(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 ).  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—  (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  ( a ) S.I. 1999/2864; Schedule 2 was amended by S.I. 2012/977, S.I. 2014/613 and S.I. 2020/663.  2 (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).  Designation of the Cayman Islands 