, notwithstanding that the licence authorises the driving in the Cayman Islands of vehicles with manual transmission. 

4. —(1) Subject to paragraph (3), the Republic of North Macedonia is designated under section 108(2)(b) of the Act as respects licences of the description specified in paragraph (2). 

(2) The licences specified for the purposes of paragraph (1) are licences which— 

(a) authorise the driving of a class of vehicles corresponding to a class of vehicles included in licensing category B, B+E, F, K or P, or licensing sub-category B1, and 

(b) have been granted by the licensing authority in the Republic of North Macedonia— 

(i) to a person who has passed a driving test in the Republic of North Macedonia in respect of each class of vehicle authorised by that person’s licence corresponding to a class included in one or more licensing categories or sub-categories referred to in paragraph (2)(a), or 

(ii) in exchange for a licence granted in— 

(aa) the United Kingdom to a person who has passed a driving test in the United Kingdom in respect of each licensing category or sub-category referred to in paragraph (2)(a) authorised by that licence, or 

